Goldman Sachs Reports First Quarter Earnings Per Common Share of $14.12 (Form 8-K)

Net Revenues

Net Earnings

EPS

1Q25         $15.06 billion 

1Q25         $4.74 billion 

1Q25          $14.12 

Annualized ROE¹

Annualized ROTE¹

Book Value Per Share

1Q25           16.9% 

1Q25            18.0%

1Q25          $344.20 

During the quarter, the firm supported clients and continued to execute on strategic priorities, which contributed to the firm's third highest quarterly net revenues of $15.06 billion, as well as strong net earnings of $4.74 billion and diluted EPS of $14.12.

Global Banking & Markets generated net revenues of $10.71 billion, driven by record net revenues in Equities (including record net revenues in financing) and strong performances in Fixed Income, Currency and Commodities (including record net revenues in financing) and Debt underwriting.

The firm ranked #1 in worldwide announced and completed mergers and acquisitions, equity and equity-related offerings and common stock offerings, and ranked #2 in high-yield debt offerings and leveraged loan offerings, for the year-to-date.²

Asset & Wealth Management generated net revenues of $3.68 billion. Assets under supervision³ increased $36 billion during the quarter to a record $3.17 trillion.

Book value per common share increased by 2.2% during the quarter to $344.20.

Net revenues were $15.06 billion for the first quarter of 2025, 6% higher than the first quarter of 2024 and 9% higher than the fourth quarter of 2024. The increase compared with the first quarter of 2024 reflected higher net revenues in Global Banking & Markets, partially offset by slightly lower net revenues in Asset & Wealth Management.

Net Revenues

$15.06 billion

Net revenues in Global Banking & Markets were $10.71 billion for the first quarter of 2025, 10% higher than the first quarter of 2024 and 26% higher than the fourth quarter of 2024.

Investment banking fees were $1.91 billion, 8% lower than the first quarter of 2024, primarily due to significantly lower net revenues in Advisory compared with a strong prior year period, partially offset by higher net revenues in Debt underwriting, primarily driven by asset-backed and investment-grade activity. Net revenues in Equity underwriting were unchanged. The firm's Investment banking fees backlog³ increased compared with the end of 2024.

Net revenues in Fixed Income, Currency and Commodities (FICC) were $4.40 billion, 2% higher than the first quarter of 2024, reflecting higher net revenues in FICC financing, driven by significantly higher net revenues from mortgages and structured lending. Net revenues in FICC intermediation were slightly lower, reflecting lower net revenues in credit products, interest rate products and commodities, largely offset by higher net revenues in currencies and slightly higher net revenues in mortgages.

Net revenues in Equities were $4.19 billion, 27% higher than the first quarter of 2024, due to significantly higher net revenues in Equities intermediation (primarily reflecting significantly higher net revenues in derivatives) and in Equities financing (primarily reflecting significantly higher net revenues in portfolio financing).

Net revenues in Other were $197 million, compared with $12 million for the first quarter of 2024, primarily reflecting significantly lower net losses on hedges.

Global Banking & Markets

$10.71 billion

Advisory

$ 792 million 

Equity underwriting

$ 370 million 

Debt underwriting

$ 752 million

Investment banking fees

$ 1.91 billion 

FICC intermediation

$  3.39 billion 

FICC financing

$ 1.01 billion

FICC

$ 4.40 billion 

Equities intermediation

$ 2.55 billion 

Equities financing

$ 1.65 billion

Equities

$ 4.19 billion 

Other

$ 197 million 

Net revenues in Asset & Wealth Management were $3.68 billion for the first quarter of 2025, 3% lower than the first quarter of 2024 and 22% lower than the fourth quarter of 2024. The decrease compared with the first quarter of 2024 reflected significantly lower net revenues in Equity investments and Debt investments, partially offset by higher Management and other fees. Net revenues in Private banking and lending and Incentive fees were also higher.

The decrease in Equity investments net revenues reflected significantly lower net gains from investments in private equities and higher net losses from investments in public equities. The decrease in Debt investments net revenues reflected significantly lower net interest income due to a reduction in the debt investments balance sheet and net losses compared with net gains in the prior year period. The increase in Management and other fees primarily reflected the impact of higher average assets under supervision. The increase in Private banking and lending net revenues primarily reflected higher net interest income from lending. The increase in Incentive fees was driven by harvesting.

Asset & Wealth Management

$3.68 billion

Management and

 other fees

$ 2.70 billion 

Incentive fees

$ 129 million 

Private banking and  

 lending

$ 725 million 

Equity investments

$  (5) million 

Debt investments

$ 127 million 

Net revenues in Platform Solutions were $676 million for the first quarter of 2025, 3% lower than the first quarter of 2024 and essentially unchanged compared with the fourth quarter of 2024.

Transaction banking and other net revenues were lower compared with the first quarter of 2024, primarily reflecting lower average deposit balances. Consumer platforms net revenues were essentially unchanged compared with the first quarter of 2024.

Platform Solutions

$676 million

Consumer platforms

Transaction banking

 and other

$ 65  million 

Provision for credit losses was $287 million for the first quarter of 2025, compared with $318 million for the first quarter of 2024 and $351 million for the fourth quarter of 2024. Provisions for the first quarter of 2025 primarily reflected net provisions related to the credit card portfolio. Provisions for the first quarter of 2024 reflected net provisions related to both the credit card portfolio (driven by net charge-offs) and wholesale loans (driven by impairments).

Provision for Credit Losses

$287 million

Operating expenses were $9.13 billion for the first quarter of 2025, 5% higher than the first quarter of 2024 and 10% higher than the fourth quarter of 2024. The firm's efficiency ratio³ was 60.6% for the first quarter of 2025, compared with 60.9% for the first quarter of 2024.

The increase in operating expenses compared with the first quarter of 2024 primarily reflected significantly higher transaction based expenses and higher compensation and benefits expenses (reflecting improved operating performance), partially offset by significantly lower consolidated investment entities expenses, including impairments (largely in depreciation and amortization) and a decrease from the FDIC special assessment fee recognized in the first quarter of 2024 (in other expenses).

Net provisions for litigation and regulatory proceedings were $(11) million for the first quarter of 2025, compared with $23 million for the first quarter of 2024.

Headcount was essentially unchanged compared with the end of 2024.

Operating Expenses

$9.13 billion

Efficiency Ratio

60.6%

The effective income tax rate for the first quarter of 2025 was 16.1%, down from the full year rate of 22.4% for 2024, primarily reflecting an increase in tax benefits on the settlement of employee share-based awards⁴, partially offset by a decrease in other permanent tax benefits, for the first quarter of 2025 compared with the full year of 2024.

Effective Tax Rate

16.1%

◾ On April 11, 2025, the Board of Directors of The Goldman Sachs Group, Inc. (Board) declared a dividend of $3.00 per common share to be paid on June 27, 2025 to common shareholders of record on May 30, 2025.

◾ In the first quarter of 2025, the firm returned $5.34 billion of capital to common shareholders, including $4.36 billion of common share repurchases (7.1 million shares at an average cost of $610.57) and $976 million of common stock dividends. During the quarter, the Board approved a share repurchase program authorizing repurchases of up to $40 billion of common stock.³

◾ Global core liquid assets³ averaged $441 billion for the first quarter of 2025, compared with an average of $422 billion for the fourth quarter of 2024.

Declared Quarterly

Dividend Per Common Share

$3.00

Common Share Repurchases

7.1 million shares

for $4.36 billion

Average GCLA

$441 billion

Footnotes

Annualized ROE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly common shareholders' equity. Annualized ROTE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly tangible common shareholders' equity (tangible common shareholders' equity is calculated as total shareholders' equity less preferred stock, goodwill and identifiable intangible assets). Management believes that ROTE is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed internally, and that tangible common shareholders' equity is meaningful because it is a measure that the firm and investors use to assess capital adequacy. ROTE and tangible common shareholders' equity are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies.

Dealogic - January 1, 2025 through March 31, 2025.

For information about the following items, see the referenced sections in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the firm's Annual Report on Form 10-K for the year ended December 31, 2024: (i) Investment banking fees backlog - see "Results of Operations - Global Banking & Markets," (ii) assets under supervision - see "Results of Operations - Asset & Wealth Management - Assets Under Supervision," (iii) efficiency ratio - see "Results of Operations - Operating Expenses," (iv) share repurchase program - see "Capital Management and Regulatory Capital - Capital Management," (v) global core liquid assets - see "Risk Management - Liquidity Risk Management," (vi) basic shares - see "Balance Sheet and Funding Sources - Balance Sheet Analysis and Metrics" and (vii) VaR - see "Risk Management - Market Risk Management."

For information about the following items, see the referenced sections in Part II, Item 8 "Financial Statements and Supplementary Data" in the firm's Annual Report on Form 10-K for the year ended December 31, 2024: (i) risk-based capital ratios and the supplementary leverage ratio - see Note 20 "Regulation and Capital Adequacy," (ii) geographic net revenues - see Note 25 "Business Segments" and (iii) unvested share-based awards that have non-forfeitable rights to dividends or dividend equivalents in calculating basic EPS - see Note 21 "Earnings Per Common Share."

For information about net interest income and total non-interest revenues, see the firm's Form 8-K dated January 15, 2025.

Represents a preliminary estimate for the first quarter of 2025 for the firm's assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio, balance sheet data, global core liquid assets and VaR. These may be revised in the firm's Quarterly Report on Form 10-Q for the period ended March 31, 2025.

The impact of the tax benefits related to employee share-based awards was a reduction to provision for taxes for the first quarter of 2025 of approximately $525 million, which increased diluted EPS by $1.63 and annualized ROE by 2.0 percentage points.