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Goldman Sachs tumbles over 6% on weak quarterly results

Autor: Financial Market
Timp de citit: 2 minute

Goldman Sachs stock fell more than 6% after the banking giant posted disappointing fourth quarter 2022 results. Similar to its competitors, sharp declines were recorded by investment banking and asset management divisions.

Full year 2022 net revenues were $47.37 billion, 20% lower than a strong 2021, primarily reflecting significantly lower net revenues in Asset & Wealth Management and lower net revenues in Global Banking & Markets.

In the fourth quarter of 2022, Net revenues were $10.59 billion, 16% lower than the fourth quarter of 2021 and 12% lower than the third quarter of 2022.

The decrease compared with the fourth quarter of 2021 primarily reflected significantly lower net revenues in Asset & Wealth Management and lower net revenues in Global Banking & Markets.

Fourth Quarter highlights
Net revenues in Global Banking & Markets were $6.52 billion for the fourth quarter of 2022, 14% lower than both the fourth quarter of 2021 and the third quarter of 2022.

Investment banking fees were $1.87 billion, 48% lower than a strong fourth quarter of 2021, due to significantly lower net revenues in both Equity and Debt underwriting, reflecting a significant decline in industry-wide volumes, and lower net revenues in Advisory, reflecting a significant decline in industry-wide completed mergers and acquisitions transactions from elevated activity levels in the prior year period.

The firm’s Investment banking fees backlog4 decreased compared with the end of the third quarter of 2022.

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Net revenues in Fixed Income, Currency and Commodities (FICC) were $2.69 billion, 44% higher than the fourth quarter of 2021, primarily reflecting significantly higher net revenues in FICC intermediation, driven by significantly higher net revenues in interest rate products and commodities and higher net revenues in credit products, partially offset by significantly lower net revenues in currencies and mortgages. In addition, net revenues in FICC financing were significantly higher, primarily driven by secured lending.

Net revenues in Equities were $2.07 billion, 5% lower than the fourth quarter of 2021, due to lower net revenues in Equities intermediation, reflecting lower net revenues in both derivatives and cash products. Net revenues in Equities financing were higher,
primarily reflecting increased client activity.

Net revenues in Other services were $(114) million, compared with $(59) million for the fourth quarter of 2021.

On January 13, 2023, the company declared a dividend of $2.50 per common share to be paid on March 30, 2023 to common shareholders of record on March 2, 2023.

During the year, the Goldman Sachs returned $6.70 billion of capital to common shareholders, including $3.50 billion of common share repurchases and $3.20 billion of common stock dividends.

This included $2.38 billion of capital returned to common shareholders during the fourth quarter, including $1.50 billion of share repurchases and $880 million of common stock dividends.