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Exhibit 99.1
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Third Quarter 2021 Earnings Results
Media Relations: Andrea Williams 212-902-5400 Investor Relations: Carey Halio 212-902-0300
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The Goldman Sachs Group, Inc. 200 West Street | New York, NY 10282
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Third Quarter 2021 Earnings Results
Goldman Sachs Reports Third Quarter Earnings Per Common Share of $14.93
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“The third quarter saw strong operating performance and an acceleration of our investment in the growth of Goldman Sachs. We announced two strategic acquisitions in our Asset Management and Consumer businesses which will enhance our scale and ability to drive higher, more durable returns. Looking forward, the opportunity set continues to be attractive across all of our businesses and our focus remains on serving our clients and executing our strategy.” |
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- David M. Solomon, Chairman and Chief Executive Officer
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Financial Summary
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Net Revenues
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Net Earnings
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EPS
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3Q21 $13.61 billion
3Q21 YTD $46.70 billion
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3Q21 $5.38 billion
3Q21 YTD $17.70 billion
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3Q21 $14.93
3Q21 YTD $48.59
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Annualized ROE1
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Annualized ROTE1
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Book Value Per Share
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3Q21 22.5%
3Q21 YTD 25.7%
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3Q21 23.8%
3Q21 YTD 27.2%
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3Q21 $277.25
YTD Growth 17.4%
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NEW YORK, October 15, 2021 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $13.61 billion and net earnings of $5.38 billion for the third quarter ended September 30, 2021. Net revenues were $46.70 billion and net earnings were $17.70 billion for the first nine months of 2021.
Diluted earnings per common share (EPS) was $14.93 for the third quarter of 2021 compared with $8.98 for the third quarter of 2020 and $15.02 for the second quarter of 2021, and was $48.59 for the first nine months of 2021 compared with $12.65 for the first nine months of 2020. In the prior year, net provisions for litigation and regulatory proceedings reduced diluted EPS by $9.46 for the first nine months of 2020.
Annualized return on average common shareholders’ equity (ROE)1 was 22.5% for the third quarter of 2021 and 25.7% for the first nine months of 2021. Annualized return on average tangible common shareholders’ equity (ROTE)1 was 23.8% for the third quarter of 2021 and 27.2% for the first nine months of 2021.
1
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
Highlights
| ◾ | Results in the third quarter of 2021 evidenced continued strong overall performance with net revenues of $13.61 billion, 26% higher than the third quarter of 2020. |
| ◾ | In the first nine months of 2021, the firm generated net revenues of $46.70 billion, net earnings of $17.70 billion and diluted EPS of $48.59, each surpassing the previous full year records. |
| ◾ | Investment Banking generated its second highest quarterly net revenues of $3.70 billion, reflecting record quarterly net revenues in Financial advisory and continued strength in Underwriting. |
| ◾ | The firm remained ranked #1 in worldwide announced and completed mergers and acquisitions, and in worldwide equity and equity-related offerings, common stock offerings, and initial public offerings for the year-to-date.2 |
| ◾ | Global Markets generated quarterly net revenues of $5.61 billion, primarily reflecting strong performance in Equities, including record Equities financing net revenues, and the second highest Fixed Income, Currency and Commodities (FICC) financing net revenues. |
| ◾ | Consumer & Wealth Management produced quarterly net revenues of over $2 billion for the first time, 35% higher than the third quarter of 2020. |
| ◾ | Firmwide assets under supervision3,4 increased $67 billion during the quarter, including long-term net inflows of $49 billion, to a record $2.37 trillion. Firmwide Management and other fees were a record $1.95 billion for the third quarter of 2021. |
| ◾ | Book value per common share increased by 4.7% during the quarter and 17.4% during the first nine months of 2021 to $277.25. |
| ◾ | During the third quarter of 2021, the firm announced the acquisitions of NN Investment Partners and GreenSky, Inc., to accelerate the firm’s strategy to drive higher, more durable returns. Both are expected to close by the end of the first quarter of 2022. |
Quarterly Net Revenue Mix by Segment
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2
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
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Net Revenues
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| Net revenues were $13.61 billion for the third quarter of 2021, 26% higher than the third quarter of 2020 and 12% lower than the second quarter of 2021. The increase compared with the third quarter of 2020 reflected significantly higher net revenues in Investment Banking, Global Markets and Consumer & Wealth Management, partially offset by lower net revenues in Asset Management. |
Net Revenues
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$13.61 billion
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Investment Banking |
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| Net revenues in Investment Banking were $3.70 billion for the third quarter of 2021, 88% higher than the third quarter of 2020 and 3% higher than the second quarter of 2021. The increase compared with the third quarter of 2020 reflected significantly higher net revenues in Financial advisory, Underwriting and Corporate lending.
The increase in Financial advisory net revenues reflected an increase in completed mergers and acquisitions volumes. The increase in Underwriting net revenues was due to significantly higher net revenues in both Equity underwriting, primarily driven by private placements, convertible offerings and initial public offerings, and Debt underwriting, reflecting an increase in leveraged finance activity. The increase in Corporate lending net revenues primarily reflected net gains related to middle-market lending activities.
The firm’s backlog3 was lower compared with the end of the second quarter of 2021, but remained significantly higher compared with the end of 2020. |
Investment Banking
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$3.70 billion
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| Financial advisory |
$1.65 billion | |||||
| Underwriting |
$1.90 billion | |||||
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Corporate lending
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$152 million
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Global Markets |
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| Net revenues in Global Markets were $5.61 billion for the third quarter of 2021, 23% higher than the third quarter of 2020 and 15% higher than the second quarter of 2021.
Net revenues in FICC were $2.51 billion, essentially unchanged compared with the third quarter of 2020. Net revenues in FICC financing were significantly higher, primarily from mortgage lending. Net revenues in FICC intermediation were lower, reflecting significantly lower net revenues in interest rate products, credit products and mortgages, partially offset by significantly higher net revenues in commodities and higher net revenues in currencies.
Net revenues in Equities were $3.10 billion, 51% higher than the third quarter of 2020, due to significantly higher net revenues in both Equities financing, reflecting increased client activity (including higher average client balances), and Equities intermediation, reflecting significantly higher net revenues in both derivatives and cash products. |
Global Markets
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$5.61 billion
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| FICC intermediation |
$2.00 billion | |||||
| FICC financing |
$513 million | |||||
| FICC |
$2.51 billion | |||||
| Equities intermediation |
$1.92 billion | |||||
| Equities financing |
$1.18 billion | |||||
| Equities
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$3.10 billion
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3
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
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Asset Management |
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| Net revenues in Asset Management were $2.28 billion for the third quarter of 2021,18% lower than the third quarter of 2020 and 56% lower than a strong second quarter of 2021. The decrease compared with the third quarter of 2020 was primarily driven by significantly lower net revenues in Equity investments. In addition, net revenues in Lending and debt investments were lower, while Incentive fees were higher.
The decrease in Equity investments net revenues reflected significant net losses from investments in public equities during the quarter compared with net gains in the third quarter of 2020, partially offset by significantly higher net gains from investments in private equities. The decrease in Lending and debt investments net revenues reflected lower net gains from investments in debt instruments. Management and other fees were essentially unchanged, primarily reflecting higher fee waivers on money market funds, offset by the impact of higher average assets under supervision. The increase in Incentive fees was due to harvesting. |
Asset Management | |||||
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$2.28 billion
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| Management and |
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| other fees |
$724 million | |||||
| Incentive fees |
$100 million | |||||
| Equity investments |
$935 million | |||||
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Lending and debt investments |
$520 million
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Consumer & Wealth Management |
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| Net revenues in Consumer & Wealth Management were $2.02 billion for the third quarter of 2021, 35% higher than the third quarter of 2020 and 16% higher than the second quarter of 2021.
Net revenues in Wealth management were $1.64 billion, 40% higher than the third quarter of 2020. Management and other fees were significantly higher, primarily reflecting the impact of higher average assets under supervision. Incentive fees were significantly higher, due to harvesting, and net revenues in Private banking and lending were higher, primarily reflecting higher loan balances.
Net revenues in Consumer banking were $382 million, 17% higher than the third quarter of 2020, reflecting higher credit card and deposit balances. |
Consumer & Wealth Management
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$2.02 billion
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Wealth management
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$1.64 billion | |||||
| Consumer banking
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$382 million
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Provision for Credit Losses
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Provision for credit losses was $175 million for the third quarter of 2021, compared with $278 million for the third quarter of 2020 and a net benefit of $92 million for the second quarter of 2021. The third quarter of 2021 primarily reflected provisions related to portfolio growth (primarily in credit cards), while the third quarter of 2020 reflected reserve increases from individual impairments related to wholesale loans and growth in credit card loans, partially offset by reserve reductions from paydowns on corporate lines of credit and consumer installment loans.
The firm’s allowance for credit losses was $4.17 billion as of September 30, 2021. |
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Provision for Credit Losses | ||||
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$175 million
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4
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
Operating Expenses
| Operating expenses were $6.59 billion for the third quarter of 2021, 6% higher than the third quarter of 2020 and 24% lower than the second quarter of 2021. The firm’s efficiency ratio3 for the first nine months of 2021 was 52.8%, compared with 70.3% for the first nine months of 2020. |
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Operating Expenses
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$6.59 billion
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The increase in operating expenses compared with the third quarter of 2020 was due to higher technology expenses, professional fees, transaction based expenses and market development expenses. These increases were partially offset by significantly lower net provisions for litigation and regulatory proceedings. Compensation and benefits expenses were slightly higher.
Net provisions for litigation and regulatory proceedings for the third quarter of 2021 were $52 million compared with $256 million for the third quarter of 2020.
Headcount increased 5% compared with the end of the second quarter of 2021, primarily reflecting the timing of campus hires.
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YTD Efficiency Ratio
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52.8%
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Provision for Taxes
| The effective income tax rate for the first nine months of 2021 increased to 19.6% from 18.8% for the first half of 2021, primarily due to a decrease in the impact of tax benefits and changes in the geographic mix of earnings. |
YTD Effective Tax Rate
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19.6%
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Other Matters
| ◾ On October 13, 2021, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $2.00 per common share to be paid on December 30, 2021 to common shareholders of record on December 2, 2021.
◾ During the quarter, the firm returned $1.70 billion of capital to common shareholders, including $1.00 billion of common share repurchases (2.5 million shares at an average cost of $395.28) and $700 million of common stock dividends.3
◾ Global core liquid assets3 averaged $356 billion4 for the third quarter of 2021, compared with an average of $329 billion for the second quarter of 2021. |
Declared Quarterly Dividend Per Common Share
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$2.00
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Common Share Repurchases
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2.5 million shares for $1.00 billion
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Average GCLA
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$356 billion
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5
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services across investment banking, securities, investment management and consumer banking to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
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Cautionary Note Regarding Forward-Looking Statements |
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This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the firm’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the firm’s control. It is possible that the firm’s actual results, financial condition and liquidity may differ, possibly materially, from the anticipated results, financial condition and liquidity in these forward-looking statements. For information about some of the risks and important factors that could affect the firm’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2020.
Information regarding the firm’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio, balance sheet data, global core liquid assets and VaR consists of preliminary estimates. These estimates are forward-looking statements and are subject to change, possibly materially, as the firm completes its financial statements.
Statements about the firm’s investment banking transaction backlog also may constitute forward-looking statements. Such statements are subject to the risk that transactions may be modified or may not be completed at all and related net revenues may not be realized or may be materially less than expected. Important factors that could have such a result include, for underwriting transactions, a decline or weakness in general economic conditions, an outbreak of hostilities, volatility in the securities markets or an adverse development with respect to the issuer of the securities and, for financial advisory transactions, a decline in the securities markets, an inability to obtain adequate financing, an adverse development with respect to a party to the transaction or a failure to obtain a required regulatory approval. For information about other important factors that could adversely affect the firm’s investment banking transactions, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2020.
Statements regarding the firm’s announced acquisitions of NN Investment Partners and GreenSky, Inc. (“GreenSky”) are forward-looking statements. These statements are subject to the risk that the transactions may not close on the anticipated timeline or at all, including due to a failure to obtain requisite regulatory approval and, in the case of GreenSky, shareholder approval, as well as the risk that the firm may be unable to realize the expected benefits of the acquisitions and the risk that integrating NN Investment Partners and GreenSky into the firm’s business may be more difficult, time-consuming or expensive than expected.
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Conference Call |
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A conference call to discuss the firm’s financial results, outlook and related matters will be held at 10:30 am (ET). The call will be open to the public. Members of the public who would like to listen to the conference call should dial 1-888-281-7154 (in the U.S.) or 1-706-679-5627 (outside the U.S.). The number should be dialed at least 10 minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the firm’s website, www.goldmansachs.com/investor-relations. There is no charge to access the call. For those unable to listen to the live broadcast, a replay will be available on the firm’s website or by dialing 1-855-859-2056 (in the U.S.) or 1-404-537-3406 (outside the U.S.) passcode number 64774224 beginning approximately three hours after the event. Please direct any questions regarding obtaining access to the conference call to Goldman Sachs Investor Relations, via e-mail, at gs-investor-relations@gs.com.
6
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
| THREE MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||||||
| SEPTEMBER 30, 2021 |
JUNE 30, 2021 |
SEPTEMBER 30, 2020 |
JUNE 30, 2021 |
SEPTEMBER 30, 2020 |
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INVESTMENT BANKING
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Financial advisory |
$ 1,648 | $ 1,257 | $ 507 | 31 % | 225 % | |||||||||||||||||||
| Equity underwriting |
1,174 | 1,243 | 856 | (6) | 37 | |||||||||||||||||||
| Debt underwriting
|
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726
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950
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571
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(24)
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27
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Underwriting |
1,900 | 2,193 | 1,427 | (13) | 33 | |||||||||||||||||||
| Corporate lending
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152
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159
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35
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(4)
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334
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Net revenues
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3,700
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|
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3,609
|
|
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1,969
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3
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88
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GLOBAL MARKETS
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FICC intermediation |
1,995 | 1,897 | 2,170 | 5 | (8) | |||||||||||||||||||
| FICC financing
|
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513
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|
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423
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332
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|
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21
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55
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| FICC |
2,508 | 2,320 | 2,502 | 8 | – | |||||||||||||||||||
| Equities intermediation |
1,920 | 1,765 | 1,466 | 9 | 31 | |||||||||||||||||||
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Equities financing |
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1,183
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815
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585
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45
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102
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Equities
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3,103
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2,580
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2,051
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20
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51
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Net revenues
|
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5,611
|
|
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4,900
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|
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4,553
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15
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23
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ASSET MANAGEMENT
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Management and other fees |
724 | 727 | 728 | – | (1) | |||||||||||||||||||
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Incentive fees
|
100 | 78 | 28 | 28 | 257 | |||||||||||||||||||
| Equity investments |
935 | 3,717 | 1,423 | (75) | (34) | |||||||||||||||||||
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Lending and debt investments
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520
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610
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589
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(15)
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(12)
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Net revenues
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2,279
|
|
|
5,132
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|
|
2,768
|
|
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(56)
|
|
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(18)
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CONSUMER & WEALTH MANAGEMENT
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Management and other fees |
1,223 | 1,109 | 957 | 10 | 28 | |||||||||||||||||||
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Incentive fees |
121 | 15 | 7 | 707 | N.M. | |||||||||||||||||||
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Private banking and lending
|
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292
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|
|
260
|
|
|
201
|
|
|
12
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|
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45
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| Wealth management |
1,636 | 1,384 | 1,165 | 18 | 40 | |||||||||||||||||||
| Consumer banking
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382
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363
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|
|
326
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|
|
5
|
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17
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| |||||||||
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Net revenues
|
|
2,018
|
|
|
1,747
|
|
|
1,491
|
|
|
16
|
|
|
35
|
| |||||||||
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Total net revenues
|
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$ 13,608
|
|
|
$ 15,388
|
|
|
$ 10,781
|
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(12)
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|
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26
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Geographic Net Revenues (unaudited)3 |
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| $ in millions | ||||||||||||||||||||||||
| THREE MONTHS ENDED | ||||||||||||||||||||||||
| SEPTEMBER 30, 2021 |
JUNE 30, 2021 |
SEPTEMBER 30, 2020 |
||||||||||||||||||||||
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Americas |
$ 8,169 | $ 9,957 | $ 6,873 | |||||||||||||||||||||
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EMEA |
3,394 | 3,478 | 2,470 | |||||||||||||||||||||
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Asia
|
|
2,045
|
|
|
1,953
|
|
|
1,438
|
|
|||||||||||||||
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Total net revenues
|
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$ 13,608
|
|
|
$ 15,388
|
|
|
$ 10,781
|
|
|||||||||||||||
| Americas |
60% | 65% | 64% | |||||||||||||||||||||
|
EMEA |
25% | 22% | 23% | |||||||||||||||||||||
|
Asia
|
|
15%
|
|
|
13%
|
|
|
13%
|
|
|||||||||||||||
|
Total
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
|||||||||||||||
7
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
| NINE MONTHS ENDED | % CHANGE FROM | |||||||||||||||
| SEPTEMBER 30, 2021 |
SEPTEMBER 30, 2020 |
SEPTEMBER 30, 2020 |
||||||||||||||
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INVESTMENT BANKING
|
||||||||||||||||
|
Financial advisory |
$ 4,022 | $ 1,974 | 104 % | |||||||||||||
| Equity underwriting |
3,986 | 2,291 | 74 | |||||||||||||
|
Debt underwriting |
2,556 | 2,144 | 19 | |||||||||||||
|
Underwriting |
6,542 | 4,435 | 48 | |||||||||||||
|
Corporate lending
|
|
516
|
|
|
401
|
|
|
29
|
|
|||||||
|
Net revenues
|
|
11,080
|
|
|
6,810
|
|
|
63
|
|
|||||||
|
GLOBAL MARKETS
|
||||||||||||||||
|
FICC intermediation |
7,343 | 8,493 | (14) | |||||||||||||
|
FICC financing |
1,378 | 1,213 | 14 | |||||||||||||
|
FICC |
8,721 | 9,706 | (10) | |||||||||||||
| Equities intermediation |
6,271 | 5,193 | 21 | |||||||||||||
|
Equities financing |
3,100 | 1,993 | 56 | |||||||||||||
|
Equities
|
|
9,371
|
|
|
7,186
|
|
|
30
|
|
|||||||
|
Net revenues
|
|
18,092
|
|
|
16,892
|
|
|
7
|
|
|||||||
|
ASSET MANAGEMENT
|
||||||||||||||||
|
Management and other fees |
2,144 | 2,052 | 4 | |||||||||||||
|
Incentive fees |
220 | 216 | 2 | |||||||||||||
|
Equity investments |
7,772 | 2,325 | 234 | |||||||||||||
|
Lending and debt investments
|
1,889 | 180 | 949 | |||||||||||||
|
Net revenues
|
|
12,025
|
|
|
4,773
|
|
|
152
|
|
|||||||
|
CONSUMER & WEALTH MANAGEMENT
|
||||||||||||||||
|
Management and other fees |
3,409 | 2,854 | 19 | |||||||||||||
|
Incentive fees |
162 | 86 | 88 | |||||||||||||
|
Private banking and lending |
816 | 538 | 52 | |||||||||||||
|
Wealth management |
4,387 | 3,478 | 26 | |||||||||||||
| Consumer banking
|
|
1,116
|
|
|
866
|
|
|
29
|
|
|||||||
|
Net revenues
|
|
5,503
|
|
|
4,344
|
|
|
27
|
|
|||||||
|
Total net revenues
|
|
$ 46,700
|
|
|
$ 32,819
|
|
|
42
|
|
|||||||
|
Geographic Net Revenues (unaudited)3 $ in millions
|
|
|||||||||||||||
| NINE MONTHS ENDED | ||||||||||||||||
| SEPTEMBER 30, 2021 |
SEPTEMBER 30, 2020 |
|||||||||||||||
| Americas |
$ 28,951 | $ 20,333 | ||||||||||||||
|
EMEA |
11,585 | 8,031 | ||||||||||||||
|
Asia
|
|
6,164
|
|
|
4,455
|
|
||||||||||
|
Total net revenues
|
|
$ 46,700
|
|
|
$ 32,819
|
|
||||||||||
| Americas |
62% | 62% | ||||||||||||||
|
EMEA |
25% | 24% | ||||||||||||||
|
Asia
|
|
13%
|
|
|
14%
|
|
||||||||||
|
Total
|
|
100%
|
|
|
100%
|
|
||||||||||
8
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings (unaudited)
In millions, except per share amounts and headcount
| THREE MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||||||||
| SEPTEMBER 30, 2021 |
JUNE 30, 2021 |
SEPTEMBER 30, 2020 |
JUNE 30, 2021 |
SEPTEMBER 30, 2020 |
||||||||||||||||||||||
|
REVENUES
|
||||||||||||||||||||||||||
|
Investment banking |
$ 3,548 | $ 3,450 | $ 1,934 | 3 % | 83 % | |||||||||||||||||||||
|
Investment management |
2,139 | 1,905 | 1,689 | 12 | 27 | |||||||||||||||||||||
|
Commissions and fees |
860 | 833 | 804 | 3 | 7 | |||||||||||||||||||||
|
Market making |
3,929 | 3,274 | 3,327 | 20 | 18 | |||||||||||||||||||||
|
Other principal transactions
|
|
1,568
|
|
|
4,297
|
|
|
1,943
|
|
|
(64)
|
|
|
(19)
|
|
|||||||||||
|
Total non-interest revenues
|
|
12,044
|
|
|
13,759
|
|
|
9,697
|
|
|
(12)
|
|
|
24
|
|
|||||||||||
| Interest income |
3,117 | 2,939 | 2,932 | 6 | 6 | |||||||||||||||||||||
|
Interest expense
|
|
1,553
|
|
|
1,310
|
|
|
1,848
|
|
|
19
|
|
(16) | |||||||||||||
|
Net interest income
|
|
1,564
|
|
|
1,629
|
|
|
1,084
|
|
|
(4)
|
|
|
44
|
|
|||||||||||
|
Total net revenues
|
|
13,608
|
|
|
15,388
|
|
|
10,781
|
|
|
(12)
|
|
|
26
|
|
|||||||||||
|
Provision for credit losses
|
|
175
|
|
|
(92)
|
|
|
278
|
|
|
N.M.
|
|
|
(37)
|
|
|||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||||||||||||
|
Compensation and benefits |
3,167 | 5,263 | 3,117 | (40) | 2 | |||||||||||||||||||||
|
Transaction based |
1,139 | 1,125 | 1,011 | 1 | 13 | |||||||||||||||||||||
|
Market development |
165 | 115 | 70 | 43 | 136 | |||||||||||||||||||||
|
Communications and technology |
397 | 371 | 340 | 7 | 17 | |||||||||||||||||||||
|
Depreciation and amortization |
509 | 520 | 468 | (2) | 9 | |||||||||||||||||||||
|
Occupancy |
239 | 241 | 235 | (1) | 2 | |||||||||||||||||||||
|
Professional fees |
433 | 344 | 298 | 26 | 45 | |||||||||||||||||||||
|
Other expenses
|
542 | 661 | 665 |
|
(18)
|
|
|
(18)
|
|
|||||||||||||||||
|
Total operating expenses
|
|
6,591
|
|
|
8,640
|
|
|
6,204
|
|
|
(24)
|
|
|
6
|
|
|||||||||||
| Pre-tax earnings |
6,842 | 6,840 | 4,299 | – | 59 | |||||||||||||||||||||
|
Provision for taxes
|
1,464 | 1,354 | 932 |
|
8
|
|
|
57
|
|
|||||||||||||||||
|
Net earnings
|
5,378 | 5,486 | 3,367 |
|
(2)
|
|
|
60
|
|
|||||||||||||||||
| Preferred stock dividends
|
94 | 139 | 134 |
|
(32)
|
|
|
(30)
|
|
|||||||||||||||||
|
Net earnings applicable to common shareholders
|
|
$ 5,284
|
|
|
$ 5,347
|
|
|
$ 3,233
|
|
|
(1)
|
|
|
63
|
|
|||||||||||
|
EARNINGS PER COMMON SHARE
|
||||||||||||||||||||||||||
|
Basic3 |
$ 15.14 | $ 15.22 | $ 9.07 | (1) % | 67 % | |||||||||||||||||||||
|
Diluted |
$ 14.93 | $ 15.02 | $ 8.98 | (1) | 66 | |||||||||||||||||||||
|
AVERAGE COMMON SHARES
|
||||||||||||||||||||||||||
|
Basic |
348.3 | 350.8 | 355.9 | (1) | (2) | |||||||||||||||||||||
|
Diluted |
353.9 | 356.0 | 359.9 | (1) | (2) | |||||||||||||||||||||
|
SELECTED DATA AT PERIOD-END
|
||||||||||||||||||||||||||
|
Common shareholders’ equity |
$ 96,344 | $ 92,687 | $ 81,447 | 4 | 18 | |||||||||||||||||||||
|
Basic shares3 |
347.5 | 349.9 | 356.0 | (1) | (2) | |||||||||||||||||||||
|
Book value per common share |
$ 277.25 | $ 264.90 | $ 228.78 | 5 | 21 | |||||||||||||||||||||
| Headcount
|
|
43,000
|
|
|
40,800
|
|
|
40,900
|
|
|
5
|
|
|
5
|
|
|||||||||||
9
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings (unaudited)
In millions, except per share amounts
| NINE MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||
|
SEPTEMBER 30, 2021 |
SEPTEMBER 30, 2020 |
SEPTEMBER 30, 2020 |
||||||||||||||||||
|
REVENUES
|
||||||||||||||||||||
| Investment banking
|
$ 10,564 | $ 6,409 | 65 % | |||||||||||||||||
| Investment management
|
5,840 | 5,092 | 15 | |||||||||||||||||
| Commissions and fees
|
2,766 | 2,699 | 2 | |||||||||||||||||
| Market making
|
13,096 | 12,796 | 2 | |||||||||||||||||
| Other principal transactions
|
|
9,759
|
|
|
2,482
|
|
|
293
|
|
|||||||||||
|
Total non-interest revenues
|
|
42,025
|
|
|
29,478
|
|
|
43
|
|
|||||||||||
| Interest income
|
9,110 | 10,716 | (15) | |||||||||||||||||
| Interest expense
|
|
4,435
|
|
|
7,375
|
|
|
(40)
|
|
|||||||||||
|
Net interest income
|
|
4,675
|
|
|
3,341
|
|
|
40
|
|
|||||||||||
|
Total net revenues
|
|
46,700
|
|
|
32,819
|
|
|
42
|
|
|||||||||||
|
Provision for credit losses
|
|
13
|
|
|
2,805
|
|
|
(100)
|
|
|||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||||||
| Compensation and benefits
|
14,473 | 10,830 | 34 | |||||||||||||||||
| Transaction based
|
3,520 | 3,055 | 15 | |||||||||||||||||
| Market development
|
360 | 312 | 15 | |||||||||||||||||
| Communications and technology
|
1,143 | 1,006 | 14 | |||||||||||||||||
| Depreciation and amortization
|
1,527 | 1,404 | 9 | |||||||||||||||||
| Occupancy
|
727 | 706 | 3 | |||||||||||||||||
| Professional fees
|
1,137 | 956 | 19 | |||||||||||||||||
| Other expenses
|
|
1,781
|
|
|
4,807
|
|
|
(63)
|
|
|||||||||||
|
Total operating expenses
|
|
24,668
|
|
|
23,076
|
|
|
7
|
|
|||||||||||
| Pre-tax earnings |
22,019 | 6,938 | 217 | |||||||||||||||||
|
Provision for taxes |
4,319 | 1,985 | 118 | |||||||||||||||||
|
Net earnings
|
17,700 | 4,953 | 257 | |||||||||||||||||
| Preferred stock dividends
|
358 | 400 | (11) | |||||||||||||||||
|
Net earnings applicable to common shareholders
|
$ 17,342 | $ 4,553 | 281 | |||||||||||||||||
|
EARNINGS PER COMMON SHARE
|
||||||||||||||||||||
|
Basic3 |
$ 49.23 | $ 12.71 | 287 % | |||||||||||||||||
|
Diluted |
$ 48.59 | $ 12.65 | 284 | |||||||||||||||||
|
AVERAGE COMMON SHARES |
||||||||||||||||||||
|
Basic |
351.8 | 356.5 | (1) | |||||||||||||||||
|
Diluted
|
|
356.9
|
|
|
360.0
|
|
|
(1)
|
|
|||||||||||
10
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)4
$ in billions
| AS OF | ||||||||||||||||
| SEPTEMBER 30, 2021 |
JUNE 30, 2021 |
|||||||||||||||
|
ASSETS
|
||||||||||||||||
|
Cash and cash equivalents |
$ 212 | $ 240 | ||||||||||||||
|
Collateralized agreements |
400 | 350 | ||||||||||||||
|
Customer and other receivables |
172 | 162 | ||||||||||||||
|
Trading assets |
393 | 376 | ||||||||||||||
|
Investments |
87 | 91 | ||||||||||||||
|
Loans |
143 | 131 | ||||||||||||||
|
Other assets
|
36 | 38 | ||||||||||||||
|
Total assets
|
|
$ 1,443
|
|
|
$ 1,388
|
|
||||||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||
|
Deposits |
$ 333 | $ 306 | ||||||||||||||
|
Collateralized financings |
229 | 217 | ||||||||||||||
|
Customer and other payables |
252 | 239 | ||||||||||||||
|
Trading liabilities |
204 | 199 | ||||||||||||||
|
Unsecured short-term borrowings |
49 | 62 | ||||||||||||||
|
Unsecured long-term borrowings |
243 | 239 | ||||||||||||||
|
Other liabilities |
27 | 24 | ||||||||||||||
|
Total liabilities
|
|
1,337
|
|
|
1,286
|
|
||||||||||
|
Shareholders’ equity
|
106 | 102 | ||||||||||||||
|
Total liabilities and shareholders’ equity
|
|
$ 1,443
|
|
|
$ 1,388
|
|
||||||||||
|
Capital Ratios and Supplementary Leverage Ratio (unaudited)3,4 $ in billions
|
|
|||||||||||||||
| AS OF | ||||||||||||||||
| SEPTEMBER 30, 2021 |
JUNE 30, 2021 |
|||||||||||||||
|
Common equity tier 1 capital |
$ 93.3 | $ 89.4 | ||||||||||||||
|
STANDARDIZED CAPITAL RULES
|
||||||||||||||||
|
Risk-weighted assets5 |
$ 664 | $ 621 | ||||||||||||||
|
Common equity tier 1 capital ratio5 |
14.1% | 14.4% | ||||||||||||||
|
ADVANCED CAPITAL RULES
|
||||||||||||||||
|
Risk-weighted assets |
$ 672 | $ 667 | ||||||||||||||
|
Common equity tier 1 capital ratio |
13.9% | 13.4% | ||||||||||||||
|
SUPPLEMENTARY LEVERAGE RATIO
|
||||||||||||||||
|
Supplementary leverage ratio
|
5.6% | 5.5% | ||||||||||||||
|
Average Daily VaR (unaudited)3,4 $ in millions
|
|
|||||||||||||||
| THREE MONTHS ENDED | ||||||||||||||||
| SEPTEMBER 30, 2021 |
JUNE 30, 2021 |
|||||||||||||||
|
RISK CATEGORIES
|
||||||||||||||||
|
Interest rates |
$ 58 | $ 64 | ||||||||||||||
|
Equity prices |
40 | 48 | ||||||||||||||
|
Currency rates |
12 | 13 | ||||||||||||||
|
Commodity prices |
22 | 22 | ||||||||||||||
|
Diversification effect |
(52) | (57) | ||||||||||||||
|
Total
|
|
$ 80
|
|
|
$ 90
|
|
||||||||||
11
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Assets Under Supervision (unaudited)3,4
$ in billions
| AS OF | ||||||||||||||||||||||||
| SEPTEMBER 30, 2021 |
JUNE 30, 2021 |
SEPTEMBER 30, 2020 |
||||||||||||||||||||||
|
SEGMENT
|
||||||||||||||||||||||||
| Asset Management
|
|
$ 1,678
|
|
|
$ 1,633
|
|
|
$ 1,461
|
|
|||||||||||||||
| Consumer & Wealth Management
|
|
694
|
|
|
672
|
|
|
575
|
|
|||||||||||||||
|
Total AUS
|
|
$ 2,372
|
|
|
$ 2,305
|
|
|
$ 2,036
|
|
|||||||||||||||
|
ASSET CLASS
|
||||||||||||||||||||||||
| Alternative investments
|
|
$ 224
|
|
|
$ 211
|
|
|
$ 182
|
|
|||||||||||||||
| Equity
|
|
569
|
|
|
558
|
|
|
421
|
|
|||||||||||||||
| Fixed income
|
|
940
|
|
|
914
|
|
|
856
|
|
|||||||||||||||
|
Total long-term AUS
|
|
1,733
|
|
|
1,683
|
|
|
1,459
|
|
|||||||||||||||
| Liquidity products
|
|
639
|
|
|
622
|
|
|
577
|
|
|||||||||||||||
|
Total AUS
|
|
$ 2,372
|
|
|
$ 2,305
|
|
|
$ 2,036
|
|
|||||||||||||||
| THREE MONTHS ENDED | ||||||||||||||||||||||||
| SEPTEMBER 30, 2021 |
JUNE 30, 2021 |
SEPTEMBER 30, 2020 |
||||||||||||||||||||||
|
ASSET MANAGEMENT
|
||||||||||||||||||||||||
| Beginning balance
|
|
$ 1,633
|
|
|
$ 1,567
|
|
|
$ 1,499
|
|
|||||||||||||||
| Net inflows / (outflows):
|
||||||||||||||||||||||||
| Alternative investments |
|
3
|
|
|
3
|
|
|
(3)
|
|
|||||||||||||||
| Equity |
|
3
|
|
|
(5)
|
|
|
(5)
|
|
|||||||||||||||
| Fixed income |
|
27
|
|
|
12
|
|
|
22
|
|
|||||||||||||||
|
Total long-term AUS net inflows / (outflows) |
|
33
|
|
|
10
|
|
|
14
|
|
|||||||||||||||
| Liquidity products |
|
11
|
|
|
16
|
|
|
(86)
|
|
|||||||||||||||
|
Total AUS net inflows / (outflows) |
|
44
|
|
|
26
|
|
|
(72)
|
|
|||||||||||||||
| Net market appreciation / (depreciation) |
|
1
|
|
|
40
|
|
|
34
|
|
|||||||||||||||
|
Ending balance |
|
$ 1,678
|
|
|
$ 1,633
|
|
|
$ 1,461
|
|
|||||||||||||||
|
CONSUMER & WEALTH MANAGEMENT
|
||||||||||||||||||||||||
| Beginning balance
|
|
$ 672
|
|
|
$ 637
|
|
|
$ 558
|
|
|||||||||||||||
| Net inflows / (outflows):
|
||||||||||||||||||||||||
| Alternative investments
|
|
6
|
|
|
5
|
|
|
2
|
|
|||||||||||||||
| Equity
|
|
9
|
|
|
8
|
|
|
–
|
|
|||||||||||||||
| Fixed income
|
|
1
|
|
|
(1)
|
|
|
2
|
|
|||||||||||||||
|
Total long-term AUS net inflows / (outflows)
|
|
16
|
|
|
12
|
|
|
4
|
|
|||||||||||||||
| Liquidity products
|
|
6
|
|
|
–
|
|
|
(4)
|
|
|||||||||||||||
|
Total AUS net inflows / (outflows)
|
|
22
|
|
|
12
|
|
|
–
|
|
|||||||||||||||
| Net market appreciation / (depreciation)
|
|
–
|
|
|
23
|
|
|
17
|
|
|||||||||||||||
|
Ending balance
|
|
$
694
|
|
|
$
672
|
|
|
$
575
|
|
|||||||||||||||
|
FIRMWIDE
|
||||||||||||||||||||||||
| Beginning balance
|
|
$ 2,305
|
|
|
$ 2,204
|
|
|
$ 2,057
|
|
|||||||||||||||
| Net inflows / (outflows):
|
||||||||||||||||||||||||
| Alternative investments
|
|
9
|
|
|
8
|
|
|
(1)
|
|
|||||||||||||||
| Equity
|
|
12
|
|
|
3
|
|
|
(5)
|
|
|||||||||||||||
| Fixed income
|
|
28
|
|
|
11
|
|
|
24
|
|
|||||||||||||||
|
Total long-term AUS net inflows / (outflows)
|
|
49
|
|
|
22
|
|
|
18
|
|
|||||||||||||||
| Liquidity products
|
|
17
|
|
|
16
|
|
|
(90)
|
|
|||||||||||||||
|
Total AUS net inflows / (outflows)
|
|
66
|
|
|
38
|
|
|
(72)
|
|
|||||||||||||||
| Net market appreciation / (depreciation)
|
|
1
|
|
|
63
|
|
|
51
|
|
|||||||||||||||
|
Ending balance
|
|
$ 2,372
|
|
|
$ 2,305
|
|
|
$ 2,036
|
|
|||||||||||||||
12
Goldman Sachs Reports
Third Quarter 2021 Earnings Results
|
Footnotes |
|
|
| 1. | Annualized ROE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly common shareholders’ equity. Annualized ROTE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly tangible common shareholders’ equity (tangible common shareholders’ equity is calculated as total shareholders’ equity less preferred stock, goodwill and identifiable intangible assets). Management believes that ROTE is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed internally, and that tangible common shareholders’ equity is meaningful because it is a measure that the firm and investors use to assess capital adequacy. ROTE and tangible common shareholders’ equity are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies. |
The table below presents a reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity:
| AVERAGE FOR THE | ||||||||||||||
| Unaudited, $ in millions | THREE MONTHS ENDED SEPTEMBER 30, 2021 |
|
NINE MONTHS ENDED SEPTEMBER 30, 2021 |
|||||||||||
|
Total shareholders’ equity
|
|
$ 103,599
|
|
|
$ 99,665
|
|
||||||||
| Preferred stock
|
|
(9,766)
|
|
|
(9,628)
|
|
||||||||
|
Common shareholders’ equity
|
|
93,833
|
|
|
90,037
|
|
||||||||
|
Goodwill |
|
(4,331)
|
|
|
(4,332)
|
|
||||||||
| Identifiable intangible assets
|
|
(510)
|
|
|
(558)
|
|
||||||||
|
Tangible common shareholders’ equity
|
|
$ 88,992
|
|
|
$ 85,147
|
|
||||||||
| 2. | Dealogic – January 1, 2021 through September 30, 2021. |
| 3. | For information about the following items, see the referenced sections in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the firm’s Quarterly Report on Form 10-Q for the period ended June 30, 2021: (i) investment banking transaction backlog – see “Results of Operations – Investment Banking” (ii) assets under supervision – see “Results of Operations – Assets Under Supervision” (iii) efficiency ratio – see “Results of Operations – Operating Expenses” (iv) share repurchase program – see “Equity Capital Management and Regulatory Capital – Equity Capital Management” (v) global core liquid assets – see “Risk Management – Liquidity Risk Management” (vi) basic shares – see “Balance Sheet and Funding Sources – Balance Sheet Analysis and Metrics” and (vii) VaR – see “Risk Management – Market Risk Management.” |
| For information about the following items, see the referenced sections in Part I, Item 1 “Financial Statements (Unaudited)” in the firm’s Quarterly Report on Form 10-Q for the period ended June 30, 2021: (i) risk-based capital ratios and the supplementary leverage ratio – see Note 20 “Regulation and Capital Adequacy” (ii) geographic net revenues – see Note 25 “Business Segments” and (iii) unvested share-based awards that have non-forfeitable rights to dividends or dividend equivalents in calculating basic EPS – see Note 21 “Earnings Per Common Share.” |
| 4. | Represents a preliminary estimate for the third quarter of 2021 and may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended September 30, 2021. |
| 5. | In the third quarter of 2021, based on regulatory feedback, the firm revised certain interpretations of the Capital Rules underlying the calculation of Standardized risk-weighted assets which increased risk-weighted assets by approximately $23 billion and reduced the firm’s Standardized CET1 capital ratio by 0.5 percentage points, Standardized Tier 1 capital ratio by 0.5 percentage points to 15.5%, and Standardized Total capital ratio by 0.7 percentage points to 17.7%, all as of September 30, 2021. |
| As of June 30, 2021, this change would have increased risk-weighted assets by approximately $23 billion to $644 billion, which would have reduced the firm’s Standardized CET1 capital ratio of 14.4% by 0.5 percentage points, Standardized Tier 1 capital ratio of 15.9% by 0.6 percentage points, and Standardized Total capital ratio of 18.3% by 0.7 percentage points. As of March 31, 2021, this change would have increased risk-weighted assets by approximately $22 billion to $616 billion, which would have reduced the firm’s Standardized CET1 capital ratio of 14.3% by 0.5 percentage points, Standardized Tier 1 capital ratio of 15.9% by 0.6 percentage points, and Standardized Total capital ratio of 18.4% by 0.7 percentage points. |
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