Goldman Sachs' Asset & Wealth Management Revenue Shines In Q4; Hits $225B Alternatives Fundraising Target

Goldman Sachs Group Inc GS on Tuesday reported fourth-quarter 2023 GAAP EPS of $5.48, compared with $3.32 for the fourth quarter of 2022 and surpassing the consensus of $3.43, according to data from Benzinga Pro.

Fiscal 2023 net income dipped 24% year-over-year (Y/Y) to $8.52 billion, its lowest level since 2019, noted Financial Times. However, the fourth-quarter net income was up 51% to $2 billion.

David Solomon, Chairman and CEO of Goldman Sachs, said, "This was a year of execution for Goldman Sachs. With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024.

The bank generated fourth quarter 2023 revenue of $11.32 billion, up 7% Y/Y and 4% lower sequentially vs. the expected $9.85 billion, reflecting higher net revenues in Asset & Wealth Management and Platform Solutions, partially offset by lower net revenues in Global Banking & Markets.

The company said that in 2023, the firm supported clients and continued to execute strategic priorities, which contributed to the firm's third-highest annual net revenues of $46.25 billion. 

Net revenues in Global Banking & Markets were $6.35 billion for the fourth quarter of 2023, down 3% Y/Y and 21% sequentially.

Investment banking fees were $1.65 billion, 12% lower Y/Y, due to significantly lower net revenues in Advisory, reflecting a decline in industry-wide completed mergers and acquisitions volumes.

Net revenues in FICC were $2.03 billion, 24% lower Y/Y, reflecting significantly lower net revenues in Fixed Income, Currency, and Commodities intermediation, driven by significantly lower net revenues in interest rate products and currencies and lower net revenues in commodities and credit products.

Net revenues in Asset & Wealth Management were $4.39 billion for the fourth quarter of 2023, 23% higher on Y/Y and 36% higher sequentially, primarily reflected by higher net revenues in Equity and Debt investments and higher Management and other fees.

Goldman said it had surpassed a fundraising target of $225 billion. 

Price Action: GS shares are up 0.25% at $378.69 on the last check Tuesday.

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