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Goldman Sachs Group Inc. (GS)

- NYSE
  • Tue, Mar. 17, 11:10 AM
    • A possible harbinger of things to come next month when the big banks report Q1 earnings, profits at Jefferies plunged in FQ1 (ended Feb. 28), with FICC, capital markets, and investment banking particularly weak.
    • Previously: Poor results at Jefferies sinks Leucadia (March 17)
    • Jefferies parent Leucadia is lower by 3.7%. Goldman Sachs (GS -1.1%), Morgan Stanley (MS -0.9%), JPMorgan (JPM -1.2%), Citigroup (C -0.1%), Bank of America (BAC -0.8%).
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    | 2 Comments
  • Thu, Mar. 12, 12:47 PM
    • Citigroup's (C +2.7%) $7.8B in buybacks was 10% higher than estimated by MKM analyst David Trone. Combined with the nickel dividend, that's total shareholder returns of $8.4B vs. his $7B expectation.
    • Bank of America (BAC -1%) - though given just conditional approval - is set for $4B in buybacks and a nickel dividend. That's a total return of $6.1B vs. Trone's $3.1B estimate. Trone notes the bank can proceed with its buyback prior to resubmitting plans.
    • JPMorgan's (JPM +1%) $6.4B buyback was shy of Trone's $7B estimate, but the 10% dividend increase was better than forecast. The total capital return of $12.9B vs. his $13.2B forecast is a "marginal negative."
    • The dividend hike to $0.65 at Goldman (GS +2.1%) beat Trone's expectation of $0.62. As for the buyback, Goldman's policy of not disclosing the amount remains in place.
    • Morgan Stanley's (MS +4.5%) capital return of $4.3B is more than double Trone's $1.9B estimate.
    • Source: Benzinga
    | 4 Comments
  • Wed, Mar. 11, 4:44 PM
    • Goldman's Sachs' (NYSE:GS) first score of 5.8% was only marginally ahead of the 5% threshold, but the resubmitted capital plan came in at 6.4%
    • Morgan Stanley (NYSE:MS) was 5.9% on both tests, so one wonders what changed. The company has announced a $3.1B buyback through the end of 2016 Q2 as well as a boost in the quarterly dividend to $0.15 per share from $0.10.
    • JPMorgan (NYSE:JPM) lifted its score from a barely scraping by 5% to 5.5%.
    • There's no word yet on the details of Goldman's or JPMorgan's plans.
    • GS +0.9%, MS +1.8%, JPM +0.1% after hours.
    • Previously: BofA must resubmit capital plan; Deutsche and Santander rejected (March 11)
    • CCAR results
    | 4 Comments
  • Fri, Jan. 16, 10:38 AM
    • "Volatility in the absence of liquidity" creates an "unfriendly" dynamic, says Goldman (GS -1.8%) CFO Harvey Schwartz, on the Q4 trading environment. His comments echo those coming from Bank of America and Citigroup following weak FICC action at those banks.
    • Goldman's FICC revenue in Q4 of $1.218B fell 29% from a year earlier.
    • The bank, says Schwartz, didn't suffer from the Swiss franc's move yesterday, but it was "pretty extraordinary," he allows.
    • Meanwhile, the WSJ's Michael Moore looks at compensation costs at the bank. As a percentage of revenue, they fell again in 2014 to just over 35%, about 1000 basis points lower than the pre-crisis average. "Is this the new normal?"
    • Previously: Weak underwriting, trading slow Goldman results (Jan. 16)
    • Previously: Goldman Sachs beats by $0.06, beats on revenue (Jan. 16)
    | 3 Comments
  • Dec. 9, 2014, 8:52 AM
    | 2 Comments
  • Oct. 16, 2014, 1:03 PM
    • Goldman Sachs (GS -0.8%) looks a lot different today than it did five years ago, writes Michael Moore, presenting a chart showing FICC revenue making up just 27% of the firm total vs. 53% in 2009. Also lower as a percent of firm-wide revenue is equities trading at 18% vs. 25%.
    • Investment banking has a larger role at 19% vs. 9%; Investment & Lending 20% vs. 4%; Asset Management & Private Lending 17% vs. 9%. Should the volatility of the last few weeks continue, one suspects FICC revenue will again rise in importance.
    • The sizable earnings beat is less impressive than the headline would suggest, says Moore, noting trading revenue - after excluding accounting gains and a benefit tied to a debt payoff - fell 11% from Q2, a worse result than that of competitors like JPMorgan, Citi, and BofA. Also helping was a cut in compensation cost to just 33% of revenue compared with 35% a year earlier - some analysts had expected the ratio to stay at the 43% level it had been at during Q1 and Q2.
    • Previously: M&A and IPO action combine with Sept. volatility to boost Goldman results
    | Comment!
  • Oct. 16, 2014, 7:56 AM
    • Q3 EPS of $4.57 compares with $4.10 in Q2 and $2.88 one year ago.
    • Investment banking net revenue of $1.46B up 26% Y/Y, with Financial Advisory revenue of $594M up 40% thanks to busy M&A activity. Underwriting revenue of $870M up 17% thanks to fast IPO action, though debt underwriting revenue fell somewhat.
    • Institutional Client Services revenue of $3.77B up 32% Y/Y, with FICC revenue of $2.17B up 74% (though a nonrecurring gain helped out a bit). The FICC boon came from significantly higher revenue in currencies, along with interest rates, commodities, and mortgages, offset by significantly lower revenue in credit products. Conditions in the latter part of the quarter were notably better (and no doubt have continued into Q4).
    • Investing and Lending revenue of $1.69B up 15% Y/Y thanks to strong markets.
    • Investment Management revenue of $1.46B up 20% Y/Y primarily due to higher assets under supervision.
    • Expenses of $5.08B up 12% Y/Y, with compensation of $2.8B up 18%. The ratio of compensation and benefits to net revenue through the year's first nine months of 40% compares with 41% from the same period one year ago. Staff increased by 3% in Q3.
    • 7.1M shares repurchased during Q at an average cost of $176 each. 32M shares remain in buyback program.
    • Conference call at 9:30 ET
    • Previously: Goldman Sachs boosts dividend
    • Previously: Goldman Sachs beats by $1.36, beats on revenue
    • GS -2.3% premarket as broader markets tank again
    | 3 Comments
  • Sep. 25, 2014, 3:09 PM
    • Today's resignation of Attorney General Eric Holder could mark the beginning of the end of the Justice Department’s push to hold big banks accountable for their conduct leading up to the financial crisis.
    • Several big banks, including Goldman Sachs (GS -2.1%) and Wells Fargo (WFC -1.1%), are still under investigations by the Justice Department for their sale of flawed mortgage securities before 2008, but settlements in those cases are expected to be much smaller than the big sums extracted from Bank of America (BAC -1.8%), JPMorgan Chase (JPM -2%) and Citigroup (C -2.2%).
    • Another sign that the big bank cases may be winding down: Tony West, who was Holder’s point man in the bank settlement talks, recently left the Justice Department to join PepsiCo as its general counsel.
    | 66 Comments
  • Sep. 9, 2014, 12:24 PM
    • The Fed intends to impose a capital surcharge on banks tougher than the international standard, according to Fed Governor Daniel Tarullo's prepared remarks for the Senate Banking Committee. Those banks with heavier reliance on short-term funding like overnight loans - i.e. Goldman Sachs (GS -1%) and Morgan Stanley (MS -1.8%) - will likely face even more rigorous requirements.
    • Officials haven't yet decided on a number, but reportedly are considering as much as 200 basis points more than the top range of 2.5% of risk-weighted assets agreed to by international regulators.
    • What's not yet clear is who would need to raise capital to meet the new, tougher standard.
    • Citigroup (C -1%), Bank of America (BAC -0.6%), JPMorgan (JPM -1.3%), Wells Fargo (WFC -0.4%), State Street (STT -1.1%), Bank of New York Mellon (BK -0.9%)
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    | 25 Comments
  • Jul. 29, 2014, 10:42 AM
    | 3 Comments
  • Jul. 15, 2014, 11:32 AM
    • Goldman Sachs (GS +0.6%) continues to see a big boost in CEO confidence and thus M&A activity, says bank CFO Harvey Schwartz on the earnings call. "This traditionally coincides with increased client activity and economic sentiment."
    • Along with the opportunity from M&A, Goldman sees better business coming from clients' increasing worry over higher interest rates, along with customer focus on outsourcing portfolio management functions to save money and return to their core competencies.
    • Goldman is well off of its session highs following a major earnings beat. A closer look shows a major jump in Investing and Lending net revenue to $2.07B thanks to net gains of $1.25B primarily from private equity investments "driven by company-specific events."
    • “It’s like owning an orchard,” says Brad Hintz. “There are periods of time where you’re just sitting there looking at trees, and then you’re just up to your knees in apples. We happen to be at the point where the harvest is coming in.”
    | Comment!
  • Jul. 1, 2014, 3:29 PM
    • Significant fixed-income cuts could be coming at Goldman Sachs (GS -0.3%) reports Charlie Gasparino, amid the continuing slowdown in business, with details maybe coming when the bank reports Q2 earnings on July 15.
    • Both CEO Lloyd Blankfein and President Gary Cohn come from fixed-income and they've been reluctant to give up on the business, but the full effect of Dodd-Frank regulations are beginning to kick in, and a big change in the bank's business model could be necessary.
    • During the internet boom, Goldman sniffed around E*Trade (ETFC +2.8%) and Schwb (SCHW +1.9%), and some bankers, according to Gasparino, say Goldman may need to take another look at purchasing an online brokerage name.
    | 10 Comments
  • May. 5, 2014, 10:20 AM
    • A check of the global banks finds the group pacing market declines in morning action after Friday night's warning on Q2 trading revenue from JPMorgan (JPM -2.2%).
    • Nomura's Steven Chubak is first out with lower JPMorgan earnings estimates.
    • Jim Cramer sums up sentiment: "This has been a house of pain. You can't own these right now. You just can't."
    • Morgan Stanley (MS -1.9%), Goldman Sachs (GS -1.5%), Citigroup (C -1.2%), and Bank of America (BAC -1%), Deutsche Bank (DB -1.2%). Far less trading dependent than the other Too Big Too Fails is Wells Fargo (WFC -0.2%).
    • The iShares DJ U.S. Broker-Dealer ETF (IAI -1.2%)
    • XLF -0.7%, KBE -0.8%
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    | 16 Comments
  • Apr. 17, 2014, 12:15 PM
    • On the surface, Morgan Stanley's (MS +3.5%) Q1 results appear far better than those of Goldman Sachs (GS +0.6%), with FICC revenues up 9% Y/Y vs. a decline at Goldman. But Oppenheimer's Chris Kotowski notes Morgan had an especially easy comparison since 2013 Q1 was particularly weak. "Nonetheless, it is always nice to see year-over-year growth, and Morgan Stanley's is the best we have seen so far."
    • Kotwoski also takes note of return on tangible common equity - 11.1% at Goldman vs. 10.9% at Morgan. Despite the lower ROE, Morgan trades for 10.3x 2015 estimates vs. 9.4x for Goldman. Investors may want to have to take a harder look at which one to buy.
    | 1 Comment
  • Apr. 17, 2014, 8:05 AM
    • EPS of $4.02 compares with $4.29 a year ago and $4.60 in Q4. Revenue of $9.33B falls from $10.09B. Annualized ROE of 10.9% in Q1.
    • Investment banking revenue of $1.78B up 13% Y/Y, with financial advisory revenue of $682M up 41%, equity underwriting revenue of $437M up12%, debt underwriting of $660M down 5%.
    • Institutional client services revenue of $4.446B down 13% Y/Y, with FICC revenue of $2.85B down 11%, not terribly out of line with dim expectations, but Morgan Stanley and BofA managed to report gains in this segment (Citi and JPMorgan had declines). Given the fixed to shrinking pie size, Goldman lost some share during the Q.
    • Investing & Lending revenue of $1.529B downb 26% Y/Y. Investment management revenue of $1.152B up 9%.
    • Operating expenses of $6.31B off 6% from a year ago, with compensation and benefits expense of $4.01B down 8%. Compensation and benefits as a percentage of revenue of 43% is flat. Total headcount down 1% during the quarter.
    • CC at 9:30 ET
    • Press release, Q1 results
    • GS +2% premarket
    | 3 Comments
  • Mar. 5, 2014, 3:42 PM
    • Buying the rumor? On a flattish day for the major averages, the Too Big To Fail banks are ignoring a continued slowdown in markets revenue this quarter, and instead partying ahead of what may be the imminent release of the Fed's stress test results (perhaps Friday). About one week later will be CCAR results at which the Fed gives the thumbs up or thumbs down on the banks' capital return plans.
    • Word is the tests are tougher this year, but bank capital levels are also improved.
    • Leading today is Bank of America (BAC +3%) - now within about one percent of a 4-year high. Others: Morgan Stanley (MS +2.8%), Goldman Sachs (GS +1.8%), Ciitgroup (C +1%), JPMorgan (JPM +1.5%), and Wells Fargo (WFC +0.6%).
    • Also subject to the stress tests are a number of regional lenders, not to mention credit card players - they're mixed in today's action.
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    | 8 Comments
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Company Description
Goldman Sachs Group Inc is a investment banking, securities and investment management firm. Its segments include Investment Banking, Trading and Principal Investments, Asset Management and Securities Services.