Goldman Sachs NZ revenue plunges 52%

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Goldman Sachs New Zealand Holdings has posted a 52 per cent drop in revenue and a full-year loss for 2014.

The local unit of the Wall Street investment bank reported a $2.9 million loss for the 12 months to December 31, down from a $16 million profit in the same period a year earlier, according to financial statements lodged with the Companies Office.

Revenue - earned from fees, commissions and trading - fell from $48.9 million in 2013 to $23.4 million last year.

Like other local investment banks, Goldman's business was boosted in 2013 through its involvement in a number of big deals, including the floats of Z Energy, Meridian Energy, Mighty River Power, Synlait Milk and the block sell-down of Air New Zealand.

The firm's 2014 transactions included the initial public offerings of Genesis Energy and childcare roll-up Evolve Education Group.

It was another strong year for local capital markets activity, with more than $8 billion raised through 12 IPOs and 165 capital raisings by existing issuers.

Goldman's operating expenses in New Zealand fell to $25.1 million last year from $29 million in 2013, while the company paid $1.7 million in tax compared with $4.6 million a year earlier.

The firm reported cash and equivalents of $42.2 million at the end of last year, down from $78 million as at December 31, 2013.

The financial statements also reveal that a number of Goldman's local subsidiaries were amalgamated last year.

In October Goldman Sachs New Zealand Securities was merged into Goldman Sachs New Zealand, a subsidiary of Goldman Sachs New Zealand Holdings.

Meanwhile, Goldman Sachs New Zealand Management, Portfolio Custodian and Development Securities were amalgamated into Goldman Sachs New Zealand Holdings.

The company's New York-listed parent, Goldman Sachs Group, reported an almost 40 per cent jump in first-quarter net income to US$2.7 billion last week. The firm has been benefiting from busy deal activity in the US, with the company saying revenue in its investment banking division was the highest it had been in a single quarter since 2007.

"There's a fair bit of activity out there, and we feel very well placed for it," said Goldman's chief financial officer, Harvey Schwartz.

Goldman shares have gained 1.5 per cent this year and closed at US$196.8 yesterday.