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Goldman Beats On Solid Top Line Results; Average 2012 Employee Pay Rises To $399,506

Tyler Durden's picture




 

Unlike JPM, there is little that can be faulted with Goldman's just released Q4 earnings, which saw total top-line surge to $9.24 billion on expectations of $7.83 billion, while net earnings printed at $2.822 billion, or $5.60 diluted, nearly double the $1.458 billion reported in Q3 and far above the $978MM in Q4 2011. This beat was driven by solid performance around the board, which was to be somewhat expected: after all this was a quarter of success for the world's most connected hedge fund, which saw one of its own rise to the top of the world's most venerable central bank: the Bank of England, and is certainly pining to have a Goldmanite replace Shirakawa as head of the BOJ in one month. Rhetoric aside, Goldman's performance was impressive, posting the best results since Q1 2012, when total revenues hit $9.9 billion. Increases were seen across all segments, with Investment banking rising to $1.4 billion, Equities up to $2.3 billion, Investment Management at $1.5 billion, and Investing and Lending, aka Prop (yes, the firm discloses it has a prop group, much to the dismay of many people out there apparently) of $1.973 billion. The only weak spot was FICC which while posting a solid $2.0 billion in revenue, actually declined from the $2.2 billion in Q3.

It is not immediately clear just what drove Goldman's outperformance to such highs. We will have to wait for the 10-Q release to guess just how many $100MM+ trading days the firm had, especially since VaR declined from both Q4 2011, $135, and Q3 2012, $81 to just $76. Something just does not add up.

Finally, while the comp benefits accrual taken in Q4 was only $1.976 billion, or 21.4% of revenues, on a blended TTM basis and based on the firm's 32,400 employees (down from 32,600 in Q3), this means that the average Goldman bonus in 2012 will be just under $400,000. This is up from $367,057 a year ago: a nearly 10% increase. At least someone's wages are going up.

Full revenue breakdown:

Full trailing 1 year compensation average:

 

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Wed, 01/16/2013 - 09:04 | 3157100 AccreditedEYE
AccreditedEYE's picture

Almost as shocking as the DIP we are going to have at the open..... almost.

Wed, 01/16/2013 - 09:09 | 3157106 GetZeeGold
GetZeeGold's picture

 

 

Another opportunity to buy gold. It's like clockwork really.

 

Those GS boys get paid in paper......suckers.

Wed, 01/16/2013 - 09:15 | 3157114 AccreditedEYE
AccreditedEYE's picture

Yes, gold is also on sale this morning. I agree. 

Wed, 01/16/2013 - 09:37 | 3157160 economics9698
economics9698's picture

You mean to tell me the bankers actually got it right?

Wed, 01/16/2013 - 09:14 | 3157113 spankthebernank
spankthebernank's picture

Who. Fucking. Cares.?

Wed, 01/16/2013 - 12:58 | 3157907 prains
prains's picture

The idea that this is capitalism is so fucked up it hurts the eyeballs. When the printer finally runs dry and the true extent of the misallocation of wealth becomes evident to even the most myopic in America (which i guesstimate to be +200 million) I hope to God/Allah/Budda/Frankinweenie that there be a changin happnin aroun dem dere parrtz.

Wed, 01/16/2013 - 09:08 | 3157105 Dr. Engali
Dr. Engali's picture

The squid had a good quarter. That's about as surprising the sun rising in the morning and setting at night. I'm glad they get a bonus increase so they can trickle on us some more.

Wed, 01/16/2013 - 09:09 | 3157107 fonzannoon
fonzannoon's picture

It was all Stolper

Wed, 01/16/2013 - 09:12 | 3157109 youngman
youngman's picture

The Clan always wins.....period..

Wed, 01/16/2013 - 09:13 | 3157110 AU5K
AU5K's picture

wow, how could they live on $343,000.  glad those tough times are over.

Wed, 01/16/2013 - 09:13 | 3157111 unrulian
unrulian's picture

fuck off GS

Wed, 01/16/2013 - 09:15 | 3157112 Inthemix96
Inthemix96's picture

A $400K bonus for producing nothing but debt and misery?

Nice work if you can get it.

Wed, 01/16/2013 - 10:47 | 3157430 drivenZ
drivenZ's picture

actually they produce money. For Goldman. alot of it.   

Wed, 01/16/2013 - 09:21 | 3157122 HD
HD's picture

What bothers me the most is there will be no day of reckoning for these people. They will live long lives, fat, rich and happy while the masses fight for scraps and beg for health care.

If there is a God - he sure hates poor people.

Wed, 01/16/2013 - 09:53 | 3157231 Cursive
Cursive's picture

@HD

To paraphrase St. Augustine of Hippo, this is the City of Man, not the City of God.  If I worked at GS, I'd be more worried about my afterlife in the City of God. 

Wed, 01/16/2013 - 10:33 | 3157378 The Final Countdown
The Final Countdown's picture

I thought Goldman Sachs was doing God's work, so why would the Goldmanites have to worry about their ticket into the City of God?

Anyway, St. Augustine of Hippo was a jerk. Not only did he believe God picks those who get salvation at random, but he also believed anyone who got it bad had it all thanks to themselves. Dead babies, innocent war victims and terminally ill people who spent their whole lives helping the poor and needy included. Hardly someone I'd like to paraphrase.

Wed, 01/16/2013 - 10:18 | 3157335 WarHorse
WarHorse's picture

Really?  300,000 laid off in the financial industry with more on the way.  I guess the salesman that helps a corporate hedge his commodity/rates/fx exposure is really putting taxpayers at risk.  If you want to hate the mortgage traders .. I get it .. but to broad brush the rest is ridiculous ....

Wed, 01/16/2013 - 10:50 | 3157446 drivenZ
drivenZ's picture

Fat and Rich maybe...happy is debatable. Unless you're happy being stressed and working 24/7. 

Wed, 01/16/2013 - 09:21 | 3157123 GoBadgers
GoBadgers's picture

God's work.

Wed, 01/16/2013 - 12:55 | 3157886 waterhorse
waterhorse's picture

yes, but WHICH god?

Wed, 01/16/2013 - 09:52 | 3157129 hooligan2009
hooligan2009's picture

just to be clear...this profit, represents losses for goldmans clients..also..all work done by goldman has been in an environment when the global economy is pants..clipping the ticket on the broken ferris wheel..well done

Wed, 01/16/2013 - 09:24 | 3157134 yogibear
yogibear's picture

The Vapmire Squid always wins. It dictates/owns the US government. If Goldman doesn't like it, its doesn't happen.

Wed, 01/16/2013 - 09:41 | 3157181 Disenchanted
Disenchanted's picture

Is there a job application available for the "God's Work" gig? Or do you have to know somebody important to get in on it?

Shirley Goldman has an EEO policy in effect...right?

 

/s

Wed, 01/16/2013 - 09:56 | 3157243 orangegeek
orangegeek's picture

One company maketh not an economy.

Wed, 01/16/2013 - 09:59 | 3157261 rsnoble
rsnoble's picture

Proof that working for God is a good choice.

Wed, 01/16/2013 - 10:07 | 3157306 q99x2
q99x2's picture

Fraud does really well until it gets you 99 years in the slammer.

Wed, 01/16/2013 - 12:54 | 3157877 waterhorse
waterhorse's picture

The great vampire squid is untouchable (and unjailable - oh, except for the scapegoat brown guy - Raj)

Wed, 01/16/2013 - 10:23 | 3157346 krispkritter
krispkritter's picture

The Devil has a printer and his name is Bernanke. $400k per soul, that's a bargain stretched over eternity.

May those causing the most misery in this world to feed their greed find a lightpole in their near future...

Wed, 01/16/2013 - 10:53 | 3157458 classy_hopper
classy_hopper's picture

Goldman beats and the S&P500 drops? you can't even trust the algos any more...

Wed, 01/16/2013 - 11:18 | 3157551 Dexter Morgan
Dexter Morgan's picture

In what sense is GS a bank?  I have never known anybody with a GS checking account.  Is Phoenix that much of a backwater location?

Wed, 01/16/2013 - 11:19 | 3157558 Sizzurp
Sizzurp's picture

The fiat currency regime is great for those in the middle of it all.  TBTF, and too powerful to stop.  It's good to be the king.  Taxpayers will work many long hard hours to pay off the bankers who will drive this country into the dirt while they extract every bit of capital they can.  They have their own collection agency with guns, otherwise known as the US gov.

Wed, 01/16/2013 - 11:34 | 3157598 Marley
Marley's picture

"this means that the average Goldman bonus in 2012 will be just under $400,000"

Nearly half the worlds population, 2.8 billion people, survives on $2 per day. 

http://www.un.org/en/globalissues/briefingpapers/food/vitalstats.shtml

You know, I love the smell of money in the morning and rotten bodies in the afternoon.  Smells like..........capitalism.

Wed, 01/16/2013 - 11:37 | 3157612 Overfed
Overfed's picture

I'm totally in the wrong line of work.

Wed, 01/16/2013 - 11:39 | 3157624 Uncle Zuzu
Uncle Zuzu's picture

I am long America, so I have to be short GS.  Long term.

Wed, 01/16/2013 - 11:52 | 3157661 Sambo
Sambo's picture

I dont understand what it is that these fellows create of value to justify such huge pay outs.

Wed, 01/16/2013 - 12:07 | 3157709 drivenZ
drivenZ's picture

they make money. they get paid money. rinse and repeat. 

Wed, 01/16/2013 - 12:58 | 3157910 waterhorse
waterhorse's picture

But they "earned" it.  After all, doing "God's work" and ripping the faces off the muppets is labor intensive; not to mention purchasing all those captured regulators and politicians.

Wed, 01/16/2013 - 13:32 | 3158244 BlueCheeseBandit
BlueCheeseBandit's picture

When the big banks are able to get free money from the Fed to loan out at interest and gamble in prop trades, the surprise is not when they make money, but when they don't.

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