Goldman Sachs Q4 2024: Diverging Views on Regulation, Platform Strategy, and Alternative Investments

Revenue and Profit Growth:
- Goldman Sachs reported revenue of $13.9 billion for Q4 2024, an increase of 16% year-over-year, with earnings per share at $11.95 and an ROE of 14.6%.
- The growth was driven by strong performance across Global Banking & Markets and increased durable revenue streams in Asset & Wealth Management.

Financial Markets and Capital Solutions:
- Net revenues from the Global Banking & Markets segment reached $35 billion, marking a 16% year-over-year increase.
- The capital markets activity was supported by a 35% increase in FICC revenues and 36% growth in equities financing, driven by improved financing conditions and increased client balances.

Asset & Wealth Management Performance:
- Asset & Wealth Management reported record management and other fees of $2.8 billion, a 15% increase year-over-year.
- This growth was attributed to increased management and other fee streams, private banking, and lending revenues, reflecting strong client engagement and long-term fee-based net inflows.

Capital Management and Return on Equity:
- Goldman Sachs achieved a common equity Tier 1 ratio of 15% under the standardized approach, with a $2 billion return to shareholders through stock repurchases and $965 million in dividends.
- The company aims to improve returns by enhancing its exposure to durable revenue streams and managing legacy principal investments to reduce potential drag on overall ROE.