Summary
Goldman Sachs Group, Inc. (GS) reported strong financial results for the third quarter and first nine months of 2021. Net revenues saw a significant increase year-over-year, driven by robust performance across Investment Banking, Global Markets, and Consumer & Wealth Management segments. Investment Banking benefited from strong M&A advisory and underwriting activity, while Global Markets saw increased revenues in Equities, partially offset by softer performance in FICC products. The Asset Management segment experienced lower revenues due to a decline in Equity investments, but overall firm-wide net revenues increased substantially, leading to a significant rise in net earnings and diluted EPS. The company's capital position remains strong, with well-capitalized regulatory ratios exceeding requirements. GS also announced strategic acquisitions in the Asset Management and Consumer & Wealth Management segments, indicating a focus on long-term growth. The firm's liquidity position is robust, supported by a significant amount of High-Quality Liquid Assets (HQLA). The provision for credit losses decreased significantly year-over-year, reflecting an improved economic outlook and the unwinding of pandemic-related provisions.
Financial Highlights
34 data points| Interest Expense | $1.55B |
| Net Income | $5.38B |
| EPS (Basic) | $15.14 |
| EPS (Diluted) | $14.93 |
| Shares Outstanding (Basic) | 348.30M |
| Shares Outstanding (Diluted) | 353.90M |
Key Highlights
- 1Net revenues increased 26% year-over-year for Q3 2021 to $13.61 billion, and 42% year-over-year for the first nine months of 2021 to $46.70 billion.
- 2Diluted EPS rose 66% year-over-year for Q3 2021 to $14.93 and was up significantly for the first nine months of 2021 to $48.59.
- 3Investment Banking revenues more than doubled year-over-year in Q3 2021, driven by strong M&A and underwriting activity.
- 4Global Markets revenues increased 23% year-over-year in Q3 2021, with Equities performance notably strong.
- 5Provision for credit losses decreased substantially, from $278 million in Q3 2020 to $175 million in Q3 2021, and from $2.81 billion for the first nine months of 2020 to $13 million for the same period in 2021.
- 6The Common Equity Tier 1 (CET1) capital ratio remained strong at 14.1% under Standardized Capital Rules and 13.9% under Advanced Capital Rules as of September 30, 2021.
- 7The company announced two strategic acquisitions: NN Investment Partners in Asset Management and GreenSky, Inc. in Consumer banking, both expected to close by Q1 2022.