GOLDMAN SACHS GROUP INC Quarterly Report for Q1 Ended Mar 31, 2022

Summary

Goldman Sachs Group, Inc. reported a decrease in net earnings for the first quarter of 2022, with net earnings of $3.94 billion, down 42% from $6.84 billion in the prior year's quarter. This decline was primarily driven by lower revenues in Investment Banking and Asset Management, impacted by broader macroeconomic and geopolitical concerns that led to market volatility. The company's total net revenues decreased by 27% year-over-year to $12.93 billion. Despite the decline in earnings, Goldman Sachs demonstrated resilience with a solid return on average common shareholders' equity (ROE) of 15.0% for the quarter. The company also saw an increase in its Common Equity Tier 1 (CET1) capital ratio, ending the quarter at 14.6% under the Advanced Capital Rules. The acquisition of GreenSky in March 2022 and NN Investment Partners in April 2022 are expected to accelerate strategic growth. Management remains focused on its medium-term targets for ROE, ROTE, and efficiency ratio, signaling confidence in future performance.

Key Highlights

• 1Net earnings decreased by 42% to $3.94 billion, compared to $6.84 billion in Q1 2021.
• 2Total net revenues declined by 27% year-over-year to $12.93 billion, impacted by lower Investment Banking and Asset Management revenues.
• 3Investment Banking revenues fell 40% due to a significant slowdown in equity underwriting.
• 4Asset Management revenues decreased by 88% primarily due to losses in Equity Investments.
• 5Global Markets segment saw a 4% increase in net revenues to $7.87 billion, driven by strong FICC intermediation and currency/commodity revenues.
• 6Consumer & Wealth Management segment showed growth with a 21% increase in net revenues to $2.10 billion, boosted by wealth management and consumer banking.
• 7Common Equity Tier 1 (CET1) capital ratio remained strong at 14.6% (Advanced Capital Rules), well above regulatory requirements.

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