Goldman Sachs reported a solid QQ1 2024 with net revenues of $14.2 billion and net earnings of $4.10 billion, translating to basic and diluted EPS of $11.58 and an ROE of 14.8% ( ROT E 15.9%). The quarter showcased the durability of Goldman’s diversified franchise: Global Banking & Markets produced $9.7 billion of revenue (with FICC and Equities delivering across geographies and client segments), Asset & Wealth Management (A WM) reached $3.8 billion in revenue, and the platform solutions unit continued to scale with a pre-tax loss of $117 million as the firm targets breakeven next year. Total assets under supervision reached a record $2.8 trillion, and long-term fee-based inflows marked the 25th straight quarter of net inflows. Management underscored the ongoing reopening of capital markets, AI-enabled productivity investments, and a commitment to a mid-teens return through the cycle. The quarter also highlighted meaningful cash flow dynamics, including a sizable working capital shift that drove negative operating cash flow and a substantial year-over-year and sequential improvement in non-compensation expense versus prior periods, even after a $78 million FDIC charge.
Looking ahead, Goldman articulated a strategic framework centered on One Goldman Sachs client service, durable, scalable operations, and invest-to-scale initiatives. Management signaled confidence in mid-teens returns through the cycle, while acknowledging regulatory evolution (Basel III) and capital deployment flexibility as key variables that could influence buybacks and distribution policy. The AI discourse points to meaningful longer-term density of AI-related financing and infrastructure needs, providing a potential tailwind to Goldman’s advisory, financing, and asset-management capabilities.