The significant drop in cash and cash equivalents in Q3 2024 was primarily driven by **net cash used for operating activities** and **net cash used for investing activities**. Operating cash outflows mainly resulted from trading assets, albeit partially offset by inflows from collateralized transactions, trading liabilities, and net earnings. In addition, the cash decrease was reinforced by net purchases of investments—primarily U.S. government and agency obligations classified as available-for-sale and held-to-maturity securities—which contributed to the overall decline. These outflows were only partially offset by cash provided by financing activities, such as inflows from deposits and other secured financings, with some of the positive effects diminished by decreased transaction banking deposits and repayments of unsecured long-term borrowings.  **[0000886982-24-000025_gs-20240930.htm:264]** 

Why did cash and cash equivalents drop significantly in Q3 2024?

The sharp increase in Trading assets in Q3 2024 was driven primarily by **increased client and firm activities**, particularly reflected in a rise in **government obligations** due to trading activities, and by **changing market conditions** such as equity price movements and other factors impacting the valuation of trading instruments.  **[0000886982-24-000025_gs-20240930.htm:3]** **[0000886982-24-000025_gs-20240930.htm:224]** 

What drove the sharp increase in Trading assets in Q3 2024?

In Q3 2024, **total liabilities** increased by **$82.19 billion** relative to Q4 2023, primarily due to rises in several key areas: **collateralized financings** increased by **$23.68 billion**, **customer and other payables** grew by **$19.63 billion**, **deposits** increased by **$16.89 billion**, and **trading liabilities** rose by **$14.84 billion**. These factors reflect the firm's operational activities and market conditions during that period.  **[0000886982-24-000025_gs-20240930.htm:224]** 

Why did total liabilities rise in Q3 2024?

Goldman Sachs' total assets increased in Q3 2024 primarily due to **three factors**: an increase in **trading assets** by **$123.76 billion** driven largely by higher government obligations, an increase in **investments** by **$36.82 billion** largely due to U.S. government obligations recorded as available-for-sale, and a rise in **customer and other receivables** by **$12.43 billion** attributed to heightened client activities. These increases more than offset a decline of **$86.89 billion** in cash and cash equivalents, resulting in the overall asset growth.  **[0000886982-24-000025_gs-20240930.htm:224]** 

What factors contributed to the increase in total assets in Q3 2024?

d5339331ff228dd27f119654bb767690ab7f9e03d62ee0fb32fa82637969d1ab

Operating cash flow declined drastically in Q4 2023 due to several major factors. **Substantial cash outflows from trading activities** were a key contributor, where trading assets alone reduced cash by **$30,120 million**, even though trading liabilities provided a **$800 million** inflow. Additionally, there was a **net cash outflow of $1,807 million** from changes in customer and other receivables and payables, a **$236 million** cash outflow from collateralized transactions, and further cash outflows of **$3,355 million** from other operating activities. Together, these factors drove the sharp decline in operating cash flow in the period.  **[0000886982-24-000016_gs-20240331.htm:5]** 

Why did operating cash flow decline so drastically in Q4 2023?

In Q1 2024, the steep operating cash outflow was driven by several factors. **First**, there was a notable cash outflow from trading activities, with a substantial decrease in trading assets and a reduction in trading liabilities. **Second**, there was a smaller net cash outflow from customer and other receivables and payables compared to the previous year. **Third**, a significant shift occurred in collateralized transactions where a large cash inflow in the prior period turned into a net cash outflow. **Lastly**, other net changes in operating assets and liabilities contributed to the overall drop in operating cash flow.  **[0000886982-24-000016_gs-20240331.htm:5]** 

What factors contributed to the steep operating cash outflow in Q1 2024?

The turnaround to **positive operating cash flow in Q2 2024** was driven primarily by a significant reversal in the cash flows from customer and other receivables and payables. In Q2 2024, this line item produced a **cash inflow of $2,327 million**, contrasting with a previous period’s **cash outflow of $26,016 million**. This recovery helped offset the other operating components—such as a relatively lower negative impact from trading assets and liabilities—and turned what had been a negative operating cash flow in Q1 2024 into the positive figure reported in Q2 2024.  **[0000886982-24-000022_gs-20240630.htm:5]** 

What drove the turnaround to positive operating cash flow in Q2 2024?

The substantial increase in investing outflows in Q3 2024 was driven by **significantly higher purchases of investments**, **lower proceeds from sales and paydowns of investments**, and a **negative net loans activity**, where net loans resulted in a cash outflow. These factors combined to lead to the marked rise in cash outflows during the period.  **[0000886982-24-000025_gs-20240930.htm:5]** 

What led to the substantial increase in investing outflows in Q3 2024?

The significant drop in cash and cash equivalents by Q3 2024 was primarily driven by a steep decline in net cash from operating and investing activities. Specifically, there were substantial cash outflows from trading assets under operating activities and net purchases of investments—mainly U.S. government and agency obligations—in the investing activities. These outflows were only partially offset by factors in financing activities, such as inflows from deposits and other secured financings, as well as a modest gain from exchange rate changes.  **[0000886982-24-000025_gs-20240930.htm:264]** **[0000886982-24-000025_gs-20240930.htm:5]** 

Why did cash and cash equivalents drop so significantly by Q3 2024?

48970b2a255b1be2e2f931028c35331a934f27e34ce3312250d76e62891e524b

The significant jump in pre-tax earnings in Q1 2024 was driven by **higher net revenues** across all segments, notably **improved performance in Global Banking & Markets** where revenues surged, and **growth in Asset & Wealth Management**. Additionally, a **45% reduction in the provision for credit losses** provided further support by positively impacting earnings, despite a slight increase in operating expenses due to higher compensation and benefits costs.  **[0001193125-24-095511_d817877dex991.htm:6]** **[0001193125-24-095511_d817877dex992.htm:1]** 

What drove the significant jump in pre-tax earnings in Q1 2024?

The surge in **net earnings** in Q1 2024 was driven by **multiple factors**. First, there was a significant **increase in net revenues** fueled by strong performance across all business segments. For example, **Global Banking & Markets** saw a boost from higher investment banking fees, FICC, and equities revenues, while **Asset & Wealth Management** benefited from record management fees and increased private banking revenues. Additionally, **Platform Solutions** experienced considerable growth. This robust revenue performance was further enhanced by **improved operating efficiency**, as operating expenses increased by just **3% YoY** and the efficiency ratio improved considerably, bolstering overall profitability. Finally, adjustments in the **provision for credit losses** and a higher **Return on Equity (ROE)** contributed to the earnings surge, marking a substantial turnaround from previous quarters.  **[0001193125-24-095511_d817877dex991.htm:6]** **[0000886982-24-000016_gs-20240331.htm:167]** **[0001193125-24-095511_d817877dex991.htm:5]** **[0000886982-24-000016_gs-20240331.htm:158]** **[0001193125-24-095511_d817877dex992.htm:1]** 

What factors contributed to the surge in net earnings in Q1 2024?

The documents explain that the strong performance in Q1 2024 was driven by several factors—including a **27% increase in net earnings** to **$3.93 billion**, **16% higher total net revenues** (supported by strong contributions from Global Banking & Markets and Asset & Wealth Management), improved operating leverage, and a **3% reduction in the weighted average shares outstanding**—which together boosted the reported basic EPS to **$11.67** in Q1 2024.  **[0000886982-24-000016_gs-20240331.htm:2]**  While the documents specifically detail these drivers as part of the year-over-year comparison with Q1 2023, they do not directly compare Q1 2024 to Q4 2023. However, when viewed against the Q4 2023 EPS of **$5.53**  **[0000886982-24-000006_gs-20231231.htm:234]** , it is reasonable to infer that the same factors contributed to the nearly doubling of EPS quarter-over-quarter.

Why did EPS nearly double in Q1 2024 compared to the previous quarter?

The **17% increase** in Q3 2024 was mainly driven by **higher average balances* and **higher interest rates** applied to key segments. Increases in revenues from **trading assets**, **collateralized agreements**, and **investments** significantly contributed to the boost in interest income, despite this gain being partially offset by a decline in deposits with banks.  **[0001193125-24-237206_d824176dex991.htm:7]** **[0000886982-24-000025_gs-20240930.htm:139]** 

What underpinned the increase in interest income in Q3 2024?

The annual EPS declined in FY 2023 because a combination of factors negatively impacted profitability. **Net earnings** dropped by **27%**, significantly reducing earnings available to common shareholders, while **strategic decisions** and **FDIC special assessment fees** cost the firm **$2.8 billion**, which translated directly into an **$8.04 reduction in EPS**. Additionally, **operating expenses increased by 11%** (with notable spikes in depreciation, amortization, and other costs), **investment banking fees fell by 16%**, and **net interest income dropped by 17%** due to a rise in interest expenses. These factors collectively drove the **24% decline in EPS** from **$30.42 in FY 2022 to $23.05 in FY 2023**.  **[0001193125-24-008077_d615098dex991.htm:11]** **[GS_3370281_3]** **[0001193125-24-008077_d615098dex991.htm:9]** 

Why did annual EPS decline in FY 2023 compared to FY 2022?

ab78d00323083290b718fb52f736ffdc077f31d7bcd6b4fa8487cf8fb0819745

Net earnings (USD, millions)

Depreciation and amortization (USD, millions)

Provision for credit losses (USD, millions)

Common stock repurchased (USD, millions)

Unsecured short-term borrowings, net (USD, millions)

Deposits, net (USD, millions)

Trading assets (USD, millions)

Trading liabilities (USD, millions)

7dd9dc7916f384e5112739a2be5e7456c6fc34089a25577247e9f0b22b1db9b2

Cash and cash equivalents (USD, millions)

Securities purchased under agreements to resell (includes fair value) (USD, millions)

Securities borrowed (includes fair value) (USD, millions)

Customer and other receivables (includes fair value) (USD, millions)

Trading assets (at fair value and includes pledged collateral) (USD, millions)

Investments (includes fair value) (USD, millions)

Loans (net of allowance and includes fair value) (USD, millions)

Other assets (includes fair value) (USD, millions)

Total assets (USD, millions)

Deposits (includes fair value) (USD, millions)

Securities sold under agreements to repurchase (at fair value) (USD, millions)

Securities loaned (includes fair value) (USD, millions)

Other secured financings (includes fair value) (USD, millions)

Customer and other payables (USD, millions)

Trading liabilities (at fair value) (USD, millions)

Unsecured short-term borrowings (includes fair value) (USD, millions)

Unsecured long-term borrowings (includes fair value) (USD, millions)

Other liabilities (includes fair value) (USD, millions)

Total liabilities (USD, millions)

Total shareholders’ equity (USD, millions)

Total liabilities and shareholders’ equity (USD, millions)

61f33472e676dc5a92305612d651ad33195f9dcac9c6f4e8827e0e3c4b0129d2

Investment banking revenues (USD, millions)

Investment management revenues (USD, millions)

Commissions and fees revenues (USD, millions)

Market making revenues (USD, millions)

Other principal transactions revenues (USD, millions)

Total non-interest revenues (USD, millions)

Interest income (USD, millions)

Interest expense (USD, millions)

Net interest income (USD, millions)

Total net revenues (USD, millions)

Compensation and benefits expenses (USD, millions)

Transaction based expenses (USD, millions)

Market development expenses (USD, millions)

Communications and technology expenses (USD, millions)

Depreciation and amortization expenses (USD, millions)

Occupancy expenses (USD, millions)

Professional fees expenses (USD, millions)

Other expenses (USD, millions)

Total operating expenses (USD, millions)

Pre-tax earnings (USD, millions)

Provision for taxes (USD, millions)

Preferred stock dividends (USD, millions)

Net earnings applicable to common shareholders (USD, millions)

Earnings per common share - Basic (USD)

Earnings per common share - Diluted (USD)

e039d234d7ca400b14d40d9f57a4323dbedc48697dde945ce5bff54dff04fa34

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

ffa3ea49d9ded31c87fa682b6f51be7f0725a2ac409b2c0fe669bf5e46441786

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

c8568b387a8d77ef4743d6682966e8d44cd26dba1065be99a19aae915b4739d0

ad619737cacd053ff102d8352efaa959b0b015f05162b57bc7b89659efa2de05

4099e1058f4a70de0ac20c6db38cdd4e623a7d814afedaf8dbd9a30d5ee1fe18

Global Banking & Markets

- Non-interest revenues

- Net interest income

Asset & Wealth Management

Platform Solutions

Investment Banking

Investment Management

Commissions and Fees

Market Making

Other Principal Transactions

- Consumer Platforms

- Transaction Banking and Other

Total Revenue

c5033f4ec2e74b0e8897ee9963b7ecf5ae3a350eef2ae686c0ab631aa1823c8b

Americas

EMEA

Asia

1a4c4040c733a4044db42e93da5d18ce5d7a5624fe34960c1e8d7fc4b6ca8497

GOLDMAN SACHS GROUP (GS)

Financials