Summary
Goldman Sachs Group Inc. (GS) reported strong financial results for the nine months ended September 25, 2009. Net revenues increased significantly to $35.56 billion, driven by a substantial surge in Trading and Principal Investments, which saw revenues more than double compared to the same period in the prior year. This growth was particularly strong in Fixed Income, Currencies, and Commodities (FICC), and Equities, benefiting from favorable market conditions, improved asset values, and tighter credit spreads. Despite this robust revenue growth, operating expenses also increased, largely due to higher compensation and benefits tied to performance, alongside some real estate impairment charges and a charitable contribution. The company's balance sheet remained solid, with total assets of $882.19 billion and total shareholders' equity of $65.35 billion. Goldman Sachs successfully navigated the challenging financial environment, demonstrating resilience and profitability, as evidenced by its strong capital ratios and the repurchase of preferred stock and warrants issued under the U.S. Treasury's TARP program. The firm's diversified business segments provided varied performance, with Investment Banking and Asset Management and Securities Services showing decreased revenues year-over-year, while Trading and Principal Investments significantly compensated for these declines.
Financial Highlights
25 data points| Net Income | $3.19B |
| EPS (Basic) | $5.74 |
| EPS (Diluted) | $5.25 |
| Shares Outstanding (Basic) | 525.90M |
| Shares Outstanding (Diluted) | 576.90M |
Key Highlights
- 1Net revenues for the nine months ended September 25, 2009, reached $35.56 billion, a significant increase from $23.80 billion in the prior year period.
- 2Trading and Principal Investments segment drove revenue growth, with FICC and Equities showing substantial increases due to favorable market conditions and client activity.
- 3Diluted earnings per common share were $13.74 for the nine months ended September 25, 2009, up from $9.62 in the prior year period.
- 4Operating expenses increased to $23.11 billion, primarily due to higher compensation and benefits reflecting increased net revenues, alongside real estate impairment charges and a charitable contribution.
- 5Goldman Sachs repurchased all of its Series H Preferred Stock and the associated warrant from the U.S. Treasury, enhancing its capital structure.
- 6Total shareholders' equity stood at $65.35 billion as of September 25, 2009, with strong capital ratios maintained throughout the period.
- 7Investment Banking and Asset Management and Securities Services segments experienced revenue declines, reflecting industry-wide trends in M&A and lower customer balances, respectively.