Full Year and Fourth Quarter 2022

Earnings Results

Media Relations: Andrea Williams 212-902-5400 Investor Relations: Carey Halio 212-902-0300

The Goldman Sachs Group, Inc.

200 West Street | New York, NY 10282

Full Year and Fourth Quarter 2022 Earnings Results

Goldman Sachs Reports Earnings Per Common Share of $30.06 for 2022

Fourth Quarter Earnings Per Common Share was $3.32

"Against a challenging economic backdrop, we delivered double-digit returns for our shareholders in 2022. Our clear, near term focus is realizing the benefits of our strategic realignment which will strengthen our core businesses, scale our growth platforms and improve efficiency. The foundation of all of our strategic efforts is our client franchise which is second to none."

- David Solomon, Chairman and Chief Executive Officer

Financial Summary

2022 4Q22

Net Revenues $47.37 billion $10.59 billion

2022 4Q22

Net Earnings $11.26 billion $1.33 billion

EPS

2022 $30.06

4Q22 $3.32

ROE1

ROTE1

Book Value Per Share

2022 4Q22

10.2% 4.4%

2022 4Q22

11.0% 4.8%

2022

2022 Growth

$303.55 6.7%

NEW YORK, January 17, 2023 - The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $47.37 billion and net earnings of $11.26 billion for the year ended December 31, 2022. Net revenues were $10.59 billion and net earnings were $1.33 billion for the fourth quarter of 2022.

Diluted earnings per common share (EPS) was $30.06 for the year ended December 31, 2022 compared with $59.45 for the year ended December 31, 2021, and was $3.32 for the fourth quarter of 2022 compared with $10.81 for the fourth quarter of 2021 and $8.25 for the third quarter of 2022.

Return on average common shareholders' equity (ROE)1 was 10.2% for 2022 and annualized ROE was 4.4% for the fourth quarter of 2022. Return on average tangible common shareholders' equity (ROTE)1 was 11.0% for 2022 and annualized ROTE was 4.8% for the fourth quarter of 2022.

Annual Highlights.

  • During the year, the firm supported clients amid an evolving macroeconomic environment and executed on strategic priorities, which contributed to net revenues of $47.37 billion and EPS of $30.06, the second highest results for each.

  • Global Banking & Markets2 generated net revenues of $32.49 billion, driven by strong performances across Fixed Income, Currency and Commodities (FICC), Equities and Advisory, including the second highest net revenues in both FICC and Advisory.

  • The firm ranked #1 in worldwide announced and completed mergers and acquisitions for the year.3

  • Asset & Wealth Management2 generated net revenues of $13.38 billion, including record Management and other fees.

  • Assets under supervision4,5 ended the year at a record $2.55 trillion.

  • Platform Solutions2 continued to grow at a strong pace, generating net revenues of $1.50 billion.

  • Book value per common share increased by 6.7% during the year to $303.55.

Net Revenues

Full Year

Net revenues were $47.37 billion for 2022, 20% lower than a strong 2021, primarily reflecting significantly lower net revenues in Asset & Wealth Management and lower net revenues in Global Banking & Markets.

Fourth Quarter

Net revenues were $10.59 billion for the fourth quarter of 2022, 16% lower than the fourth quarter of 2021 and 12% lower than the third quarter of 2022. The decrease compared with the fourth quarter of 2021 primarily reflected significantly lower net revenues in Asset & Wealth Management and lower net revenues in Global Banking & Markets.

Global Banking & Markets

Full Year

Net revenues in Global Banking & Markets were $32.49 billion, 12% lower than a strong 2021.

Investment banking fees were $7.36 billion, 48% lower than a strong 2021, due to significantly lower net revenues in both Equity and Debt underwriting, reflecting a significant decline in industry-wide volumes, and lower net revenues in Advisory, reflecting a decline in industry-wide completed mergers and acquisitions transactions from elevated activity levels in the prior year. The firm's Investment banking fees backlog4 decreased significantly compared with the end of 2021.

Net revenues in FICC were $14.68 billion, 38% higher than 2021, primarily reflecting significantly higher net revenues in FICC intermediation, driven by significantly higher net revenues in interest rate products, currencies and commodities, partially offset by significantly lower net revenues in mortgages and lower net revenues in credit products. In addition, net revenues in FICC financing were significantly higher, primarily driven by secured lending.

Net revenues in Equities were $10.99 billion, 6% lower than 2021, due to lower net revenues in Equities intermediation, reflecting significantly lower net revenues in cash products and lower net revenues in derivatives. Net revenues in Equities financing were higher, primarily reflecting increased client activity.

Net revenues in Other were $(537) million for 2022, compared with $265 million for 2021, reflecting significantly lower net gains from investments in equities and net mark-downs on acquisition financing activities.

Fourth Quarter

Net revenues in Global Banking & Markets were $6.52 billion for the fourth quarter of 2022, 14% lower than both the fourth quarter of 2021 and the third quarter of 2022.

Investment banking fees were $1.87 billion, 48% lower than a strong fourth quarter of 2021, due to significantly lower net revenues in both Equity and Debt underwriting, reflecting a significant decline in industry-wide volumes, and lower net revenues in Advisory, reflecting a significant decline in industry-wide completed mergers and acquisitions transactions from elevated activity levels in the prior year period. The firm's Investment banking fees backlog4 decreased compared with the end of the third quarter of 2022.

Net revenues in FICC were $2.69 billion, 44% higher than the fourth quarter of 2021, primarily reflecting significantly higher net revenues in FICC intermediation, driven by significantly higher net revenues in interest rate products and commodities and higher net revenues in credit products, partially offset by significantly lower net revenues in currencies and mortgages. In addition, net revenues in FICC financing were significantly higher, primarily driven by secured lending.

Net revenues in Equities were $2.07 billion, 5% lower than the fourth quarter of 2021, due to lower net revenues in Equities intermediation, reflecting lower net revenues in both derivatives and cash products. Net revenues in Equities financing were higher, primarily reflecting increased client activity.

Net revenues in Other were $(114) million, compared with $(59) million for the fourth quarter of 2021.

$32.49 billion

Advisory

$ 4.70 billion

Equity underwriting

$ 848 million

Debt underwriting

$ 1.81 billion

Investment banking fees

$ 7.36 billion

FICC intermediation

$11.89 billion

FICC financing

$ 2.79 billion

FICC

$14.68 billion

Equities intermediation

$ 6.66 billion

Equities financing

$ 4.33 billion

Equities

$10.99 billion

Other

$(537) million

$6.52 billion

Asset & Wealth Management

Full Year

Net revenues in Asset & Wealth Management were $13.38 billion for 2022, 39% lower than 2021, primarily reflecting significantly lower net revenues in Equity investments and Debt investments.

Broad macroeconomic and geopolitical concerns during the year led to a decline in global equity prices and wider credit spreads. As a result, net revenues in Equity investments reflected significantly lower net gains from investments in private equities and significant mark-to-market net losses from investments in public equities. The decrease in Debt investments net revenues reflected net mark-downs compared with net mark-ups in the prior year and lower net interest income. Incentive fees were significantly lower, primarily driven by harvesting in the prior year. Management and other fees were higher, reflecting the inclusion of NN Investment Partners (NNIP) and a reduction in fee waivers on money market funds. Private banking and lending net revenues were significantly higher, primarily reflecting higher deposit spreads, as well as higher loan and deposit balances.

Fourth Quarter

Net revenues in Asset & Wealth Management were $3.56 billion for the fourth quarter of 2022, 27% lower than the fourth quarter of 2021 and 12% lower than the third quarter of 2022. The decrease compared with the fourth quarter of 2021 primarily reflected significantly lower net revenues in Equity investments and Debt investments.

The decrease in Equity investments net revenues reflected significantly lower net gains from investments in private equities. The decrease in Debt investments net revenues reflected net mark-downs compared with net mark-ups in the prior year period and significantly lower net interest income. Incentive fees were significantly lower, primarily driven by harvesting in the prior year period. Private banking and lending net revenues were significantly higher, primarily reflecting higher deposit spreads, as well as higher loan and deposit balances. Management and other fees were higher, reflecting the inclusion of NNIP and a reduction in fee waivers on money market funds.

$13.38 billion

$3.56 billion

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The Goldman Sachs Group Inc. published this content on 17 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2023 12:29:11 UTC.