Goldman Sachs Earnings Rise Driven by Investment Banking, More. Shares Rise in Early Trading

Goldman Sachs (NYSE: GS) reported net revenues of $53.51 billion and net earnings of $14.28 billion for the year ended December 31, 2024 pleasing Wall Street analysts.  Earnings per share were reported at $40.54 for 2024 and was $11.95 for the fourth quarter of 2024

David Solomon, Chairman and CEO of Goldman Sachs, said they were pleased with the quarter results and the entire year, stating they have “met or exceeded almost all of the targets we set in our strategy to grow the firm five years ago.”

“With an improving operating backdrop and growing CEO confidence, we are harnessing the power of One Goldman Sachs to continue to serve our clients with excellence and create further value for our shareholders.”

The growing confidence is probably due to the incoming Trump administration which is expected to be more friendly to businesses both large and small.

Goldman noted their “simplified strategy” – perhaps reflecting their decision to move away from consumer Fintech initiatives.

Net revenues for the year were 16% higher compared to 2023. The quarter’s net revenues were 9% higher compared to Q4 2023.

The increase in revenue during the quarter was primarily driven by “significant growth in Global Banking & Markets.”

Global Banking & Markets include investment banking, FICC, and equities.

For the full year, investment banking fees were $7.73 billion, 24% higher than in 2023; Net revenues in FICC were $13.20 billion, 9% higher than in 2023. Net revenues in Equities were $13.43 billion, 16% higher than 2023.

For the quarter, investment banking fees were $2.05 billion, 24% higher than the fourth quarter of 2023; Net revenues in FICC were $2.74 billion, 35% higher than the fourth quarter of 2023; Net revenues in Equities were $3.45 billion, 32% higher than the fourth quarter of 2023

Asset and Wealth Management also performed well, with revenue for the year of $16.14 billion, which is 16% higher than in 2023.

Net revenues in Asset & Wealth Management were $4.72 billion for the fourth quarter of 2024, 8% higher than the fourth quarter of 2023 and 26% higher than the third quarter of 2024.

Platform Solutions were 2% higher than 2023 at$2.43 billion for the year and up 16% for the quarter at $669 million. This was a significant rise of 71% when compared to Q3 2024.

Goldman will hold its earnings call this morning at 9:30 AM ET. The earnings presentation is available here.

 

 

 



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