Goldman Sachs profited $21.64 billion in 2021, more than double of the previous year
The American investment bank Goldman Sachs closed 2021 with a net profit of $21,635 billion, which represents a record figure for the entity’s profits and means multiplying the profit of the previous year by 2.3, as can be seen from the annual accounts published by the firm on Tuesday.
Although most of the increase has come from the increase in billing and cost containment, the reduction in provisions for credit losses has also affected the accounts.
Thus, during 2021, Goldman Sachs recorded provisions amounting to $357 million, mainly associated with the acquisition of the General Motors credit card business. During 2020, due to the effect of the pandemic, provisions were $3 billion dollars.
The bank’s income between January and December rose 33%, to $59.3 billion. Of that figure, net interest income grew by 36%, to $6,4 billion, while those from commissions and fees rose 33%, to $52.8 billion.
By business segments, the global capital markets division had a turnover of $22 billion, 4% more, while the asset management division stood at $14,9 billion, 87% more.
The investment banking area recorded a turnover of $14.8 billion, 58% more, while the retail banking and wealth management business experienced an increase of 25% compared to the previous year, up to $7,4 billion.
The bank’s expenses in the whole of 2021 rose 10%, to $31.9 billion. Of that figure, employee compensation, the largest item in absolute terms, registered the largest increase, of 33%, to stand at $17.7 billion. On the other hand, the cost of transactions reached $4.7 billion, 14% more, while communications and technology accounted for a cost of $1.57 billion.
As of December 31, 2021, the bank recorded assets under supervision valued at $2.47 trillion, 4.1% more than a quarter before and 15.2% more than in the previous year .
On the other hand, at the end of the year, Goldman Sachs’ CET1 capital ratio was 14.2%, five tenths less than at the end of 2020, while the average return on capital (RoE) of the group of the year was 23%, more than double that of 2021.
Regarding the accounts for the fourth quarter of 2021, Goldman Sachs recorded a net profit of $3.9 billion, 13% less.