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

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news