10-QPeriod: Q2 FY2024

GOLDMAN SACHS GROUP INC Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 2, 2024For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

Goldman Sachs Group, Inc. reported strong financial results for the second quarter of 2024, with net earnings of $3.04 billion, a significant increase from $1.22 billion in the prior year period. Diluted earnings per share (EPS) rose to $8.62 from $3.08 year-over-year. This performance was driven by a broad-based increase in net revenues across its business segments, particularly in Global Banking & Markets, which saw higher revenues from Investment Banking and FICC & Equities, and in Asset & Wealth Management, benefiting from higher management and other fees and gains in Equity investments. The firm also demonstrated improved operational efficiency, with its efficiency ratio decreasing to 67.0% from 78.4% in the prior year's quarter. Capital returned to shareholders remained robust, with $4.43 billion deployed in the quarter through share repurchases and dividends. The firm's Common Equity Tier 1 (CET1) capital ratio remained strong at 14.9% under Standardized Capital Rules and 15.9% under Advanced Capital Rules. Despite ongoing macroeconomic and geopolitical uncertainties, Goldman Sachs is strategically narrowing its focus on consumer-related activities while continuing to invest in growth areas like alternatives within Asset & Wealth Management.

Financial Highlights

37 data points
Beta

Net Income

$3.04B

EPS (Diluted)

$8.62

Total Assets

$1.65T

Cash & Equivalents

$206.33B

Free Cash Flow

$5.58B

Financial Statements
Beta
Interest Expense$18.45B
Net Income$3.04B
EPS (Basic)$8.73
EPS (Diluted)$8.62
Shares Outstanding (Basic)329.80M
Shares Outstanding (Diluted)335.50M

Key Highlights

  • 1Net earnings increased significantly to $3.04 billion, up from $1.22 billion in Q2 2023.
  • 2Diluted EPS rose to $8.62, a substantial increase from $3.08 in Q2 2023.
  • 3Total net revenues grew by 17% year-over-year to $12.73 billion, driven by strong performance across Global Banking & Markets and Asset & Wealth Management.
  • 4Investment Banking fees increased by 21% year-over-year, supported by strong debt and equity underwriting activity.
  • 5Asset & Wealth Management revenues increased by 27% year-over-year, boosted by higher management and other fees and gains in Equity investments.
  • 6The efficiency ratio improved to 67.0% from 78.4% in the prior year quarter, indicating enhanced operational efficiency.
  • 7Capital returned to shareholders totaled $4.43 billion in Q2 2024 through share repurchases and dividends.

Frequently Asked Questions

The significant increase in net earnings was driven by a 17% rise in total net revenues to $12.73 billion, primarily due to strong performance in Global Banking & Markets (higher investment banking fees and FICC & Equities revenues) and Asset & Wealth Management (higher management and other fees and equity investment gains). Additionally, improved operational efficiency, reflected in a lower efficiency ratio, contributed to the earnings growth.

Global Banking & Markets saw a 14% increase in net revenues to $8.18 billion, with notable growth in investment banking fees, FICC, and Equities. Asset & Wealth Management reported a 27% increase in net revenues to $3.88 billion, primarily due to gains in equity investments and higher management and other fees. Platform Solutions experienced a slight 2% increase in net revenues to $669 million, despite strategic shifts.

Goldman Sachs returned $4.43 billion to shareholders in Q2 2024 through share repurchases ($3.50 billion) and dividends ($929 million). The firm announced an increase in its quarterly common stock dividend to $3.00 per share. However, due to an anticipated increase in its Stress Capital Buffer (SCB) requirement, the firm plans to moderate its stock repurchase levels in the near term.

Goldman Sachs is strategically narrowing its focus on consumer-related activities. While it continues to issue credit cards for Apple Card customers and GM customers, it has sold most of the GreenSky installment loan portfolio and the Marcus loans portfolio. The firm is in discussions to potentially transition the GM credit card program and sell its remaining seller financing loans to small- and medium-sized retailers.