Goldman Sachs Performance Recap: A Comprehensive Look
Detailed Examination of the Last Five Quarters' Earnings and Strategic Milestones
In this article, we explore Goldman Sachs' financial journey from Q4 2022 to Q4 2023, highlighting revenue growth, strategic business reorganizations, and consistent performance across various sectors. Despite economic challenges, the firm demonstrated resilience, with a strong focus on asset management and investment banking. The article also delves into future prospects and capital management strategies.
Financial Performance
Next Quarters Estimates:
Q4 2022:
Revenue: $10.6 billion
Net Earnings: $1.3 billion
Earnings per Share (EPS): $3.32
Q1 2023:
Net Revenues: $12.2 billion
EPS: $8.79
Returns on Equity (ROE) and Tangible Equity (ROTE): 11.6% and 12.6% respectively
Q2 2023:
Net Revenues: $10.9 billion
EPS: $3.08
ROE and ROTE: 4% and 4.4%
Q3 2023:
Net Revenues: $11.8 billion
Net Earnings: $2.1 billion
Q4 2023:
Net Revenues: $46.3 billion (annual)
Net Earnings: $8.5 billion (annual)
EPS: $22.87 (annual)
Strategic Adjustments and Business Evolution
Reorganization and Consumer Strategy: In Q4 2022, Goldman Sachs reorganized to strengthen core businesses and scaled growth platforms. It narrowed its consumer strategy and paused new consumer loan offerings.
Consumer Business Restructuring: In Q1 and Q2 2023, Goldman Sachs further narrowed its consumer focus, selling parts of the Marcus loan portfolio and exploring the sale of GreenSky.
Business Sales and Reductions: In an unspecified quarter of 2023, the sale of GreenSky and Personal Financial Management was announced.
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