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Goldman Sachs reports third quarter earnings per common share of $14.93

PUBLISHED ON 2021-10-15 02:02:00 EST Hemanth

Picture credit: The Economic Time

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.


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 supervision3,4increased $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.


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.

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.

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.


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.

EX-99.1 2 d219346dex991.htm EX-99.1 EX-99.1

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.

1      

 


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

 

         LOGO   LOGO   

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  

 

     
     
     
     
     
     

3      

 


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

 

   
   
   
   
   
   
   
   

4      

 


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

 

5      

 


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.

6      

 


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%

 

 

 

     

 

7


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% 

 

 

 

     

 

8


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             %       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     

 

 

 

 

 

9


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)    

 

 

 

 

 

10


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

    87         91            

 

Loans

    143         131            

 

Other assets

 

    36         38            

 

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

    49         62            

 

Unsecured long-term borrowings

    243         239            

 

Other liabilities

    27         24            

 

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

    40         48            

 

Currency rates

    12         13            

 

Commodity prices

    22         22            

 

Diversification effect

    (52)        (57)           

 

 

Total

 

 

 

 

 

 

$             80  

 

 

 

 

 

 

 

 

 

$               90  

 

 

 

 

       

 

11


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)

 

 

 

     

Equity

   

 

 

 

 

   

 

(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)

   

 

 

 

 

   

 

40 

 

 

 

   

 

34 

 

 

 

     

Ending balance

   

 

$        1,678 

 

 

 

   

 

$        1,633 

 

 

 

   

 

$        1,461 

 

 

 

     
               

 

CONSUMER & WEALTH MANAGEMENT

 

                             

Beginning balance

 

   

 

$           672 

 

 

 

   

 

$            637 

 

 

 

   

 

$            558 

 

 

 

     

Net inflows / (outflows):

 

             

Alternative investments

 

   

 

 

 

 

   

 

 

 

 

   

 

 

 

 

     

Equity

 

   

 

 

 

 

   

 

 

 

 

   

 

– 

 

 

 

     

Fixed income

 

   

 

 

 

 

   

 

(1)

 

 

 

   

 

 

 

 

     

Total long-term AUS net inflows / (outflows)

 

   

 

16 

 

 

 

   

 

12 

 

 

 

   

 

 

 

 

     

Liquidity products

 

   

 

 

 

 

   

 

– 

 

 

 

   

 

(4)

 

 

 

     

Total AUS net inflows / (outflows)

 

   

 

22 

 

 

 

   

 

12 

 

 

 

   

 

– 

 

 

 

     

Net market appreciation / (depreciation)

 

   

 

– 

 

 

 

   

 

23 

 

 

 

   

 

17 

 

 

 

     

Ending balance

 

   

 

$            694 

 

 

 

   

 

$            672 

 

 

 

   

 

$            575