Goldman Sachs beats by $2.85, beats on revs (389.49)
- Reports Q1 (Mar) earnings of $11.58 per share, excluding non-recurring items, $2.85 better than the FactSet Consensus of $8.73; revenues rose 16.1% year/year to $14.21 bln vs the $12.94 bln FactSet Consensus.
- Global Banking & Markets generated quarterly net revenues of $9.73 billion, driven by strong performances in Investment banking fees, Fixed Income, Currency and Commodities (including record quarterly net revenues in financing) and Equities (including the second highest quarterly net revenues in financing). Annualized return on average common shareholders' equity was 14.8% and annualized return on average tangible common shareholders' equity (ROTE)1 was 15.9% for the first quarter of 2024.
- Investment banking fees were $2.08 billion, 32% higher than the first quarter of 2023, reflecting significantly higher net revenues in Debt underwriting, primarily driven by leveraged finance activity, in Advisory, reflecting an increase in completed mergers and acquisitions transactions, and in Equity underwriting, primarily from initial public and secondary offerings. The firm's Investment banking fees backlog3 decreased compared with the end of 2023.
- Net revenues in Fixed Income, Currency and Commodities (FICC) were $4.32 billion, 10% higher than the first quarter of 2023, primarily reflecting significantly higher net revenues in FICC financing, driven by mortgages and structured lending. Provision for credit losses was $318 million for the first quarter of 2024, compared with a net benefit of $171 million for the first quarter of 2023 and net provisions of $577 million for the fourth quarter of 2023.
- 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).