Yesterday, New York-headquartered Goldman Sachs posted its full year financial results for 2023 and its fourth quarter earnings results.

Goldman Sachs has reported full year net revenues of $46.25 billion, 2 per cent lower compared with 2022, reflecting lower net revenues in global banking and markets, largely offset by higher net revenues in platform solutions and asset and wealth management.

Full year net revenues in asset and wealth management were $13.88 billion for 2023, 4 per cent higher than 2022, reflecting higher management and other fees, and higher net revenues in debt investments, private banking and lending. This was partially offset by significantly lower net revenues in equity investments and significantly lower Incentive fees.

Goldman Sachs said earnings for the fourth quarter of 2023 jumped 51 per cent to $2 billion from a year ago. Net revenues reached $11.32 billion for the quarter, 7 per cent higher than the fourth quarter of 2022, and 4 per cent lower than the third quarter of 2023. The increase reflected higher net revenues in asset and wealth management and platform solutions, partially offset by lower net revenues in global banking and markets. Assets under supervision increased 10 per cent during the year to a record $2.81 trillion, the firm added.

Fourth quarter net revenues in asset and wealth management reached $4.39 billion in 2023, 23 per cent higher than the fourth quarter of 2022 and 36 per cent higher than the third quarter of 2023. The increase compared with the fourth quarter of 2022 reflects higher net revenues in equity investments and debt investments and higher management and other fees. This was partially offset by lower net revenues in private banking and lending, the firm said.

Full year operating expenses reached $34.49 billion for 2023, 11 per cent higher than 2022. The firm’s efficiency ratio was 74.6 per cent for 2023, compared with 65.8 per cent for 2022. Operating expenses were $8.49 billion for the fourth quarter of 2023, 5 per cent higher than the fourth quarter of 2022.

“This was a year of execution for Goldman Sachs. With everything we achieved in 2023 coupled with our clear and simplified strategy, we have a much stronger platform for 2024,” David Solomon, chairman and CEO of Goldman Sachs, said.

The board of directors of Goldman Sachs declared a dividend of $2.75 per common share to be paid on March 28, 2024 to common shareholders on record on February 29, 2024.

Return on average common shareholders’ equity (ROE) was 7.5 per cent for 2023 and annualized ROE was 7.1 per cent for the fourth quarter of 2023. Return on average tangible common shareholders’ equity (ROTE) was 8.1 per cent for 2023 and annualized ROTE was 7.6 per cent for the fourth quarter of 2023.