Exhibit 99.1
Second Quarter 2022
Earnings Results
Media Relations: Andrea Williams 212-902-5400 Investor Relations: Carey Halio 212-902-0300
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The Goldman Sachs Group, Inc. 200 West Street | New York, NY 10282
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Second Quarter 2022 Earnings Results
Goldman Sachs Reports Second Quarter Earnings Per Common Share of $7.73 and Increases the Quarterly Dividend to $2.50 Per Common Share in the Third Quarter
“We delivered solid results in the second quarter as clients turned to us for our expertise and execution in these challenging markets. Despite increased volatility and uncertainty, I remain confident in our ability to navigate the environment, dynamically manage our resources and drive long-term, accretive returns for shareholders.” |
- David Solomon, Chairman and Chief Executive Officer
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Financial Summary
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Net Revenues
|
Net Earnings
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EPS
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2Q22 $11.86 billion
2Q22 YTD $24.80 billion
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2Q22 $2.93 billion
2Q22 YTD $6.87 billion
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2Q22 $7.73
2Q22 YTD $18.47
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Annualized ROE1
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Annualized ROTE1
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Book Value Per Share
| ||||||
2Q22 10.6%
2Q22 YTD 12.8%
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2Q22 11.4%
2Q22 YTD 13.6%
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2Q22 $301.88
YTD Growth 6.2%
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NEW YORK, July 18, 2022 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $11.86 billion and net earnings of $2.93 billion for the second quarter ended June 30, 2022. Net revenues were $24.80 billion and net earnings were $6.87 billion for the first half of 2022.
Diluted earnings per common share (EPS) was $7.73 for the second quarter of 2022 compared with $15.02 for the second quarter of 2021 and $10.76 for the first quarter of 2022, and was $18.47 for the first half of 2022 compared with $33.64 for the first half of 2021.
Annualized return on average common shareholders’ equity (ROE)1 was 10.6% for the second quarter of 2022 and 12.8% for the first half of 2022. Annualized return on average tangible common shareholders’ equity (ROTE)1 was 11.4% for the second quarter of 2022 and 13.6% for the first half of 2022.
1
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
Highlights
◾ | During the quarter, the firm continued to support clients amid an evolving macroeconomic environment and generated solid quarterly net revenues of $11.86 billion, net earnings of $2.93 billion and diluted EPS of $7.73. |
◾ | Investment Banking generated quarterly net revenues of $2.14 billion, including strong net revenues in Financial advisory. The firm ranked #1 in worldwide announced and completed mergers and acquisitions and in worldwide equity and equity-related offerings and common stock offerings for the year-to-date.2 |
◾ | Global Markets generated quarterly net revenues of $6.47 billion, reflecting strong performances in both Fixed Income, Currency and Commodities (FICC) and Equities, particularly in financing. |
◾ | Consumer & Wealth Management generated record quarterly net revenues of $2.18 billion, 25% higher than the second quarter of 2021. |
◾ | Firmwide assets under supervision3,4 increased $101 billion during the quarter, including inflows of $305 billion from the acquisition of NN Investment Partners (NNIP)5, to a record $2.50 trillion. Firmwide Management and other fees were a record $2.23 billion for the second quarter of 2022, 22% higher than the second quarter of 2021. |
◾ | Book value per common share increased by 2.9% during the quarter and 6.2% during the first half of 2022 to $301.88. |
◾ | On July 14, 2022, the Board of Directors of The Goldman Sachs Group, Inc. approved a 25% increase in the quarterly dividend to $2.50 per common share beginning in the third quarter of 2022. |
Quarterly Net Revenue Mix by Segment
2
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
Net Revenues
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Net revenues were $11.86 billion for the second quarter of 2022, 23% lower than a strong second quarter of 2021 and 8% lower than the first quarter of 2022. The decrease compared with the second quarter of 2021 reflected significantly lower net revenues in Asset Management and Investment Banking, partially offset by significantly higher net revenues in Global Markets and Consumer & Wealth Management. |
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Net Revenues
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$11.86 billion
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| Investment Banking |
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Net revenues in Investment Banking were $2.14 billion for the second quarter of 2022, 41% lower than a strong second quarter of 2021 and 11% lower than the first quarter of 2022. The decrease compared with the second quarter of 2021 primarily reflected significantly lower net revenues in Underwriting.
The decrease in Underwriting was due to significantly lower net revenues in both Equity and Debt underwriting, reflecting a significant decline in industry-wide volumes. Net revenues in Financial advisory were slightly lower, reflecting a decrease in industry-wide completed mergers and acquisitions transactions. Corporate lending net revenues were significantly higher, primarily due to net gains from hedges related to relationship lending activities and higher net revenues from transaction banking, partially offset by net mark-downs on acquisition financing activities.
The firm’s backlog3 decreased compared with the end of the first quarter of 2022. |
Investment Banking
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$2.14 billion
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| Financial advisory | $1.20 billion | ||||
Underwriting | $588 million | |||||
Corporate lending
| $352 million
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| Global Markets |
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Net revenues in Global Markets were $6.47 billion for the second quarter of 2022, 32% higher than the second quarter of 2021 and 18% lower than the first quarter of 2022.
Net revenues in FICC were $3.61 billion, 55% higher than the second quarter of 2021, primarily reflecting significantly higher net revenues in FICC intermediation, driven by significantly higher net revenues in interest rate products, commodities and currencies, partially offset by significantly lower net revenues in mortgages and credit products. Net revenues in FICC financing were significantly higher, primarily driven by mortgage lending and repurchase agreements.
Net revenues in Equities were $2.86 billion, 11% higher than the second quarter of 2021, due to significantly higher net revenues in Equities financing, primarily reflecting increased activity. Net revenues in Equities intermediation were slightly lower, reflecting significantly lower net revenues in cash products, partially offset by higher net revenues in derivatives. |
Global Markets
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$6.47 billion
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FICC intermediation | $2.84 billion | |||||
FICC financing | $768 million | |||||
FICC | $3.61 billion | |||||
Equities intermediation | $1.73 billion | |||||
Equities financing | $1.13 billion | |||||
Equities | $2.86 billion
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3
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
| Asset Management |
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Net revenues in Asset Management were $1.08 billion for the second quarter of 2022, 79% lower than the second quarter of 2021 and 99% higher than the first quarter of 2022. The decrease compared with the second quarter of 2021 reflected net losses in Equity investments and significantly lower net revenues in Lending and debt investments, partially offset by significantly higher Management and other fees.
Macroeconomic concerns and the prolonged war in Ukraine continued to contribute to the volatility in global equity prices and wider credit spreads. As a result, net losses in Equity investments reflected significant mark-to-market net losses from investments in public equities and significantly lower net gains from investments in private equities, compared with a strong prior year period. The decrease in Lending and debt investments net revenues primarily reflected mark-downs on debt securities and loans compared with net gains in the prior year period. The increase in Management and other fees reflected the inclusion of NNIP5 and the impact of fee waivers on money market funds in the prior year period. Incentive fees were higher, driven by harvesting. |
Asset Management
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$1.08 billion
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Management and other fees |
$ 1.01 billion | |||||
Incentive fees | $ 160 million | |||||
Equity investments |
$(221) million | |||||
Lending and debt investments | $ 137 million
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| Consumer & Wealth Management |
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Net revenues in Consumer & Wealth Management were $2.18 billion for the second quarter of 2022, 25% higher than the second quarter of 2021 and 3% higher than the first quarter of 2022.
Net revenues in Wealth management were $1.57 billion, 13% higher than the second quarter of 2021, due to higher Management and other fees, reflecting higher placement fees and the impact of higher average assets under supervision, and higher net revenues in Private banking and lending, reflecting higher loan and deposit balances.
Net revenues in Consumer banking were $608 million, 67% higher than the second quarter of 2021, primarily reflecting significantly higher credit card balances and higher deposit balances. |
Consumer & Wealth Management
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$2.18 billion
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Wealth management |
$1.57 billion | |||||
Consumer banking | $608 million
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Provision for Credit Losses
Provision for credit losses was $667 million for the second quarter of 2022, compared with a net benefit of $92 million in the second quarter of 2021 and net provisions of $561 million in the first quarter of 2022. Provisions for the second quarter of 2022 reflected portfolio growth (primarily in credit cards) and the impact of broad macroeconomic concerns. The net benefit for the second quarter of 2021 reflected reserve reductions as the broader economic environment continued to improve following the initial impact of the COVID-19 pandemic, partially offset by portfolio growth.
The firm’s allowance for credit losses was $5.27 billion as of June 30, 2022. | ||||
Provision for Credit Losses
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$667 million
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4
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
Operating Expenses
Operating expenses were $7.65 billion for the second quarter of 2022, 11% lower than the second quarter of 2021 and essentially unchanged compared with the first quarter of 2022. The firm’s efficiency ratio3 for the first half of 2022 was 62.0%, compared with 54.6% for the first half of 2021.
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Operating Expenses
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$7.65 billion
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The decrease in operating expenses compared with the second quarter of 2021 was primarily due to significantly lower compensation and benefits expenses. In addition, net provisions for litigation and regulatory proceedings were lower. These decreases were partially offset by increases from the inclusion of NNIP and GreenSky, Inc., transaction based expenses, market development expenses, professional fees and technology expenses.
Net provisions for litigation and regulatory proceedings for the second quarter of 2022 were $91 million compared with $226 million for the second quarter of 2021.
Headcount increased 4% compared with the end of the first quarter of 2022, primarily reflecting the acquisition of NNIP and investments in growth initiatives.
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YTD Efficiency Ratio
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62.0%
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Provision for Taxes
The effective income tax rate for the first half of 2022 increased to 16.3% from 15.4% for the first quarter of 2022, primarily due to a decrease in the impact of tax benefits on the settlement of employee share-based awards, partially offset by permanent tax benefits, in the first half of 2022 compared with the first quarter of 2022. |
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YTD Effective Tax Rate
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16.3%
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Other Matters
◾ On July 14, 2022, the Board of Directors of The Goldman Sachs Group, Inc. increased the quarterly dividend to $2.50 per common share from $2.00 per common share. The dividend will be paid on September 29, 2022 to common shareholders of record on September 1, 2022.
◾ During the quarter, the firm returned $1.22 billion of capital to common shareholders, including $500 million of common share repurchases (1.5 million shares at an average cost of $323.74) and $719 million of common stock dividends.3
◾ Global core liquid assets3 averaged $391 billion4 for the second quarter of 2022, compared with an average of $375 billion for the first quarter of 2022. |
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Declared Quarterly Dividend Per Common Share
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$2.50
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Common Share Repurchases
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1.5 million shares for $500 million
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Average GCLA
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$391 billion
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5
Goldman Sachs Reports
Second Quarter 2022 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 |
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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, 2021.
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 and future results 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 or worsening of hostilities, including the escalation or continuation of the war between Russia and Ukraine, continuing 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, 2021.
| Conference Call |
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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 1-800-753-0786 (in the U.S.) or 1-323-794-2410 (outside the U.S.) passcode number 7042022. 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 1-888-203-1112 (in the U.S.) or 1- 719-457-0820 (outside the U.S.) passcode number 7042022 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
Second Quarter 2022 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
THREE MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||||
JUNE 30, 2022 | MARCH 31, 2022 | JUNE 30, 2021 | MARCH 31, 2022 | JUNE 30, 2021 | ||||||||||||||||||
INVESTMENT BANKING | ||||||||||||||||||||||
Financial advisory | $ 1,197 | $ 1,127 | $ 1,257 | 6 % | (5) % | |||||||||||||||||
Equity underwriting | 131 | 261 | 1,243 | (50) | (89) | |||||||||||||||||
Debt underwriting | 457 | 743 | 950 | (38) | (52) | |||||||||||||||||
Underwriting | 588 | 1,004 | 2,193 | (41) | (73) | |||||||||||||||||
Corporate lending
| 352 | 280 | 159 | 26 | 121 | |||||||||||||||||
Net revenues |
|
2,137 |
|
|
2,411 |
|
|
3,609 |
|
|
(11) |
|
|
(41) |
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GLOBAL MARKETS | ||||||||||||||||||||||
FICC intermediation | 2,839 | 4,038 | 1,897 | (30) | 50 | |||||||||||||||||
FICC financing | 768 | 685 | 423 | 12 | 82 | |||||||||||||||||
FICC | 3,607 | 4,723 | 2,320 | (24) | 55 | |||||||||||||||||
Equities intermediation | 1,734 | 2,161 | 1,765 | (20) | (2) | |||||||||||||||||
Equities financing | 1,126 | 988 | 815 | 14 | 38 | |||||||||||||||||
Equities
| 2,860 | 3,149 | 2,580 | (9) | 11 | |||||||||||||||||
Net revenues | 6,467 | 7,872 | 4,900 |
|
(18) |
|
|
32 |
| |||||||||||||
ASSET MANAGEMENT | ||||||||||||||||||||||
Management and other fees | 1,008 | 772 | 727 | 31 | 39 | |||||||||||||||||
Incentive fees | 160 | 52 | 78 | 208 | 105 | |||||||||||||||||
Equity investments | (221) | (367) | 3,717 | N.M. | N.M. | |||||||||||||||||
Lending and debt investments
| 137 | 89 | 610 | 54 | (78) | |||||||||||||||||
Net revenues |
|
1,084 |
|
|
546 |
|
|
5,132 |
|
|
99 |
|
|
(79) |
| |||||||
CONSUMER & WEALTH MANAGEMENT | ||||||||||||||||||||||
Management and other fees | 1,224 | 1,255 | 1,109 | (2) | 10 | |||||||||||||||||
Incentive fees | 24 | 27 | 15 | (11) | 60 | |||||||||||||||||
Private banking and lending | 320 | 339 | 260 | (6) | 23 | |||||||||||||||||
Wealth management | 1,568 | 1,621 | 1,384 | (3) | 13 | |||||||||||||||||
Consumer banking
| 608 | 483 | 363 | 26 | 67 | |||||||||||||||||
Net revenues |
|
2,176 |
|
|
2,104 |
|
|
1,747 |
|
|
3 |
|
|
25 |
| |||||||
Total net revenues
|
|
$ 11,864
|
|
|
$ 12,933
|
|
|
$ 15,388
|
|
|
(8) |
|
|
(23) |
| |||||||
Geographic Net Revenues (unaudited)3 | ||||||||||||||||||||||
$ in millions | ||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||
JUNE 30, 2022 | MARCH 31, 2022 | JUNE 30, 2021 | ||||||||||||||||||||
Americas | $ 7,047 | $ 7,386 | $ 9,957 | |||||||||||||||||||
EMEA | 3,400 | 3,850 | 3,478 | |||||||||||||||||||
Asia
| 1,417 | 1,697 | 1,953 | |||||||||||||||||||
Total net revenues |
|
$ 11,864 |
|
|
$ 12,933 |
|
|
$ 15,388 |
| |||||||||||||
Americas | 59% | 57% | 65% | |||||||||||||||||||
EMEA | 29% | 30% | 22% | |||||||||||||||||||
Asia
| 12% | 13% | 13% | |||||||||||||||||||
Total
|
|
100%
|
|
|
100%
|
|
|
100%
|
|
7
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
SIX MONTHS ENDED | % CHANGE FROM | |||||||||||||||
JUNE 30, 2022 | JUNE 30, 2021 | JUNE 30, 2021 | ||||||||||||||
INVESTMENT BANKING | ||||||||||||||||
Financial advisory | $ 2,324 | $ 2,374 | (2) % | |||||||||||||
Equity underwriting | 392 | 2,812 | (86) | |||||||||||||
Debt underwriting | 1,200 | 1,830 | (34) | |||||||||||||
Underwriting | 1,592 | 4,642 | (66) | |||||||||||||
Corporate lending |
| 632
|
|
| 364
|
| 74 | |||||||||
Net revenues |
| 4,548
|
|
| 7,380
|
|
| (38) |
| |||||||
GLOBAL MARKETS | ||||||||||||||||
FICC intermediation | 6,877 | 5,348 | 29 | |||||||||||||
FICC financing | 1,453 | 865 | 68 | |||||||||||||
FICC | 8,330 | 6,213 | 34 | |||||||||||||
Equities intermediation | 3,895 | 4,351 | (10) | |||||||||||||
Equities financing | 2,114 | 1,917 | 10 | |||||||||||||
Equities
|
| 6,009
|
| 6,268 | (4) | |||||||||||
Net revenues |
| 14,339
|
| 12,481 |
| 15 |
| |||||||||
ASSET MANAGEMENT | ||||||||||||||||
Management and other fees | 1,780 | 1,420 | 25 | |||||||||||||
Incentive fees | 212 | 120 | 77 | |||||||||||||
Equity investments | (588) | 6,837 | N.M. | |||||||||||||
Lending and debt investments
|
| 226
|
|
| 1,369
|
| (83) | |||||||||
Net revenues |
| 1,630
|
|
| 9,746
|
|
| (83) |
| |||||||
CONSUMER & WEALTH MANAGEMENT | ||||||||||||||||
Management and other fees | 2,479 | 2,186 | 13 | |||||||||||||
Incentive fees | 51 | 41 | 24 | |||||||||||||
Private banking and lending | 659 | 524 | 26 | |||||||||||||
Wealth management | 3,189 | 2,751 | 16 | |||||||||||||
Consumer banking
|
| 1,091
|
|
| 734
|
| 49 | |||||||||
Net revenues |
| 4,280
|
|
| 3,485
|
|
| 23 |
| |||||||
Total net revenues
|
| $ 24,797
|
|
| $ 33,092
|
| (25) | |||||||||
Geographic Net Revenues (unaudited)3 $ in millions
|
| |||||||||||||||
SIX MONTHS ENDED | ||||||||||||||||
JUNE 30, 2022 | JUNE 30, 2021 | |||||||||||||||
Americas | $ 14,433 | $ 20,782 | ||||||||||||||
EMEA | 7,250 | 8,191 | ||||||||||||||
Asia
|
| 3,114
|
|
| 4,119
|
| ||||||||||
Total net revenues |
| $ 24,797
|
|
| $ 33,092
|
| ||||||||||
Americas | 58% | 63% | ||||||||||||||
EMEA | 29% | 25% | ||||||||||||||
Asia
|
| 13%
|
|
| 12%
|
| ||||||||||
Total
|
| 100%
|
|
| 100%
|
|
8
Goldman Sachs Reports
Second Quarter 2022 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 | |||||||||||||||||||||||||
JUNE 30, 2022 | MARCH 31, 2022 | JUNE 30, 2021 | MARCH 31, 2022 | JUNE 30, 2021 | ||||||||||||||||||||||
REVENUES
| ||||||||||||||||||||||||||
Investment banking | $ 1,785 | $ 2,131 | $ 3,450 | (16) % | (48) % | |||||||||||||||||||||
Investment management | 2,393 | 2,064 | 1,905 | 16 | 26 | |||||||||||||||||||||
Commissions and fees | 1,073 | 1,011 | 833 | 6 | 29 | |||||||||||||||||||||
Market making | 4,929 | 5,990 | 3,274 | (18) | 51 | |||||||||||||||||||||
Other principal transactions
|
| (50)
|
|
| (90)
|
|
| 4,297
|
|
| N.M.
|
|
| N.M.
|
| |||||||||||
Total non-interest revenues
|
| 10,130
|
|
| 11,106
|
|
| 13,759
|
|
| (9)
|
|
| (26)
|
| |||||||||||
Interest income | 4,851 | 3,212 | 2,939 | 51 | 65 | |||||||||||||||||||||
Interest expense
|
| 3,117
|
|
| 1,385
|
|
| 1,310
|
|
| 125
|
| 138 | |||||||||||||
Net interest income
|
| 1,734
|
|
| 1,827
|
|
| 1,629
|
|
| (5)
|
|
|
6
|
| |||||||||||
Total net revenues
|
| 11,864
|
|
| 12,933
|
|
| 15,388
|
|
| (8)
|
|
| (23)
|
| |||||||||||
Provision for credit losses
|
| 667
|
|
| 561
|
|
| (92)
|
|
| 19
|
|
| N.M.
|
| |||||||||||
OPERATING EXPENSES
| ||||||||||||||||||||||||||
Compensation and benefits | 3,695 | 4,083 | 5,263 | (10) | (30) | |||||||||||||||||||||
Transaction based | 1,317 | 1,244 | 1,125 | 6 | 17 | |||||||||||||||||||||
Market development | 235 | 162 | 115 | 45 | 104 | |||||||||||||||||||||
Communications and technology | 444 | 424 | 371 | 5 | 20 | |||||||||||||||||||||
Depreciation and amortization | 570 | 492 | 520 | 16 | 10 | |||||||||||||||||||||
Occupancy | 259 | 251 | 241 | 3 | 7 | |||||||||||||||||||||
Professional fees | 490 | 437 | 344 | 12 | 42 | |||||||||||||||||||||
Other expenses
| 643 | 623 | 661 |
| 3
|
|
| (3)
|
| |||||||||||||||||
Total operating expenses
|
| 7,653
|
|
| 7,716
|
|
| 8,640
|
|
| (1)
|
|
| (11)
|
| |||||||||||
Pre-tax earnings | 3,544 | 4,656 | 6,840 | (24) | (48) | |||||||||||||||||||||
Provision for taxes
| 617 | 717 | 1,354 |
| (14)
|
|
| (54)
|
| |||||||||||||||||
Net earnings
| 2,927 | 3,939 | 5,486 |
| (26)
|
|
| (47)
|
| |||||||||||||||||
Preferred stock dividends
| 141 | 108 | 139 |
| 31
|
|
| 1
|
| |||||||||||||||||
Net earnings applicable to common shareholders
|
| $ 2,786
|
|
| $ 3,831
|
|
| $ 5,347
|
|
| (27)
|
|
| (48)
|
| |||||||||||
EARNINGS PER COMMON SHARE
| ||||||||||||||||||||||||||
Basic3 | $ 7.81 | $ 10.87 | $ 15.22 | (28) % | (49) % | |||||||||||||||||||||
Diluted | $ 7.73 | $ 10.76 | $ 15.02 | (28) | (49) | |||||||||||||||||||||
AVERAGE COMMON SHARES
| ||||||||||||||||||||||||||
Basic | 355.0 | 351.2 | 350.8 | 1 | 1 | |||||||||||||||||||||
Diluted | 360.5 | 355.9 | 356.0 | 1 | 1 | |||||||||||||||||||||
SELECTED DATA AT PERIOD-END
| ||||||||||||||||||||||||||
Common shareholders’ equity | $ 107,168 | $ 104,536 | $ 92,687 | 3 | 16 | |||||||||||||||||||||
Basic shares3 | 355.0 | 356.4 | 349.9 | – | 1 | |||||||||||||||||||||
Book value per common share | $ 301.88 | $ 293.31 | $ 264.90 | 3 | 14 | |||||||||||||||||||||
Headcount
|
| 47,000
|
|
| 45,100
|
|
| 40,800
|
|
| 4
|
|
| 15
|
|
9
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings (unaudited)
In millions, except per share amounts
SIX MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||
JUNE 30, 2022 | JUNE 30, 2021 | JUNE 30, 2021 | ||||||||||||||||||
REVENUES
| ||||||||||||||||||||
Investment banking
| $ 3,916 | $ 7,016 | (44) % | |||||||||||||||||
Investment management
| 4,457 | 3,701 | 20 | |||||||||||||||||
Commissions and fees
| 2,084 | 1,906 | 9 | |||||||||||||||||
Market making
| 10,919 | 9,167 | 19 | |||||||||||||||||
Other principal transactions
|
| (140)
|
|
| 8,191
|
|
| N.M.
|
| |||||||||||
Total non-interest revenues
|
| 21,236
|
|
| 29,981
|
|
| (29)
|
| |||||||||||
Interest income
| 8,063 | 5,993 | 35 | |||||||||||||||||
Interest expense
|
| 4,502
|
|
| 2,882
|
|
| 56
|
| |||||||||||
Net interest income
|
| 3,561
|
|
| 3,111
|
|
| 14
|
| |||||||||||
Total net revenues
|
| 24,797
|
|
| 33,092
|
|
| (25)
|
| |||||||||||
Provision for credit losses
|
| 1,228
|
|
| (162)
|
|
| N.M.
|
| |||||||||||
OPERATING EXPENSES
| ||||||||||||||||||||
Compensation and benefits
| 7,778 | 11,306 | (31) | |||||||||||||||||
Transaction based
| 2,561 | 2,381 | 8 | |||||||||||||||||
Market development
| 397 | 195 | 104 | |||||||||||||||||
Communications and technology
| 868 | 746 | 16 | |||||||||||||||||
Depreciation and amortization
| 1,062 | 1,018 | 4 | |||||||||||||||||
Occupancy
| 510 | 488 | 5 | |||||||||||||||||
Professional fees
| 927 | 704 | 32 | |||||||||||||||||
Other expenses
|
| 1,266
|
|
| 1,239
|
|
| 2
|
| |||||||||||
Total operating expenses
|
| 15,369
|
|
| 18,077
|
|
| (15)
|
| |||||||||||
Pre-tax earnings | 8,200 | 15,177 | (46) | |||||||||||||||||
Provision for taxes | 1,334 | 2,855 | (53) | |||||||||||||||||
Net earnings
| 6,866 | 12,322 | (44) | |||||||||||||||||
Preferred stock dividends
| 249 | 264 | (6) | |||||||||||||||||
Net earnings applicable to common shareholders
| $ 6,617 | $ 12,058 | (45) | |||||||||||||||||
EARNINGS PER COMMON SHARE
| ||||||||||||||||||||
Basic3 | $ 18.67 | $ 34.06 | (45) % | |||||||||||||||||
Diluted | $ 18.47 | $ 33.64 | (45) | |||||||||||||||||
AVERAGE COMMON SHARES | ||||||||||||||||||||
Basic | 353.1 | 353.6 | – | |||||||||||||||||
Diluted
|
| 358.2
|
|
| 358.4
|
|
| –
|
|
10
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)4
$ in billions
AS OF | ||||||||||||||||
JUNE 30, 2022 | MARCH 31, 2022 | |||||||||||||||
ASSETS
| ||||||||||||||||
Cash and cash equivalents | $ 288 | $ 274 | ||||||||||||||
Collateralized agreements | 448 | 453 | ||||||||||||||
Customer and other receivables | 163 | 175 | ||||||||||||||
Trading assets | 372 | 392 | ||||||||||||||
Investments | 115 | 92 | ||||||||||||||
Loans | 176 | 166 | ||||||||||||||
Other assets
| 39 | 37 | ||||||||||||||
Total assets
|
|
$ 1,601
|
|
|
$ 1,589
|
| ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
| ||||||||||||||||
Deposits | $ 391 | $ 387 | ||||||||||||||
Collateralized financings | 228 | 227 | ||||||||||||||
Customer and other payables | 280 | 293 | ||||||||||||||
Trading liabilities | 255 | 233 | ||||||||||||||
Unsecured short-term borrowings | 58 | 58 | ||||||||||||||
Unsecured long-term borrowings | 251 | 258 | ||||||||||||||
Other liabilities | 20 | 18 | ||||||||||||||
Total liabilities
|
|
1,483
|
|
|
1,474
|
| ||||||||||
Shareholders’ equity
| 118 | 115 | ||||||||||||||
Total liabilities and shareholders’ equity
|
|
$ 1,601
|
|
|
$ 1,589
|
| ||||||||||
Capital Ratios and Supplementary Leverage Ratio (unaudited)3,4 $ in billions
|
| |||||||||||||||
AS OF | ||||||||||||||||
JUNE 30, 2022 | MARCH 31, 2022 | |||||||||||||||
Common equity tier 1 capital | $ 98.3 | $ 98.3 | ||||||||||||||
STANDARDIZED CAPITAL RULES
| ||||||||||||||||
Risk-weighted assets | $ 692 | $ 682 | ||||||||||||||
Common equity tier 1 capital ratio | 14.2% | 14.4% | ||||||||||||||
ADVANCED CAPITAL RULES
| ||||||||||||||||
Risk-weighted assets | $ 686 | $ 674 | ||||||||||||||
Common equity tier 1 capital ratio | 14.3% | 14.6% | ||||||||||||||
SUPPLEMENTARY LEVERAGE RATIO
| ||||||||||||||||
Supplementary leverage ratio
| 5.6% | 5.6% | ||||||||||||||
Average Daily VaR (unaudited)3,4 $ in millions
|
| |||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||
JUNE 30, 2022 | MARCH 31, 2022 | |||||||||||||||
RISK CATEGORIES
| ||||||||||||||||
Interest rates | $ 104 | $ 74 | ||||||||||||||
Equity prices | 36 | 33 | ||||||||||||||
Currency rates | 23 | 25 | ||||||||||||||
Commodity prices | 63 | 49 | ||||||||||||||
Diversification effect | (102) | (83) | ||||||||||||||
Total
|
|
$ 124
|
|
|
$ 98
|
|
11
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Assets Under Supervision (unaudited)3,4
$ in billions
AS OF | ||||||||||||||||||||||||
JUNE 30, 2022 | MARCH 31, 2022 | JUNE 30, 2021 | ||||||||||||||||||||||
SEGMENT
| ||||||||||||||||||||||||
Asset Management
|
| $ 1,824
|
|
| $ 1,656
|
|
| $ 1,633
|
| |||||||||||||||
Consumer & Wealth Management
|
| 671
|
|
| 738
|
|
| 672
|
| |||||||||||||||
Total AUS
|
| $ 2,495
|
|
| $ 2,394
|
|
| $ 2,305
|
| |||||||||||||||
ASSET CLASS
| ||||||||||||||||||||||||
Alternative investments
|
| $ 254
|
|
| $ 240
|
|
| $ 211
|
| |||||||||||||||
Equity
|
| 552
|
|
| 592
|
|
| 558
|
| |||||||||||||||
Fixed income
|
| 1,007
|
|
| 887
|
|
| 914
|
| |||||||||||||||
Total long-term AUS
|
| 1,813
|
|
| 1,719
|
|
| 1,683
|
| |||||||||||||||
Liquidity products
|
| 682
|
|
| 675
|
|
| 622
|
| |||||||||||||||
Total AUS
|
| $ 2,495
|
|
| $ 2,394
|
|
| $ 2,305
|
| |||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||||
JUNE 30, 2022 | MARCH 31, 2022 | JUNE 30, 2021 | ||||||||||||||||||||||
ASSET MANAGEMENT
| ||||||||||||||||||||||||
Beginning balance
|
| $ 1,656
|
|
| $ 1,719
|
|
| $ 1,567
|
| |||||||||||||||
Net inflows / (outflows):
| ||||||||||||||||||||||||
Alternative investments |
| 22
|
|
| 2
|
|
| 3
|
| |||||||||||||||
Equity |
| 59
|
|
| 6
|
|
| (5)
|
| |||||||||||||||
Fixed income |
| 209
|
|
| 2
|
|
| 12
|
| |||||||||||||||
Total long-term AUS net inflows / (outflows) |
| 290
|
|
| 10
| 6
|
| 10
|
| |||||||||||||||
Liquidity products |
| 20
|
|
| (7)
|
|
| 16
|
| |||||||||||||||
Total AUS net inflows / (outflows) |
| 310
| 5
|
| 3
|
|
| 26
|
| |||||||||||||||
Net market appreciation / (depreciation) |
| (142)
|
|
| (66)
|
|
| 40
|
| |||||||||||||||
Ending balance |
| $ 1,824
|
|
| $ 1,656
|
|
| $ 1,633
|
| |||||||||||||||
CONSUMER & WEALTH MANAGEMENT
| ||||||||||||||||||||||||
Beginning balance
|
| $ 738
|
|
| $ 751
|
|
| $ 637
|
| |||||||||||||||
Net inflows / (outflows):
| ||||||||||||||||||||||||
Alternative investments
|
| 1
|
|
| 3
|
|
| 5
|
| |||||||||||||||
Equity
|
| 3
|
|
| 11
|
|
| 8
|
| |||||||||||||||
Fixed income
|
| (1)
|
|
| –
|
|
| (1)
|
| |||||||||||||||
Total long-term AUS net inflows / (outflows)
|
| 3
|
|
| 14
|
|
| 12
|
| |||||||||||||||
Liquidity products
|
| (13)
|
|
| 1
|
|
| –
|
| |||||||||||||||
Total AUS net inflows / (outflows)
|
| (10)
|
|
| 15
|
|
| 12
|
| |||||||||||||||
Net market appreciation / (depreciation)
|
| (57)
|
|
| (28)
|
|
| 23
|
| |||||||||||||||
Ending balance
|
| $ 671
|
|
| $ 738
|
|
| $ 672
|
| |||||||||||||||
FIRMWIDE
| ||||||||||||||||||||||||
Beginning balance
|
| $ 2,394
|
|
| $ 2,470
|
|
| $ 2,204
|
| |||||||||||||||
Net inflows / (outflows):
| ||||||||||||||||||||||||
Alternative investments
|
| 23
|
|
| 5
|
|
| 8
|
| |||||||||||||||
Equity
|
| 62
|
|
| 17
|
|
| 3
|
| |||||||||||||||
Fixed income
|
| 208
|
|
| 2
|
|
| 11
|
| |||||||||||||||
Total long-term AUS net inflows / (outflows)
|
| 293
|
|
| 24
| 6
|
| 22
|
| |||||||||||||||
Liquidity products
|
| 7
|
|
| (6)
|
|
| 16
|
| |||||||||||||||
Total AUS net inflows / (outflows)
|
| 300
| 5
|
| 18
|
|
| 38
|
| |||||||||||||||
Net market appreciation / (depreciation)
|
| (199)
|
|
| (94)
|
|
| 63
|
| |||||||||||||||
Ending balance
|
| $ 2,495
|
|
| $ 2,394
|
|
| $ 2,305
|
|
12
Goldman Sachs Reports
Second Quarter 2022 Earnings Results
Footnotes |
|
1. | Annualized ROE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly common shareholders’ equity. Annualized ROTE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly tangible common shareholders’ equity (tangible common shareholders’ equity is calculated as total shareholders’ equity less preferred stock, goodwill and identifiable intangible assets). Management believes that ROTE is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed internally, and that tangible common shareholders’ equity is meaningful because it is a measure that the firm and investors use to assess capital adequacy. ROTE and tangible common shareholders’ equity are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies. |
The table below presents a reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity:
AVERAGE FOR THE | ||||||||||||||
Unaudited, $ in millions | THREE MONTHS ENDED JUNE 30, 2022 |
| SIX MONTHS ENDED JUNE 30, 2022 | |||||||||||
Total shareholders’ equity
|
| $ 116,229
|
|
| $ 114,286
|
| ||||||||
Preferred stock
|
| (10,703)
|
|
| (10,703)
|
| ||||||||
Common shareholders’ equity
|
| 105,526
|
|
| 103,583
|
| ||||||||
Goodwill |
| (5,957)
|
|
| (5,241)
|
| ||||||||
Identifiable intangible assets
|
| (1,844)
|
|
| (1,242)
|
| ||||||||
Tangible common shareholders’ equity
|
| $ 97,725
|
|
| $ 97,100
|
|
2. | Dealogic – January 1, 2022 through June 30, 2022. |
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 March 31, 2022: (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 “Capital Management and Regulatory Capital – 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 March 31, 2022: (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 second quarter of 2022 and may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended June 30, 2022. |
5. | Includes $305 billion of inflows in Asset Management assets under supervision (substantially all in fixed income and equity assets) from the acquisition of NN Investment Partners. |
6. | Includes $7 billion of inflows in Asset Management long-term assets under supervision (substantially all in fixed income and equity assets) from the acquisition of the assets of Bombardier Global Pension Asset Management Inc. |
13