The Goldman Sachs Group reported a solid Q3 2024 performance with net revenues of 12.7 billion and diluted EPS of 8.40, supported by durable revenue streams across Global Banking and Markets (GBM) and Asset and Wealth Management (AWM). Management highlighted a rising backlog in advisory activity and record financing revenues within Fixed Income and Currencies (FIC) and Equities, underscoring the firm’s ongoing strategy to grow higher-quality, more durable revenues. AWM delivered another record level of assets under supervision (AUS) at roughly $3.0+ trillion, and durable revenues in non-transactional fees and private banking and lending reached a quarterly record of $3.4 billion, reflecting management’s confidence in mid-teens ROE trajectories as the business mix shifts toward durable earnings streams.
Management also flagged regulatory headwinds and ongoing Basel III-related development as a material overhang, while reiterating a clear path toward higher, mid-teens returns across the franchise, driven by continued momentum in GBM and expanding AWM profitability. Near-term cash flow remained challenged by working capital dynamics and non-core asset reductions, resulting in negative quarterly operating cash flow despite a strong earnings base. Management underscored a robust capital framework (CET1 at 14.6% under standardized approach) and a sizable capital deployment program slated to support growth and shareholder returns, with a quarterly buyback and dividend consistent with a conservative buffer against regulatory uncertainty.