10-KPeriod: FY2023

GOLDMAN SACHS GROUP INC Annual Report, Year Ended Dec 31, 2023

Filed February 23, 2024For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

Goldman Sachs Group, Inc. reported net earnings of $8.52 billion for 2023, a decrease from $11.26 billion in 2022, with diluted EPS at $22.87 compared to $30.06 in the prior year. Net revenues were $46.25 billion, a 2% decrease year-over-year, primarily driven by a decline in Global Banking & Markets revenues, partially offset by growth in Platform Solutions and Asset & Wealth Management. The firm continued its strategic focus on narrowing its consumer business, completing the sale of substantially all Marcus loans and agreeing to sell GreenSky. Operating expenses increased by 11% due to higher impairments related to commercial real estate, write-downs on GreenSky, and FDIC special assessment fees, leading to a higher efficiency ratio of 74.6% for 2023 compared to 65.8% in 2022. Despite these challenges, Goldman Sachs returned $9.39 billion in capital to shareholders through buybacks and dividends, maintaining a strong Common Equity Tier 1 (CET1) capital ratio of 14.4% under Standardized Capital Rules.

Financial Highlights

38 data points
Beta

Net Income

$8.52B

EPS (Diluted)

$22.87

Total Assets

$1.64T

Cash & Equivalents

$241.58B

Free Cash Flow

-$14.90B

Financial Statements
Beta
Interest Expense$62.16B
Net Income$8.52B
EPS (Basic)$23.05
EPS (Diluted)$22.87
Shares Outstanding (Basic)340.80M
Shares Outstanding (Diluted)345.80M

Key Highlights

  • 1Net earnings for 2023 were $8.52 billion, down from $11.26 billion in 2022, reflecting a challenging market environment and increased operating expenses.
  • 2Net revenues decreased by 2% to $46.25 billion in 2023, with Global Banking & Markets revenue decline largely offset by growth in Platform Solutions and Asset & Wealth Management.
  • 3Operating expenses rose 11% to $34.49 billion, driven by impairments, write-downs, and FDIC special assessment fees, leading to an elevated efficiency ratio of 74.6%.
  • 4Capital returned to shareholders totaled $9.39 billion in 2023 through share repurchases ($5.80 billion) and dividends ($3.59 billion).
  • 5The firm continued to divest from its consumer business, completing the sale of Marcus loans and agreeing to sell GreenSky.
  • 6Common Equity Tier 1 (CET1) capital ratio remained robust at 14.4% (Standardized) and 14.9% (Advanced) as of December 31, 2023, indicating strong capital adequacy.
  • 7Asset & Wealth Management saw a revenue increase of 4% to $13.88 billion, driven by higher management and other fees, and a positive provision for credit losses.

Frequently Asked Questions

In 2023, Goldman Sachs reported net earnings of $8.52 billion, a decrease from $11.26 billion in 2022. Diluted EPS was $22.87, down from $30.06 in 2022. Net revenues slightly decreased by 2% to $46.25 billion. Operating expenses increased by 11% due to various factors including impairments and fees, leading to a less favorable efficiency ratio.

Global Banking & Markets experienced a revenue decline, primarily due to lower investment banking fees and FICC intermediation. Asset & Wealth Management showed revenue growth of 4% driven by higher management and other fees. Platform Solutions saw a significant revenue increase of 58% due to growth in consumer platforms, although it reported a pre-tax loss.

Goldman Sachs maintains a strong capital position with a CET1 capital ratio of 14.4% (Standardized) as of December 31, 2023. The company returned $9.39 billion of capital to shareholders in 2023 through $5.80 billion in share repurchases and $3.59 billion in common stock dividends, reflecting its commitment to capital deployment.

Goldman Sachs is continuing to narrow its focus in consumer businesses. The company completed the sale of substantially all of its Marcus loans portfolio and entered into an agreement to sell its GreenSky business. These moves are part of a strategy to streamline operations and focus on more profitable areas.