Goldman Sachs Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Goldman Sachs Group Inc. has filed its Q1 2024 10-Q report, detailing financial activities and corporate structure.</b>

AI Summary

GOLDMAN SACHS GROUP INC (GSCE) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Goldman Sachs Group Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business address is 200 West Street, New York, NY 10282. The filing includes data related to various preferred stock and medium-term notes. The report was filed on May 3, 2024.

Why It Matters

For investors and stakeholders tracking GOLDMAN SACHS GROUP INC, this filing contains several important signals. This 10-Q filing provides a detailed look into Goldman Sachs' financial performance and position for the first quarter of 2024, crucial for investors and analysts assessing the firm's health. The report's disclosures on various financial instruments, including preferred stock and debt, offer insights into the company's capital structure and risk management strategies.

Risk Assessment

Risk Level: medium — GOLDMAN SACHS GROUP INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) for a large financial institution, which inherently carries market and operational risks, but does not indicate any immediate severe financial distress.

Analyst Insight

Investors should review the detailed financial statements and risk factor disclosures within the 10-Q to understand Goldman Sachs' current performance and outlook.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-03 — Filing Date (FILED AS OF DATE)
• 2024-01-01 — Quarter Start Date (Reporting Period)
• 2023-01-01 — Prior Year Quarter Start Date (Reporting Period)
• 2023-03-31 — Prior Year Quarter End Date (Reporting Period)

Key Players & Entities

• GOLDMAN SACHS GROUP INC (company) — FILER
• 200 WEST STREET (address) — BUSINESS ADDRESS
• NEW YORK (location) — BUSINESS ADDRESS CITY
• 10282 (postal_code) — BUSINESS ADDRESS ZIP
• 212-902-1000 (phone_number) — BUSINESS PHONE
• 0000886982-24-000016 (accession_number) — ACCESSION NUMBER
• 20240331 (date) — CONFORMED PERIOD OF REPORT
• 20240503 (date) — FILED AS OF DATE

FAQ

Industry Context

Goldman Sachs operates in the investment banking and financial services industry, a sector characterized by significant regulatory oversight and market volatility.

Regulatory Implications

As a major financial institution, Goldman Sachs is subject to extensive regulation by bodies such as the SEC and Federal Reserve, impacting its operations and capital requirements.

What Investors Should Do

1. Analyze the consolidated financial statements for Q1 2024.
2. Review disclosures related to trading assets and liabilities.
3. Examine any updates to risk factors and legal proceedings.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-03: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 10-K annual report.

Filing Documents

• gs-20240331.htm (10-Q) — 8082KB
• gs-3312024x10qexhibit101.htm (EX-10.1) — 54KB
• gs-3312024x10qexhibit151.htm (EX-15.1) — 5KB
• gs-3312024x10qexhibit311.htm (EX-31.1) — 28KB
• gs-3312024x10qexhibit321.htm (EX-32.1) — 16KB
• gs-20240331_g1.jpg (GRAPHIC) — 40KB
• gs-20240331_g2.jpg (GRAPHIC) — 35KB
• 0000886982-24-000016.txt (&nbsp;) — 40657KB
• gs-20240331.xsd (EX-101.SCH) — 229KB
• gs-20240331_cal.xml (EX-101.CAL) — 167KB
• gs-20240331_def.xml (EX-101.DEF) — 1304KB
• gs-20240331_lab.xml (EX-101.LAB) — 1917KB
• gs-20240331_pre.xml (EX-101.PRE) — 1694KB
• gs-20240331_htm.xml (XML) — 9529KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Consolidated Statements of Earnings 1 Consolidated Statements of Comprehensive Income 1 Consolidated Balance Sheets 2 Consolidated Statements of Changes in Shareholders' Equity 3 Consolidated Statements of Cash Flows 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 Note 1. Description of Business 5 Note 2. Basis of Presentation 6 Note 3. Significant Accounting Policies 6 Note 4. Fair Value Measurements 12 Note 5. F air Value Hierarchy 17 Note 6. Trading Assets and Liabilities 31 Note 7. Derivatives and Hedging Activities 32 Note 8. Investments 38 Note 9. Loans 41 Note 10. Fair Value Option 50 Note 11. Collateralized Agreements and Financings 52 Note 12. Other Assets 56 Note 13. Deposits 58 Note 14. Unsecured Borrowings 59 Note 15. Other Liabilities 61 Note 16. Securitization Activities 62 Note 17. Variable Interest Entities 64 Note 18. Commitments, Contingencies and Guarantees 68 Note 19. Shareholders' Equity 72 Note 20. Regulation and Capital Adequacy 75 Note 21. Earnings Per Common Share 81 Note 22. Transactions with Affiliated Funds 81 Note 23. Interest Income and Interest Expense 82 Note 24. Income Taxes 82 Note 25. Business Segments 83 Note 26. Credit Concentrations 85 Note 27. Legal Proceedings 85 Page No. Report of Independent Registered Public Accounting Firm 98 Statistical Disclosures 99 Item 2

Management's Discussion and Analysis of Financial Condition

Management's Discussion and Analysis of Financial Condition and Results of Operations 101 Introduction 101 Executive Overview 101 Business Environment 102 Critical Accounting Policies 102 Use of Estimates 104 Recent Accounting Developments 105 Results of Operations 106 Balance Sheet and Funding Sources 121 Capital Management and Regulatory Capital 124 Regulatory and Other Matters 130 Off-Balance Sheet Arrangements 130 Risk Management 131 Overview and Structure of Risk Management 131 Liquidity Risk Management 135 Market Risk Management 142 Credit Risk Management 147 Operational Risk Management 156 Cybersecurity Risk Management 158 Model Risk Management 159 Other Risk Management 160 Available Information 162

Forward-Looking Statements

Forward-Looking Statements 162 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 166 Item 4

Controls and Procedures

Controls and Procedures 166 PART II OTHER INFORMATION 166 Item 1

Legal Proceedings

Legal Proceedings 166 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 166 Item 5 Other Information 166 Item 6 Exhibits 167

SIGNATURES

SIGNATURES 167 Goldman Sachs March 2024 Form 10-Q

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) Three Months Ended March in millions, except per share amounts 2024 2023 Revenues Investment banking $ 2,085 $ 1,578 Investment management 2,491 2,289 Commissions and fees 1,077 1,088 Market making 5,992 5,433 Other principal transactions 960 55 Total non-interest revenues 12,605 10,443 Interest income 19,555 14,938 Interest expense 17,947 13,157 Net interest income 1,608 1,781 Total net revenues 14,213 12,224 Provision for credit losses 318 ( 171 ) Operating expenses Compensation and benefits 4,585 4,090 Transaction based 1,497 1,405 Market development 153 172 Communications and technology 470 466 Depreciation and amortization 627 970 Occupancy 247 265 Professional fees 384 383 Other expenses 695 651 Total operating expenses 8,658 8,402 Pre-tax earnings 5,237 3,993 Provision for taxes 1,105 759 Net earnings 4,132 3,234 Preferred stock dividends 201 147 Net earnings applicable to common shareholders $ 3,931 $ 3,087 Earnings per common share Basic $ 11.67 $ 8.87 Diluted $ 11.58 $ 8.79 Average common shares Basic 335.6 346.6 Diluted 339.5 351.3 Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March $ in millions 2024 2023 Net earnings $ 4,132 $ 3,234 Other comprehensive income/(loss) adjustments, net of tax: Currency translation 26 ( 31 ) Debt valuation adjustment ( 556 ) ( 1 ) Pension and postretirement liabilities 16 14 Available-for-sale securities 115 427 Other comprehensive income/(loss) ( 399 ) 409 Comprehensive income $ 3,733 $ 3,643 The accompanying notes are an integral part of these consolidated financial statements. 1 Goldman Sachs March 2024 Form 10-Q THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) As of March December $ in millions 2024 2023 Assets Cash and cash equivalents

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1. Description of Business The Goldman Sachs Group, Inc. (Group Inc. or parent company), a Delaware corporation, together with its consolidated subsidiaries (collectively, the firm), is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world. The firm manages and reports its activities in the following three business segments: Global Banking & Markets The firm provides a broad range of services to a diverse group of corporations, financial institutions, investment funds and governments. Services include strategic advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense activities, restructurings and spin-offs, and equity and debt underwriting of public offerings and private placements. The firm facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. In addition, the firm makes markets in and clears institutional client transactions on major stock, options and futures exchanges worldwide and provides prime financing (including securities lending, margin lending and swaps), portfolio financing and other types of equity financing (including securities-based loans to individuals). The firm also provides lending to corporate clients, including through relationship lending and acquisition financing, and secured lending, through structured credit and asset-backed lending. In addition, the firm provides commodity financing to clients through structured transactions and also provides financing through securities purchased under agreements to resell (resale agreements). The firm also makes equity and debt investments related to Global Banking & Mar

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 2. Basis of Presentation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of Group Inc. and all other entities in which the firm has a controlling financial interest. Intercompany transactions and balances have been eliminated. These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the firm's Annual Report on Form 10-K for the year ended December 31, 2023. References to "the 2023 Form 10-K" are to the firm's Annual Report on Form 10-K for the year ended December 31, 2023. Certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements under U.S. GAAP and the rules of the SEC. These unaudited consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for a full year. All references to March 2024 and March 2023 refer to the firm's periods ended, or the dates, as the context requires, March 31, 2024 and March 31, 2023, respectively. All references to December 2023 refer to the date December 31, 2023. Any reference to a future year refers to a year ending on December 31 of that year. Certain reclassifications have been made to previously reported amounts to conform to the current presentation. Note 3. Significant Accounting Policies The firm's significant accounting policies include when and how to measure the fair value of assets and liabilities, measuring the allowance for credit losses on loans and lending commitmen

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Consolidation The firm consolidates entities in which the firm has a controlling financial interest. The firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE). Voting Interest Entities. Voting interest entities are entities in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the firm has a controlling majority voting interest in a voting interest entity, the entity is consolidated. Variable Interest Entities. A VIE is an entity that lacks one or more of the characteristics of a voting interest entity. The firm has a controlling financial interest in a VIE when the firm has a variable interest or interests that provide it with (i) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. See Note 17 for further information about VIEs. Equity-Method Investments. When the firm does not have a controlling financial interest in an entity but can exert significant influence over the entity's operating and financial policies, the investment is generally accounted for at fair value by electing the fair value option available under U.S. GAAP. Significant influence generally exists when the firm owns 20% to 50% of the entity's common stock or in-substa

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Revenue from Contracts with Clients. The firm recognizes revenue earned from contracts with clients for services, such as investment banking, investment management, and execution and clearing (contracts with clients), when the performance obligations related to the underlying transaction are completed. Revenues from contracts with clients represent approximately 40 % of total non-interest revenues for the three months ended March 2024 (including approximately 85 % of investment banking revenues, approximately 95 % of investment management revenues and all commissions and fees), and approximately 45 % of total non-interest revenues for the three months ended March 2023 (including approximately 85 % of investment banking revenues, approximately 95 % of investment management revenues and all commissions and fees). See Note 25 for information about net revenues by business segment. Investment Banking Advisory. Fees from financial advisory assignments are recognized in revenues when the services related to the underlying transaction are completed under the terms of the assignment. Non-refundable deposits and milestone payments in connection with financial advisory assignments are recognized in revenues upon completion of the underlying transaction or when the assignment is otherwise concluded. Expenses associated with financial advisory assignments are recognized when incurred and are included in transaction based expenses. Client reimbursements for such expenses are included in investment banking revenues. Underwriting. Fees from underwriting assignments are recognized in revenues upon completion of the underlying transaction based on the terms of the assignment. Expenses associated with underwriting assignments are generally deferred until the related revenue is recognized or the assignment is otherwise concluded. Such expenses are included in transaction based expenses for completed assignments. Investm

View Full Filing

View this 10-Q filing on SEC EDGAR