Earnings down and below estimates for Goldman Sachs which ended the fourth quarter of 2021 with a net profit of $3,935 billion, $10,81 per share, down 13% from $4,506 billion, $12,08 per share, for the same period a year ago. Climbed more than expected i revenues, which in the final months of last year amounted to 12,639 billion (+8%), driven by the good performance of the Consumer & Wealth Management and Investment Banking areas, while the asset management and global markets divisions slowed down. Analysts were expecting profits of $11,77 per share on $12,04 billion in business.
Throughout 2021, revenues instead jumped by 33% to 59,339 billion dollars, while lnet income more than doubled, growing 129% to $21,635 billion, $59,45 per share, from $9,459 billion in 2020. “2021 was a record year for Goldman Sachs. The company's outstanding performance is a testament to its strength. Going forward, we remain committed to growing Goldman Sachs by diversifying our businesses and delivering strong shareholder returns,” said Chief Executive Officer David Solomon.
In 2021 the return of equity capital (Roe) was 23%, the highest since 2007, with an annualized figure of 15,6% in the fourth quarter. The book value per share for the year rose 20% to $284,39.
As for the annual data of individual divisions, investment banking generated revenues up 58% to $14,88 billion (+45% to $3,80 billion in the fourth quarter). The Global Markets area (-7% in the fourth quarter) in 2021 it produced revenues up 4% to 22,08 billion, the maximum in 12 years, while during the year the asset management area reported revenues of 14,92 billion. The Consumer & Wealth Management division had a turnover of 7,47 billion in 2021 (+25%) and 1,97 billion in the fourth quarter (+19%).
In the year the provisions against future credit-related losses shrank to $357 million, versus $3,10 billion in 2020. 2021 operating expenses rose 10% to $31,94 billion and efficiency ratio was 53,8% , against 65% in 2020.
The Board has given the green light to the payment, on March 30, of a dividend of $2 per share. During the year, the company returned capital to shareholders for 7,49 billion, of which 5,20 billion in the repurchase of treasury shares and 2,29 billion in dividends.
