Tuesday, December 12, 2006

goldman sachs. hedge funds or investmentbank?

do the math! investmentbanking and asset management just over 10 b$ and trading and principal investment well over 24 b$!. (have not dig deeper into the numbers. but the trend is obvious.) looks like the guys from the genetiv research dep. can hire goldman..........

die frage ist wohl berechntigt. im ursprünglichen kerngeschäft der bank gerade mal über 10 mrd$ und im traing und beteiligungsgeschäft über 24mrd$.( habe noch nicht alle details der nummern). die typen sollten goldman wg. der anheuern......

to be fair. the numbers are fantastic. but are they sustainable.... i think no.

fairerweise muß man goldman zu diesen zahlen gratulieren. einfach wahnsinn. die frage ist nur ob dies zahlen nachhaltig sein können. da habe ich meine zweifel.

Investment Banking
Net revenues in Investment Banking were $5.63 billion for the year, 53% higher than 2005. ......... Net revenues were also significantly higher in debt underwriting, primarily due to a significant increase in leveraged finance activity and, to a lesser extent, an increase in investment-grade activity. Net revenues in the firm's Underwriting business were $717 million, 78% higher than the fourth quarter of 2005. Net revenues were significantly higher in debt underwriting, primarily due to an increase in leveraged finance

Trading and Principal Investments
Net revenues in Trading and Principal Investments were $25.56 billion for the year, 52% higher than 2005. Net revenues in FICC were $14.26 billion for the year, 60% higher than 2005, primarily due to significantly higher net revenues in credit products (which includes distressed investing) and commodities. ........ In addition, corporate credit spreads tightened, the yield curve flattened and volatility levels were generally low in interest rate and currency markets.
Net revenues in Equities were $8.48 billion for the year, 50% higher than 2005, primarily reflecting significantly higher net revenues in derivatives, across all regions, as well as higher net revenues in shares. ............
Principal Investments recorded net revenues of $2.82 billion, reflecting a $937 million gain related to the firm's investment in the ordinary shares of Industrial and Commercial Bank of China Limited (ICBC), a $527 million gain related to the firm's investment in the convertible preferred stock of Sumitomo Mitsui Financial Group, Inc. (SMFG) and $1.35 billion in gains and overrides from other principal investments.........

Asset Management and Securities Services
Net revenues in Asset Management and Securities Services were $6.47 billion for the year, 36% higher than 2005.
........Securities Services net revenues were $2.18 billion, 22% higher than 2005, as the firm's prime brokerage business continued to generate strong results, primarily reflecting significantly higher global customer balances in securities lending and margin lending

value at risk!

$ in millions

Three Months Ended Twelve Months Ended
-------------------------- -------------------
Nov. 24, Aug. 25, Nov. 25, Nov. 24, Nov. 25,
2006 2006 2005 2006 2005
-------- -------- -------- --------- ---------
Risk Categories
Interest rates $ 51 $ 55 $ 45 $ 49 $ 37
Equity prices 75 61 44 72 34
Currency rates 14 21 15 21 17
Commodity prices 29 31 25 30 26
effect (13) (63) (76) (49) (71) (44)
-------- -------- -------- --------- ---------
Total $ 106 $ 92 $ 80 $ 101 $ 70
======== ======== ======== =========

"Goldman Sachs Group Inc. is paying its employees an average of $622,000 this year", after posting the highest profits ever for a securities firm.
The firm set aside $16.5 billion for salaries, bonuses and benefits for its 26,467 employees in the fiscal year ending in November, 40 percent more than it paid out all of last year, according to Goldman's earnings report today. The firm allocated 43.7 percent of its revenue for pay, down from 46.6 percent.

here is the "Goldman Sachs F4Q06 (Qtr End 11/24/06) Earnings Call Transcript"> (thanks to seeking alpha!)

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Anonymous Aaron Krowne said...

This stinks to high heaven of a bubble.

8:08 PM  
Blogger jmf said...

they said on the call that lots of deals in the pipeline and that pe accounts for almost 20% of all takeovers.

one anaylst (or call him freak) on the call said that he expects pe to account for almost 50% of all takeovers in the future......

2:15 AM  

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