Goldman Sachs (NYSE:GS) has released Q2 2024 results reporting earnings per share (EPS) of $8.62 on net earnings of $3.04 billion in a solid earnings beat. Goldman CEO and Chairman David Solomon issued the following statement on the bank’s performance:
“We are pleased with our solid second-quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both Global Banking & Markets and Asset & Wealth Management. Our One Goldman Sachs operating approach is allowing us to bring the whole firm to our clients, deepening our relationships and serving them in an improving, but complex environment.”
Not that long ago, there were rumblings that Solomon was on shaky ground due to the bank’s poor performance. Today, the chatter is gone as Goldman delivers solid results.
Net revenues were $12.73 billion for the second quarter of 2024, or 17% higher than the second quarter of 2023 and 10% lower than the first quarter of 2024. The increase compared with the second quarter of 2023 reflected higher net revenues in Global Banking & Markets and Asset & Wealth Management.
Goldman said that Global Banking & Markets generated quarterly net revenues of $8.18 billion, driven by strong equity performance. This was said to be the second-highest quarterly net revenues in equities financing and in Fixed Income, Currency, and Commodities (FICC) financing.
Asset & Wealth Management generated quarterly net revenues of $3.88 billion.
Assets under supervision increased by $86 billion to a record $2.93 trillion.
Investment Banking fees increased by 21% versus the same quarter last year to $1.73 billion.
Net revenues in FICC were $3.18 billion, a 17% increase versus the quarter in 2023.
There was a decrease in private banking and lending net revenues, which was the result of the sale of the Marcus loans portfolio in 2023. There was also a gain of approximately $100 million related to the sale of substantially all of the remaining Marcus loans portfolio in the second quarter of 2023. Marcus was once the vaunted digital bank brand of Goldman – an initiative that continues to diminish in relevance.
Net revenues for Platform Solutions, a Fintech as a service segment, increased by 2% to $699 million when compared to Q2 of 2024. It declined by 4% compared to Q1 of 2024.
Consumer platform revenues were slightly higher versus Q2 2023 due to higher credit card balances and deposit balances. This was said to be offset by the sale of GreenSky – the online lender.
Shares are up by around 1% in pre-market trading. The earnings call is scheduled for 930AM ET today.
