Goldman Sachs Sets New Records in Q4 Performance, Exhibiting Strong Client Focus and Talent Development
Goldman Sachs has unveiled a remarkable performance in its fourth quarter 2024 earnings, solidifying its position as one of the leading financial institutions globally. The company's commitment to delivering exceptional client service, partnering with clients, maintaining integrity, and striving for excellence has yielded impressive results.
In the latest quarter, Goldman Sachs generated revenues of $13.9 billion, representing a 16% year-over-year growth, and earnings per share (EPS) of $11.95. The company's return on equity (ROE) stood at 14.6%, while its return on tangible equity (ROTE) was 15.5%. For the full year, Goldman Sachs increased its revenues by a significant 16% to $53.5 billion and grew EPS by 77% to $40.54.
David Solomon, the Chairman and Chief Executive Officer of Goldman Sachs, took pride in the company's performance, highlighting the strong operating leverage demonstrated through improved ROE by over 500 basis points to 12.7%. He emphasized that this growth is a testament to the firm's ability to deliver exceptional client service while maintaining its values of partnership, integrity, and excellence.
Goldman Sachs' Global Banking to Markets business has emerged as a powerhouse, boasting scale, profitability, and leadership positions in key areas such as M&A advisory, equities, and asset management. The company's Asset & Wealth Management segment is also thriving, with over $3.1 trillion in assets under supervision and a reputation for delivering top-notch solutions and execution capabilities to clients.
The interconnectedness of Goldman Sachs' client franchises is crucial to its growth strategy, enabling seamless delivery of unique solutions and execution capabilities to clients. The company's people-centric approach has been instrumental in driving this performance, with a strong culture of collaboration and excellence supporting the firm's mission to solve clients' most consequential problems.
Goldman Sachs has invested heavily in developing its talent pool, attracting quality professionals from around the world through its esteemed brand and reputation. The company boasts an impressive track record of retaining top talent, with over 40% of its partners starting their careers as campus hires. This exceptional focus on people development is a key factor behind Goldman Sachs' enduring success.
Moreover, the company's alumni have had a significant impact in various industries and investment firms, with more than 275 C-suite executives holding positions at companies or funds with market caps exceeding $1 billion or assets under management over $5 billion. This network of talented professionals serves as a testament to Goldman Sachs' ability to attract, retain, and develop world-class talent.
At its first Investor Day in 2020, Goldman Sachs laid out a comprehensive strategy to strengthen and grow the firm, setting ambitious targets for revenue growth and operational efficiency. Today, the company proudly reports that it has met or exceeded almost all of these objectives, reflecting its ability to execute on its strategic vision.
As Goldman Sachs continues to push boundaries in the financial industry, its commitment to delivering exceptional client service, driving talent development, and fostering a culture of collaboration and excellence sets a high standard for other companies to follow. This outstanding performance underscores Goldman Sachs' status as the world's most exceptional financial institution.
