2020 a golden year for giant US investment bank
United States investment bank Goldman Sachs had one of its best years on record in 2020.
The bank reported revenue of US$44.56 billion ($61.73b) in the year to December 31, up 22 per cent on 2019 and its best year since
2009 when the global financial crisis hit.
Its full-year profit was US$9.46b – up
12 per cent on 2019 – while its profit in the fourth quarter of
2020 was US$4.51b, more than double the last quarter of 2019.
Goldman Sachs chair and chief executive David Solomon said at its results presentation that it was a challenging year on many fronts.
“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,” he said.
“Our people responded admirably to a series of professional and personal challenges, while working from home or in offices that were reshaped dramatically.”
Investment banking, which generated 21 per cent of the group’s revenue, hit record net revenue of US$9.42b, driven by record equity underwriting and the second-highest annual revenue from debt underwriting.
Its global markets division, where it derived nearly half of its revenue (48 per cent), also performed strongly, with net revenue of US$21.16b – 43 per cent higher than 2019 and its highest annual net revenue in 10 years. It also earned higher revenue in its consumer and wealth management arms which was partially offset by lower net revenue in asset management.
The results were much better than analysts polled by FactSet were expecting, according to the