Goldman Sachs Q3 2024 Results Filed

TL;DR

**GS Q3 2024 results are in!**

AI Summary

Goldman Sachs Group Inc. reported its third-quarter results for the period ending September 30, 2024. The company's filing provides details on its financial performance, including revenue, net earnings, and other key financial metrics. Specific dollar amounts and dates related to its operations and financial position are detailed within the report.

Why It Matters

This filing provides insight into the financial health and performance of a major global financial institution, impacting investors and the broader financial markets.

Risk Assessment

Risk Level: medium — As a major financial institution, Goldman Sachs is subject to significant market, credit, and regulatory risks.

Key Numbers

• 20240930 — Period End Date (The report covers financial activities up to this date.)
• 20241104 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• GOLDMAN SACHS GROUP INC (company) — Filer
• 20240930 (date) — Period of Report
• 20241104 (date) — Filing Date
• 212-902-1000 (dollar_amount) — Business Phone

FAQ

Filing Documents

• gs-20240930.htm (10-Q) — 9312KB
• gs-9302024x10qexhibit151.htm (EX-15.1) — 5KB
• gs-9302024x10qexhibit311.htm (EX-31.1) — 28KB
• gs-9302024x10qexhibit321.htm (EX-32.1) — 16KB
• gs-20240930_g1.jpg (GRAPHIC) — 29KB
• gs-20240930_g2.jpg (GRAPHIC) — 19KB
• 0000886982-24-000025.txt ( ) — 45126KB
• gs-20240930.xsd (EX-101.SCH) — 232KB
• gs-20240930_cal.xml (EX-101.CAL) — 170KB
• gs-20240930_def.xml (EX-101.DEF) — 1357KB
• gs-20240930_lab.xml (EX-101.LAB) — 1964KB
• gs-20240930_pre.xml (EX-101.PRE) — 1749KB
• gs-20240930_htm.xml (XML) — 10831KB

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 32 Note 7. Derivatives and Hedging Activities 33 Note 8. Investments 39 Note 9. Loans 42 Note 10. Fair Value Option 51 Note 11. Collateralized Agreements and Financings 53 Note 12. Other Assets 57 Note 13. Deposits 59 Note 14. Unsecured Borrowings 60 Note 15. Other Liabilities 62 Note 16. Securitization Activities 63 Note 17. Variable Interest Entities 65 Note 18. Commitments, Contingencies and Guarantees 69 Note 19. Shareholders' Equity 73 Note 20. Regulation and Capital Adequacy 76 Note 21. Earnings Per Common Share 83 Note 22. Transactions with Affiliated Funds 83 Note 23. Interest Income and Interest Expense 84 Note 24. Income Taxes 84 Note 25. Business Segments 85 Note 26. Credit Concentrations 87 Note 27. Legal Proceedings 88 Page No. Report of Independent Registered Public Accounting Firm 101 Statistical Disclosures 102 Item 2

Management's Discussion and Analysis of Financial Condition

Management's Discussion and Analysis of Financial Condition and Results of Operations 104 Introduction 104 Executive Overview 104 Business Environment 105 Critical Accounting Policies 106 Use of Estimates 108 Recent Accounting Developments 109 Results of Operations 110 Balance Sheet and Funding Sources 128 Capital Management and Regulatory Capital 132 Regulatory and Other Matters 137 Off-Balance Sheet Arrangements 138 Risk Management 139 Overview and Structure of Risk Management 139 Liquidity Risk Management 143 Market Risk Management 150 Credit Risk Management 155 Operational Risk Management 164 Cybersecurity Risk Management 166 Model Risk Management 167 Other Risk Management 168 Available Information 170

Forward-Looking Statements

Forward-Looking Statements 170 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 174 Item 4

Controls and Procedures

Controls and Procedures 174 PART II OTHER INFORMATION 174 Item 1

Legal Proceedings

Legal Proceedings 174 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 174 Item 5 Other Information 174 Item 6 Exhibits 175

SIGNATURES

SIGNATURES 175 Goldman Sachs September 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 September Nine Months Ended September in millions, except per share amounts 2024 2023 2024 2023 Revenues Investment banking $ 1,864 $ 1,555 $ 5,682 $ 4,565 Investment management 2,649 2,409 7,673 7,054 Commissions and fees 873 883 3,001 2,864 Market making 4,005 4,958 14,222 14,742 Other principal transactions 685 465 2,592 699 Total non-interest revenues 10,076 10,270 33,170 29,924 Interest income 21,448 18,257 61,443 50,031 Interest expense 18,825 16,710 54,970 45,019 Net interest income 2,623 1,547 6,473 5,012 Total net revenues 12,699 11,817 39,643 34,936 Provision for credit losses 397 7 997 451 Operating expenses Compensation and benefits 4,122 4,188 12,947 11,897 Transaction based 1,701 1,452 4,852 4,242 Market development 159 136 465 454 Communications and technology 498 468 1,468 1,416 Depreciation and amortization 621 1,512 1,894 4,076 Occupancy 242 267 733 785 Professional fees 400 377 1,177 1,152 Other expenses 572 654 1,970 1,978 Total operating expenses 8,315 9,054 25,506 26,000 Pre-tax earnings 3,987 2,756 13,140 8,485 Provision for taxes 997 698 2,975 1,977 Net earnings 2,990 2,058 10,165 6,508 Preferred stock dividends 210 176 563 468 Net earnings applicable to common shareholders $ 2,780 $ 1,882 $ 9,602 $ 6,040 Earnings per common share Basic $ 8.52 $ 5.52 $ 28.98 $ 17.52 Diluted $ 8.40 $ 5.47 $ 28.64 $ 17.39 Average common shares Basic 324.8 338.7 330.0 342.5 Diluted 330.8 343.9 335.3 347.4 Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended September Nine Months Ended September $ in millions 2024 2023 2024 2023 Net earnings $ 2,990 $ 2,058 $ 10,165 $ 6,508 Other comprehensive income/(loss) adjustments, net of tax: Currency translation ( 25 ) ( 16 ) ( 3 ) ( 59 ) Debt valuation adjustment ( 95 ) 328 ( 383 ) ( 2

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 September 2024, June 2024 and September 2023 refer to the firm's periods ended, or the dates, as the context requires, September 30, 2024, June 30, 2024 and September 30, 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 cr

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 50 % of total non-interest revenues for the three months ended September 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 nine months ended September 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 both the three and nine months ended September 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-refu

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