- Goldman Sachs reported net revenue of $12.73 billion, up 17% year-over-year (y/y), surpassing estimates of $12.39 billion.
- FICC (Fixed Income, Currency, and Commodities) sales & trading revenue stood at $3.18 billion, also up 17% y/y, beating the estimate of $3.02 billion.
- Global Banking & Markets net revenues were $8.18 billion, a 14% increase y/y, ahead of the $7.95 billion estimate.
- Investment banking revenue totaled $1.73 billion, up 21% y/y, though slightly below the $1.82 billion estimate.
- Equities sales & trading revenue reached $3.17 billion, marking a 6.8% increase y/y and above the $3.08 billion estimate.
- Advisory revenue was $688 million, a 6.7% rise y/y, but under the $778.1 million estimate.
- Equity underwriting revenue came in at $423 million, up 25% y/y, ahead of the $411.1 million estimate.
- Debt underwriting revenue was $622 million, up 39% y/y, exceeding the $614.7 million estimate.
- Platform Solutions reported a pretax loss of $147 million, better than the estimated loss of $207.3 million.
- Total deposits were $433 billion, a 1.8% decrease quarter-over-quarter (q/q).
- Provision for credit losses was $282 million, down 54% y/y, and below the $468 million estimate.
- Total operating expenses reached $8.53 billion, a slight decrease of 0.1% y/y, but higher than the $8.1 billion estimate.
- Compensation expenses amounted to $4.24 billion, up 17% y/y, above the $4.06 billion estimate.
- Annualized Return on Equity (ROE) was 10.9%, compared to the estimate of 10.5%.
- Return on Tangible Equity was 11.6%, slightly above the 11.4% estimate.
- The Standardized Common Equity Tier 1 (CET1) ratio stood at 14.8%, higher than the 14.5% estimate.
- Book value per share was $327.13, compared to $309.33 y/y.
- The efficiency ratio was 67%, missing the estimate of 65.3%.
- Assets under management (AUM) were $2.93 trillion, an 8.1% increase y/y, exceeding the $2.91 trillion estimate.
- Total AUS (Assets Under Supervision) net inflows were $71 billion, compared to $12 billion y/y, surpassing the $31.62 billion estimate.
- Loans were $184 billion, below the $239.61 billion estimate.
Goldman Sachs Group on Smartkarma
Analysts on Smartkarma, such as Pranay Yadav, are optimistic about Goldman Sachs Group‘s performance in 2024. In a two-part series, Mint Finance discusses how the uncertain interest rate outlook for 2024 could impact the company’s stock. Expectations diverge from the Fed’s projections, with forecasts suggesting possible rate cuts. Despite a potential slowdown in the US economy, the outlook points to higher deal-making benefiting Goldman. Market sentiment is positive, with analysts leaning towards a Buy rating and an average upside potential of 11%.
In the first part of the series, Pranay Yadav highlights Goldman Sachs’ strong fiscal year and Q4 2023 earnings, surpassing analysts’ expectations. The company’s performance was driven by increased deal-making and cost reductions. While facing challenges in FY2023 due to real estate losses and strategic shifts, Goldman’s Q4 earnings greatly exceeded estimates. Heading into a more accommodative monetary environment in 2024, analysts anticipate Goldman Sachs to outperform, supported by continued deal-making and improved operational efficiency.
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
Based on the Smartkarma Smart Scores, the long-term outlook for Goldman Sachs Group appears promising. With a high Momentum score of 5, the company is showing strong positive performance trends. This indicates that Goldman Sachs Group is likely to continue its upward trajectory in the future, making it an attractive investment option.
Additionally, Goldman Sachs Group scores well in the categories of Value, Dividend, and Growth, with scores of 4, 3, and 3 respectively. These scores suggest that the company is positioned well in terms of its financial strength, dividend payouts, and potential for growth. Although the Resilience score is slightly lower at 2, the overall outlook for Goldman Sachs Group remains positive, reflecting its solid performance across key factors.
Summary: The Goldman Sachs Group, Inc., a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investments, asset management and securities services. The Company provides services to corporations, financial institutions, governments, and high-net worth individuals.
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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