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: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

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:

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