On April 15, 2024, Goldman Sachs, a premier global financial institution, unveiled its first quarter earnings for 2024. The report showcases an impressive financial performance, underscored by robust growth in net revenues, earnings, and earnings per share.
Key Highlights from Goldman Sachs’ Q1 2024 Earnings:
- Net Revenues: Goldman Sachs posted net revenues of $14.21 billion for the first quarter, marking a 16% increase from the same period in 2023 and a significant 26% rise from the fourth quarter of 2023. This growth is attributed to increased revenues across all segments.
- Global Banking & Markets: This division reported net revenues of $9.73 billion, up 15% from Q1 2023 and an impressive 53% from Q4 2023. The increase was primarily driven by higher investment banking fees and strong performance in fixed-income currencies, commodities, and equities.
- Asset & Wealth Management: The division enjoyed net revenues of $3.79 billion, an 18% increase compared to the first quarter of 2023. Notable growth areas included private banking and lending, equity investments, and management and other fees. Assets under management (AUM) also reached a new high of $2.85 trillion.
- Platform Solutions: Recorded net revenues of $698 million in the first quarter of 2024, showing a 24% increase from the same quarter the previous year. The rise was mainly due to higher revenues in consumer platforms, with increased credit card and deposit balances.
- Financial Performance: The firm achieved an annualized return on average common shareholders’ equity (ROE) of 14.8% and an annualized return on average tangible common shareholders’ equity (ROTE) of 15.9%, demonstrating solid earnings power and efficient capital usage.
- Dividend and Capital Return: The Board of Directors declared a dividend of $2.75 per common share, payable on June 27, 2024, to shareholders of record as of May 30, 2024. During the quarter, Goldman Sachs also returned $2.43 billion of capital to shareholders through repurchases and dividends.
Goldman shares closed at $400.88 (up 2.92%) yesterday.
Last month, Bloomberg reported that hedge fund clients of Goldman Sachs have shown an increased interest in trading cryptocurrency options this year.
According to Max Minton, Goldman’s Head of Digital Assets for the Asia Pacific, there has been a noticeable uptick in client engagement following the approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. in January. This development revitalized Goldman’s clientele’s interest in cryptocurrencies. “Since the beginning of the year, there’s been an increase in client registrations, engagement, and transaction volumes,” Minton explained in an interview with Bloomberg.
Goldman Sachs currently offers options for cash-settled Bitcoin (BTC) and Ether (ETH) and futures for BTC and ETH listed on the CME.
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