THE GOLDMAN SACHS GROUP, INC. First Quarter 2024 Earnings Results
Media Relations: Tony Fratto 212-902-5400
Investor Relations: Carey Halio 212-902-0300
The Goldman Sachs Group, Inc. 200 West Street | New York, NY 10282
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First Quarter 2024 Earnings Results
Goldman Sachs Reports First Quarter Earnings Per Common Share of $11.58
"Our first quarter results reflect the strength of our world-class and interconnected franchises and the earnings power of Goldman Sachs. We continue to execute on our strategy, focusing on our core strengths to serve our clients and deliver for our shareholders."
- David Solomon, Chairman and Chief Executive Officer
Financial Summary | |||||
Net Revenues | Net Earnings | EPS | |||
1Q24 | $14.21 billion | 1Q24 | $4.13 billion | 1Q24 | $11.58 |
Annualized ROE1 | Annualized ROTE1 | Book Value Per Share | |||
1Q24 | 14.8% | 1Q24 | 15.9% | 1Q24 | $321.10 |
NEW YORK, April 15, 2024 - The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $14.21 billion and net earnings of $4.13 billion for the first quarter ended March 31, 2024.
Diluted earnings per common share (EPS) was $11.58 for the first quarter of 2024 compared with $8.79 for the first quarter of 2023 and $5.48 for the fourth quarter of 2023.
Annualized return on average common shareholders' equity (ROE)1 was 14.8% and annualized return on average tangible common shareholders' equity (ROTE)1 was 15.9% for the first quarter of 2024.
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Goldman Sachs Reports
First Quarter 2024 Earnings Results
Highlights.
- During the quarter, the firm supported clients and continued to execute on strategic priorities, which contributed to strong quarterly net revenues of $14.21 billion, net earnings of $4.13 billion and diluted EPS of $11.58.
- Global Banking & Markets generated quarterly net revenues of $9.73 billion, driven by strong performances in Investment banking fees, Fixed Income, Currency and Commodities (including record quarterly net revenues in financing) and Equities (including the second highest quarterly net revenues in 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 $3.79 billion, including record quarterly Management and other fees.
- Assets under supervision3 increased $36 billion during the quarter to a record $2.85 trillion.
- Book value per common share increased by 2.4% during the quarter to $321.10.
Net Revenues
Net revenues were $14.21 billion for the first quarter of 2024, 16% higher than the first | Net Revenues |
quarter of 2023 and 26% higher than the fourth quarter of 2023. The increase compared | |
with the first quarter of 2023 reflected higher net revenues across all segments. | $14.21 billion |
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Goldman Sachs Reports
First Quarter 2024 Earnings Results
Global Banking & Markets
Net revenues in Global Banking & Markets were $9.73 billion for the first quarter of 2024, 15% higher than the first quarter of 2023 and 53% higher than the fourth quarter of 2023.
Investment banking fees were $2.08 billion, 32% higher than the first quarter of 2023, reflecting significantly higher net revenues in Debt underwriting, primarily driven by leveraged finance activity, in Advisory, reflecting an increase in completed mergers and acquisitions transactions, and in Equity underwriting, primarily from initial public and secondary offerings. The firm's Investment banking fees backlog3 decreased compared with the end of 2023.
Net revenues in Fixed Income, Currency and Commodities (FICC) were $4.32 billion, 10% higher than the first quarter of 2023, primarily reflecting significantly higher net revenues in FICC financing, driven by mortgages and structured lending. The increase also reflected higher net revenues in FICC intermediation due to significantly higher net revenues in mortgages and higher net revenues in currencies and credit products, partially offset by lower net revenues in commodities and slightly lower net revenues in interest rate products.
Net revenues in Equities were $3.31 billion, 10% higher than the first quarter of 2023, due to higher net revenues in Equities intermediation, reflecting significantly higher net revenues in derivatives, and slightly higher net revenues in Equities financing.
Net revenues in Other were $12 million compared with $(81) million for the first quarter of 2023, with the increase primarily due to lower net losses on hedges.
Global Banking & Markets
$9.73 billion
Advisory | $ | 1.01 billion |
Equity underwriting | $ | 370 million |
Debt underwriting | $ | 699 million |
Investment banking fees | $ | 2.08 billion |
FICC intermediation | $ | 3.47 billion |
FICC financing | $ | 852 million |
FICC | $ | 4.32 billion |
Equities intermediation | $ | 1.99 billion |
Equities financing | $ | 1.32 billion |
Equities | $ | 3.31 billion |
Other | $ | 12 million |
Asset & Wealth Management
Net revenues in Asset & Wealth Management were $3.79 billion for the first quarter of 2024, 18% higher than the first quarter of 2023 and 14% lower than the fourth quarter of 2023. The increase compared with the first quarter of 2023 primarily reflected significantly higher net revenues in both Private banking and lending (the first quarter of 2023 included net revenues of approximately $(470) million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale) and Equity investments and higher Management and other fees.
The increase in Private banking and lending net revenues reflected the impact of the sale of the Marcus loans portfolio in 2023 (including the significant mark-down of the portfolio in the first quarter of 2023), partially offset by the impact of lower deposit spreads. The increase in Equity investments net revenues reflected significantly higher net gains from investments in private equities, partially offset by mark-to-market net losses from investments in public equities compared with net gains 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 lower, reflecting lower net interest income due to a reduction in the debt investments balance sheet.
Asset & Wealth Management
$3.79 billion
Management and | $ | 2.45 billion |
other fees | ||
Incentive fees | $ | 88 million |
Private banking and | $ | 682 million |
lending | ||
$ | 222 million | |
Equity investments | ||
Debt investments | $ | 345 million |
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Goldman Sachs Reports
First Quarter 2024 Earnings Results
Platform Solutions
Net revenues in Platform Solutions were $698 million for the first quarter of 2024, 24% higher than the first quarter of 2023 and 21% higher than the fourth quarter of 2023. The increase compared with the first quarter of 2023 reflected significantly higher net revenues in Consumer platforms.
The increase in Consumer platforms net revenues primarily reflected higher average credit card balances and higher average deposit balances. Transaction banking and other net revenues were slightly higher, reflecting higher deposit spreads.
Platform Solutions
$698 million
Consumer platforms | $ | 618 million |
Transaction banking | $ | 80 million |
and other | ||
Provision for Credit Losses
Provision for credit losses was $318 million for the first quarter of 2024, compared with a net benefit of $171 million for the first quarter of 2023 and net provisions of $577 million for the fourth quarter of 2023. Provisions for the first quarter of 2024 reflected net provisions related to both the credit card portfolio (driven by net charge-offs) and wholesale loans (driven by impairments). The net benefit for the first quarter of 2023 reflected a reserve reduction of approximately $440 million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale, partially offset by net provisions related to the credit card and point-of-sale loan portfolios (driven by net charge-offs and growth) and a provision related to a term deposit with First Republic Bank.
Operating Expenses
Provision for Credit Losses
$318 million
Operating expenses were $8.66 billion for the first quarter of 2024, 3% higher than the first quarter of 2023 and 2% higher than the fourth quarter of 2023. The firm's efficiency ratio3 was 60.9% for the first quarter of 2024, compared with 68.7% for the first quarter of 2023.
The increase in operating expenses compared with the first quarter of 2023 primarily reflected higher compensation and benefits expenses (reflecting improved operating performance), higher transaction based expenses and an incremental expense for the FDIC special assessment fee (in other expenses), partially offset by significantly lower impairments related to consolidated real estate investments (in depreciation and amortization).
Net provisions for litigation and regulatory proceedings were $23 million for the first quarter of 2024 compared with $72 million for the first quarter of 2023.
Headcount decreased 2% compared with the end of 2023, primarily reflecting the impact of the sale of GreenSky Holdings, LLC.
Operating Expenses
$8.66 billion
Efficiency Ratio
60.9%
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Goldman Sachs Reports
First Quarter 2024 Earnings Results
Provision for Taxes
The effective income tax rate for the first quarter of 2024 was 21.1%, up from the full year rate of 20.7% for 2023, primarily due to a decrease in permanent tax benefits, partially offset by changes in the geographic mix of earnings.
Effective Tax Rate
21.1%
Other Matters
- On April 11, 2024, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $2.75 per common share to be paid on June 27, 2024 to common shareholders of record on May 30, 2024.
- During the quarter, the firm returned $2.43 billion of capital to common shareholders, including $1.50 billion of common share repurchases (3.9 million shares at an average cost of $384.55) and $929 million of common stock dividends.3
- Global core liquid assets3 averaged $423 billion for the first quarter of 2024, compared with an average of $414 billion for the fourth quarter of 2023.
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Declared Quarterly
Dividend Per Common Share
$2.75
Common Share Repurchases
3.9 million shares for $1.50 billion
Average GCLA
$423 billion
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Goldman Sachs Reports
First 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.
Cautionary Note Regarding Forward-Looking Statements
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.
Conference Call
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.
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Goldman Sachs Reports
First Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
THREE MONTHS ENDED | ||||||
MARCH 31, | DECEMBER 31, | MARCH 31, | ||||
2024 | 2023 | 2023 | ||||
GLOBAL BANKING & MARKETS | ||||||
Advisory | $ | 1,011 | $ | 1,005 | $ | 818 |
Equity underwriting | 370 | 252 | 255 | |||
Debt underwriting | 699 | 395 | 506 | |||
Investment banking fees | 2,080 | 1,652 | 1,579 | |||
FICC intermediation | 3,471 | 1,295 | 3,280 | |||
FICC financing | 852 | 739 | 651 | |||
FICC | 4,323 | 2,034 | 3,931 | |||
Equities intermediation | 1,989 | 1,502 | 1,741 | |||
Equities financing | 1,322 | 1,105 | 1,274 | |||
Equities | 3,311 | 2,607 | 3,015 | |||
Other | 12 | 61 | (81) | |||
Net revenues | 9,726 | 6,354 | 8,444 | |||
ASSET & WEALTH MANAGEMENT | ||||||
Management and other fees | 2,452 | 2,445 | 2,282 | |||
Incentive fees | 88 | 59 | 53 | |||
Private banking and lending | 682 | 661 | 354 | |||
Equity investments | 222 | 838 | 119 | |||
Debt investments | 345 | 384 | 408 | |||
Net revenues | 3,789 | 4,387 | 3,216 | |||
PLATFORM SOLUTIONS | ||||||
Consumer platforms | 618 | 504 | 490 | |||
Transaction banking and other | 80 | 73 | 74 | |||
Net revenues | 698 | 577 | 564 | |||
Total net revenues | $ | 14,213 | $ | 11,318 | $ | 12,224 |
Geographic Net Revenues (unaudited)3
$ in millions
THREE MONTHS ENDED | ||||||
MARCH 31, | DECEMBER 31, | MARCH 31, | ||||
2024 | 2023 | 2023 | ||||
Americas | $ | 9,181 | $ | 7,770 | $ | 7,194 |
EMEA | 3,470 | 2,481 | 3,584 | |||
Asia | 1,562 | 1,067 | 1,446 | |||
Total net revenues | $ | 14,213 | $ | 11,318 | $ | 12,224 |
Americas | 65% | 69% | 59% | |||
EMEA | 24% | 22% | 29% | |||
Asia | 11% | 9% | 12% | |||
Total | 100% | 100% | 100% |
% CHANGE FROM
DECEMBER 31, | MARCH 31, | ||
2023 | 2023 | ||
1 | % | 24 | % |
47 | 45 | ||
77 | 38 | ||
26 | 32 | ||
168 | 6 | ||
15 | 31 | ||
113 | 10 | ||
32 | 14 | ||
20 | 4 | ||
27 | 10 | ||
(80) | N.M. | ||
53 | 15 | ||
- | 7 | ||
49 | 66 | ||
3 | 93 | ||
(74) | 87 | ||
(10) | (15) | ||
(14) | 18 | ||
23 | 26 | ||
10 | 8 | ||
21 | 24 | ||
26 | 16 |
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Goldman Sachs Reports
First 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 | ||||||
MARCH 31, | DECEMBER 31, | MARCH 31, | ||||
2024 | 2023 | 2023 | ||||
REVENUES | ||||||
Investment banking | $ | 2,085 | $ | 1,653 | $ | 1,578 |
Investment management | 2,491 | 2,478 | 2,289 | |||
Commissions and fees | 1,077 | 925 | 1,088 | |||
Market making | 5,992 | 3,496 | 5,433 | |||
Other principal transactions | 960 | 1,427 | 55 | |||
Total non-interest revenues | 12,605 | 9,979 | 10,443 | |||
Interest income | 19,555 | 18,484 | 14,938 | |||
Interest expense | 17,947 | 17,145 | 13,157 | |||
Net interest income | 1,608 | 1,339 | 1,781 | |||
Total net revenues | 14,213 | 11,318 | 12,224 | |||
Provision for credit losses | 318 | 577 | (171) | |||
OPERATING EXPENSES | ||||||
Compensation and benefits | 4,585 | 3,602 | 4,090 | |||
Transaction based | 1,497 | 1,456 | 1,405 | |||
Market development | 153 | 175 | 172 | |||
Communications and technology | 470 | 503 | 466 | |||
Depreciation and amortization | 627 | 780 | 970 | |||
Occupancy | 247 | 268 | 265 | |||
Professional fees | 384 | 471 | 383 | |||
Other expenses | 695 | 1,232 | 651 | |||
Total operating expenses | 8,658 | 8,487 | 8,402 | |||
Pre-tax earnings | 5,237 | 2,254 | 3,993 | |||
Provision for taxes | 1,105 | 246 | 759 | |||
Net earnings | 4,132 | 2,008 | 3,234 | |||
Preferred stock dividends | 201 | 141 | 147 | |||
Net earnings applicable to common shareholders | $ | 3,931 | $ | 1,867 | $ | 3,087 |
EARNINGS PER COMMON SHARE | ||||||
Basic3 | $ | 11.67 | $ | 5.52 | $ | 8.87 |
Diluted | $ | 11.58 | $ | 5.48 | $ | 8.79 |
AVERAGE COMMON SHARES | ||||||
Basic | 335.6 | 335.7 | 346.6 | |||
Diluted | 339.5 | 340.9 | 351.3 | |||
SELECTED DATA AT PERIOD-END | ||||||
Common shareholders' equity | $ | 107,343 | $ | 105,702 | $ | 106,806 |
Basic shares3 | 334.3 | 337.1 | 344.0 | |||
Book value per common share | $ | 321.10 | $ | 313.56 | $ | 310.48 |
Headcount | 44,400 | 45,300 | 45,400 |
% CHANGE FROM | |||
DECEMBER 31, | MARCH 31, | ||
2023 | 2023 | ||
26 | % | 32 | % |
1 | 9 | ||
16 | (1) | ||
71 | 10 |
- N.M.
2621
6 | 31 | ||
5 | 36 | ||
20 | (10) | ||
26 | 16 | ||
- N.M.
27 | 12 |
3 | 7 |
- (11)
- 1
- (35)
- (7)
- -
- 7
2 | 3 | ||
132 | 31 | ||
349 | 46 | ||
106 | 28 | ||
43 | 37 | ||
111 | 27 | ||
111 | % | 32 | % |
11132
- (3)
- (3)
21
- (3)
23
- (2)
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Goldman Sachs Reports
First Quarter 2024 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited)3
$ in billions
AS OF | |||||
MARCH 31, | DECEMBER 31, | ||||
2024 | 2023 | ||||
ASSETS | |||||
Cash and cash equivalents | $ | 209 | $ | 242 | |
Collateralized agreements | 447 | 423 | |||
Customer and other receivables | 160 | 132 | |||
Trading assets | 508 | 478 | |||
Investments | 155 | 147 | |||
Loans | 184 | 183 | |||
Other assets | 35 | 37 | |||
Total assets | $ | 1,698 | $ | 1,642 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Deposits | $ | 441 | $ | 428 | |
Collateralized financings | 349 | 324 | |||
Customer and other payables | 257 | 231 | |||
Trading liabilities | 201 | 200 | |||
Unsecured short-term borrowings | 78 | 76 | |||
Unsecured long-term borrowings | 234 | 242 | |||
Other liabilities | 20 | 24 | |||
Total liabilities | 1,580 | 1,525 | |||
Shareholders' equity | 118 | 117 | |||
Total liabilities and shareholders' equity | $ | 1,698 | $ | 1,642 |
Capital Ratios and Supplementary Leverage Ratio (unaudited)3
$ in billions
AS OF | ||||
MARCH 31, | DECEMBER 31, | |||
2024 | 2023 | |||
Common equity tier 1 capital | $ | 101.7 | $ | 99.4 |
STANDARDIZED CAPITAL RULES | ||||
Risk-weighted assets | $ | 693 | $ | 693 |
Common equity tier 1 capital ratio | 14.7% | 14.4% | ||
ADVANCED CAPITAL RULES | ||||
Risk-weighted assets | $ | 641 | $ | 665 |
Common equity tier 1 capital ratio | 15.9% | 14.9% | ||
SUPPLEMENTARY LEVERAGE RATIO | ||||
Supplementary leverage ratio | 5.4% | 5.5% |
Average Daily VaR (unaudited)3
$ in millions
THREE MONTHS ENDED | ||||
MARCH 31, | DECEMBER 31, | |||
2024 | 2023 | |||
RISK CATEGORIES | ||||
Interest rates | $ | 86 | $ | 87 |
Equity prices | 29 | 29 | ||
Currency rates | 18 | 18 | ||
Commodity prices | 17 | 19 | ||
Diversification effect | (63) | (62) | ||
Total | $ | 87 | $ | 91 |
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The Goldman Sachs Group Inc. published this content on 15 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2024 11:29:05 UTC.
