Goldman Sachs posts record $53.5bn Revenue and $14.3bn Earnings for 2024

ByInvestment Club

Overview

Goldman Sachs (GS) delivered a strong financial performance in Q4 2024, underpinned by significant growth across its Global Banking & Markets and Asset & Wealth Management segments. The firm reported robust earnings, improved efficiency, and record revenues in key areas, reflecting its diversified business model and strategic focus.

GS reported net revenues of $53.51bn and net earnings of $14.28bn for the year ended December 31, 2024. Diluted earnings per common share (EPS) was $40.54 for 2024, while return on average common shareholders’ equity (ROE) was 12.7% for 2024.

Q4 2024 vs. Q4 2023:

Revenue and profitability

  • Net revenues increased to $13.87bn (+23% YoY and +9% QoQ), with growth across all segments.
  • Net earnings surged to $4.11bn (+105% vs. 2023), driven by higher net revenues and lower operating expenses.
  • Diluted EPS jumped to $11.95 (+118% YoY), highlighting strong profitability.

Efficiency and returns

  • Return on Equity (ROE) improved to 14.6% (+7.5 ppts vs. Q4 2023).
  • The efficiency ratio decreased to 59.6%, a notable improvement of 15.4 percentage points YoY.

Segment performance

  • In Global Banking & Markets, net revenues grew to $8.48bn (+33% vs. Q4 2023), with record revenues in FICC (Fixed Income, Currencies, and Commodities) financing and equities financing.
  • In Asset & Wealth Management, revenues increased to $4.72bn (+8% YoY), driven by higher management fees and net inflows into alternative investments.
  • In Platform Solutions, revenues grew by 16% YoY, supported by higher credit card balances.

Full-Year 2024 highlights:

Record in revenues and earnings

  • Net revenues for 2024 reached $53.51bn (+16% YoY), reflecting strong growth in Global Banking & Markets and Asset & Wealth Management.
  • Net earnings for the year grew to $14.28bn (+68% vs. 2023), with EPS of $40.54 (+77% YoY).

Global Banking & Markets

  • Full-year revenues rose to $34.94bn (+16% vs 2023), with strong performance in equity and debt underwriting.
  • Record revenues in FICC financing, up 33% YoY, and equities financing, up 9% YoY.

Asset & Wealth Management

  • Revenues grew to $16.14bn (+16% vs. 2023), with record management fees of $10.43bn and private banking revenues of $2.88bn.

Capital Management

  • The firm returned $11.8bn to shareholders in 2024, including $8bn in share repurchases and $3.8bn in dividends.
  • Book value per share increased to $336.77 (+7.4% YoY).

David Solomon, Chairman and CEO of Goldman Sachs, said: “We are very pleased with our strong results for the quarter and the year. I’m encouraged that we have met or exceeded almost all of the targets we set in our strategy to grow the firm five years ago, and as a result, have both grown our revenues by nearly 50% and enhanced the durability of our franchise. With an improving operating backdrop and growing CEO confidence, we are harnessing the power of One Goldman Sachs to continue to serve our clients with excellence and create further value for our shareholders”.

Goldman Sachs’ 2024 results demonstrate the firm’s ability to drive revenue growth, optimize efficiency, and deliver strong returns to shareholders. With a record $3.14tn in assets under supervision and robust contributions from its diversified business lines, Goldman Sachs is well-positioned on Wall Street for continued success in 2025.

Author: Ionuț-Adrian Lazar

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