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]

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Earnings Reports - JPMorgan Chase, Wells Fargo, and Citigroup are reporting results on Wednesday, while Bank of America and Morgan Stanley are due to report on Thursday [1] - Goldman Sachs is scheduled to report fourth-quarter earnings before the opening bell on Wednesday [2] Goldman Sachs Performance - Goldman Sachs shares jumped nearly 50% last year, outperforming its big bank rivals, driven by the Federal Reserve's easing cycle and the November election of Donald Trump, which boosted expectations for mergers and stock deals [3] - The bank's fourth-quarter results are expected to show a double-digit percentage rise in investment banking and trading fees, with investment banking revenue for the industry jumping 29% in the quarter, fueled by rising advisory and equity capital markets activity [4] - The buoyant stock market late last year is expected to boost results within Goldman Sachs' asset and wealth management division, which CEO David Solomon has called the growth engine of the firm [5] Strategic Shift - Goldman Sachs has shifted away from an ill-fated foray into consumer finance, a strategic pivot that has led to a different setup compared to a year earlier when the company faced mounting losses and pressure from internal stakeholders [6] Financial Metrics - Goldman Sachs' earnings are expected to be $8 22 per share, with revenue of $12 39 billion [7] - Trading revenue includes $2 45 billion from Fixed Income and $3 billion from Equities, while Investing Banking Revenue is expected to be $2 01 billion [7]

The market expects Goldman Sachs (GS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they mis ...

Goldman Sachs (GS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a chang ...