Goldman Sachs(US:GS)2025-08-01 20:40Financial Performance - Net earnings for Q2 2025 reached $3,723 million, a 22.3% increase from $3,043 million in Q2 2024[8] - Comprehensive income for the first half of 2025 was $9,178 million, compared to $7,193 million in the same period of 2024, reflecting a 27.6% growth[8] - Net earnings for the six months ended June 2025 were $8,461 million, an increase of 18% compared to $7,175 million in the same period of 2024[17] - The total dividends declared on common stock and share-based awards for the first half of 2025 were $1,933 million, compared to $1,858 million in the same period of 2024, an increase of 4.0%[13] Assets and Liabilities - Total assets as of June 30, 2025, amounted to $1,785,009 million, up from $1,675,972 million at the end of 2024, indicating a 6.5% increase[10] - Total liabilities were $1,660,913 million as of June 2025, an increase from $1,641,881 million in March 2025 and $1,553,976 million in December 2024[78] - Total financial assets at fair value reached $967,846 million as of June 2025, compared to $954,892 million in March 2025 and $907,669 million in December 2024[78] - Total financial liabilities at fair value were $752,738 million as of June 2025, compared to $743,785 million in March 2025 and $699,661 million in December 2024[78] Cash Flow - Net cash used for operating activities was $(31,558) million, compared to $(21,918) million in the prior year, indicating a significant increase in cash outflow[17] - Net cash used for investing activities totaled $(34,081) million, a substantial increase from $(13,223) million in the same period last year[17] - Net cash provided by financing activities was $29,564 million, compared to $4,800 million in the previous year, reflecting a strong financing position[17] - The ending balance of cash and cash equivalents decreased to $152,967 million from $206,326 million year-over-year[17] Loans and Deposits - The company reported a net increase in loans to $217,189 million, up from $196,200 million at the end of 2024, marking an increase of 10.7%[10] - Deposits increased to $466,143 million as of June 30, 2025, from $433,013 million at the end of 2024, a growth of 7.6%[10] Investments and Securities - As of June 2025, total investments amounted to $128,742 million, an increase from $104,742 million as of December 2024, representing a growth of approximately 22.9%[174] - The total fair value of loans held for investment as of June 2025 was $5.616 billion, with $681 million classified as Level 3[201] - The ending balance of Level 3 investments was $14,604 million as of June 2025, consistent with the balance of $14,604 million in December 2024[178] Financial Instruments and Valuation - Total level 1 financial assets amounted to $494,481 million, an increase from $453,241 million in March 2025 and $436,298 million in December 2024[78] - Level 3 financial assets represented 1.2% of total assets as of June 2025, consistent with the previous quarters[78] - The firm measures certain financial assets and liabilities as a portfolio based on net exposure to market and/or credit risks[72] - Valuation adjustments are essential for determining the fair value of derivative portfolios, incorporating bid/offer spreads, liquidity costs, and credit and funding valuation adjustments[107] Performance Obligations and Fees - Future net revenues associated with remaining performance obligations related to management fees are expected to average less than $300 million annually through 2033[50] - The firm recognized management fees for mutual funds as a percentage of daily NAV, received monthly, and for hedge funds as a percentage of month-end NAV, generally received quarterly[43] - Incentive fees are generally based on investment performance over a twelve-month period or the life of a fund, with recognition occurring when it is probable that a significant reversal of such fees will not occur[45][46] Changes in Financial Assets and Liabilities - The firm experienced a net decrease in cash and cash equivalents of $(29,125) million compared to $(35,251) million in the prior year[17] - The firm segregated cash for regulatory purposes amounting to $13.52 billion as of June 2025, down from $14.84 billion as of December 2024[53] - The firm’s remaining performance obligations are primarily related to financial advisory assignments and certain investment management activities, with future revenues being uncertain due to market fluctuations[49] Level 3 Financial Instruments - The average yield for Level 3 corporate loans as of June 2025 was 20.6%, with a recovery rate of 65.2%[203] - The net unrealized gains on Level 3 investments for the six months ended June 2025 totaled $446 million, including $159 million of net realized gains and $287 million of net unrealized gains[188] - The ending balance of Level 3 loans was $681 million as of June 2025, unchanged from the previous period[205]