The Goldman Sachs Group, Inc. 8K Third Quarter 2021 Earnings Results | GS 15 Oct 21

Exhibit 99.1

LOGO

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 YTD $46.70 billion	3Q21 $5.38 billion 3Q21 YTD $17.70 billion	3Q21 $14.93 3Q21 YTD $48.59

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

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 supervision^3,4 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

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

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 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.	Asset Management
	$2.28 billion
	Management and
	other fees	$724 million
	Incentive fees	$100 million
	Equity investments	$935 million
	Lending and debt investments	$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

Goldman Sachs Reports

Third Quarter 2021 Earnings Results

Operating Expenses


Operating expenses were $6.59 billion for the third quarter of 2021, 6% higher than the third quarter of 2020 and 24% lower than the second quarter of 2021. The firm’s efficiency ratio³ for the first nine months of 2021 was 52.8%, compared with 70.3% for the first nine months of 2020.				Operating Expenses
				$6.59 billion

The increase in operating expenses compared with the third quarter of 2020 was due to higher technology expenses, professional fees, transaction based expenses and market development expenses. These increases were partially offset by significantly lower net provisions for litigation and regulatory proceedings. Compensation and benefits expenses were slightly higher. Net provisions for litigation and regulatory proceedings for the third quarter of 2021 were $52 million compared with $256 million for the third quarter of 2020. Headcount increased 5% compared with the end of the second quarter of 2021, primarily reflecting the timing of campus hires.				YTD Efficiency Ratio
				52.8%

Provision for Taxes


The effective income tax rate for the first nine months of 2021 increased to 19.6% from 18.8% for the first half of 2021, primarily due to a decrease in the impact of tax benefits and changes in the geographic mix of earnings.				YTD Effective Tax Rate
				19.6%

Other Matters


◾ On October 13, 2021, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $2.00 per common share to be paid on December 30, 2021 to common shareholders of record on December 2, 2021. ◾ During the quarter, the firm returned $1.70 billion of capital to common shareholders, including $1.00 billion of common share repurchases (2.5 million shares at an average cost of $395.28) and $700 million of common stock dividends.³ ◾ Global core liquid assets³ averaged $356 billion⁴ for the third quarter of 2021, compared with an average of $329 billion for the second quarter of 2021.				Declared Quarterly Dividend Per Common Share
				$2.00

				Common Share Repurchases
				2.5 million shares for $1.00 billion

				Average GCLA
				$356 billion

Goldman Sachs Reports

Third 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.


				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, 2020.

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 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 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, 2020.

Statements regarding the firm’s announced acquisitions of NN Investment Partners and GreenSky, Inc. (“GreenSky”) are forward-looking statements. These statements are subject to the risk that the transactions may not close on the anticipated timeline or at all, including due to a failure to obtain requisite regulatory approval and, in the case of GreenSky, shareholder approval, as well as the risk that the firm may be unable to realize the expected benefits of the acquisitions and the risk that integrating NN Investment Partners and GreenSky into the firm’s business may be more difficult, time-consuming or expensive than expected.


				Conference Call

A conference call to discuss the firm’s financial results, outlook and related matters will be held at 10:30 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 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 1-855-859-2056 (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.

Goldman Sachs Reports

Third Quarter 2021 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions



	THREE MONTHS ENDED						% CHANGE FROM

	SEPTEMBER 30, 2021		JUNE 30, 2021		SEPTEMBER 30, 2020		JUNE 30, 2021		SEPTEMBER 30, 2020
INVESTMENT BANKING
Financial advisory		$ 1,648		$ 1,257		$ 507		31 %		225 %

Equity underwriting		1,174		1,243		856		(6)		37
Debt underwriting		726		950		571		(24)		27
Underwriting		1,900		2,193		1,427		(13)		33

Corporate lending		152		159		35		(4)		334
Net revenues		3,700		3,609		1,969		3		88

GLOBAL MARKETS
FICC intermediation		1,995		1,897		2,170		5		(8)
FICC financing		513		423		332		21		55
FICC		2,508		2,320		2,502		8		–

Equities intermediation		1,920		1,765		1,466		9		31
Equities financing		1,183		815		585		45		102
Equities		3,103		2,580		2,051		20		51
Net revenues		5,611		4,900		4,553		15		23

ASSET MANAGEMENT
Management and other fees		724		727		728		–		(1)
Incentive fees		100		78		28		28		257
Equity investments		935		3,717		1,423		(75)		(34)
Lending and debt investments		520		610		589		(15)		(12)
Net revenues		2,279		5,132		2,768		(56)		(18)

CONSUMER & WEALTH MANAGEMENT
Management and other fees		1,223		1,109		957		10		28
Incentive fees		121		15		7		707		N.M.
Private banking and lending		292		260		201		12		45
Wealth management		1,636		1,384		1,165		18		40

Consumer banking		382		363		326		5		17
Net revenues		2,018		1,747		1,491		16		35

Total net revenues		$ 13,608		$ 15,388		$ 10,781		(12)		26
Geographic Net Revenues (unaudited)³
$ in millions

	THREE MONTHS ENDED

	SEPTEMBER 30, 2021		JUNE 30, 2021		SEPTEMBER 30, 2020
Americas		$ 8,169		$ 9,957		$ 6,873
EMEA		3,394		3,478		2,470
Asia		2,045		1,953		1,438
Total net revenues		$ 13,608		$ 15,388		$ 10,781

Americas		60%		65%		64%
EMEA		25%		22%		23%
Asia		15%		13%		13%
Total		100%		100%		100%

Goldman Sachs Reports

Third Quarter 2021 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions



	NINE MONTHS ENDED				% CHANGE FROM

	SEPTEMBER 30, 2021		SEPTEMBER 30, 2020		SEPTEMBER 30, 2020
INVESTMENT BANKING
Financial advisory		$ 4,022		$ 1,974		104 %

Equity underwriting		3,986		2,291		74
Debt underwriting		2,556		2,144		19
Underwriting		6,542		4,435		48

Corporate lending		516		401		29
Net revenues		11,080		6,810		63

GLOBAL MARKETS
FICC intermediation		7,343		8,493		(14)
FICC financing		1,378		1,213		14
FICC		8,721		9,706		(10)

Equities intermediation		6,271		5,193		21
Equities financing		3,100		1,993		56
Equities		9,371		7,186		30
Net revenues		18,092		16,892		7

ASSET MANAGEMENT
Management and other fees		2,144		2,052		4
Incentive fees		220		216		2
Equity investments		7,772		2,325		234
Lending and debt investments		1,889		180		949
Net revenues		12,025		4,773		152

CONSUMER & WEALTH MANAGEMENT
Management and other fees		3,409		2,854		19
Incentive fees		162		86		88
Private banking and lending		816		538		52
Wealth management		4,387		3,478		26

Consumer banking		1,116		866		29
Net revenues		5,503		4,344		27

Total net revenues		$ 46,700		$ 32,819		42
Geographic Net Revenues (unaudited)³ $ in millions

	NINE MONTHS ENDED

	SEPTEMBER 30, 2021		SEPTEMBER 30, 2020
Americas		$ 28,951		$ 20,333
EMEA		11,585		8,031
Asia		6,164		4,455
Total net revenues		$ 46,700		$ 32,819

Americas		62%		62%
EMEA		25%		24%
Asia		13%		14%
Total		100%		100%

Goldman Sachs Reports

Third 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

	SEPTEMBER 30, 2021		JUNE 30, 2021		SEPTEMBER 30, 2020		JUNE 30, 2021		SEPTEMBER 30, 2020
REVENUES
Investment banking		$ 3,548		$ 3,450		$ 1,934		3 %		83 %
Investment management		2,139		1,905		1,689		12		27
Commissions and fees		860		833		804		3		7
Market making		3,929		3,274		3,327		20		18
Other principal transactions		1,568		4,297		1,943		(64)		(19)
Total non-interest revenues		12,044		13,759		9,697		(12)		24

Interest income		3,117		2,939		2,932		6		6
Interest expense		1,553		1,310		1,848		19		(16)
Net interest income		1,564		1,629		1,084		(4)		44

Total net revenues		13,608		15,388		10,781		(12)		26

Provision for credit losses		175		(92)		278		N.M.		(37)

OPERATING EXPENSES
Compensation and benefits		3,167		5,263		3,117		(40)		2
Transaction based		1,139		1,125		1,011		1		13
Market development		165		115		70		43		136
Communications and technology		397		371		340		7		17
Depreciation and amortization		509		520		468		(2)		9
Occupancy		239		241		235		(1)		2
Professional fees		433		344		298		26		45
Other expenses		542		661		665		(18)		(18)
Total operating expenses		6,591		8,640		6,204		(24)		6

Pre-tax earnings		6,842		6,840		4,299		–		59
Provision for taxes		1,464		1,354		932		8		57
Net earnings		5,378		5,486		3,367		(2)		60

Preferred stock dividends		94		139		134		(32)		(30)
Net earnings applicable to common shareholders		$ 5,284		$ 5,347		$ 3,233		(1)		63

EARNINGS PER COMMON SHARE
Basic³		$ 15.14		$ 15.22		$ 9.07		(1) %		67 %
Diluted		$ 14.93		$ 15.02		$ 8.98		(1)		66

AVERAGE COMMON SHARES
Basic		348.3		350.8		355.9		(1)		(2)
Diluted		353.9		356.0		359.9		(1)		(2)

SELECTED DATA AT PERIOD-END
Common shareholders’ equity		$ 96,344		$ 92,687		$ 81,447		4		18
Basic shares³		347.5		349.9		356.0		(1)		(2)
Book value per common share		$ 277.25		$ 264.90		$ 228.78		5		21

Headcount		43,000		40,800		40,900		5		5

Goldman Sachs Reports

Third Quarter 2021 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, 2021		SEPTEMBER 30, 2020		SEPTEMBER 30, 2020
REVENUES
Investment banking		$ 10,564		$ 6,409		65 %
Investment management		5,840		5,092		15
Commissions and fees		2,766		2,699		2
Market making		13,096		12,796		2
Other principal transactions		9,759		2,482		293
Total non-interest revenues		42,025		29,478		43

Interest income		9,110		10,716		(15)
Interest expense		4,435		7,375		(40)
Net interest income		4,675		3,341		40

Total net revenues		46,700		32,819		42

Provision for credit losses		13		2,805		(100)

OPERATING EXPENSES
Compensation and benefits		14,473		10,830		34
Transaction based		3,520		3,055		15
Market development		360		312		15
Communications and technology		1,143		1,006		14
Depreciation and amortization		1,527		1,404		9
Occupancy		727		706		3
Professional fees		1,137		956		19
Other expenses		1,781		4,807		(63)
Total operating expenses		24,668		23,076		7

Pre-tax earnings		22,019		6,938		217
Provision for taxes		4,319		1,985		118
Net earnings		17,700		4,953		257
Preferred stock dividends		358		400		(11)
Net earnings applicable to common shareholders		$ 17,342		$ 4,553		281

EARNINGS PER COMMON SHARE
Basic³		$ 49.23		$ 12.71		287 %
Diluted		$ 48.59		$ 12.65		284

AVERAGE COMMON SHARES
Basic		351.8		356.5		(1)
Diluted		356.9		360.0		(1)

Goldman Sachs Reports

Third Quarter 2021 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)⁴

$ in billions

AS OF

SEPTEMBER 30,
2021

JUNE 30,
2021

ASSETS

Cash and cash equivalents

$ 212

$ 240

Collateralized agreements

400

350

Customer and other receivables

172

162

Trading assets

393

376

Investments

Loans

143

131

Other assets

Total assets

$ 1,443

$ 1,388

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

$ 333

$ 306

Collateralized financings

229

217

Customer and other payables

252

239

Trading liabilities

204

199

Unsecured short-term borrowings

Unsecured long-term borrowings

243

239

Other liabilities

Total liabilities

1,337

1,286

Shareholders’ equity

106

102

Total liabilities and shareholders’ equity

$ 1,443

$ 1,388

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

$ in billions

AS OF

SEPTEMBER 30,

2021

JUNE 30,

2021

Common equity tier 1 capital

$ 93.3

$ 89.4

STANDARDIZED CAPITAL RULES

Risk-weighted assets⁵

$ 664

$ 621

Common equity tier 1 capital ratio⁵

14.1%

14.4%

ADVANCED CAPITAL RULES

Risk-weighted assets

$ 672

$ 667

Common equity tier 1 capital ratio

13.9%

13.4%

SUPPLEMENTARY LEVERAGE RATIO

Supplementary leverage ratio

5.6%

5.5%

Average Daily VaR (unaudited)^3,4

$ in millions

THREE MONTHS ENDED

SEPTEMBER 30,

2021

JUNE 30,

2021

RISK CATEGORIES

Interest rates

$ 58

$ 64

Equity prices

Currency rates

Commodity prices

Diversification effect

(52)

(57)

Total

$ 80

$ 90

Goldman Sachs Reports

Third Quarter 2021 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Assets Under Supervision (unaudited)^3,4

$ in billions



	AS OF

	SEPTEMBER 30, 2021		JUNE 30, 2021		SEPTEMBER 30, 2020
SEGMENT
Asset Management		$ 1,678		$ 1,633		$ 1,461
Consumer & Wealth Management		694		672		575
Total AUS		$ 2,372		$ 2,305		$ 2,036

ASSET CLASS
Alternative investments		$ 224		$ 211		$ 182
Equity		569		558		421
Fixed income		940		914		856
Total long-term AUS		1,733		1,683		1,459
Liquidity products		639		622		577
Total AUS		$ 2,372		$ 2,305		$ 2,036


	THREE MONTHS ENDED

	SEPTEMBER 30, 2021		JUNE 30, 2021		SEPTEMBER 30, 2020
ASSET MANAGEMENT
Beginning balance		$ 1,633		$ 1,567		$ 1,499
Net inflows / (outflows):
Alternative investments		3		3		(3)
Equity		3		(5)		(5)
Fixed income		27		12		22
Total long-term AUS net inflows / (outflows)		33		10		14
Liquidity products		11		16		(86)
Total AUS net inflows / (outflows)		44		26		(72)
Net market appreciation / (depreciation)		1		40		34
Ending balance		$ 1,678		$ 1,633		$ 1,461

CONSUMER & WEALTH MANAGEMENT
Beginning balance		$ 672		$ 637		$ 558
Net inflows / (outflows):
Alternative investments		6		5		2
Equity		9		8		–
Fixed income		1		(1)		2
Total long-term AUS net inflows / (outflows)		16		12		4
Liquidity products		6		–		(4)
Total AUS net inflows / (outflows)		22		12		–
Net market appreciation / (depreciation)		–		23		17
Ending balance		$ 694		$ 672		$ 575

FIRMWIDE
Beginning balance		$ 2,305		$ 2,204		$ 2,057
Net inflows / (outflows):
Alternative investments		9		8		(1)
Equity		12		3		(5)
Fixed income		28		11		24
Total long-term AUS net inflows / (outflows)		49		22		18
Liquidity products		17		16		(90)
Total AUS net inflows / (outflows)		66		38		(72)
Net market appreciation / (depreciation)		1		63		51
Ending balance		$ 2,372		$ 2,305		$ 2,036

Goldman Sachs Reports

Third Quarter 2021 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, 2021		NINE MONTHS ENDED SEPTEMBER 30, 2021
Total shareholders’ equity		$ 103,599		$ 99,665
Preferred stock		(9,766)		(9,628)
Common shareholders’ equity		93,833		90,037
Goodwill		(4,331)		(4,332)
Identifiable intangible assets		(510)		(558)
Tangible common shareholders’ equity		$ 88,992		$ 85,147

Dealogic – January 1, 2021 through September 30, 2021.

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, 2021: (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 I, Item 1 “Financial Statements (Unaudited)” in the firm’s Quarterly Report on Form 10-Q for the period ended June 30, 2021: (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 2021 and may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended September 30, 2021.

In the third quarter of 2021, based on regulatory feedback, the firm revised certain interpretations of the Capital Rules underlying the calculation of Standardized risk-weighted assets which increased risk-weighted assets by approximately $23 billion and reduced the firm’s Standardized CET1 capital ratio by 0.5 percentage points, Standardized Tier 1 capital ratio by 0.5 percentage points to 15.5%, and Standardized Total capital ratio by 0.7 percentage points to 17.7%, all as of September 30, 2021.

As of June 30, 2021, this change would have increased risk-weighted assets by approximately $23 billion to $644 billion, which would have reduced the firm’s Standardized CET1 capital ratio of 14.4% by 0.5 percentage points, Standardized Tier 1 capital ratio of 15.9% by 0.6 percentage points, and Standardized Total capital ratio of 18.3% by 0.7 percentage points. As of March 31, 2021, this change would have increased risk-weighted assets by approximately $22 billion to $616 billion, which would have reduced the firm’s Standardized CET1 capital ratio of 14.3% by 0.5 percentage points, Standardized Tier 1 capital ratio of 15.9% by 0.6 percentage points, and Standardized Total capital ratio of 18.4% by 0.7 percentage points.

The Goldman Sachs Group, Inc. (GS) 8-KThird Quarter 2021 Earnings Results