Goldman reveals stockbroking sale to NAB a key profit booster

Accounts lodged by the investment bank's main Australian operating entities including the capital markets business show a combined profit of $233.6 million for calendar 2009, up from $58.4 million a year earlier.

While the accounts are not a complete overview of the myriad of entities operated by Goldman Sachs JBWere, they do provide insight into its performance.

The main operating entity, Goldman Sachs JBWere Pty Ltd, which includes the investment banking, advisory and equity capital markets business, delivered a profit of $103.2 million. This was a sharp increase on the previous year's result of $6.13 million.

However, the result was boosted by the $96.2 million sale of its retail stockbroking arm to National Australia Bank.

As part of the deal, NAB acquired 80.1 per cent of the private-client wealth management business, which is regarded as having one of the nation's best private clients lists, particularly through Melbourne's wealthy families, while Goldman Sachs retained the balance.

The accounts, also show that more than $35 million in dividends were paid to the bank's partners last year, up from $20 million a year earlier.

While remuneration figures are not broken out for all the Goldman Sachs entities, one of the key vehicles, Goldman Sachs JBWere Capital Markets, gave an indication of the extent of bonuses paid to key Goldman staff.

A profit of $130.4 million for the capital markets business, which oversees fixed-interest and money markets trading, as well as custodian services, was more than double the $52.3 million a year earlier.

The accounts show joint chief executive Simon Rothery was paid $2.5 million last year, mostly made up of a cash bonus. Steven Fitzgerald, also a joint chief executive, was paid $2.48 million.

The joint investment banking bosses, Christian Johnston and James McMurdo, were both paid $749,000 for their roles as directors of the capital markets business.