Enhanced Investments - Financial Portal

Published: 2022-10-18 00:00:00 ET

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Exhibit 99.1

LOGO

Third Quarter 2022

Earnings Results

Media Relations: Andrea Williams 212-902-5400

Investor Relations: Carey Halio 212-902-0300

The Goldman Sachs Group, Inc.

200 West Street | New York, NY 10282

Third Quarter 2022 Earnings Results

Goldman Sachs Reports Third Quarter Earnings Per Common Share of $8.25

“Goldman Sachs’ third quarter results reflect the strength, breadth and diversification of our global franchise. Against the backdrop of uncertainty and volatility in the markets, we continue to prudently manage our resources and remain focused on risk management as we serve our clients. Importantly, we are confident that our strategic evolution will drive higher, more durable returns and unlock long-term value for shareholders.

In January 2020, we outlined our strategy in clear and direct terms, introducing a plan to grow and strengthen our core businesses, diversify our products and services, and operate more efficiently as we drive higher, more durable returns. Today, we enter the next phase of our growth, introducing a realignment of our businesses that will enable us to further capitalize on the predominant operating model of One Goldman Sachs as we better serve our clients.”

- David Solomon, Chairman and Chief Executive Officer

Financial Summary



Net Revenues	Net Earnings	EPS
3Q22 $11.98 billion 3Q22 YTD $36.77 billion	3Q22 $3.07 billion 3Q22 YTD $9.94 billion	3Q22 $8.25 3Q22 YTD $26.71

Annualized ROE¹	Annualized ROTE¹	Book Value Per Share
3Q22 11.0% 3Q22 YTD 12.2%	3Q22 12.0% 3Q22 YTD 13.1%	3Q22 $308.22 YTD Growth 8.4%

NEW YORK, October 18, 2022 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $11.98 billion and net earnings of $3.07 billion for the third quarter ended September 30, 2022. Net revenues were $36.77 billion and net earnings were $9.94 billion for the first nine months of 2022.

Diluted earnings per common share (EPS) was $8.25 for the third quarter of 2022 compared with $14.93 for the third quarter of 2021 and $7.73 for the second quarter of 2022, and was $26.71 for the first nine months of 2022 compared with $48.59 for the first nine months of 2021.

Annualized return on average common shareholders’ equity (ROE)¹ was 11.0% for the third quarter of 2022 and 12.2% for the first nine months of 2022. Annualized return on average tangible common shareholders’ equity (ROTE)¹ was 12.0% for the third quarter of 2022 and 13.1% for the first nine months of 2022.

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

Highlights

◾

During the quarter, the firm continued to support clients amid a challenging macroeconomic environment and generated solid quarterly net revenues of $11.98 billion, net earnings of $3.07 billion and diluted EPS of $8.25.

◾

The firm ranked #1 in worldwide announced and completed mergers and acquisitions and in worldwide equity and equity-related offerings for the year-to-date.²

◾

Global Markets generated quarterly net revenues of $6.20 billion, reflecting strong performances in both Fixed Income, Currency and Commodities (FICC) and Equities, particularly in financing.

◾

Consumer & Wealth Management generated record quarterly net revenues of $2.38 billion, 18% higher than the third quarter of 2021.

◾

Firmwide Management and other fees were a record $2.24 billion for the third quarter of 2022, 15% higher than the third quarter of 2021.

◾

Book value per common share increased by 2.1% during the quarter and 8.4% during the first nine months of 2022 to $308.22.

Quarterly Net Revenue Mix by Segment

LOGO

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

Net Revenues


Net revenues were $11.98 billion for the third quarter of 2022, 12% lower than a strong third quarter of 2021 and 1% higher than the second quarter of 2022. The decrease compared with the third quarter of 2021 reflected significantly lower net revenues in Investment Banking and Asset Management, partially offset by higher net revenues in Global Markets and Consumer & Wealth Management.				Net Revenues
				$11.98 billion

Investment Banking


Net revenues in Investment Banking were $1.58 billion for the third quarter of 2022, 57% lower than a strong third quarter of 2021 and 26% lower than the second quarter of 2022. The decrease compared with the third quarter of 2021 reflected significantly lower net revenues in Underwriting, Financial advisory and Corporate lending. The decrease in Underwriting net revenues was due to significantly lower net revenues in both Equity and Debt underwriting, reflecting a significant decline in industry-wide volumes. The decrease in Financial advisory net revenues reflected a significant decline in industry-wide completed mergers and acquisitions transactions from elevated activity levels in the prior year period. The decrease in Corporate lending net revenues was primarily due to net mark-downs on acquisition financing activities and net losses on hedges. The firm’s backlog³ was essentially unchanged compared with the end of the second quarter of 2022.	Investment Banking
	$1.58 billion
	Financial advisory	$972 million
	Underwriting	$569 million
	Corporate lending	$ 35 million

Global Markets


Net revenues in Global Markets were $6.20 billion for the third quarter of 2022, 11% higher than the third quarter of 2021 and 4% lower than the second quarter of 2022. Net revenues in FICC were $3.53 billion, 41% higher than the third quarter of 2021, primarily reflecting significantly higher net revenues in FICC intermediation, driven by significantly higher net revenues in interest rate products and currencies, and higher net revenues in commodities and credit products, partially offset by significantly lower net revenues in mortgages. In addition, net revenues in FICC financing were significantly higher, primarily driven by repurchase agreements and mortgage lending. Net revenues in Equities were $2.68 billion, 14% lower than a strong third quarter of 2021, primarily due to lower net revenues in Equities intermediation, reflecting significantly lower net revenues in cash products and lower net revenues in derivatives. Net revenues in Equities financing were slightly lower.	Global Markets
	$6.20 billion
	FICC intermediation	$2.80 billion
	FICC financing	$725 million
	FICC	$3.53 billion

	Equities intermediation	$1.55 billion
	Equities financing	$1.13 billion
	Equities	$2.68 billion

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

Asset Management


Net revenues in Asset Management were $1.82 billion for the third quarter of 2022, 20% lower than the third quarter of 2021 and 68% higher than the second quarter of 2022. The decrease compared with the third quarter of 2021 primarily reflected significantly lower net revenues in Equity investments and Lending and debt investments, partially offset by significantly higher net revenues in Management and other fees. The decrease in Equity investments net revenues reflected significantly lower net gains from investments in private equities, partially offset by mark-to-market net gains from investments in public equities compared with significant net losses in the third quarter of 2021. The decrease in Lending and debt investments net revenues primarily reflected net mark-downs compared with net mark-ups in the prior year period. Incentive fees were lower, driven by harvesting in the prior year period. The increase in Management and other fees reflected the inclusion of NN Investment Partners (NNIP) in the current period and the impact of fee waivers on money market funds in the prior year period.	Asset Management
	$1.82 billion
	Management and other fees	$1.03 billion
	Incentive fees	$ 36 million
	Equity investments	$527 million
	Lending and debt investments	$231 million

Consumer & Wealth Management


Net revenues in Consumer & Wealth Management were $2.38 billion for the third quarter of 2022, 18% higher than the third quarter of 2021 and 9% higher than the second quarter of 2022. Net revenues in Wealth management were $1.63 billion, essentially unchanged compared with the third quarter of 2021, reflecting significantly lower Incentive fees, driven by harvesting in the prior year period, offset by significantly higher net revenues in Private banking and lending, due to the impact of higher loan and deposit balances. Management and other fees were essentially unchanged. Net revenues in Consumer banking were $744 million, nearly double the amount in the third quarter of 2021, primarily reflecting significantly higher credit card balances and higher deposit spreads.	Consumer & Wealth Management
	$2.38 billion
	Wealth management	$1.63 billion
	Consumer banking	$744 million

Provision for Credit Losses


Provision for credit losses was $515 million for the third quarter of 2022, compared with $175 million in the third quarter of 2021 and $667 million in the second quarter of 2022. Provisions for the third quarter of 2022 reflected consumer portfolio growth, net charge-offs and the impact of continued broad concerns on the macroeconomic outlook. The third quarter of 2021 primarily reflected provisions related to portfolio growth (primarily in credit cards). The firm’s allowance for credit losses was $5.59 billion as of September 30, 2022.				Provision for Credit Losses
				$515 million

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

Operating Expenses


Operating expenses were $7.70 billion for the third quarter of 2022, 17% higher than the third quarter of 2021 and 1% higher than the second quarter of 2022. The firm’s efficiency ratio³ for the first nine months of 2022 was 62.7%, compared with 52.8% for the first nine months of 2021.				Operating Expenses
				$7.70 billion

The increase in operating expenses compared with the third quarter of 2021 included higher compensation and benefits expenses (reflecting a smaller reduction in the year- to-date ratio of compensation and benefits to net revenues, net of provision for credit losses, compared with the prior year period), the inclusion of NNIP and GreenSky, Inc., higher net provisions for litigation and regulatory proceedings, and higher transaction based expenses. Net provisions for litigation and regulatory proceedings for the third quarter of 2022 were $191 million compared with $52 million for the third quarter of 2021. Headcount increased 4% compared with the end of the second quarter of 2022, primarily reflecting the timing of campus hires and investments in growth initiatives.				YTD Efficiency Ratio
				62.7%

Provision for Taxes


The effective income tax rate for the first nine months of 2022 increased to 16.9% from 16.3% for the first half of 2022, primarily due to a decrease in the impact of tax benefits on the settlement of employee share-based awards in the first nine months of 2022 compared with the first half of 2022.
						YTD Effective Tax Rate
						16.9%

Other Matters


◾ On October 17, 2022, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $2.50 per common share to be paid on December 29, 2022 to common shareholders of record on December 1, 2022. ◾ During the quarter, the firm returned $1.89 billion of capital to common shareholders, including $1.00 billion of common share repurchases (3.0 million shares at an average cost of $332.32) and $893 million of common stock dividends.³ ◾ Global core liquid assets³averaged $417 billion⁴ for the third quarter of 2022, compared with an average of $391 billion for the second quarter of 2022.				Declared Quarterly Dividend Per Common Share
				$2.50

				Common Share Repurchases
				3.0 million shares for $1.00 billion

				Average GCLA
				$417 billion

Goldman Sachs Reports

Third Quarter 2022 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.


				Cautionary Note Regarding Forward-Looking Statements

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, 2021.

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 and future results 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 or worsening of hostilities, including the escalation or continuation of the war between Russia and Ukraine, continuing 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, 2021.


				Conference Call

A conference call to discuss the firm’s financial results, outlook and related matters will be held at 9:30 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 1-800-753-0786 (in the U.S.) or 1-323-794-2410 (outside the U.S.) passcode number 7042022. 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 1-888-203-1112 (in the U.S.) or 1- 719-457-0820 (outside the U.S.) passcode number 7042022 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.

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions



	THREE MONTHS ENDED						% CHANGE FROM

	SEPTEMBER 30, 2022		JUNE 30, 2022		SEPTEMBER 30, 2021		JUNE 30, 2022		SEPTEMBER 30, 2021
INVESTMENT BANKING
Financial advisory		$ 972		$ 1,197		$ 1,648		(19) %		(41) %

Equity underwriting		241		131		1,174		84		(79)
Debt underwriting		328		457		726		(28)		(55)
Underwriting		569		588		1,900		(3)		(70)

Corporate lending		35		352		152		(90)		(77)
Net revenues		1,576		2,137		3,700		(26)		(57)

GLOBAL MARKETS
FICC intermediation		2,800		2,839		1,995		(1)		40
FICC financing		725		768		513		(6)		41
FICC		3,525		3,607		2,508		(2)		41

Equities intermediation		1,549		1,734		1,920		(11)		(19)
Equities financing		1,127		1,126		1,183		–		(5)
Equities		2,676		2,860		3,103		(6)		(14)
Net revenues		6,201		6,467		5,611		(4)		11

ASSET MANAGEMENT
Management and other fees		1,027		1,008		724		2		42
Incentive fees		36		160		100		(78)		(64)
Equity investments		527		(221)		935		N.M.		(44)
Lending and debt investments		231		137		520		69		(56)
Net revenues		1,821		1,084		2,279		68		(20)

CONSUMER & WEALTH MANAGEMENT
Management and other fees		1,217		1,224		1,223		(1)		–
Incentive fees		21		24		121		(13)		(83)
Private banking and lending		395		320		292		23		35
Wealth management		1,633		1,568		1,636		4		–

Consumer banking		744		608		382		22		95
Net revenues		2,377		2,176		2,018		9		18

Total net revenues		$ 11,975		$ 11,864		$ 13,608		1		(12)
Geographic Net Revenues (unaudited)³
$ in millions

	THREE MONTHS ENDED

	SEPTEMBER 30, 2022		JUNE 30, 2022		SEPTEMBER 30, 2021
Americas		$ 7,542		$ 7,047		$ 8,169
EMEA		3,094		3,400		3,394
Asia		1,339		1,417		2,045
Total net revenues		$ 11,975		$ 11,864		$ 13,608

Americas		63%		59%		60%
EMEA		26%		29%		25%
Asia		11%		12%		15%
Total		100%		100%		100%

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions



	NINE MONTHS ENDED				% CHANGE FROM

	SEPTEMBER 30, 2022		SEPTEMBER 30, 2021		SEPTEMBER 30, 2021
INVESTMENT BANKING
Financial advisory		$ 3,296		$ 4,022		(18) %

Equity underwriting		633		3,986		(84)
Debt underwriting		1,528		2,556		(40)
Underwriting		2,161		6,542		(67)

Corporate lending		667		516		29
Net revenues		6,124		11,080		(45)

GLOBAL MARKETS
FICC intermediation		9,677		7,343		32
FICC financing		2,178		1,378		58
FICC		11,855		8,721		36

Equities intermediation		5,444		6,271		(13)
Equities financing		3,241		3,100		5
Equities		8,685		9,371		(7)
Net revenues		20,540		18,092		14

ASSET MANAGEMENT
Management and other fees		2,807		2,144		31
Incentive fees		248		220		13
Equity investments		(61)		7,772		N.M.
Lending and debt investments		457		1,889		(76)
Net revenues		3,451		12,025		(71)

CONSUMER & WEALTH MANAGEMENT
Management and other fees		3,696		3,409		8
Incentive fees		72		162		(56)
Private banking and lending		1,054		816		29
Wealth management		4,822		4,387		10

Consumer banking		1,835		1,116		64
Net revenues		6,657		5,503		21

Total net revenues		$ 36,772		$ 46,700		(21)
Geographic Net Revenues (unaudited)³ $ in millions

	NINE MONTHS ENDED

	SEPTEMBER 30, 2022		SEPTEMBER 30, 2021
Americas		$ 21,975		$ 28,951
EMEA		10,344		11,585
Asia		4,453		6,164
Total net revenues		$ 36,772		$ 46,700

Americas		60%		62%
EMEA		28%		25%
Asia		12%		13%
Total		100%		100%

Goldman Sachs Reports

Third Quarter 2022 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, 2022		JUNE 30, 2022			SEPTEMBER 30, 2021		JUNE 30, 2022			SEPTEMBER 30, 2021
REVENUES
Investment banking		$ 1,541		$ 1,785			$ 3,548		(14	) %		(57	) %
Investment management		2,276		2,393			2,139		(5	)		6
Commissions and fees		995		1,073			860		(7	)		16
Market making		4,642		4,929			3,929		(6	)		18
Other principal transactions		478		(50	)		1,568		N.M	.		(70	)
Total non-interest revenues		9,932		10,130			12,044		(2	)		(18	)

Interest income		8,550		4,851			3,117		76			174
Interest expense		6,507		3,117			1,553		109			319
Net interest income		2,043		1,734			1,564		18			31

Total net revenues		11,975		11,864			13,608		1			(12	)

Provision for credit losses		515		667			175		(23	)		194

OPERATING EXPENSES
Compensation and benefits		3,606		3,695			3,167		(2	)		14
Transaction based		1,317		1,317			1,139		–			16
Market development		199		235			165		(15	)		21
Communications and technology		459		444			397		3			16
Depreciation and amortization		666		570			509		17			31
Occupancy		255		259			239		(2	)		7
Professional fees		465		490			433		(5	)		7
Other expenses		737		643			542		15			36
Total operating expenses		7,704		7,653			6,591		1			17

Pre-tax earnings		3,756		3,544			6,842		6			(45	)
Provision for taxes		687		617			1,464		11			(53	)
Net earnings		3,069		2,927			5,378		5			(43	)
Preferred stock dividends		107		141			94		(24	)		14
Net earnings applicable to common shareholders		$ 2,962		$ 2,786			$ 5,284		6			(44	)

EARNINGS PER COMMON SHARE
Basic³		$ 8.35		$ 7.81			$ 15.14		7	%		(45	) %
Diluted		$ 8.25		$ 7.73			$ 14.93		7			(45	)

AVERAGE COMMON SHARES
Basic		352.8		355.0			348.3		(1	)		1
Diluted		359.2		360.5			353.9		–			1

SELECTED DATA AT PERIOD-END
Common shareholders’ equity		$ 108,587		$ 107,168			$ 96,344		1			13
Basic shares³		352.3		355.0			347.5		(1	)		1
Book value per common share		$ 308.22		$ 301.88			$ 277.25		2			11

Headcount		49,100		47,000			43,000		4			14

Goldman Sachs Reports

Third Quarter 2022 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, 2022		SEPTEMBER 30, 2021		SEPTEMBER 30, 2021
REVENUES
Investment banking		$ 5,457		$ 10,564		(48) %
Investment management		6,733		5,840		15
Commissions and fees		3,079		2,766		11
Market making		15,561		13,096		19
Other principal transactions		338		9,759		(97)
Total non-interest revenues		31,168		42,025		(26)

Interest income		16,613		9,110		82
Interest expense		11,009		4,435		148
Net interest income		5,604		4,675		20

Total net revenues		36,772		46,700		(21)

Provision for credit losses		1,743		13		N.M.

OPERATING EXPENSES
Compensation and benefits		11,384		14,473		(21)
Transaction based		3,878		3,520		10
Market development		596		360		66
Communications and technology		1,327		1,143		16
Depreciation and amortization		1,728		1,527		13
Occupancy		765		727		5
Professional fees		1,392		1,137		22
Other expenses		2,003		1,781		12
Total operating expenses		23,073		24,668		(6)

Pre-tax earnings		11,956		22,019		(46)
Provision for taxes		2,021		4,319		(53)
Net earnings		9,935		17,700		(44)
Preferred stock dividends		356		358		(1)
Net earnings applicable to common shareholders		$ 9,579		$ 17,342		(45)

EARNINGS PER COMMON SHARE
Basic³		$ 27.03		$ 49.23		(45) %
Diluted		$ 26.71		$ 48.59		(45)

AVERAGE COMMON SHARES
Basic		353.0		351.8		–
Diluted		358.6		356.9		–

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)⁴

$ in billions

AS OF

SEPTEMBER 30,

2022

JUNE 30,

2022

ASSETS

Cash and cash equivalents

$ 284

$ 288

Collateralized agreements

380

448

Customer and other receivables

166

163

Trading assets

384

372

Investments

127

115

Loans

177

176

Other assets

Total assets

$ 1,557

$ 1,601

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

$ 395

$ 391

Collateralized financings

219

228

Customer and other payables

279

280

Trading liabilities

232

255

Unsecured short-term borrowings

Unsecured long-term borrowings

240

251

Other liabilities

Total liabilities

1,438

1,483

Shareholders’ equity

119

118

Total liabilities and shareholders’ equity

$ 1,557

$ 1,601

Capital Ratios and Supplementary Leverage Ratio (unaudited)^3,4

$ in billions

AS OF

SEPTEMBER 30,

2022

JUNE 30,

2022

Common equity tier 1 capital

$ 98.7

$ 98.3

STANDARDIZED CAPITAL RULES

Risk-weighted assets

$ 689

$ 692

Common equity tier 1 capital ratio

14.3%

14.2%

ADVANCED CAPITAL RULES

Risk-weighted assets

$ 675

$ 686

Common equity tier 1 capital ratio

14.6%

14.3%

SUPPLEMENTARY LEVERAGE RATIO

Supplementary leverage ratio

5.6%

5.6%

Average Daily VaR (unaudited)^3,4

$ in millions

THREE MONTHS ENDED

SEPTEMBER 30,

2022

JUNE 30,

2022

RISK CATEGORIES

Interest rates

$ 112

$ 104

Equity prices

Currency rates

Commodity prices

Diversification effect

(103)

(102)

Total

$ 130

$ 124

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Assets Under Supervision (unaudited)^3,4

$ in billions



	AS OF

	SEPTEMBER 30, 2022		JUNE 30, 2022		SEPTEMBER 30, 2021
SEGMENT
Asset Management		$ 1,760		$ 1,824		$ 1,678
Consumer & Wealth Management		667		671		694
Total AUS		$ 2,427		$ 2,495		$ 2,372

ASSET CLASS
Alternative investments		$ 256		$ 254		$ 224
Equity		516		552		569
Fixed income		955		1,007		940
Total long-term AUS		1,727		1,813		1,733
Liquidity products		700		682		639
Total AUS		$ 2,427		$ 2,495		$ 2,372


	THREE MONTHS ENDED

	SEPTEMBER 30, 2022		JUNE 30, 2022		SEPTEMBER 30, 2021
ASSET MANAGEMENT
Beginning balance		$ 1,824		$ 1,656		$ 1,633
Net inflows / (outflows):
Alternative investments		(2)		3		3
Equity		(4)		(2)		3
Fixed income		(1)		(2)		27
Total long-term AUS net inflows / (outflows)		(7)		(1)		33
Liquidity products		14		6		11
Total AUS net inflows / (outflows)		7		5		44
Acquisitions / (dispositions)		6		305		–
Net market appreciation / (depreciation)		(77)		(142)		1
Ending balance		$ 1,760		$ 1,824		$ 1,678

CONSUMER & WEALTH MANAGEMENT
Beginning balance		$ 671		$ 738		$ 672
Net inflows / (outflows):
Alternative investments		9		1		6
Equity		2		3		9
Fixed income		5		(1)		1
Total long-term AUS net inflows / (outflows)		16		3		16
Liquidity products		4		(13)		6
Total AUS net inflows / (outflows)		20		(10)		22
Acquisitions / (dispositions)		(2)		–		–
Net market appreciation / (depreciation)		(22)		(57)		–
Ending balance		$ 667		$ 671		$ 694

FIRMWIDE
Beginning balance		$ 2,495		$ 2,394		$ 2,305
Net inflows / (outflows):
Alternative investments		7		4		9
Equity		(2)		1		12
Fixed income		4		(3)		28
Total long-term AUS net inflows / (outflows)		9		2		49
Liquidity products		18		(7)		17
Total AUS net inflows / (outflows)		27		(5)		66
Acquisitions / (dispositions)		4		305		–
Net market appreciation / (depreciation)		(99)		(199)		1
Ending balance		$ 2,427		$ 2,495		$ 2,372

Goldman Sachs Reports

Third Quarter 2022 Earnings Results

Footnotes

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, 2022		NINE MONTHS ENDED SEPTEMBER 30, 2022
Total shareholders’ equity		$ 118,013		$ 115,418
Preferred stock		(10,703)		(10,703)
Common shareholders’ equity		107,310		104,715
Goodwill		(6,242)		(5,546)
Identifiable intangible assets		(1,987)		(1,463)
Tangible common shareholders’ equity		$ 99,081		$ 97,706

Dealogic – January 1, 2022 through September 30, 2022.

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, 2022: (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 “Capital Management and Regulatory Capital – 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, 2022: (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.”

Represents a preliminary estimate for the third quarter of 2022 and may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended September 30, 2022.