01—Abstract
Summary
Summary of the 10-K filed February 28, 2014. Cited figures are marked; the original filing is the authoritative source.
Goldman Sachs Group, Inc. reported a strong financial performance for the year ended December 30, 2013.
Net earnings reached $8.04 billiona, a notable increase from $7.48 billion in 2012, and diluted earnings per common share rose to $15.46. The firm's return on average common shareholders' equity (ROE) was 11.0%, demonstrating improved profitability. The company continued to manage its capital effectively, repurchasing $6.17 billion worth of common stock while maintaining robust capital ratios, with a Tier 1 capital ratio of 16.7% and a Tier 1 common ratio of 14.6%.
02—Key points
Key Highlights
- Net earnings increased to $8.04 billion in 2013, up from $7.48 billion in 2012.
- Diluted earnings per common share improved to $15.46 from $14.13 in the prior year.
- Return on average common shareholders' equity (ROE) was 11.0% in 2013, up from 10.7% in 2012.
- Book value per common share increased approximately 5% to $152.48, and tangible book value per common share increased approximately 7% to $143.11 compared to the end of 2012.
- The firm repurchased $6.17 billion of its common stock during 2013.
- Tier 1 capital ratio remained strong at 16.7%, and the Tier 1 common ratio was 14.6%.
- Net revenues in Investment Banking significantly increased by 22% to $6.00 billion, driven by strong underwriting activity in both equity and debt offerings.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 28, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Interest Expense | $6.67B$7.50B | −11.1% |
| Net Income | $8.04B$7.47B | +7.6% |
| EPS (Basic) | $16.34$14.63 | +11.7% |
| EPS (Diluted) | $15.46$14.13 | +9.4% |
| Shares Outstanding (Basic) | 471.30M496.20M | −5.0% |
| Shares Outstanding (Diluted) | 499.60M516.10M | −3.2% |
05—Questions
Frequently Asked Questions
How did Goldman Sachs perform financially in 2013 compared to 2012?
Goldman Sachs showed improved financial performance in 2013 compared to 2012. Net earnings increased to $8.04 billion from $7.48 billion, and diluted earnings per common share rose to $15.46 from $14.13. The return on equity (ROE) also saw a slight improvement.
What was the company's capital position and how did it manage its capital?
Goldman Sachs maintained strong capital levels in 2013, with a Tier 1 capital ratio of 16.7% and a Tier 1 common ratio of 14.6%. The firm actively managed its capital by repurchasing $6.17 billion of its common stock during the year, while also increasing its book value and tangible book value per share.
Which business segments contributed most significantly to the firm's performance in 2013?
The Investment Banking segment was a significant contributor, with net revenues increasing by 22% to $6.00 billion, driven by strong performance in underwriting. The Investing & Lending segment also saw a substantial increase in net revenues, up 19% to $7.02 billion, primarily due to gains in equity investments. Investment Management also showed positive growth in net revenues.
Were there any significant off-balance-sheet arrangements or contingent liabilities mentioned?
The filing details various off-balance-sheet arrangements, including commitments to extend credit, derivative guarantees, and securities lending indemnifications. While these represent potential future obligations, the company regularly monitors and manages these exposures. Specific details on their nature and potential impact are provided in the 'Commitments, Contingencies and Guarantees' and 'Off-Balance-Sheet Arrangements' sections of the report.
06—Continue