EX-99.1 2 d839513dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

 

Second Quarter 2024

 

Earnings Results

 

Media Relations: Tony Fratto 212-902-5400

Investor Relations: Jehan Ilahi 212-902-0300 

 

   

 

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

 

 

 

“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.”

 

- David Solomon, Chairman and Chief Executive Officer 

 

 

 

Financial Summary

 

 

 

    

  

    

  

    

 

 

 

Net Revenues

 

  

 

Net Earnings

 

  

 

EPS 

 

 

 

2Q24          $12.73 billion 

 

  

 

2Q24       $3.04 billion 

 

  

 

2Q24        $8.62 

 

 

2Q24  YTD        $26.94 billion 

 

  

2Q24 YTD    $7.18 billion 

 

  

2Q24 YTD       $20.21 

 

     
 

 

Annualized ROE1

 

  

 

Annualized  ROTE1

 

  

 

Book Value Per Share 

 

 

 

2Q24           10.9% 

 

  

 

2Q24             11.6% 

 

  

 

2Q24        $327.13 

 

 

2Q24 YTD        12.8% 

 

    

2Q24 YTD       13.8% 

 

    

YTD Growth     4.3% 

 

  
           

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.

  

 

  

 

Net Revenues

 

   

 

$12.73 billion

 

   
   

2  

 

Goldman Sachs Reports

Second Quarter 2024 Earnings Results

 

 

   

 

   Global Banking & Markets  

 

    

 

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

 

 

 

$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 

 

 

Equities intermediation

  

$ 1.79 billion 

 

Equities financing

  

$ 1.38 billion 

 

Equities

  

$ 3.17 billion 

 

 

Other

  

$  102 million 

   
   
   
   
   
   
   

 

   

 

   Asset & Wealth Management  

 

    

 

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 

 

 

 

$3.88 billion

 

 

 

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

 

 

   

 

   Platform Solutions  

 

    

 

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

 

   

 

$669 million

 

   

 

Consumer platforms

    $599 million 
   

Transaction banking

 and other

 

  

$ 70 million 

 

     

 

 

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  

   

 

$282 million

 

     
     
     
     
     

 

 

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     

   

 

$8.53 billion

 

     
   

 

   YTD Efficiency Ratio   

   

 

63.8%

 

     
     
     
     
     
     
     

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

 

   

 

21.6%

 

   
   

 

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

 

 

 

$3.00

 

 
 

 

Common Share Repurchases

 

 

 

8.0 million shares

for $3.50 billion

 

   
   

 

Average GCLA

 

   

 

$424 billion

 

   
   
   
   

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.

 

    

 

   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.

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

  

 

GLOBAL BANKING & MARKETS

                                          

 

Advisory

 

    

 

 $      688 

 

  

 

    

 

 $   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   

 

 

  

 

 

 

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   

 

 

 

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
JUNE 30, 2024

 

        

 

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