The company attributed the growth in net income and revenues to its focus on serving clients and executing on strategic priorities
Goldman Sachs Headquarters, New York City. (Credit: Quantumquark/Wikipedia.)
Goldman Sachs has reported a net income of $4.51bn or $12.08 per common share for the fourth quarter 2020, posting a 135% increase from the net income earned in the same quarter in 2019.
The US-based financial services reported a net income of $9.46bn, or $24.74 for the year ending 31 December 2020.
The company generated net revenues of $44.56bn for the year ending 31 December 2020, a 22% increase compared to the year-end 2019. Its net revenue for the Q4 2020 was $11.74bn, an increase by 18% from the corresponding quarter in 2019.
Goldman Sachs attributed the growth in net earnings and revenues to its focus on serving clients and executing on strategic priorities, despite the impact of Covid-19 pandemic.
Goldman Sachs chairman and chief executive officer David M Solomon said: “It was a challenging year on many fronts, and I am deeply proud of how our people helped clients respond to the economic disruption brought on by the pandemic and the extreme market volatility experienced over the past months.
“Our people responded admirably to a series of professional and personal challenges, while working from home or in offices that were reshaped dramatically.
“Thanks to their perseverance, we were able to help clients navigate a difficult environment, and, as a result, achieved strong results across the franchise, while advancing our strategic priorities.
“We hope this year brings much needed stability and a respite from the pandemic, but we remain ready to handle a wide range of outcomes and are poised to meet the needs of our clients.”
Goldman Sachs Global Markets business generated 23% rise in net revenues for Q4 2020
Investment Banking business of the company generated net revenues of $2.61bn for the Q4 2020, which is a 27% rise from the Q4 2019. Net revenues for 2020 year-end were $9.42bn, a 24% increase compared to 2019 year-end.
Its global markets business generated net revenues of $4.27bn for Q4 2020, which is a 23% rise compared to the same quarter in 2019. The business generated net revenues of $21.16bn for the year-end 2020, which increased by 43% from the year-end 2019.
Goldman Sachs’ asset management business generated net revenues of $3.21bn for Q4 2020, a 7% rise compared to the corresponding quarter of 2019. The division generated net revenues of $7.98bn for the year-end 2020, a decrease by 11% compared to the year-end 2019.
The firm’s consumer and wealth management business generated a record net revenue of $6bn for the year 2020, increased by 15% compared to the year 2019.
The business reported revenues of $1.65bn for the Q4 2020, an increase by 17% compared to corresponding quarter of 2019.