A Publicly Traded Bank's AM Rakes In $9B
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Friday, January 24, 2020

A Publicly Traded Bank's AM Rakes In $9B

Recently, Goldman Sachs [profile], a publicly traded investment bank based in New York, New York, had its balance sheet equity, credit, and real estate added to its asset management reporting.

Sheila H. Patel
Goldman Sachs Asset Management
On their Q4 earnings call (as transcribed by Seeking Alpha), Stephen Scherr, chief financial officer, told analysts:
Collectively our Asset Management activities produced net revenues of $3 billion in the fourth quarter, up 52 percent versus last year, driven by stronger equity investment performance. For the full-year, Asset Management generated net revenues of $9 billion in line with a strong 2018 as growth in equity investment revenues offset lower incentive fees. Fourth-quarter management and other fees related to client assets under supervision totaled $666 million, up 6 percent versus a year-ago offset by lower incentive fees. Across the Asset Management segment, we managed AUS totaling $1.3 trillion at year-end, and we'll cover firmwide AUS trends in a few moments."

According to their earnings presentation, Asset Management made up 25 percent of Goldman Sachs' full year net revenue. Net revenue for GSAM 4Q19 was at $3,003 million, up 85 percent from 3Q19, and up 52 percent from 4Q18. Assets under supervision for 4Q19 were at $1,298 billion, up 5 percent from 3Q19 at $1,232 billion, and up 19 percent from 4Q18 at $1,087 billion.

Overall, Goldman Sachs missed analysts' Q4 EPS expectations of $5.49 by $0.80. Their revenue of $9.96 billion beat expectations by $1.39 billion

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