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Goldman Sachs Reports First Quarter EARNINGS PER COMMON SHARE OF $2.68

The following excerpt is from the company's SEC filing.

NEW YORK, April 19, 2016 The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $6.34 billion and net earnings of $1.14 billion for the first quarter ended March 31, 2016. Diluted earnings per common share were $2.68 compared with $5.94 for the first quarter of 2015 and $1.27 for the fourth quarter of 2015. Annualized return on average common shareholders equity (ROE)

was 6.4% for the first quarter of 2016.

Highlights

Goldman Sachs ranked first in worldwide announced mergers and acquisitions for the year-to-date.

The firm also ranked first in worldwide common stock offerings for the year-to-date.

Assets under supervision

increased to a record $1.29 trillion, with net inflows of $26 billion during the quarter, including net inflows of $10 billion in long-term assets under supervision.

Non-compensation expenses were $2.10 billion for the first quarter of 2016, the lowest quarterly amount in nearly seven years.

The firm maintained strong capital ratios and liquidity. As of March 31, 2016, the firms Common Equity Tier 1 ratio

as calculated in accordance with the Standardized approach and the Basel III Advanced approach was 13.4%

and 12.2%

, respectively. In addition, the firms global core liquid assets

were $196 billion

as of March 31, 2016.

The operating environment this quarter presented a broad range of challenges, resulting in headwinds across virtually every one of our businesses, said Lloyd C. Blankfein, Chairman and Chief Executive Officer. Looking ahead, we will continue to focus on delivering superior service to our clients and managing our business efficiently, which remain essential to generating shareholder value over the long term.

Media Relations: Jake Siewert 212-902-5400

Investor Relations: Dane E. Holmes 212-902-0300

Net Revenues

Investment Banking

Net revenues in Investment Banking were $1.46 billion for the first quarter of 2016, 23% lower than the first quarter of 2015 and 5% lower than the fourth quarter of 2015. Net revenues in Financial Advisory were $771 million, 20% lower compared with a strong first quarter of 2015, reflecting a decrease in completed mergers and acquisitions transactions. Net revenues in Underwriting were $692 million, 27% lower than the first quarter of 2015, due to significantly lower net revenues in equity underwriting, reflecting low levels of industry-wide activity during the quarter. Net revenues in debt underwriting were significantly higher compared with the first quarter of 2015, primarily reflecting an increase in investment-grade activity. The firms investment banking transaction backlog decreased compared with the end of 2015, but was higher compared with the end of the first quarter of 2015.

Institutional Client Services

Net revenues in Institutional Client Services were $3.44 billion for the first quarter of 2016, 37% lower than the first quarter of 2015 and 20% higher than the fourth quarter of 2015.

Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.66 billion for the first quarter of 2016, 47% lower compared with a strong first quarter of 2015. During the first quarter of 2016, Fixed Income, Currency and Commodities Client Execution operated in a challenging environment characterized by economic uncertainty and difficult market-making conditions, which resulted in significantly lower net revenues across all major businesses compared with the first quarter of 2015.

Net revenues in Equities were $1.78 billion for the first quarter of 2016, 23% lower than the first quarter of 2015, due to significantly lower net revenues in equities client execution compared with a strong first quarter of 2015. The decrease in equities client execution reflected significantly lower net revenues in both cash products and derivatives. These results were partially offset by higher commissions and fees, reflecting higher volumes in the United States, and higher net revenues in securities services, reflecting improved spreads. During the quarter, the operating environment for Equities was impacted by economic uncertainty, which contributed to higher levels of volatility and generally lower global equity prices compared with the fourth quarter of 2015.

The fair value net loss attributable to the impact of changes in the firms credit spreads on borrowings was $44 million ($32 million and $12 million related to Fixed Income, Currency and Commodities Client Execution and equities client execution, respectively) for the first quarter of 2015.

Investing & Lending

Net revenues in Investing & Lending were $87 million for the first quarter of 2016, significantly lower than both the first quarter of 2015 and the fourth quarter of 2015. The decrease in net revenues compared with the first quarter of 2015 was primarily due to a significant decrease in net revenues from investments in both private and public equities, which were negatively impacted by generally lower global equity prices and corporate performance during the first quarter of 2016. Net revenues in debt securities and loans were also significantly lower compared with the first quarter of 2015, primarily reflecting lower net revenues related to loans and lending commitments to institutional clients (including higher provision for losses) and lower net gains from investments.

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Investment Management

Net revenues in Investment Management were $1.35 billion for the first quarter of 2016, 15% lower than the first quarter of 2015 and 13% lower than the fourth quarter of 2015. The decrease in net revenues compared with the first quarter of 2015 primarily reflected significantly lower incentive fees. In addition, management and other fees were slightly lower, reflecting shifts in the mix of client assets and strategies, partially offset by the impact of higher average assets under supervision. During the quarter, total assets under supervision

increased $35 billion to $1.29 trillion. Long-term assets under supervision increased $19 billion, due to net inflows of $10 billion, primarily in fixed income and equity assets, and net market appreciation of $9 billion, reflecting appreciation in fixed income assets. In addition, liquidity products increased $16 billion.

Expenses

Operating expenses were $4.76 billion for the first quarter of 2016, 29% lower than the first quarter of 2015 and 23%...


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