The American banking giant earned $36.55bn in revenues and its net earnings stood at $8.47bn, for the last year


Image: Goldman Sachs releases year-end results for 2019. (Credit: Pixabay/Florian Pircher)

American investment bank and financial services giant Goldman Sachs has reported a decline in its profit by 19% in 2019, compared to that posted in the previous year.

Goldman Sachs announced that its net revenue for the year stood at $36.55bn and its net earnings for the same period was $8.47bn.  The company announced earnings per share (EPS) of $21.03 for the year.

Compared to 2018, the net revenue for the period had slightly decreased from $36.61bn. Its net earnings had also decreased from $10.46bn in 2018 to $8.47bn for last year.

The total operating expenses for the year was $24.89bn, which had increased from $23.47bn in 2018.

The basic and diluted earnings per share had also decreased from $25.53 and $25.27 for 2018 to $21.18 and $21.03, respectively.

Segment-wise earnings of Goldman Sachs in 2019

Under the newly formed head of investment banking, the bank earned $7.6bn in net revenues for last year, which was 7% lower compared to 2018. Under investment banking, three heads including financial advisory, underwriting and corporate lending had earned $3.2bn, $3.6bn and $801m, respectively as net revenues, for the period.

Under the global markets head, the bank earned a net revenue of $14.78bn for last year, which is  2% higher than that recorded in 2018.

Net revenues under the subhead fixed income, currency and commodities (FICC) for the period stood at $7.39bn, 6% higher than 2018. The subhead equities had also earned $7.39bn and it was almost same as that for 2018.

Under the head asset management, the bank earned $8.97bn for last year, which was 1% higher compared to that of 2018. The head included subheads such as management and other fees, incentive fees, equity investments and lending that earned $2.6bn, $130m, $4.77bn and $1.47bn, respectively for last year.

The consumer & wealth management head earned net revenue for the year was $5.2bn, which had also recorded a slight growth of 1% compared to 2018 figure.

The subhead   wealth management and consumer banking earned $4.34bn and $864m for last year’s end. Compared to 2018, revenue from wealth management decreased by 5% , while that of consumer banking had increased significantly by 41%.

Recently, the bank had reorganised its business segments under four new heads that include global markets, investment banking, asset management and consumer and wealth management.