Goldman Sachs : First Quarter 2021 Earnings Results

First Quarter 2021 Earnings Results

Media Relations: Jake Siewert 212-902-5400

Investor Relations: Heather Kennedy Miner 212-902-0300

The Goldman Sachs Group, Inc. 200 West Street | New York, NY 10282

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 they've 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

Financial Summary

Net Revenues	Net Earnings	EPS
$17.70 billion	$6.84 billion	$18.60

Annualized ROE1	Annualized ROTE1	Book Value Per Share
31.0%	32.9%	$250.81

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.

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Goldman Sachs Reports

First Quarter 2021 Earnings Results

Highlights.

• The firm's 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

Consumer & Wealth
Management	Investment	Investment Banking
10%	Banking
	21%		$3.77 billion
Asset			Global Markets
		$7.58 billion
Management
26%		FICC	$3.89 billion
		Equities	$3.69 billion
	FICC	Asset Management
Equities	22%		$4.61 billion
21%
	Global Markets	Consumer & Wealth Management
	43%		$1.74 billion
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Goldman Sachs Reports

First Quarter 2021 Earnings Results

Net Revenues

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.

Net Revenues

$17.70 billion

Investment Banking

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 firm's backlog2 increased compared with the end of 2020.

Investment Banking

$3.77 billion

Financial Advisory	$1.12 billion
Underwriting	$2.45 billion
Corporate Lending	$205 million

Global Markets

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

$7.58 billion

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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Goldman Sachs Reports

First Quarter 2021 Earnings Results

Asset Management

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

Asset Management

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.

$4.61 billion

Management and Other Fees

Incentive Fees

Equity Investments

Lending and Debt

Investments

$693 million $ 42 million $3.12 billion

$759 million

Consumer & Wealth Management

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

$1.74 billion

Wealth Management	$1.37 billion
Consumer Banking	$371 million

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 firm's allowance for credit losses was $4.24 billion as of March 31, 2021.

Provision for Credit Losses

$(70) million

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