Goldman Sachs Group Inc (GS)’s Broad Beat to Finish 2012

of $4.9 billion were well managed during the fourth quarter, as the total operating expense for 2012 remained unchanged compared with 2011. Non-compensation expense was $2.95 billion. This was 14% higher than the non-compensation expense of the same quarter of 2011 and 24% higher compared to the linked quarter. Compared to the linked quarter, the surge in non-compensation expense was due to higher net provisions for litigation and regulatory proceedings and higher charitable contributions.

Capital Position

During the fourth quarter, the bank’s total assets of $936 billion were down 1% compared to the linked quarter. Risk-weighted assets of $400 billion under Basel I were down 8% over the same time period. The Basel I tier 1 common ratio of 14.5% improved 140 basis points from the linked quarter level. Credit Suisse has an estimate of 9% common ratio under Basel III by the year end.

I believe the trends of higher equity, fixed income underwriting and corporate and investment banking visible in the results for both JPM and GS will positively impact the performance Morgan Stanley (NYSE:MS), which is scheduled to report its fourth quarter performance on Jan. 18.

The article Goldman’s Broad Beat to Finish 2012 originally appeared on Fool.com.

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