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Average Comp Rises To $403,281 As Goldman Offsets Decline In FICC, Equity Trading With Prop Revenue At 2 Year High

Tyler Durden's picture





 

Moments ago Goldman reported its Q1 earnings which were strong enough to beat the highest Wall Street estimate, printing at $4.29 on an estimate range of $3.33 to $4.27/share. Revenue was $10.09 billion on estimates of $9.65 billion. What is notable is that while the bank is eating the lunch of its competitors, as it tends to do, in virtually all revenue categories (IB at $1.41 billion, FICC $3.22 bn, Equities: $1.92 bn, Investment Management $1.32 bn, and Prop trading $2.07 bn), it still was unable to match its prior year revenue in the key "client flow" categories of FICC and equities, which dropped from $3.46 billion to $3.22 bn, and $2.25 bn to $1.92 bn, respectively. How did Goldman offset the secular decline in market participation by everyone else? By doing what it does best: prop trading - in Q1 the firm's "Investing and lending" group, aka its Prop group, reported revenue of $2.068 billion (highlighted in the chart below) well higher than the $1.973 billion in Q4 and $1.911 a year earlier. This was the highest prop trading revenue reported by Goldman since Q1 2011 when, as we reported in February, the world was on the verge of being fixed. It wasn't, and the result was a collapse in Goldman prop trading in Q2 2011. Will this year repeat? This remains to be seen.

However, for now, Goldman's employees are happy: in Q1 compensation benefits were $4.34 billion, or 43% of revenue. And with Goldman reporting "only" 32,000 total staff at period end, or the lowest since the great financial crisis, the average compensation per employee is once again above the "psychological" $400K barrier, or $403,281 on a trailing 12 month basis to be exact. Bollinger time, boys.

 


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Tue, 04/16/2013 - 08:03 | Link to Comment stinkhammer
stinkhammer's picture

$400k worth of shit each; average

Tue, 04/16/2013 - 08:49 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

These assholes are the "takers". The guy who works his ass off for $12 an hour and is so poor that he doesn't pay income tax. He is a "maker". Goldman Sachs produces absolutely nothing for society! Cunts all of them!

Tue, 04/16/2013 - 08:53 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Relax, when the supply lines break.  The skilled craftsman and his reliable tribe will be better positioned.

Tue, 04/16/2013 - 09:49 | Link to Comment Richard Chesler
Richard Chesler's picture

Thank you muppets, errr clients.

Tue, 04/16/2013 - 08:03 | Link to Comment freewolf7
freewolf7's picture

It's good to be king.

I'm so tired of this sh*t.

Tue, 04/16/2013 - 08:43 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Another false flag attack, another record Goldman compensation announcement.

If you don't think those two things are connected-- however distantly-- you are not paying attention.

Tue, 04/16/2013 - 08:49 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Same as it ever was.  Nothing will change until guillotines come out and the heads start rolling.  Move along.  Absolute power corrupts, absolutely.  

Tue, 04/16/2013 - 08:05 | Link to Comment buzzsaw99
buzzsaw99's picture

This is the only thing the fed or d.c. cares about.

Tue, 04/16/2013 - 08:06 | Link to Comment q99x2
q99x2's picture

They don't have to print real numbers now that Holder has their back.

Tue, 04/16/2013 - 08:09 | Link to Comment firstdivision
firstdivision's picture

...and its any wonder how the hell they have clients to begin with.  Seriously, all you hear about is how they fucked over their clients, especially when it comes to M&A.  Why do businesses continue to utilize this company is beyond me.

Tue, 04/16/2013 - 08:22 | Link to Comment buzzsaw99
buzzsaw99's picture

it's a club, and you ain't in it

Tue, 04/16/2013 - 08:44 | Link to Comment firstdivision
firstdivision's picture

I don't like getting raped, so I prefer to not be in it.

Tue, 04/16/2013 - 08:51 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Their "clients" are some pretty big institutional investors.  Many pension plans from around the world for example.  None of the people who actually rely on these pensions probably even fucking know that Goldman is managing their future.  Ignorant fucking sheep.

Tue, 04/16/2013 - 08:54 | Link to Comment TWSceptic
TWSceptic's picture

Government backed = safe.

Tue, 04/16/2013 - 08:09 | Link to Comment azzhatter
azzhatter's picture

Little celebration going on in DC. Blankfein,Holder, Obowel Movement, Bernanke are all blowing each other

Tue, 04/16/2013 - 08:11 | Link to Comment cutefarts
cutefarts's picture

what's new..

Tue, 04/16/2013 - 08:14 | Link to Comment Dr. Engali
Dr. Engali's picture

I am shocked! Shocked! That the bank who has it's tentacles in central banks and governments around the world is able to eat it's "competitors" lunch like this.

Tue, 04/16/2013 - 08:19 | Link to Comment negative rates
negative rates's picture

It's okay, that's why they call me the bus driver. Cause i'm about to take you to SCHOOL!

Tue, 04/16/2013 - 08:39 | Link to Comment NoDebt
NoDebt's picture

Hey, it's good work if you can get it.  Who wouldn't want to be part of an orgainization that does God's Work?

Tue, 04/16/2013 - 08:16 | Link to Comment new game
new game's picture

 

club squid.

 

Tue, 04/16/2013 - 08:23 | Link to Comment Cacete de Ouro
Cacete de Ouro's picture

If you can't beat 'em, join 'em...

Tue, 04/16/2013 - 08:17 | Link to Comment disabledvet
disabledvet's picture

I see Lloyd is growing a beard.

Tue, 04/16/2013 - 08:33 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Sorta makes him look a little like Moses.

Tue, 04/16/2013 - 08:47 | Link to Comment disabledvet
disabledvet's picture

"God I give you the 15 Command...ooops, nay TEN Commandments. I give you the TEN Commandments!"

Tue, 04/16/2013 - 08:20 | Link to Comment new game
new game's picture

blankfiend to gathered vp's(after brief pat his own back), everybody back to work, there is money out there to steal...

Tue, 04/16/2013 - 08:21 | Link to Comment tallen
tallen's picture

Goldman just got stopped out of gold now it's back over $1400.

Tue, 04/16/2013 - 08:50 | Link to Comment disabledvet
disabledvet's picture

Funny how the psychology thing can be confusing. "if I tell the public one thing but do the opposite for my clients was I suppose to be...

Tue, 04/16/2013 - 08:21 | Link to Comment orangegeek
orangegeek's picture

Dow falls 265 yesterday.

 

Dow is up 129 before the open.

 

And the gong show continues - more record highs on their way.

Tue, 04/16/2013 - 08:51 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Between the BoJ and the Fed, that 100 billion per month has to go somewhere.

Tue, 04/16/2013 - 08:26 | Link to Comment new game
new game's picture

up, down and carefully front running, nice job, that was easy.

wish i new where the market was going and when it will turn and be ahead for each and every gain up or down.

oh, shit, maybe that is why i don't trade anymore...

Tue, 04/16/2013 - 08:32 | Link to Comment Downtoolong
Downtoolong's picture

How did Goldman offset the secular decline in market participation by everyone else? By doing what it does best: prop trading

Because, when it’s serious you have to lie and skim from your clients.

Tue, 04/16/2013 - 08:34 | Link to Comment Jim B
Jim B's picture

They are a "bank"....

 

How disgusting!

Tue, 04/16/2013 - 08:36 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

Just doing God's work, day in, day out. Who knew God was so lucrative? Maybe its time for an LBO of God? His shares are tremendously undervalued and his kingdow would be worth more if it was split up and sold in pieces.

Somebody get me an underwriter...

Tue, 04/16/2013 - 08:36 | Link to Comment thismarketisrigged
thismarketisrigged's picture

when wall st makes expectations so fucking low, every company is going to beat.

 

that is why earnings for now at least are the most overrated thing in the market ( i know that sounds weird because markets are supposed to trade on earnings) because they have made expectations so low, its impossible to miss pretty much.

 

of course with this, the overall market is somehow on there way to wiping out all of yesterdays losses, not that i am surprised or anything, its the fucking joke bernanke is.

Tue, 04/16/2013 - 08:41 | Link to Comment kill switch
kill switch's picture

OT, But interesting  My Gainesville order of 500 toz delayed three weeks..

 

 

*UPDATE: ALL US WHOLESALE SUPPLIERS ARE NOW SOLD OUT OF EVERY OUNCE OF PHYSICAL SILVER & HAVE SUSPENDED ALL SALES!  SDBullion.com has closed due to lack of ANY AVAILABLE SILVER!

Two of the largest wholesale suppliers in the US, including Amark and CNT, who is the supplier of gold blanks to the US Mint for Gold Eagles, and is a registered COMEX depository, HAVE JUST SOLD OUT OF ALL PHYSICAL SILVER!!! 
AND……IT’S GONE!!!!!

In the face of an EPIC TSUNAMI of gold and silver sales today as the cartel hammered the price of silver down over 12%, and off $6 from Friday’s open, we have just been informed at SDBullion upon trying to place a large inventory order that BOTH AMARK & CNT ARE SOLD OUT OF EVERY LAST OUNCE OF PHYSICAL SILVER!!!

Apparently the fact that one of the largest wholesale suppliers in the US is SOLD OUT, while simultaneously the 2nd largest silver mine in the US is offline perhaps permanently is of absolutely no consequence to the paper dumping cartel bullion banks.

Bullion bank silver shorts are most likely covering in mass RIGHT NOW, and we’ll soon have the data to make the case.  Many have speculated that the bullion banks are going to switch to a net long position. There couldn’t be a better time to do just that given that at $22/oz, pretty much all existing shorts taken out before this week will be in the money.

16% of US Annual Silver Supply Just Vaporized

 

 

 

Tue, 04/16/2013 - 08:43 | Link to Comment BurningFuld
BurningFuld's picture

They knocked the price down and then moved their money out of paper gold promises and into any contract where they can get their hands on the Physical stuff.......leaving all the bag holders with paper promises. You can bank on it.

Tue, 04/16/2013 - 08:55 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

We realize the paper price has gone down.....but there's no way in hell we're gonna sell the real stuff to you for that.

Tue, 04/16/2013 - 08:39 | Link to Comment rsnoble
rsnoble's picture

Leave it to "God" to fix everything.

Tue, 04/16/2013 - 08:44 | Link to Comment SheepDog-One
SheepDog-One's picture

America, where the only thing that pays is crime.

Tue, 04/16/2013 - 08:48 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Good year for Goldman, bad year for Muppets....

 

Onward...

Tue, 04/16/2013 - 08:54 | Link to Comment optionsman
optionsman's picture

somebody has to do the God's work regardless of such despicabely low compensation.........well, there is always next quarter....

Tue, 04/16/2013 - 09:41 | Link to Comment thismarketisrigged
thismarketisrigged's picture

was there a pomo yesterday? if not, it all makes sense why yesterday was a selloff and today we r back up.

 

bernanke probably printing the futures up like crazy since lastnight to ensure we recover all the losses.

Tue, 04/16/2013 - 10:40 | Link to Comment venturen
venturen's picture

Wait they don't prop trade....Chris "show me the money" Dodd and Barney "please don't show me anything" Frank told me so.

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