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Fortune 500

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The financial services firm, best known for its prominent investment banking wing and asset management unit, rose two spots on this year’s list, growing revenue 5.7% despite a tumultuous year for the financial sector. 
<ul> 
 	<li>The company brought in $68.7 billion in revenue as it opened new offices and expanded its client base.</li> 
 	<li>Goldman Sachs’ profits plunged in 2022 as the private and public markets took a beating. The bank brought in $11.3 billion, down 48% from the year prior.</li> 
 	<li>In May 2023 the firm reportedly noted in an internal memo its plan to open an office in Abu Dhabi, thus expanding its Middle East footprint.</li> 
 	<li>Also in May, the firm agreed to pay $215 million to settle a class action lawsuit alleging Goldman Sachs had been underpaying women across several divisions.</li> 
</ul>

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WMAC 2022-21-Goldman Sachs

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Modern Boards 2022 Goldman Sachs

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Fortune Modern Board 25

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-Goldman Sachs

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WMAC 2021-26-Goldman Sachs

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G500-2021-193-GOLDMAN SACHS GROUP

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best workplaces new york 2020-The Goldman Sachs Group

Employees say: 
 
"From the most senior person to the most junior, people here are extremely responsive and generally willing to help each other regardless of title."

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Best Large Workplaces in Financial Services- 2020-The Goldman Sachs

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Read Great Place to Work review .

Best Large Workplaces in Financial Services and Insurance

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F500-2020-060-Goldman-Sachs

For much of its long history, Goldman Sachs served corporations and wealthy clients, but not average individuals. Now, in search of more predictable sources of revenue, the bank is looking to Main Street and beyond. Under the leadership of CEO David Solomon, Goldman Sachs has expanded its push into consumer banking, grown its wealth management business, and launched a treasury services business for corporations, all with the aim of offsetting volatile revenues from trading. In particular, its consumer push is making a big splash: Last year, the bank announced that it was issuing issue tech giant Apple’s digital-first credit card.

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Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Goldman Sachs Group is a global investment banking, securities, and investment management firm. It caters to corporations, financial institutions, and high-net-worth individuals. In 2023, it was the world’s second-largest investment bank by revenue. In 2019, Goldman partnered with Apple to introduce the Apple credit card. Almost four years later, the bank was looking for an exit from the arrangement, part of its efforts to scale back its retail ambitions.

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Goldman Sachs Group (GS): Company Profile, Stock Price, News, Rankings

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Goldman Sachs Group

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Good morning. My name is Katie, and I'll be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs Second Quarter twenty twenty five Earnings Conference Call. On behalf of Goldman Sachs, I will begin the call with the following disclaimer. The earnings presentation can be found on the Investor Relations page of the Goldman Sachs website and contains information on forward looking statements and non GAAP measures.

This audio cast is copyrighted material of The Goldman Sachs Group Inc. And may not be duplicated, reproduced or rebroadcast without consent. This call is being recorded today, 07/16/2025. I will now turn the call over to Chairman and Chief Executive Officer, David Solomon and Chief Financial Officer, Dennis Coleman. Thank you. Mr. Solomon, you may begin your conference.

Thank you, operator, and good morning, everyone. Thank you all for joining us. We delivered a strong performance in the second quarter, generating net revenues of $14,600,000,000 earnings per share of $10.91 and an ROE of 12.8%, resulting in an ROE of 14.8% for the first half of the year. Amid shifting market dynamics, we remained relentlessly focused on serving our clients with excellence. These results are a testament to our best in class talent, culture of collaboration differentiated business across investment banking, financing, risk intermediation, and asset and wealth management.

Our global client franchise has never been stronger, and I'm proud of how we've helped our clients navigate periods of heightened uncertainty. In Investment Banking, clients continue to turn to our number one M and A franchise for their most consequential transactions. The deal making environment has been remarkably resilient. While activity was slower in the first half of the quarter, announced m and a volumes for the year to date are 30% higher year over year and 15% greater than the comparable five year average. A narrowed range of outcomes on trade and the overall economy has helped CEO confidence and increased their willingness to transact.

We've seen a pickup in momentum with both strategic and sponsor clients as exemplified by Energy Energy's $12,000,000,000 portfolio acquisition from LS Power and Salesforce's $8,000,000,000 acquisition of Informatica. Capital markets activity has also accelerated. During the quarter, we priced 11 IPOs for clients around the globe, including Circle, Chime, eToro and HDB Financial Services, which have performed well in the secondary market. Though uncertainty could persist in some pockets, particularly in industries highly sensitive to trade policy, we are optimistic on the overall investment banking outlook, and we are incredibly well positioned to assist clients in executing on their strategic ambitions. Our client engagement continues to be elevated, and we're seeing it in our backlog, which rose for a fifth consecutive quarter driven by advisory.

Importantly, our advisory backlog was up significantly versus twenty twenty four year end levels. We have also remained active across our leading second equities businesses, which yet again produced very strong results in the quarter as policy uncertainty drove clients to reposition portfolios and recalibrate risks across asset classes. Our strong performance goes beyond the support of opportunity set. We are also benefiting from successful multiyear execution across our strategic priorities of driving growth in financing and prudently maximizing wallet share, which we have clearly added further balance to our performance. This quarter, both our financing businesses hit a revenue record as we continue to deploy resources to grow fixed financing and bolster our leading position in equities financing.

At the same time, we remain laser focused on wallet share, and we now rank in the top three with a 125 of the top 150 clients globally, up from 77 in 2019. Importantly, these hard won share gains contributed to the demonstrated resilience of these diversified businesses. In asset and wealth management, we continue to have momentum in alternatives where we raised $18,000,000,000 this quarter driven by demand for flagship funds across strategies including secondary, hybrid capital, and growth equity. Wealth management client assets rose to a record 1,700,000,000,000, and we're making solid progress on increasing lending to our ultra high net worth clients with loan balances of 42,000,000,000. All in, our assets under supervision rose to a new record of 3,300,000,000,000.0, representing our thirtieth consecutive quarter of long term fee based net inflows.

There are very few firms with this track record, and it is evident that clients continue to turn to us for our investment performance, the quality of our advice, and the breadth of our offering. From here, we see further opportunities across alternatives, wealth management, and solutions, which will fuel growth and more durable revenues across our platform. As we continue to invest in further strengthening and growing our franchise, I am encouraged by the widespread progress being made in AI, which is quickly developing into an economic force that will permeate every industry. The accelerated innovation and disruption from AI is set to create significant demand related infrastructure and financing needs, which will drive activity across our franchise. In light of the formation of the Capital Solutions Group, we've never been better positioned to meet this demand.

With regards to our own operations, we are currently investing in a number of use cases across the firm to transform the way our people work. Last month, we rolled out our natural language GS AI assistant to the entire firm, the first generative AI powered tool to reach the scale allowing for safe, secure, and responsible access to firm approved external large language model. We recently began collaborating with Cognition Labs and are piloting the usage of Devon, an autonomous generative AI agent designed to transform the way we build, maintain, and develop software with risk oversight and supervision of our engineers. We will be deploying these agentic AI developers for prioritized use cases, which we believe will significantly enhance velocity, transform our capabilities, and drive efficiency. As I discussed in our strategic update in January, operating efficiently is one of our key strategic objectives, and these efforts will allow us to continue to enhance the client experience while improving productivity.

Before I turn it over to Dennis, I want to emphasize the significant progress we've made on all our strategic objectives. The investment we've made to strengthen and grow our global client franchise, including our emphasis on scaling capital light businesses, have materially enhanced the resilience of our firm. I am pleased to see these results I'm pleased to see the results of these multiyear efforts reflected in this year's CCAR stress test, which drove a significant improvement in our expected stress capital buffer to 3.4%. This increased capital flexibility will allow us to prioritize deploying resources to support our client needs and further grow our world class businesses. At the same time, we are committed to returning capital to shareholders, including delivering a sustainable and growing dividend.

Our board approved a 33% increase in our quarterly dividend to $4 a share, which underscores our confidence in the durability of our franchise. Since 02/2018, we've increased our quarterly dividend by 400%. More broadly, we are encouraged by recent statements from regulators that a holistic review of the regulatory and capital regime for the financial services industry is warranted. For example, last month's proposal on the recalibration of the enhanced SLR is a constructive step to returning the leverage requirement back to its intended purpose as a backstop measure. A more balanced regulatory backdrop will foster a more efficient financial system that will support growth and competitiveness of The US economy.

We look forward to further progress, and we'll continue to actively engage with our regulators and government officials on this front. In closing, I want to recognize that despite the resilient global economy and market backdrop, much remains uncertain. Geopolitical concerns have intensified in many regions, most notably in The Middle East. Number of trade agreements have yet to materialize and that the ultimate impact on growth from higher tariffs is yet unknown. At the moment, there's a sense that things are moving forward constructively, but developments rarely unfold in a straight line.

With this in mind, we remain very focused on risk discipline. While we won't always get it right, I'm pleased with how our people have harnessed the power of One Goldman Sachs to help our clients navigate the fast evolving operating backdrop. I feel very confident about the forward trajectory of Goldman Sachs. And as I said at the outset, our leading franchises have never been better positioned to support our clients, and we will continue to deliver returns for our shareholders. I'll now turn it over to Dennis to cover our financial results for the quarter.

Let's start with our results on Page one of the presentation. In the second quarter, we generated net revenues of $14,600,000,000 earnings per share of $10.91 and an ROE of 12.8%. We provide details on selected items in the bottom table, which in total reduced our EPS by $0.33 and our ROE by 40 basis points. Let's turn to performance by segment, starting on page three. Global Banking and Markets produced revenues of $10,100,000,000 in the quarter with an ROE for the first half of nearly 18%.

Turning to page four. Advisory revenues of $1,200,000,000 rose 71% versus a year ago, reflecting strength in The Americas and EMEA. For the year to date, we remain number one in the lead tables for M and A with a lead of roughly $85,000,000,000 in announced volume and a $145,000,000,000 in completed volumes versus our next closest peer. Equity underwriting revenues of $428,000,000 were essentially flat year over year, while debt underwriting revenues of $589,000,000 fell 5% amid lower leverage finance activity. Year to date, we ranked second in equity and equity related underwriting and second in both high yield debt underwriting and leverage lending.

Across investment banking, our backlog rose sequentially for a fifth quarter even with strong realizations and remains notably higher versus 2,024 year end levels. FICC net revenues were $3,500,000,000 in the quarter, up 9% year over year. Intermediation results were driven by higher client activity in currencies, credit and interest rate products, partially offset by lower results in mortgages and commodities. Record fixed financing revenues of $1,000,000,000 were driven by strong performance in mortgages and structured lending. Equities net revenues were a record $4,300,000,000 in the quarter.

Equities intermediation revenues of $2,600,000,000 rose 45% year over year, driven by strong performance across cash and derivatives as clients were active in repositioning their portfolios. Record equities financing revenues of $1,700,000,000 were 23% higher year over year on better portfolio financing results and amid record average prime balances for the quarter. While balances declined modestly in early April, clients quickly relevered, though net leverage overall remains at historically moderate levels. We continue to maintain robust risk discipline around our client financing portfolios. Total financing revenues of $2,800,000,000 rose 23% versus the prior year, reaching a new record for a sixth consecutive quarter, now comprising over one third of overall FIC and equities revenues.

Let's turn to page five. Asset and wealth management revenues were $3,800,000,000. Management and other fees were up 11% year over year to $2,800,000,000 on higher average assets under supervision. Incentive fees were a $102,000,000. We expect to make further progress on our target of $1,000,000,000 in annual incentive fees over the medium term with fees ramping up more materially in 2026 and 2027 as we continue to deploy and harvest funds.

Private banking and lending revenues were $789,000,000, up 12% year over year on higher results from lending and deposits related to our ultra high net worth clients. In aggregate, our more durable revenues of 3,600,000,000 across management and other fees and private banking and lending were a record as we continue to invest in the growth of these businesses. Revenues from equity investments and debt investments totaled $82,000,000 Within equity investments, we saw modest net losses in our private portfolio driven by markdowns in relation to certain real estate positions. Positions. Given the more challenging harvesting environment, we expect results in the second half twenty twenty five to be more muted relative to our medium term run rate expectations.

In the AWM segment, we generated a 22 pretax margin and roughly 9% ROE in the first half of the year. Excluding the impact of historical principal investments and its $3,800,000,000 of average attributed equity, our pretax margin and ROE would have each been approximately three percentage points higher. Now moving to Page six. Total assets under supervision ended the quarter at a record $3,300,000,000,000 up sequentially on $115,000,000,000 of market appreciation as well as $17,000,000,000 of long term net inflows in alternatives and equity, representing our thirtieth consecutive quarter of long term fee based net inflows. Turning to Page seven on alternatives.

Alternative assets under supervision totaled $355,000,000,000 at the end of the second quarter, driving $589,000,000 in management and other fees. Gross third party alternatives fundraising was $18,000,000,000 in the quarter, bringing year to date fundraising to $37,000,000,000 We continue to expect fundraising to be in line with recent years. On Page nine, firm wide net interest income was $3,100,000,000 in the second quarter, up sequentially on an increase in interest earning assets. Our total loan portfolio at quarter end was $217,000,000,000 up versus the first quarter, primarily reflecting higher other collateralized lending. Our provision for credit losses of $384,000,000 primarily reflects charge offs in our credit card portfolio as well as modest levels of growth across both the card and wholesale portfolios.

Turning to expenses on Page 10. Total quarterly operating expenses were $9,200,000,000 Our year to date compensation ratio net of provisions remained at 33% and is inclusive of roughly $140,000,000 in severance costs. Quarterly non compensation expenses of $4,600,000,000 included approximately $100,000,000 of CIE impairments and rose 6% year over year, driven by higher transaction based expenses. Our effective tax rate for the first half of twenty twenty five was 20.2. For the full year, we expect a tax rate of approximately 22%.

Next, capital on Slide 11. In the quarter, we returned $4,000,000,000 to shareholders, including common stock dividends of $957,000,000 and common stock repurchases of $3,000,000,000 Our common equity Tier one ratio was 14.5% at the end of the second quarter under the standardized approach. While the NPR on CCAR averaging is still outstanding, Under the current regulatory framework, our new CET one requirement will be 10.9% as of October 1. Earlier this year, our board authorized a multiyear share repurchase program of up to $40,000,000,000, providing us increased capital management flexibility. As David mentioned, our Board also approved a 33% increase in our quarterly dividend of $4 per share beginning in the third quarter, a reflection of our priority to pay our shareholders a sustainable growing dividend and our confidence in the increasing durability of our firm.

In conclusion, this quarter has once again demonstrated the power and resilience of our leading franchises. We remain incredibly well positioned to support our clients as they navigate the complex operating backdrop, and we are confident that we will continue to deliver for shareholders. With that, we will now open up the line for questions.

Hi, thank you. So you've been doing a very good job of growing your financing business and expanding at the IB and and trading, and it hasn't consumed that much capital. So we've been asking you for years, what are you gonna do with all this capital if you do get reg reform? Well, here we are. You have a 10.9, and you have a lot more than that, and you're making a ton of money.

So my blunt question is, what do you do with all this excess capital now that you have it? Do you have places that you can allocate what is now large amounts of of excess capital organically?

Yeah. Thanks for the question, Glenn. And and, you know, I'll I'll start, and and Dennis Dennis might add a, you know, might add a few things, you know, on a more granular basis. But first of all, know, our capital methodology does not change, you know, with the capital regime adjusting based on what's going on regulatorily. You know, we we start through a lens that if we've got capital available to deploy toward our client franchise to produce accretive returns and to support client activity, that's going to be the first place that we're gonna go.

You know, given the way things are shifting, we are seeing some opportunities for deployment. Some of that comes from from, you know, the structure of the capital stack, and some of that comes from the fact that activity is picking up, particularly in m and a and financing in places where we haven't had to put that much capital forward. So we do see good opportunities in the business to deploy. That will be our first and primary focus. You know, after that, we'll continue to look for ways to return capital.

We've been committed to growing sustainably and meaningfully increasing our dividend as we've had more confidence in the durability of the business, and we'll continue to return capital. That, you know, that continues to be our mantra around this, and, you know, we we think there are opportunities for us to continue to deploy and grow the business. That's where our primary focus would be.

I know if Dennis wanted to add. Okay. And and then maybe we could circle the square. You you talked about a a challenging harvesting environment, yet at the same time, we have eyes and we see big booming investment banking pie pipelines and and growing m and a and and performing IPOs performing well. So what what's holding up the what's different about the the historical principal investments that we wanna monetize amidst a good banking backdrop?

Sure, Glenn. It's it's Dennis. Thanks thanks for that question. So I think we have both of those things happening at the same time. We have elevated asset prices.

We have improving credit markets. We have increased opportunity for companies to access, the IPO markets. We've seen that, start to accelerate in the second quarter, but it also is the case that it has not been a robust environment for the harvesting, you know, per fit particularly for private equity type portfolio assets. So in in the case of our portfolio, we remain committed to reducing those historical principal investments over time, and we continue to make steady progress. We reduced it by about 10% in the quarter.

It now stands at about about $8,000,000,000. And as as market conditions continue to persist and they open up, that should provide us with incremental opportunities, and we'll continue to reduce the other components of our historical principal investments in line with our in line with our strategy.

The only the only thing, Glenn, I just wanna add to that, we're committed. This is now a small portfolio, but, you know, you would it's it's common sense that when you get to the end of what was a very, very big portfolio, you know, you've got stickier things. We are committed to aggressively reduce that portfolio and are working very, very hard at it. But at the moment, it's a small portfolio. We'll continue to chip away.

You. We'll take our next question from Ebrahim Poonawala with Bank of America.

I guess, just first question, Dennis, to follow-up on capital. I think the 10.9 versus 14 and a half CET one. There is a sense that maybe there could be some give back on the SCB next year. Give us a sense of, like, is there a CET one ratio you're targeting against as we think about go forward basis? And obviously, it has implications for ROE.

So how are you thinking about potential for SCB moving higher because of trading losses next year? And what's sort of the right seat even target that we think about for Goldman going forward? Thanks.

Sure. Thanks, Ebrahim. And obviously, we all, you know, we all recognize the environment, remains fluid, and we'll have to, we'll have to understand exactly where we land on what our minimum requirements are and and and when they're, when they take effect. But I think in terms of our our operating philosophy, you know, we still expect to run, you know, with approximately 50 to 100 basis point, buffer, versus the new and applicable, regulatory minimum. We think that, you know, gives us reasonable flexibility to have capacity and reserve to support, you know, unexpected types of client activity as well as, you know, to adjust to, you know, any changes across, you know, regulatory outcomes over the cycles. That's our that's our current expectation, Ebrahim.

Got it. And in just following up on sort of capital deployment opportunities, where does, if at all, inorganic acquisitions rank when you think about a a use of capital?

Yeah. I mean, I I Ibrahim, I I you've asked me this question before, and we've we've talked about this extensively. You know, we we are always looking for ways that we can accelerate our franchise, and we've been particularly focused on thinking about ways we can accelerate our asset and wealth management franchise. But the bar to do anything significant will be very, very high. And as we've said repeatedly, these there there aren't lots of these things.

They're generally not available. They're generally not for sale. But to the degree that there are opportunities, one of the things that capital flexibility gives us is the ability to think more seriously about some of that stuff. But I wanna, you know, I wanna highlight with a very, very high bar around doing significant things.

Thank you. We'll take our next question from Betsy Graseck with Morgan Stanley.

Question for me on this topic is how do you think about the sizing of the dividend? Very impressive increase for sure. And I just wondered, how do you think about how high to what drove that decisioning as to where to set it? And how should we think about how high it could go going forward?

Sure. Sure, Betsy. And I I I think the most important thing that we're committed to, the most important thing is to be in a position to consistently raise the dividend and create, you know, a steady increase pattern of dividend increase. Unlike a number of our competitors that you would benchmark us to, we started from a very different place five, six, or seven years ago. And we had a nominal dividend, and we've been kind of growing into it.

Goldman Sachs Group (GS) Q2 2025 Earnings Call Transcript

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