Goldman Sachs(US:GS)2024-07-15 11:38Financial Performance - Goldman Sachs reported net revenues of $12.73 billion for Q2 2024, a 17% increase year-on-year, but a 10% decrease from Q1 2024[9]. - Net earnings for Q2 2024 were $3.04 billion, with diluted EPS at $8.62, compared to $3.08 in Q2 2023 and $11.58 in Q1 2024[5]. - Total net revenues for the second quarter of 2024 reached $12,731 million, a 17% increase from $10,895 million in the previous quarter[31]. - Net earnings applicable to common shareholders for Q2 2024 were $2,891 million, reflecting a 64% increase from $1,071 million in Q2 2023[39]. - For the first half of 2024, total net revenues reached $26,944 million, a 17% increase from $23,119 million in the same period last year[34]. - Basic earnings per share for Q2 2024 were $8.73, a 183% increase from $3.09 in Q2 2023[37]. Revenue Breakdown - Global Banking & Markets generated net revenues of $8.18 billion in Q2 2024, a 14% increase from Q2 2023, driven by strong performance in equities and investment banking fees of $1.73 billion, up 21% year-on-year[10][8]. - Asset & Wealth Management achieved net revenues of $3.88 billion in Q2 2024, a 27% increase from Q2 2023, with record management fees contributing significantly[14][8]. - Investment banking fees amounted to $1,733 million, down 17% from $2,080 million year-over-year[31]. - Investment banking revenues for the first half of 2024 were $3,818 million, a 27% increase compared to $3,010 million in the same period last year[39]. - Equity underwriting revenues increased by 34% to $793 million compared to $593 million in the previous year[34]. Expenses and Efficiency - Operating expenses remained stable at $8.53 billion for Q2 2024, with an efficiency ratio of 63.8% for the first half of 2024, down from 73.3% in the same period last year[20][21]. - Total operating expenses for Q2 2024 were $8,533 million, slightly down from $8,544 million in Q2 2023[37]. Shareholder Returns - The firm returned $4.43 billion to shareholders in Q2 2024, including $3.50 billion in share repurchases[24]. - The quarterly dividend was increased by 9% to $3.00 per common share, effective Q3 2024[24]. Credit Losses and Tax - Provision for credit losses decreased to $282 million in Q2 2024, down from $615 million in Q2 2023[19]. - The effective income tax rate for the first half of 2024 was 21.6%, up from 21.1% in Q1 2024[23]. Assets and Capital - Common equity tier 1 capital ratio improved to 14.8% as of June 30, 2024, compared to 14.6% as of March 31, 2024[42]. - Total assets as of June 30, 2024, were $1,653 billion, a decrease from $1,698 billion as of March 31, 2024[41]. - The company's tangible common shareholders' equity was reported at $99,575 million for the three months ended June 30, 2024[48]. Assets Under Supervision - Assets under supervision rose by $86 billion to a record $2.93 trillion during the quarter[8]. - Total assets under supervision (AUS) increased to $2,934 million as of June 30, 2024, up from $2,714 million as of March 31, 2024, representing a growth of 8.1%[45]. - Long-term AUS net inflows were $31 million for the three months ended June 30, 2024, compared to $8 million for the previous quarter, indicating a significant increase[45]. - Liquidity products saw net inflows of $40 million for the quarter, a substantial rise from $4 million in the previous quarter[45]. - The ending balance of total AUS was $2,934 million, reflecting a net market appreciation of $15 million during the quarter[45]. - Equity assets rose to $735 million as of June 30, 2024, compared to $627 million as of March 31, 2024, marking a 17.3% increase[45]. - Fixed income assets increased to $1,147 million as of June 30, 2024, up from $1,056 million as of March 31, 2024, showing an 8.6% growth[45]. Risk Management - Average Daily Value at Risk (VaR) for interest rates was $81 million for the three months ended June 30, 2024, down from $86 million in the previous quarter[43].