Second Quarter 2024 Earnings Results Presentation
July 15, 2024
Results Snapshot
Net Revenues | Net Earnings | EPS | |||
2Q24 | $12.73 billion | 2Q24 | $3.04 billion | 2Q24 | $8.62 |
2Q24 YTD | $26.94 billion | 2Q24 YTD | $7.18 billion | 2Q24 YTD | $20.21 |
Annualized ROE1 | Annualized ROTE1 | Book Value Per Share | |||
2Q24 | 10.9% | 2Q24 | 11.6% | 2Q24 | $327.13 |
2Q24 YTD | 12.8% | 2Q24 YTD | 13.8% | YTD Growth | 4.3% |
Quarterly Highlights
#1 in announced and completed M&A2;
2nd highest net revenues in Equities financing and in FICC financing
Record Management and other fees of $2.54 billion
Record AUS3 of $2.93 trillion;
26th consecutive quarter of long-termfee-based net inflows
Increased quarterly dividend by 9% to $3.00 per common share in 3Q24
Selected Items and FDIC Special Assessment Fee4
$ in millions, except per share amounts | 2Q24 | 2Q24 YTD | |||
Pre-tax earnings: | |||||
AWM historical principal investments5 | $ | 164 | $ | 332 | |
GreenSky | 3 | (21) | |||
General Motors (GM) Card | (58) | (118) | |||
FDIC special assessment fee | (19) | (97) | |||
Total impact to pre-tax earnings | $ | 90 | $ | 96 | |
Impact to net earnings | $ | 70 | $ | 75 | |
Impact to EPS | $ | 0.21 | $ | 0.22 | |
Impact to ROE | 0.3pp | 0.1pp | 1 | ||
Financial Overview
Financial Results
vs. | |||||||||
$ in millions, | 2Q24 | vs. | vs. | 2Q24 | 2Q23 | ||||
except per share amounts | 1Q24 | 2Q23 | YTD | YTD | |||||
Global Banking & Markets | $ | 8,184 | (16)% | 14% | $ | 17,910 | 15% | ||
Asset & Wealth Management | 3,878 | 2% | 27% | 7,667 | 22% | ||||
Platform Solutions | 669 | (4)% | 2% | 1,367 | 12% | ||||
Net revenues | 12,731 | (10)% | 17% | 26,944 | 17% | ||||
Provision for credit losses | 282 | (11)% | (54)% | 600 | 35% | ||||
Operating expenses | 8,533 | (1)% | - | 17,191 | 1% | ||||
Pre-tax earnings | $ | 3,916 | (25)% | 126% | $ | 9,153 | 60% |
Financial Overview Highlights
- 2Q24 results included EPS of $8.62 and ROE of 10.9%
- 2Q24 net revenues were higher YoY, reflecting higher net revenues in Global Banking & Markets and Asset & Wealth Management
- 2Q24 provision for credit losses was $282 million, reflecting net provisions related to the credit card portfolio (driven by net charge-offs)
- 2Q24 operating expenses were essentially unchanged YoY, reflecting decreases driven by an impairment of goodwill related to Consumer platforms in 2Q23 and significantly lower impairments related to consolidated real estate investments, offset by increases from higher compensation and benefits expenses (reflecting improved operating performance) and higher transaction based expenses
Net Revenues by Segment ($ in millions)
Net earnings | $ | 3,043 | (26)% | 150% | $ | 7,175 | 61% | |||
Net earnings to common | $ | 2,891 | (26)% | 170% | $ | 6,822 | 64% | |||
Diluted EPS | $ | 8.62 | (26)% | 180% | $ | 20.21 | 70% | |||
ROE1 | 10.9% | (3.9)pp | 6.9pp | 12.8% | 5.0pp | |||||
ROTE1 | 11.6% | (4.3)pp | 7.2pp | 13.8% | 5.3pp | |||||
Efficiency Ratio3 | 67.0% | 6.1pp | (11.4)pp | 63.8% | (9.5)pp | |||||
$12,731
$8,184
$3,878
$669
$14,213
$9,726
$3,789
$698
$10,895
Global Banking | |
& Markets | |
$7,189 | Asset & Wealth |
Management | |
Platform | |
$3,047 | Solutions |
$659 |
2Q24 | 1Q24 | 2Q23 | 2 |
Global Banking & Markets
Financial Results
vs. | |||||||
vs. | vs. | 2Q24 | 2Q23 | ||||
$ in millions | 2Q24 | 1Q24 | 2Q23 | YTD | YTD | ||
Investment banking fees | $ | 1,733 | (17)% | 21% | $ | 3,813 | 27% |
FICC | 3,180 | (26)% | 17% | 7,503 | 13% | ||
Equities | 3,169 | (4)% | 7% | 6,480 | 8% | ||
Other | 102 | 750% | 26% | 114 | N.M. | ||
Net revenues | 8,184 | (16)% | 14% | 17,910 | 15% | ||
Provision for credit losses | (55) | N.M. | N.M. | 41 | (78)% | ||
Operating expenses | 5,075 | (2)% | 19% | 10,228 | 15% | ||
Global Banking & Markets Highlights
- 2Q24 net revenues were higher YoY
- Investment banking fees reflected significantly higher net revenues in Debt underwriting, higher net revenues in Equity underwriting and slightly higher net revenues in Advisory
- FICC reflected higher net revenues in intermediation and significantly higher net revenues in financing
- Equities reflected higher net revenues in intermediation, partially offset by slightly lower net revenues in financing
- Investment banking fees backlog3 increased significantly QoQ, driven by Advisory and Debt underwriting
- 2Q24 select data3:
- Total assets of $1.40 trillion
- Loan balance of $123 billion
- Net interest income of $815 million
Global Banking & Markets Net Revenues ($ in millions)
Pre-tax earnings | $ | 3,164 | (29)% | 11% | $ | 7,641 | 17% |
Net earnings | $ | 2,458 | (30)% | 18% | $ | 5,990 | 18% |
Net earnings to common | $ | 2,338 | (31)% | 18% | $ | 5,715 | 18% |
Average common equity | $ | 76,071 | 1% | 7% | $ | 75,424 | 7% |
Return on average common equity | 12.3% | (5.7)pp | 1.2pp | 15.2% | 1.4pp | ||
$8,184
$1,733
$3,180
$3,169
$102
$9,726
$2,080
$4,323
$3,311
$12
$7,189 | Investment | ||
$1,431 | banking fees | ||
FICC | |||
$2,711 | Equities | ||
Other | |||
$2,966 | |||
$81 |
2Q24 | 1Q24 | 2Q23 | 3 |
Global Banking & Markets - Net Revenues
Net Revenues
vs. | |||||||
vs. | vs. | 2Q24 | 2Q23 | ||||
$ in millions | 2Q24 | 1Q24 | 2Q23 | YTD | YTD | ||
Advisory | $ | 688 | (32)% | 7% | $ | 1,699 | 16% |
Equity underwriting | 423 | 14% | 25% | 793 | 34% | ||
Debt underwriting | 622 | (11)% | 39% | 1,321 | 38% | ||
Investment banking fees | 1,733 | (17)% | 21% | 3,813 | 27% | ||
FICC intermediation | 2,330 | (33)% | 12% | 5,801 | 8% | ||
FICC financing | 850 | - | 37% | 1,702 | 34% | ||
FICC | 3,180 | (26)% | 17% | 7,503 | 13% | ||
Equities intermediation | 1,786 | (10)% | 17% | 3,775 | 15% | ||
Equities financing | 1,383 | 5% | (3)% | 2,705 | - | ||
Equities | 3,169 | (4)% | 7% | 6,480 | 8% | ||
Other | 102 | 750% | 26% | 114 | N.M. | ||
Net revenues | $ | 8,184 | (16)% | 14% | $ | 17,910 | 15% |
Global Banking & Markets Net Revenues Highlights
- 2Q24 Investment banking fees were significantly higher YoY
- Advisory net revenues were slightly higher
- Equity underwriting primarily reflected an increase in convertible and initial public offerings
- Debt underwriting primarily reflected a significant increase in leveraged finance activity
- 2Q24 FICC net revenues were higher YoY
- FICC intermediation reflected significantly higher net revenues in interest rate products and currencies and higher net revenues in mortgages, partially offset by significantly lower net revenues in commodities and lower net revenues in credit products
- FICC financing reflected significantly higher net revenues from mortgages and structured lending
- 2Q24 Equities net revenues were higher YoY
- Equities intermediation reflected significantly higher net revenues in derivatives, partially offset by lower net revenues in cash products
- Equities financing reflected significantly lower net revenues from portfolio financing, largely offset by significantly higher net revenues from prime financing
4
Asset & Wealth Management
Financial Results
vs. | |||||||
vs. | vs. | 2Q24 | 2Q23 | ||||
$ in millions | 2Q24 | 1Q24 | 2Q23 | YTD | YTD | ||
Management and other fees: | |||||||
Asset management | $ | 1,099 | (1)% | 7% | $ | 2,212 | 7% |
Wealth management | 1,437 | 7% | 8% | 2,776 | 8% | ||
Total Management and other fees | 2,536 | 3% | 8% | 4,988 | 8% | ||
Incentive fees | 46 | (48)% | 84% | 134 | 72% | ||
Private banking and lending | 707 | 4% | (19)% | 1,389 | 13% | ||
Equity investments | 292 | 32% | N.M. | 514 | N.M. | ||
Debt investments | 297 | (14)% | 51% | 642 | 6% | ||
Net revenues | 3,878 | 2% | 27% | 7,667 | 22% | ||
Provision for credit losses | (58) | (164)% | N.M. | (80) | 85% | ||
Operating expenses | 3,037 | 4% | (7)% | 5,971 | (7)% | ||
Pre-tax earnings | $ | 899 | 3% | N.M. | $ | 1,776 | 380% |
Net earnings | $ | 700 | 1% | N.M. | $ | 1,392 | 383% |
Net earnings to common | $ | 673 | 3% | N.M. | $ | 1,326 | 489% |
Average common equity | $ | 26,058 | (2)% | (16)% | $ | 26,213 | (18)% |
Return on average common equity | 10.3% | 0.4pp | 13.4pp | 10.1% | 8.7pp | ||
Asset & Wealth Management Highlights
- 2Q24 net revenues were higher YoY
- Management and other fees primarily reflected the impact of higher average AUS
- Private banking and lending net revenues reflected the impact of the sale of the Marcus loans portfolio in 2023 (including a gain of approximately $100 million related to the sale of substantially all of the remaining Marcus loans portfolio in 2Q23)
- Equity investments primarily reflected net gains from real estate investments compared with significant net losses in 2Q23
- Debt investments reflected significantly lower net losses from real estate investments, partially offset by significantly lower net interest income due to a reduction in the Debt investments balance sheet
- 2Q24 YTD pre-tax margin of 23%
- 2Q24 select data3:
- Total assets of $193 billion
- Loan balance of $44 billion, of which $34 billion related to Private banking and lending
- Net interest income of $723 million
- Total Wealth management client assets6 of ~$1.5 trillion
Asset & Wealth Management Net Revenues ($ in millions)
$3,878 | $3,789 | $3,047 | Management and | ||||||
other fees | |||||||||
Incentive | |||||||||
$2,536 | $2,452 | fees | |||||||
$2,354 | Private banking | ||||||||
and lending | |||||||||
$46 | $88 | Equity | |||||||
$707 | $682 | $25 | investments | ||||||
$874 | Debt | ||||||||
$292 | $222 | investments | |||||||
$197 | |||||||||
$297 | $345 | ||||||||
$(403) | |||||||||
2Q24 | 1Q24 | 2Q23 | 5 |
Asset & Wealth Management - Assets Under Supervision
AUS Highlights3
- During the quarter, AUS increased $86 billion to a record $2.93 trillion
- Net inflows across all asset classes
- Net market appreciation in equity assets
- Total AUS net inflows of $71 billion during the quarter, of which:
- $45 billion of net inflows in Third-party distributed client channel
- $17 billion of net inflows in Institutional client channel
- $9 billion of net inflows in Wealth management client channel
AUS Rollforward3
$ in billions | 2Q24 | 1Q24 | 2Q23 | |||
Beginning balance | $ | 2,848 | $ | 2,812 | $ | 2,672 |
Long-term AUS net inflows / (outflows) | 31 | 24 | 8 | |||
Liquidity products | 40 | (39) | 4 | |||
Total AUS net inflows / (outflows) | 71 | (15) | 12 | |||
Acquisitions / (dispositions) | - | - | - | |||
Net market appreciation / (depreciation) | 15 | 51 | 30 | |||
Ending balance | $ | 2,934 | $ | 2,848 | $ | 2,714 |
AUS by Asset Class3
$ in billions | 2Q24 | 1Q24 | 2Q23 | ||||||
Alternative investments | $ | 314 | $ | 296 | $ | 267 | |||
Equity | 735 | 713 | 627 | ||||||
Fixed income | 1,147 | 1,141 | 1,056 | ||||||
Long-term AUS | 2,196 | 2,150 | 1,950 | ||||||
Liquidity products | 738 | 698 | 764 | ||||||
Total AUS | $ | 2,934 | $ | 2,848 | $ | 2,714 | |||
AUS by Client Channel3
$ in billions | 2Q24 | 1Q24 | 2Q23 | ||||
Institutional | $ | 1,063 | $ | 1,048 | $ | 955 | |
Wealth management | 865 | 845 | 772 | ||||
Third-party distributed | 1,006 | 955 | 987 | ||||
Total AUS | $ | 2,934 | $ | 2,848 | $ | 2,714 | |
2Q24 AUS by Region and Vehicle3 | |||
7% | 13% | ||
23% | |||
Region | 70% | 31% | Vehicle 56% |
6
Asset & Wealth Management - Alternative Investments
Alternative Investments Highlights3
- 2Q24 Management and other fees from alternative investments were $548 million, up 5% compared with 2Q23
- During the quarter, alternative investments AUS increased $18 billion to $314 billion
- 2Q24 gross third-party alternatives fundraising across strategies was $22 billion, including:
- $9 billion in corporate equity, $4 billion in credit, $4 billion in real estate and $5 billion in hedge funds and other
- $287 billion raised since the end of 2019
- During the quarter, on-balance sheet alternative investments declined by $3.3 billion to $40.7 billion
- Historical principal investments5 declined by $2.2 billion to $12.6 billion (attributed equity of $5 billion) and included $2.5 billion of loans, $3.1 billion of debt securities, $3.6 billion of equity securities and $3.4 billion of CIE investments and other
Alternative Investments AUS and Effective Fees3
2Q24 | ||||
$ in billions | Average AUS | Effective Fees (bps) | ||
Corporate equity | $ | 115 | 76 | |
Credit | 56 | 70 | ||
Real estate | 25 | 54 | ||
Hedge funds and other | 70 | 59 | ||
Funds and discretionary accounts | 266 | 68 | ||
Advisory accounts | 38 | 18 | ||
Total alternative investments AUS | $ | 304 | 62 |
On-Balance Sheet Alternative Investments3
$ in billions | 2Q24 | ||
Loans | $ | 10.2 | |
Debt securities | 9.8 | ||
Equity securities | 13.5 | ||
CIE investments and other7 | 7.2 | ||
Total On-B/S alternative investments | $ | 40.7 | |
$ in billions | 2Q24 | ||
Client co-invest | $ | 19.6 | |
Firmwide initiatives / CRA investments | 8.5 | ||
Historical principal investments5 | 12.6 | ||
Total On-B/S alternative investments | $ | 40.7 | |
Historical Principal Investments Rollforward | |||
$ in billions | 2Q24 | ||
Beginning balance | $ | 14.8 | |
Net mark-ups /(mark-downs) | - | ||
Additions | 0.2 | ||
Dispositions / paydowns8 | (2.4) | ||
Net change | $ | (2.2) | |
Ending balance | $ | 12.6 |
7
Platform Solutions
Financial Results
vs. | |||||||
vs. | vs. | 2Q24 | 2Q23 | ||||
$ in millions | 2Q24 | 1Q24 | 2Q23 | YTD | YTD | ||
Consumer platforms | $ | 599 | (3)% | 4% | $ | 1,217 | 14% |
Transaction banking and other | 70 | (13)% | (15)% | 150 | (4)% | ||
Net revenues | 669 | (4)% | 2% | 1,367 | 12% | ||
Provision for credit losses | 395 | 62% | (27)% | 639 | (21)% | ||
Operating expenses | 421 | (26)% | (57)% | 992 | (38)% | ||
Pre-tax earnings / (loss) | $ | (147) | (26)% | 83% | $ | (264) | 78% |
Net earnings / (loss) | $ | (115) | (25)% | 83% | $ | (207) | 77% |
Platform Solutions Highlights
- 2Q24 net revenues were slightly higher YoY
- Consumer platforms reflected higher average credit card balances and higher average deposit balances, largely offset by the impact of the sale of GreenSky in 1Q24
- Transaction banking and other reflected lower average deposit balances
- 2Q24 provision for credit losses of $395 million reflected net provisions related to the credit card portfolio (driven by net charge-offs)
- 2Q24 select data3:
- Total assets of $61 billion
- Loan balance of $17 billion
- Net interest income of $704 million
Platform Solutions Net Revenues ($ in millions)
Net earnings / (loss) to common | $ | (120) | (21)% | 82% | $ | (219) | 76% |
Average common equity | $ | 4,347 | (8)% | 8% | $ | 4,552 | 15% |
Return on average common equity | (11.0)% | (2.6)pp | 55.8pp | (9.6)% | 37.1pp | ||
$669 | $698 | $659 |
$599 | $618 | $577 |
$70 | $80 | $82 |
2Q24 | 1Q24 | 2Q23 |
Consumer platforms
Transaction banking and other
8
Loans and Net Interest Income
Loans and Net Interest Income Highlights3
- 2Q24 loans were unchanged QoQ
- Gross loans by type: $180 billion - amortized cost, $6 billion - fair value, $3 billion - held for sale
- Average loans of $184 billion
- Total allowance for loan losses and losses on lending commitments was $5.46 billion ($4.81 billion for funded loans)
- $3.07 billion for wholesale loans, $2.39 billion for consumer loans
- Net charge-offs of $359 million for an annualized net charge-off rate of 0.8%
- 0.0% for wholesale loans, 8.4% for consumer loans
- 2Q24 net interest income increased 33% YoY, reflecting an increase in higher-yielding assets and a shift towards non-interest-bearing liabilities
- 2Q24 average interest-earning assets of $1.56 trillion
Loans by Segment3 ($ in billions)
$184 | $184 | $178 |
$123 | $122 | $110 |
$44 | $45 | $49 |
$17 | $17 | $19 |
2Q24 | 1Q24 | 2Q23 |
Global Banking & Markets
Asset & Wealth Management
Platform
Solutions
Loans by Type3
$ in billions | 2Q24 | 1Q24 | 2Q23 |
Metrics
2.7%
Net Interest Income by Segment ($ in millions)
Corporate | $ | 35 | $ | 36 | $ | 38 |
Commercial real estate | 27 | 27 | 28 | |||
Residential real estate | 24 | 24 | 24 | |||
Securities-based lending | 15 | 14 | 15 | |||
Other collateralized lending | 67 | 67 | 54 | |||
Installment | - | - | 5 | |||
Credit cards | 19 | 19 | 17 | |||
Other | 2 | 2 | 2 | |||
Allowance for loan losses | (5) | (5) | (5) | |||
Total loans | $ | 184 | $ | 184 | $ | 178 |
ALLL to Total
Gross Loans, at Amortized Cost
1.5%
ALLL to Gross
Wholesale Loans, at
Amortized Cost
13.5%
ALLL to Gross
Consumer Loans, at
Amortized Cost
~80%
Gross Loans
Secured
$2,242 | ||
$815 | $1,608 | $1,684 |
$202 | ||
$243 | ||
$723 | $691 | $821 |
$704 | $674 | $661 |
2Q24 | 1Q24 | 2Q23 |
Global Banking
& Markets
Asset & Wealth
Management
Platform
Solutions
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The Goldman Sachs Group Inc. published this content on 15 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2024 11:27:05 UTC.