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Goldman sees revenue fall but AM holds firm

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  • Goldman sees revenue fall but AM holds firm

GLOBAL - Goldman Sachs has recorded its first ever quarterly loss, since the company floated in 1999 of over $2bn (€bn) but a breakdown of the fourth quarter figures reveals its asset management division is still generating record fees and revenue.

Details of Goldman's fourth-quarter report released today showed the firm produced net revenue of $22.22bn in the year to the end of November 2008, but net revenue was down $1.58bn in Q4 alongside a net loss of $2.12bn.

Much of this loss appears to be attributed, however, to trading through its Trading and Principal Investments of fixed income, currency and commodities (FICC) and its investment banking divisions - between them clocking up net revenues of $15.25bn for the full year and $5/49bn in Q4.

In contrast, its asset management operation appears to have a fraction fared better as net revenues rose 1% to $4.55bn, though the full-year assets under managements did fall by $89bn to $799bn as there was a $123bn market depreciation, and net outflows from equity assets.

These were partially offset by $34bn in net inflows, according to Goldman, through money market, fixed income and alternative investments.

Securities Services also saw net revenues rise 26% against 2007 to $3.42bn, "reflecting the changes in the composition of securities lending customer balances as well as higher total customer average balances", said the firm.

Goldman now has $232.59bn in total capital following its earlier equity raising of $5.75bn through a public offering, a further $5bn from Berkshire Hathaway Inc and $10bn from the US Treasury's TARP scheme.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

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