FINANCIALS: Goldman Sachs (GS A+/A1/A+) Q4 results
Jan-15 16:23
Goldman Sachs (GS A+/A1/A+) Q4 results
Strong IB revenue drive earnings beat.
- Non-interest income increase sharply to $11.5bn from 10.3bn in Q3 and 10bn in Q4 23.IB & Investment management fees both up 10% vs Q3. Principal transaction income doubles to $1.6bn. Market making had a slightly disappointing quarter, down 7% on Q3.
- Net interest income was $2.3bn, -10% lower than what was reported in Q3, but the Q3 numbers seems to be restated lower in Q4 - one to follow up on.
- Expenses were -3.4% vs Q3 and -9.1% vs Q4 23.
- CET1 improves to 15% - which will be a numerical ratings improvement at S&P, Moody's & Fitch
- Provisions were lower, at $351m than in Q3 or Q4 23. This created a 10bps Cost of risk for the quarter.
- RoTE improves to 13.4% on the earnings beat and opinc/RWA improves to 3.1%
Valuation: Compared to its rating and other US banks in EUR, GS trades reasonably expensive, often 10-20bps below where its rating would imply.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
OPTIONS: Expiries for Dec17 NY cut 1000ET (Source DTCC)
Dec-16 16:17
- EUR/USD: $1.0475(E618mln), $1.0525(E1.6bln), $1.0650(E1.8bln)
- USD/JPY: Y151.55-70($1.1bln), Y154.45($538mln)
- GBP/USD: $1.2640-55(Gbp763mln), $1.2840-50(Gbp1.0bln)
- USD/CAD: C$1.3930($1.5bln), C$1.4150($1.3bln)
FED: US TSY 26W AUCTION: NON-COMP BIDS $1.914 BLN FROM $72.000 BLN TOTAL
Dec-16 16:15
- US TSY 26W AUCTION: NON-COMP BIDS $1.914 BLN FROM $72.000 BLN TOTAL
FED: US TSY 13W AUCTION: NON-COMP BIDS $2.104 BLN FROM $81.000 BLN TOTAL
Dec-16 16:15
- US TSY 13W AUCTION: NON-COMP BIDS $2.104 BLN FROM $81.000 BLN TOTAL
