Goldman Sachs Q4 Earnings: Underwriting Boosts Revenue, Assets Reach Record $3.14 Trillion

On Wednesday, Goldman Sachs Group Inc. GS shares traded higher after the company reported its fourth-quarter and full-year 2024 financial results.

Goldman Sachs reported fourth-quarter revenue of $13.87 billion, beating the consensus of $12.39 billion. Revenue increased by 23% year-over-year, reflecting growth across all segments, with significant growth in Global Banking & Markets.

Full-year revenue was $53.51 billion, up 16% YoY, beating the consensus of $51.98 billion.

Net interest income for 4Q24 was $2.35 billion, 75% higher YoY, reflecting a shift towards higher-yielding assets, and was essentially unchanged QoQ. Average interest-earning assets were $1.59 trillion.

Also read: Goldman Sachs Restructures Business for Financing Growth

Segment Revenues: Global Banking & Markets revenues were $8.48 billion, up 33% Y/Y. This was boosted by a 24% Y/Y increase in investment banking fees to $2.05 billion, led by higher revenues in Debt and Equity underwriting. Investment banking fees backlog increased QoQ, primarily driven by Equity underwriting.

Net revenues in Fixed Income, Currency, and Commodities (FICC) were $2.74 billion, up 35% year over year, primarily reflecting higher net revenues in FICC intermediation and financing.

Net revenues from Equity grew 32% YoY to $3.45 billion, reflecting significantly higher net revenues in intermediation and financing.

Asset & Wealth Management revenue was $4.72 billion, 8% higher than last year. Total Wealth management client assets soared to ~$1.6 trillion.

Goldman Sachs clocked fourth-quarter GAAP EPS of $11.95, beating the consensus of $8.30. Full-year GAAP EPS was $40.54, beating the consensus of $36.55.

Provision for credit losses was $351 million for the fourth quarter, down 39% year over year, reflecting net provisions related to the credit card portfolio (primarily driven by net charge-offs).

In the fourth quarter, total Assets Under Supervision (AUS) saw a net inflow of $92 billion. Total AUS for 2024 increased by $325 billion to a record $3.14 trillion.

Stock Buyback: In the fourth quarter, Goldman Sachs repurchased stock worth $2 billion, bringing the yearly stock buyback to $8 billion.

The Standardized CET capital ratio increased to 15%, and the Advanced CET capital ratio increased to 15.4%. The book value per common share increased to $336.77 YoY, compared to $313.56.

In the last 12 months, Goldman Sachs stock has gained 50%, outperforming the S&P500 and the Dow by a huge margin.

Analyst Ratings: In the last 15 days, Oppenheimer lowered Goldman Sachs stock price forecast from $677 to $639, UBS downgraded the stock to a Neutral rating with a price forecast of $610, and Barclays raised the price forecast from $588 to $713.

Investors can gain exposure to the Goldman Sachs stock via Shares U.S. Broker-Dealers & Securities Exchanges ETF IAI, SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA), and Invesco KBW Bank ETF KBWB.

Price Action: GS shares are up 2.54% at $586.05 premarket at the last check on Wednesday.

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