Investment Rating - The report does not explicitly state the investment rating for Goldman Sachs (GS US) [1][2][3] Core Views - Goldman Sachs reported strong Q4 2024 results, with both revenue and profit exceeding expectations [1][2] - Revenue grew by 22.5% YoY, significantly higher than the Bloomberg consensus estimate of 9.1% [3] - Net profit attributable to common stockholders surged by 110.1% YoY, far surpassing the Bloomberg consensus estimate of 44.7% [3] - Global Banking & Markets (GBM) and Asset & Wealth Management (AWM) segments showed particularly strong performance [1][3] Business Segment Performance Global Banking & Markets (GBM) - GBM revenue increased by 33.4% YoY, driven by strong performance in investment banking, FICC, and equities [3] - Investment banking revenue was boosted by significant growth in equity and debt underwriting [3] - FICC and equities businesses benefited from increased net financing revenue [3] Asset & Wealth Management (AWM) - AWM revenue grew by 7.6% YoY, outperforming the Bloomberg consensus estimate of -6.5% [3] - Private banking and loan net revenue were positively impacted by higher deposit balances [3] Platform Solutions - Platform Solutions revenue increased by 15.9% YoY, exceeding the Bloomberg consensus estimate of 8.2% [3] Financial Metrics - Net interest income surged by 75.1% YoY, significantly higher than the Bloomberg consensus estimate of 49.0% [3] - Non-interest income grew by 15.5% YoY, surpassing the Bloomberg consensus estimate of 6.9% [3] - Total provision for credit losses was $351 million, a 39.2% YoY decrease, better than the Bloomberg consensus estimate of $384 million [3] - ROE increased by 7.5 percentage points YoY to 14.6%, higher than the Bloomberg consensus estimate of 9.9% [3] - ROTCE rose by 7.9 percentage points YoY to 15.5%, exceeding the Bloomberg consensus estimate of 10.5% [3] - CET1 ratio improved by 0.5 percentage points YoY to 15.0%, above the Bloomberg consensus estimate of 14.7% [3] - Cost-to-income ratio decreased by 11.5 percentage points YoY to 63.1%, better than the Bloomberg consensus estimate of 67.0% [3] Loan and Deposit Growth - Total loans grew by 7.1% YoY, outperforming the Bloomberg consensus estimate of 5.8% [3] - Total deposits increased by 1.2% YoY, below the Bloomberg consensus estimate of 4.1% [3] Dividend - The dividend per share (DPS) was $3.00, in line with the Bloomberg consensus estimate [3]

January 15, 2025 Our culture and leading client franchise are the foundation of our strategy Full Year and Fourth Quarter 2024 Earnings Results Presentation STRATEGIC Client Service O B J E C T I V E S Harness One GS to Serve Our Clients with Excellence Partnership Run World-Class, Differentiated, Durable Businesses Integrity Invest to Operate at Scale Excellence 1 World-class and interconnected franchises positioned to deliver mid-teens returns Leading Global Active #1 M&A Advisor1 Asset Manager3 One Globa ...

Financial Data and Key Metrics - The company reported strong performance in Q4 2024, reflecting its ability to serve clients effectively in a dynamic environment [5] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - The company continues to focus on serving clients effectively, indicating a client-centric strategy in a competitive environment [5] Management Commentary on Operating Environment and Future Outlook - The CEO expressed satisfaction with the company's performance, highlighting its ability to navigate a dynamic environment [5] - The CEO also acknowledged the devastating fires in Los Angeles, showing concern for the community, including colleagues and clients [4] Other Important Information - The earnings presentation and related materials are available on the company's Investor Relations website, including forward-looking statements and non-GAAP measures [2] - The conference call is copyrighted material and cannot be duplicated or rebroadcast without consent [2] Q&A Session Summary - No Q&A session details were provided in the content

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 ...