Goldman Sachs Group's Strategic Initiatives - Goldman Sachs Group has established a Capital Solutions Group to integrate financing, origination, structuring, and risk management solutions within its Global Banking & Markets business [1] - The company is expanding its alternatives investment team in the Asset & Wealth Management business to enhance its capabilities in private credit, private equity, and other asset classes [1][2] - The new Capital Solutions Group aims to better coordinate and innovate services by combining expertise from the Financing Group, Financial Sponsors coverage, and Alternative Management firms [4] - The group will be led by Pete Lyon and Mahesh Saireddy, who will also join the firm's management committee [5] Industry Trends and Market Demand - The private credit market is booming, with the IMF estimating it exceeds $2 trillion [6] - There is significant demand from investing clients for private credit and private equity, including investment-grade and leveraged lending, hybrid capital, asset-backed finance, and equity [6] - Other major financial institutions, such as JPMorgan Chase, Citigroup, and BlackRock, have formed partnerships to invest tens of billions of dollars in private credit [7] Leadership and Strategic Positioning - Goldman Sachs Chairman and CEO David Solomon emphasized the company's strategic positioning to capitalize on the growth of private credit and other privately deployed asset classes [3] - The company's initiatives are designed to strengthen its ability to serve corporate and investor clients while growing its business in key asset classes [2][3]

Earnings Performance - Goldman Sachs' Q4 2024 adjusted EPS of $11.95 surpassed the Zacks Consensus Estimate of $7.99, a significant increase from $5.48 in the year-ago quarter [1] - For 2024, adjusted EPS was $40.54, up from $22.87 in 2023 [1] - Net earnings (GAAP basis) for Q4 2024 were $4.1 billion, a 37.5% increase from the prior-year quarter [4] - Full-year 2024 net earnings were $14.3 billion, surging 67.6% year over year [4] Revenue and Expenses - Q4 2024 net revenues of $13.9 billion increased 22.5% year over year, surpassing the Zacks Consensus Estimate of $11.63 billion [5] - Full-year 2024 net revenues of $53.5 billion increased 15.7% year over year, exceeding the Zacks Consensus Estimate of $51.97 billion [5] - Total operating expenses decreased 2.7% year over year to $8.26 billion, driven by lower depreciation, amortization, and occupancy costs [6] - Provision for credit losses was $351 million, down 32% from the prior-year quarter [6] Segment Performance - Asset & Wealth Management division generated Q4 2024 revenues of $4.72 billion, up 7.6% year over year, driven by higher management and incentive fees [2] - Firmwide assets under supervision reached a record $3.1 trillion, up 11.6% from the prior-year quarter [2] - Global Banking & Markets division recorded Q4 2024 revenues of $8.5 billion, a 33.4% year-over-year increase, driven by strong IB business and equities revenues [7] - Platform Solutions division's Q4 2024 revenues were $669 million, up 15.9% year over year, driven by consumer platforms [7] - Total IB fees increased 24% year over year to $2.27 billion, with equity underwriting fees jumping 98% and debt underwriting fees growing 50.6%, though advisory fees fell 4.4% [11] Capital and Shareholder Returns - Standardized Common Equity Tier 1 capital ratio improved to 15% as of Dec 31, 2024, up from 14.4% in the prior year [9] - Supplementary leverage ratio remained unchanged at 5.5% year over year [9] - Goldman returned $2.97 billion of capital to common shareholders in Q4 2024, including $2 billion in share repurchases and $978 million in common stock dividends [12] Industry Context - M&T Bank Corporation (MTB) is expected to report Q4 2024 results on Jan 16, with a Zacks Consensus Estimate of $3.70 EPS, unchanged over the past seven days [3] - Fifth Third Bancorp (FITB) is scheduled to release Q4 2024 earnings on Jan 21, with a Zacks Consensus Estimate of 87 cents EPS, unchanged over the past seven days [3][8] Outlook - Goldman's focus on IB and trading businesses, along with strong deal-making pipelines, is expected to support future revenue growth [10] - Active client engagement and a solid position in global M&A activities are likely to act as tailwinds for the company [10]

David Solomon, CEO of Goldman Sachs, speaks during the Reuters NEXT conference, in New York City, U.S., December 10, 2024.The election of Donald Trump in November and a swing back to Republican power in Washington is already starting to make an impact in the business world, according to Goldman Sachs CEO David Solomon.The bank executive said on a conference call Wednesday that other CEOs are feeling better about the direction of the economy and their businesses since the presidental election, even though Tr ...

The first earnings season of 2025 is kicking off, and as always, the financial sector leads investors into the first round of action this week. While banking stocks aren’t that exciting to most, the biggest investment banks usually give many clues as to where the economy currently is or might be headed. Since they are attached directly to the business cycle, investors should start paying attention today. There are two types of banks, however. There are commercial banks that deal in more conventional product ...

Goldman Sachs (GS) reported $13.87 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 22.5%. EPS of $11.95 for the same period compares to $5.48 a year ago.The reported revenue represents a surprise of +13.11% over the Zacks Consensus Estimate of $12.26 billion. With the consensus EPS estimate being $8.07, the EPS surprise was +48.08%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Goldman Sachs Group outperformed expectations in its fourth-quarter and full-year earnings with a robust financial showing across all segments.Global financial services giant Goldman Sachs (GS 1.52%) reported strong fourth-quarter and full-year earnings on Wednesday, Jan. 15, topping analyst estimates for the quarter. The company's Q4 EPS climbed to $11.95, far surpassing the analyst estimate of $8.21. Net revenue for the quarter came in at $13.87 billion, beating expectations of $12.36 billion. The impress ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Goldman Sachs (GS) shares gained in premarket trading Wednesday after the bank reported better-than-expected fourth-quarter results. The bank reported $4.11 billion in profit on $13.87 billion in revenue, well above the respective $2.89 billion and $12.31 billion that analysts estimated, per Visible Alpha. Goldman registered $2.35 billion in net interest income, above the $2.1 billion expectation. "I'm encouraged that we have met or exceeded almost all of the targets we set in our strategy to grow the firm ...

Global Banking & Markets Performance - Global Banking & Markets net revenues for 2024 were $34.94 billion, a 16% increase compared to 2023[3] - Investment banking fees for 2024 were $7.73 billion, a 24% increase compared to 2023, driven by higher revenues in Debt and Equity underwriting[4] - FICC net revenues for 2024 were $13.20 billion, a 9% increase compared to 2023, primarily due to higher revenues in FICC financing and intermediation[5] - Equities net revenues for 2024 were $13.43 billion, a 16% increase compared to 2023, driven by higher revenues in Equities intermediation and financing[6] - Fourth quarter 2024 net revenues in Global Banking & Markets were $8.48 billion, a 33% increase compared to the same period in 2023[7] - Global Banking & Markets net revenues grew 16% year-over-year to $34.943 billion in 2024, with investment banking fees up 24% to $7.732 billion[66] - Global Banking & Markets generated $34.94 billion in net revenues, driven by record Equities and strong Investment banking fees and FICC performance[69] Asset & Wealth Management Performance - Asset & Wealth Management net revenues for 2024 were $16.14 billion, a 16% increase compared to 2023, driven by higher Management and other fees and Equity investments[10][40] - Fourth quarter 2024 net revenues in Asset & Wealth Management were $4.72 billion, an 8% increase compared to the same period in 2023[25] - Asset & Wealth Management net revenues increased 16% to $16.142 billion in 2024, with management and other fees rising 10% to $10.425 billion[66] - Asset & Wealth Management achieved $16.14 billion in net revenues, including record Management and other fees and Private banking and lending revenues[69] Platform Solutions Performance - Platform Solutions net revenues for 2024 were $2.43 billion, a 2% increase compared to 2023, reflecting slightly higher revenues in Consumer platforms[27] - Fourth quarter 2024 net revenues in Platform Solutions were $669 million, a 16% increase compared to the same period in 2023[43] - Platform Solutions net revenues grew 2% to $2.427 billion in 2024, with consumer platforms contributing $2.147 billion[66] - Platform Solutions revenue for 2024 was $2.43 billion, with Consumer platforms contributing $2.15 billion and Transaction banking $280 million[49] Full-Year Financial Performance - Full year 2024 net revenues were $53.51 billion, a 16% increase compared to 2023, driven by higher revenues in Global Banking & Markets and Asset & Wealth Management[21] - Full-year 2024 net revenues increased 16% to $53.51 billion, driven by a 24% increase in investment banking revenue and a 27% increase in net interest income[56] - Full-year 2024 net revenues reached $53.51 billion, with net earnings of $14.28 billion and diluted EPS of $40.54[69] Credit Losses and Provisions - Provision for credit losses in Q4 2024 was $351 million, a decrease from $577 million in Q4 2023 and $397 million in Q3 2024, primarily driven by net charge-offs in the credit card portfolio[47] - Full-year 2024 provision for credit losses totaled $1.35 billion, with Q4 2024 contributing $351 million[48] Operating Expenses and Efficiency - Full-year 2024 operating expenses were $33.77 billion, a 2% decrease from 2023, with an efficiency ratio of 63.1% compared to 74.6% in 2023[52] Capital Returns to Shareholders - The company returned $11.80 billion of capital to common shareholders in 2024, including $8.00 billion in share repurchases and $3.80 billion in dividends[53] Quarterly Earnings and Shareholder Metrics - Q4 2024 net earnings applicable to common shareholders were $3.92 billion, a 110% increase from Q4 2023, with diluted earnings per share of $11.95[57] - Book value per common share grew 7.4% to $336.77 in 2024[69] Balance Sheet and Capital Ratios - Total assets as of December 31, 2024, were $1.67 trillion, with cash and cash equivalents at $182 billion and loans at $196 billion[58] - Common equity tier 1 capital increased to $103.0 billion as of December 31, 2024, up from $99.4 billion in December 2023[59] - Common equity tier 1 capital ratio under standardized capital rules rose to 15.0% in December 2024, compared to 14.4% in December 2023[59] Assets Under Supervision (AUS) - Total assets under supervision (AUS) reached $3.137 trillion as of December 31, 2024, up from $2.812 trillion in December 2023[61] - Net inflows into total AUS for the year ended December 31, 2024, were $214 billion, driven by $106 billion in long-term AUS inflows[61] - Net market appreciation for AUS in 2024 was $111 billion, contributing to the overall growth in AUS[61] - Assets under supervision increased 12% to a record $3.14 trillion in 2024[69] Regional Performance - Americas contributed 66% of Q4 2024 net revenues, totaling $9.10 billion, a 17% increase from Q4 2023[68] - Asia's net revenues grew 87% year-over-year to $1.99 billion in Q4 2024[68] - Full-year Americas net revenues increased 17% to $34.45 billion in 2024, maintaining a 64% share of total revenues[71] - Asia's full-year net revenues rose 32% to $6.81 billion in 2024, increasing its share to 13% of total revenues[71] Risk Metrics - Average daily VaR for interest rates was $83 million in Q4 2024, up from $75 million in Q3 2024[60] - Total average daily VaR for Q4 2024 was $96 million, compared to $92 million in Q3 2024[60] Quarterly Revenue Highlights - Goldman Sachs reported Q4 2024 net revenues of $13.87 billion, a 9% increase from Q4 2023[67]

Lipper Alpha Insight (https://lipperalpha.refinitiv.com/) is a free daily news and commentary blog, giving financial professionals actionable ideas and insight to make sense of individual security news and events and stay on top of macroeconomic trends. We have a team of expert analysts that are constantly looking at the financial landscape in order to keep you up to date on the latest movements. ...