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The Goldman Sachs Group, Inc. (GS, NYSE) reported total net revenues of $53.513 billion in FY2024 (the calendar year ending December 31, 2024), up from approximately $46.3 billion in FY2023. Net earnings were $14.280 billion and diluted EPS was $40.54. Goldman Sachs is executing a strategic pivot: exiting consumer banking via the Marcus wind-down and refocusing on its core investment banking, markets, and asset and wealth management businesses. The firm's GAAP return on equity (ROE) was approximately 12.7% in FY2024, with a return on tangible equity (ROTE) of approximately 14.4%, both below the firm's stated medium-term target of 15 to 17%.
Net revenues by segment (FY2024)
| Segment / sub-component | FY2024 net revenues (approx.) |
|---|---|
| Global Banking and Markets | ~$39.0B |
| Investment Banking (advisory + underwriting) | ~$7.7B |
| FICC (fixed income, currencies, commodities) | ~$13.4B |
| Equities | ~$13.1B |
| Other Global Banking and Markets | ~$4.8B |
| Asset and Wealth Management | ~$16.3B |
| Management fees, incentive fees, equity investments, lending/debt | included above |
| Platform Solutions | ~($1.8B) |
| Consumer lending wind-down, Apple Card exit, Marcus losses | included above |
| Total net revenues | $53.513B |
Global Banking and Markets is the largest segment, generating approximately $39.0 billion in net revenues in FY2024. It houses investment banking (advisory fees on mergers and acquisitions, equity and debt underwriting), FICC trading (government bonds, credit, currencies, commodities), and equities trading (cash equities, prime brokerage, derivatives). This segment represents the core franchise Goldman Sachs is built around.
Asset and Wealth Management generated approximately $16.3 billion, reflecting management fees on third-party assets under supervision, incentive fees earned when fund performance exceeds hurdles, net revenues from the firm's own equity and credit investments, and net interest income from lending and private credit activities. Goldman Sachs manages approximately $3.1 trillion in total assets under supervision as of the end of FY2024.
Platform Solutions produced negative net revenues of approximately $1.8 billion in FY2024. This segment housed Goldman Sachs's consumer banking efforts, including the Marcus direct-to-consumer deposit and lending platform, the Apple Card credit card partnership (sold to Synchrony Financial in 2024), and GreenSky home improvement lending. Net revenues turned negative because interest expense on the consumer deposit base and provision for credit losses on remaining consumer loan portfolios outweighed fee income as the business wound down.
Source: The Goldman Sachs Group, Inc.: Form 10-K SEC Filings (CIK 0000886982)
Key financial metrics (FY2023 vs. FY2024)
| Metric | FY2023 (approx.) | FY2024 |
|---|---|---|
| Total net revenues | ~$46.3B | $53.513B |
| Net earnings | ~$8.5B | $14.280B |
| Diluted EPS (GAAP) | ~$22.87 | $40.54 |
| GAAP ROE | ~7.1% | ~12.7% |
| ROTE | ~8.0% | ~14.4% |
| Book value per share (end of period) | ~$310 | ~$333 |
| CET1 ratio (standardized, end of period) | ~14.4% | ~14.6% |
| Quarterly dividend per share | $2.75 | $3.00 |
The improvement from FY2023 to FY2024 in net earnings and EPS reflects three factors operating together. First, investment banking fees recovered significantly after a multi-year slowdown in mergers and acquisitions and capital markets issuance that began in 2022. Second, trading revenues in both FICC and equities were strong across 2024. Third, the net drag from Platform Solutions, while still negative in absolute terms, stabilized as the consumer loan portfolio ran off and the Apple Card was transferred to Synchrony.
FY2023 net earnings of approximately $8.5 billion were depressed by significant provisions for credit losses on the consumer lending book and by impairments on commercial real estate investments held in the Asset and Wealth Management segment. The jump from approximately $22.87 diluted EPS in FY2023 to $40.54 in FY2024 is the result of both a near-doubling of net earnings and a modestly lower diluted share count as Goldman Sachs continued share repurchases.
The CET1 ratio of approximately 14.6% under the standardized approach at the end of FY2024 exceeds Goldman Sachs's regulatory minimum requirement, providing a capital buffer the firm uses to support client activity in its trading businesses and fund share repurchases and dividends.
Investment banking fee recovery in FY2024
Investment banking fees were approximately $7.7 billion in FY2024, up substantially from the subdued levels of 2022 and 2023. After the Federal Reserve's rapid interest rate increases in 2022 and 2023 effectively froze leveraged buyout financing and equity issuance markets, deal activity recovered meaningfully in 2024 as rates stabilized and buyers and sellers resumed negotiations.
Goldman Sachs earns investment banking fees across three channels. Advisory fees are earned on completed merger, acquisition, and restructuring transactions; they are typically larger and more lumpy than underwriting fees because they depend on successful deal completion rather than execution alone. Equity underwriting fees are earned on initial public offerings, follow-on offerings, and convertible note issuances. Debt underwriting fees are earned on investment-grade and leveraged bond issuances and loan syndications.
The recovery in investment banking is significant for Goldman Sachs's overall profitability because advisory and underwriting fees carry high incremental margins. Unlike trading revenues, which require balance sheet and risk capital, fee revenues in advisory require primarily human capital (bankers) whose costs are largely fixed over a deal cycle. When deal volumes recover, the incremental fee revenue flows heavily to the bottom line.
Goldman Sachs has consistently ranked among the top two or three investment banks globally by advisory fees. Maintaining that position requires retaining senior bankers with deep client relationships and ongoing investment in sector expertise, which is why the firm's compensation expenses remain the largest single cost even in strong revenue years.
Strategic pivot: exiting consumer banking
Goldman Sachs launched Marcus in 2016 as a consumer savings and personal loan platform. The rationale was that Goldman Sachs needed a stable, low-cost deposit base to reduce reliance on wholesale funding, and that consumer lending would diversify revenue away from the cyclical investment banking and trading businesses. By 2019 and 2020, Goldman Sachs extended its consumer ambitions to include the Apple Card credit card partnership and the GreenSky home improvement lending acquisition in 2022.
The consumer strategy produced losses in every year it operated at scale. Goldman Sachs disclosed cumulative pretax losses from its consumer segment of more than $3 billion through 2023, driven by elevated customer acquisition costs, higher-than-expected credit losses on personal loans and credit cards, and the operational complexity of building consumer banking technology from the ground up. The business required substantial technology investment and regulatory compliance infrastructure that Goldman Sachs's existing institutional-facing systems were not designed to support.
The strategic reversal began in 2022 and accelerated in 2023 and 2024. Goldman Sachs sold the Apple Card partnership and its associated credit card receivables to Synchrony Financial, a specialist card issuer. The GreenSky business was sold. Marcus personal lending was wound down. Goldman Sachs retained a consumer deposit-taking business within Marcus to fund its balance sheet, but pivoted the deposit product toward high-net-worth and ultra-high-net-worth private banking clients rather than mass-market retail.
The Platform Solutions segment, which housed these consumer activities during the wind-down, produced negative net revenues in FY2024 as the remaining consumer loan portfolio ran off and interest expense on legacy deposits exceeded fee income. Management expects the drag from Platform Solutions to diminish as the wind-down completes, and for that capital to be redeployed into core institutional banking, markets, and asset and wealth management activities where Goldman Sachs has demonstrated returns above its cost of equity.
The firm's stated medium-term GAAP ROE target of 15 to 17% reflects what management believes is achievable once the Platform Solutions drag is fully eliminated and the firm operates at scale in its core businesses. The approximately 12.7% GAAP ROE in FY2024 and approximately 14.4% ROTE show meaningful progress toward that target relative to the sub-8% levels in FY2023, though the gap remains real.
Frequently Asked Questions
What were Goldman Sachs's total net revenues in FY2024?
Goldman Sachs reported total net revenues of $53.513 billion in FY2024 (the calendar year ending December 31, 2024), up from approximately $46.3 billion in FY2023. The recovery was driven by a rebound in investment banking fees and strong performance in both FICC and Equities within Global Banking and Markets.
Why is Goldman Sachs exiting consumer banking?
Goldman Sachs launched Marcus, its consumer banking and lending platform, in 2016 as a diversification effort. By 2022 and 2023 it became clear the business was generating significant losses due to high customer acquisition costs, elevated credit provisions, and the operational complexity of scaling a consumer business. Goldman Sachs sold its Apple Card partnership to Synchrony Financial and wound down most Marcus lending activities. The Platform Solutions segment that housed these businesses reported negative net revenues in FY2024 as the wind-down continued.
What is Goldman Sachs's return on equity target?
Goldman Sachs's medium-term GAAP return on equity target is approximately 15 to 17 percent. In FY2024 the firm reported a GAAP ROE of approximately 12.7 percent and a return on tangible equity (ROTE) of approximately 14.4 percent. The gap between the reported figures and the stated target reflects the ongoing drag from the Platform Solutions wind-down and the time required to fully redeploy capital into core businesses.
How does Goldman Sachs's revenue differ from a typical commercial bank?
Goldman Sachs earns most of its revenue from market-sensitive activities: investment banking fees (advisory, underwriting), trading revenues in fixed income, currencies, and commodities (FICC) and equities, and asset and wealth management fees. These revenue streams fluctuate with market activity, capital markets volumes, and client demand. A typical commercial bank derives revenue primarily from net interest income on loans funded by deposits, which is more stable but less scalable in active markets. Goldman Sachs does take deposits through its Marcus and private banking businesses, but net interest income is not the dominant driver of results the way it is at a large commercial bank.