01—Abstract
Summary
Summary of the 10-K filed February 25, 2022. Cited figures are marked; the original filing is the authoritative source.
Goldman Sachs Group, Inc. (GS) reported strong financial performance for the fiscal year ended December 31, 2021.
The company saw a significant increase in net earnings to $21.64 billiona, a substantial rise from $9.46 billion in 2020, with diluted earnings per share reaching $59.45. This robust performance was driven by higher net revenues across all segments, particularly in Asset Management, Investment Banking, and Consumer & Wealth Management, reflecting a favorable economic backdrop with increased client activity and strong market performance. The company's strategic acquisitions of NN Investment Partners and GreenSky are expected to further accelerate its strategy for durable returns.
Goldman Sachs maintained strong capital ratios, with a CET1 capital ratio of 14.2%b under Standardized Capital Rules. Management remains focused on deploying capital for clients where returns are attractive and returning excess capital to shareholders through dividends and share repurchases, while also targeting medium-term ROE and ROTE within specific ranges and aiming for an efficiency ratio of approximately 60%.
02—Key points
Key Highlights
- Net earnings significantly increased to $21.64 billion in 2021, up from $9.46 billion in 2020.
- Diluted earnings per share (EPS) rose to $59.45 in 2021 from $24.74 in 2020.
- Net revenues grew by 33% to $59.34 billion in 2021 compared to $44.56 billion in 2020.
- Strong performance across all business segments, with notable growth in Asset Management, Investment Banking, and Consumer & Wealth Management.
- The company announced two strategic acquisitions: NN Investment Partners (Asset Management) and GreenSky (Consumer Banking) to drive durable returns.
- Goldman Sachs maintained a strong CET1 capital ratio of 14.2% (Standardized Rules) as of December 31, 2021.
- Capital was returned to shareholders through $5.20 billion in common share repurchases and $2.29 billion in common stock dividends during 2021.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 25, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Interest Expense | $5.65B$8.94B | −36.8% |
| Net Income | $21.64B$9.46B | +128.7% |
| EPS (Basic) | $60.25$24.94 | +141.6% |
| EPS (Diluted) | $59.45$24.74 | +140.3% |
| Shares Outstanding (Basic) | 350.50M356.40M | −1.7% |
| Shares Outstanding (Diluted) | 355.80M360.30M | −1.2% |
05—Questions
Frequently Asked Questions
What was Goldman Sachs' overall financial performance in 2021?
Goldman Sachs reported a strong financial performance in 2021, with net earnings of $21.64 billion, a significant increase from $9.46 billion in 2020. Diluted earnings per share also saw a substantial rise to $59.45.
Which business segments contributed most to the company's revenue growth in 2021?
All business segments experienced revenue growth, with Asset Management, Investment Banking, and Consumer & Wealth Management showing the most significant increases.
What are the key strategic initiatives Goldman Sachs is pursuing?
Goldman Sachs announced two strategic acquisitions in 2021: NN Investment Partners in Asset Management and GreenSky in Consumer Banking. These are aimed at accelerating the company's strategy to achieve more durable returns.
How does Goldman Sachs manage its capital and return capital to shareholders?
Goldman Sachs maintains strong capital ratios, with a CET1 capital ratio of 14.2% as of December 31, 2021. The company prioritizes deploying capital for clients where returns are attractive and returns excess capital to shareholders through dividends and share repurchases. For 2021, they returned $7.49 billion to shareholders through these methods.
06—Continue