Goldman Sachs net falls as debt trading lags JPMorgan

Investing and Lending

Investing and lending, the segment that includes money made or lost on Goldman Sachs’s investments in companies, securities and real estate, generated $1.91 billion of gains in the quarter. That compares with $2.71 billion of gains a year earlier and $872 million in the fourth quarter.

Within that segment was $169 million on the company’s stake in Industrial & Commercial Bank of China Ltd., the nation’s largest lender. That holding made $316 million a year earlier and $388 million in the fourth quarter.

The investment-banking division, led since May by Richard J. Gnodde, David M. Solomon and John S. Weinberg, made $1.15 billion of revenue in the quarter, down from $1.27 billion a year earlier and compared with $857 million in the fourth quarter.

Estimates from five analysts surveyed by Bloomberg ranged from $786 million to $993 million.

Financial Advice

Within that business, fees from takeovers and other financial-advisory assignments rose 37% to $489 million from $357 million a year earlier and compared with $470 million in the fourth quarter. Last week the company said that Yoel Zaoui, who had been the London-based co-head of global mergers and acquisitions with Gene T. Sykes for less than a year, is leaving after a 24-year career at the bank.

Equity underwriting revenue decreased 40% to $255 million from $426 million a year earlier and was up from $191 million in the fourth quarter. Debt underwriting fees fell 16% to $410 million from $486 million a year earlier and were higher than the $196 million generated in the fourth quarter.

Goldman Sachs ranks fourth among advisers on takeovers announced globally so far this year after winning the top spot for 2011, according to data compiled by Bloomberg. The bank has slipped to third place in equity, equity-linked and rights offerings globally, after securing the No. 1 spot last year, data compiled by Bloomberg show. In global corporate bond underwriting, Goldman Sachs ranks seventh this year, the data show.

Revenue from investment management, the division led since the start of this year by Eric S. Lane and Timothy O’Neill, dropped 8% to $1.18 billion from $1.27 billion a year earlier and compared with $1.26 billion in the fourth quarter. Assets under management fell to $824 billion from $828 billion at the end of 2011.

Bloomberg News

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