Goldman Sachs faces risks from market volatility (interest rates, equity prices, currencies, commodities), credit risk (counterparty defaults, borrower defaults), operational risk (system failures, process errors), cybersecurity threats, legal and regulatory proceedings (including potential fines and damages), and climate-related and environmental risks. Country-specific risks, like those related to Ukraine, Russia, and Argentina, are also mentioned. The firm's reliance on fair value accounting for many assets and liabilities amplifies market risk.
Financial Upside
Goldman Sachs reports strong net revenue growth (13% in the first nine months of 2024), driven by higher investment banking fees, investment management revenues, and net interest income. Increased assets under supervision (AUS) and favorable market conditions (higher equity and bond prices) contribute to the positive outlook. The firm's share repurchase program and dividend increases signal confidence in future profitability.
