Goldman Sachs Group Inc. (NYSE:GS) stock fell Thursday after the firm reported mixed fourth-quarter fiscal 2025 results.
Apple Card loans Loss
Net revenue declined 3% year over year (Y/Y) to $13.45 billion, missing the consensus estimate of $13.79 billion.
The decline was due to losses in Platform Solutions, mainly due to $2.26 billion in markdowns tied to transferring Apple (NASDAQ:AAPL) Card loans to held-for-sale status and contract termination costs as the program moves to a new issuer.
Net Interest Income rose to $3.71 billion in the quarter from $2.35 billion a year ago quarter.
Operating expenses rose 18% Y/Y to $9.72 billion, on higher compensation and benefits expenses and higher transaction-based expenses.
Bottom-Line Figures
Provision for credit losses was a net benefit of $2.12 billion versus net provisions of $351 million a year ago quarter.
GAAP earnings came in at $14.01 per share, up from $11.95 a year ago and above the $11.65 consensus.
The firm’s efficiency ratio improved to 64.4% for 2025, versus 63.1% for 2024.
The firm’s Standardized CET1 capital ratio stood at 14.4%, while the Advanced CET1 ratio came in at 15.0% in the quarter.
Assets under supervision (AUS) reached a record $3.61 trillion, marking the 31st consecutive quarter of long-term fee-based net inflows.
Management Commentary
David Solomon, Chairman and CEO of Goldman Sachs, added, “Since our first Investor Day where we laid out our comprehensive strategy, the firm has grown its revenues by 60%, improved returns by 500 basis points and delivered total shareholder returns of more than 340%. We continue to see high levels of client engagement across our franchise and expect momentum to accelerate in 2026, activating a flywheel of activity across our entire firm.”
Segment Highlights
Global Banking and Markets revenue rose 22% Y/Y to $10.41 billion, led by a 25% Y/Y rise in investment banking fees and strong performance in FICC (+12% Y/Y) and equities (+25% Y/Y).
Asset and Wealth Management revenue remained broadly flat at $4.72 billion, as significantly lower net revenues in Investments offset higher Management and other fees. Wealth management client assets totaled approximately $1.9 trillion.
Platform Solutions revenue stood at $(1.68) billion versus $592 million a year ago quarter.
Dividend And Share Buyback
Goldman returned $16.78 billion to shareholders in 2025, including $12.36 billion in buybacks and $4.42 billion in dividends.
On January 14, the Board increased the quarterly dividend to $4.50 per common share from $4.00, payable on March 30, 2026, to common shareholders of record as on March 2, 2026.
Goldman Sachs is seeking to raise at least $12 billion through an investment-grade bond sale, Bloomberg reported, citing people familiar with the matter.
GS Price Action: Goldman Sachs Group shares were down 1.57% at $918.02 at the time of publication on Thursday, according to Benzinga Pro data.
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