Goldman Sachs unit in NZ posts full-year loss

Goldman Sachs New Zealand Holdings, the local unit of the Wall Street investment bank, posted a full-year loss as revenue from fees, commissions and trading fell almost three times as much as operating expenses.

The net loss was $3.58 million in calendar 2011, from a profit of $8.87 million a year earlier, according to the company's financial statements, lodged with the Companies Office.

Total revenue fell to $22.2 million from $43.6 million.

Goldman Sachs NZ is wholly owned by Goldman Sachs Australia International, whose ultimate parent is New York Stock Exchange-listed Goldman Sachs Group, the fifth-biggest United States bank by assets.

The parent's shares have fallen 29 per cent in the past 12 months to last trade at US$97.86 and is rated "outperform" based on the consensus of 30 analyst recommendations, with a price target of US$131.38.

The statements show revenue from fees and commissions fell to $24.3 million in the latest year from $35.2 million 12 months earlier.

Trading income was a negative $624,000 from income of $1.97 million a year earlier.

It records a dividend to the parent of $19.4 million, up from $15.8 million in 2010.

Total expenses fell to $25.7 million from $29.7 million of which salaries, bonus payments and benefits showed a 30 per cent drop to about $13.9 million.

Goldman Sachs NZ changed its name from Goldman Sachs & Partners in November, after the US firm acquired the remaining 55 per cent of the immediate Australian parent.

The US firm had been a minority owner of the Australian business since buying 45 per cent of JBWere in 2003.