La quarterly season on Wall Street it begins with the accounts of two bigwigs: Goldman Sachs and Morgan Stanley, two of the major US investment banks. The numbers released today weigh down the US stock market with the Dow Jones which, half an hour after opening, yields half a percentage point.
The quarterly of Goldman Sachs is down
In 2022, Goldman Sachs did revenues of $48,37 billion and net income of $11,26 billion, down 48% from the previous year. Taking into consideration the only fourth quarter of 2022, revenue was $10,59 billion, down 16% from second quarter 2021, and net income was $1,33 billion, down 66% from the same period of the year previous.
Moving forward with the data, diluted earnings per common share (Eps) on an annual basis it was $30,06 (from $59,45 in 2021), while in the last quarter it dropped to $3,32 (from $10,81). The data is far from the estimates of analysts who assumed an average earnings per share of 5,48 dollars. The RoE was 10,2% for 2022 and annualized RoE was 4,4% for the fourth quarter.
“In a difficult economic environment, we delivered double-digit returns to our shareholders in 2022,” commented the CEO David Solomon. “The foundation of all our strategic efforts is our customer franchise that is second to none,” she concluded.
Morgan Stanley's quarterly disappoints
In the last quarter of 2022, Morgan Stanley recorded revenues of 12,7 billion, down 12% compared to 14,5 billion in the same period of 2021. The'Net income it came in at $2,2 billion, or $1,26 per share, compared with $3,7 billion (-40%), or $2,01 per share, for the same period a year ago. L'earning per share adjusted was $1,31, compared to $2,08 in the same quarter a year prior. The market, according to data Refinitive, it expected earnings per share of $1,19 on revenues of $12,64 billion.
Moving towhole 2022, revenue was $53,7 billion and net income was $11 billion ($6,15 per share, or $6,36 on an adjusted basis).
“We recorded solid results in the fourth quarter in a difficult market environment – commented the CEO James Gorman – Overall, 2022 was a good year for the company as our clear strategy and balanced business model enabled us to achieve a ROTCE of 16% despite the complex macro environment.” “Wealth Management provided stability with record revenues and over $310 billion of net new assets, Investment Management benefited from diversification and, within Institutional Securities, our equity and fixed income revenues were strong, offset by Investment Banking,” he explained.
Wealth Management reported record net revenues for the quarter of $6,6 billion (+6%), driven largely by an increasing interest margin on the back of higher interest rates and loan growth.
