Exhibit 99.1
First Quarter 2021
Earnings Results
Media Relations: Jake Siewert 212-902-5400 Investor Relations: Heather Kennedy Miner 212-902-0300
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The Goldman Sachs Group, Inc. 200 West Street | New York, NY 10282
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First Quarter 2021 Earnings Results
Goldman Sachs Reports First Quarter Earnings Per Common Share of $18.60
We have been working hard alongside our clients in preparation for a world beyond the pandemic and a more stable economic environment. Our businesses remain very well positioned to help our clients reposition for the recovery, and that strength is reflected in the record revenues and earnings achieved this quarter. I am proud of our people for the performance theyve delivered for clients over the past year under challenging conditions, and pleased that our client-centric strategy continues to drive additional value for our shareholders. |
- 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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$17.70 billion
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$6.84 billion
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$18.60
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Annualized ROE1
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Annualized ROTE1
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Book Value Per Share
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31.0%
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32.9%
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$250.81
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NEW YORK, April 14, 2021 The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $17.70 billion and net earnings of $6.84 billion for the first quarter ended March 31, 2021.
Diluted earnings per common share (EPS) was $18.60 for the first quarter of 2021 compared with $3.11 for the first quarter of 2020 and $12.08 for the fourth quarter of 2020.
Annualized return on average common shareholders equity (ROE)1 was 31.0% and annualized return on average tangible common shareholders equity (ROTE)1 was 32.9% for the first quarter of 2021.
1
Goldman Sachs Reports
First Quarter 2021 Earnings Results
Highlights
◾ |
The firms results reflected record quarterly net revenues of $17.70 billion, more than double the amount in the first quarter of 2020, record quarterly net earnings of $6.84 billion and record quarterly diluted EPS of $18.60. Annualized ROE1 of 31.0% was the highest quarterly ROE since 2009. |
◾ |
Investment Banking generated record quarterly net revenues of $3.77 billion, including record Equity underwriting net revenues and strong net revenues in Financial advisory and Debt underwriting. The backlog2 ended the quarter at a record level. |
◾ |
The firm retained its #1 rankings in worldwide announced and completed mergers and acquisitions, worldwide equity and equity-related offerings and common stock offerings for the year-to-date3. |
◾ |
Global Markets generated quarterly net revenues of $7.58 billion, 47% higher than the first quarter of 2020, and its highest quarterly net revenues since 2010, reflecting the second highest quarterly net revenues in Equities and strong net revenues in Fixed Income, Currency and Commodities (FICC). |
◾ |
Asset Management generated record quarterly net revenues of $4.61 billion, reflecting record net revenues from Equity investments. |
◾ |
Consumer & Wealth Management generated record quarterly net revenues of $1.74 billion, reflecting continued growth in both Wealth management and Consumer banking net revenues. |
◾ |
Firmwide assets under supervision2,4 increased $59 billion during the quarter, including long-term net inflows of $37 billion, to a record $2.20 trillion. Firmwide Management and other fees were $1.77 billion for the first quarter of 2021. |
◾ |
Book value per common share increased by 6.2% during the quarter to $250.81. |
◾ |
The firm returned $3.15 billion of capital to common shareholders during the quarter, including $2.70 billion of share repurchases and $448 million of common stock dividends. |
Quarterly Net Revenue Mix by Segment
2
Goldman Sachs Reports
First Quarter 2021 Earnings Results
Net Revenues
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Net revenues were $17.70 billion for the first quarter of 2021, 102% higher than the first quarter of 2020 and 51% higher than the fourth quarter of 2020. The increase compared with the first quarter of 2020 reflected higher net revenues across all segments, including significant increases in Asset Management, Global Markets and Investment Banking. |
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Net Revenues
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$17.70 billion
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Investment Banking |
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Net revenues in Investment Banking were $3.77 billion for the first quarter of 2021, 73% higher than the first quarter of 2020 and 44% higher than the fourth quarter of 2020. The increase compared with the first quarter of 2020 reflected significantly higher net revenues in both Underwriting and Financial advisory, partially offset by significantly lower net revenues in Corporate lending.
The increase in Underwriting net revenues was due to significantly higher net revenues in both Equity underwriting, primarily driven by strong initial public offerings activity, and Debt underwriting, primarily reflecting higher net revenues from leveraged finance and asset-backed activity. The increase in Financial advisory net revenues reflected a significant increase in completed mergers and acquisitions transactions. The decrease in Corporate lending net revenues reflected significantly lower net revenues from relationship lending activities as the prior year period included net gains from the impact of widening credit spreads on hedges.
The firms backlog2 increased compared with the end of 2020. |
Investment Banking
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$3.77 billion
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Financial Advisory |
$1.12 billion | ||||
Underwriting |
$2.45 billion | |||||
Corporate Lending
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$205 million
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Global Markets |
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Net revenues in Global Markets were $7.58 billion for the first quarter of 2021, 47% higher than the first quarter of 2020 and 78% higher than the fourth quarter of 2020.
Net revenues in FICC were $3.89 billion, 31% higher than the first quarter of 2020, due to significantly higher net revenues in FICC intermediation, reflecting significantly higher net revenues in mortgages and interest rate products and, to a lesser extent, commodities and credit products, partially offset by significantly lower net revenues in currencies. Net revenues in FICC financing were essentially unchanged.
Net revenues in Equities were $3.69 billion, 68% higher than the first quarter of 2020, due to significantly higher net revenues in both Equities intermediation, reflecting significantly higher net revenues in both derivatives and cash products, and Equities financing, reflecting improved market conditions and increased activity (including higher average customer balances in the Prime business). |
Global Markets
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$7.58 billion
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FICC Intermediation |
$3.45 billion | |||||
FICC Financing |
$442 million | |||||
FICC |
$3.89 billion | |||||
Equities Intermediation |
$2.59 billion | |||||
Equities Financing |
$1.10 billion | |||||
Equities |
$3.69 billion
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3
Goldman Sachs Reports
First Quarter 2021 Earnings Results
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Asset Management |
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Net revenues in Asset Management were $4.61 billion for the first quarter of 2021, compared with $(96) million for the first quarter of 2020 and $3.21 billion for the fourth quarter of 2020. The increase compared with the first quarter of 2020 primarily reflected strong net revenues in Equity investments and Lending and debt investments, compared with net losses in the prior year period due to a challenging operating environment. In addition, Management and other fees were higher, while Incentive fees were significantly lower.
Equity investments net revenues reflected significantly higher net gains from investments in private equities and net gains from investments in public equities compared with net losses in the prior year period. Lending and debt investments net revenues included net gains, reflecting tighter corporate credit spreads during the quarter, compared with significant net losses in the prior year period. The increase in Management and other fees reflected the impact of higher average assets under supervision, partially offset by fee waivers on money market funds. The decrease in Incentive fees was due to a strong prior year period. |
Asset Management | |||||
$4.61 billion
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Management and Other Fees |
$693 million | |||||
Incentive Fees |
$ 42 million | |||||
Equity Investments |
$3.12 billion | |||||
Lending and Debt Investments |
$759 million
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Consumer & Wealth Management |
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Net revenues in Consumer & Wealth Management were $1.74 billion for the first quarter of 2021, 16% higher than the first quarter of 2020 and 5% higher than the fourth quarter of 2020.
Net revenues in Wealth management were $1.37 billion, 13% higher than the first quarter of 2020, primarily due to higher Management and other fees, reflecting the impact of higher average assets under supervision. Net revenues in Private banking and lending were higher, primarily reflecting higher net interest income from lending, while Incentive fees were lower.
Net revenues in Consumer banking were $371 million, 32% higher than the first quarter of 2020, reflecting higher credit card loan and deposit balances. |
Consumer & Wealth Management
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$1.74 billion
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Wealth Management |
$1.37 billion | |||||
Consumer Banking |
$371 million
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Provision for Credit Losses
Provision for credit losses was a net benefit of $70 million for the first quarter of 2021, compared with net provisions of $937 million for the first quarter of 2020 and $293 million for the fourth quarter of 2020. The first quarter of 2021 included reserve reductions on wholesale and consumer loans reflecting continued improvement in the broader economic environment following challenging conditions that began in the first quarter of 2020 as a result of the COVID-19 pandemic, partially offset by portfolio growth, including provisions related to the pending acquisition of the General Motors co-branded credit card portfolio.
The firms allowance for credit losses was $4.24 billion as of March 31, 2021. |
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Provision for Credit Losses
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$(70) million
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4
Goldman Sachs Reports
First Quarter 2021 Earnings Results
Operating Expenses
Operating expenses were $9.44 billion for the first quarter of 2021, 46% higher than the first quarter of 2020 and 60% higher than the fourth quarter of 2020. The firms efficiency ratio2 for the first quarter of 2021 was 53.3%, compared with 73.9% for the first quarter of 2020.
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Operating Expenses
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$9.44 billion
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The increase in operating expenses compared with the first quarter of 2020 was primarily due to significantly higher compensation and benefits expenses (reflecting strong performance). Transaction based expenses were significantly higher (reflecting an increase in activity levels) and technology expenses were higher, partially offset by lower net provisions for litigation and regulatory proceedings, lower travel and entertainment expenses (included in market development expenses), and lower expenses related to consolidated investments (including impairments).
Net provisions for litigation and regulatory proceedings for the first quarter of 2021 were $74 million compared with $184 million for the first quarter of 2020.
Headcount was essentially unchanged compared with the end of 2020.
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Efficiency Ratio
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53.3%
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Provision for Taxes
The effective income tax rate for the first quarter of 2021 was 18.0%, down from the full year rate of 24.2% for 2020, primarily due to the impact of non-deductible litigation in 2020 and the impact of tax benefits on the settlement of employee share-based awards in the first quarter of 2021. |
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Effective Tax Rate
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18.0%
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Other Matters
◾ On April 13, 2021, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $1.25 per common share to be paid on June 29, 2021 to common shareholders of record on June 1, 2021.
◾ During the quarter, the firm returned $3.15 billion of capital to common shareholders, including $2.70 billion of share repurchases (8.7 million shares at an average cost of $310.04) and $448 million of common stock dividends.2
◾ Global core liquid assets2 averaged $299 billion4 for the first quarter of 2021, compared with an average of $298 billion for the fourth quarter of 2020. |
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Declared Quarterly Dividend Per Common Share
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$1.25
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Common Share Repurchases
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8.7 million shares for $2.70 billion
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Average GCLA
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$299 billion
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5
Goldman Sachs Reports
First 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 firms beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the firms control. It is possible that the firms 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 firms future results, financial condition and liquidity, see Risk Factors in Part I, Item 1A of the firms Annual Report on Form 10-K for the year ended December 31, 2020.
Information regarding the firms 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 firms 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 firms investment banking transactions, see Risk Factors in Part I, Item 1A of the firms Annual Report on Form 10-K for the year ended December 31, 2020.
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Conference Call |
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A conference call to discuss the firms 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 1-888-281-7154 (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 firms 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 firms 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
First Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
THREE MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||||
MARCH 31, 2021 |
DECEMBER 31, 2020 |
MARCH 31, 2020 |
DECEMBER 31, 2020 |
MARCH 31, 2020 |
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INVESTMENT BANKING |
||||||||||||||||||||||
Financial advisory |
$ 1,117 | $ 1,091 | $ 781 | 2 % | 43 % | |||||||||||||||||
Equity underwriting |
1,569 | 1,115 | 378 | 41 | 315 | |||||||||||||||||
Debt underwriting |
880 | 526 | 583 | 67 | 51 | |||||||||||||||||
Underwriting |
2,449 | 1,641 | 961 | 49 | 155 | |||||||||||||||||
Corporate lending
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205 | (119) | 442 | N.M. | (54) | |||||||||||||||||
Net revenues |
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3,771 |
|
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2,613 |
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2,184 |
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44 |
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73 |
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GLOBAL MARKETS |
||||||||||||||||||||||
FICC intermediation |
3,451 | 1,498 | 2,537 | 130 | 36 | |||||||||||||||||
FICC financing |
442 | 380 | 432 | 16 | 2 | |||||||||||||||||
FICC |
3,893 | 1,878 | 2,969 | 107 | 31 | |||||||||||||||||
Equities intermediation |
2,586 | 1,796 | 1,528 | 44 | 69 | |||||||||||||||||
Equities financing |
1,102 | 591 | 666 | 86 | 65 | |||||||||||||||||
Equities
|
3,688 | 2,387 | 2,194 | 55 | 68 | |||||||||||||||||
Net revenues |
|
7,581 |
|
|
4,265 |
|
|
5,163 |
|
|
78 |
|
|
47 |
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ASSET MANAGEMENT |
||||||||||||||||||||||
Management and other fees |
693 | 733 | 640 | (5) | 8 | |||||||||||||||||
Incentive fees |
42 | 71 | 154 | (41) | (73) | |||||||||||||||||
Equity investments |
3,120 | 1,770 | (22) | 76 | N.M. | |||||||||||||||||
Lending and debt investments
|
759 | 637 | (868) | 19 | N.M. | |||||||||||||||||
Net revenues |
|
4,614 |
|
|
3,211 |
|
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(96) |
|
|
44 |
|
|
N.M. |
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CONSUMER & WEALTH MANAGEMENT |
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Management and other fees |
1,077 | 1,035 | 959 | 4 | 12 | |||||||||||||||||
Incentive fees |
26 | 28 | 69 | (7) | (62) | |||||||||||||||||
Private banking and lending |
264 | 242 | 182 | 9 | 45 | |||||||||||||||||
Wealth management |
1,367 | 1,305 | 1,210 | 5 | 13 | |||||||||||||||||
Consumer banking
|
371 | 347 | 282 | 7 | 32 | |||||||||||||||||
Net revenues |
|
1,738 |
|
|
1,652 |
|
|
1,492 |
|
|
5 |
|
|
16 |
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Total net revenues
|
|
$ 17,704
|
|
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$ 11,741
|
|
|
$ 8,743
|
|
|
51
|
|
|
102
|
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Geographic Net Revenues (unaudited)2 |
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$ in millions | ||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||
MARCH 31, 2021 |
DECEMBER 31, 2020 |
MARCH 31, 2020 |
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Americas |
$ 10,825 | $ 7,175 | $ 5,171 | |||||||||||||||||||
EMEA |
4,713 | 2,837 | 2,108 | |||||||||||||||||||
Asia
|
2,166 | 1,729 | 1,464 | |||||||||||||||||||
Total net revenues |
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$ 17,704 |
|
|
$ 11,741 |
|
|
$ 8,743 |
|
|||||||||||||
Americas |
61% | 61% | 59% | |||||||||||||||||||
EMEA |
27% | 24% | 24% | |||||||||||||||||||
Asia
|
12% | 15% | 17% | |||||||||||||||||||
Total
|
|
100%
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100%
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100%
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7
Goldman Sachs Reports
First 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 | |||||||||||||||||||||
MARCH 31, 2021 |
DECEMBER 31, 2020 |
MARCH 31, 2020 |
DECEMBER 31, 2020 |
MARCH 31, 2020 |
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REVENUES
|
||||||||||||||||||||||
Investment banking |
$ 3,566 | $ 2,732 | $ 1,742 | 31 % | 105 % | |||||||||||||||||
Investment management |
1,796 | 1,831 | 1,768 | (2) | 2 | |||||||||||||||||
Commissions and fees |
1,073 | 849 | 1,020 | 26 | 5 | |||||||||||||||||
Market making |
5,893 | 2,750 | 3,682 | 114 | 60 | |||||||||||||||||
Other principal transactions
|
|
3,894
|
|
|
2,169
|
|
|
(782)
|
|
|
80
|
|
|
N.M.
|
| |||||||
Total non-interest revenues
|
|
16,222
|
|
|
10,331
|
|
|
7,430
|
|
|
57
|
|
|
118
|
| |||||||
Interest income |
3,054 | 2,973 | 4,750 | 3 | (36) | |||||||||||||||||
Interest expense
|
|
1,572
|
|
|
1,563
|
|
|
3,437
|
|
|
1
|
|
(54) | |||||||||
Net interest income
|
|
1,482
|
|
|
1,410
|
|
|
1,313
|
|
|
5
|
|
|
13
|
| |||||||
Total net revenues
|
|
17,704
|
|
|
11,741
|
|
|
8,743
|
|
|
51
|
|
|
102
|
| |||||||
Provision for credit losses
|
|
(70)
|
|
|
293
|
|
|
937
|
|
|
N.M.
|
|
|
N.M.
|
| |||||||
OPERATING EXPENSES
|
||||||||||||||||||||||
Compensation and benefits |
6,043 | 2,479 | 3,235 | 144 | 87 | |||||||||||||||||
Transaction based |
1,256 | 1,086 | 1,030 | 16 | 22 | |||||||||||||||||
Market development |
80 | 89 | 153 | (10) | (48) | |||||||||||||||||
Communications and technology |
375 | 341 | 321 | 10 | 17 | |||||||||||||||||
Depreciation and amortization |
498 | 498 | 437 | | 14 | |||||||||||||||||
Occupancy |
247 | 254 | 238 | (3) | 4 | |||||||||||||||||
Professional fees |
360 | 350 | 347 | 3 | 4 | |||||||||||||||||
Other expenses
|
|
578
|
|
|
810
|
|
|
697
|
|
|
(29)
|
|
|
(17)
|
| |||||||
Total operating expenses
|
|
9,437
|
|
|
5,907
|
|
|
6,458
|
|
|
60
|
|
|
46
|
| |||||||
Pre-tax earnings |
8,337 | 5,541 | 1,348 | 50 | 518 | |||||||||||||||||
Provision for taxes
|
|
1,501
|
|
|
1,035
|
|
|
135
|
|
|
45
|
|
|
N.M.
|
| |||||||
Net earnings
|
|
6,836
|
|
|
4,506
|
|
|
1,213
|
|
|
52
|
|
|
464
|
| |||||||
Preferred stock dividends
|
|
125
|
|
|
144
|
|
|
90
|
|
|
(13)
|
|
|
39
|
| |||||||
Net earnings applicable to common shareholders
|
|
$ 6,711
|
|
|
$ 4,362
|
|
|
$ 1,123
|
|
|
54
|
|
|
498
|
| |||||||
EARNINGS PER COMMON SHARE
|
||||||||||||||||||||||
Basic2 |
$ 18.80 | $ 12.23 | $ 3.12 | 54 % | 503 % | |||||||||||||||||
Diluted |
$ 18.60 | $ 12.08 | $ 3.11 | 54 | 498 | |||||||||||||||||
AVERAGE COMMON SHARES
|
||||||||||||||||||||||
Basic |
356.6 | 356.0 | 358.0 | | | |||||||||||||||||
Diluted |
360.9 | 361.0 | 361.1 | | | |||||||||||||||||
SELECTED DATA AT PERIOD-END
|
||||||||||||||||||||||
Common shareholders equity |
$ 88,461 | $ 84,729 | $ 81,176 | 4 | 9 | |||||||||||||||||
Basic shares2 |
352.7 | 358.8 | 355.7 | (2) | (1) | |||||||||||||||||
Book value per common share |
$ 250.81 | $ 236.15 | $ 228.21 | 6 | 10 | |||||||||||||||||
Headcount
|
|
40,300
|
|
|
40,500
|
|
|
38,500
|
|
|
|
|
|
5
|
|
8
Goldman Sachs Reports
First Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)4
$ in billions
AS OF | ||||||||||||||||||||||
MARCH 31, 2021 |
DECEMBER 31, 2020 |
|||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||
Cash and cash equivalents
|
$ 191 | $ 156 | ||||||||||||||||||||
Collateralized agreements
|
324 | 250 | ||||||||||||||||||||
Customer and other receivables
|
165 | 121 | ||||||||||||||||||||
Trading assets
|
375 | 394 | ||||||||||||||||||||
Investments
|
88 | 89 | ||||||||||||||||||||
Loans
|
121 | 116 | ||||||||||||||||||||
Other assets |
|
38
|
|
|
37
|
|
||||||||||||||||
Total assets
|
|
$ 1,302
|
|
|
$ 1,163
|
|
||||||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY
|
||||||||||||||||||||||
Deposits
|
$ 286 | $ 260 | ||||||||||||||||||||
Collateralized financings
|
193 | 174 | ||||||||||||||||||||
Customer and other payables
|
224 | 191 | ||||||||||||||||||||
Trading liabilities
|
201 | 154 | ||||||||||||||||||||
Unsecured short-term borrowings
|
58 | 53 | ||||||||||||||||||||
Unsecured long-term borrowings
|
219 | 213 | ||||||||||||||||||||
Other liabilities |
|
23
|
|
|
22
|
|
||||||||||||||||
Total liabilities
|
|
1,204
|
|
|
1,067
|
|
||||||||||||||||
Shareholders equity |
|
98
|
|
|
96
|
|
||||||||||||||||
Total liabilities and shareholders equity
|
|
$ 1,302
|
|
|
$ 1,163
|
|
||||||||||||||||
Capital Ratios and Supplementary Leverage Ratio (unaudited)2,4 $ in billions
|
|
|||||||||||||||||||||
AS OF | ||||||||||||||||||||||
MARCH 31, 2021 |
DECEMBER 31, 2020 |
|||||||||||||||||||||
Common equity tier 1 capital |
$ 85.2 | $ 81.6 | ||||||||||||||||||||
STANDARDIZED CAPITAL RULES |
||||||||||||||||||||||
Risk-weighted assets
|
|
$ 595
|
|
|
$ 554
|
|
||||||||||||||||
Common equity tier 1 capital ratio |
|
14.3%
|
|
|
14.7%
|
|
||||||||||||||||
ADVANCED CAPITAL RULES |
||||||||||||||||||||||
Risk-weighted assets
|
|
$ 630
|
|
|
$ 610
|
|
||||||||||||||||
Common equity tier 1 capital ratio |
|
13.5%
|
|
|
13.4%
|
|
||||||||||||||||
SUPPLEMENTARY LEVERAGE RATIO |
||||||||||||||||||||||
Supplementary leverage ratio
|
|
6.5%
|
|
|
7.0%
|
|
||||||||||||||||
Average Daily VaR (unaudited)2,4 |
|
|||||||||||||||||||||
$ in millions
|
||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||
MARCH 31, 2021 |
DECEMBER 31, 2020 |
|||||||||||||||||||||
RISK CATEGORIES
|
||||||||||||||||||||||
Interest rates |
$ 58 | $ 57 | ||||||||||||||||||||
Equity prices
|
51 | 50 | ||||||||||||||||||||
Currency rates |
12 | 14 | ||||||||||||||||||||
Commodity prices |
22 | 20 | ||||||||||||||||||||
Diversification effect |
|
(54)
|
|
|
(57)
|
|
||||||||||||||||
Total
|
|
$ 89
|
|
|
$ 84
|
|
9
Goldman Sachs Reports
First Quarter 2021 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Assets Under Supervision (unaudited)2,4
$ in billions
AS OF | ||||||||||||||||||||||
MARCH 31, 2021 |
DECEMBER 31, 2020 |
MARCH 31, 2020 |
||||||||||||||||||||
SEGMENT
|
||||||||||||||||||||||
Asset Management |
$ 1,567 | $ 1,530 | $ 1,309 | |||||||||||||||||||
Consumer & Wealth Management
|
|
637
|
|
|
615
|
|
|
509
|
|
|||||||||||||
Total AUS
|
|
$ 2,204
|
|
|
$ 2,145
|
|
|
$ 1,818
|
|
|||||||||||||
ASSET CLASS
|
||||||||||||||||||||||
Alternative investments |
$ 197 | $ 191 | $ 178 | |||||||||||||||||||
Equity |
516 | 475 | 335 | |||||||||||||||||||
Fixed income
|
|
885
|
|
|
896
|
|
|
771
|
|
|||||||||||||
Total long-term AUS
|
|
1,598
|
|
|
1,562
|
|
|
1,284
|
|
|||||||||||||
Liquidity products
|
|
606
|
|
|
583
|
|
|
534
|
|
|||||||||||||
Total AUS
|
|
$ 2,204
|
|
|
$ 2,145
|
|
|
$ 1,818
|
|
|||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||
MARCH 31, 2021 |
DECEMBER 31, 2020 |
MARCH 31, 2020 |
||||||||||||||||||||
ASSET MANAGEMENT |
||||||||||||||||||||||
Beginning balance |
$ 1,530 | $ 1,461 | $ 1,298 | |||||||||||||||||||
Net inflows / (outflows): |
||||||||||||||||||||||
Alternative investments |
3 | 3 | (1) | |||||||||||||||||||
Equity |
3 | (12) | 2 | |||||||||||||||||||
Fixed income |
|
16
|
|
|
18
|
|
|
7
|
|
|||||||||||||
Total long-term AUS net inflows / (outflows) |
|
22
|
|
|
9
|
|
|
8
|
|
|||||||||||||
Liquidity products
|
|
29
|
|
|
6
|
|
|
66
|
|
|||||||||||||
Total AUS net inflows / (outflows)
|
|
51
|
|
|
15
|
|
|
74
|
|
|||||||||||||
Net market appreciation / (depreciation) |
|
(14)
|
|
|
54
|
|
|
(63)
|
|
|||||||||||||
Ending balance
|
|
$ 1,567
|
|
|
$ 1,530
|
|
|
$ 1,309
|
|
|||||||||||||
CONSUMER & WEALTH MANAGEMENT |
||||||||||||||||||||||
Beginning balance |
$ 615 | $ 575 | $ 561 | |||||||||||||||||||
Net inflows / (outflows): |
||||||||||||||||||||||
Alternative investments |
2 | | | |||||||||||||||||||
Equity |
11 | 8 | 1 | |||||||||||||||||||
Fixed income |
|
2
|
|
|
|
(8)
|
|
|||||||||||||||
Total long-term AUS net inflows / (outflows)
|
|
15
|
|
|
8
|
|
|
(7)
|
|
|||||||||||||
Liquidity products |
|
(6)
|
|
|
|
6
|
|
|||||||||||||||
Total AUS net inflows / (outflows)
|
|
9
|
|
|
8
|
|
|
(1)
|
|
|||||||||||||
Net market appreciation / (depreciation) |
|
13
|
|
|
32
|
|
|
(51)
|
|
|||||||||||||
Ending balance
|
|
$
637
|
|
|
$
615
|
|
|
$
509
|
|
|||||||||||||
FIRMWIDE |
||||||||||||||||||||||
Beginning balance |
$ 2,145 | $ 2,036 | $ 1,859 | |||||||||||||||||||
Net inflows / (outflows): |
||||||||||||||||||||||
Alternative investments |
5 | 3 | (1) | |||||||||||||||||||
Equity |
14 | (4) | 3 | |||||||||||||||||||
Fixed income |
|
18
|
|
|
18
|
|
|
(1)
|
|
|||||||||||||
Total long-term AUS net inflows / (outflows)
|
|
37
|
|
|
17
|
|
|
1
|
|
|||||||||||||
Liquidity products |
|
23
|
|
|
6
|
|
|
72
|
|
|||||||||||||
Total AUS net inflows / (outflows)
|
|
60
|
|
|
23
|
|
|
73
|
|
|||||||||||||
Net market appreciation / (depreciation)
|
|
(1)
|
|
|
86
|
|
|
(114)
|
|
|||||||||||||
Ending balance
|
|
$ 2,204
|
|
|
$ 2,145
|
|
|
$ 1,818
|
|
10
Goldman Sachs Reports
First 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 MARCH 31, 2021 |
|||||||
Total shareholders equity
|
|
$ 96,159
|
|
|||||
Preferred stock
|
|
(9,703)
|
|
|||||
Common shareholders equity
|
|
86,456
|
|
|||||
Goodwill Identifiable intangible assets
|
|
(4,332) (608)
|
|
|||||
Tangible common shareholders equity
|
|
$ 81,516
|
|
2. | For information about the following items, see the referenced sections in Part II, Item 7 Managements Discussion and Analysis of Financial Condition and Results of Operations in the firms Annual Report on Form 10-K for the year ended December 31, 2020: (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 II, Item 8 Financial Statements and Supplementary Data in the firms Annual Report on Form 10-K for the year ended December 31, 2020: (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.
3. | Dealogic January 1, 2021 through March 31, 2021. |
4. | Represents a preliminary estimate for the first quarter of 2021 and may be revised in the firms Quarterly Report on Form 10-Q for the period ended March 31, 2021. |
11