Slides
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Full Year and Fourth Quarter 2024 Earnings Results Presentation January 15, 2025
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Our culture and leading client franchise are the foundation of our strategy Client Service Partnership Integrity Excellence Harness One GS to Serve Our Clients with Excellence Run World-Class, Differentiated, Durable Businesses Invest to Operate at Scale STRATEGIC OBJECTIVES 1
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World-class and interconnected franchises positioned to deliver mid-teens returns #1 M&A Advisor1 Leading FICC Franchise2 Leading Global Active Asset Manager3 Top 5 Alternative Asset Manager3 Premier Ultra High Net Worth franchise #1 Equities Franchise2 Global Banking & Markets Asset & Wealth Management One Goldman Sachs 2 2024 SHAREHOLDER VALUE CREATION 4 Stock Price +48% Growth in Quarterly Dividend +9% Growth in Book Value per Share +7% Total Shareholder Return +52%
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Exceptional talent underpinned by a culture of excellence 3 Ranked #1 by Vault for most prestigious banking firm 875k+ Experienced hire applicants, with <1% hire rate >40% of the firm’s Partners were campus hires 275+ Alumni in C-suite roles (including Managing Partners) of organizations valued at >$1bn or with AUM >$5bn Compelling for Experienced Talent Invested in Our People Unparalleled Brand of Excellence Aspirational for Campus Recruits <1% Selection rate from ~320k applicants for 2024 summer internship program ~380 Boomerang hires
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Strong progress on execution priorities in 2024 Global Banking & Markets Asset & Wealth Management Record financing revenues of $9.1bn in 2024 +340bps wallet share gains in GBM since 20192 Record Management and other fees of $10.4bn in 2024, up 10% YoY; Alts management and other fees CAGR of 13% from 2019-2024 Positive momentum in fundraising and reduced HPI 6,7 Strong execution on narrowed strategic focus Exceptional client franchise Increased financing revenues in FICC and Equities Record Private banking and lending revenues of $2.9bn in 2024, up 12% YoY Alternatives fundraising of $72bn in 2024; $323bn since 2019YE HPI reduction of $6.9bn to $9.4bn in 2024CAGR of 15% from 2019-2024 #1 M&A, #3 ECM, #2 Leveraged Loans, #3 High-Yield Debt1; Top 3 with 119 of the Top 150 FICC & Equities clients in 1H24 vs. 77 in 20195 Sold GreenSky Signed agreement to transition General Motors (GM) credit card program Sold seller financing loan portfolio Grew more durable revenues 4
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2020 2021 2022 2023 2024 Leading diversified franchise ($bn) Advisory Equity underwriting Debt underwriting FICC intermediation FICC financing Equities intermediation Equities financing Average revenues: $33bn Average ROE: 16% 5 Other $30 Global Banking & Markets: Increased wallet share and financing driving attractive returns $37 $32 $30 $35 Forward Catalysts Constructive Economic Outlook Focus on Scale and Innovation Improving Regulatory Backdrop Financing: Capital Solutions Group Increasing Sponsor Activity Improving CEO Confidence
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Asset & Wealth Management: Delivering strong growth in AUS and more durable revenues 6 Firmwide investment platform7,8 (4Q24) Growth in more durable revenues ($bn) Private banking and lending Management and other fees Leading Global Active Asset Manager3 Top 5 Alternative Asset Manager3 Premier Ultra High Net Worth Franchise 28 Consecutive Quarters of Long-Term Fee-Based Net Inflows ~$525bn Total Alts Assets ~$1.6tn Total Wealth Mgmt. Client Assets9 Expect to drive high-single-digit annual growth in medium-term6 $6.1 $6.8 $7.8 $8.8 $9.5 $10.4 $1.5 $1.4 $1.7 $2.5 $2.6 $2.9 $7.7 $8.1 $9.4 $11.2 $12.1 $13.3 2019 2020 2021 2022 2023 2024 Fixed Income ~$1.175tn Equity ~$775bn Brokerage ~$500bn Liquidity ~$850bn Alternatives ~$525bn $3.8tn
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2023 2024 Path forward to mid-teens returns 7 AWM pre-tax margin improvement 10% Achieved medium-term mid-twenties margin target6; focused on driving towards mid-teens returns Investing for Growth Serve more clients via tailored and differentiated offerings Deliver unique lending solutions Elevate client experience through digital capabilities Wealth Management Scale established flagship programs Innovate new products Deepen institutional relationships and grow wealth channel Alternatives Provide customized solutions at scale Serve corporate and institutional clients and third-party wealth providers Deliver offerings across Outsourced CIO, Insurance, SMAs, Direct indexing Solutions 28% ~4pp impact of HPI6
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$12.9 $12.9 $13.6 $13.6 $14.1 $14.6 $12.2 $12.3 $15.3 $18.4 $19.9 $22.4 $11.4 $19.4 $30.4 $15.4 $12.3 $16.5 $36.5 $44.6 $59.3 $47.4 $46.3 $53.5 2019 2020 2021 2022 2023 2024 ~70% of 2024 revenues driven from a growing baseline and more durable sources More durable revenues Other incremental revenues Baseline revenues Solid foundation from baseline revenues with opportunity for continued growth 1 Growing contribution from more durable revenue sources 2 Power of diversification and consistent ability to capture upside 3 GS revenue breakdown10 ($bn) 8 1 2 3
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Investing to operate at scale with resilience and enhanced productivity 9 OPERATING EFFICIENCIES 1 Organizational Structure Expand presence in key strategic locations Optimize pyramid footprint Streamline functions and processes Spend Management 2 Automation 3 Optimize transaction based expenses Drive efficient management of consultants and vendors Reduction of expenses associated with consolidated investment entity (CIE) dispositions Simplify and modernize technology stack Productivity enhancements Leverage AI solutions to accelerate and transform business technology
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Driving the firm to mid-teens returns through-the-cycle Global Banking & Markets Demonstrated mid-teens returns Asset & Wealth Management 2024 ROE of 12.8%; clear path to mid-teens returns11 Platform Solutions Achieve pre-tax breakeven12 10 2024 ROE 12.7% Mid-Teens Through-the-Cycle
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Net Revenues 11 Record AUS7 of $3.14 trillion; 28th consecutive quarter of long-term fee-based net inflows 2nd highest net revenues, net earnings and diluted EPS ROE13 Net Earnings ROTE13 EPS Book Value Per Share Record Equities net revenues, including record financing; Record FICC financing $ in millions, except per share amounts 2024 4Q24 Pre-tax earnings: AWM historical principal investments6 $ 939 $ 472 GM Card / Seller financing / GreenSky (668) (71) FDIC special assessment fee (71) 9 Total impact to pre-tax earnings $ 200 $ 410 Impact to net earnings $ 156 $ 320 Impact to EPS $ 0.47 $ 0.98 Impact to ROE 0.2pp 1.2pp Selected Items and FDIC Special Assessment Fee14Annual Highlights 2024 4Q24 12.7% 14.6% Record Management and other fees; Record Private banking and lending net revenues 2024 4Q24 $14.28 billion $ 4.11 billion 2024 4Q24 $53.51 billion $13.87 billion 2024 4Q24 $40.54 $11.95 2024 4Q24 13.5% 15.5% 2024 2024 Growth $336.77 7.4% #1 in announced and completed M&A1 Results Snapshot
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Financial Overview Financial Results Financial Overview Highlights 4Q24 results included EPS of $11.95 and ROE of 14.6% — 4Q24 net revenues were significantly higher YoY reflecting higher net revenues across all segments, with significant growth in Global Banking & Markets — 4Q24 provision for credit losses was $351 million, reflecting net provisions related to the credit card portfolio (primarily driven by net charge-offs) — 4Q24 operating expenses were slightly lower YoY primarily reflecting the FDIC special assessment fee in 4Q23 and significantly lower expenses, including impairments, related to commercial real estate in CIEs, partially offset by higher transaction based expenses 12 $ in millions, except per share amounts 4Q24 vs. 3Q24 vs. 4Q23 2024 vs. 2023 Global Banking & Markets $ 8,479 (1)% 33% $ 34,943 16% Asset & Wealth Management 4,721 26% 8% 16,142 16% Platform Solutions 669 71% 16% 2,427 2% Net revenues 13,869 9% 23% 53,512 16% Provision for credit losses 351 (12)% (39)% 1,348 31% Operating expenses 8,261 (1)% (3)% 33,767 (2)% Pre-tax earnings $ 5,257 32% 133% $ 18,397 71% Net earnings $ 4,111 37% 105% $ 14,276 68% Net earnings to common $ 3,923 41% 110% $ 13,525 71% Diluted EPS $ 11.95 42% 118% $ 40.54 77% ROE13 14.6% 4.2pp 7.5pp 12.7% 5.2pp ROTE13 15.5% 4.4pp 7.9pp 13.5% 5.4pp Efficiency Ratio7 59.6% (5.9)pp (15.4)pp 63.1% (11.5)pp 2024 results included EPS of $40.54 and ROE of 12.7% — 2024 net revenues were higher YoY primarily reflecting higher net revenues in Global Banking & Markets and Asset & Wealth Management — 2024 provision for credit losses was $1.35 billion, reflecting net provisions related to the credit card portfolio (primarily driven by net charge-offs) — 2024 operating expenses were slightly lower YoY reflecting decreases driven by significantly lower expenses, including impairments, related to commercial real estate in CIEs and other significant expenses recognized in the prior year, including the write-down of intangibles related to GreenSky, an impairment of goodwill related to Consumer platforms and the FDIC special assessment fee. These decreases were partially offset by higher compensation and benefits expenses and higher transaction based expenses
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Global Banking & Markets Highlights Global Banking & Markets Financial Results 13 $ in millions 4Q24 vs. 3Q24 vs. 4Q23 2024 vs. 2023 Investment banking fees $ 2,054 10% 24% $ 7,732 24% FICC 2,739 (8)% 35% 13,204 9% Equities 3,451 (1)% 32% 13,431 16% Other 235 4% 285% 576 237% Net revenues 8,479 (1)% 33% 34,943 16% Provision for credit losses (55) N.M. N.M. 40 (90)% Operating expenses 4,783 (4)% 10% 19,980 11% Pre-tax earnings $ 3,751 6% 105% $ 14,923 29% Net earnings $ 2,937 11% 72% $ 11,580 26% Net earnings to common $ 2,793 12% 75% $ 10,998 26% Average common equity $ 76,604 1% 3% $ 75,796 5% Return on average common equity 14.6% 1.5pp 6.0pp 14.5% 2.4pp 4Q24 net revenues were significantly higher YoY — Investment banking fees reflected significantly higher net revenues in Equity underwriting and Debt underwriting — FICC reflected significantly higher net revenues in intermediation and financing — Equities reflected significantly higher net revenues in intermediation and financing Investment banking fees backlog7 increased QoQ, primarily driven by Equity underwriting 4Q24 select data7: — Total assets of $1.41 trillion — Loan balance of $130 billion — Net interest income of $869 million 2024 net revenues were higher YoY — Investment banking fees reflected significantly higher net revenues in Debt underwriting and Equity underwriting and higher net revenues in Advisory — FICC reflected significantly higher net revenues in financing and slightly higher net revenues in intermediation — Equities reflected significantly higher net revenues in intermediation and higher net revenues in financing Investment banking fees backlog7 increased YoY, primarily driven by Advisory
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Global Banking & Markets Net Revenues Highlights Global Banking & Markets – Net Revenues Net Revenues 14 $ in millions 4Q24 vs. 3Q24 vs. 4Q23 2024 vs. 2023 Advisory $ 960 10% (4)% $ 3,534 7% Equity underwriting 499 30% 98% 1,677 45% Debt underwriting 595 (2)% 51% 2,521 43% Investment banking fees 2,054 10% 24% 7,732 24% FICC intermediation 1,750 (13)% 35% 9,564 3% FICC financing 989 4% 34% 3,640 33% FICC 2,739 (8)% 35% 13,204 9% Equities intermediation 1,953 (12)% 30% 7,937 22% Equities financing 1,498 16% 36% 5,494 9% Equities 3,451 (1)% 32% 13,431 16% Other 235 4% 285% 576 237% Net revenues $ 8,479 (1)% 33% $ 34,943 16% 4Q24 Investment banking fees were significantly higher YoY — Advisory net revenues were slightly lower — Equity underwriting primarily reflected an increase in secondary and initial public offerings and private placements — Debt underwriting primarily reflected an increase in leveraged finance activity 4Q24 FICC net revenues were significantly higher YoY — FICC intermediation reflected significantly higher net revenues in currencies and mortgages and higher net revenues in credit products, partially offset by lower net revenues in commodities. Net revenues in interest rate products were essentially unchanged — Record FICC financing primarily reflected significantly higher net revenues from mortgages and structured lending 4Q24 Equities net revenues were significantly higher YoY — Equities intermediation primarily reflected significantly higher net revenues in cash products — Record Equities financing reflected significantly higher net revenues in prime financing and portfolio financing 4Q24 Other net revenues YoY reflected significantly lower net losses on hedges 2024 Investment banking fees were significantly higher YoY — Advisory reflected an increase in completed mergers and acquisitions transactions — Equity underwriting primarily reflected an increase in secondary and initial public offerings — Debt underwriting primarily reflected an increase in leveraged finance activity 2024 FICC net revenues were higher YoY — FICC intermediation reflected significantly higher net revenues in currencies, mortgages and credit products, largely offset by lower net revenues in interest rate products and significantly lower net revenues in commodities — Record FICC financing reflected significantly higher net revenues from mortgages and structured lending 2024 Equities net revenues were a record and higher YoY — Equities intermediation primarily reflected significantly higher net revenues in derivatives — Record Equities financing reflected higher net revenues in prime financing 2024 Other net revenues YoY primarily reflected significantly lower net losses on hedges
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Asset & Wealth Management Highlights Asset & Wealth Management Financial Results 15 $ in millions 4Q24 vs. 3Q24 vs. 4Q23 2024 vs. 2023 Management and other fees: Asset management $ 1,185 1% 8% $ 4,576 9% Wealth management 1,633 13% 21% 5,849 11% Total Management and other fees 2,818 8% 15% 10,425 10% Incentive fees 174 105% 195% 393 144% Private banking and lending 736 (3)% 11% 2,881 12% Equity investments 729 528% (13)% 1,359 297% Debt investments 264 48% (31)% 1,084 (18)% Net revenues 4,721 26% 8% 16,142 16% Provision for credit losses (43) 61% (378)% (232) 54% Operating expenses 3,006 6% (16)% 11,825 (9)% Pre-tax earnings $ 1,758 73% 116% $ 4,549 235% Net earnings $ 1,371 79% 107% $ 3,530 227% Net earnings to common $ 1,333 83% 110% $ 3,386 256% Average common equity $ 26,593 – (4)% $ 26,405 (12)% Return on average common equity 20.1% 9.1pp 11.0pp 12.8% 9.6pp 4Q24 net revenues were higher YoY — Record Management and other fees primarily reflected the impact of higher average assets under supervision — Incentive fees were driven by harvesting — Private banking and lending primarily reflected the impact of higher deposit balances — Equity investments primarily reflected the impact of the net gain related to the sale of Personal Financial Management in 4Q23, partially offset by significantly higher mark-to- market net gains from investments in public equities — Debt investments reflected lower net interest income due to a reduction in the debt investments balance sheet 4Q24 select data7: — Total assets of $194 billion — Loan balance of $47 billion, of which $38 billion related to Private banking and lending — Net interest income of $713 million — Total Wealth management client assets9 of ~$1.6 trillion 2024 net revenues were higher YoY — Record Management and other fees primarily reflected the impact of higher average assets under supervision — Incentive fees were driven by harvesting — Record Private banking and lending net revenues; YoY increase reflected the impact of the sale of the Marcus loan portfolio in 2023 (including net revenues of approximately $(370) million related to the sale of substantially all of the portfolio) and the impact of higher direct- to-consumer deposit balances — Equity investments primarily reflected significantly higher net gains from investments in private equities (largely reflecting the impact of net losses in real estate investments in the prior year) — Debt investments reflected lower net interest income due to a reduction in the debt investments balance sheet, partially offset by net gains in 2024 compared with net losses (particularly in real estate investments) in 2023 2024 pre-tax margin of 28% (including the positive impact of 4pp from the results of historical principal investments6)
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$ in billions 4Q24 3Q24 4Q23 Alternative investments $ 336 $ 328 $ 295 Equity 772 780 658 Fixed income 1,184 1,220 1,122 Long-term AUS 2,292 2,328 2,075 Liquidity products 845 775 737 Total AUS $ 3,137 $ 3,103 $ 2,812 During the year, AUS increased $325 billion to a record $3.14 trillion — Net inflows across all asset classes — Net market appreciation primarily in equity assets During the quarter, AUS increased $34 billion — Net inflows primarily in liquidity products and alternative investment assets — Net market depreciation primarily in fixed income and equity assets Total AUS net inflows of $92 billion during the quarter, of which: — $78 billion of net inflows in Third-party distributed client channel — $18 billion of net inflows in Wealth management client channel — $4 billion of net outflows in Institutional client channel AUS by Client Channel7 AUS Highlights7 Asset & Wealth Management – Assets Under Supervision 16 AUS Rollforward7 AUS by Asset Class7 $ in billions 4Q24 3Q24 4Q23 Institutional $ 1,078 $ 1,126 $ 1,033 Wealth management 929 913 798 Third-party distributed 1,130 1,064 981 Total AUS $ 3,137 $ 3,103 $ 2,812 4Q24 AUS by Region and Vehicle7 $ in billions 4Q24 3Q24 4Q23 2024 2023 Beginning balance $ 3,103 $ 2,934 $ 2,680 $ 2,812 $ 2,547 Long-term AUS net inflows / (outflows) 22 29 51 106 74 Liquidity products 70 37 (37) 108 27 Total AUS net inflows / (outflows) 92 66 14 214 101 Acquisitions / (dispositions) – – (23) – (23) Net market appreciation / (depreciation) (58) 103 141 111 187 Ending balance $ 3,137 $ 3,103 $ 2,812 $ 3,137 $ 2,812 Americas EMEA Asia 7% 22% Region Separate accounts Public funds Private funds and other71% 14% 32% 54%Vehicle
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Asset & Wealth Management – Alternative Investments On-Balance Sheet Alternative Investments7Alternative Investments Highlights7 2024 Management and other fees from alternative investments were $2.18 billion (including $620 million in 4Q24), up 2% from 2023 During the year, alternative investments AUS increased $41 billion to $336 billion 2024 gross third-party alternatives fundraising across strategies was $72 billion, including: — $28 billion in corporate equity, $19 billion in credit, $6 billion in real estate and $19 billion in hedge funds and other — $323 billion raised since 2019 During the year, on-balance sheet alternative investments declined by $9.7 billion to $36.5 billion — Historical principal investments6 declined by $6.9 billion to $9.4 billion (attributed equity of $4 billion) and included $1.6 billion of loans, $2.6 billion of debt securities, $3.5 billion of equity securities and $1.7 billion of CIE investments15 17 Alternative Investments AUS and Effective Fees7 4Q24 $ in billions Average AUS Effective Fees (bps) Corporate equity $ 127 75 Credit 64 72 Real estate 30 56 Hedge funds and other 75 58 Funds and discretionary accounts 296 68 Advisory accounts 37 16 Total alternative investments AUS $ 333 62 $ in billions 4Q24 Loans $ 8.5 Debt securities 9.0 Equity securities 13.4 Other15 5.6 Total On-B/S alternative investments $ 36.5 $ in billions 4Q24 Client co-invest $ 18.4 Firmwide initiatives / CRA investments 8.7 Historical principal investments6 9.4 Total On-B/S alternative investments $ 36.5 Historical Principal Investments Rollforward $ in billions 2024 Beginning balance $ 16.3 Additions 0.7 Dispositions / paydowns16 (7.9) Net mark-ups / (mark-downs) 0.3 Net change $ (6.9) Ending balance $ 9.4
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Platform Solutions Highlights Platform Solutions Financial Results 18 $ in millions 4Q24 vs. 3Q24 vs. 4Q23 2024 vs. 2023 Consumer platforms $ 597 79% 18% $ 2,147 4% Transaction banking and other 72 24% (1)% 280 (8)% Net revenues 669 71% 16% 2,427 2% Provision for credit losses 449 (1)% 13% 1,540 36% Operating expenses 472 (5)% (17)% 1,962 (43)% Pre-tax earnings / (loss) $ (252) 55% 35% $ (1,075) 51% Net earnings / (loss) $ (197) 54% 45% $ (834) 52% Net earnings / (loss) to common $ (203) 54% 44% $ (859) 51% Average common equity $ 4,633 3% 27% $ 4,573 18% Return on average common equity (17.5)% 21.3pp 22.2pp (18.8)% 26.4pp 4Q24 net revenues were higher YoY — Consumer platforms primarily reflected the mark-downs related to the GreenSky held for sale loan portfolio in 4Q23 — Transaction banking and other net revenues were essentially unchanged 4Q24 provision for credit losses of $449 million reflected net provisions related to the credit card portfolio (primarily driven by net charge-offs) 4Q24 select data7: — Total assets of $63 billion — Loan balance of $19 billion — Net interest income of $763 million 2024 net revenues were slightly higher compared with 2023 — Consumer platforms reflected higher average credit card balances and higher average deposit balances, largely offset by the impact of the planned transition of the GM credit card program to another issuer — Transaction banking and other primarily reflected lower net revenues related to the seller financing loan portfolio 2024 provision for credit losses of $1.54 billion reflected net provisions related to the credit card portfolio (primarily driven by net charge-offs)
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Loans by Segment7 ($ in billions) $ in billions 4Q24 3Q24 4Q23 Corporate $ 30 $ 33 $ 36 Commercial real estate 30 28 26 Residential real estate 26 25 25 Securities-based lending 17 16 15 Other collateralized lending 75 73 62 Installment – – 3 Credit cards 21 20 19 Other 2 2 2 Allowance for loan losses (5) (5) (5) Total loans $ 196 $ 192 $ 183 Loans and Net Interest Income During the year, total loans increased $13 billion, up 7% — Gross loans by type: $192 billion - amortized cost, $5 billion - fair value, $4 billion - held for sale — Average loans of $188 billion — Total allowance for loan losses and losses on lending commitments was $5.34 billion ($4.67 billion for funded loans) o $2.77 billion for wholesale loans, $2.57 billion for consumer loans Net charge-offs for 2024 of $1.42 billion for a net charge-off rate of 0.8% (0.0% for wholesale loans, 7.6% for consumer loans), down 10bps YoY — Net charge-offs for 4Q24 of $377 million for an annualized net charge-off rate of 0.8% (0.1% for wholesale loans, 7.1% for consumer loans), up 10bps QoQ Net interest income for 2024 was $8.06 billion, 27% higher YoY, reflecting an increase in interest-earning assets. Average interest-earning assets7 were $1.57 trillion — Net interest income for 4Q24 was $2.35 billion, 75% higher YoY, reflecting a shift towards higher-yielding assets, and was essentially unchanged QoQ. Average interest-earning assets7 were $1.59 trillion Loans and Net Interest Income Highlights7 Loans by Type7 19 2.4% ALLL to Total Gross Loans, at Amortized Cost 1.2% ALLL to Gross Wholesale Loans, at Amortized Cost 13.1% ALLL to Gross Consumer Loans, at Amortized Cost Metrics ~85% Gross Loans Secured $19 $18 $20 $47 $45 $46 $130 $129 $117 4Q24 3Q24 4Q23 Global Banking & Markets Asset & Wealth Management Platform Solutions $196 $192 $183
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2024 total operating expenses decreased YoY — Decreases driven by significantly lower expenses, including impairments, related to commercial real estate in CIEs (largely in depreciation and amortization) and other significant expenses recognized in 2023, including the write-down of intangibles related to GreenSky and an impairment of goodwill related to Consumer platforms (both in depreciation and amortization), and the FDIC special assessment fee (in other expenses) — Partially offset by higher compensation and benefits expenses (reflecting improved operating performance) and higher transaction based expenses 2024 effective income tax rate was 22.4%, up from 20.7% for 2023, primarily due to a decrease in the impact of permanent tax benefits for 2024 compared with 2023, partially offset by changes in the geographic mix of earnings $ in millions 4Q24 vs. 3Q24 vs. 4Q23 2024 vs. 2023 Compensation and benefits $ 3,759 (9)% 4% $ 16,706 8% Transaction based 1,872 10% 29% 6,724 18% Market development 181 14% 3% 646 3% Communications and technology 523 5% 4% 1,991 4% Depreciation and amortization 498 (20)% (36)% 2,392 (51)% Occupancy 240 (1)% (10)% 973 (8)% Professional fees 475 19% 1% 1,652 2% Other expenses 713 25% (42)% 2,683 (16)% Total operating expenses $ 8,261 (1)% (3)% $ 33,767 (2)% Provision for taxes $ 1,146 15% 366% $ 4,121 85% Effective Tax Rate 22.4% 1.7pp Financial Results Efficiency Ratio7 Expense Highlights Expenses 20 2024 2023 63.1% 74.6%
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Standardized CET1 capital ratio increased YoY, driven by an increase in CET1 capital and a decrease in credit RWAs, partially offset by an increase in market RWAs Advanced CET1 capital ratio increased YoY, primarily driven by an increase in CET1 capital, partially offset by an increase in market RWAs Returned $11.80 billion of capital to common shareholders during the year — 17.5 million common shares repurchased for a total cost of $8.00 billion7 (including $2.00 billion repurchased during 4Q24) — $3.80 billion of common stock dividends Deposits of $433 billion consisted of consumer $181 billion, private bank $96 billion, transaction banking $63 billion, brokered CDs $41 billion, deposit sweep programs $31 billion and other $21 billion BVPS increased 7.4% YoY, driven by net earnings Capital7 Selected Balance Sheet Data7Capital and Balance Sheet Highlights7 Book Value Capital and Balance Sheet 21 4Q24 3Q24 4Q23 Standardized CET1 capital ratio 15.0% 14.6% 14.4% Advanced CET1 capital ratio 15.4% 15.5% 14.9% Supplementary leverage ratio (SLR) 5.5% 5.5% 5.5% $ in billions 4Q24 3Q24 4Q23 Total assets $ 1,671 $ 1,728 $ 1,642 Deposits $ 433 $ 445 $ 428 Unsecured long-term borrowings $ 243 $ 250 $ 242 Shareholders’ equity $ 122 $ 121 $ 117 Average GCLA $ 422 $ 447 $ 414 In millions, except per share amounts 4Q24 3Q24 4Q23 Basic shares7 322.9 324.2 337.1 Book value per common share $ 336.77 $ 332.96 $ 313.56 Tangible book value per common share13 $ 316.02 $ 311.88 $ 292.52
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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, 2023. 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) forward catalysts, estimated GDP growth or contraction, interest rate and inflation trends and volatility, (ii) the timing, profitability, benefits and other prospective aspects of business initiatives and the achievability of targets and goals, (iii) the firm’s expense savings, productivity and strategic location initiatives, (iv) the future state of the firm’s liquidity and regulatory capital ratios (including the firm’s stress capital buffer and G-SIB buffer, and the potential impact of changes to U.S. regulatory capital rules), (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 2025 benchmark debt issuances, (ix) the impact of Russia’s invasion of Ukraine and related sanctions and other developments and the impact of the conflict in the Middle East on the firm’s business, results and financial position, and (x) the firm’s ability to sell, and the terms of any proposed or pending sale of, Asset & Wealth Management historical principal investments, and the firm’s ability to transition the GM credit card program are forward-looking statements. Statements regarding forward catalysts are subject to the risk that the actual operating environment may differ, possibly materially, due to, among other things, changes or the absence of changes in general economic and market conditions, CEO confidence, sponsor activity, productivity gains, and the regulatory backdrop. 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 timing, profitability, benefits and other prospective aspects of business and expense savings initiatives and the achievability of targets and goals are based on the firm’s current expectations regarding the firm’s ability to effectively implement these initiatives 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 (including dividends and repurchases), 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, including due to, among other things, potential future changes to regulatory capital rules, which may not be what the firm expects. 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 tax authorities. Statements about the firm’s Investment banking fees backlog and future advisory and capital market results are subject to the risk that advisory and capital market activity may not increase as the firm expects or 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 those in Ukraine and the Middle East, 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 2025 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 and the impact of the conflict in the Middle East 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. Statements about the proposed or pending sales of Asset & Wealth Management historical principal investments are subject to the risks that buyers may not bid on these assets or bid at levels, or with terms, that are unacceptable to the firm, and that the performance of these activities may deteriorate as a result of the proposed and pending sales, and statements about the process to transition the GM credit card program are subject to the risk that a transaction may not close on the anticipated timeline or at all, including due to a failure to obtain requisite regulatory approvals. Cautionary Note Regarding Forward-Looking Statements 22
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1. Dealogic – January 1, 2024 through December 31, 2024. M&A refers to both announced and completed M&A. Equity capital markets (ECM) refers to Equity & Equity-related Offerings. 2. FICC and Equities rankings based on cumulative publicly-disclosed net revenues (2020-3Q24 YTD). Global Banking & Markets (GBM) revenue wallet share since Investor Day 2020 (3Q24 YTD vs. 2019) based on reported revenues for Advisory, Equity underwriting, Debt underwriting, FICC and Equities. Peers include MS, JPM, BAC, C, BARC, DB, UBS, CS (through FY22). 3. Rankings based on assets as of 3Q24. Peer data compiled from publicly available company filings, earnings releases and supplements, and websites, as well as eVestment databases and Morningstar Direct. GS total Alternatives investments included Alternatives AUS and non-fee-earning Alternatives assets. 4. Dividend per share and book value per share as of 4Q24, growth vs. 4Q23. Stock price and total shareholder return as of December 31, 2024, growth vs. December 29, 2023 (last market day of 2023). 5. Source: Top 150 client list and rankings compiled by GS through Client Ranking / Scorecard / Feedback and / or Coalition Greenwich 1H24 (latest available) and FY19 Institutional Client Analytics ranking. 6. Medium term refers to a 3-5 year time horizon from year-end 2022. Historical principal investments (HPI) includes consolidated investment entities (CIEs) and other legacy investments the firm intends to exit over the medium term. 7. For information about the following items, see the referenced sections in Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the firm’s Quarterly Report on Form 10-Q for the period ended September 30, 2024: (i) Investment banking fees backlog – see “Results of Operations – Global Banking & Markets,” (ii) assets under supervision (AUS) – 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 I, Item 1 “Financial Statements (Unaudited)” in the firm’s Quarterly Report on Form 10-Q for the period ended September 30, 2024: (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.” Represents a preliminary estimate for the fourth quarter of 2024 for the firm’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio, balance sheet data and global core liquid assets. These may be revised in the firm’s Annual Report on Form 10-K for the year ended December 31, 2024. 8. Included $3.1 trillion of AUS, approximately $185 billion of non-fee-earning alternative assets and approximately $500 billion of brokerage assets. 9. Consists of AUS, brokerage assets and Marcus deposits. 10. Baseline revenues represent the total revenues of the previous 10-year lows for each of the businesses considered to be more cyclical: Advisory, Equity underwriting, Debt underwriting, FICC intermediation and Equities intermediation. More durable revenues represent reported revenues for the year for Management and other fees, Private banking and lending, FICC financing and Equities financing. Other incremental revenues represent total net revenues reported for the year less baseline revenues and more durable revenues as defined above. 11. Key assumptions include continued annual growth in the high-single-digits in Management and other fees and Private banking and lending net revenues, a reduction in HPI balance sheet (returning associated capital of approximately $4 billion to shareholders), an increase in Incentive fees to the target level of $1 billion and a reduction in aggregated Equity and Debt investments net revenues to the target level of $2 billion+, which imply a positive impact of approximately 100-130bps to the firm’s ROE. 12. Achieving pre-tax breakeven implies a positive impact of approximately 70bps to the firm’s ROE, with an additional positive impact of approximately 60bps if associated capital of approximately $5 billion is returned to shareholders. 23 Footnotes
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Footnotes – Continued 24 13. Return on average common shareholders’ equity (ROE) is calculated by dividing net earnings (or annualized net earnings for annualized ROE) applicable to common shareholders by average monthly common shareholders’ equity. Return on average tangible common shareholders’ equity (ROTE) is calculated by dividing net earnings (or annualized net earnings for annualized ROTE) 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: 14. Includes selected items that the firm has sold or is selling related to the narrowing of the firm’s ambitions in consumer -related activities and related to the transitioning of Asset & Wealth Management to a less capital-intensive business . Pre-tax earnings for each selected item includes the operating results of the item and additionally, for General Motors (GM) Card, a loss related to the planned transition of the GM credit card program to another issuer and a write-down of intangibles, and for seller financing, net impairments in provision for credit losses and a mark-down in net revenues related to the transfer of the portfolio to held for sale. In the first half of 2024, the FDIC notified banks subject to the special assessment fee that the estimated cost to the Deposit Insurance Fund resulting from the closures in 2023 of Silicon Valley Bank and Signature Bank had increased and the firm recognized an incremental pre-tax expense. In 3Q24 and 4Q24, based on additional information received from the FDIC, the firm recognized a reduction in the estimated cost of the FDIC special assessment fee. Net earnings reflects the 2024 and 4Q24 effective income tax rate for the respective segment of each item. 15. Other on-balance sheet alternative investments include tax credit investments (accounted for under the proportional amortization method of accounting) of $3.2 billion and assets held by CIEs (generally accounted for at historical cost less depreciation) of $2.4 billion, both as of December 31, 2024. The assets held by CIEs were funded with liabilities of $1.2 billion as of December 31, 2024, which are substantially all nonrecourse thereby reducing the firm’s equity at risk. Substantially all of the firm’s CIEs are engaged in commercial real estate investment activities . 16. Includes approximately $0.4 billion of investments that were transferred from historical principal investments to client co-invest. AVERAGE FOR THE AS OF YEAR ENDED DECEMBER 31, 2024 THREE MONTHS ENDED DECEMBER 31, 2024Unaudited, $ in millions DECEMBER 31, 2024 SEPTEMBER 30, 2024 DECEMBER 31, 2023 Total shareholders’ equity $ 119,204 $ 121,083 $ 121,996 $ 121,200 $ 116,905 Preferred stock (12,430) (13,253) (13,253) (13,253) (11,203) Common shareholders’ equity 106,774 107,830 108,743 107,947 105,702 Goodwill (5,895) (5,880) (5,853) (5,909) (5,916) Identifiable intangible assets (1,003) (886) (847) (925) (1,177) Tangible common shareholders’ equity $ 99,876 $ 101,064 $ 102,043 $ 101,113 $ 98,609