Yesterday, Goldman Sachs reported 2025 first quarter earnings. Net earnings have grown from the fourth quarter of 2024 from $4.11 billion to $4.74 billion in the first quarter of this year. Investment banking fees were down in the first quarter of 2025, both compared to the first quarter of 2024 and the last quarter of 2024. We investigated this topic in more detail. Especially given how record bonuses are at stake for the CEO and COO of Goldman Sachs.
Global Banking and Markets includes revenues for investment banking fees, fixed income, currencies, and commodities or FICC, and equities. There is also ‘other revenue,’ but this section forms less than 1% of the overall turnover of the global banking and markets division.
In 2024 investment banking revenues at Goldman Sachs were $7.73 billion, up 24 percent from 2023. FICC revenues were $13.2 billion, up 9 percent from 2023. Net revenues in equities were $13.43 billion, an increase of 16 percent on 2023 revenues.
How Did First Quarter 2025 Results and Earnings Compare to 2024?
Today we are only focussing on the Global Banking and Markets results of Goldman Sachs. The bank earns substantial revenues from Asset and Wealth Management as well as Platform solutions, however the investment banking fees are what interest us in today’s story.
Over the course of 2024 revenues across global banking and markets have never quite reached the same heights as they did in the first quarter. However, it’s important to point out that Goldman Sachs investment banking fees over the last five quarters were highest in the first quarter of 2024.
First Quarter 2024
Total revenues of $9.73 billion
Investment banking fees of $2.08 billion
FICC revenues of $4.32 billion
Net revenues in equities of $3.31 billion
Second Quarter 2024
Total revenues of $8.18 billion
Investment banking fees of $1.73 billion
FICC revenues of $3.18 billion
Net revenues in equities of $3.17 billion
Third Quarter 2024
Total revenues of $8.55 billion.
Investment banking fees of $1.87 billion
FICC revenues of $2.96 billion
Net revenues in equities of $3.5 billion
Fourth Quarter 2024
Total revenues of $8.48 billion.
Investment banking fees of $2.05 billion
FICC revenues of $2.74 billion
Net revenues in equities of $3.45 billion
First Quarter 2025
Total revenues of $10.71 billion
Investment banking fees of $1.91 billion
FICC revenues of $4.40 billion
Net revenues in equities of $4.19 billion
Conclusion
First Quarter earnings have been high over the last two years. Net revenues in equities is perhaps the biggest single area of improvement for Goldmans’ global banking and markets division. The earnings report explains how the divisions’ revenue was “driven by record net revenues in equities.” It adds how Goldman Sachs is ranked number one in worldwide announced and completed mergers and acquisitions, equity and equity-related offerings and common stock offerings.
In the first quarter, JP Morgan reported net revenues in equities of $3.8 billion. Morgan Stanley reported $4.128 billion. And, hot off the press, Bank of America has reported $2.2 billion.
When it comes to investment banking fees, JP Morgan reported $2.2 billion. Morgan Stanley reported $1.56 billion. Bank of America investment banking fees were $1.5 billion.
All the banks have had a good quarter in their equities divisions, especially Goldman Sachs.
Goldman Sachs stock was up 1.93 percent yesterday following the announcement.
Author: Andy Samu
See Also:
Should the Bosses of Goldman Sachs Receive $80 Million Each in Bonus for 2024? | Disruption Banking
Investment Banking Revenues Soar as U.S. banks report 2024 revenues | Disruption Banking
