Goldman Sachs delivers robust 2024 earnings with record growth in key segments

Goldman Sachs Group, Inc. (NYSE: GS) showcased an impressive financial performance for 2024, reporting net revenues of $53.51 billion, a 16% rise year-over-year. Net earnings reached $14.28 billion, reflecting a 68% increase compared to 2023. This growth underscores the company’s success in executing its long-term strategy and navigating volatile market conditions.

David Solomon, Chairman and CEO of Goldman Sachs, emphasized the firm’s milestone achievements: “We are pleased to have met or exceeded nearly all targets we set five years ago, growing revenues by nearly 50% and enhancing franchise durability. As the operating environment improves, we remain committed to leveraging our ‘One Goldman Sachs’ strategy to deliver value for clients and shareholders alike.”

How Did Goldman Sachs Achieve Record Revenue Growth in 2024?

Performance Highlights and Revenue Breakdown

Goldman Sachs’ performance in 2024 was underpinned by robust results across its primary business segments. The Global Banking & Markets division, the firm’s largest contributor, generated $34.94 billion in net revenues, representing a 16% year-on-year increase. Investment banking fees surged 24% to $7.73 billion, driven by strong activity in debt underwriting and secondary equity offerings.

Within fixed income, currency, and commodities (FICC), net revenues climbed 9% to $13.20 billion, supported by record mortgage and structured lending activities. Equities performance also soared, with intermediation revenues rising by 16% due to higher derivatives trading activity.

Meanwhile, the Asset & Wealth Management segment posted $16.14 billion in net revenues, up 16% from 2023. This growth stemmed from record-high management fees and private banking revenues, alongside increased assets under supervision, which reached a record $3.14 trillion, reflecting a 12% gain over the year.

The Platform Solutions segment achieved modest growth, with annual net revenues of $2.43 billion, supported by improved consumer platform performance, despite a strategic transition in the General Motors credit card portfolio.

Fourth Quarter Results Reflect Strong Finish

The fourth quarter of 2024 demonstrated Goldman Sachs’ operational resilience, with net revenues of $13.87 billion—up 23% from the same period in 2023. Diluted earnings per common share (EPS) for the quarter climbed to $11.95, compared to $5.48 in Q4 2023. Return on average common shareholders’ equity (ROE) for the quarter reached 14.6%, underscoring effective capital allocation strategies.

Why Are Analysts Bullish on Goldman Sachs’ Future?

Strategic Focus on Simplification and Scale

Goldman Sachs continues to refine its operations through a simplified strategic framework that emphasizes scalability and efficiency. By leveraging its “One Goldman Sachs” model, the company aims to provide comprehensive, high-value services to clients while optimizing resources.

This strategy has proven fruitful, as reflected in the firm’s ability to rank #1 in global mergers and acquisitions in 2024, according to Dealogic. With an investment banking backlog indicating strong demand for advisory services in 2025, Goldman Sachs appears well-positioned to sustain growth momentum.

Capital Return Policies Strengthen Shareholder Confidence

Goldman Sachs demonstrated its commitment to shareholders by returning $11.80 billion in capital during 2024, including $8 billion in share repurchases and $3.80 billion in dividends. The recently declared quarterly dividend of $3.00 per share, payable in March 2025, further signals confidence in the firm’s financial health and long-term strategy.

What Does Goldman Sachs’ Success Signal for the Financial Industry?

Industry Leadership Amid Economic Shifts

Goldman Sachs’ ability to post record earnings in 2024 underscores its adaptability in an evolving financial landscape. From navigating higher interest rates to capitalizing on global M&A opportunities, the firm has demonstrated that its diversified business model can thrive in varying market conditions.

Experts point to the bank’s emphasis on innovation, particularly in asset management and consumer banking, as a key differentiator. The sale of the Marcus loan portfolio and the firm’s focus on scalable, durable solutions have allowed Goldman Sachs to align operational priorities with shareholder expectations.

Positive Sentiment in Stock Markets

Investor sentiment remains upbeat, with Goldman Sachs’ stock showing steady performance amid strong earnings announcements. Analysts predict continued growth as the firm refines its operations and seizes opportunities in high-growth areas, such as technology-driven banking solutions.

Goldman Sachs’ 2024 financial results reaffirm its status as a global leader in investment banking, asset management, and financial innovation. With record revenues, significant earnings growth, and a clear strategic vision, the firm is well-positioned to navigate the challenges and opportunities of 2025 and beyond.

As David Solomon highlighted, Goldman Sachs remains focused on “creating long-term value for clients and shareholders through operational excellence and strategic growth initiatives.”