Goldman Sachs(US:GS) ZACKS·2025-01-15 17:01Earnings 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]