Goldman Sachs diluted earnings per common share were $12.14 compared with $17.07 of 2014. Investment Banking produced its second highest annual performance.
The Goldman Sachs Group, Inc. (NYSE: GS) reported net revenues of $33.82 billion and net earnings of $6.08 billion for the year ended December 31, 2015. Diluted earnings per common share were $12.14 compared with $17.07 for the year ended December 31, 2014. Return on average common shareholders’ equity (ROE) was 7.4% for 2015.
During 2015, the firm recorded provisions for the settlement with the RMBS Working Group of $3.37 billion ($2.99 billion after-tax), which reduced diluted earnings per common share by $6.53 and ROE by 3.8 percentage points.
Fourth quarter net revenues were $7.27 billion and net earnings were $765 million. Diluted earnings per common share were $1.27 compared with $4.38 for the fourth quarter of 2014 and $2.90 for the third quarter of 2015. Annualized ROE was 3.0% for the fourth quarter of 2015. During the fourth quarter of 2015, the firm recorded provisions for the settlement with the RMBS Working Group of $1.80 billion ($1.54 billion after-tax), which reduced diluted earnings per common share by $3.41 and annualized ROE by 8.1 percentage points.
Goldman Sachs ranked first in worldwide announced and completed mergers and acquisitions for the year. During the year, the firm advised on completed transactions valued at more than $1 trillion. The firm also ranked first in worldwide equity and equity-related offerings and common stock offerings for the year.
Investment Banking produced net revenues of $7.03 billion, its second highest annual performance, as net revenues in Financial Advisory were the highest since 2007.
Investment Management generated record net revenues of $6.21 billion, as assets under supervision increased 6% from a year ago to a record $1.25 trillion, with strong net inflows in long-term assets under supervision of $71 billion during 2015.
Book value per common share increased by 5% during the year to $171.03.
The firm maintained strong capital ratios and liquidity. As of December 31, 2015, the firm’s Common Equity Tier 1 ratio as computed in accordance with the Standardized approach and the Basel III Advanced approach was 13.6% and 12.4%, respectively. In addition, the firm’s global core liquid assets were $199 billion as of December 31, 2015.
“We are pleased that our diversified business mix allowed us to deliver solid results in a year characterized by uneven global economic activity. Looking ahead, we believe our strong global client franchise leaves us well positioned to generate superior returns over the long term” said Lloyd C. Blankfein, Chairman and Chief Executive Officer.