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Exhibit 99.1
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Second Quarter 2024
Earnings Results
Media Relations: Tony Fratto 212-902-5400 Investor Relations: Jehan Ilahi 212-902-0300
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The Goldman Sachs Group, Inc. 200 West Street | New York, NY 10282
|
Second Quarter 2024 Earnings Results
Goldman Sachs Reports Second Quarter Earnings Per Common Share of $8.62 and Increases the Quarterly Dividend to $3.00 Per Common Share in the Third Quarter
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“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.” |
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- David Solomon, Chairman and Chief Executive Officer
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Financial Summary
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Net Revenues
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Net Earnings
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EPS
| ||||||||||
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2Q24 $12.73 billion
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2Q24 $3.04 billion
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2Q24 $8.62
| ||||||||||
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2Q24 YTD $26.94 billion
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2Q24 YTD $7.18 billion
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2Q24 YTD $20.21
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Annualized ROE1
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Annualized ROTE1
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Book Value Per Share
| ||||||||||
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2Q24 10.9%
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2Q24 11.6%
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2Q24 $327.13
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2Q24 YTD 12.8%
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2Q24 YTD 13.8%
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YTD Growth 4.3%
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NEW YORK, July 15, 2024 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $12.73 billion and net earnings of $3.04 billion for the second quarter ended June 30, 2024. Net revenues were $26.94 billion and net earnings were $7.18 billion for the first half of 2024.
Diluted earnings per common share (EPS) was $8.62 for the second quarter of 2024 compared with $3.08 for the second quarter of 2023 and $11.58 for the first quarter of 2024, and was $20.21 for the first half of 2024 compared with $11.91 for the first half of 2023.
Annualized return on average common shareholders’ equity (ROE)1 was 10.9% for the second quarter of 2024 and 12.8% for the first half of 2024. Annualized return on average tangible common shareholders’ equity (ROTE)1 was 11.6% for the second quarter of 2024 and 13.8% for the first half of 2024.
1
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
Quarterly Highlights
| ◾ | Global Banking & Markets generated quarterly net revenues of $8.18 billion, driven by strong performance in Equities. Second highest quarterly net revenues in Equities financing and in Fixed Income, Currency and Commodities (FICC) financing. |
| ◾ | The firm ranked #1 in worldwide announced and completed mergers and acquisitions for the year-to-date.2 |
| ◾ | Asset & Wealth Management generated quarterly net revenues of $3.88 billion, including record quarterly Management and other fees. |
| ◾ | Assets under supervision3 increased $86 billion during the quarter to a record $2.93 trillion. |
| ◾ | Book value per common share increased by 1.9% during the quarter to $327.13. |
| ◾ | On July 12, 2024, the Board of Directors of The Goldman Sachs Group, Inc. approved a 9% increase in the quarterly dividend to $3.00 per common share beginning in the third quarter of 2024. |
Net Revenues
| Net revenues were $12.73 billion for the second quarter of 2024, 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. |
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Net Revenues
| ||
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$12.73 billion
| ||||
2
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
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Global Banking & Markets |
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| Net revenues in Global Banking & Markets were $8.18 billion for the second quarter of 2024, 14% higher than the second quarter of 2023 and 16% lower than the first quarter of 2024.
Investment banking fees were $1.73 billion, 21% higher than the second quarter of 2023, reflecting significantly higher net revenues in Debt underwriting, primarily driven by leveraged finance activity, higher net revenues in Equity underwriting, primarily from convertible and initial public offerings, and slightly higher net revenues in Advisory. The firm’s Investment banking fees backlog3 increased significantly compared with the end of the first quarter of 2024 and increased slightly compared with the end of 2023.
Net revenues in FICC were $3.18 billion, 17% higher than the second quarter of 2023, reflecting higher net revenues in FICC intermediation (due to significantly higher net revenues in interest rate products and currencies and higher net revenues in mortgages, partially offset by significantly lower net revenues in commodities and lower net revenues in credit products) and significantly higher net revenues in FICC financing (driven by mortgages and structured lending).
Net revenues in Equities were $3.17 billion, 7% higher than the second quarter of 2023, reflecting higher net revenues in Equities intermediation, driven by significantly higher net revenues in derivatives, partially offset by lower net revenues in cash products. Net revenues in Equities financing were slightly lower, reflecting significantly lower net revenues from portfolio financing, largely offset by significantly higher net revenues from prime financing.
Net revenues in Other were $102 million for the second quarter of 2024, compared with $81 million for the second quarter of 2023. |
Global Banking & Markets
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$8.18 billion
| ||||
| Advisory |
$ 688 million | |||
| Equity underwriting |
$ 423 million | |||
| Debt underwriting |
$ 622 million | |||
| Investment banking fees |
$ 1.73 billion | |||
|
FICC intermediation |
$ 2.33 billion | |||
| FICC financing |
$ 850 million | |||
| FICC |
$ 3.18 billion | |||
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Equities intermediation |
$ 1.79 billion | |||
| Equities financing |
$ 1.38 billion | |||
| Equities |
$ 3.17 billion | |||
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Other |
$ 102 million | |||
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Asset & Wealth Management |
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| Net revenues in Asset & Wealth Management were $3.88 billion for the second quarter of 2024, 27% higher than the second quarter of 2023 and 2% higher than the first quarter of 2024. The increase compared with the second quarter of 2023 reflected net gains in Equity investments compared with net losses in the prior year period, higher Management and other fees and higher net revenues in Debt investments, partially offset by lower net revenues in Private banking and lending.
The increase in Equity investments net revenues primarily reflected net gains from real estate investments compared with significant net losses in the prior year period. The increase in Management and other fees primarily reflected the impact of higher average assets under supervision. Debt investments net revenues were higher, reflecting significantly lower net losses from real estate investments, partially offset by significantly lower net interest income due to a reduction in the Debt investments balance sheet. The decrease in Private banking and lending net revenues reflected the impact of the sale of the Marcus loans portfolio in 2023 (including 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). |
Asset & Wealth Management
| |||
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$3.88 billion
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Management and other fees |
$ 2.54 billion | |||
| Incentive fees |
$ 46 million | |||
| Private banking and lending |
$ 707 million | |||
| Equity investments |
$ 292 million | |||
| Debt investments |
$ 297 million | |||
3
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
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Platform Solutions |
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| Net revenues in Platform Solutions were $669 million for the second quarter of 2024, 2% higher than the second quarter of 2023 and 4% lower than the first quarter of 2024.
Consumer platforms net revenues were slightly higher compared with the second quarter of 2023, reflecting higher average credit card balances and higher average deposit balances, largely offset by the impact of the sale of GreenSky in the first quarter of 2024. Transaction banking and other net revenues were lower, reflecting lower average deposit balances. |
Platform Solutions
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$669 million
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Consumer platforms |
$599 million | |||||
| Transaction banking and other
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$ 70 million
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Provision for Credit Losses
| Provision for credit losses was $282 million for the second quarter of 2024, compared with $615 million for the second quarter of 2023 and $318 million for the first quarter of 2024. Provisions for the second quarter of 2024 reflected net provisions related to the credit card portfolio (driven by net charge-offs). Provisions for the second quarter of 2023 reflected net provisions related to the credit card and point-of-sale loan portfolios (driven by net charge-offs and growth) and wholesale loans (driven by impairments), partially offset by a reserve reduction related to the repayment of a term deposit with First Republic Bank. |
Provision for Credit Losses | |||||
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$282 million
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Operating Expenses
| Operating expenses were $8.53 billion for the second quarter of 2024, essentially unchanged compared with both the second quarter of 2023 and the first quarter of 2024. The firm’s efficiency ratio3 was 63.8% for the first half of 2024, compared with 73.3% for the first half of 2023.
Operating expenses, compared with the second quarter of 2023, reflected decreases driven by an impairment of goodwill related to Consumer platforms in the prior year period and significantly lower impairments related to consolidated real estate investments (both in depreciation and amortization), offset by increases from higher compensation and benefits expenses (reflecting improved operating performance) and higher transaction based expenses.
Net provisions for litigation and regulatory proceedings were $104 million for the second quarter of 2024 compared with $19 million for the second quarter of 2023.
Headcount was essentially unchanged compared with the end of the first quarter of 2024. |
Operating Expenses | |||||
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$8.53 billion
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YTD Efficiency Ratio | ||||||
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63.8%
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4
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
Provision for Taxes
| The effective income tax rate for the first half of 2024 was 21.6%, up from 21.1% for the first quarter of 2024, primarily due to a decrease in the impact of permanent tax benefits. |
YTD Effective Tax Rate
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21.6%
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Other Matters
| ◾ On July 12, 2024, the Board of Directors of The Goldman Sachs Group, Inc. increased the quarterly dividend to $3.00 per common share from $2.75 per common share. The dividend will be paid on September 27, 2024 to common shareholders of record on August 30, 2024.
◾ During the quarter, the firm returned $4.43 billion of capital to common shareholders, including $3.50 billion of common share repurchases (8.0 million shares at an average cost of $437.57) and $929 million of common stock dividends.3
◾ Global core liquid assets3 averaged $424 billion for the second quarter of 2024, compared with an average of $423 billion for the first quarter of 2024. |
Declared Quarterly Dividend Per Common Share
| |||
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$3.00
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Common Share Repurchases
| ||||
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8.0 million shares for $3.50 billion
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Average GCLA
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$424 billion
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5
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
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Cautionary Note Regarding Forward-Looking Statements |
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This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the firm’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the firm’s control. It is possible that the firm’s actual results, financial condition and liquidity may differ, possibly materially, from the anticipated results, financial condition and liquidity in these forward-looking statements. For information about some of the risks and important factors that could affect the firm’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2023.
Information regarding the firm’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio, balance sheet data, global core liquid assets and VaR consists of preliminary estimates. These estimates are forward-looking statements and are subject to change, possibly materially, as the firm completes its financial statements.
Statements about the firm’s Investment banking fees backlog and future results also may constitute forward-looking statements. Such statements are subject to the risk that transactions may be modified or may not be completed at all, and related net revenues may not be realized or may be materially less than expected. Important factors that could have such a result include, for underwriting transactions, a decline or weakness in general economic conditions, an outbreak or worsening of hostilities, including those in Ukraine and the Middle East, volatility in the securities markets or an adverse development with respect to the issuer of the securities and, for financial advisory transactions, a decline in the securities markets, an inability to obtain adequate financing, an adverse development with respect to a party to the transaction or a failure to obtain a required regulatory approval. For information about other important factors that could adversely affect the firm’s Investment banking fees, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2023.
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Conference Call |
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A conference call to discuss the firm’s financial results, outlook and related matters will be held at 9:30 am (ET). The call will be open to the public. Members of the public who would like to listen to the conference call should dial 1-800-289-0459 (in the U.S.) or 1-323-794-2095 (outside the U.S.) passcode number 7042022. The number should be dialed at least 10 minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the firm’s website, www.goldmansachs.com/investor-relations. There is no charge to access the call. For those unable to listen to the live broadcast, a replay will be available on the firm’s website beginning approximately three hours after the event. Please direct any questions regarding obtaining access to the conference call to Goldman Sachs Investor Relations, via e-mail, at gs-investor-relations@gs.com.
6
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
| THREE MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||||
| JUNE 30, 2024 |
MARCH 31, 2024 |
JUNE 30, 2023 |
MARCH 31, 2024 |
JUNE 30, 2023 |
||||||||||||||||||
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GLOBAL BANKING & MARKETS |
||||||||||||||||||||||
|
Advisory
|
|
$ 688
|
|
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$ 1,011
|
|
|
$ 645
|
|
|
(32) %
|
|
|
7 %
|
| |||||||
| Equity underwriting
|
|
423
|
|
|
370
|
|
|
338
|
|
|
14
|
|
|
25
|
| |||||||
| Debt underwriting
|
|
622
|
|
|
699
|
|
|
448
|
|
|
(11)
|
|
|
39
|
| |||||||
| Investment banking fees
|
|
1,733
|
|
|
2,080
|
|
|
1,431
|
|
|
(17)
|
|
|
21
|
| |||||||
| FICC intermediation
|
|
2,330
|
|
|
3,471
|
|
|
2,089
|
|
|
(33)
|
|
|
12
|
| |||||||
| FICC financing
|
|
850
|
|
|
852
|
|
|
622
|
|
|
–
|
|
|
37
|
| |||||||
| FICC
|
|
3,180
|
|
|
4,323
|
|
|
2,711
|
|
|
(26)
|
|
|
17
|
| |||||||
| Equities intermediation
|
|
1,786
|
|
|
1,989
|
|
|
1,533
|
|
|
(10)
|
|
|
17
|
| |||||||
| Equities financing
|
|
1,383
|
|
|
1,322
|
|
|
1,433
|
|
|
5
|
|
|
(3)
|
| |||||||
| Equities
|
|
3,169
|
|
|
3,311
|
|
|
2,966
|
|
|
(4)
|
|
|
7
|
| |||||||
| Other
|
|
102
|
|
|
12
|
|
|
81
|
|
|
750
|
|
|
26
|
| |||||||
|
Net revenues |
|
8,184
|
|
|
9,726 |
|
|
7,189 |
|
|
(16) |
|
|
14 |
| |||||||
|
ASSET & WEALTH MANAGEMENT |
||||||||||||||||||||||
|
Management and other fees
|
|
2,536
|
|
|
2,452
|
|
|
2,354
|
|
|
3
|
|
|
8
|
| |||||||
| Incentive fees
|
|
46
|
|
|
88
|
|
|
25
|
|
|
(48)
|
|
|
84
|
| |||||||
| Private banking and lending
|
|
707
|
|
|
682
|
|
|
874
|
|
|
4
|
|
|
(19)
|
| |||||||
| Equity investments
|
|
292
|
|
|
222
|
|
|
(403)
|
|
|
32
|
|
|
N.M.
|
| |||||||
| Debt investments
|
|
297
|
|
|
345
|
|
|
197
|
|
|
(14)
|
|
|
51
|
| |||||||
|
Net revenues |
|
3,878 |
|
|
3,789 |
|
|
3,047 |
|
|
2 |
|
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27 |
| |||||||
|
PLATFORM SOLUTIONS |
||||||||||||||||||||||
|
Consumer platforms
|
|
599
|
|
|
618
|
|
|
577
|
|
|
(3)
|
|
|
4
|
| |||||||
| Transaction banking and other
|
|
70
|
|
|
80
|
|
|
82
|
|
|
(13)
|
|
|
(15)
|
| |||||||
|
Net revenues |
|
669 |
|
|
698 |
|
|
659 |
|
|
(4) |
|
|
2 |
| |||||||
|
Total net revenues
|
|
$ 12,731
|
|
|
$ 14,213
|
|
|
$ 10,895
|
|
|
(10) |
|
|
17 |
| |||||||
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Geographic Net Revenues (unaudited)3 |
||||||||||||||||||||||
| $ in millions | ||||||||||||||||||||||
| THREE MONTHS ENDED | ||||||||||||||||||||||
| JUNE 30, 2024 |
MARCH 31, 2024 |
JUNE 30, 2023 |
||||||||||||||||||||
|
Americas
|
|
$ 8,125
|
|
|
$ 9,181
|
|
|
$ 6,801
|
|
|||||||||||||
| EMEA
|
|
2,931
|
|
|
3,470
|
|
|
2,868
|
|
|||||||||||||
| Asia
|
|
1,675
|
|
|
1,562
|
|
|
1,226
|
|
|||||||||||||
|
Total net revenues |
|
$ 12,731 |
|
|
$ 14,213 |
|
|
$ 10,895 |
|
|||||||||||||
| Americas
|
|
64%
|
|
|
65%
|
|
|
63%
|
|
|||||||||||||
| EMEA
|
|
23%
|
|
|
24%
|
|
|
26%
|
|
|||||||||||||
| Asia
|
|
13%
|
|
|
11%
|
|
|
11%
|
|
|||||||||||||
|
Total
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
|||||||||||||
7
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
| SIX MONTHS ENDED | % CHANGE FROM | |||||||||||||||
| JUNE 30, 2024 |
JUNE 30, 2023 |
JUNE 30, 2023 |
||||||||||||||
|
GLOBAL BANKING & MARKETS |
||||||||||||||||
|
Advisory
|
|
$ 1,699
|
|
|
$ 1,463
|
|
|
16 %
|
|
|||||||
| Equity underwriting |
793 | 593 | 34 | |||||||||||||
|
Debt underwriting |
1,321 | 954 | 38 | |||||||||||||
|
Investment banking fees |
3,813 | 3,010 | 27 | |||||||||||||
|
FICC intermediation |
5,801 | 5,369 | 8 | |||||||||||||
|
FICC financing |
1,702 | 1,273 | 34 | |||||||||||||
|
FICC |
7,503 | 6,642 | 13 | |||||||||||||
| Equities intermediation |
3,775 | 3,274 | 15 | |||||||||||||
|
Equities financing |
2,705 | 2,707 | – | |||||||||||||
|
Equities
|
|
6,480
|
|
|
5,981
|
|
|
8
|
|
|||||||
|
Other
|
|
114
|
|
|
–
|
|
|
N.M.
|
|
|||||||
|
Net revenues
|
|
17,910
|
|
|
15,633
|
|
|
15
|
|
|||||||
|
ASSET & WEALTH MANAGEMENT |
||||||||||||||||
|
Management and other fees |
4,988 | 4,636 | 8 | |||||||||||||
|
Incentive fees |
134 | 78 | 72 | |||||||||||||
|
Private banking and lending |
1,389 | 1,228 | 13 | |||||||||||||
|
Equity investments |
514 | (284) | N.M. | |||||||||||||
|
Debt investments
|
|
642
|
|
|
605
|
|
|
6
|
|
|||||||
|
Net revenues
|
|
7,667
|
|
|
6,263
|
|
|
22
|
|
|||||||
|
PLATFORM SOLUTIONS |
||||||||||||||||
|
Consumer platforms
|
|
1,217
|
|
|
1,067
|
|
|
14
|
|
|||||||
| Transaction banking and other
|
|
150
|
|
|
156
|
|
|
(4)
|
|
|||||||
|
Net revenues
|
|
1,367
|
|
|
1,223
|
|
|
12
|
|
|||||||
|
Total net revenues
|
|
$ 26,944
|
|
|
$ 23,119
|
|
|
17
|
|
|||||||
|
Geographic Net Revenues (unaudited)3 $ in millions
|
|
|||||||||||||||
| SIX MONTHS ENDED | ||||||||||||||||
| JUNE 30, 2024 |
JUNE 30, 2023 |
|||||||||||||||
| Americas |
$ 17,306 | $ 13,995 | ||||||||||||||
|
EMEA |
6,401 | 6,452 | ||||||||||||||
|
Asia
|
|
3,237
|
|
|
2,672
|
|
||||||||||
|
Total net revenues |
|
$ 26,944
|
|
|
$ 23,119
|
|
||||||||||
| Americas |
64% | 60% | ||||||||||||||
|
EMEA |
24% | 28% | ||||||||||||||
|
Asia
|
|
12%
|
|
|
12%
|
|
||||||||||
|
Total
|
|
100%
|
|
|
100%
|
|
||||||||||
8
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings (unaudited)
In millions, except per share amounts and headcount
| THREE MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||||||||
| JUNE 30, 2024 |
MARCH 31, 2024 |
JUNE 30, 2023 |
MARCH 31, 2024 |
JUNE 30, 2023 |
||||||||||||||||||||||
|
REVENUES |
||||||||||||||||||||||||||
|
Investment banking |
$ 1,733 | $ 2,085 | $ 1,432 | (17) % | 21 | % | ||||||||||||||||||||
|
Investment management |
2,533 | 2,491 | 2,356 | 2 | 8 | |||||||||||||||||||||
|
Commissions and fees |
1,051 | 1,077 | 893 | (2) | 18 | |||||||||||||||||||||
|
Market making |
4,225 | 5,992 | 4,351 | (29) | (3) | |||||||||||||||||||||
|
Other principal transactions
|
|
947
|
|
|
960
|
|
|
179
|
|
|
(1)
|
|
|
429
|
|
|||||||||||
|
Total non-interest revenues
|
|
10,489
|
|
|
12,605
|
|
|
9,211
|
|
|
(17)
|
|
|
14
|
|
|||||||||||
| Interest income
|
20,440 | 19,555 | 16,836 | 5 | 21 | |||||||||||||||||||||
| Interest expense
|
|
18,198
|
|
|
17,947
|
|
|
15,152
|
|
|
1
|
|
|
20
|
|
|||||||||||
|
Net interest income
|
|
2,242
|
|
|
1,608
|
|
|
1,684
|
|
|
39
|
|
|
33
|
|
|||||||||||
|
Total net revenues
|
|
12,731
|
|
|
14,213
|
|
|
10,895
|
|
|
(10)
|
|
|
17
|
|
|||||||||||
|
Provision for credit losses
|
|
282
|
|
|
318
|
|
|
615
|
|
|
(11)
|
|
|
(54)
|
|
|||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||||||||||||
|
Compensation and benefits |
4,240 | 4,585 | 3,619 | (8) | 17 | |||||||||||||||||||||
|
Transaction based |
1,654 | 1,497 | 1,385 | 10 | 19 | |||||||||||||||||||||
|
Market development |
153 | 153 | 146 | – | 5 | |||||||||||||||||||||
|
Communications and technology |
500 | 470 | 482 | 6 | 4 | |||||||||||||||||||||
|
Depreciation and amortization |
646 | 627 | 1,594 | 3 | (59) | |||||||||||||||||||||
|
Occupancy |
244 | 247 | 253 | (1) | (4) | |||||||||||||||||||||
|
Professional fees |
393 | 384 | 392 | 2 | – | |||||||||||||||||||||
|
Other expenses
|
703 | 695 | 673 | 1 | 4 | |||||||||||||||||||||
|
Total operating expenses
|
|
8,533
|
|
|
8,658
|
|
|
8,544
|
|
|
(1)
|
|
|
–
|
|
|||||||||||
| Pre-tax earnings
|
3,916 | 5,237 | 1,736 | (25) | 126 | |||||||||||||||||||||
| Provision for taxes
|
873 | 1,105 | 520 | (21) | 68 | |||||||||||||||||||||
|
Net earnings
|
|
3,043
|
|
|
4,132
|
|
|
1,216
|
|
|
(26)
|
|
|
150
|
|
|||||||||||
| Preferred stock dividends
|
|
152
|
|
|
201
|
|
|
145
|
|
|
(24)
|
|
|
5
|
|
|||||||||||
|
Net earnings applicable to common shareholders
|
|
$ 2,891
|
|
|
$ 3,931
|
|
|
$ 1,071
|
|
|
(26)
|
|
|
170
|
|
|||||||||||
|
EARNINGS PER COMMON SHARE
|
||||||||||||||||||||||||||
|
Basic3 |
$ 8.73 | $ 11.67 | $ 3.09 | (25) % | 183 | % | ||||||||||||||||||||
|
Diluted |
$ 8.62 | $ 11.58 | $ 3.08 | (26) | 180 | |||||||||||||||||||||
|
AVERAGE COMMON SHARES
|
||||||||||||||||||||||||||
| Basic |
329.8 | 335.6 | 342.3 | (2) | (4) | |||||||||||||||||||||
|
Diluted |
335.5 | 339.5 | 347.2 | (1) | (3) | |||||||||||||||||||||
|
SELECTED DATA AT PERIOD-END
|
||||||||||||||||||||||||||
|
Common shareholders’ equity |
$ 106,710 | $ 107,343 | $ 105,790 | (1) | 1 | |||||||||||||||||||||
|
Basic shares3 |
326.2 | 334.3 | 342.0 | (2) | (5) | |||||||||||||||||||||
|
Book value per common share |
$ 327.13 | $ 321.10 | $ 309.33 | 2 | 6 | |||||||||||||||||||||
| Headcount
|
|
44,300
|
|
|
44,400
|
|
|
44,600
|
|
|
–
|
|
|
(1)
|
|
|||||||||||
9
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings (unaudited)
In millions, except per share amounts
| SIX MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||
| JUNE 30, 2024 |
JUNE 30, 2023 |
JUNE 30, 2023 |
||||||||||||||||||
|
REVENUES |
||||||||||||||||||||
|
Investment banking |
$ 3,818 | $ 3,010 | 27 % | |||||||||||||||||
|
Investment management |
5,024 | 4,645 | 8 | |||||||||||||||||
|
Commissions and fees |
2,128 | 1,981 | 7 | |||||||||||||||||
|
Market making |
10,217 | 9,784 | 4 | |||||||||||||||||
|
Other principal transactions |
1,907 | 234 | 715 | |||||||||||||||||
|
Total non-interest revenues |
|
23,094 |
|
|
19,654 |
|
|
18 |
|
|||||||||||
| Interest income |
39,995 | 31,774 | 26 | |||||||||||||||||
|
Interest expense |
36,145 | 28,309 | 28 | |||||||||||||||||
|
Net interest income |
|
3,850 |
|
|
3,465 |
|
|
11 |
|
|||||||||||
|
Total net revenues |
26,944 | 23,119 | 17 | |||||||||||||||||
|
|
|
|
||||||||||||||||||
|
Provision for credit losses |
600 | 444 | 35 | |||||||||||||||||
|
OPERATING EXPENSES |
||||||||||||||||||||
|
Compensation and benefits |
8,825 | 7,709 | 14 | |||||||||||||||||
|
Transaction based |
3,151 | 2,790 | 13 | |||||||||||||||||
|
Market development |
306 | 318 | (4) | |||||||||||||||||
|
Communications and technology |
970 | 948 | 2 | |||||||||||||||||
|
Depreciation and amortization |
1,273 | 2,564 | (50) | |||||||||||||||||
|
Occupancy |
491 | 518 | (5) | |||||||||||||||||
|
Professional fees |
777 | 775 | - | |||||||||||||||||
|
Other expenses |
1,398 | 1,324 | 6 | |||||||||||||||||
|
Total operating expenses |
|
17,191 |
|
|
16,946 |
|
|
1 |
|
|||||||||||
| Pre-tax earnings |
9,153 | 5,729 | 60 | |||||||||||||||||
|
Provision for taxes |
1,978 | 1,279 | 55 | |||||||||||||||||
|
Net earnings |
7,175 | 4,450 | 61 | |||||||||||||||||
|
Preferred stock dividends |
353 | 292 | 21 | |||||||||||||||||
|
Net earnings applicable to common shareholders |
$ 6,822 | $ 4,158 | 64 | |||||||||||||||||
|
EARNINGS PER COMMON SHARE |
||||||||||||||||||||
|
Basic3 |
$ 20.44 | $ 12.00 | 70 % | |||||||||||||||||
|
Diluted |
$ 20.21 | $ 11.91 | 70 | |||||||||||||||||
|
AVERAGE COMMON SHARES |
||||||||||||||||||||
|
Basic |
332.6 | 344.4 | (3) | |||||||||||||||||
|
Diluted
|
|
337.5
|
|
|
349.2
|
|
|
(3)
|
|
|||||||||||
10
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)3
$ in billions
| AS OF | ||||||||||||||||||||||
| JUNE 30, 2024 |
MARCH 31, 2024 |
|||||||||||||||||||||
| ASSETS
|
||||||||||||||||||||||
| Cash and cash equivalents |
$ 206 | $ 209 | ||||||||||||||||||||
|
Collateralized agreements |
403 | 447 | ||||||||||||||||||||
|
Customer and other receivables |
142 | 160 | ||||||||||||||||||||
|
Trading assets |
522 | 508 | ||||||||||||||||||||
|
Investments |
161 | 155 | ||||||||||||||||||||
|
Loans |
184 | 184 | ||||||||||||||||||||
|
Other assets |
35 | 35 | ||||||||||||||||||||
|
Total assets
|
|
$ 1,653
|
|
|
$ 1,698
|
|
||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||
| Deposits |
$ 433 | $ 441 | ||||||||||||||||||||
|
Collateralized financings |
325 | 349 | ||||||||||||||||||||
|
Customer and other payables |
243 | 257 | ||||||||||||||||||||
|
Trading liabilities |
200 | 201 | ||||||||||||||||||||
|
Unsecured short-term borrowings |
77 | 78 | ||||||||||||||||||||
|
Unsecured long-term borrowings |
235 | 234 | ||||||||||||||||||||
|
Other liabilities |
21 | 20 | ||||||||||||||||||||
|
Total liabilities
|
|
1,534
|
|
|
1,580
|
|
||||||||||||||||
| Shareholders’ equity |
119 | 118 | ||||||||||||||||||||
|
Total liabilities and shareholders’ equity |
|
$ 1,653
|
|
|
$ 1,698
|
|
||||||||||||||||
|
Capital Ratios and Supplementary Leverage Ratio (unaudited)3 $ in billions
|
|
|||||||||||||||||||||
| AS OF | ||||||||||||||||||||||
| JUNE 30, 2024 |
MARCH 31, 2024 |
|||||||||||||||||||||
|
Common equity tier 1 capital |
$ 100.8 | $ 101.7 | ||||||||||||||||||||
|
STANDARDIZED CAPITAL RULES
|
||||||||||||||||||||||
| Risk-weighted assets |
$ 679 | $ 695 | ||||||||||||||||||||
|
Common equity tier 1 capital ratio |
14.8% | 14.6% | ||||||||||||||||||||
|
ADVANCED CAPITAL RULES
|
||||||||||||||||||||||
| Risk-weighted assets |
$ 640 | $ 640 | ||||||||||||||||||||
|
Common equity tier 1 capital ratio |
15.7% | 15.9% | ||||||||||||||||||||
|
SUPPLEMENTARY LEVERAGE RATIO
|
||||||||||||||||||||||
| Supplementary leverage ratio
|
5.4% | 5.4% | ||||||||||||||||||||
|
Average Daily VaR (unaudited)3 $ in millions |
|
|||||||||||||||||||||
| THREE MONTHS ENDED | ||||||||||||||||||||||
| JUNE 30, 2024 |
MARCH 31, 2024 |
|||||||||||||||||||||
|
RISK CATEGORIES
|
||||||||||||||||||||||
|
Interest rates |
$ 81 | $ 86 | ||||||||||||||||||||
|
Equity prices |
33 | 29 | ||||||||||||||||||||
|
Currency rates |
30 | 18 | ||||||||||||||||||||
|
Commodity prices |
18 | 17 | ||||||||||||||||||||
| Diversification effect |
(71) | (63) | ||||||||||||||||||||
|
Total
|
|
$ 91
|
|
|
$ 87
|
|
||||||||||||||||
11
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Assets Under Supervision (unaudited)3
$ in billions
| AS OF | ||||||||||||||||||||||||
| JUNE 30, 2024 |
MARCH 31, 2024 |
JUNE 30, 2023 |
||||||||||||||||||||||
|
ASSET CLASS
|
||||||||||||||||||||||||
| Alternative investments
|
|
$ 314
|
|
|
$ 296
|
|
|
$ 267
|
|
|||||||||||||||
| Equity
|
|
735
|
|
|
713
|
|
|
627
|
|
|||||||||||||||
| Fixed income
|
|
1,147
|
|
|
1,141
|
|
|
1,056
|
|
|||||||||||||||
|
Total long-term AUS
|
|
2,196
|
|
|
2,150
|
|
|
1,950
|
|
|||||||||||||||
| Liquidity products
|
|
738
|
|
|
698
|
|
|
764
|
|
|||||||||||||||
|
Total AUS
|
|
$ 2,934
|
|
|
$ 2,848
|
|
|
$ 2,714
|
|
|||||||||||||||
| THREE MONTHS ENDED | ||||||||||||||||||||||||
| JUNE 30, 2024 |
MARCH 31, 2024 |
JUNE 30, 2023 |
||||||||||||||||||||||
|
Beginning balance
|
$ 2,848 | $ 2,812 | $ 2,672 | |||||||||||||||||||||
| Net inflows / (outflows):
|
||||||||||||||||||||||||
| Alternative investments
|
18 | – | (1) | |||||||||||||||||||||
| Equity
|
|
6
|
|
|
1
|
|
|
(3)
|
|
|||||||||||||||
| Fixed income
|
|
7
|
|
|
23
|
|
|
12
|
|
|||||||||||||||
|
Total long-term AUS net inflows / (outflows)
|
|
31
|
|
|
24
|
|
|
8
|
|
|||||||||||||||
|
Liquidity products
|
|
40
|
|
|
(39)
|
|
|
4
|
|
|||||||||||||||
|
Total AUS net inflows / (outflows)
|
|
71
|
|
|
(15)
|
|
|
12
|
|
|||||||||||||||
| Acquisitions / (dispositions)
|
|
–
|
|
|
–
|
|
|
–
|
|
|||||||||||||||
| Net market appreciation / (depreciation)
|
|
15
|
|
|
51
|
|
|
30
|
|
|||||||||||||||
|
Ending balance
|
|
$ 2,934
|
|
|
$ 2,848
|
|
|
$ 2,714
|
|
|||||||||||||||
12
Goldman Sachs Reports
Second Quarter 2024 Earnings Results
|
Footnotes |
|
|
| 1. | Annualized ROE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly common shareholders’ equity. Annualized ROTE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly tangible common shareholders’ equity (tangible common shareholders’ equity is calculated as total shareholders’ equity less preferred stock, goodwill and identifiable intangible assets). Management believes that ROTE is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed internally, and that tangible common shareholders’ equity is meaningful because it is a measure that the firm and investors use to assess capital adequacy. ROTE and tangible common shareholders’ equity are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies. |
The table below presents a reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity:
|
AVERAGE FOR THE |
||||||||||||||
| Unaudited, $ in millions
|
THREE MONTHS ENDED JUNE 30, 2024
|
SIX MONTHS ENDED
|
||||||||||||
|
Total shareholders’ equity
|
|
$ 118,842
|
|
|
$ 118,056
|
|
||||||||
| Preferred stock
|
|
(12,366)
|
|
|
(11,867)
|
|
||||||||
|
Common shareholders’ equity
|
|
106,476
|
|
|
106,189
|
|
||||||||
|
Goodwill |
|
(5,895)
|
|
|
(5,899)
|
|
||||||||
| Identifiable intangible assets
|
|
(1,006)
|
|
|
(1,071)
|
|
||||||||
|
Tangible common shareholders’ equity
|
|
$ 99,575
|
|
|
$ 99,219
|
|
||||||||
| 2. | Dealogic – January 1, 2024 through June 30, 2024. |
| 3. | For information about the following items, see the referenced sections in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the firm’s Quarterly Report on Form 10-Q for the period ended March 31, 2024: (i) Investment banking fees backlog – see “Results of Operations – Global Banking & Markets,” (ii) assets under supervision – see “Results of Operations – Asset & Wealth Management – Assets Under Supervision,” (iii) efficiency ratio – see “Results of Operations – Operating Expenses,” (iv) share repurchase program – see “Capital Management and Regulatory Capital – Capital Management,” (v) global core liquid assets – see “Risk Management – Liquidity Risk Management,” (vi) basic shares – see “Balance Sheet and Funding Sources – Balance Sheet Analysis and Metrics” and (vii) VaR – see “Risk Management – Market Risk Management.” |
For information about the following items, see the referenced sections in Part I, Item 1 “Financial Statements (Unaudited)” in the firm’s Quarterly Report on Form 10-Q for the period ended March 31, 2024: (i) risk-based capital ratios and the supplementary leverage ratio – see Note 20 “Regulation and Capital Adequacy,” (ii) geographic net revenues – see Note 25 “Business Segments” and (iii) unvested share-based awards that have non-forfeitable rights to dividends or dividend equivalents in calculating basic EPS – see Note 21 “Earnings Per Common Share.”
Represents a preliminary estimate for the second quarter of 2024 for the firm’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio, balance sheet data, global core liquid assets and VaR. These may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended June 30, 2024.
13
