Goldman Sachs' Record Underwriting Boosts Revenue, Assets Reach $3.14 Trillion

Goldman Sachs Group Inc. (GS) reported a strong fourth quarter and full-year 2024, driven by record-breaking underwriting activity and a significant increase in assets under supervision (AUS). The investment bank's shares traded higher after the earnings release, reflecting investors' confidence in the firm's performance and growth prospects.

Record Underwriting Activity

Goldman Sachs' fourth-quarter revenue surged by 23% year-over-year (YoY) to $13.87 billion, beating the consensus of $12.39 billion. This impressive growth was primarily driven by a 33% increase in overall revenue at the Global Banking and Markets unit, fueled by a 98% rise in equity underwriting revenue and a 51% increase in debt underwriting revenue. The two business lines are housed within the bank's Global Banking and Markets unit.

The bank's total fourth-quarter revenue increased to $8.45 billion from $6.35 billion in the year-ago period, but it was slightly lower than the $8.55 billion reported in the third quarter. Despite a 31% drop in debt investment revenue within the Asset & Wealth Management business, the firm's total fourth-quarter revenue was boosted by a 195% increase in incentive fees and a 19% increase in management and other fees.

Assets Under Supervision Reach Record High

Goldman Sachs' assets under supervision (AUS) reached a record high of $3.14 trillion in 2024, up from $2.812 trillion at the end of 2023. This significant increase was driven by strong growth in more durable revenues, positive momentum in fundraising, and a reduction in historical principal investments (HPI). The firm's alternatives fundraising totaled $72 billion in 2024, surpassing the $323 billion raised since 2019YE. Additionally, the firm's total wealth management client assets soared to ~$1.6 trillion.

Strategic Focus on Growth and Acquisitions

Goldman Sachs' strategic focus on growth and acquisitions has contributed to its overall performance. The firm has made several strategic acquisitions, such as the acquisition of General Motors' credit card business and United Capital, a registered investment advisor. These acquisitions have expanded the firm's offerings and client base, driving consistent increases in revenue and assets under supervision.

In conclusion, Goldman Sachs' record-breaking underwriting activity and significant increase in assets under supervision have driven the firm's strong fourth-quarter and full-year 2024 performance. The investment bank's strategic focus on growth and acquisitions has also contributed to its overall success. As the firm continues to execute on its strategic objectives, investors can expect Goldman Sachs to maintain its momentum and deliver strong shareholder returns.