Goldman Sachs (GS) reported net earnings of $14.28 billion for 2024, a significant increase from $8.52 billion in 2023. This growth was accompanied by a rise in diluted earnings per share (EPS) to $40.54, compared to $22.87 in the prior year. The return on equity (ROE) also improved to 12.7% from 7.5% in 2023. Additionally, the book value per common share increased by 7.4% to $336.77 as of December 2024.

Net revenues for 2024 reached $53.51 billion, a 16% increase from 2023. This growth was driven by higher revenues in Global Banking & Markets and Asset & Wealth Management. Specifically, Global Banking & Markets saw significant increases in equities, investment banking fees, and fixed income, currency, and commodities (FICC) revenues. Asset & Wealth Management benefited from higher equity investment revenues and management fees. Platform Solutions also contributed slightly higher revenues.

Operating expenses decreased by 2% to $33.77 billion in 2024, reflecting lower impairments and other significant expenses from the prior year, such as write-downs related to GreenSky Holdings and goodwill impairments. However, these reductions were partially offset by higher compensation and benefits expenses due to improved performance. The efficiency ratio improved to 63.1% from 74.6% in 2023, indicating better cost management relative to revenue generation.

Goldman Sachs returned $11.80 billion to shareholders in 2024, including $8.00 billion in share repurchases and $3.80 billion in dividends. The firm's CET1 capital ratio stood at 15.0% under Standardized Capital Rules and 15.3% under Advanced Capital Rules as of December 2024, reflecting strong capital adequacy.

Asset & Wealth Management revenues grew by 16% to $16.14 billion in 2024, driven by significantly higher equity investment gains and increased management fees. Private banking and lending revenues also rose, benefiting from the sale of the Marcus loan portfolio in 2023 and higher deposit balances. However, debt investment revenues declined due to lower net interest income. Operating expenses in this segment fell by 9% to $11.83 billion, leading to a substantial increase in pre-tax earnings to $4.55 billion from $1.36 billion in 2023.

Global Banking & Markets revenues increased by 16% to $34.94 billion in 2024. Investment banking fees rose by 24%, driven by higher revenues in debt and equity underwriting, as well as advisory services. FICC revenues grew by 9%, supported by gains in FICC financing and intermediation, particularly in currencies, mortgages, and credit products. These gains were partially offset by declines in interest rate products and commodities.

Net interest income rose by 27% to $8.06 billion in 2024, reflecting higher average balances and interest rates across trading assets, investments, and collateralized agreements. However, this was partially offset by increased interest expenses due to higher rates and balances in collateralized financings and deposits.

Goldman Sachs achieved a pre-tax margin of 28% in its Asset & Wealth Management segment for 2024, surpassing its target of mid-twenties margins. This includes a 4 percentage point positive impact from historical principal investments. The firm also met its goal of generating over $10 billion in annual management and other fees, including more than $2 billion from alternatives.

Other principal transactions revenues more than doubled to $4.65 billion in 2024, reflecting higher gains from private equity investments, derivatives related to funding activities, and reduced losses on hedges. The sale of the Marcus loan portfolio in 2023 also contributed positively to this growth.