8-K
GOLDMAN SACHS GROUP INC Depositary Shares, Each Representing 1/1,000th Interest in a Share of 5.50% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series J Depositary Shares, Each Representing 1/1,000th Interest in a Share of 6.375% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K 5.793% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital II NY false 0000886982 0000886982 2023-04-18 2023-04-18 0000886982 us-gaap:CommonStockMember 2023-04-18 2023-04-18 0000886982 us-gaap:SeriesAPreferredStockMember 2023-04-18 2023-04-18 0000886982 us-gaap:SeriesCPreferredStockMember 2023-04-18 2023-04-18 0000886982 us-gaap:SeriesDPreferredStockMember 2023-04-18 2023-04-18 0000886982 us-gaap:FixedIncomeInterestRateMember 2023-04-18 2023-04-18 0000886982 gs:DepositarySharesEachRepresenting11000thInterestInAShareOf6.375FixedToFloatingRateNonCumulativePreferredStockMember 2023-04-18 2023-04-18 0000886982 gs:M5.793FixedToFloatingRateNormalAutomaticPreferredEnhancedCapitalSecuritiesOfGoldmanSachsCapitalIiMember 2023-04-18 2023-04-18 0000886982 gs:FloatingRateNormalAutomaticPreferredEnhancedCapitalSecuritiesOfGoldmanSachsCapitalIiiMember 2023-04-18 2023-04-18 0000886982 gs:MediumTermNotesSeriesFCallableFixedAndFloatingRateNotesDueMarch2031OfGsFinanceCorpMember 2023-04-18 2023-04-18 0000886982 gs:MediumTermNotesSeriesFCallableFixedAndFloatingRateNotesDueMay2031OfGsFinanceCorpMember 2023-04-18 2023-04-18

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

                          

  

CURRENT REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): April 18, 2023

The Goldman Sachs Group, Inc.

(Exact name of registrant as specified in its charter)

Commission File Number: 001-14965

 

Delaware      13-4019460

(State or other jurisdiction of

incorporation)

     

(IRS Employer

Identification No.)

200 West Street, New York, N.Y.      10282
(Address of principal executive offices)      (Zip Code)

(212) 902-1000

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class    Trading
Symbol		   

Exchange

on which

registered

Common stock, par value $.01 per share    GS    NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series A    GS PrA    NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series C    GS PrC    NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series D    GS PrD    NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 5.50% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series J    GS PrJ    NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 6.375% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K    GS PrK    NYSE
5.793% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital II    GS/43PE    NYSE
Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital III    GS/43PF    NYSE
Medium-Term Notes, Series F, Callable Fixed and Floating Rate Notes due March 2031 of GS Finance Corp.    GS/31B    NYSE

Medium-Term Notes, Series F, Callable Fixed and Floating Rate Notes due May 2031 of GS Finance Corp.

 

    GS/31X    NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

TABLE OF CONTENTS

 

Item 2.02 Results of Operations and Financial Condition

  

Item 7.01 Regulation FD Disclosure

  

Item 9.01 Financial Statements and Exhibits

  

Signature

  

Exhibit 99.1: PRESS RELEASE

  

Exhibit 99.2: PRESENTATION

  

Item 2.02 Results of Operations and Financial Condition.

On April 18, 2023, The Goldman Sachs Group, Inc. (Group Inc. and, together with its consolidated subsidiaries, the firm) reported its earnings for the first quarter ended March 31, 2023. A copy of Group Inc.’s press release containing this information is attached as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

On April 18, 2023, at 9:30 a.m. (ET), the firm will hold a conference call to discuss the firm’s financial results, outlook and related matters. A copy of the presentation for the conference call is attached as Exhibit 99.2 to this Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

  99.1

Press release of Group Inc. dated April 18, 2023 containing financial information for its first quarter ended March 31, 2023.

The quotation on page 1 of Exhibit 99.1 and the information under the caption “Highlights” on the following page (Excluded Sections) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (Exchange Act) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Group Inc. under the Securities Act of 1933 or the Exchange Act. The information included in Exhibit 99.1, other than in the Excluded Sections, shall be deemed “filed” for purposes of the Exchange Act.

 

  99.2

Presentation of Group Inc. dated April 18, 2023, for the conference call on April 18, 2023.

Exhibit 99.2 is being furnished pursuant to Item 7.01 of Form 8-K and the information included therein shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Group Inc. under the Securities Act of 1933 or the Exchange Act.

 

  101

Pursuant to Rule 406 of Regulation S-T, the cover page information is formatted in iXBRL (Inline eXtensible Business Reporting Language).

 

  104

Cover Page Interactive Data File (formatted in iXBRL in Exhibit 101).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

THE GOLDMAN SACHS GROUP, INC.

 
       

          (Registrant)

  

Date: April 18, 2023

    

By:

  

/s/ Denis P. Coleman III

  
                                                                                                          

Name:  Denis P. Coleman III

  
     

Title:    Chief Financial Officer

  

Exhibit 99.1

 

LOGO

 

 

First Quarter 2023

 

Earnings Results

 

Media Relations: Tony Fratto 212-902-5400

Investor Relations: Carey Halio 212-902-0300    

 

   

 

The Goldman Sachs Group, Inc.          

200 West Street | New York, NY 10282          

 

   

First Quarter 2023 Earnings Results

Goldman Sachs Reports First Quarter Earnings Per Common Share of $8.79

 

 

 

“The events of the first quarter acted as another real-life stress test, demonstrating the resilience of Goldman Sachs and the nation’s largest financial institutions. Our deeply rooted risk management culture, strong liquidity and robust capital position enabled us to continue to support our clients and deliver solid performance. We are operating from a position of strength and remain focused on executing our strategy to further grow our leading Global Banking & Markets and Asset & Wealth Management franchises.”

 

- David Solomon, Chairman and Chief Executive Officer    

 

 

 

Financial Summary

 

 

 

    

     

    

     

    

 

 

 

Net Revenues

 

  

 

Net Earnings

 

  

 

EPS

 

 

 

1Q23                   $12.22 billion  

 

  

 

1Q23                     $3.23 billion  

 

  

 

1Q23                                 $8.79  

 

     
 

 

Annualized ROE1

 

  

 

Annualized  ROTE1

 

  

 

Book Value Per Share

 

 

 

1Q23                                11.6%  

 

  

 

1Q23                                12.6%  

 

  

 

1Q23                            $310.48  

 

     

NEW YORK, April 18, 2023 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $12.22 billion and net earnings of $3.23 billion for the first quarter ended March 31, 2023. Net revenues included a loss of approximately $470 million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale (largely offset by a related reserve reduction of approximately $440 million in provision for credit losses).

Diluted earnings per common share (EPS) was $8.79 for the first quarter of 2023 compared with $10.76 for the first quarter of 2022 and $3.32 for the fourth quarter of 2022.

Annualized return on average common shareholders’ equity (ROE)1 was 11.6% and annualized return on average tangible common shareholders’ equity (ROTE)1 was 12.6% for the first quarter of 2023.

1      

 

 

Goldman Sachs Reports

First Quarter 2023 Earnings Results

 

 

Highlights

 

 

  ◾  

During the quarter, the firm supported clients and continued to execute on strategic priorities, which contributed to solid quarterly net revenues of $12.22 billion and diluted EPS of $8.79.

 

 

  ◾  

Global Banking & Markets generated quarterly net revenues of $8.44 billion, driven by strong performances in Fixed Income, Currency and Commodities (FICC) and Equities, including record quarterly net revenues in Equities financing.

 

 

  ◾  

The firm ranked #1 in worldwide completed mergers and acquisitions for the year-to-date.2

 

 

  ◾  

Asset & Wealth Management generated quarterly net revenues of $3.22 billion, including record Management and other fees.

 

 

  ◾  

Assets under supervision3,4 increased $125 billion during the quarter to a record $2.67 trillion.

 

 

  ◾  

Platform Solutions generated quarterly net revenues of $564 million, more than double the amount in the prior year period.

 

 

  ◾  

Book value per common share increased by 2.3% during the quarter to $310.48.

 

 

 

Net Revenues

 

Net revenues were $12.22 billion for the first quarter of 2023, 5% lower than the first quarter of 2022 and 15% higher than the fourth quarter of 2022. The decrease compared with the first quarter of 2022 reflected lower net revenues in Global Banking & Markets, partially offset by significantly higher net revenues in Asset & Wealth Management and Platform Solutions.

  

  

  

 

Net Revenues

 

   

 

$12.22 billion

 

   
   

2      

 

Goldman Sachs Reports

First Quarter 2023 Earnings Results

 

 

      

 

   Global Banking & Markets  

 

       

 

Net revenues in Global Banking & Markets were $8.44 billion for the first quarter of 2023, 16% lower than a strong first quarter of 2022 and 30% higher than the fourth quarter of 2022.

 

Investment banking fees were $1.58 billion, 26% lower than the first quarter of 2022, primarily due to significantly lower net revenues in Advisory, reflecting a significant decline in industry-wide completed mergers and acquisitions transactions, and Debt underwriting, reflecting a decline in industry-wide volumes. The firm’s Investment banking fees backlog3 decreased compared with the end of 2022.

 

Net revenues in FICC were $3.93 billion, 17% lower than the first quarter of 2022, reflecting significantly lower net revenues in FICC intermediation, driven by significantly lower net revenues in currencies and commodities, partially offset by significantly higher net revenues in interest rate products and higher net revenues in mortgages and credit products. Net revenues in FICC financing were slightly higher.

 

Net revenues in Equities were $3.02 billion, 7% lower than the first quarter of 2022, due to significantly lower net revenues in Equities intermediation across both derivatives and cash products. Net revenues in Equities financing were significantly higher, primarily reflecting increased spreads.

 

Net revenues in Other were $(81) million, compared with $(51) million for the first quarter of 2022.

  

 

Global Banking & Markets

 

 

 

$8.44 billion

 

 

Advisory

  

$ 818 million 

 

Equity underwriting

  

$ 255 million 

 

Debt underwriting

  

$ 506 million 

 

Investment banking fees

  

$ 1.58 billion 

 

 

FICC intermediation

  

$ 3.28 billion 

 

FICC financing

  

$ 651 million 

 

FICC

  

$ 3.93 billion 

 

 

Equities intermediation

  

$ 1.74 billion 

 

Equities financing

  

$ 1.27 billion 

 

Equities

  

$ 3.02 billion 

 

 

Other

  

$ (81) million 

   
   
   
   
   
   
   
      

 

   Asset & Wealth Management  

 

       

 

Net revenues in Asset & Wealth Management were $3.22 billion for the first quarter of 2023, 24% higher than the first quarter of 2022 and 10% lower than the fourth quarter of 2022. The increase compared with the first quarter of 2022 reflected net gains in Equity investments compared with net losses in the prior year period, higher Management and other fees and higher net revenues in Debt investments. Net revenues in Private banking and lending included a loss of approximately $470 million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale (largely offset by a related reserve reduction of approximately $440 million in provision for credit losses).

 

The increase in Equity investments net revenues reflected mark-to-market net gains from investments in public equities compared with significant mark-to-market net losses in the prior year period, partially offset by significantly lower net gains from investments in private equities. The increase in Management and other fees primarily reflected the inclusion of NN Investment Partners (NNIP) and a reduction in fee waivers on money market funds. The increase in Debt investments net revenues reflected net mark-ups compared with net mark-downs in the prior year period. Net revenues in Private banking and lending were significantly lower, due to the loss related to the Marcus loans portfolio, partially offset by the impact of higher deposit spreads. Incentive fees were also lower.

  

 

    Asset & Wealth Management    

 

 

 

$3.22 billion

 

 

 

Management and   other fees

  

 

$  2.28 billion 

 

Incentive fees

  

$    53 million 

 

Private banking and   lending

  

$  354 million 

 

Equity investments

  

$   119 million 

 

Debt investments

  

$  408 million 

   
   
   
   
   
   
   
   
   
   
   

3      

 

Goldman Sachs Reports

First Quarter 2023 Earnings Results

 

 

      

 

   Platform Solutions  

 

       

 

Net revenues in Platform Solutions were $564 million for the first quarter of 2023, 110% higher than the first quarter of 2022 and 10% higher than the fourth quarter of 2022. The increase compared with the first quarter of 2022 reflected significantly higher net revenues in Consumer platforms.

 

The increase in Consumer platforms net revenues primarily reflected significantly higher average credit card balances. Transaction banking and other net revenues were also higher, reflecting higher average deposit balances.

    

 

Platform Solutions

 

   

 

$564 million

 

   

 

 

Consumer platforms

   $ 490  million  
   

Transaction banking

  and other

 

  

$   74 million  

 

     

 

 

Provision for Credit Losses

 

 

Provision for credit losses was a net benefit of $171 million for the first quarter of 2023, compared with net provisions of $561 million for the first quarter of 2022 and $972 million for the fourth quarter of 2022. The net benefit for the first quarter of 2023 reflected a reserve reduction of approximately $440 million related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale, partially offset by net provisions related to the credit card and point-of-sale loan portfolios, reflecting net charge-offs and growth, and a provision related to a term deposit. Provisions for the first quarter of 2022 primarily reflected growth in the credit card portfolio, the impact of macroeconomic and geopolitical concerns, and individual impairments on wholesale loans.

    

 

      Provision for Credit Losses      

   

 

$(171) million

 

     
     
     
     
     
     
     
     

 

 

Operating Expenses

 

 

Operating expenses were $8.40 billion for the first quarter of 2023, 9% higher than the first quarter of 2022 and 4% higher than the fourth quarter of 2022. The firm’s efficiency ratio3 for the first quarter of 2023 was 68.7%, compared with 59.7% for the first quarter of 2022.

 

The increase in operating expenses compared with the first quarter of 2022 was due to impairments of approximately $355 million related to consolidated real estate investments (in depreciation and amortization), the inclusion of NNIP and higher technology and transaction based expenses.

 

Net provisions for litigation and regulatory proceedings for the first quarter of 2023 were $72 million compared with $125 million for the first quarter of 2022.

 

Headcount decreased 6% compared with the end of 2022, primarily reflecting a headcount reduction initiative during the quarter.

 

    

 

          Operating Expenses              

   

 

$8.40 billion

 

     
     
   

 

                Efficiency Ratio                 

   

 

68.7%

 

     
     
     
     
     
     
     

4      

 

 

Goldman Sachs Reports

First Quarter 2023 Earnings Results

 

 

Provision for Taxes

 

 

The effective income tax rate for the first quarter of 2023 was 19.0%, up from the full year rate of 16.5% for 2022, primarily due to the impact of an increase in taxes on non-U.S. earnings and decreases in permanent tax benefits, partially offset by the impact of tax benefits on the settlement of employee share-based awards for the first quarter of 2023 compared with the full year of 2022.

      

 

              Effective Tax Rate               

 

   

 

19.0%

 

   
   
   
   

 

Other Matters

 

 

 

◾ On April 14, 2023, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $2.50 per common share to be paid on June 29, 2023 to common shareholders of record on June 1, 2023.

 

◾ During the quarter, the firm returned $3.41 billion of capital to common shareholders, including $2.55 billion of common share repurchases (7.1 million shares at an average cost of $359.77) and $868 million of common stock dividends.3

 

◾ Global core liquid assets3 averaged $399 billion4 for the first quarter of 2023, compared with an average of $409 billion for the fourth quarter of 2022.

      

 

Declared Quarterly

Dividend Per Common Share

 

 

 

$2.50

 

 
 

 

Common Share Repurchases

 

 

 

7.1 million shares

for $2.55 billion

 

   
   

 

Average GCLA

 

   

 

$399 billion

 

   
   
   
   

5      

 

Goldman Sachs Reports

First Quarter 2023 Earnings Results

 

 

The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

 

          

 

   Cautionary Note Regarding Forward-Looking Statements  

 

    

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the firm’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the firm’s control. It is possible that the firm’s actual results, financial condition and liquidity may differ, possibly materially, from the anticipated results, financial condition and liquidity in these forward-looking statements. For information about some of the risks and important factors that could affect the firm’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2022.

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 fees 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 fees, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2022.

 

          

 

   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 1-888-205-6786 (in the U.S.) or 1-323-794-2558 (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 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 [email protected].

6      

 

Goldman Sachs Reports

First Quarter 2023 Earnings Results

 

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions

 

     
     THREE MONTHS ENDED           % CHANGE FROM  
         
     MARCH 31,
2023		     DECEMBER 31,
2022		     MARCH 31,
2022		              DECEMBER 31,
2022		     MARCH 31,
2022		  

 

GLOBAL BANKING & MARKETS

 

                                          

 

Advisory

 

     $             818          $         1,408          $              1,127                                (42) %                           (27) %  

Equity underwriting

 

    

 

 255   

 

  

 

    

 

 183   

 

  

 

    

 

 276   

 

  

 

      

 

 39     

 

  

 

    

 

 (8)    

 

  

 

Debt underwriting

 

    

 

 506   

 

  

 

    

 

 282   

 

  

 

    

 

 741   

 

  

 

      

 

 

 79     

 

 

  

 

 

     (32)      

Investment banking fees

     1,579          1,873          2,144            (16)           (26)      
                 

FICC intermediation

 

    

 

 3,280   

 

  

 

    

 

 1,974   

 

  

 

    

 

 4,099   

 

  

 

      

 

 66     

 

  

 

    

 

 (20)    

 

  

 

FICC financing

 

    

 

 651   

 

  

 

    

 

 713   

 

  

 

    

 

 631   

 

  

 

      

 

 (9)    

 

  

 

    

 

 3     

 

  

 

FICC

     3,931          2,687          4,730            46            (17)      
                 

Equities intermediation

 

    

 

 1,741   

 

  

 

    

 

 1,109   

 

  

 

    

 

 2,178   

 

  

 

      

 

 57     

 

  

 

    

 

 (20)    

 

  

 

Equities financing

 

    

 

 1,274   

 

  

 

    

 

 964   

 

  

 

    

 

 1,061   

 

  

 

      

 

 32     

 

  

 

    

 

 20     

 

  

 

Equities

     3,015          2,073          3,239            45            (7)      
                 

Other

 

 

    

 

 (81)  

 

  

 

    

 

 (114)  

 

  

 

    

 

 (51)  

 

  

 

      

 

 N.M.     

 

  

 

    

 

 N.M.     

 

  

 

Net revenues

 

 

    

 

 8,444   

 

  

 

    

 

 6,519   

 

  

 

    

 

 10,062   

 

  

 

      

 

 30     

 

  

 

    

 

 (16)    

 

  

 

                 

 

ASSET & WEALTH MANAGEMENT

 

                                          

 

Management and other fees

 

     2,282          2,248          2,035            2            12       

Incentive fees

 

    

 

 53   

 

  

 

    

 

 39   

 

  

 

    

 

 79   

 

  

 

      

 

 36     

 

  

 

    

 

 (33)    

 

  

 

Private banking and lending

 

    

 

 354   

 

  

 

    

 

 753   

 

  

 

    

 

 492   

 

  

 

      

 

 (53)    

 

  

 

     (28)      

Equity investments

 

    

 

 119   

 

  

 

    

 

 287   

 

  

 

    

 

 (294)  

 

  

 

      

 

 (59)    

 

  

 

    

 

 N.M.     

 

  

 

Debt investments

 

    

 

 408   

 

  

 

    

 

 234   

 

  

 

    

 

 291   

 

  

 

      

 

 74     

 

  

 

    

 

 40     

 

  

 

Net revenues

 

    

 

 3,216   

 

  

 

    

 

 3,561   

 

  

 

    

 

 2,603   

 

  

 

      

 

 (10)    

 

  

 

    

 

 24     

 

  

 

                 

 

PLATFORM SOLUTIONS

 

                                          

 

Consumer platforms

     490          433          201            13            144       

Transaction banking and other

 

    

 

 74   

 

  

 

    

 

 80   

 

  

 

    

 

 67   

 

  

 

      

 

 (8)    

 

  

 

    

 

 10     

 

  

 

Net revenues

 

    

 

 564   

 

  

 

    

 

 513   

 

  

 

    

 

 268   

 

  

 

      

 

 10     

 

  

 

    

 

 110     

 

  

 

                 

 

Total net revenues

 

    

 

 $        12,224   

 

  

 

    

 

 $        10,593   

 

  

 

    

 

 $            12,933   

 

  

 

      

 

 15     

 

  

 

    

 

 (5)    

 

  

 

 

Geographic Net Revenues (unaudited)3

 

          
$ in millions            
   
     THREE MONTHS ENDED                    
     
     MARCH 31,
2023		     DECEMBER 31,
2022		     MARCH 31,
2022		                       

 

Americas

 

     $          7,194          $          6,920          $              7,334           

EMEA

 

  

 

 

 

3,584   

 

 

  

 

 

 

2,406   

 

 

  

 

 

 

3,871   

 

 

      

Asia

 

  

 

 

 

 

1,446   

 

 

 

 

  

 

 

 

 

1,267   

 

 

 

 

  

 

 

 

 

1,728   

 

 

 

 

      

Total net revenues

 

    

 

 $        12,224   

 

  

 

    

 

 $        10,593   

 

  

 

    

 

 $            12,933   

 

  

 

      
               

Americas

 

     59%        65%        57%         

EMEA

 

  

 

 

 

29% 

 

 

  

 

 

 

23% 

 

 

  

 

 

 

30% 

 

 

      

Asia

 

  

 

 

 

 

12% 

 

 

 

 

  

 

 

 

 

12% 

 

 

 

 

  

 

 

 

 

13% 

 

 

 

 

      

Total

 

    

 

 100% 

 

  

 

    

 

 100% 

 

  

 

    

 

 100% 

 

  

 

      

 

7

Goldman Sachs Reports

First Quarter 2023 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  
       
     MARCH 31,
2023		        DECEMBER 31,   
2022		        MARCH 31,   
2022		                 DECEMBER 31,   
2022		     MARCH 31,
            2022             		  

 

REVENUES

 

                                          

Investment banking

 

    

 

 $         1,578   

 

  

 

    

 

 $             1,873   

 

  

 

    

 

 $              2,144    

 

  

 

      

 

                     (16) %

 

  

 

    

 

                      (26) %

 

  

 

Investment management

 

    

 

 2,289   

 

  

 

    

 

 2,258   

 

  

 

    

 

 2,070    

 

  

 

      

 

 1     

 

  

 

    

 

 11     

 

  

 

Commissions and fees

 

    

 

 1,088   

 

  

 

    

 

 968   

 

  

 

    

 

 1,003    

 

  

 

      

 

 12     

 

  

 

    

 

 8     

 

  

 

Market making

 

    

 

 5,433   

 

  

 

    

 

 3,051   

 

  

 

    

 

 6,029    

 

  

 

      

 

 78     

 

  

 

    

 

 (10)    

 

  

 

Other principal transactions

 

    

 

 55   

 

  

 

    

 

 369   

 

  

 

    

 

 (140)   

 

  

 

      

 

 (85)    

 

  

 

    

 

 N.M.    

 

  

 

Total non-interest revenues

 

    

 

 10,443   

 

  

 

    

 

 8,519   

 

  

 

    

 

 11,106    

 

  

 

      

 

 23     

 

  

 

    

 

 (6)    

 

  

 

                 

Interest income

 

    

 

 14,938   

 

  

 

    

 

 12,411   

 

  

 

    

 

 3,212    

 

  

 

      

 

 20     

 

  

 

    

 

 365     

 

  

 

Interest expense

 

    

 

 13,157   

 

  

 

    

 

 10,337   

 

  

 

    

 

 1,385    

 

  

 

      

 

 27     

 

  

 

    

 

 850     

 

  

 

Net interest income

 

    

 

 1,781   

 

  

 

    

 

 2,074   

 

  

 

    

 

 1,827    

 

  

 

      

 

 (14)    

 

  

 

    

 

 (3)    

 

  

 

                 

 

Total net revenues

 

    

 

 12,224   

 

  

 

    

 

 10,593   

 

  

 

    

 

 12,933    

 

  

 

      

 

 15     

 

  

 

    

 

 (5)    

 

  

 

                 

 

Provision for credit losses

 

    

 

 (171)  

 

  

 

    

 

 972   

 

  

 

    

 

 561    

 

  

 

      

 

 N.M.      

 

  

 

    

 

 N.M.     

 

  

 

                 

 

OPERATING EXPENSES

 

                                          

Compensation and benefits

 

    

 

 4,090   

 

  

 

    

 

 3,764   

 

  

 

    

 

 4,083    

 

  

 

      

 

 9     

 

  

 

    

 

 –     

 

  

 

Transaction based

 

    

 

 1,405   

 

  

 

    

 

 1,434   

 

  

 

    

 

 1,244    

 

  

 

      

 

 (2)    

 

  

 

    

 

 13     

 

  

 

Market development

 

    

 

 172   

 

  

 

    

 

 216   

 

  

 

    

 

 162    

 

  

 

      

 

 (20)    

 

  

 

    

 

 6     

 

  

 

Communications and technology

 

    

 

 466   

 

  

 

    

 

 481   

 

  

 

    

 

 424    

 

  

 

      

 

 (3)    

 

  

 

    

 

 10     

 

  

 

Depreciation and amortization

 

    

 

 970   

 

  

 

    

 

 727   

 

  

 

    

 

 492    

 

  

 

      

 

 33     

 

  

 

    

 

 97     

 

  

 

Occupancy

 

    

 

 265   

 

  

 

    

 

 261   

 

  

 

    

 

 251    

 

  

 

      

 

 2     

 

  

 

    

 

 6     

 

  

 

Professional fees

 

    

 

 383   

 

  

 

    

 

 495   

 

  

 

    

 

 437    

 

  

 

      

 

 (23)    

 

  

 

    

 

 (12)    

 

  

 

Other expenses

 

    

 

 651   

 

  

 

    

 

 713   

 

  

 

    

 

 623    

 

  

 

      

 

 (9)    

 

  

 

    

 

 4     

 

  

 

Total operating expenses

 

    

 

 8,402   

 

  

 

    

 

 8,091   

 

  

 

    

 

 7,716    

 

  

 

      

 

 4     

 

  

 

    

 

 9     

 

  

 

                 

Pre-tax earnings

 

    

 

 3,993   

 

  

 

    

 

 1,530   

 

  

 

    

 

 4,656    

 

  

 

      

 

 161     

 

  

 

    

 

 (14)    

 

  

 

Provision for taxes

 

    

 

 759   

 

  

 

    

 

 204   

 

  

 

    

 

 717    

 

  

 

      

 

 272     

 

  

 

    

 

 6     

 

  

 

 

Net earnings

 

    

 

 3,234   

 

  

 

    

 

 1,326   

 

  

 

    

 

 3,939    

 

  

 

      

 

 144     

 

  

 

     (18)      

Preferred stock dividends

 

    

 

 147   

 

  

 

    

 

 141   

 

  

 

    

 

 108    

 

  

 

      

 

 4     

 

  

 

    

 

 36     

 

  

 

Net earnings applicable to common shareholders

 

    

 

 $         3,087   

 

  

 

    

 

 $             1,185   

 

  

 

    

 

 $              3,831    

 

  

 

      

 

 161     

 

  

 

    

 

 (19)    

 

  

 

                 

 

EARNINGS PER COMMON SHARE

 

                                          

Basic3

 

    

 

 $           8.87   

 

  

 

    

 

 $               3.35   

 

  

 

    

 

 $              10.87    

 

  

 

      

 

 165 % 

 

  

 

    

 

 (18) %

 

  

 

Diluted

 

    

 

 $           8.79   

 

  

 

    

 

 $               3.32   

 

  

 

    

 

 $              10.76    

 

  

 

      

 

 165     

 

  

 

    

 

 (18)    

 

  

 

                 

 

AVERAGE COMMON SHARES

 

                                          

Basic

 

    

 

 346.6   

 

  

 

    

 

 349.5   

 

  

 

    

 

 351.2    

 

  

 

      

 

 (1)    

 

  

 

    

 

 (1)    

 

  

 

Diluted

 

    

 

 351.3   

 

  

 

    

 

 356.7   

 

  

 

    

 

 355.9    

 

  

 

      

 

 (2)    

 

  

 

    

 

 (1)    

 

  

 

                 

 

SELECTED DATA AT PERIOD-END

 

                                          

Common shareholders’ equity

 

    

 

 $       106,806   

 

  

 

    

 

 $         106,486   

 

  

 

    

 

 $          104,536    

 

  

 

      

 

 –     

 

  

 

    

 

 2     

 

  

 

Basic shares3

 

    

 

 344.0   

 

  

 

    

 

 350.8   

 

  

 

    

 

 356.4    

 

  

 

      

 

 (2)    

 

  

 

    

 

 (3)    

 

  

 

Book value per common share

 

    

 

 $         310.48   

 

  

 

    

 

 $           303.55   

 

  

 

    

 

 $            293.31    

 

  

 

      

 

 2     

 

  

 

    

 

 6     

 

  

 

                 

Headcount

 

    

 

 45,400   

 

  

 

    

 

 48,500   

 

  

 

    

 

 45,100    

 

  

 

      

 

 (6)    

 

  

 

    

 

 1     

 

  

 

 

8

Goldman Sachs Reports

First Quarter 2023 Earnings Results

 

The Goldman Sachs Group, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)4

$ in billions

 

   
     AS OF                     
   
     MARCH 31,
2023		     DECEMBER 31,
2022		                                                                              

 

ASSETS

 

                        

 

Cash and cash equivalents

 

     $                229         $                242            

Collateralized agreements

 

     405         414            

Customer and other receivables

 

     145         136            

Trading assets

 

     407         301            

Investments

 

     132         131            

Loans

 

     178         179            

Other assets

 

    

 

 42  

 

  

 

    

 

 39  

 

  

 

        

Total assets

 

    

 

 $          1,538  

 

  

 

    

 

 $          1,442  

 

  

 

        
               

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

                        

 

Deposits

 

     $                375         $                387            

Collateralized financings

 

     263         155            

Customer and other payables

 

     266         262            

Trading liabilities

 

     194         191            

Unsecured short-term borrowings

 

     65         61            

Unsecured long-term borrowings

 

     241         247            

Other liabilities

 

    

 

 17  

 

  

 

    

 

 22  

 

  

 

        

Total liabilities

 

    

 

 1,421  

 

  

 

    

 

 1,325  

 

  

 

        

 

Shareholders’ equity

 

    

 

 117  

 

  

 

    

 

 117  

 

  

 

        

 

Total liabilities and shareholders’ equity

 

    

 

 $          1,538  

 

  

 

    

 

 $          1,442  

 

  

 

        

 

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

$ in billions

 

 

 

        
   
     AS OF                     
   
     MARCH 31,
2023		     DECEMBER 31,
2022		                  

 

Common equity tier 1 capital

     $            98.1         $            98.1            
               

 

STANDARDIZED CAPITAL RULES

 

                        

 

Risk-weighted assets

 

    

 

 $                661  

 

  

 

    

 

 $                 653  

 

  

 

        

Common equity tier 1 capital ratio

     14.8%       15.0%          
               

 

ADVANCED CAPITAL RULES

 

                        

 

Risk-weighted assets

 

    

 

 $                678  

 

  

 

    

 

 $                 679  

 

  

 

        

Common equity tier 1 capital ratio

     14.5%       14.4%          
               

 

SUPPLEMENTARY LEVERAGE RATIO

 

                        

 

Supplementary leverage ratio

 

     5.8%       5.8%          

 

Average Daily VaR (unaudited)3,4,5

$ in millions

 

 

 

        
   
     THREE MONTHS ENDED                   
   
     MARCH 31,
2023		     DECEMBER 31,
2022		                  

 

RISK CATEGORIES

 

                        

 

Interest rates

 

     $                  92         $                  95            

Equity prices

 

     28         30            

Currency rates

 

     32         41            

Commodity prices

 

     22         28            

Diversification effect

 

 

     (73)        (92)           

Total

 

     $                 101         $                 102            

 

9

Goldman Sachs Reports

First Quarter 2023 Earnings Results

 

The Goldman Sachs Group, Inc. and Subsidiaries

Assets Under Supervision (unaudited)3,4

$ in billions

 

   
     AS OF                     
   
     MARCH 31,
2023		    

DECEMBER 31,

2022

     MARCH 31,
2022		                                                                                          

 

ASSET CLASS

 

                                

 

Alternative investments

     $                268         $                263         $                240            

 

Equity

     597         563         592            

 

Fixed income

     1,047         1,010         887            

 

Total long-term AUS

 

  

 

 

 

 

1,912  

 

 

 

 

  

 

 

 

 

1,836  

 

 

 

 

  

 

 

 

 

1,719  

 

 

 

 

        

 

Liquidity products

 

     760         711         675            

 

Total AUS

 

  

 

 

 

 

$          2,672  

 

 

 

 

  

 

 

 

 

$          2,547  

 

 

 

 

  

 

 

 

 

$          2,394  

 

 

 

 

        
       
   
     THREE MONTHS ENDED                   
   
     MARCH 31,
2023		    

DECEMBER 31,

2022

     MARCH 31,
2022		                  

 

Beginning balance

    

 

 $          2,547  

 

  

 

    

 

 $          2,427  

 

  

 

    

 

 $          2,470  

 

  

 

        

 

Net inflows / (outflows):

                

 

Alternative investments

     1         3         5            

 

Equity

     (2)        –         14            

 

Fixed income

     9         19         (2)           

 

Total long-term AUS net inflows / (outflows)

 

  

 

 

 

 

8  

 

 

 

 

  

 

 

 

 

22  

 

 

 

 

  

 

 

 

 

17  

 

 

 

 

        

 

Liquidity products

 

    

 

 49  

 

  

 

    

 

 11  

 

  

 

    

 

 (6)  

 

  

 

        

 

Total AUS net inflows / (outflows)

 

  

 

 

 

 

57  

 

 

 

 

  

 

 

 

 

33  

 

 

 

 

  

 

 

 

 

11  

 

 

 

 

        

 

Acquisitions / (dispositions)

 

    

 

 –  

 

  

 

    

 

 –  

 

  

 

    

 

 7  

 

  

 

        

Net market appreciation / (depreciation)

     68         87         (94)           

 

 

Ending balance

 

  

 

 

 

 

$          2,672  

 

 

 

 

  

 

 

 

 

$          2,547  

 

 

 

 

  

 

 

 

 

$          2,394  

 

 

 

 

        

 

 

10

Goldman Sachs Reports

First Quarter 2023 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 

MARCH 31, 2023

        

Total shareholders’ equity

 

     $            116,819               

Preferred stock

 

    

 

 (10,703)

 

  

 

            

Common shareholders’ equity

 

    

 

 106,116 

 

  

 

  

Goodwill

    

 

 (6,392)

 

  

 

  

Identifiable intangible assets

 

    

 

 (1,985)

 

  

 

  

Tangible common shareholders’ equity

 

    

 

 $               97,739 

 

  

 

  

 

  2.

Dealogic – January 1, 2023 through March 31, 2023.

 

 

  3.

For information about the following items, see the referenced sections in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the firm’s Annual Report on Form 10-K for the year ended December 31, 2022: (i) Investment banking fees backlog – see “Results of Operations – Global Banking & Markets” (ii) assets under supervision – see “Results of Operations – Asset & Wealth Management – 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, including changes made to the firm’s segments and reclassifications made to previously reported amounts, see the referenced sections in Part II, Item 8 “Financial Statements and Supplementary Data” in the firm’s Annual Report on Form 10-K for the year ended December 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 first quarter of 2023 and may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended March 31, 2023.

 

 

  5.

During the first quarter of 2023, the firm added the currency exposure on certain debt and equity positions to VaR and removed certain debt and equity positions (and related hedges) from VaR as management believes that the risk of these positions is more appropriately measured and monitored using 10% sensitivity measures. Prior period amounts for average daily VaR have been conformed to the current presentation. The impact of such changes was not material. See “Risk Management – Market Risk Management” in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the firm’s Annual Report on Form 10-K for the year ended December 31, 2022 for further information about VaR and 10% sensitivity measures.            

 

11      

 

Exhibit 99.2 First Quarter 2023 Earnings Results Presentation April 18, 2023

Results Snapshot Net Revenues Net Earnings EPS 1Q23 $12.22 billion 1Q23 $3.23 billion 1Q23 $8.79 1 1 Annualized ROE Annualized ROTE Book Value Per Share 1Q23 11.6% 1Q23 12.6% 1Q23 $310.48 (+2.3% YTD) Highlights 2 3,4 #1 in completed M&A Record AUS of $2.67 trillion Strong net revenues in FICC and Equities, Record Management and other fees of $2.28 billion Record Equities financing net revenues 1

Financial Overview Financial Results Financial Overview Highlights n 1Q23 results included EPS of $8.79 and ROE of 11.6% vs. vs. $ in millions, — 1Q23 net revenues were slightly lower YoY except per share amounts 1Q23 4Q22 1Q22 o Lower net revenues in Global Banking & Markets $ 8,444 30% (16)% Global Banking & Markets o Partially offset by significantly higher net revenues in Asset & Wealth Management and Platform Solutions Asset & Wealth Management 3,216 (10)% 24% — 1Q23 provision for credit losses was a net benefit of $171 million 564 10% 110% Platform Solutions o Reflecting a reserve reduction related to a partial sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale 12,224 15% (5)% Net revenues o Partially offset by net provisions related to the credit card and point-of-sale loan portfolios, reflecting net charge-offs and growth, and a provision related to a term deposit (171) N.M. N.M. Provision for credit losses — 1Q23 operating expenses were higher YoY, reflecting higher non-compensation expenses 8,402 4% 9% Operating expenses Net Revenues by Segment ($ in millions) $ 3,993 161% (14)% Pre-tax earnings $12,933 $12,224 $ 3,234 144% (18)% Net earnings $10,593 $ 3,087 161% (19)% Net earnings to common Global Banking & Markets Diluted EPS $ 8.79 165% (18)% $8,444 $10,062 $6,519 Asset & Wealth 1 ROE 11.6% 7.2pp (3.4)pp Management 1 Platform ROTE 12.6% 7.8pp (3.2)pp Solutions 3 $3,561 68.7% (7.7)pp 9.0pp $3,216 Efficiency Ratio $2,603 $564 $513 $268 2 1Q23 4Q22 1Q22

Global Banking & Markets Financial Results Global Banking & Markets Highlights n 1Q23 net revenues were lower YoY compared to a strong 1Q22 vs. vs. — Investment banking fees primarily reflected significantly lower net revenues in Advisory and $ in millions 1Q23 4Q22 1Q22 Debt underwriting Investment banking fees $ 1,579 (16)% (26)% — FICC reflected significantly lower net revenues in intermediation — Equities reflected significantly lower net revenues in intermediation, partially offset by FICC 3,931 46% (17)% significantly higher net revenues in financing 3 n Investment banking fees backlog decreased QoQ, primarily in Advisory 3,015 45% (7)% Equities 4 n 1Q23 select data : (81) N.M. N.M. Other — Total assets of $1.28 trillion — Loan balance of $109 billion 8,444 30% (16)% Net revenues — Net interest income of $347 million 129 N.M. (32)% Provision for credit losses Global Banking & Markets Net Revenues ($ in millions) Operating expenses 4,629 10% (7)% $10,062 Pre-tax earnings $ 3,686 61% (25)% $8,444 $2,144 Investment Net earnings $ 2,986 52% (28)% banking fees $1,579 $6,519 FICC Net earnings to common $ 2,876 55% (29)% $1,873 $4,730 Equities $3,931 Average common equity $ 69,497 (2)% 2% Other $2,687 Return on average common equity 16.6% 6.1pp (7.3)pp $3,239 $3,015 $2,073 $(81) $(114) $(51) 3 1Q23 4Q22 1Q22

Global Banking & Markets – Net Revenues Net Revenues Global Banking & Markets Net Revenues Highlights n 1Q23 Investment banking fees were significantly lower YoY vs. vs. — Advisory reflected a significant decline in industry-wide completed mergers and acquisitions $ in millions 1Q23 4Q22 1Q22 transactions Advisory $ 818 (42)% (27)% — Debt underwriting reflected a decline in industry-wide volumes n 1Q23 FICC net revenues were lower YoY compared with a strong 1Q22 Equity underwriting 255 39% (8)% — FICC intermediation reflected significantly lower net revenues in currencies and commodities, partially offset by significantly higher net revenues in interest rate products and higher net 506 79% (32)% Debt underwriting revenues in mortgages and credit products — FICC financing was slightly higher 1,579 (16)% (26)% Investment banking fees n 1Q23 Equities net revenues were lower YoY compared with a strong 1Q22 3,280 66% (20)% FICC intermediation — Equities intermediation reflected significantly lower net revenues across both derivatives and cash products 651 (9)% 3% FICC financing — Equities financing primarily reflected increased spreads FICC 3,931 46% (17)% Equities intermediation 1,741 57% (20)% Equities financing 1,274 32% 20% Equities 3,015 45% (7)% Other (81) N.M. N.M. Net revenues $ 8,444 30% (16)% 4

Asset & Wealth Management Financial Results Asset & Wealth Management Highlights n 1Q23 net revenues were significantly higher YoY vs. vs. — Management and other fees primarily reflected the inclusion of NN Investment Partners $ in millions 1Q23 4Q22 1Q22 (NNIP) and a reduction in fee waivers on money market funds — Private banking and lending included a loss of ~$470 million related to a partial sale of the $ 2,282 2% 12% Management and other fees Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale, partially offset by the impact of higher deposit spreads 53 36% (33)% — Equity investments reflected mark-to-market net gains from investments in public equities Incentive fees compared with significant mark-to-market net losses in 1Q22, partially offset by significantly lower net gains from investments in private equities 354 (53)% (28)% Private banking and lending o Public: 1Q23 ~$85 million, compared to 1Q22 ~$(560) million o Private: 1Q23 ~$35 million, compared to 1Q22 ~$265 million 119 (59)% N.M. Equity investments — Debt investments reflected net mark-ups compared with net mark-downs in 1Q22 n 1Q23 provision for credit losses reflected a reserve reduction of ~$440 million related to a partial Debt investments 408 74% 40% sale of the Marcus loans portfolio and the transfer of the remainder of the portfolio to held for sale 4 n 1Q23 select data : — Total assets of $201 billion Net revenues 3,216 (10)% 24% — Loan balance of $53 billion, of which $36 billion related to Private banking and lending — Private bank and direct-to-consumer deposits of $219 billion Provision for credit losses (565) N.M. N.M. — Net interest income of $886 million Operating expenses 3,168 (6)% 32% Asset & Wealth Management Net Revenues ($ in millions) $3,561 Pre-tax earnings $ 613 N.M. N.M. $3,216 Management $2,603 and other fees Net earnings $ 496 N.M. N.M. Incentive $2,248 fees Net earnings to common $ 464 N.M. N.M. $2,282 Private banking $2,035 and lending Average common equity $ 32,684 – 5% Equity $39 investments $53 $753 $79 Debt $354 Return on average common equity 5.7% 5.8pp 6.1pp $492 investments $119 $287 $408 $291 $234 $(294) 5 1Q23 4Q22 1Q22

Assets Under Supervision 3,4 3,4 AUS Rollforward AUS Highlights n During the quarter, AUS increased $125 billion to a record $2.67 trillion $ in billions 1Q23 4Q22 1Q22 — Net market appreciation of $68 billion, primarily in equity and fixed income assets Beginning balance $ 2,547 $ 2,427 $ 2,470 — Liquidity products net inflows of $49 billion 8 22 17 Long-term AUS net inflows / (outflows) — Long-term net inflows of $8 billion, driven by net inflows in fixed income assets Liquidity products 49 11 (6) Total AUS net inflows / (outflows) 57 33 11 Acquisitions / (dispositions) – – 7 3,4 1Q23 AUS Mix Net market appreciation / (depreciation) 68 87 (94) 10% $ 2,672 $ 2,547 $ 2,394 Ending balance 28% 39% 37% 22% Asset Client 3,4 Class Channel AUS by Asset Class $ in billions 1Q23 4Q22 1Q22 29% 35% $ 268 $ 263 $ 240 Alternative investments Equity 597 563 592 7% 12% Fixed income 1,047 1,010 887 Long-term AUS 1,912 1,836 1,719 22% Liquidity products 760 711 675 54% Region Vehicle 34% $ 2,672 $ 2,547 $ 2,394 Total AUS 71% 6

Asset & Wealth Management – Alternative Investments 4 4 Alternative Investments AUS and Effective Fees Alternative Investments Highlights n 1Q23 Management and other fees from alternative investments were $494 million, up 21% compared with 1Q22 1Q23 n During the quarter, alternative investments AUS increased $5 billion to $268 billion $ in billions Average AUS Effective Fees (bps) 95 84 Corporate equity $n 1Q23 gross third-party alternatives fundraising across strategies was $14 billion, including: Credit 44 77 — $4 billion in corporate equity, $4 billion in credit, $2 billion in real estate and $4 billion in hedge funds and other Real estate 20 71 — $193 billion raised since the end of 2019 Hedge funds and other 65 61 n During the quarter, on-balance sheet alternative investments declined by $2.1 billion to $56.5 Funds and discretionary accounts 224 75 billion Advisory accounts 41 16 — Historical principal investments declined by $2.3 billion to $27.4 billion and included $5.6 Total alternative investments AUS $ 265 66 billion of equity securities, $6.9 billion of loans, $4.9 billion of debt securities and $10.0 billion of CIE investments and other 4 4,6 On-Balance Sheet Alternative Investments Historical Principal Investments Rollforward ($ in billions) $ in billions 1Q23 4Q22 $0.5 $(2.7) $(0.1) $29.7 Equity securities $ 14.7 $ 14.5 19.0 Loans 17.3 $27.4 12.3 Debt securities 12.3 5 CIE investments and other 12.4 12.6 Total On-B/S alternative investments $ $ 56.5 58.6 Client co-invest $ 22.8 $ 23.0 Firmwide initiatives / CRA investments 6.3 5.9 6 Historical principal investments 27.4 29.7 Total On-B/S alternative investments $ 56.5 $ 58.6 YE22 Net mark-ups Additions Dispositions 1Q23 7 7 / (mark-downs) / Paydowns

Platform Solutions Financial Results Platform Solutions Highlights n 1Q23 net revenues more than doubled YoY vs. vs. — Consumer platforms primarily reflected significantly higher average credit card balances $ in millions 1Q23 4Q22 1Q22 — Transaction banking and other reflected higher average deposit balances $ 490 13% 144% Consumer platforms n 1Q23 provision for credit losses reflected net charge-offs related to the credit card portfolio and growth in the point-of-sale loan portfolio, partially offset by modeled reserve releases 74 (8)% 10% Transaction banking and other 4 n 1Q23 select data : Net revenues 564 10% 110% — Total assets of $59 billion — Loan balance of $16 billion 265 (66)% 59% Provision for credit losses — Net interest income of $548 million 605 20% 81% Operating expenses — Active Consumer platforms customers of 13.8 million — Transaction banking deposits of $71 billion Pre-tax earnings / (loss) $ (306) N.M. N.M. Platform Solutions Net Revenues ($ in millions) Net earnings / (loss) $ (248) N.M. N.M. $564 Net earnings / (loss) to common $ (253) N.M. N.M. $513 Average common equity $ 3,935 (3)% 41% Consumer Return on average common equity (25.7)% 39.5pp 2.9pp platforms $490 $268 $433 Transaction banking and other $201 $80 $74 $67 8 1Q23 4Q22 1Q22

Loans and Net Interest Income 4 4 Loans by Segment ($ in billions) Loans by Type 1Q23 Metrics $ in billions 1Q23 4Q22 1Q22 3.0% $178 $179 $166 ALLL to Total Corporate $ 40 $ 40 $ 39 Gross Loans, at Amortized Cost Commercial real estate 29 29 32 Global Banking Residential real estate 22 23 24 & Markets 1.7% $99 $109 $108 ALLL to Gross Securities-based lending 16 17 17 Wholesale Loans, at Asset & Wealth Other collateralized lending 53 52 40 Amortized Cost Management Installment 6 6 4 13.1% Platform ALLL to Gross Credit cards Solutions 15 16 11 Consumer Loans, at $53 $56 $57 Other 2 2 3 Amortized Cost Allowance for loan losses (5) (6) (4) ~80% $16 $15 $10 Gross Loans Total loans $ 178 $ 179 $ 166 Secured 1Q23 4Q22 1Q22 4 Net Interest Income by Segment ($ in millions) Loans and Net Interest Income Highlights n 1Q23 total loans were essentially unchanged QoQ — Gross loans by type: $170 billion - amortized cost, $7 billion - fair value, $6 billion - held for sale $2,074 — Average loans of $179 billion $1,827 $1,781 — Total allowance for loan losses and losses on lending commitments was $5.78 billion ($5.03 billion $633 for funded loans) Global Banking $347 & Markets o $3.25 billion for wholesale loans, $2.53 billion for consumer loans $698 — Net charge-offs of $258 million for an annualized net charge-off rate of 0.6% Asset & Wealth Management o 0.0% for wholesale loans, 4.6% for consumer loans $886 $928 n 1Q23 net interest income decreased 3% YoY, reflecting an increase in funding costs supporting trading Platform $802 activities, partially offset by higher loan balances Solutions 3 — 1Q23 average interest-earning assets of $1.39 trillion $548 $513 $327 9 1Q23 4Q22 1Q22

Expenses Financial Results Expense Highlights n 1Q23 total operating expenses increased YoY vs. vs. — Non-compensation expenses were higher, reflecting: 1Q23 4Q22 1Q22 $ in millions o Impairments of ~$355 million related to consolidated real estate investments (in depreciation and amortization) Compensation and benefits $ 4,090 9% – o Inclusion of NNIP Transaction based 1,405 (2)% 13% o Higher technology expenses o Higher transaction based expenses 172 (20)% 6% Market development n The effective income tax rate for 1Q23 was 19.0%, up from the full year rate of 16.5% for 2022, primarily due to the impact of an increase in taxes on non-U.S. earnings and decreases in permanent tax benefits, partially offset by the impact of tax benefits on the settlement of Communications and technology 466 (3)% 10% employee share-based awards for 1Q23 compared with 2022 970 33% 97% Depreciation and amortization 3 Efficiency Ratio Occupancy 265 2% 6% 68.7% Professional fees 383 (23)% (12)% 59.7% 651 (9)% 4% Other expenses Total operating expenses $ 8,402 4% 9% 759 272% 6% Provision for taxes $ Effective Tax Rate 19.0% 10 1Q23 1Q22

Capital and Balance Sheet 3,4 3,4 Capital Capital and Balance Sheet Highlights n Standardized CET1 capital ratio decreased QoQ 1Q23 4Q22 1Q22 — Increase in credit RWAs driven by increased exposures 8 15.0%n Advanced CET1 capital ratio increased QoQ Standardized CET1 capital ratio 14.8% 14.4% — Decrease in both market and credit RWAs driven by reduced exposures 8 Advanced CET1 capital ratio 14.4% 14.5% 14.6% n Returned $3.41 billion of capital to common shareholders during the quarter 3 — 7.1 million common shares repurchased for a total cost of $2.55 billion Supplementary leverage ratio (SLR) 5.8% 5.8% 5.6% — $868 million of common stock dividends n Deposits decreased $12 billion QoQ, primarily reflecting a decrease in private bank deposits, partially offset by an increase in direct-to-consumer deposits n BVPS increased 2.3% QoQ, driven by net earnings 4 Selected Balance Sheet Data Book Value $ in billions In millions, except per share amounts 1Q23 4Q22 1Q22 1Q23 4Q22 1Q22 3 Total assets Basic shares 344.0 350.8 356.4 $ 1,538 $ 1,442 $ 1, 589 Deposits Book value per common share $ 310.48 $ 303.55 $ 293.31 $ 375 $ 387 $ 387 1 Unsecured long-term borrowings Tangible book value per common share $ 286.05 $ 279.66 $ 275.13 $ 241 $ 247 $ 258 Shareholders’ equity $ 117 $ 117 $ 115 3 Average GCLA $ 399 $ 409 $ 375 11

Cautionary Note Regarding Forward-Looking Statements This presentation 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 and the forward-looking statements below, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2022. Information regarding the firm’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio, balance sheet data and global core liquid assets (GCLA) 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 regarding (i) estimated GDP growth or contraction, interest rate and inflation trends and volatility, (ii) the impact of the COVID-19 pandemic on the firm’s business, results, financial position and liquidity, (iii) the timing, profitability, benefits and other prospective aspects of business initiatives, business realignment and the achievability of medium- and long- term targets and goals, (iv) the future state of the firm’s liquidity and regulatory capital ratios (including the firm’s stress capital buffer and G-SIB buffer), (v) the firm’s prospective capital distributions (including dividends and repurchases), (vi) the firm’s future effective income tax rate, (vii) the firm’s Investment banking fees backlog and future results, (viii) the firm’s planned 2023 benchmark debt issuances, and (ix) the impact of Russia’s invasion of Ukraine and related sanctions and other developments on the firm’s business, results and financial position, are forward-looking statements. Statements regarding estimated GDP growth or contraction, interest rate and inflation trends and volatility are subject to the risk that actual GDP growth or contraction, interest rate and inflation trends and volatility may differ, possibly materially, due to, among other things, changes in general economic conditions and monetary and fiscal policy. Statements about the effects of the COVID-19 pandemic on the firm’s business, results, financial position and liquidity are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Statements about the timing, profitability, benefits and other prospective aspects of business initiatives, business realignment and the achievability of medium- and long-term targets and goals are based on the firm’s current expectations regarding the firm’s ability to effectively implement these initiatives and realignment and achieve these targets and goals and may change, possibly materially, from what is currently expected. Statements about the future state of the firm’s liquidity and regulatory capital ratios (including the firm’s stress capital buffer and G-SIB buffer), as well as its prospective capital distributions, are subject to the risk that the firm’s actual liquidity, regulatory capital ratios and capital distributions may differ, possibly materially, from what is currently expected. Statements about the firm’s future effective income tax rate are subject to the risk that the firm’s future effective income tax rate may differ from the anticipated rate indicated, possibly materially, due to, among other things, changes in the tax rates applicable to the firm, the firm’s earnings mix or profitability, the entities in which the firm generates profits and the assumptions made in forecasting the firm’s expected tax rate, and potential future guidance from the U.S. IRS. Statements about the firm’s Investment banking fees backlog and future results 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. Statements regarding the firm’s planned 2023 benchmark debt issuances are subject to the risk that actual issuances may differ, possibly materially, due to changes in market conditions, business opportunities or the firm’s funding needs. Statements about the impact of Russia’s invasion of Ukraine and related sanctions and other developments on the firm’s business, results and financial position are subject to the risks that hostilities may escalate and expand, that sanctions may increase and that the actual impact may differ, possibly materially, from what is currently expected. 12

Footnotes 1. Annualized return on average common shareholders’ equity (ROE) is calculated by dividing annualized net earnings applicable to common shareholders by average monthly common shareholders’ equity. Annualized return on average tangible common shareholders’ equity (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. Tangible book value per common share (TBVPS) is calculated by dividing tangible common shareholders’ equity by basic shares. Management believes that tangible common shareholders’ equity and TBVPS are meaningful because they are measures that the firm and investors use to assess capital adequacy and that ROTE is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed internally. Tangible common shareholders’ equity, ROTE and TBVPS 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 and ending common shareholders’ equity to average and ending tangible common shareholders’ equity: AVERAGE FOR THE AS OF THREE MONTHS ENDED Unaudited, $ in millions MARCH 31, 2023 MARCH 31, 2023 DECEMBER 31, 2022 MARCH 31, 2022 Total shareholders’ equity $ 116,819 $ 117,509 $ 117,189 $ 115,239 Preferred stock (10,703) (10,703) (10,703) (10,703) Common shareholders’ equity 106,116 106,806 106,486 104,536 Goodwill (6,392) (6,439) (6,374) (5,272) Identifiable intangible assets (1,985) (1,965) (2,009) (1,209) Tangible common shareholders’ equity $ 97,739 $ 98,402 $ 98,103 $ 98,055 2. Dealogic – January 1, 2023 through March 31, 2023. 3. For information about the following items, see the referenced sections in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the firm’s Annual Report on Form 10-K for the year ended December 31, 2022: (i) Investment banking fees backlog – see “Results of Operations – Global Banking & Markets” (ii) assets under supervision – see “Results of Operations – Asset & Wealth Management – Assets Under Supervision” (iii) efficiency ratio – see “Results of Operations – Operating Expenses” (iv) basic shares – see “Balance Sheet and Funding Sources – Balance Sheet Analysis and Metrics” (v) share repurchase program – see “Capital Management and Regulatory Capital – Capital Management” and (vi) global core liquid assets – see “Risk Management – Liquidity Risk Management.” For information about the following items, see the referenced sections in Part II, Item 8 “Financial Statements and Supplementary Data ” in the firm’s Annual Report on Form 10-K for the year ended December 31, 2022: (i) interest-earning assets – see “Statistical Disclosures – Distribution of Assets, Liabilities and Shareholders’ Equity” and (ii) risk-based capital ratios and the supplementary leverage ratio – see Note 20 “Regulation and Capital Adequacy.” 4. Represents a preliminary estimate for the first quarter of 2023 and may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended March 31, 2023. 5. Includes consolidated investment entities (CIEs) and other investments. CIEs are generally accounted for at historical cost less depreciation. Substantially all of the firm’s CIEs are engaged in real estate investment activities. Assets held by CIEs of $11 billion as of March 31, 2023 and $12 billion as of December 31, 2022 were funded with liabilities of approximately $6 billion as of both March 31, 2023 and December 31, 2022. Substantially all such liabilities are nonrecourse, thereby reducing the firm’s equity at risk. 6. Includes consolidated investment entities and other legacy investments the firm intends to exit over the medium term. 7. Includes approximately $700 million of loans that were transferred to Global Banking & Markets. 8. In 2022, based on regulatory feedback, the firm revised certain interpretations of the Capital Rules underlying the calculation of Standardized RWAs and Advanced RWAs. As of March 31, 2022, this change would have increased both Standardized RWAs and Advanced RWAs by approximately $5 billion to $687 billion and $679 billion, respectively. This change would have reduced both the firm’s Standardized CET1 capital ratio of 14.4% 13 and Advanced CET1 capital ratio of 14.6% by 0.1 percentage points.