Goldman's Securities Service Revenue Rises in 2014

For 2014, Goldman Sachs’ securities services net revenue rose 10% to $1.5 billion, though revenues in the fourth quarter dropped by 18% from the third quarter.

In the fourth quarter of 2014, Goldman’s securities services revenue measured $351 million, down from $428 million the previous quarter, but up from $337 million during Q4 2013.

The gains, says the bank, both for the quarter year over year and for all of 2014, reflect the impact of higher average customer balances.

As a whole, Goldman brought in $34.5 billion in net revenues for 2014, up 1% from 2013. For the quarter, however, revenue slipped 8% from the third quarter and 12% year over year to $7.6 billion.

The firm’s Common Equity Tier 1 ratio increased from the third quarter’s mark of 11.8% to 12.2% at the end of the fourth quarter, both calculated under the Basel III Advanced transitional approach.
Goldman also reduced its total assets held by $55 billion over the course of 2014 to reach $856, reflecting the firm’s desire to reduce activities with lower returns.