Goldman Sachs NZ unit posts $3.6m FY loss
BUSINESSDESK: Goldman Sachs New Zealand Holdings, the local unit of the Wall Street investment bank, posted a full-year loss as revenue from fees, commissions and trading fell almost three times as much as operating expenses.
The net loss was $3.58 million in calendar 2011, from a profit of $8.87 million a year earlier, according to the company’s financial statements lodged with the Companies Office. Total revenue fell to $22.2 million from $43.6 million.
Goldman Sachs NZ is wholly owned by Goldman Sachs Australia International, whose ultimate parent is New York Stock Exchange-listed Goldman Sachs Group, the fifth-biggest US bank by assets.
The parent’s shares have fallen 29% in the past 12 months to last trade at $US97.86 and is rated "outperform" based on the consensus of 30 analyst recommendations, with a price target of $US131.38.
The statements show revenue from fees and commissions fell to $24.3 million in the latest year from $35.2 million 12 months earlier.
Trading income was a negative $624,000 from income of $1.97 million a year earlier. It records a dividend to the parent of $19.4 million, up from $15.8 million in 2010.
Total expenses fell to $25.7 million from $29.7 million of which salaries, bonus payments and benefits showed a 30% drop to about $13.9 million.
Goldman Sachs NZ changed its name from Goldman Sachs & Partners in November, after the US firm acquired the remaining 55% of the immediate Australian parent.
The US firm had been a minority owner of the Australian business since buying 45% of JBWere in 2003.