Goldman Sachs : 4Q21 Earnings Press Release

Full Year and

Fourth 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

Full Year and Fourth Quarter 2021 Earnings Results

Goldman Sachs Reports Record Earnings Per Common Share of $59.45 for 2021

Fourth Quarter Earnings Per Common Share was $10.81

"2021 was a record year for Goldman Sachs. The firm's extraordinary performance is a testament to the strength of our client franchise and people. Moving forward, our leadership team remains committed to growing Goldman Sachs, diversifying our businesses and delivering strong returns for shareholders."

• David M. Solomon, Chairman and Chief Executive Officer

Financial Summary

	Net Revenues		Net Earnings		EPS
2021	$59.34 billion	2021	$21.64 billion	2021	$59.45
4Q21	$12.64 billion	4Q21	$3.94 billion	4Q21	$10.81

ROE1		ROTE1		Book Value Per Share
2021	23.0%	2021	24.3%	2021	$284.39
4Q21	15.6%	4Q21	16.4%	2021 Growth	20.4%

NEW YORK, January 18, 2022 - The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $59.34 billion and net earnings of $21.64 billion for the year ended December 31, 2021. Net revenues were $12.64 billion and net earnings were $3.94 billion for the fourth quarter of 2021.

Diluted earnings per common share (EPS) was $59.45 for the year ended December 31, 2021 compared with $24.74 for the year ended December 31, 2020, and was $10.81 for the fourth quarter of 2021 compared with $12.08 for the fourth quarter of 2020 and $14.93 for the third quarter of 2021. For the year ended December 31, 2020, net provisions for litigation and regulatory proceedings reduced diluted EPS by $9.51.

Return on average common shareholders' equity (ROE)1 was 23.0% for 2021 and annualized ROE was 15.6% for the fourth quarter of 2021. Return on average tangible common shareholders' equity (ROTE)1 was 24.3% for 2021 and annualized ROTE was 16.4% for the fourth quarter of 2021.

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Goldman Sachs Reports

Full Year and Fourth Quarter 2021 Earnings Results

Annual Highlights.

• During the year, the firm generated record net revenues of $59.34 billion, record net earnings of $21.64 billion and record diluted EPS of $59.45, each significantly surpassing the previous record. In addition, ROE1 of 23.0% was the highest since 2007.
• Investment Banking generated record net revenues of $14.88 billion, driven by record net revenues in each of Financial advisory, Equity underwriting and Debt underwriting.
• The firm 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.2
• Global Markets generated net revenues of $22.08 billion, the highest annual net revenues in 12 years, reflecting strength in both Equities and Fixed Income, Currency and Commodities (FICC). Equities produced its second highest net revenues and FICC had record financing net revenues.
• Asset Management generated record net revenues of $14.92 billion, including record net revenues in Equity investments and the second highest net revenues in Lending and debt investments.
• Consumer & Wealth Management generated record net revenues of $7.47 billion, reflecting record net revenues in both Wealth management and Consumer banking.
• Firmwide assets under supervision3,4 increased $325 billion during the year, including record long-term net inflows of $130 billion, to a record $2.47 trillion. Firmwide Management and other fees were a record $7.57 billion in 2021.
• Book value per common share increased by 20.4% during the year to $284.39.

Full Year Net Revenue Mix by Segment

Consumer & Wealth
Management		Investment Banking
13%	Investment
	Banking		$14.88 billion
	25%
			Global Markets
Asset			$22.08 billion
	FICC	$10.58 billion
Management
	Equities	$11.49 billion
25%
	FICC		Asset Management
	18%		$14.92 billion

Equities
19%		Consumer & Wealth Management
	Global Markets	$7.47 billion
	37%
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Goldman Sachs Reports

Full Year and Fourth Quarter 2021 Earnings Results

Net Revenues

Full Year

Net revenues were $59.34 billion for 2021, 33% higher than 2020, reflecting higher net revenues across all segments, including significant increases in Asset Management, Investment Banking and Consumer & Wealth Management.

Fourth Quarter

Net revenues were $12.64 billion for the fourth quarter of 2021, 8% higher than the fourth quarter of 2020 and 7% lower than the third quarter of 2021. The increase compared with the fourth quarter of 2020 reflected significantly higher net revenues in Investment Banking and higher net revenues in Consumer & Wealth Management, partially offset by lower net revenues in Asset Management and Global Markets.

2021 Net Revenues

$59.34 billion

4Q21 Net Revenues

$12.64 billion

Investment Banking

Full Year

Net revenues in Investment Banking were $14.88 billion for 2021, 58% higher than 2020, primarily reflecting significantly higher net revenues in Financial advisory and Underwriting.

The increase in Financial advisory net revenues reflected a significant 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 strong industry-wide initial public offerings activity, and Debt underwriting, primarily reflecting elevated industry-wide leveraged finance activity. Corporate lending net revenues were significantly higher, primarily reflecting net gains from lending activities compared with net losses in the prior year, and significantly higher net interest income.

The firm's backlog3 increased significantly compared with the end of 2020.

Fourth Quarter

Net revenues in Investment Banking were $3.80 billion for the fourth quarter of 2021, 45% higher than the fourth quarter of 2020 and 3% higher than the third quarter of 2021. The increase compared with the fourth quarter of 2020 reflected significantly higher net revenues in Financial advisory, Underwriting and Corporate lending.

The increase in Financial advisory net revenues reflected a significant increase in completed mergers and acquisitions volumes. The increase in Underwriting net revenues was due to significantly higher net revenues in Debt underwriting, primarily driven by leveraged finance and asset-backed activity, partially offset by lower net revenues in Equity underwriting compared with a strong prior year period, reflecting lower net revenues from secondary offerings. The increase in Corporate lending net revenues primarily reflected higher net revenues from relationship lending activities as the prior year period included larger net losses from the impact of tightening credit spreads on hedges.

The firm's backlog3 decreased slightly compared with the end of the third quarter of 2021.

2021 Investment Banking

$14.88 billion

Financial advisory	$5.65 billion
Underwriting	$8.52 billion
Corporate lending	$708 million

4Q21 Investment Banking

$3.80 billion

Financial advisory	$1.63 billion
Underwriting	$1.97 billion
Corporate lending	$192 million

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Goldman Sachs Reports

Full Year and Fourth Quarter 2021 Earnings Results

Global Markets

Full Year

Net revenues in Global Markets were $22.08 billion for 2021, 4% higher than 2020.

Net revenues in FICC were $10.58 billion, 9% lower than 2020, due to lower net revenues in FICC intermediation, reflecting significantly lower net revenues in interest rate products and credit products and slightly lower net revenues in currencies, partially offset by significantly higher net revenues in mortgages and higher net revenues in commodities. Net revenues in FICC financing were significantly higher, reflecting significantly higher net revenues from mortgage lending, partially offset by significantly lower net revenues from repurchase agreements.

Net revenues in Equities were $11.49 billion, 20% higher than 2020, due to significantly higher net revenues in Equities financing, primarily reflecting increased activity (including higher average client balances), and higher net revenues in Equities intermediation, across both derivatives and cash products.

Fourth Quarter

Net revenues in Global Markets were $3.99 billion for the fourth quarter of 2021, 7% lower than the fourth quarter of 2020 and 29% lower than the third quarter of 2021.

Net revenues in FICC were $1.86 billion, essentially unchanged compared with the fourth quarter of 2020. Net revenues in FICC intermediation were lower, reflecting significantly lower net revenues in interest rate products and credit products and lower net revenues in commodities and mortgages, partially offset by significantly higher net revenues in currencies. Net revenues in FICC financing were significantly higher, primarily reflecting higher net revenues from mortgage lending.

Net revenues in Equities were $2.12 billion, 11% lower than the fourth quarter of 2020, due to significantly lower net revenues in Equities intermediation, across both derivatives and cash products. Net revenues in Equities financing were significantly higher, primarily reflecting increased activity (including higher average client balances).

2021 Global Markets

$22.08 billion

FICC intermediation	$8.65 billion
FICC financing	$1.94 billion
FICC	$10.58 billion
Equities intermediation	$7.57 billion
Equities financing	$3.92 billion
Equities	$11.49 billion

4Q21 Global Markets

$3.99 billion

FICC intermediation	$1.30 billion
FICC financing	$559 million
FICC	$1.86 billion
Equities intermediation	$1.30 billion
Equities financing	$819 million
Equities	$2.12 billion

Asset Management

Full Year

Net revenues in Asset Management were $14.92 billion for 2021, 87% higher than 2020, primarily reflecting significantly higher net revenues in Equity investments and Lending and debt investments.

The increase in Equity investments net revenues reflected significantly higher net gains from investments in private equities, driven by company-specific events and improved corporate performance compared with 2020, partially offset by net losses from investments in public equities compared with significant net gains in the prior year. The increase in Lending and debt investments net revenues reflected net gains from investments in debt instruments compared with net losses in the prior year, and significantly higher net interest income. Incentive fees were higher, primarily driven by harvesting, and Management and other fees were slightly higher, reflecting the impact of higher average assets under supervision, partially offset by higher fee waivers on money market funds.

2021 Asset Management

$14.92 billion

Management and	$2.88 billion
other fees
Incentive fees	$438 million
Equity investments	$9.19 billion
Lending and debt	$2.41 billion
investments

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