Goldman Sachs(US:GS)2025-10-31 20:17Financial Performance - Net earnings for Q3 2025 reached $4,098 million, a 37.2% increase from $2,990 million in Q3 2024[8] - Comprehensive income for the nine months ended September 2025 was $12,785 million, compared to $10,580 million for the same period in 2024, reflecting a 21.0% increase[8] - The net earnings for the nine months ended September 2025 were $12,559 million, a 23.5% increase from $10,165 million in the same period of 2024[8] - Other comprehensive income for Q3 2025 was a loss of $491 million, compared to a gain of $397 million in Q3 2024[8] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $1,807,982 million, up from $1,675,972 million at the end of 2024, indicating a growth of 7.9%[10] - Deposits increased to $490,249 million as of September 2025, compared to $433,013 million in December 2024, representing a rise of 13.2%[10] - Trading assets at fair value were $652,585 million, an increase from $570,555 million in December 2024, marking a growth of 14.4%[10] - Shareholders' equity totaled $124,402 million as of September 2025, up from $121,996 million in December 2024, reflecting a 3.3% increase[10] Cash Flow - Net cash used for operating activities was $(28,878) million, a decrease of 51.9% from $(59,978) million in the previous year[17] - Cash and cash equivalents at the end of September 2025 were $169,577 million, compared to $154,689 million at the end of September 2024, reflecting a year-over-year increase of 9.3%[17] - Net cash used for investing activities was $(39,194) million, a decrease of 7.8% from $(42,509) million in 2024[17] - Net cash provided by financing activities was $49,345 million, significantly higher than $15,140 million in the previous year[17] Stock Repurchase and Equity - The company repurchased $2,000 million in stock during Q3 2025, contributing to a total repurchase of $9,360 million for the nine months ended September 2025[13] - The preferred stock balance remained stable at $15,153 million as of September 2025, unchanged from the previous quarter[13] Revenue Sources - Revenues from contracts with clients accounted for approximately 55% of total non-interest revenues for the three months ended September 2025, compared to 50% for the same period in 2024[38] - Investment banking revenues included approximately 85% of total revenues from contracts with clients, while investment management revenues contributed approximately 95%[38] Financial Assets and Liabilities Valuation - The total level 1 financial assets as of September 2025 amounted to $516,317 million, an increase from $494,481 million in June 2025 and $436,298 million in December 2024[82] - Total level 2 financial assets were $473,641 million as of September 2025, down from $501,293 million in June 2025 but up from $497,514 million in December 2024[82] - Total level 3 financial assets increased to $21,781 million in September 2025, compared to $21,117 million in June 2025 and $20,358 million in December 2024, primarily due to an increase in level 3 investments[83] - Total financial assets at fair value were $965,610 million as of September 2025, slightly down from $967,846 million in June 2025 but up from $907,669 million in December 2024[82] Derivatives and Risk Management - Significant inputs for the valuation of derivatives include market prices, yield curves, and credit curves, which are essential for determining fair value[106] - Level 3 derivatives are valued using unobservable inputs, including illiquid credit spreads and specific recovery rates[107] - The firm employs valuation adjustments to account for credit and funding risks inherent in derivative portfolios[110] Level 3 Financial Instruments - The ending balance of Level 3 trading cash instrument liabilities was $(241) million as of September 2025, compared to $(106) million in September 2024[127] - The net unrealized gains on Level 3 trading cash instrument assets for the nine months ended September 2025 were $30 million, reflecting a total of $101 million in net realized and unrealized gains[133] - The total corporate debt securities as of September 2025 were valued at $7,208 million, with $4,539 million classified under level 3[174] Corporate Loans and Real Estate - The total amount of Level 3 real estate loans was $102 million as of September 2025, with a yield range of 6.1% to 10.9%[202] - The recovery rate for Level 3 corporate loans ranged from 32.3% to 95.2% as of September 2025, with an average recovery rate of 58.2%[202]