Goldman Sachs : 3Q21 Earnings Press Release

Third Quarter 2021 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 2021 Earnings Results

Goldman Sachs Reports Third Quarter Earnings Per Common Share of $14.93

"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."

• David M. Solomon, Chairman and Chief Executive Officer

		Financial Summary
Net Revenues	Net Earnings		EPS
3Q21	$13.61 billion	3Q21	$5.38 billion	3Q21	$14.93
3Q21 YTD	$46.70 billion	3Q21 YTD	$17.70 billion	3Q21 YTD	$48.59

Annualized ROE1	Annualized ROTE1	Book Value Per Share
3Q21	22.5%	3Q21	23.8%	3Q21	$277.25
3Q21 YTD	25.7%	3Q21 YTD	27.2%	YTD Growth	17.4%

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.

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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

Consumer & Wealth
Management		Investment Banking
15%
Investment
	Banking	$3.70 billion
	27%
			Global Markets
Asset			$5.61 billion
	FICC	$2.51 billion
Management
	Equities	$3.10 billion
17%
		Asset Management
	FICC	$2.28 billion
Equities	18%

23%
	Consumer & Wealth Management
Global Markets	$2.02 billion
41%	2

Goldman Sachs Reports

Third Quarter 2021 Earnings Results

Net Revenues

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

$13.61 billion

Investment Banking

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

$3.70 billion

Financial advisory	$1.65 billion
Underwriting	$1.90 billion
Corporate lending	$152 million

Global Markets

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

$5.61 billion

FICC intermediation	$2.00 billion
FICC financing	$513 million
FICC	$2.51 billion
Equities intermediation	$1.92 billion
Equities financing	$1.18 billion
Equities	$3.10 billion

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Goldman Sachs Reports

Third Quarter 2021 Earnings Results

Asset Management

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

Asset Management

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.

$2.28 billion

Management and other fees

Incentive fees

Equity investments Lending and debt

investments

$724 million $100 million $935 million

$520 million

Consumer & Wealth Management

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

$2.02 billion

Wealth management	$1.64 billion
Consumer banking	$382 million

Provision for Credit Losses

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.

Provision for Credit Losses

$175 million

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