Key PointsThe banking giant beat analysts' expectations on both headline numbers. It remains one of the best-performing bank stocks, with plenty of tailwinds in 2024 to be excited about. A breakout is imminent if investor sentiment remains bullish on the industry as a whole. 5 stocks we like better than CitigroupHaving delivered a miss in last October's Q3 report, investors would have been expecting a strong bounce back from Goldman Sachs Group, Inc. NYSE: GS ahead of this morning's Q1 release. The banking ...

Financial Data and Key Metrics - Net revenues for 2023 were $46.3 billion, with net earnings of $8.5 billion and earnings per share of $22.87 [17] - Global Banking & Markets generated revenues of $30 billion for the year, down 8% YoY, with FICC revenues declining 24% in Q4 [17][18] - Asset & Wealth Management revenues rose 4% YoY to $13.9 billion, driven by record management and other fees, as well as private banking and lending revenues [19] - Total firm-wide assets under supervision reached a record $2.8 trillion, with 24 consecutive quarters of long-term fee-based net inflows [20] Business Line Performance - Global Banking & Markets maintained its number one position in announced and completed M&A, equity and equity-related underwriting, and ranked second in high yield debt underwriting [18] - FICC and equities financing revenues grew at a 15% CAGR since 2019, reaching a record $8 billion [10] - Asset & Wealth Management achieved a 12% CAGR in management and other fees, as well as private banking and lending revenues since 2019 [11] - Alternative assets under supervision totaled $295 billion, with $571 million in management and other fees for Q4 and $2.1 billion for the year [21] Market Performance - The US economy showed resilience in 2023, with potential rate cuts in 2024 renewing optimism for a soft landing [3] - Capital markets activity improved in the second half of 2023, with a significant increase in advisory backlog in Q4 [18][31] - Europe saw increased strategic dialogue, while Asia, particularly China, remained slower in M&A and capital markets activity [78] Strategic Direction and Industry Competition - The company narrowed its strategic focus, exiting the Marcus lending business, selling the Personal Financial Management business, and transitioning the GreenSky loan portfolio [7] - The firm aims to be the world's most exceptional financial institution, focusing on client service, partnership, integrity, and excellence [4] - Goldman Sachs is a leader in global investment banking and asset and wealth management, with a strong position in FICC and equities [5][6] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the potential for rate cuts in 2024 and a resurgence in strategic activity [3] - The firm is well-positioned to capture upside in different market environments due to its diversified franchise [14] - The company expects to achieve mid-teens returns through the cycle and strong total shareholder return [16] Other Important Information - The firm achieved $600 million in run rate payroll efficiencies, allowing continued investment in talent [24] - The common equity tier 1 ratio was 14.5% at the end of Q4, 150 basis points above the current capital requirement [25] - The company returned $1.9 billion to shareholders in Q4, including $1 billion in stock repurchases and $922 million in dividends [26] Q&A Session Summary Question: Investment Banking and Trading Interplay - The company expects to grow both investment banking and trading revenues, with FICC potentially being countercyclical during disruptions [52][53] Question: Commercial Real Estate (CRE) Exposure - The company has made significant progress in reducing CRE exposure, with office exposures marked at roughly 50% [55] Question: Private Credit Strategy - Goldman Sachs plans to raise $40 billion to $50 billion in alternatives in 2024, with a focus on private credit, leveraging its banking franchise [58][59] Question: Basel III Endgame Impact - The company is highly engaged with regulators and stakeholders, expressing concerns about the proposed Basel III rules and their potential impact on capital allocation [61] Question: Efficiency and Expense Management - The firm is focused on achieving a 60% efficiency ratio, with non-compensation expenses expected to be managed carefully in 2024 [64][65] Question: Capital Allocation and Buybacks - The company prioritizes client deployment opportunities and sustainable dividend growth, with a conservative posture on buybacks due to Basel III uncertainty [70][71] Question: Compensation Leverage - The firm remains committed to pay-for-performance, with compensation leverage dependent on business mix and performance in 2024 [83]

The Goldman Sachs Group, Inc.’s (GS) fourth-quarter 2023 earnings per share of $5.48 surpassed the Zacks Consensus Estimate of $3.47. Also, the bottom line increased 65% from the year-earlier quarter.Shares increased 1.4% in the pre-market trading on an earnings beat. Investors seem to be bullish on the stock because of higher revenues in the Asset & Wealth Management division.  Goldman’s results have been supported by strength in the consumer banking business, while Fixed Income, Currency and Commodities C ...

For Goldman Sachs, the narrowing of focus continues.And in the latest earnings report, released Tuesday (Jan. 16), the Wall Street firm detailed its progress toward jettisoning some of its credit card operations, selling GreenSky and moving away from its once-lofty Main Street banking ambitions.Supplemental materials released in tandem with earnings showed its provision for credit losses in the most recent quarter at $399 million in the Consumer Platforms division, which houses the card operations and trans ...

Pre-market futures are down slightly to start a new trading session in this holiday-shortened week. The Dow is currently down -140 points, the S&P 500 is -20 and the Nasdaq -70 points. These indices are now back to where they were a month ago, which was half-way through a robust bullish period at the end of the year where investors saw an opportunity for interest rates to come down measurably in 2024. The small-cap Russell 2000 is the one index lagging in the new year, -4%, after leading indices during the ...

Goldman Sachs reported its lowest annual profit since 2019 following losses from a failed expansion into consumer banking — combined with an economic slowdown that hit its primary businesses last year, the Wall Street giant said Tuesday.The drag on its bottom line came despite the bank posting fourth-quarter earnings that beat analyst expectations, Goldman CEO David Solomon told analysts. The bank reported net income of $8.5 billion for 2023 — a 24% drop from 2022 and the lowest level the bank has seen in ...

Pre-market futures are down slightly to start a new trading session in this holiday-shortened week. The Dow is currently down -140 points, the S&P 500 is -20 and the Nasdaq -70 points. These indices are now back to where they were a month ago, which was half-way through a robust bullish period at the end of the year where investors saw an opportunity for interest rates to come down measurably in 2024. The small-cap Russell 2000 is the one index lagging in the new year, -4%, after leading indices during the ...

By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time.Access your favorite topics in a personalized feed while you're on the go. download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewWall Street is increasingly concerned about a slowdown in economic growth and a potential recession in 2024, but not Goldman Sachs.The investment bank's top economists said in a note over the week ...

Goldman Sachs (GS) reported $11.32 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 6.8%. EPS of $5.48 for the same period compares to $3.32 a year ago.The reported revenue represents a surprise of +5.71% over the Zacks Consensus Estimate of $10.71 billion. With the consensus EPS estimate being $3.47, the EPS surprise was +57.93%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...

Key TakeawaysGoldman Sachs reported better-than-expected revenue and earnings in the fourth quarter.Revenue of $11.32 billion was 6.8% higher compared to the year-ago quarter while diluted earnings per share rose 65% to $5.48.Strategic objectives and special assessment from the FDIC impacted earnings to $283 million and EPS by $0.83 for the quarter.Goldman Sachs (GS) fourth-quarter results trounced analyst expectations on both earnings and revenue. The bank's strong performance was driven by a 23% year-over ...