Goldman Sachs and US Bancorp Climb, Yet The Bank of New York Mellon Lower After Earnings

Goldman Sachs Group Inc. (NYSE:GS) posted a decrease in profit as revenue declined. Net income for the diversified investments company fell to $1.01 billion ($1.84 per share) vs. $2.39 billion ($3.79 per share) a year earlier. This is a decline of 57.6% from the year earlier quarter. Revenue  fell 30% to $6.05 billion from the year earlier quarter. GS beat the mean analyst estimate of $1.46 per share. It fell short of the average revenue estimate of $6.54 billion.

“This past year was dominated by global macro-economic concerns which significantly affected our clients’ risk tolerance and willingness to transact,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “While our results declined as a consequence, I am pleased that the firm retained its industry-leading positions across our global client franchise while prudently managing risk, capital and expenses. As economies and markets improve – and we see encouraging signs of this – Goldman Sachs is very well positioned to perform for our clients and our shareholders.”

Competitors to Watch: Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C), UBS AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), Wells Fargo & Company (NYSE:WFC), Credit Suisse Group AG (NYSE:CS), and Piper Jaffray Companies (NYSE:PJC).

US Bancorp (NYSE:USB) reported net income above Wall Street’s expectations for the fourth quarter. Net income for US Bancorp rose to $1.35 billion (69 cents per share) vs. $974 million (49 cents per share) in the same quarter a year earlier. This marks a rise of 38.6% from the year earlier quarter. Revenue was $5.1 billion last quarter. USB beat the mean analyst estimate of 63 cents per share. It beat the average revenue estimate of $4.76 billion.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “Throughout 2011, we remained focused on execution – prudently managing our businesses, investing in our franchise and producing consistent, solid growth and earnings. Today, I am very proud to report our fourth quarter and full year 2011 results, as they reflect the advantages derived from our diversified business model and, importantly, our ability to successfully implement our strategy and accomplish our goals.”

Competitors to Watch: Bank of America Corp. (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Comerica Incorporated (NYSE:CMA), Zions Bancorporation (NASDAQ:ZION), Pinnacle Financial Partners (NASDAQ:PNFP), Regions Financial Corp. (NYSE:RF), Goldman Sachs Group, Inc. (NYSE:GS), and Capitol Bancorp Ltd. (NYSE:CBC).

The Bank of New York Mellon Corporation (NYSE:BK) reported its results for the fourth quarter. Net income for the financial services company fell to $505 million (42 cents per share) vs. $679 million (55 cents per share) a year earlier. This is a decline of 25.6% from the year earlier quarter. Revenue was $3.54 billion last quarter. BK fell short of the mean analyst estimate of 53 cents per share. It fell short of the average revenue estimate of $3.75 billion.

“I am pleased with the meaningful progress we made in improving our capital position and reducing operating expenses. Our Basel III Tier one common equity ratio was 7.1% at the end of the quarter, and we continued to generate strong returns on tangible common equity. It was a challenging revenue quarter, as general uncertainty in the financial markets resulted in lower-than-normal levels of client activity. Our results were also impacted by seasonality in our Depositary Receipts business. We remained focused on driving our operational excellence initiatives and managing our expense base lower to offset weak market conditions,” said Gerald L. Hassell, chairman, president and chief executive officer of BNY Mellon.

Competitors to Watch: State Street Corporation (NYSE:STT), Northern Trust Corporation (NASDAQ:NTRS), SEI Investments Company (NASDAQ:SEIC), Morgan Stanley (NYSE:MS), Goldman Sachs Group, Inc. (NYSE:GS), Bank of America Corp. (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), Citigroup Inc. (NYSE:C), United Western Bancorp, Inc. (NASDAQ:UWBK), and JPMorgan Chase & Co. (NYSE:JPM).