Goldman Sachs Group Inc. (GS) reported robust earnings for the second quarter of 2024, showcasing impressive growth across key segments. The financial giant recorded net revenues of $12.73 billion and net earnings of $3.04 billion for the quarter ending June 30, 2024. This translated to a diluted earnings per share (EPS) of $8.62, surpassing the consensus estimate of $8.35.
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GS’ Revenue Beats Expectations
Goldman Sachs posted quarterly revenues of $12.73 billion, exceeding the anticipated $12.456 billion. This 17% year-over-year increase was driven by higher net revenues in Global Banking & Markets, and Asset & Wealth Management.
Goldman Sachs’ Segment Performance
Global Banking & Markets: Revenues reached $8.18 billion, a 14% increase from last year. This growth was fueled by a 21% rise in investment banking fees, totaling $1.73 billion. Key contributors were elevated revenues in Debt and Equity underwriting, including leveraged finance and IPOs, along with slight gains in advisory revenues.
Asset & Wealth Management: This segment saw a 27% increase in revenue, hitting $3.88 billion for the second quarter.
FICC: Fixed Income, Currency, and Commodities revenues rose 17% year-over-year to $3.18 billion, primarily due to higher net revenues in FICC intermediation driven by interest rate products, currencies, and mortgages.
Investors can use TipRanks’ Revenue Breakdown tool to see where GS generates the most revenue.
Credit Loss Provisions
The provision for credit losses was $282 million for the quarter, a significant improvement from $615 million a year ago. This reduction reflects net provisions related to the credit card portfolio, driven by net charge-offs.
GS’ Dividend and Share Repurchases
On July 12, 2024, the Board of Directors announced an increase in the quarterly dividend to $3.00 per common share, up from $2.75. This will be payable on September 27, 2024, to shareholders of record on August 30, 2024. Additionally, Goldman Sachs repurchased $3.50 billion worth of common shares during the quarter.
Goldman Sachs’ CEO’s Remarks
David Solomon, Chairman and CEO of Goldman Sachs, commented, “We are pleased with our solid second quarter results and our overall performance in the first half of the year. Our One Goldman Sachs operating approach is allowing us to bring the whole firm to our clients, deepening our relationships and serving them in an improving, but complex environment.”
Is GS Stock a Buy?
Overall, the Street has a Strong Buy consensus rating on Goldman Sachs, with 13 analysts deeming it a Buy and 2 giving it a Hold. The average GS price target is $491, implying an upside of 2.32%.
