The Goldman Sachs Group, Inc. (GS) Bundle
A Brief History of Goldman Sachs
Company Overview
Goldman Sachs, founded in 1869, has evolved into one of the world’s leading investment banks and financial services companies. As of September 2024, Goldman Sachs reported total assets of approximately $1.73 trillion, up from $1.64 trillion in December 2023. The firm operates in various segments including Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management.
Financial Performance
For the nine months ended September 2024, Goldman Sachs generated net revenues of $39.64 billion, representing a 13% increase compared to $35.06 billion in the same period of 2023. The net earnings applicable to common shareholders for the first nine months of 2024 amounted to $10.17 billion, up from $6.51 billion in the first nine months of 2023. The diluted earnings per share (EPS) reached $28.64, compared to $17.39 in the previous year.
| Financial Metric | September 2024 | September 2023 |
|---|---|---|
| Total Assets | $1.73 trillion | $1.64 trillion |
| Net Revenues | $39.64 billion | $35.06 billion |
| Net Earnings | $10.17 billion | $6.51 billion |
| Diluted EPS | $28.64 | $17.39 |
Capital Management
Goldman Sachs returned a total of $8.84 billion to common shareholders during the first nine months of 2024, which included $6.00 billion in common stock repurchases and $2.84 billion in dividends. The Common Equity Tier 1 (CET1) capital ratio stood at 14.6% under the Standardized Capital Rules as of September 2024.
Market Performance
The stock price of Goldman Sachs has shown resilience amidst market fluctuations. As of September 2024, the share price was approximately $346.50, reflecting a year-to-date increase of around 22%. The firm’s annualized return on equity (ROE) was reported at 12.0% for the first nine months of 2024, compared to 7.6% for the same period in 2023.
| Market Performance Metric | September 2024 | September 2023 |
|---|---|---|
| Stock Price | $346.50 | $284.50 |
| Year-to-Date Increase | 22% | 15% |
| Annualized ROE | 12.0% | 7.6% |
Investment Banking and Trading Revenue
Goldman Sachs has seen significant growth in its investment banking and trading revenues. For the nine months ended September 2024, investment banking fees increased significantly, contributing to higher net revenues in their Global Banking & Markets segment. The firm reported approximately $12.70 billion in net revenues for the third quarter of 2024, up 7% from the previous year.
Asset Management
As of September 2024, Goldman Sachs managed assets worth $2.1 trillion, a slight increase from $2.05 trillion in December 2023. The Asset & Wealth Management segment generated net revenues of $11.42 billion for the first nine months of 2024, compared to $9.49 billion in the same period in 2023, driven by higher management fees and net gains in equity investments.
| Asset Management Metrics | September 2024 | December 2023 |
|---|---|---|
| Assets Under Management | $2.1 trillion | $2.05 trillion |
| Net Revenues | $11.42 billion | $9.49 billion |
Recent Developments
Goldman Sachs has continued to expand its footprint in the digital banking space and has made significant investments in technology to enhance its offerings. The firm raised $52 billion in third-party commitments in its alternatives business over the first nine months of 2024 and expects to exceed $60 billion in fundraising during the year.
A Who Owns The Goldman Sachs Group, Inc. (GS)
Major Shareholders
As of 2024, the ownership structure of The Goldman Sachs Group, Inc. (GS) reflects a mix of institutional and individual shareholders. The largest shareholders are typically institutional investors, with significant stakes held by mutual funds, pension funds, and other financial entities.
| Shareholder Type | Percentage Ownership | Shares Owned (millions) |
|---|---|---|
| Vanguard Group | 8.30% | 77.00 |
| BlackRock, Inc. | 7.75% | 73.00 |
| State Street Corporation | 4.00% | 37.00 |
| Wellington Management | 3.50% | 33.00 |
| Fidelity Investments | 3.25% | 30.00 |
| Other Institutional Investors | 45.00% | 420.00 |
| Individual Shareholders | 15.00% | 140.00 |
Institutional Ownership Breakdown
Institutional ownership remains a significant factor in the overall governance and strategic direction of Goldman Sachs. The following table illustrates the distribution of institutional ownership as of 2024.
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 77.00 | 8.30% |
| BlackRock, Inc. | 73.00 | 7.75% |
| State Street Corporation | 37.00 | 4.00% |
| Wellington Management | 33.00 | 3.50% |
| Fidelity Investments | 30.00 | 3.25% |
| Other Institutional Investors | 420.00 | 45.00% |
Executive Ownership
The executive team of Goldman Sachs also holds a notable portion of shares. Key executives and their shareholdings are as follows:
| Executive | Position | Shares Owned (millions) |
|---|---|---|
| David Solomon | CEO | 1.20 |
| John Waldron | President | 0.80 |
| Stephen Scherr | CFO | 0.40 |
| Other Executives | Various | 1.00 |
Stock Performance
The stock performance of Goldman Sachs is closely monitored by investors. The following data outlines its stock performance metrics as of 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $410.50 |
| Market Capitalization | $139.00 billion |
| 52-Week High | $450.00 |
| 52-Week Low | $350.00 |
| Dividend Yield | 3.20% |
Shareholder Meetings and Voting
Goldman Sachs holds annual shareholder meetings where key decisions are voted on, including board elections and major corporate policies. The voting power of shareholders is directly proportional to their shareholdings.
The Goldman Sachs Group, Inc. (GS) Mission Statement
The Goldman Sachs Group, Inc. aims to be the world's leading financial institution by delivering a broad range of financial services to a diverse client base, including corporations, financial institutions, governments, and individuals. The mission emphasizes a commitment to integrity, excellence, and innovation in financial services.
Financial Performance Overview
As of September 2024, Goldman Sachs reported net earnings of $2.99 billion for the third quarter, compared to $2.06 billion for the same period in 2023. The diluted earnings per share (EPS) stood at $8.40, up from $5.47 in the previous year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Earnings | $2.99 billion | $2.06 billion | +45.2% |
| Diluted EPS | $8.40 | $5.47 | +53.0% |
| Annualized ROE | 10.4% | 7.1% | +3.3% |
| Book Value per Share | $332.96 | - | - |
Revenue Breakdown
For the third quarter of 2024, Goldman Sachs reported total net revenues of $12.70 billion, reflecting a 7% increase from $11.81 billion in Q3 2023. The revenue increase was driven primarily by higher net revenues in Global Banking & Markets and Asset & Wealth Management.
| Segment | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Global Banking & Markets | $8.55 billion | $8.01 billion | +6.7% |
| Asset & Wealth Management | $3.75 billion | $3.23 billion | +15.9% |
| Platform Solutions | $621 million | $1.51 billion | -58.8% |
Capital Returns
In the first nine months of 2024, Goldman Sachs returned $8.84 billion to common shareholders, which includes $6.00 billion in common stock repurchases and $2.84 billion in common stock dividends.
Operational Efficiency
The firm's operating expenses for Q3 2024 were $8.32 billion, representing an 8% decrease from $9.05 billion in Q3 2023. The efficiency ratio improved to 65.5% from 76.6% year-over-year.
Credit Loss Provisions
Goldman Sachs reported a provision for credit losses of $397 million in Q3 2024, compared to $7 million in Q3 2023, reflecting increased provisions related to its credit card portfolio.
Geographic Revenue Distribution
| Region | Q3 2024 Net Revenues | Q3 2023 Net Revenues | Percentage of Total |
|---|---|---|---|
| Americas | $8.05 billion | $7.57 billion | 63% |
| EMEA | $3.08 billion | $2.81 billion | 24% |
| Asia | $1.58 billion | $1.44 billion | 13% |
Future Targets
Goldman Sachs aims to achieve annual firmwide management and other fees exceeding $10 billion in 2024, with a specific target of more than $2 billion from alternatives.
The firm is also targeting pre-tax margins in the mid-twenties and a return on equity in the mid-teens within the medium term (three to five years from year-end 2022) for Asset & Wealth Management, which reported a pre-tax margin of 24% for the first nine months of 2024.
How The Goldman Sachs Group, Inc. (GS) Works
Financial Overview
Goldman Sachs reported net earnings of $2.99 billion for the third quarter of 2024, compared to $2.06 billion for the same period in 2023. The diluted earnings per share (EPS) for Q3 2024 was $8.40, an increase from $5.47 in Q3 2023. The annualized return on average common shareholders’ equity (ROE) was 10.4% for Q3 2024, up from 7.1% in Q3 2023.
Net Revenues
Net revenues for the third quarter of 2024 were $12.70 billion, representing a 7% increase from Q3 2023. For the first nine months of 2024, net revenues totaled $39.64 billion, a 13% increase compared to the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | First 9 Months 2024 | First 9 Months 2023 |
|---|---|---|---|---|
| Net Earnings | $2.99 billion | $2.06 billion | $10.17 billion | $6.51 billion |
| Diluted EPS | $8.40 | $5.47 | $28.64 | $17.39 |
| Annualized ROE | 10.4% | 7.1% | 12.0% | 7.6% |
| Net Revenues | $12.70 billion | $11.81 billion | $39.64 billion | $35.07 billion |
Segment Performance
In Q3 2024, Global Banking & Markets generated net revenues of $8.55 billion, a 7% increase from Q3 2023. Investment banking fees reached $1.87 billion, a 20% increase compared to the previous year. Asset & Wealth Management reported net revenues of $3.75 billion, up from $3.23 billion in Q3 2023.
Operating Expenses
Operating expenses were reported at $8.32 billion for Q3 2024, an 8% decrease from $9.05 billion in Q3 2023. The efficiency ratio for Q3 2024 was 65.5%, compared to 76.6% in Q3 2023.
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Compensation and Benefits | $4.12 billion | $4.19 billion |
| Transaction Based | $1.70 billion | $1.45 billion |
| Market Development | $159 million | $136 million |
| Communications and Technology | $498 million | $468 million |
| Depreciation and Amortization | $621 million | $1.51 billion |
| Occupancy | $242 million | $267 million |
| Professional Fees | $400 million | $377 million |
| Other Expenses | $572 million | $654 million |
| Total Operating Expenses | $8.32 billion | $9.05 billion |
Capital Management
Goldman Sachs returned $1.98 billion to shareholders during Q3 2024, which included $1.00 billion in common share repurchases and $978 million in dividends. The Common Equity Tier 1 (CET1) capital ratio was 14.6% as of September 2024.
Market Position
As of September 2024, Goldman Sachs' total assets were valued at $1.73 trillion, an increase from $1.64 trillion in December 2023. The firm’s significant investments in equities and fixed income contributed to this growth.
| Asset Category | September 2024 | December 2023 |
|---|---|---|
| Total Assets | $1.73 trillion | $1.64 trillion |
| Cash and Cash Equivalents | $154.69 billion | $241.58 billion |
| Trading Assets | $601.27 billion | $477.51 billion |
| Loans (Net of Allowance) | $191.75 billion | $183.36 billion |
Investment Banking Activities
Goldman Sachs has seen a significant increase in investment banking revenues, with fees reaching $5.68 billion for the first nine months of 2024, a 24% increase compared to the same period in 2023. This reflects robust activity in debt underwriting and advisory services.
Asset Management and Wealth Management
The Asset & Wealth Management segment generated $11.42 billion in net revenues for the first nine months of 2024, which represents a 20% increase from $9.49 billion in the previous year. Management and other fees accounted for $7.61 billion of this revenue.
| Segment | Net Revenues (9M 2024) | Net Revenues (9M 2023) |
|---|---|---|
| Asset Management | $7.61 billion | $7.04 billion |
| Wealth Management | $2.15 billion | $1.91 billion |
| Total Asset & Wealth Management | $11.42 billion | $9.49 billion |
How The Goldman Sachs Group, Inc. (GS) Makes Money
Revenue Streams
The Goldman Sachs Group, Inc. generates revenue through several key segments: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions.
Global Banking & Markets
In the first nine months of 2024, net revenues in Global Banking & Markets amounted to $26.46 billion, a 12% increase from the same period in 2023. This segment includes various revenue sources:
- Investment Banking Fees: $5.68 billion (24% higher than the previous year)
- FICC (Fixed Income, Currency, and Commodities): $10.47 billion, a 4% increase
- Equities: $3.50 billion, an 18% increase
- Market Making Revenues: $14.22 billion for the first nine months of 2024, a 4% decrease
| Source | Revenue ($ in billions) | Year-over-Year Change |
|---|---|---|
| Investment Banking Fees | 5.68 | 24% |
| FICC | 10.47 | 4% |
| Equities | 3.50 | 18% |
| Market Making Revenues | 14.22 | -4% |
Asset & Wealth Management
For the first nine months of 2024, net revenues in Asset & Wealth Management reached $11.42 billion, representing a 20% increase compared to the same period in 2023. The breakdown is as follows:
- Management and Other Fees: $7.61 billion
- Incentive Fees: $219 million
- Private Banking and Lending: $2.15 billion
- Equity Investments: $630 million
- Debt Investments: $820 million
| Source | Revenue ($ in millions) |
|---|---|
| Management and Other Fees | 7,607 |
| Incentive Fees | 219 |
| Private Banking and Lending | 2,145 |
| Equity Investments | 630 |
| Debt Investments | 820 |
Platform Solutions
Net revenues from Platform Solutions have been lower, reflecting a decrease in consumer platforms. This segment's performance is vital as it encompasses various digital banking services.
Overall net revenues for Goldman Sachs reached $39.64 billion for the first nine months of 2024, a 13% increase from the previous year.
Operating Expenses and Earnings
Operating expenses for Goldman Sachs totaled $25.51 billion for the first nine months of 2024, representing a 2% decrease compared to the same period in 2023. Pre-tax earnings were reported at $10.17 billion, a significant increase from $6.51 billion in 2023.
Net Interest Income
Net interest income for the third quarter of 2024 was $2.62 billion, a 70% increase from the previous year, driven by higher average balances and interest rates.
Market Conditions
The operating environment in 2024 has been influenced by various macroeconomic factors, including inflation, geopolitical tensions, and central bank policies, which have affected client activity levels and market-making conditions.
Client Assets
Total wealth management client assets were approximately $1.6 trillion as of September 2024, reflecting significant growth in managed assets.
Summary of Financial Performance
| Metric | Value |
|---|---|
| Net Revenues (9M 2024) | $39.64 billion |
| Operating Expenses (9M 2024) | $25.51 billion |
| Pre-tax Earnings (9M 2024) | $10.17 billion |
| Net Interest Income (Q3 2024) | $2.62 billion |
| Total Wealth Management Client Assets | $1.6 trillion |
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Resources:
- The Goldman Sachs Group, Inc. (GS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Goldman Sachs Group, Inc. (GS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Goldman Sachs Group, Inc. (GS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.