Banking, finance, and taxes

Goldman Sachs Looks Beyond Q4 Loss

Thinkstock

Goldman Sachs Group Inc. (NYSE: GS) reported its fourth-quarter financial results before the markets opened on Wednesday. The investment bank posted $5.68 in adjusted earnings per share (EPS) and $7.83 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $4.92 in EPS and revenue of $7.61 billion. In the same period of last year, it said it had EPS of $5.08 and $8.17 billion in revenue.

Keep in mind that the tax legislation gave a net loss of $1.93 billion to the bank, or about $5.51 per share.

For this quarter, the company reported its segments as follows:

  • Net revenues for Investment Banking totaled $2.14 billion, 44% higher than the fourth quarter of 2016.
  • Net revenues in Financial Advisory were $772 million, 9% higher, reflecting higher net revenues in the United States.
  • Net revenues in Underwriting were $1.37 billion, 76% higher.
  • Net revenues in Institutional Client Services were $2.37 billion for the fourth quarter of 2017, 34% lower.
  • Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.00 billion for the fourth quarter of 2017, of 50% lower.
  • Net revenues in Equities were $1.37 billion, 14% lower.

Goldman Sachs’ Standardized Common Equity Tier 1 ratio was 12.1% at the end of the quarter, compared with 14.5% in the same period last year.

During the quarter, book value per common share was $181.00, and tangible book value per common share was $170.61.

Lloyd C. Blankfein, board chair and chief executive, commented:

Last year, we delivered higher revenue and stronger pre-tax margins despite a challenging environment for our market-making businesses. With the global economy poised to accelerate, new U.S. tax legislation providing tailwinds and a leading franchise across our businesses, we are well positioned to serve our clients and make significant progress on the growth plan we outlined in September.

Shares of Goldman Sachs traded down about 2.5% early Wednesday at $252.08, with a consensus analyst price target of $266.48 and a 52-week range of $209.62 to $262.14.

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.