Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Goldman Sachs NZ lifts 2013 revenue by 63% in boom year

Goldman Sachs NZ lifts 2013 revenue by 63% in boom year for NZX listings

By Jonathan Underhill

May. 27 (BusinessDesk) - Goldman Sachs New Zealand Holdings, the local unit of the Wall Street investment bank, posted a 63% percent jump in revenue in 2013, a boom year for market activity that saw it win a share of deals including the floats of Z Energy, Meridian Energy and Synlait Milk, Tower's asset sales, Harvard University's forest sale and the selldown of Air New Zealand.

Revenue climbed to $49.9 million in calendar 2013, the highest in four years, from $30.1 million in 2012. Profit tripled to $15.95 million as it held the gain in operating expenses to 8.8 percent.

Goldman Sachs NZ managed to win a share of the biggest New Zealand deals last year, including the relatively low-key selldown by Harvard University's endowment fund of its stake in the 170,000 hectare Kaingaroa forest in the central North Island to 28.8 percent from 60 percent, a transaction believed to have been valued around $1 billion.

It was one of the lead managers in Meridian Energy's IPO, which will net $1.88 billion for the government once the second installment is paid in 2015, and helped manage the government's selldown of its holding in Air New Zealand to 53 percent from 73 percent, raising $365 million. The Treasury also hired Goldman Sachs to assess Kiwibank's capital needs early in 2013.

Outside of the public sector, it helped Tower sell its funds, life and health units and was joint lead manager in the $75 million IPO and listing of Synlait Milk and the IPO of Z Energy, which raised $840 million for owners Infratil and the New Zealand Superannuation Fund. Goldman Sachs subsequently helped Australia’s Retirement Villages Group sell its 37.7 percent stake in Metlifecare to Infratil and the NZ Super Fund for about $274 million.

The performance of Goldman's local unit was probably even rosier because it also garnered overseas work, such as on Olam International's South American farms, generating fees that weren't included in the local accounts.

Fees and commissions comprise the bulk of Goldman Sachs NZ's revenue, while investment income slipped to $2.2 million from $2.8 million. Salaries and bonuses were the company's biggest expense in 2013, rising to $13.5 million from $13 million in 2012. Employee incentive plan costs were little changed at $3.57 million.

New York-based parent Goldman Sachs Group lifted net income by a more modest 8 percent to US$8.04 billion last year as a surge in fees from underwriting made up for weaker trading revenue.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news