EX-99.1 2 d40648dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

 

Full Year and

 

Fourth Quarter 2020

 

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              

 

   

Full Year and Fourth Quarter 2020 Earnings Results

Goldman Sachs Reports Earnings Per Common Share of $24.74 for 2020

Fourth Quarter Earnings Per Common Share was $12.08

 

 

 

“It was a challenging year on many fronts, and I am deeply proud of how our people helped clients respond to the economic disruption brought on by the pandemic and the extreme market volatility experienced over the past months. Our people responded admirably to a series of professional and personal challenges, while working from home or in offices that were reshaped dramatically. Thanks to their perseverance, we were able to help clients navigate a difficult environment, and, as a result, achieved strong results across the franchise, while advancing our strategic priorities. We hope this year brings much needed stability and a respite from the pandemic, but we remain ready to handle a wide range of outcomes and are poised to meet the needs of our clients.”

 

 

- David M. Solomon, Chairman and Chief Executive Officer    

 

 

 

Financial Summary

 

 

 

     

    

     

  

 

Net Revenues

 

  

 

Net Earnings

 

  

 

EPS

 

 

2020                  $44.56 billion

 

4Q20                $11.74 billion

 

  

 

2020                     $9.46 billion

 

4Q20                    $4.51 billion

 

  

 

2020                            $24.74

 

4Q20                           $12.08

 

       

 

ROE1

 

    

 

ROTE1

 

    

 

Book Value Per Share

 

 

2020                             11.1%

 

4Q20                            21.1%

 

    

 

2020                             11.8%

 

4Q20                             22.5%

 

    

 

2020                       $236.15

 

2020 Growth               8.1%

 

       

NEW YORK, January 19, 2021 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $44.56 billion and net earnings of $9.46 billion for the year ended December 31, 2020. Net revenues were $11.74 billion and net earnings were $4.51 billion for the fourth quarter of 2020.

Diluted earnings per common share (EPS) was $24.74 for the year ended December 31, 2020 compared with $21.03 for the year ended December 31, 2019, and was $12.08 for the fourth quarter of 2020 compared with $4.69 for the fourth quarter of 2019 and $8.98 for the third quarter of 2020.

Return on average common shareholders’ equity (ROE)1 was 11.1% for 2020 and annualized ROE was 21.1% for the fourth quarter of 2020. Return on average tangible common shareholders’ equity (ROTE)1 was 11.8% for 2020 and annualized ROTE was 22.5% for the fourth quarter of 2020.

During 2020, the firm recorded net provisions for litigation and regulatory proceedings of $3.42 billion, which reduced diluted EPS by $9.51 and reduced ROE by 3.9 percentage points.

1      

 

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

 

Annual Highlights

 

 

  ◾  

During the year, the firm navigated an uncertain macroeconomic environment due to the impact of the COVID-19 pandemic, but remained focused on serving clients and executing on strategic priorities, which contributed to net revenues of $44.56 billion, 22% higher than 2019, and the highest annual net revenues in 11 years. In addition, diluted EPS was $24.74, the second highest annual EPS reported by the firm.

 

 

  ◾  

Investment Banking generated record net revenues of $9.42 billion, driven by record Equity underwriting net revenues and the second highest annual net revenues in Debt underwriting. The firm ranked #1 in worldwide announced and completed mergers and acquisitions, worldwide equity and equity-related offerings and common stock offerings for the year2.

 

 

  ◾  

Global Markets generated net revenues of $21.16 billion, 43% higher than 2019, and its highest annual net revenues in ten years, reflecting strong results in both Fixed Income, Currency and Commodities (FICC), which included the third highest annual net revenues in intermediation and record net revenues in financing, and Equities, which included record net revenues in derivatives.

 

 

  ◾  

Asset Management generated net revenues of $7.98 billion, including record Management and other fees.

 

 

  ◾  

Consumer & Wealth Management generated record net revenues of $6.00 billion, including record Wealth management net revenues and significantly higher Consumer banking net revenues.

 

 

  ◾  

Firmwide assets under supervision3,4 increased $286 billion during the year to a record $2.15 trillion.

 

 

  ◾  

The firm continued to scale its digital consumer deposit platforms, as consumer deposits increased by $37 billion during the year to $97 billion4. In addition, the firm formally launched its transaction banking business in the U.S. and increased deposits to $29 billion4.

 

 

  ◾  

The Standardized Common Equity Tier 1 capital ratio3 increased 140 basis points during the year to 14.7%4.

 

 

 

Full Year Net Revenue Mix by Segment

 

   LOGO

2      

 

 

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

 

Net Revenues

 

 

Full Year

    

Net revenues were $44.56 billion for 2020, 22% higher than 2019, reflecting significantly higher net revenues in Global Markets and Investment Banking and higher net revenues in Consumer & Wealth Management, partially offset by lower net revenues in Asset Management.

  

  

  

 

2020 Net Revenues

 

   

 

$44.56 billion

 

 

Fourth Quarter

    

Net revenues were $11.74 billion for the fourth quarter of 2020, 18% higher than the fourth quarter of 2019 and 9% higher than the third quarter of 2020. The increase compared with the fourth quarter of 2019 reflected higher net revenues across all segments, including significant increases in Global Markets and Investment Banking.

    

 

4Q20 Net Revenues

 

   

 

$11.74 billion

 

   

 

 

 

  

 

   Investment Banking  

 

  

 

  

 

Full Year

    

Net revenues in Investment Banking were $9.42 billion for 2020, 24% higher than 2019, reflecting significantly higher net revenues in Underwriting. This increase was partially offset by significantly lower net revenues in Corporate lending and slightly lower net revenues in Financial advisory.

 

The increase in Underwriting net revenues was due to significantly higher net revenues in both Equity and Debt underwriting, reflecting an increase in industry-wide volumes. The decrease in Corporate lending net revenues primarily reflected net mark-downs on corporate loans in 2020 compared to net gains in 2019. The decrease in Financial advisory net revenues reflected a decrease in industry-wide completed mergers and acquisitions transactions, primarily in the middle of the year.

    

 

2020 Investment Banking

 

   

 

$9.42 billion

 

 

  

  

Financial Advisory

  

$3.07 billion  

   

Underwriting

  

$6.08 billion  

   

Corporate Lending

 

  

$282 million  

 

     
     
     

 

The firm’s investment banking transaction backlog3 increased significantly compared with the end of 2019.

      

 

Fourth Quarter

      

Net revenues in Investment Banking were $2.61 billion for the fourth quarter of 2020, 27% higher than the fourth quarter of 2019 and 33% higher than the third quarter of 2020. The increase compared with the fourth quarter of 2019 reflected significantly higher net revenues in Underwriting and Financial advisory, partially offset by a net loss in Corporate lending.

 

The increase in Underwriting net revenues was due to significantly higher net revenues in Equity underwriting, reflecting higher industry-wide activity, partially offset  by  lower net revenues in Debt underwriting, particularly in asset-backed underwriting. The increase in Financial advisory net revenues reflected an increase in completed mergers and acquisitions transactions. The net loss in Corporate lending primarily reflected lower results for relationship lending activities, including the impact of changes in credit spreads on hedges.

 

The firm’s investment banking transaction backlog3 increased significantly compared with the end of the third quarter of 2020.

    

 

4Q20 Investment Banking

 

   

 

$2.61 billion

 

   

Financial Advisory

  

$1.09 billion     

   

Underwriting

  

$1.64 billion     

   

Corporate Lending

 

  

$(119) million  

 

     
     
     
     
     
     
     
     
     

3      

 

 

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

 

      

 

   Global Markets  

 

       

 

Full Year

      

Net revenues in Global Markets were $21.16 billion for 2020, 43% higher than 2019.

 

Net revenues in FICC were $11.58 billion, 57% higher than 2019, primarily due to significantly higher net revenues in FICC intermediation, reflecting significantly higher net revenues across all major businesses. In addition, net revenues in FICC financing were higher, driven by repurchase agreements.

 

Net revenues in Equities were $9.57 billion, 30% higher than 2019, due to significantly higher net revenues in Equities intermediation, reflecting significantly higher net revenues in both derivatives and cash products. Net revenues in Equities financing were lower, primarily reflecting higher net funding costs, including the impact of lower yields on the firm’s global core liquid assets.

    

 

2020 Global Markets

 

   

 

$21.16 billion

 

   

 

FICC Intermediation

  

$  9.99 billion 

   

FICC Financing

  

$  1.59 billion 

   

FICC

  

$11.58 billion 

       
   

Equities Intermediation

  

$6.99 billion 

   

Equities Financing

  

$2.58 billion 

   

Equities

  

$9.57 billion 

 

Fourth Quarter

      

Net revenues in Global Markets were $4.27 billion for the fourth quarter of 2020, 23% higher than the fourth quarter of 2019 and 6% lower than the third quarter of 2020.

 

Net revenues in FICC were $1.88 billion, 6% higher than the fourth quarter of 2019, due to higher net revenues in FICC intermediation, reflecting significantly higher net revenues in credit products and commodities and higher net revenues in currencies, partially offset by significantly lower net revenues in interest rate products and lower net revenues in mortgages. Net revenues in FICC financing were essentially unchanged.

 

Net revenues in Equities were $2.39 billion, 40% higher than the fourth quarter of 2019, due to significantly higher net revenues in Equities intermediation, reflecting significantly higher net revenues in both derivatives and cash products. Net revenues in Equities financing were lower, reflecting higher net funding costs, including the impact of lower yields on the firm’s global core liquid assets.

    

 

4Q20 Global Markets

 

   

 

$4.27 billion

 

   

 

FICC Intermediation

  

$1.50 billion 

   

FICC Financing

  

$380 million 

   

FICC

  

$1.88 billion 

       
   

Equities Intermediation

  

$1.80 billion 

   

Equities Financing

  

$591 million 

   

Equities

  

$2.39 billion 

 

     
     
     
     
      

 

   Asset Management  

 

       

 

Full Year

      

Net revenues in Asset Management were $7.98 billion for 2020, 11% lower than 2019, reflecting significantly lower net revenues in Equity investments and Lending and debt investments. Incentive fees were significantly higher, and Management and other fees (from the firm’s institutional and third-party distribution asset management clients) were higher.

 

The decrease in Equity investments net revenues reflected significantly lower net gains from investments in private equities, partially offset by significantly higher net gains from investments in public equities. The decrease in Lending and debt investments primarily reflected net losses from debt investments in 2020 compared with net gains in 2019. The increase in Incentive fees was primarily driven by performance, and the increase in Management and other fees reflected the impact of higher average assets under supervision, partially offset by a lower average effective management fee due to shifts in the mix of client assets and strategies.

    

 

2020 Asset Management

 

   

 

$7.98 billion

 

   

 

Management and   Other Fees

  

$ 2.79 billion  

   

Incentive Fees

  

$287 million  

   

Equity Investments

  

$4.10 billion  

   

Lending and Debt   Investments

 

  

$817 million  

     
     
     
     
     

4      

 

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

 

      

 

   Asset Management  

 

       

 

Fourth Quarter

  

  

  

Net revenues in Asset Management were $3.21 billion for the fourth quarter of 2020, 7% higher than the fourth quarter of 2019 and 16% higher than the third quarter of 2020. The increase compared with the fourth quarter of 2019 primarily reflected significantly higher net revenues in Lending and debt investments, partially offset by slightly lower net revenues in Equity investments. In addition, Management and other fees (from the firm’s institutional and third-party distribution asset management clients) and Incentive fees were both higher.

 

The increase in Lending and debt investments net revenues was due to significantly higher net gains, reflecting tighter corporate credit spreads during the quarter. The decrease in Equity investments net revenues reflected significantly lower net gains from investments in private equities, partially offset by significantly higher net gains from investments in public equities. The increase in Management and other fees reflected the impact of higher average assets under supervision, partially offset by a lower average effective management fee due to shifts in the mix of client assets and strategies.

    

 

4Q20 Asset Management

 

   

 

$3.21 billion

 

   

Management and

  Other Fees

   $ 733  million  
   

Incentive Fees

   $  71 million  
   

Equity Investments

     $1.77 billion  
   

Lending and Debt

  Investments

 

   $637  million  
     
     
     
     
     
     
     

 

      

 

   Consumer & Wealth Management  

 

       

 

Full Year

  

  

  

Net revenues in Consumer & Wealth Management were $6.00 billion for 2020, 15% higher than 2019.

 

Net revenues in Wealth management were $4.78 billion, 10% higher than 2019, primarily reflecting higher Management and other fees, primarily reflecting the impact of higher average assets under supervision, higher transaction volumes and the impact of the full-year consolidation of GS Personal Financial Management5, partially offset by a lower average effective management fee due to shifts in the mix of client assets and strategies.

 

Net revenues in Consumer banking were $1.21 billion, 40% higher than 2019, reflecting higher credit card loan and deposit balances.

    

 

2020 Consumer &

Wealth Management

 

   

 

$6.00 billion

 

   

 

 

Wealth Management

   $ 4.78  billion  
   

Consumer Banking

 

  

$1.21 billion  

 

     
     
     
     
     

 

Fourth Quarter

      

Net revenues in Consumer & Wealth Management were $1.65 billion for the fourth quarter of 2020, 17% higher than the fourth quarter of 2019 and 11% higher than the third quarter of 2020.

 

Net revenues in Wealth management were $1.31 billion, 11% higher than the fourth quarter of 2019, primarily reflecting higher Management and other fees, primarily reflecting the impact of higher average assets under supervision and higher transaction volumes, partially offset by a lower average effective management fee due to shifts in the mix of client assets and strategies. Net revenues in Private banking and lending were higher, primarily reflecting higher net interest income on mortgages.

 

Net revenues in Consumer banking were $347 million, 52% higher than the fourth quarter of 2019, reflecting higher deposit and credit card loan balances.

    

 

4Q20 Consumer &

Wealth Management

 

   

 

$1.65 billion

 

   

 

Wealth Management

   $ 1.31  billion  
   

Consumer Banking

 

  

$347 million  

 

     
     
     
     
     
     
     

5      

 

 

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

 

Provision for Credit Losses

 

 

Full Year

    

Provision for credit losses was $3.10 billion for 2020, compared with $1.07 billion for 2019.   The  increase  was  primarily  due  to  significantly  higher  provisions  related  to wholesale  loans  as  a  result of individual impairments and ratings downgrades during the  year,  as well as deterioration and uncertainty in the broader economic environment (incorporating the accounting for credit losses under the Current Expected Credit Losses standard6) reflecting the impact of the COVID-19 pandemic. The increase also included higher provisions related to credit card loans, due to growth in the portfolio.

  

 

  

 

2020 Provision for Credit Losses

 

 

 

$3.10 billion

 

 
 
 
 
   

 

 

Fourth Quarter

    

Provision for credit losses was $293 million for the fourth quarter of 2020, 13% lower than the fourth quarter of 2019 and 5% higher than the third quarter of 2020. The fourth quarter of 2020 included reserve reductions on wholesale loans reflecting stabilization in the broader economic environment following the impact of the COVID-19 pandemic earlier in the year, partially offset by higher provisions from growth in credit card loans compared with the fourth quarter of 2019.

    

 

4Q20 Provision for Credit Losses

 

   

 

$293 million

 

   
   
   
   
   

 

Operating Expenses

 

 

Full Year

    

Operating expenses were $28.98 billion for 2020, 16% higher than 2019. The firm’s efficiency ratio3 for 2020 was 65.0%, compared with 68.1% for 2019.

 

The increase in operating expenses compared with 2019 primarily reflected significantly higher net provisions for litigation and regulatory proceedings and higher compensation and benefits expenses (reflecting improved financial performance). In addition, transaction based expenses were higher (reflecting an increase in activity levels), technology expenses were higher and expenses related to consolidated investments, including impairments, were also higher (increase was primarily in depreciation and amortization and occupancy expenses). The increase also reflected higher charitable contributions  (included in other expenses), which included approximately $300 million to Goldman Sachs Gives and approximately $125 million to The Goldman Sachs Foundation during 2020. These increases were partially offset by significantly lower travel and entertainment expenses (included in market development expenses) and lower occupancy-related expenses.

 

Net provisions for litigation and regulatory proceedings for 2020 were $3.42 billion compared with $1.24 billion for 2019.

 

Headcount increased 6% during 2020, reflecting investments in new business initiatives and an increase in technology professionals.

      

 

2020 Operating Expenses

 

   

 

$28.98 billion

 

   
   

 

2020 Efficiency Ratio

 

   

 

65.0%

 

   
   
   
   
     
 
 
 
 
   
   
   

6      

 

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

 

Operating Expenses

 

 

Fourth Quarter

    

Operating expenses were $5.91 billion for the fourth quarter of 2020, 19% lower than the fourth quarter of 2019 and 5% lower than the third quarter of 2020.

 

The decrease in operating expenses compared with the fourth quarter of 2019 was primarily due to significantly lower net provisions for litigation and regulatory proceedings and lower compensation and benefits expenses. In addition, travel and entertainment expenses (included in market development expenses) and occupancy-related expenses were lower. These decreases were partially offset by significantly higher charitable contributions (included in other expenses), significantly higher transaction based expenses (reflecting an increase in activity levels) and higher technology expenses.

 

Net provisions for litigation and regulatory proceedings for the fourth quarter of 2020 were $24 million compared with $1.09 billion for the fourth quarter of 2019.

    

 

4Q20 Operating Expenses

 

 
   

 

$5.91 billion

 

   
   
   
   
   
   
   
   
   
   
   
   

 

 

Provision for Taxes

 

The effective income tax rate for 2020 was 24.2%, down from 28.6% for the first nine months of 2020, primarily due to a decrease in the impact of non-deductible litigation for the full year compared with the first nine months of 2020. The 2020 effective income tax rate increased from 20.0% for 2019, primarily due to an increase in provisions for non-deductible litigation in 2020 compared to 2019.

      

 

2020 Effective Tax Rate

 

   

 

24.2%

 

   
   
   

 

 

Other Matters

 

◾ On January 15, 2021, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $1.25 per common share to be paid on March 30, 2021 to common shareholders of record on March 2, 2021.

 

◾ During the year, the firm returned $3.72 billion of capital to common shareholders, including $1.93 billion of share repurchases (8.2 million shares at an average cost of $236.35), all in the first quarter of 2020, and $1.80 billion of common stock dividends. The fourth quarter of 2020 included $448 million of common stock dividends.3

 

◾ Global core liquid assets3 averaged $283 billion4 for 2020, compared with an average of $234 billion for 2019. Global core liquid assets averaged $298 billion4 for the fourth quarter of 2020, compared with an average of $302 billion for the third quarter of 2020.

      

 

Declared Quarterly

Dividend Per Common Share

 

 

 

$1.25

 

 
 

 

Capital Returned

 

 

 

$3.72 billion in 2020

 

   
   

 

Average GCLA

 

   

 

$283 billion for 2020

 

   

7      

 

 

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

 

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial 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 II, Item 1A of the firm’s Quarterly Report on Form 10-Q for the period ended September 30, 2020 and in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2019.

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 II, Item 1A of the firm’s Quarterly Report on Form 10-Q for the period ended September 30, 2020 and in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2019.

 

          

 

   Conference Call  

 

             

A conference call to discuss the firm’s financial results, outlook and related matters will be held at 9:30 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.

8      

 

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions

 

     
     YEAR ENDED         % CHANGE FROM                                              
     
    

DECEMBER 31,

2020

    

DECEMBER 31,

2019

           

DECEMBER 31,

2019

      

 

INVESTMENT BANKING

 

                            

 

Financial advisory

     $          3,065         $          3,197           (4) %     
               

Equity underwriting

     3,406         1,482           130          

 

Debt underwriting

 

 

    

 

 2,670  

 

  

 

  

 

 

 

 

2,119  

 

 

 

 

      

 

 26      

 

  

 

  

 

Underwriting

     6,076         3,601           69          
               

Corporate lending

    

 

 282  

 

  

 

  

 

 

 

 

801  

 

 

 

 

      

 

 (65)     

 

  

 

  

 

Net revenues

 

    

 

 9,423  

 

  

 

  

 

 

 

 

7,599  

 

 

 

 

      

 

 24      

 

  

 

  
               

 

GLOBAL MARKETS

 

                            

FICC intermediation

     9,991         6,009           66          

FICC financing

    

 

 1,593  

 

  

 

  

 

 

 

 

1,379  

 

 

 

 

      

 

 16      

 

  

 

  

 

FICC

 

     11,584         7,388           57          
               

Equities intermediation

     6,989         4,374           60          

 

Equities financing

 

    

 

 2,584  

 

  

 

  

 

 

 

 

3,017  

 

 

 

 

      

 

 (14)     

 

  

 

  

Equities

     9,573         7,391           30        

 

Net revenues

 

    

 

 21,157  

 

  

 

  

 

 

 

 

14,779  

 

 

 

 

      

 

 43      

 

  

 

  
               

 

ASSET MANAGEMENT

 

                            

 

Management and other fees

     2,785         2,600           7          

 

Incentive fees

     287         130           121          

 

Equity investments

     4,095         4,765           (14)         

 

Lending and debt investments

 

    

 

 817  

 

  

 

  

 

 

 

 

1,470  

 

 

 

 

      

 

 (44)     

 

  

 

  

 

Net revenues

 

    

 

 7,984  

 

  

 

  

 

 

 

 

8,965  

 

 

 

 

      

 

 (11)     

 

  

 

  
               

 

CONSUMER & WEALTH MANAGEMENT

 

                            

 

Management and other fees

     3,889         3,475           12          

 

Incentive fees

     114         81           41          

 

Private banking and lending

 

    

 

 780  

 

  

 

  

 

 

 

 

783  

 

 

 

 

      

 

 –      

 

  

 

  

 

Wealth management

     4,783         4,339           10          
               

Consumer banking

    

 

 1,213  

 

  

 

  

 

 

 

 

864  

 

 

 

 

      

 

 40      

 

  

 

  

 

Net revenues

 

    

 

 5,996  

 

  

 

  

 

 

 

 

5,203  

 

 

 

 

      

 

 15      

 

  

 

  
               

 

Total net revenues

 

    

 

 $        44,560  

 

  

 

    

 

 $       36,546  

 

  

 

      

 

 22      

 

  

 

  

 

Geographic Net Revenues (unaudited)3

$ in millions

 

 

 

        
   
     YEAR ENDED                
   
    

DECEMBER 31,

2020

    

DECEMBER 31,

2019

                

Americas

     $        27,508         $        22,148          

 

EMEA

     10,868         9,745          

 

Asia

 

    

 

 6,184  

 

  

 

  

 

 

 

 

4,653  

 

 

 

 

      

 

Total net revenues

 

    

 

 $        44,560  

 

  

 

  

 

 

 

 

$        36,546  

 

 

 

 

      
             

Americas

     62%       60%        

 

EMEA

     24%       27%        

 

Asia

 

    

 

 14%

 

  

 

  

 

 

 

 

13%

 

 

 

 

      

 

Total

 

    

 

 100%

 

  

 

  

 

 

 

 

100%

 

 

 

 

      

 

9

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions

 

     
     THREE MONTHS ENDED            % CHANGE FROM  
       
     DECEMBER 31,
2020		     SEPTEMBER 30,
2020		     DECEMBER 31,
2019		             

SEPTEMBER 30,

2020

     DECEMBER 31,
2019		  

 

INVESTMENT BANKING

 

                                          

 

Financial advisory

     $              1,091          $               507         $               855           115  %        28  %   
                 

Equity underwriting

     1,115          856         378           30             195        

 

Debt underwriting

 

    

 

 526   

 

  

 

    

 

 571  

 

  

 

    

 

 599  

 

  

 

      

 

 (8)     

 

  

 

    

 

 (12)     

 

  

 

 

Underwriting

     1,641          1,427         977           15             68        
                 

Corporate lending

 

    

 

 (119)  

 

  

 

    

 

 35  

 

  

 

    

 

 232  

 

  

 

      

 

 N.M.     

 

  

 

    

 

 N.M.     

 

  

 

 

Net revenues

 

    

 

 2,613   

 

  

 

    

 

 1,969  

 

  

 

    

 

 2,064  

 

  

 

      

 

 33      

 

  

 

    

 

 27      

 

  

 

                 

 

GLOBAL MARKETS

 

                                          

 

FICC intermediation

     1,498          2,170         1,382           (31)            8        

FICC financing

 

    

 

 380   

 

  

 

    

 

 332  

 

  

 

    

 

 387  

 

  

 

      

 

 14      

 

  

 

    

 

 (2)     

 

  

 

 

FICC

     1,878          2,502         1,769           (25)            6        
                 

Equities intermediation

     1,796          1,466         979           23             83        

 

Equities financing

 

    

 

 591   

 

  

 

    

 

 585  

 

  

 

    

 

 732  

 

  

 

      

 

 1      

 

  

 

    

 

 (19)     

 

  

 

 

Equities

 

    

 

 2,387   

 

  

 

    

 

 2,051  

 

  

 

    

 

 1,711  

 

  

 

      

 

 16      

 

  

 

    

 

 40      

 

  

 

 

Net revenues

 

    

 

 4,265   

 

  

 

    

 

 4,553  

 

  

 

    

 

 3,480  

 

  

 

      

 

 (6)     

 

  

 

    

 

 23      

 

  

 

                 

 

ASSET MANAGEMENT

 

                                          

 

Management and other fees

     733          728         666           1             10        

 

Incentive fees

     71          28         45           154             58        

 

Equity investments

     1,770          1,423         1,865           24             (5)       

 

Lending and debt investments

 

    

 

 637   

 

  

 

    

 

 589  

 

  

 

    

 

 427  

 

  

 

      

 

 8      

 

  

 

    

 

 49      

 

  

 

 

Net revenues

 

    

 

 3,211   

 

  

 

    

 

 2,768  

 

  

 

    

 

 3,003  

 

  

 

      

 

 16      

 

  

 

    

 

 7      

 

  

 

                 

 

CONSUMER & WEALTH MANAGEMENT

 

                                          

 

Management and other fees

     1,035          957         967           8             7        

 

Incentive fees

     28          7         19           N.M.            47        

 

Private banking and lending

 

    

 

 242   

 

  

 

    

 

 201  

 

  

 

    

 

 194  

 

  

 

      

 

 20      

 

  

 

    

 

 25      

 

  

 

 

Wealth management

     1,305          1,165         1,180           12             11        
                 

Consumer banking

 

    

 

 347   

 

  

 

    

 

 326  

 

  

 

    

 

 228  

 

  

 

      

 

 6      

 

  

 

    

 

 52      

 

  

 

 

Net revenues

 

    

 

 1,652   

 

  

 

    

 

 1,491  

 

  

 

    

 

 1,408  

 

  

 

      

 

 11      

 

  

 

    

 

 17      

 

  

 

                 

 

Total net revenues

 

    

 

 $          11,741   

 

  

 

    

 

 $          10,781  

 

  

 

    

 

 $            9,955  

 

  

 

      

 

 9      

 

  

 

    

 

 18      

 

  

 

 

Geographic Net Revenues (unaudited) 3

 

          

$ in millions

 

            
   
     THREE MONTHS ENDED                       
   
     DECEMBER 31,
2020		    

SEPTEMBER 30,

2020

     DECEMBER 31,
2019		                    

 

Americas

     $              7,175          $            6,873         $            6,310          

 

EMEA

     2,837          2,470         2,268          

 

Asia

 

    

 

 1,729   

 

  

 

    

 

 1,438  

 

  

 

    

 

 1,377  

 

  

 

      

 

Total net revenues

 

    

 

 $          11,741   

 

  

 

    

 

 $          10,781  

 

  

 

    

 

 $            9,955  

 

  

 

      
               

Americas

     61%       64%       63%        

 

EMEA

     24%       23%       23%        

 

Asia

 

    

 

 15%

 

  

 

    

 

 13%

 

  

 

    

 

 14%

 

  

 

      

 

Total

 

    

 

 100%

 

  

 

    

 

 100%

 

  

 

    

 

 100%

 

  

 

      

 

10

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

The Goldman Sachs Group, Inc. and Subsidiaries

Consolidated Statements of Earnings (unaudited)

In millions, except per share amounts

 

     
     YEAR ENDED          % CHANGE FROM            
     
     DECEMBER 31,
2020		       DECEMBER 31,  
2019		            DECEMBER 31,
2019		                                                        

 

REVENUES

 

                              

 

Investment banking

     $           9,141       $              6,798         34 %      

 

Investment management

     6,923       6,189         12           

 

Commissions and fees

     3,548       2,988         19           

 

Market making

     15,546       10,157         53           

 

Other principal transactions

 

    

 

 4,651

 

  

 

  

 

 

 

 

6,052

 

 

 

 

      

 

 (23)    

 

  

 

    

 

Total non-interest revenues

 

    

 

 39,809

 

  

 

  

 

 

 

 

32,184

 

 

 

 

      

 

 24     

 

  

 

    
                 

Interest income

     13,689       21,738         (37)          

 

Interest expense

 

    

 

 8,938

 

  

 

  

 

 

 

 

17,376

 

 

 

 

      

 

 (49)    

 

  

 

    

 

Net interest income

 

    

 

 4,751

 

  

 

  

 

 

 

 

4,362

 

 

 

 

      

 

 9     

 

  

 

    
                 

 

Total net revenues

 

    

 

 44,560

 

  

 

  

 

 

 

 

36,546

 

 

 

 

      

 

 22     

 

  

 

    
                 

 

Provision for credit losses

 

    

 

 3,098

 

  

 

  

 

 

 

 

1,065

 

 

 

 

      

 

 191     

 

  

 

    
                 

 

OPERATING EXPENSES

 

                              

 

Compensation and benefits

     13,309       12,353         8           

 

Transaction based7

     4,141       3,513         18           

 

Market development

     401       739         (46)          

 

Communications and technology

     1,347       1,167         15           

 

Depreciation and amortization

     1,902       1,704         12           

 

Occupancy

     960       1,029         (7)          

 

Professional fees

     1,306       1,316         (1)          

 

Other expenses7

 

    

 

 5,617

 

  

 

  

 

 

 

 

3,077

 

 

 

 

      

 

 83     

 

  

 

    

 

Total operating expenses

 

    

 

 28,983

 

  

 

  

 

 

 

 

24,898

 

 

 

 

      

 

 16     

 

  

 

    
                 

Pre-tax earnings

     12,479       10,583         18           

 

Provision for taxes

 

    

 

 3,020

 

  

 

  

 

 

 

 

2,117

 

 

 

 

      

 

 43     

 

  

 

    

 

Net earnings

 

    

 

 9,459

 

  

 

  

 

 

 

 

8,466

 

 

 

 

      

 

 12     

 

  

 

    

 

Preferred stock dividends

 

    

 

 544

 

  

 

  

 

 

 

 

569

 

 

 

 

      

 

 (4)    

 

  

 

    

 

Net earnings applicable to common shareholders

 

    

 

 $          8,915

 

  

 

  

 

 

 

 

$          7,897

 

 

 

 

      

 

 13     

 

  

 

    
                 

 

EARNINGS PER COMMON SHARE

 

                              

 

Basic3

     $          24.94       $          21.18         18  %      

 

Diluted

     $          24.74       $          21.03         18           
                 

 

AVERAGE COMMON SHARES

 

                              

 

Basic

     356.4       371.6         (4)          

 

Diluted

 

    

 

 360.3

 

  

 

  

 

 

 

 

375.5

 

 

 

 

      

 

 (4)    

 

  

 

    

 

11

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 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  
       
    

 DECEMBER 31, 

2020

      SEPTEMBER 30, 
2020		      DECEMBER 31, 
2019		             SEPTEMBER 30, 
2020		      DECEMBER 31, 
2019		  

 

REVENUES

 

                                          

 

Investment banking

     $            2,732         $              1,934         $              1,832           41  %        49  %   

 

Investment management

     1,831         1,689         1,671           8             10        

 

Commissions and fees

     849         804         687           6             24        

 

Market making

     2,750         3,327         2,479           (17)            11        

 

Other principal transactions

 

    

 

 2,169  

 

  

 

    

 

 1,943  

 

  

 

    

 

 2,221  

 

  

 

      

 

 12      

 

  

 

    

 

 (2)     

 

  

 

 

Total non-interest revenues

 

    

 

 10,331  

 

  

 

    

 

 9,697  

 

  

 

    

 

 8,890  

 

  

 

      

 

 7      

 

  

 

    

 

 16      

 

  

 

                 

Interest income

     2,973         2,932         4,922           1             (40)       

 

Interest expense

 

    

 

 1,563  

 

  

 

    

 

 1,848  

 

  

 

    

 

 3,857  

 

  

 

      

 

 (15)     

 

  

 

     (59)       

 

Net interest income

 

    

 

 1,410  

 

  

 

    

 

 1,084  

 

  

 

    

 

 1,065  

 

  

 

      

 

 30      

 

  

 

  

 

 

 

 

32      

 

 

 

 

                 

 

Total net revenues

 

    

 

 11,741  

 

  

 

    

 

 10,781  

 

  

 

    

 

 9,955  

 

  

 

      

 

 9      

 

  

 

    

 

 18      

 

  

 

                 

 

Provision for credit losses

 

    

 

 293  

 

  

 

    

 

 278  

 

  

 

    

 

 336  

 

  

 

      

 

 5      

 

  

 

    

 

 (13)     

 

  

 

                 

 

OPERATING EXPENSES

 

                                          

 

Compensation and benefits

     2,479         3,117         3,046           (20)            (19)       

 

Transaction based7

     1,086         1,011         899           7             21        

 

Market development

     89         70         200           27             (56)       

 

Communications and technology

     341         340         308           –             11        

 

Depreciation and amortization

     498         468         464           6             7        

 

Occupancy

     254         235         318           8             (20)       

 

Professional fees

     350         298         366           17             (4)       

 

Other expenses7

 

    

 

 810  

 

  

 

    

 

 665  

 

  

 

    

 

 1,697  

 

  

 

      

 

 22      

 

  

 

    

 

 (52)     

 

  

 

 

Total operating expenses

 

    

 

 5,907  

 

  

 

    

 

 6,204  

 

  

 

    

 

 7,298  

 

  

 

      

 

 (5)     

 

  

 

    

 

 (19)     

 

  

 

                 

Pre-tax earnings

     5,541         4,299         2,321           29             139        

 

Provision for taxes

 

    

 

 1,035  

 

  

 

    

 

 932  

 

  

 

    

 

 404  

 

  

 

      

 

 11      

 

  

 

    

 

 156      

 

  

 

 

Net earnings

 

    

 

 4,506  

 

  

 

    

 

 3,367  

 

  

 

    

 

 1,917  

 

  

 

      

 

 34      

 

  

 

    

 

 135      

 

  

 

 

Preferred stock dividends

 

    

 

 144  

 

  

 

    

 

 134  

 

  

 

    

 

 193  

 

  

 

      

 

 7      

 

  

 

    

 

 (25)     

 

  

 

 

Net earnings applicable to common shareholders

 

    

 

 $            4,362  

 

  

 

    

 

 $              3,233  

 

  

 

    

 

 $              1,724  

 

  

 

      

 

 35      

 

  

 

    

 

 153      

 

  

 

                 

 

EARNINGS PER COMMON SHARE

 

                                          

 

Basic3

     $            12.23         $                9.07         $                4.74           35  %        158  %   

 

Diluted

     $            12.08         $                8.98         $                4.69           35             158        
                 

 

AVERAGE COMMON SHARES

 

                                          

 

Basic

     356.0         355.9         362.4           –             (2)       

 

Diluted

     361.0         359.9         367.3           –             (2)       
                 

 

SELECTED DATA AT PERIOD-END

 

                                          

 

Common shareholders’ equity

     $          84,729         $            81,447         $            79,062           4             7        

 

Basic shares3

     358.8         356.0         361.8           1             (1)       

 

Book value per common share

     $          236.15         $            228.78         $            218.52           3             8        
                 

Headcount

 

    

 

 40,500  

 

  

 

    

 

 40,900  

 

  

 

    

 

 38,300  

 

  

 

      

 

 (1)     

 

  

 

    

 

 6      

 

  

 

 

12

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

The Goldman Sachs Group, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)4

$ in billions

 

   
     AS OF                   
   
     DECEMBER 31,
2020		    

SEPTEMBER 30,

2020

     DECEMBER 31,
2019		                     

 

ASSETS

 

                              

 

Cash and cash equivalents

 

     $              156         $           153         $             133          

Collateralized agreements

 

     250         229         222          

Customer and other receivables

 

     121         111         75          

Trading assets

 

     394         408         355          

Investments

 

     89         81         64          

Loans

 

     116         112         109          

Other assets

    

 

 37  

 

  

 

    

 

 38  

 

  

 

    

 

 35  

 

  

 

      

 

Total assets

 

    

 

 $           1,163  

 

  

 

    

 

 $         1,132  

 

  

 

    

 

 $             993  

 

  

 

      
               

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

                              

 

Deposits

 

     $              260         $           261         $             190          

Collateralized financings

 

     174         144         152          

Customer and other payables

 

     191         187         175          

Trading liabilities

 

     154         162         109          

Unsecured short-term borrowings

 

     53         48         48          

Unsecured long-term borrowings

 

     213         214         207          

Other liabilities

    

 

 22  

 

  

 

    

 

 23  

 

  

 

    

 

 22  

 

  

 

      

 

Total liabilities

 

    

 

 1,067  

 

  

 

    

 

 1,039  

 

  

 

    

 

 903  

 

  

 

      

 

Shareholders’ equity

    

 

 96  

 

  

 

    

 

 93  

 

  

 

    

 

 90  

 

  

 

      

 

Total liabilities and shareholders’ equity

 

    

 

 $           1,163  

 

  

 

    

 

 $         1,132  

 

  

 

    

 

 $             993  

 

  

 

      

 

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

$ in billions

 

 

 

      
   
     AS OF                   
   
     DECEMBER 31,
2020		    

SEPTEMBER 30,

2020

     DECEMBER 31,
2019		                     

Common equity tier 1 capital

     $             81.6         $          77.5         $             74.9          
               

STANDARDIZED CAPITAL RULES

                              

Risk-weighted assets

 

    

 

 $              554  

 

  

 

    

 

 $           535  

 

  

 

    

 

 $             564  

 

  

 

      

Common equity tier 1 capital ratio

    

 

 14.7%

 

  

 

    

 

 14.5%

 

  

 

    

 

 13.3%

 

  

 

      
               

ADVANCED CAPITAL RULES

                              

Risk-weighted assets

 

    

 

 $              610  

 

  

 

    

 

 $           600  

 

  

 

    

 

 $             545  

 

  

 

      

Common equity tier 1 capital ratio

    

 

 13.4%

 

  

 

    

 

 12.9%

 

  

 

    

 

 13.7%

 

  

 

      
               

SUPPLEMENTARY LEVERAGE RATIO

                              

 

 

Supplementary leverage ratio

 

    

 

 7.0%

 

  

 

    

 

 6.8%

 

  

 

    

 

 6.2%

 

  

 

      

 

Average Daily VaR (unaudited)3,4

 

          

$ in millions

 

            
     
     THREE MONTHS ENDED          YEAR ENDED  
       
     DECEMBER 31,
2020		    

SEPTEMBER 30,

2020

     DECEMBER 31,
2019		        

DECEMBER 31,

2020

     DECEMBER 31,
2019		  

 

RISK CATEGORIES

 

                                          

Interest rates

     $                57         $             72         $               49           $                  71         $                  46    

 

Equity prices

 

     50         55         24           55         27    

Currency rates

     14         22         11           23         11    

 

Commodity prices

     20         26         12           20         12    

 

Diversification effect

    

 

 (57) 

 

  

 

    

 

 (84) 

 

  

 

    

 

 (38) 

 

  

 

      

 

 (75) 

 

  

 

    

 

 (40) 

 

  

 

 

Total

 

    

 

 $                84  

 

  

 

    

 

 $             91  

 

  

 

  

 

 

 

 

$               58  

 

 

 

 

    

 

 

 

 

$                  94  

 

 

 

 

     $                  56    

 

13

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

The Goldman Sachs Group, Inc. and Subsidiaries

Assets Under Supervision (unaudited)3,4

$ in billions

 

   
     AS OF                     
   
     DECEMBER 31,
2020		    

SEPTEMBER 30,

2020

     DECEMBER 31,
2019		                  

 

SEGMENT

 

                              

 

Asset Management

     $           1,530        $           1,461        $          1,298         

 

Consumer & Wealth Management

 

    

 

 615 

 

  

 

    

 

 575 

 

  

 

    

 

 561 

 

  

 

      

 

Total AUS

 

    

 

 $           2,145 

 

  

 

    

 

 $           2,036 

 

  

 

    

 

 $          1,859 

 

  

 

      
               

 

ASSET CLASS

 

                              

Alternative investments

     $              191        $              182        $             185         

 

Equity

     475        421        423         

 

Fixed income

 

    

 

 896 

 

  

 

    

 

 856 

 

  

 

    

 

 789 

 

  

 

      

 

Total long-term AUS

 

    

 

 1,562 

 

  

 

    

 

 1,459 

 

  

 

    

 

 1,397 

 

  

 

      

 

Liquidity products

 

    

 

 583 

 

  

 

    

 

 577 

 

  

 

    

 

 462 

 

  

 

      

 

Total AUS

 

    

 

 $           2,145 

 

  

 

    

 

 $           2,036 

 

  

 

    

 

 $          1,859 

 

  

 

      
           
     
     THREE MONTHS ENDED          YEAR ENDED  
       
     DECEMBER 31,
2020		    

SEPTEMBER 30,

2020

     DECEMBER 31,
2019		           

DECEMBER 31,

2020

     DECEMBER 31,
2019		  

 

 

ASSET MANAGEMENT

                                          

 

Beginning balance

     $           1,461        $           1,499        $          1,232          $          1,298        $          1,087   

 

Net inflows / (outflows):

                

 

Alternative investments

     2        (3)       (1)         (4)       2   

 

Equity

     (12)       (5)       1          (12)       34   

 

Fixed income

    

 

 20 

 

  

 

    

 

 22 

 

  

 

    

 

 (4)

 

  

 

      

 

 55 

 

  

 

    

 

 35 

 

  

 

 

 

Total long-term AUS net inflows / (outflows)

    

 

 10 

 

  

 

    

 

 14 

 

  

 

    

 

 (4)

 

  

 

      

 

 39 

 

  

 

    

 

 71 

 

  

 

 

Liquidity products

 

    

 

 6 

 

  

 

    

 

 (86)

 

  

 

    

 

 50 

 

  

 

      

 

 107 

 

  

 

    

 

 52 

 

  

 

 

Total AUS net inflows / (outflows)

 

    

 

 16 

 

  

 

    

 

 (72)

 

  

 

    

 

 46 

 

  

 

      

 

 146 

 

  

 

    

 

 123 

 

 5  

 

 

Net market appreciation / (depreciation)

    

 

 53 

 

  

 

    

 

 34 

 

  

 

    

 

 20 

 

  

 

      

 

 86 

 

  

 

    

 

 88 

 

  

 

 

 

Ending balance

 

    

 

 $           1,530 

 

  

 

    

 

 $           1,461 

 

  

 

    

 

 $          1,298 

 

  

 

      

 

 $          1,530 

 

  

 

    

 

 $          1,298 

 

  

 

                 

 

 

CONSUMER & WEALTH MANAGEMENT

                                          

 

Beginning balance

     $              575        $              558        $             530          $             561        $             455   

 

Net inflows / (outflows):

                

 

Alternative investments

     1        2        2          3        9   

 

Equity

     8        –        –          8        11   

 

Fixed income

    

 

 (2)

 

  

 

    

 

 2 

 

  

 

    

 

 4 

 

  

 

      

 

 (8)

 

  

 

    

 

 17 

 

  

 

 

 

Total long-term AUS net inflows / (outflows)

 

    

 

 7 

 

  

 

    

 

 4 

 

  

 

    

 

 6 

 

  

 

      

 

 3 

 

  

 

    

 

 37 

 

  

 

 

Liquidity products

    

 

 – 

 

  

 

    

 

 (4)

 

  

 

    

 

 8 

 

  

 

      

 

 14 

 

  

 

    

 

 13 

 

  

 

 

 

Total AUS net inflows / (outflows)

 

    

 

 7 

 

  

 

    

 

 –

 

   

 

    

 

 14 

 

  

 

      

 

 17 

 

  

 

    

 

 50 

 

 5  

 

 

Net market appreciation / (depreciation)

    

 

 33 

 

  

 

    

 

 17 

 

  

 

    

 

 17 

 

  

 

      

 

 37 

 

  

 

    

 

 56 

 

  

 

 

 

Ending balance

 

    

 

 $               615 

 

  

 

    

 

 $               575 

 

  

 

    

 

 $              561 

 

  

 

      

 

 $              615 

 

  

 

    

 

 $              561 

 

  

 

                 

 

 

FIRMWIDE

                                          

 

Beginning balance

     $           2,036        $           2,057        $          1,762          $          1,859        $          1,542   

 

Net inflows / (outflows):

                

 

Alternative investments

     3        (1)       1          (1)       11   

 

Equity

     (4)       (5)       1          (4)       45   

 

Fixed income

    

 

 18 

 

  

 

    

 

 24 

 

  

 

    

 

 – 

 

  

 

      

 

 47 

 

  

 

    

 

 52 

 

  

 

 

 

Total long-term AUS net inflows / (outflows)

 

    

 

 17 

 

  

 

    

 

 18 

 

  

 

    

 

 2 

 

  

 

      

 

 42 

 

  

 

    

 

 108 

 

  

 

 

Liquidity products

    

 

 6 

 

  

 

    

 

 (90)

 

  

 

    

 

 58 

 

  

 

      

 

 121 

 

  

 

    

 

 65 

 

  

 

 

 

Total AUS net inflows / (outflows)

 

    

 

 23 

 

  

 

    

 

 (72)

 

  

 

    

 

 60 

 

  

 

      

 

 163 

 

  

 

    

 

 173 

 

 5  

 

 

Net market appreciation / (depreciation)

 

    

 

 86 

 

  

 

    

 

 51 

 

  

 

    

 

 37 

 

  

 

      

 

 123 

 

  

 

    

 

 144 

 

  

 

 

Ending balance

 

    

 

 $           2,145 

 

  

 

    

 

 $           2,036 

 

  

 

    

 

 $          1,859 

 

  

 

      

 

 $          2,145 

 

  

 

    

 

 $          1,859 

 

  

 

 

14

Goldman Sachs Reports

Full Year and Fourth Quarter 2020 Earnings Results

 

 

Footnotes

    

 

  1.

ROE is calculated by dividing net earnings (or annualized net earnings for annualized ROE) applicable to common shareholders by average monthly common shareholders’ equity. ROTE is calculated by dividing net earnings (or annualized net earnings for annualized ROTE) 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 

DECEMBER 31, 2020

     YEAR  ENDED
 DECEMBER 31, 2020 		         

 

Total shareholders’ equity

 

    

 

 $                    93,835 

 

  

 

    

 

 $                91,779 

 

  

 

  

Preferred stock

 

    

 

 (11,203)

 

  

 

    

 

 (11,203)

 

  

 

  

 

Common shareholders’ equity

 

    

 

 82,632 

 

  

 

    

 

 80,576 

 

  

 

  

 

Goodwill

Identifiable intangible assets

 

    

 

 (4,332)

(626)

 

  

 

 

    

 

 (4,238)

(617)

 

  

 

 

  

 

Tangible common shareholders’ equity

 

    

 

 $                     77,674 

 

  

 

    

 

 $                 75,721 

 

  

 

  

 

  2.

Dealogic – January 1, 2020 through December 31, 2020.

 

 

  3.

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 September 30, 2020: (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 September 30, 2020: (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.”

 

  4.

Represents a preliminary estimate for the fourth quarter of 2020 and may be revised in the firm’s Annual Report on Form 10-K for the year ended December 31, 2020.

 

 

  5.

Net inflows in assets under supervision for 2019 included $71 billion of total inflows (substantially all in equity and fixed income assets) in connection with the acquisitions of both Standard & Poor’s Investment Advisory Services (SPIAS) and GS Personal Financial Management in the third quarter of 2019 ($58 billion), and Rocaton Investment Advisors (Rocaton) in the second quarter of 2019 ($13 billion). SPIAS and Rocaton were included in the Asset Management segment and GS Personal Financial Management was included in the Consumer & Wealth Management segment.

 

 

  6.

In the first quarter of 2020, the firm adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments.” For further information about ASU No. 2016-13, see Note 3 “Significant Accounting Policies” in Part I, Item 1 “Financial Statements (Unaudited)” in the firm’s Quarterly Report on Form 10-Q for the period ended September 30, 2020.

 

 

  7.

Brokerage, clearing, exchange and distribution fees has been renamed transaction based expenses and additionally includes expenses resulting from completed transactions, which are directly related to client revenues. Such expenses were previously reported in other expenses. Previously reported amounts have been conformed to the current presentation.

 

15