The US investment bank has reported net revenues of US$44.6 billion and net earnings of US$9.5 billion for the year ended 31 December 2020 with the former being the firm’s highest net revenues in the past 11 years.

Goldman Sachs attributes its record-breaking figures to its client service and execution of its strategic priorities, despite difficult macroeconomic factors caused by Covid-19.

During the fourth quarter of 2020, net revenues totalled US$11.7 billion and net earnings were US$4.5 billion. Risk-weighted assets (RWAs) currently stand at US$610 billion.

Investment banking also raked in record net revenues of US$9.4 billion, driven by record equity underwriting net revenues and the second highest annual net revenues in debt underwriting.

Global markets generated net revenues of US21.2 billion, a 43% jump from 2019, and its highest annual net revenues in 10 years due to strong results in both Fixed Income, Currency and Commodities (FICC). These included equities, which reported record net revenues in derivatives.

However, SRP data shows that the bank led by David M. Solomon (pictured) suffered a dip in its structured product issuance (677/US$2.2 billion) in the fourth quarter of 2020, compared to the first quarter’s figure of 955 products valued at US$2.8 billion.

 

Heading up the top issuer groups in terms of sales during Q4 20 is Morgan Stanley with US$2.6 billion (640 products), followed by Citi with US$2.3 billion (661). Goldman Sachs finished 2020 in third position with US$2.1 billion (668).

This can be compared with Q4 19’s top contenders J.P. Morgan (US$2.5 billion/1,098), Barclays (US$2.3 billion/522), Goldman Sachs (US$1.9 billion/681), and Morgan Stanley (US$1.7 billion/542).

Goldman as an issuer group has 2,166 live structured products in the SRP database that are listed within the US market. The majority of the products sold by Goldman in 2020 were wrapped as registered unlisted notes and CDs while major distributors the bank’s products were Raymond James, Incapital, FISN, Stifel, and Bank Leumi.

The most featured underlyings in Goldman Sachs products sold in 2020 include the GS Momentum Builder Multi-Asset 5S ER Index, S&P 500, Russell 2000, Motif  Capital National Defense 7 ER Index, and Motif Capital Aging of America 7 ER Index (now calculated by Solactive) as well as single stocks such as Verizon, and Pfizer.

“It was a challenging year on many fronts, and I am deeply proud of how our people helped clients respond to the economic disruption brought on by the pandemic and the extreme market volatility experienced over the past months,” said group chairman and chief executive officer Solomon.

Click here to view Goldman’s Q4 earnings.