Goldman Sachs has seen its Global Markets division generate net revenues of US$22.08 billion, the highest annual net revenues in 12 years, which the firm noted is “reflecting strength in both equities and fixed income, currency and commodities (FICC).”
Nevertheless, net FICC revenues for the year, which made up 18% of the bank’s total net revenue, were US$10.58 billion, 9% lower than 2020. The bank attributed this to lower net revenues in FICC secondary markets, reflecting a major drop in net revenues in interest rate and credit products, and slightly lower net revenues in currencies, partially offset by significantly higher net revenues in mortgages and higher net revenues in commodities.
The firm’s net revenues in FICC financing were also far higher, stemming from mortgage lending, and partially offset by much lower net revenues from repurchase agreements.
Net revenues in equities were US$11.49 billion, 20% higher than 2020, due to significantly higher net revenues in equities financing, primarily reflecting increased activity including higher average client balances, and higher net revenues in equities secondary markets, across both derivatives and cash products.
Total net revenues for the firm in 2021 were US$59.34 billion, 33% higher than in 2020.
For the fourth quarter of 2021, net revenues in Global Markets were US$3.99 billion, 7% lower than the fourth quarter of 2020 and 29% lower than the third quarter of 2021. Net revenues in FICC were US$1.86 billion, essentially unchanged compared with the fourth quarter of 2020. Net revenues in FICC secondary markets were lower, reflecting much lower net revenues in interest rate products and credit products and lower net revenues in commodities and mortgages, partially offset by significantly higher net revenues in currencies.
The bank reported net Q4 revenues in FICC financing were up significantly, as a result of higher net revenues from mortgage lending. Net revenues in equities for Q4 were US$2.12 billion, 11% lower than the fourth quarter of 2020, due to much lower net revenues in equities secondary markets, across both derivatives and cash products. Net revenues in equities financing were significantly higher, primarily reflecting increased activity, including higher average client balances.
Across business units, the banks saw Q4 net revenues of US$12.64 billion, up 8% on Q4 2020 and 7% lower than the Q3 in 2021.
©Markets Media Europe, 2021
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