Goldman Sachs Q4 Results Top Estimates

Goldman Sachs

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(RTTNews) - Goldman Sachs Group, Inc. (GS) reported Wednesday that net profit for the fourth quarter more than doubled from last year, reflecting strong performance across all operating segments and lower provision for credit losses. Both earnings per share and quarterly revenues topped analysts' expectations.

In Wednesday's pre-market trading, GS is currently trading on the NYSE at $590.00, up $18.47 or 3.23 percent.

"I'm encouraged that we have met or exceeded almost all of the targets we set in our strategy to grow the firm five years ago, and as a result, have both grown our revenues by nearly 50% and enhanced the durability of our franchise," said David Solomon, Chairman and CEO.

For the fourth quarter, net earnings applicable to common shareholders surged to $3.92 billion or $11.95 per share from $1.87 billion or $5.48 per share in the prior-year quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $8.35 per share for the quarter. Analysts' estimates typically exclude special items.

Provision for credit losses for the quarter declined to $351 million from just $577 million last year, primarily reflecting lower net provisions related to the credit card portfolio, primarily driven by net charge-offs.

Total operating expenses were $8.26 billion for the third quarter, down 3 percent from last year, primarily reflecting the FDIC special assessment fee in the prior year period and significantly lower expenses, including impairments, related to commercial real estate in CIEs, partially offset by higher transaction based expenses.

Total net revenues for the quarter grew 23 percent to $13.87 billion from $12.70 billion in the same quarter last year, reflected higher net revenues across all segments, with significant growth in Global Banking & Markets. Analysts expected revenue of $12.46 billion for the quarter.

Net interest income surged 75 percent to $2.35 billion, while total non-interest revenues grew 15 percent to $11.52 billion from last year.

Net revenues in Global Banking & Markets were $8.48 billion for the quarter, up 33 percent from the previous year, driven by strong performance in Investment banking fees, Equities as well as Fixed Income, Currency and Commodities (FICC) financing.

Net revenues in Asset & Wealth Management grew 8 percent to $4.72 billion from the prior year, primarily reflected higher Management and other fees, significantly higher Incentive fees and higher net revenues in Private banking and lending.

Meanwhile, net revenues in Platform Solutions increased 16 percent to $669 billion from last year, reflecting higher net revenues in Consumer platforms.

On Tuesday, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $3.00 per common share to be paid on March 28, 2025 to common shareholders of record on February 28, 2025.

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