The Goldman Sachs Group, Inc. reported its third-quarter earnings for 2024, with a notable increase in net revenues. The company's net revenues for the third quarter of 2024 were $12.70 billion, representing a 7% increase from the same period in 2023. However, it's worth noting that this figure remained essentially unchanged compared to the second quarter of 2024.
The firm's net earnings for the third quarter of 2024 were $2.99 billion, marking a significant rise from the $1.88 billion reported in the third quarter of 2023. Diluted earnings per common share (EPS) also saw a substantial increase, reaching $8.40 for the third quarter of 2024 compared to $5.47 for the same period in 2023.
In terms of year-to-date (YTD) figures, the company reported net revenues of $39.64 billion and net earnings of $10.17 billion for the first nine months of 2024. This represents a considerable growth compared to the $34.46 billion in net revenues and $5.22 billion in net earnings reported for the first nine months of 2023.
The return on average common shareholders' equity (ROE) for the third quarter of 2024 was 10.4%, down slightly from 11.1% in the previous quarter. Similarly, the return on average tangible common shareholders' equity (ROTE) for the same period was 11.1%, compared to 12.9% for the first nine months of 2024.
In terms of business segments, the global banking & markets division generated quarterly net revenues of $8.55 billion, with strong performance in equities and record quarterly net revenues in fixed income, currency and commodities (FICC) financing. Asset & wealth management reported quarterly net revenues of $3.75 billion, including record quarterly management and other fees. Assets under supervision increased to a record $3.10 trillion.
However, platform solutions reported lower net revenues of $391 million for the third quarter of 2024, a 32% decrease from the same period in 2023 and a 42% decrease from the second quarter of 2024. The provision for credit losses was $397 million for the third quarter of 2024, a significant increase from $7 million for the third quarter of 2023.
Operating expenses were reported at $8.32 billion for the third quarter of 2024, representing an 8% decrease from the same period in 2023 and a 3% decrease from the second quarter of 2024. The firm's efficiency ratio for the first nine months of 2024 improved to 64.3% from 74.4% for the first nine months of 2023.
The effective income tax rate for the first nine months of 2024 was 22.6%, up from 21.6% for the first half of 2024. The company also declared a dividend of $3.00 per common share to be paid on December 30, 2024, to common shareholders of record on December 2, 2024.
Today the company's shares have moved -0.6% to a price of $519.68. Check out the company's full 8-K submission here.
