- Goldman Sachs’ net revenue reached $13.87 billion, beating estimates of $12.37 billion.
- FICC sales and trading revenue stood at $2.74 billion, surpassing the expected $2.44 billion.
- Global Banking & Markets net revenues rose by 33% year-over-year to $8.48 billion, exceeding the estimate of $7.56 billion.
- Investment banking revenue increased by 24% year-over-year to $2.06 billion, slightly above the estimated $2 billion.
- Equities sales and trading revenue jumped by 32% year-over-year to $3.45 billion, ahead of the $3.02 billion estimate.
- Advisory revenue fell by 4.5% year-over-year to $960 million, below the expected $1.02 billion.
- Equity underwriting revenue surged by 98% year-over-year to $499 million, beating the $426.1 million estimate.
- Debt underwriting revenue increased by 51% year-over-year to $595 million, surpassing the expected $575.4 million.
- Earnings per share (EPS) were reported at $11.95.
- Net interest income grew by 75% year-over-year to $2.35 billion, topping the $2.11 billion estimate.
- Platform Solutions reported a pretax loss of $252 million, worse than the estimated loss of $120.7 million.
- Total deposits fell by 2.7% quarter-over-quarter to $433 billion.
- Provision for credit losses decreased by 39% year-over-year to $351 million, under the estimated $382.3 million.
- Total operating expenses dropped by 2.7% year-over-year to $8.26 billion, slightly above the $8.23 billion estimate.
- Compensation expenses increased by 4.4% year-over-year to $3.76 billion, lower than the $3.9 billion estimate.
- Annualized return on equity (ROE) stood at 14.6%, above the 9.98% estimate.
- Return on tangible equity was 15.5%, exceeding the estimate of 10.6%.
- The standardized Common Equity Tier 1 (CET1) ratio was 15%, surpassing the estimated 14.7%.
- Book value per share rose to $336.77 from $313.56 year-over-year.
- The efficiency ratio was recorded at 59.6%, better than the 67% estimate.
- Assets under management increased by 12% year-over-year to $3.14 trillion, slightly below the estimate of $3.16 trillion.
- Total assets under supervision net inflows were $92 billion, significantly surpassing the $14 billion year-over-year and the estimated $31.59 billion.
- Total loans grew by 7.1% year-over-year to $196 billion, higher than the $193.53 billion estimate.
Goldman Sachs Group on Smartkarma
Analyst coverage of Goldman Sachs Group on Smartkarma reveals a bullish sentiment as highlighted in the research report by Odd Lots. Titled “Goldman Sachs CIO on How the Bank Is Actually Using AI,” the report delves into the utilization of AI chat GPT prompts for both professional and creative purposes. Tracy and Joe, the authors, discuss the potential of AI tools while examining the evolving role of technology in the financial sector. They share insights on their favorite chat GPT and Claude prompts, acknowledging the associated limitations and risks, particularly in large companies like Goldman Sachs. Marco Argenti, the Chief Information Officer at Goldman Sachs, sheds light on his responsibilities in ensuring the seamless operation of technology within the company and the increasing use of AI in the finance industry.
A look at Goldman Sachs Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Goldman Sachs Group, known for its expertise in investment banking and securities services, is set for a positive long-term outlook based on the Smartkarma Smart Scores. With a high Momentum score of 5, indicating strong market performance, the company shows promising growth potential. Additionally, scoring well in Value at 4 signifies solid financial health and attractive valuation. Despite a lower Resilience score of 2, showing some vulnerability, the overall outlook remains optimistic due to its robust performance in key areas.
Furthermore, Goldman Sachs Group‘s focus on delivering value to investors is evident with a Dividend score of 3 and Growth score of 3. While there is room for improvement in the Resilience factor, the company’s strengths in Value, Momentum, Dividend, and Growth underscore its position as a reliable player in the investment sector, poised for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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