The Goldman Sachs Group, Inc. · 7/15/2020 · 99.2 Presentation of Group Inc. dated July 15,...
Transcript of The Goldman Sachs Group, Inc. · 7/15/2020 · 99.2 Presentation of Group Inc. dated July 15,...
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 15, 2020
The Goldman Sachs Group, Inc. (Exact name of registrant as specified in its charter)
Delaware No. 001-14965 No. 13-4019460
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer Identification No.)
200 West Street, New York, N.Y. 10282
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (212) 902-1000
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol
Exchange
on which
registered
Common stock, par value $.01 per share GS NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series A GS PrA NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series C GS PrC NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series D GS PrD NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 5.50% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series J GS PrJ NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 6.375% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series
K GS PrK NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 6.30% Non-Cumulative Preferred Stock, Series N GS PrN NYSE
5.793% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital II GS/43PE NYSE
Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital III GS/43PF NYSE
Medium-Term Notes, Series A, Index-Linked Notes due 2037 of GS Finance Corp. GCE NYSE Arca
Medium-Term Notes, Series B, Index-Linked Notes due 2037 GSC NYSE Arca
Medium-Term Notes, Series E, Index-Linked Notes due 2028 of GS Finance Corp. FRLG NYSE Arca
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under the
Exchange Act (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition
Item 7.01 Regulation FD Disclosure
Item 9.01 Financial Statements and Exhibits
Signature
Exhibit 99.1: PRESS RELEASE
Exhibit 99.2: PRESENTATION
Item 2.02 Results of Operations and Financial Condition.
On July 15, 2020, The Goldman Sachs Group, Inc. (Group Inc. and, together with its consolidated subsidiaries, the firm) reported its
earnings for the second quarter ended June 30, 2020. A copy of Group Inc.’s press release containing this information is attached as
Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.
Item 7.01 Regulation FD Disclosure.
On July 15, 2020, at 9:30 a.m. (ET), the firm will hold a conference call to discuss the firm’s financial results, outlook and related
matters. A copy of the presentation for the conference call is attached as Exhibit 99.2 to this Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Press release of Group Inc. dated July 15, 2020 containing financial information for its second quarter ended June 30,
2020.
The quotation on page 1 of Exhibit 99.1 and the information under the caption “Highlights” on the following page (Excluded
Sections) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (Exchange Act) or
otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of
Group Inc. under the Securities Act of 1933 or the Exchange Act. The information included in Exhibit 99.1, other than in the
Excluded Sections, shall be deemed “filed” for purposes of the Exchange Act.
99.2 Presentation of Group Inc. dated July 15, 2020, for the conference call on July 15, 2020.
Exhibit 99.2 is being furnished pursuant to Item 7.01 of Form 8-K and the information included therein shall not be deemed
“filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be
deemed to be incorporated by reference into any filing of Group Inc. under the Securities Act of 1933 or the Exchange Act.
101 Pursuant to Rule 406 of Regulation S-T, the cover page information is formatted in iXBRL (Inline eXtensible Business
Reporting Language).
104 Cover Page Interactive Data File (formatted in iXBRL in Exhibit 101).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
THE GOLDMAN SACHS GROUP, INC.
(Registrant)
Date: July 15, 2020 By: /s/ Stephen M. Scherr
Name: Stephen M. Scherr
Title: Chief Financial Officer
Exhibit 99.1
Second Quarter 2020
Earnings Results
Media Relations: Jake Siewert 212-902-5400
Investor Relations: Heather Kennedy Miner 212-902-0300
The Goldman Sachs Group, Inc.
200 West Street | New York, NY 10282
Second Quarter 2020 Earnings Results
Goldman Sachs Reports Second Quarter Earnings Per Common Share of $6.26
“This quarter demonstrated the continued dedication of the people of Goldman Sachs to helping our clients
navigate a very challenging environment, while working remotely or returning to offices that are quite different
than the ones we left earlier in the year. We also continue to be grateful for those working hard to contain the
pandemic and limit its human and economic costs.
Our strong financial performance across our client franchises demonstrates the inherent benefits of our
diversified business model. The turbulence we have seen in recent months only reinforces our commitment to
the strategy we outlined earlier this year to investors. While the economic outlook remains uncertain, I am
confident that we will continue to be the firm of choice for clients around the world who are looking to reshape
their businesses and rebuild a more resilient economy.”
- David M. Solomon, Chairman and Chief Executive Officer
Financial Summary
Net Revenues Net Earnings EPS
2Q $13.30 billion
2Q YTD $22.04 billion
2Q $2.42 billion
2Q YTD $3.64 billion
2Q $6.26
2Q YTD $9.36
Annualized ROE 1 Annualized ROTE 1 Book Value Per Share
2Q 11.1%
2Q YTD 8.4%
2Q 11.8%
2Q YTD 9.0%
2Q $227.31
YTD Growth 4.0%
NEW YORK, July 15, 2020 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $13.30 billion and
net earnings of $2.42 billion for the second quarter ended June 30, 2020. Net revenues were $22.04 billion and net earnings
were $3.64 billion for the first half of 2020.
Diluted earnings per common share (EPS) was $6.26 for the second quarter of 2020 compared with $5.81 for the second
quarter of 2019 and $3.11 for the first quarter of 2020, and was $9.36 for the first half of 2020 compared with $11.52 for the first
half of 2019.
Annualized return on average common shareholders’ equity (ROE)1 was 11.1% for the second quarter of 2020 and 8.4% for
the first half of 2020. Annualized return on average tangible common shareholders’ equity (ROTE)1 was 11.8% for the second
quarter of 2020 and 9.0% for the first half of 2020.
During the second quarter of 2020, the firm recorded net provisions for litigation and regulatory proceedings of $945 million,
which increased net provisions to $1.13 billion for the first half of 2020. These amounts reduced diluted EPS by $2.60 and
annualized ROE by 4.5 percentage points in the second quarter of 2020 and reduced diluted EPS by $3.15 and annualized
ROE by 2.8 percentage points in the first half of 2020.
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Goldman Sachs Reports
Second Quarter 2020 Earnings Results
Highlights
◾ Net revenues of $13.30 billion, 41% higher than the second quarter of 2019, were the firm’s second highest quarterly net
revenues.
◾ Investment Banking generated record quarterly net revenues of $2.66 billion, including record quarterly net revenues in
both Equity and Debt underwriting. The firm remained ranked #1 in worldwide announced and completed mergers and
acquisitions for the year-to-date.2 The firm also ranked #1 in worldwide equity and equity-related offerings for the year-to-
date.2
◾ Fixed Income, Currency and Commodities (FICC) generated quarterly net revenues of $4.24 billion, its highest quarterly
performance in nine years, reflecting continued strong client activity in intermediation and financing.
◾ Equities generated quarterly net revenues of $2.94 billion, its highest quarterly performance in eleven years, reflecting
strong performance in intermediation.
◾ Firmwide assets under supervision3,4 increased $239 billion during the quarter to a record $2.06 trillion.
◾ The firm continued to scale the digital consumer deposit platforms, as consumer deposits increased by a record $20 billion
in the second quarter of 2020 to $92 billion4.
◾ The firm formally launched its transaction banking business in the U.S., offering deposit-taking, payments, liquidity
management, and escrow services. During the quarter, deposits on the platform increased by $16 billion to $25 billion4.
◾ The firm’s Standardized common equity tier 1 capital ratio3 increased 110 basis points during the quarter to 13.6%4.
◾ The firm maintained a highly liquid balance sheet, as global core liquid assets3 averaged $290 billion4 for the second
quarter of 2020.
Quarterly Net Revenue Mix by Segment
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Goldman Sachs Reports
Second Quarter 2020 Earnings Results
Net Revenues
Net revenues were $13.30 billion for the second quarter of 2020, 41% higher than the
second quarter of 2019 and 52% higher than the first quarter of 2020. The increase
compared with the second quarter of 2019 reflected significantly higher net revenues
in Global Markets and Investment Banking and higher net revenues in Consumer &
Wealth Management, partially offset by lower net revenues in Asset Management.
The operating environment during the quarter continued to be impacted by the
COVID-19 pandemic, resulting in a deceleration in global economic activity and
elevated market volatility. Economic indicators generally improved as the quarter
progressed, following significant declines in March and April, as economies began to
reopen and central banks, along with governments, continued to implement monetary
easing measures and provide fiscal stimulus to support the economy. These
contributed to higher global equity prices and tighter credit spreads compared with the
end of the first quarter of 2020.
Net Revenues
$13.30 billion
Investment Banking
Net revenues in Investment Banking were $2.66 billion for the second quarter of 2020,
36% higher than the second quarter of 2019 and 22% higher than the first quarter of
2020. The increase compared with the second quarter of 2019 reflected significantly
higher net revenues in Underwriting, partially offset by a net loss in Corporate lending
and lower net revenues in Financial advisory.
The increase in Underwriting net revenues was due to significantly higher net
revenues in both Equity and Debt underwriting, reflecting a significant increase in
industry-wide volumes. The net loss in Corporate lending reflected the impact of
changes in credit spreads on hedges related to relationship lending activities. The
decrease in Financial advisory net revenues reflected a decrease in industry-wide
completed mergers and acquisitions transactions.
The firm’s investment banking transaction backlog3 decreased significantly compared
with the end of the first quarter of 2020.
Investment Banking
$2.66 billion
Financial Advisory $686 million
Underwriting $2.05 billion
Corporate Lending $(76) million
Global Markets
Net revenues in Global Markets were $7.18 billion for the second quarter of 2020,
93% higher than the second quarter of 2019 and 39% higher than the first quarter of
2020.
Net revenues in FICC were $4.24 billion, compared with $1.70 billion in the second
quarter of 2019. Net revenues in FICC intermediation were significantly higher,
reflecting significantly higher net revenues across all major businesses, particularly in
interest rate products, credit products and commodities. In addition, net revenues in
FICC financing were significantly higher, primarily driven by repurchase agreements.
Net revenues in Equities were $2.94 billion, 46% higher than the second quarter of
2019, due to significantly higher net revenues in Equities intermediation, reflecting
significantly higher net revenues in both cash products and derivatives, partially offset by
lower net revenues in Equities financing, reflecting lower average customer balances,
tighter spreads and a decrease in dividends.
Global Markets
$7.18 billion
FICC Intermediation $3.79 billion
FICC Financing $499 million
FICC $4.24 billion
Equities
Intermediation $2.20 billion
Equities Financing $742 million
Equities $2.94 billion
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Goldman Sachs Reports
Second Quarter 2020 Earnings Results
Asset Management
Net revenues in Asset Management were $2.10 billion for the second quarter of 2020,
compared with $2.55 billion for the second quarter of 2019 and $(96) million for the
first quarter of 2020. The decrease compared with the second quarter of 2019
reflected significantly lower net revenues in Equity investments, partially offset by
significantly higher net revenues in Lending and debt investments and slightly higher
Management and other fees from the firm’s institutional and third-party distribution
asset management clients. Incentive fees were essentially unchanged.
The decrease in Equity investments net revenues reflected significantly lower net
gains from investments in private equities, partially offset by significantly higher net
gains from investments in public equities. The increase in Lending and debt
investments net revenues reflected significantly higher net gains as corporate credit
spreads tightened during the quarter. The increase in Management and other fees
reflected the impact of higher average assets under supervision, partially offset by a
lower average effective fee due to shifts in the mix of client assets and strategies.
Asset Management
$2.10 billion
Management and
Other Fees $684 million
Incentive Fees $34 million
Equity Investments $924 million
Lending and Debt
Investments $459 million
Consumer & Wealth Management
Net revenues in Consumer & Wealth Management were $1.36 billion for the second
quarter of 2020, 9% higher than the second quarter of 2019 and 9% lower than the
first quarter of 2020.
Net revenues in Wealth management were $1.10 billion, 7% higher than the second
quarter of 2019, due to higher Management and other fees (including the impact of the
consolidation of GS Personal Financial Management5), primarily reflecting higher
average assets under supervision and higher transaction volumes. Net revenues in
Private banking and lending were lower, primarily reflecting lower interest rates, and
Incentive fees were essentially unchanged.
Net revenues in Consumer banking were $258 million, 19% higher than the second
quarter of 2019, as the second quarter of 2020 included credit card loans.
Consumer &
Wealth Management
$1.36 billion
Wealth Management $1.10 billion
Consumer Banking $258 million
Provision for Credit Losses
Provision for credit losses was $1.59 billion for the second quarter of 2020, compared
with $214 million for the second quarter of 2019 and $937 million for the first quarter of
2020. The increase compared with the second quarter of 2019 was primarily due to
significantly higher provisions related to wholesale loans and, to a lesser extent,
consumer loans, reflecting revisions to forecasts of expected deterioration in the
broader economic environment (incorporating the accounting for credit losses under
the Current Expected Credit Losses standard6). In addition, the increase in provisions
related to wholesale loans reflected the impact of individual impairments during the
quarter.
The firm’s allowance for credit losses was $4.39 billion as of June 30, 2020.
Provision for Credit Losses
$1.59 billion
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Goldman Sachs Reports Second Quarter 2020 Earnings Results
Operating Expenses
Operating expenses were $8.40 billion for the second quarter of 2020, 37% higher than the second quarter of 2019 and 30% higher than the first quarter of 2020. The firm’s efficiency ratio3 for the first half of 2020 was 67.4%, compared with 65.6% for the first half of 2019.
Operating Expenses
$8.40 billion
The increase in operating expenses compared with the second quarter of 2019 was primarily due to significantly higher compensation and benefits expenses (reflecting significantly higher net revenues) and significantly higher net provisions for litigation and regulatory proceedings. In addition, brokerage, clearing, exchange and distribution fees were higher (reflecting an increase in activity levels) and expenses related to consolidated investments, including impairments, were higher (increase was primarily in depreciation and amortization and occupancy expenses). The second quarter of 2020 also included higher technology expenses, higher expenses related to the firm’s credit card activities and the impact of the consolidation of GS Personal Financial Management5. These increases were partially offset by lower travel and entertainment expenses (included in market development expenses).
Net provisions for litigation and regulatory proceedings for the second quarter of 2020 were $945 million compared with $66 million for the second quarter of 2019.
Headcount increased 2% compared with the end of the first quarter of 2020.
YTD Efficiency Ratio
67.4%
Provision for Taxes
The effective income tax rate for the first half of 2020 increased to 21.9% from 10.0% for the first quarter of 2020, primarily due to a decrease in the impact of permanent tax benefits and an increase in provisions for non-deductible litigation in the first half of 2020 compared with the first quarter of 2020.
YTD Effective Tax Rate
21.9%
Other Matters
◾ On July 14, 2020, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $1.25 per common share to be paid on September 29, 2020 to common shareholders of record on September 1, 2020.
◾ During the quarter, the firm returned $450 million of capital in common stock dividends.3
◾ Global core liquid assets3 averaged $290 billion4 for the second quarter of 2020, compared with an average of $243 billion for the first quarter of 2020.
Declared Quarterly
Dividend Per Common Share
$1.25
Common Stock Dividends
$450 million
Average GCLA
$290 billion
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Goldman Sachs Reports
Second Quarter 2020 Earnings Results
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that
provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial
institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all
major financial centers around the world.
Cautionary Note Regarding Forward-Looking Statements
This press release 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, 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 indicated 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, see “Risk Factors” in Part II,
Item 1A of the firm’s Quarterly Report on Form 10-Q for the period ended March 31, 2020 and in Part I, Item 1A of the firm’s
Annual Report on Form 10-K for the year ended December 31, 2019.
Information regarding the firm’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio,
balance sheet data, global core liquid assets and VaR 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 about the firm’s investment banking transaction backlog also may constitute forward-looking statements. Such
statements are subject to the risk that transactions may be modified or not completed at all and associated net revenues may
not be realized or may be materially less than those currently expected. Important factors that could have such a result
include, for underwriting transactions, a decline or weakness in general economic conditions, an outbreak of hostilities,
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. For information about other
important factors that could adversely affect the firm’s investment banking transactions, see “Risk Factors” in Part II, Item 1A
of the firm’s Quarterly Report on Form 10-Q for the period ended March 31, 2020 and in Part I, Item 1A of the firm’s Annual
Report on Form 10-K for the year ended December 31, 2019.
Statements about the effects of the COVID-19 pandemic on the firm’s business, results, financial position and liquidity may
constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from
what is currently expected.
Conference Call
A conference call to discuss the firm’s financial results, outlook and related matters will be held at 9:30 am (ET). The call will
be open to the public. Members of the public who would like to listen to the conference call should dial 1-888-281-7154 (in the
U.S.) or 1-706-679-5627 (outside the U.S.). The number should be dialed at least 10 minutes prior to the start of the
conference call. The conference call will also be accessible as an audio webcast through the Investor Relations section of the
firm’s website, www.goldmansachs.com/investor-relations. There is no charge to access the call. For those unable to listen to
the live broadcast, a replay will be available on the firm’s website or by dialing 1-855-859-2056 (in the U.S.) or 1-404-537-
3406 (outside the U.S.) passcode number 64774224 beginning approximately three hours after the event. Please direct any
questions regarding obtaining access to the conference call to Goldman Sachs Investor Relations, via e-mail, at gs-investor-
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Goldman Sachs Reports
Second Quarter 2020 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
THREE MONTHS ENDED % CHANGE FROM
JUNE 30,
2020
MARCH 31,
2020
JUNE 30,
2019
MARCH 31,
2020
JUNE 30,
2019
INVESTMENT BANKING
Financial advisory $ 686 $ 781 $ 771 (12) % (11) %
Equity underwriting 1,057 378 476 180 122
Debt underwriting 990 583 514 70 93
Underwriting 2,047 961 990 113 107
Corporate lending (76) 442 187 N.M. N.M.
Net revenues 2,657 2,184 1,948 22 36
GLOBAL MARKETS
FICC intermediation 3,786 2,537 1,440 49 163
FICC financing 449 432 262 4 71
FICC 4,235 2,969 1,702 43 149
Equities intermediation 2,199 1,528 1,154 44 91
Equities financing 742 666 860 11 (14)
Equities 2,941 2,194 2,014 34 46
Net revenues 7,176 5,163 3,716 39 93
ASSET MANAGEMENT
Management and other fees 684 640 667 7 3
Incentive fees34 154 31 (78) 10
Equity investments 924 (22) 1,499 N.M. (38)
Lending and debt investments 459 (868) 351 N.M. 31
Net revenues 2,101 (96) 2,548 N.M. (18)
CONSUMER & WEALTH MANAGEMENT
Management and other fees 938 959 833 (2) 13
Incentive fees 10 69 13 (86) (23)
Private banking and lending 155 182 187 (15) (17)
Wealth management 1,103 1,210 1,033 (9) 7
Consumer banking 258 282 216 (9) 19
Net revenues 1,361 1,492 1,249 (9) 9
Total net revenues $ 13,295 $ 8,743 $ 9,461 52 41
Geographic Net Revenues (unaudited)3
$ in millions
THREE MONTHS ENDED
JUNE 30,
2020
MARCH 31,
2020
JUNE 30,
2019
Americas $ 8,289 $ 5,171 $ 5,652
EMEA 3,453 2,108 2,689
Asia 1,553 1,464 1,120
Total net revenues $ 13,295 $ 8,743 $ 9,461
Americas 62% 59% 60%
EMEA 26% 24% 28%
Asia 12% 17% 12%
Total 100% 100% 100%
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Goldman Sachs Reports
Second Quarter 2020 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
SIX MONTHS ENDED % CHANGE FROM
JUNE 30,
2020
JUNE 30,
2019
JUNE 30,
2019
INVESTMENT BANKING
Financial advisory $ 1,467 $ 1,645 (11) %
Equity underwriting 1,435 738 94
Debt underwriting 1,573 996 58
Underwriting 3,008 1,734 73
Corporate lending 366 315 16
Net revenues 4,841 3,694 31
GLOBAL MARKETS
FICC intermediation 6,323 3,312 91
FICC financing 881 628 40
FICC 7,204 3,940 83
Equities intermediation 3,727 2,315 61
Equities financing 1,408 1,501 (6)
Equities 5,135 3,816 35
Net revenues 12,339 7,756 59
ASSET MANAGEMENT
Management and other fees 1,324 1,274 4
Incentive fees 188 61 N.M.
Equity investments 902 2,304 (61)
Lending and debt investments (409) 702 N.M.
Net revenues 2,005 4,341 (54)
CONSUMER & WEALTH MANAGEMENT
Management and other fees 1,897 1,627 17
Incentive fees 79 41 93
Private banking and lending 337 390 (14)
Wealth management 2,313 2,058 12
Consumer banking 540 419 29
Net revenues 2,853 2,477 15
Total net revenues $ 22,038 $ 18,268 21
Geographic Net Revenues (unaudited)3
$ in millions
SIX MONTHS ENDED
JUNE 30,
2020
JUNE 30,
2019
Americas $ 13,460 $ 10,897
EMEA 5,561 5,148
Asia 3,017 2,223
Total net revenues $ 22,038 $ 18,268
Americas 61% 60%
EMEA 25% 28%
Asia 14% 12%
Total 100% 100%
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Goldman Sachs Reports
Second Quarter 2020 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings (unaudited)
In millions, except per share amounts and headcount
THREE MONTHS ENDED % CHANGE FROM
JUNE 30,
2020
MARCH 31,
2020
JUNE 30,
2019
MARCH 31,
2020
JUNE 30,
2019
REVENUES
Investment banking $ 2,733 $ 1,742 $ 1,761 57 % 55 %
Investment management 1,635 1,768 1,520 (8) 8
Commissions and fees 875 1,020 808 (14) 8
Market making 5,787 3,682 2,479 57 133
Other principal transactions 1,321 (782) 1,822 N.M. (27)
Total non-interest revenues 12,351 7,430 8,390 66 47
Interest income 3,034 4,750 5,760 (36) (47)
Interest expense 2,090 3,437 4,689 (39) (55)
Net interest income 944 1,313 1,071 (28) (12)
Total net revenues 13,295 8,743 9,461 52 41
Provision for credit losses 1,590 937 214 70 N.M.
OPERATING EXPENSES
Compensation and benefits 4,478 3,235 3,317 38 35
Brokerage, clearing, exchange and distribution fees 945 975 823 (3) 15
Market development 89 153 186 (42) (52)
Communications and technology 345 321 290 7 19
Depreciation and amortization 499 437 399 14 25
Occupancy 233 238 234 (2) –
Professional fees 311 347 302 (10) 3
Other expenses 1,500 752 569 99 164
Total operating expenses 8,400 6,458 6,120 30 37
Pre-tax earnings 3,305 1,348 3,127 145 6
Provision for taxes 882 135 706 N.M. 25
Net earnings 2,423 1,213 2,421 100 –
Preferred stock dividends 176 90 223 96 (21)
Net earnings applicable to common shareholders $ 2,247 $ 1,123 $ 2,198 100 2
EARNINGS PER COMMON SHARE
Basic3$ 6.29 $ 3.12 $ 5.86 102 % 7 %
Diluted $ 6.26 $ 3.11 $ 5.81 101 8
AVERAGE COMMON SHARES
Basic 355.7 358.0 374.5 (1) (5)
Diluted 359.1 361.1 378.0 (1) (5)
SELECTED DATA AT PERIOD-END
Common shareholders’ equity $ 80,876 $ 81,176 $ 79,689 – 1
Basic shares3355.8 355.7 372.2 – (4)
Book value per common share $ 227.31 $ 228.21 $ 214.10 – 6
Headcount 39,100 38,500 35,600 2 10
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Goldman Sachs Reports
Second Quarter 2020 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings (unaudited)
In millions, except per share amounts
SIX MONTHS ENDED % CHANGE FROM
JUNE 30,
2020
JUNE 30,
2019
JUNE 30,
2019
REVENUES
Investment banking$ 4,475 $ 3,379 32 %
Investment management3,403 2,956 15
Commissions and fees1,895 1,553 22
Market making9,469 5,202 82
Other principal transactions 539 2,889 (81)
Total non-interest revenues 19,781 15,979 24
Interest income7,784 11,357 (31)
Interest expense 5,527 9,068 (39)
Net interest income 2,257 2,289 (1)
Total net revenues 22,038 18,268 21
Provision for credit losses 2,527 438 N.M.
OPERATING EXPENSES
Compensation and benefits7,713 6,576 17
Brokerage, clearing, exchange and distribution fees1,920 1,585 21
Market development242 370 (35)
Communications and technology666 576 16
Depreciation and amortization936 767 22
Occupancy471 459 3
Professional fees658 600 10
Other expenses 2,252 1,051 114
Total operating expenses 14,858 11,984 24
Pre-tax earnings 4,653 5,846 (20)
Provision for taxes 1,017 1,174 (13)
Net earnings 3,636 4,672 (22)
Preferred stock dividends 266 292 (9)
Net earnings applicable to common shareholders $ 3,370 $ 4,380 (23)
EARNINGS PER COMMON SHARE
Basic3 $ 9.40 $ 11.59 (19) %
Diluted $ 9.36 $ 11.52 (19)
AVERAGE COMMON SHARES
Basic 356.8 377.1 (5)
Diluted 360.1 380.2 (5)
10
Goldman Sachs Reports
Second Quarter 2020 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)4
$ in billions
AS OF
JUNE 30,
2020
MARCH 31,
2020
ASSETS
Cash and cash equivalents $ 132 $ 106
Collateralized agreements 274 254
Customer and other receivables 107 121
Trading assets 398 375
Investments 76 69
Loans 117 128
Other assets 38 37
Total assets $ 1,142 $ 1,090
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits $ 268 $ 220
Collateralized financings 131 147
Customer and other payables 199 213
Trading liabilities 163 137
Unsecured short-term borrowings 44 37
Unsecured long-term borrowings 223 226
Other liabilities 22 18
Total liabilities 1,050 998
Shareholders’ equity 92 92
Total liabilities and shareholders’ equity $ 1,142 $ 1,090
Capital Ratios and Supplementary Leverage Ratio (unaudited)3,4
$ in billions
AS OF
JUNE 30,
2020
MARCH 31,
2020
Common equity tier 1 capital $ 76.8 $ 74.6
STANDARDIZED CAPITAL RULES
Risk-weighted assets $ 563 $ 594
Common equity tier 1 capital ratio 13.6% 12.5%
ADVANCED CAPITAL RULES
Risk-weighted assets $ 620 $ 606
Common equity tier 1 capital ratio 12.4% 12.3%
SUPPLEMENTARY LEVERAGE RATIO
Supplementary leverage ratio 6.7% 7 5.9%
Average Daily VaR (unaudited)3,4
$ in millions
THREE MONTHS ENDED
JUNE 30,
2020
MARCH 31,
2020
RISK CATEGORIES
Interest rates $ 98 $ 60
Equity prices 74 41
Currency rates 39 18
Commodity prices 24 11
Diversification effect (113) (49)
Total $ 122 $ 81
11
Goldman Sachs Reports
Second Quarter 2020 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Assets Under Supervision (unaudited)3,4
$ in billions
AS OF
JUNE 30,
2020
MARCH 31,
2020
JUNE 30,
2019
SEGMENT
Asset Management $ 1,499 $ 1,309 $ 1,171
Consumer & Wealth Management 558 509 489
Total AUS $ 2,057 $ 1,818 $ 1,660
ASSET CLASS
Alternative investments $ 179 $ 178 $ 174
Equity 394 335 350
Fixed income 817 771 749
Total long-term AUS 1,390 1,284 1,273
Liquidity products 667 534 387
Total AUS $ 2,057 $ 1,818 $ 1,660
THREE MONTHS ENDED
JUNE 30,
2020
MARCH 31,
2020
JUNE 30,
2019
ASSET MANAGEMENT
Beginning balance $ 1,309 $ 1,298 $ 1,117
Net inflows / (outflows):
Alternative investments (2) (1) 4
Equity 3 2 4
Fixed income 6 7 10
Total long-term AUS net inflows / (outflows) 7 8 18 8
Liquidity products 121 66 15
Total AUS net inflows / (outflows) 128 74 33
Net market appreciation / (depreciation) 62 (63) 21
Ending balance $ 1,499 $ 1,309 $ 1,171
CONSUMER & WEALTH MANAGEMENT
Beginning balance $ 509 $ 561 $ 482
Net inflows / (outflows):
Alternative investments – – (3)
Equity (1) 1 –
Fixed income – (8) 2
Total long-term AUS net inflows / (outflows) (1) (7) (1)
Liquidity products 12 6 (3)
Total AUS net inflows / (outflows) 11 (1) (4)
Net market appreciation / (depreciation) 38 (51) 11
Ending balance $ 558 $ 509 $ 489
FIRMWIDE
Beginning balance $ 1,818 $ 1,859 $ 1,599
Net inflows / (outflows):
Alternative investments (2) (1) 1
Equity 2 3 4
Fixed income 6 (1) 12
Total long-term AUS net inflows / (outflows) 6 1 17
Liquidity products 133 72 12
Total AUS net inflows / (outflows) 139 73 29
Net market appreciation / (depreciation) 100 (114) 32
Ending balance $ 2,057 $ 1,818 $ 1,660
12
Goldman Sachs Reports
Second Quarter 2020 Earnings Results
Footnotes
1. Annualized ROE is calculated by dividing annualized net earnings applicable to common shareholders by average monthly common shareholders’ equity.
Annualized ROTE is calculated by dividing annualized net earnings 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). Management believes that ROTE is meaningful because it measures the performance of businesses consistently, whether they were
acquired or developed internally, and that tangible common shareholders’ equity is meaningful because it is a measure that the firm and investors use to
assess capital adequacy. ROTE and tangible common shareholders’ equity 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 common shareholders’ equity to average tangible common shareholders’ equity:
AVERAGE FOR THE
Unaudited, $ in millions
THREE MONTHS ENDED
JUNE 30, 2020
SIX MONTHS ENDED
JUNE 30, 2020
Total shareholders’ equity $ 92,315 $ 91,249
Preferred stock (11,203) (11,203)
Common shareholders’ equity 81,112 80,046
Goodwill and identifiable intangible assets (4,806) (4,814)
Tangible common shareholders’ equity $ 76,306 $ 75,232
2. Dealogic – January 1, 2020 through June 30, 2020.
3. 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 March 31, 2020: (i) investment banking transaction backlog – see
“Results of Operations – Investment Banking” (ii) assets under supervision – see “Results of Operations – Assets Under Supervision” (iii) efficiency ratio –
see “Results of Operations – Operating Expenses” (iv) share repurchase program – see “Equity Capital Management and Regulatory Capital – Equity
Capital Management” (v) global core liquid assets – see “Risk Management – Liquidity Risk Management” (vi) basic shares – see “Balance Sheet and
Funding Sources – Balance Sheet Analysis and Metrics” and (vii) VaR – see “Risk Management – Market 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 March 31, 2020: (i) risk-based capital ratios and the supplementary leverage ratio – see Note 20 “Regulation and
Capital Adequacy” (ii) geographic net revenues – see Note 25 “Business Segments” and (iii) unvested share-based awards that have non-forfeitable
rights to dividends or dividend equivalents in calculating basic EPS – see Note 21 “Earnings Per Common Share.”
4. Represents a preliminary estimate for the second quarter of 2020 and may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended
June 30, 2020.
5. GS Personal Financial Management, formerly United Capital Financial Partners, Inc., was acquired by the firm in the third quarter of 2019.
6. In the first quarter of 2020, the firm adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on
Financial Instruments.” For further information about ASU No. 2016-13, see Note 3 “Significant Accounting Policies” in Part I, Item 1 “Financial
Statements (Unaudited)” in the firm’s Quarterly Report on Form 10-Q for the period ended March 31, 2020.
7. In the second quarter of 2020, the U.S. Federal Reserve revised the calculation of the supplementary leverage ratio to exclude U.S. Treasury securities
and cash held at the U.S. Federal Reserve. The estimated impact of this change was an increase in the firm’s supplementary leverage ratio of
approximately 0.8 percentage points.
8. Net inflows in assets under supervision for the second quarter of 2019 included $13 billion of inflows (substantially all in equity and fixed income assets) in
connection with the acquisition of Rocaton Investment Advisors, which was included in the Asset Management segment.
13
Ex
hibit 9
9.2
Second
Quarter 2
02
0 E
arnings R
esults Presentatio
n July 1
5, 2
020E
xh
ibit 9
9.2
Seco
nd
Quarter 202
0 E
arning
s R
esu
lts P
resen
tatio
n July
15
, 202
0
Re
sult
s S
napshot E
PS
Net E
arning
s N
et R
even
ues 2
Q $
2.4
2 billio
n 2Q
$6.26 2
Q $
13
.30 b
illi
on 2
Q Y
TD
$3
.64
billi
on 2
Q Y
TD
$9.36
2Q
YT
D $22
.04
bil
lio
n 1
1 I
mpact o
f L
iti
gation A
nnualized R
OT
E A
nn
ualiz
ed R
OE
2Q
11.8%
2Q
EPS
/ Y
TD
EP
S -$
2.60 /
-$
3.15
2Q
11.1%
2Q
Y
TD
9.0
% 2
Q Y
TD
2Q
R
OE
/ Y
TD
RO
E -4.5pp /
-2
.8pp 8.4%
Highlig
hts H
ighest q
uarterly F
IC
C n
et r
evenues i
n 9
years Second h
ighest q
uarterly
net r
evenu
es H
ig
hest q
uarterly E
quiti
es n
et r
ev
enu
es i
n 1
1 y
ears 3
,4
Reco
rd A
US R
eco
rd
qu
arterly
In
vestm
en
t B
anking
net r
ev
en
ues 2
#1 in
A
nn
ou
nced
an
d C
om
plete
d M
&A
3
4 S
tan
da
rd
ized
CE
T1 r
atio
in
creased
11
0b
ps Q
oQ
to
13
.6
% 2
#1 in
E
quity
an
d eq
uit
y-related
offering
s 1
Resu
lts S
nap
sh
ot
EP
S N
et
Earn
ings N
et R
even
ues 2Q
$2
.4
2 b
ill
io
n 2
Q $
6.2
6 2
Q $
13.3
0 billion
2Q
Y
TD
$3.6
4 b
illio
n 2Q
Y
TD
$9
.36
2Q
YT
D $
22
.04
bill
io
n 1
1 Im
pact o
f L
itiga
tion
An
nu
ali
zed R
OT
E A
nn
ualized
RO
E 2
Q 1
1.8
% 2Q
E
PS /
YT
D E
PS
-$
2.6
0 /
-$
3.1
5 2
Q 1
1.1
% 2
Q Y
TD
9.0
% 2
Q Y
TD
2Q
RO
E / Y
TD
RO
E -
4.5
pp
/ -
2.8
pp
8.4
% H
igh
lig
hts H
ighest
qua
rterly
FIC
C n
et r
ev
enu
es i
n 9
years S
eco
nd h
igh
est qu
arterly
net r
even
ues H
ig
hest q
uarte
rly
Equ
ities n
et r
ev
en
ues i
n 1
1 ye
ars 3
,4 R
ecord
AU
S R
eco
rd q
uarterly
In
vestm
en
t B
an
kin
g net rev
en
ues 2 #
1 i
n A
nn
ou
nced and
C
om
pleted
M&
A 3
4 Stan
dard
ized
CE
T1 r
atio
in
creased
11
0bps Q
oQ
to 1
3.6
% 2
#1
in E
qu
ity
and e
quity-re
lated offe
ring
s 1
Macro Persp
ectives E
con
om
ic F
un
dam
entals
Macro F
acto
rs N
ear-term
Co
ntra
cti
on F
oll
ow
ed
by
Re
cov
ery
CO
VID
-1
9 &
Sh
utd
ow
n I
mp
act G
DP
Grow
th: U
.S. G
lob
al 2
020
| 20
21 -
4.6%
| +
5.8%
-3
.4%
| +6.2
% E
conom
ies B
eginning to
Reo
pen C
hallengin
g F
undam
en
tals &
Im
pro
vin
g Sentim
ent U
nem
plo
ym
ent
& L
ow
CE
O C
onfidence Sh
ape o
f R
ecovery S
pend
ing B
etter T
han R
ising
Investo
r C
ontinu
ed M
onetary &
Fiscal Stim
ulu
s U
nk
now
n E
xp
ected
Sen
tim
ent D
esp
ite e
co
no
mic chall
en
ges, m
ark
et rebo
unds d
rov
e clie
nt a
cti
vity an
d i
mp
ro
vin
g s
en
tim
ent
Vola
tility
&
V
olu
mes R
ecovery i
n C
redit
Spread
s N
orm
alized
in R
em
ain E
levated E
quit
y M
arkets th
e U
.S. a
nd E
uro
pe V
IX
: -
43
% Q
oQ
| +102%
YoY
U.S
. IG
Z
-Spread:
-85b
ps Q
oQ
S&
P 500: +
20%
in 2Q
20 U
.S. C
ash E
quity
V
olum
es: +
78%
YoY
EU
R IG
Z
-Spread:
-1
00
bp
s Q
oQ
MS
CI W
orld
: +
19
% i
n 2
Q2
0 2
20
20
an
d 2
02
1 e
sti
mated
real
gro
ss d
om
estic
p
ro
du
ct (
GD
P) g
ro
wth
per G
old
man
Sachs R
esearch
Macro
Perspectives E
conom
ic F
undam
entals M
acro F
actors N
ear-term
Contractio
n F
ollo
wed b
y R
ecove
ry C
OV
ID
-19 &
Shutd
ow
n I
mpact G
DP
Grow
th
: U
.S. G
lob
al 2
02
0 | 2
02
1 -
4.6
% | +5
.8
% -
3.4
% | +
6.2
% E
co
nom
ies B
eg
inn
in
g t
o R
eo
pen C
hallen
gin
g F
un
dam
en
tals &
Im
pro
ving
Sen
tim
en
t U
nem
ploy
men
t &
Lo
w C
EO
Co
nfid
ence Sh
ap
e o
f R
eco
very
Spe
nd
in
g B
etter T
han
Risin
g I
nv
esto
r C
ontin
ued
Mon
etary
&
Fiscal Stim
ulu
s U
nk
now
n E
xp
ected S
entim
en
t D
espite e
cono
mic ch
all
en
ges, m
arket rebou
nds d
rove clie
nt acti
vity and
im
pro
vin
g sen
tim
ent V
olatility &
V
olu
mes R
ecove
ry i
n C
redit S
pread
s N
orm
ali
zed in
R
em
ain E
lev
ate
d E
quity
M
ark
ets the U
.S. and E
urope V
IX
: -
43%
Qo
Q | +
102%
Yo
Y U
.S. IG
Z
-Spread:
-85b
ps Q
oQ
S&
P 5
00
: +
20%
in
2Q
20 U
.S. C
ash E
qu
ity
V
olum
es: +
78%
YoY
EU
R I
G Z
-Spread: -100
bps Q
oQ
MSC
I W
orld
: +
19
% i
n 2
Q2
0 2
20
20 a
nd 202
1 e
sti
mated
real g
ross d
om
estic
pro
duct (
GD
P) g
row
th p
er G
oldm
an
Sach
s R
esearch
Financia
l O
verv
iew
Fin
ancial R
esults Financial O
verview
Highli
ghts v
s. n
2Q
20 n
et rev
enues w
ere signific
antly
hig
her Y
oY
, r
eflecting signif
icantl
y h
igher n
et r
eve
nu
es i
n $
in
milli
ons, v
s. v
s. 2
Q20 2Q
19 G
lobal M
arkets a
nd
Investm
ent B
anking a
nd hig
her n
et r
evenues i
n C
on
su
mer &
W
ealth
exc
ept per sh
are am
ou
nts 2Q
20
1Q
20
2Q
19
YT
D Y
TD
Manag
em
ent, p
arti
ally
offset by low
er n
et r
ev
enues i
n A
sset M
anagem
ent
Investm
ent B
ankin
g $ 2
,657 2
2%
36%
$ 4
,841 31%
n 2
Q20 p
rovisio
n f
or credit l
osse
s w
as signif
ican
tly
higher Y
oY
, prim
arily
due to: G
lobal M
arkets 7
,176 39%
93%
12,339
59%
— R
evisions t
o f
ore
casts o
f e
xpected d
eterio
ratio
n in
th
e broader e
conom
ic environ
men
t (
inco
rp
orating
the acco
un
tin
g f
or cred
it l
osse
s u
nd
er the
Cu
rren
t E
xp
ected
Cred
it
Losses 5
stan
dard
), w
hic
h resulted
in
in
creased
pro
vis
ion
s for w
ho
lesale l
oan
s a
nd
, t
o a
le
sser A
sse
t M
an
ag
em
en
t 2,1
01
N
.M. -
18
% 2
,00
5 -
54
% e
xten
t, con
sum
er l
oans C
on
su
mer &
Wealth M
an
ag
em
ent 1,3
61 -9%
9%
2,8
53 1
5%
— I
nd
ivid
ual i
mp
airm
en
ts related
to
wh
olesale l
oan
s d
urin
g the
qu
arter n
2Q
20
op
erati
ng
ex
pen
ses i
ncreased
sig
nificantly
Y
oY
, p
rim
aril
y d
ue to
: N
et rev
en
ues $ 1
3,2
95 5
2%
41
% $
22
,03
8 2
1%
—
Sig
nificantly
h
igh
er c
om
pe
nsatio
n a
nd
be
nefits e
xp
en
ses, r
efle
cti
ng
sig
nifican
tly
high
er n
et r
ev
en
ues P
rov
isio
n f
or cred
it l
osses 1
,590 7
0%
N
.M. 2
,527 N
.M
. —
Signif
icantly
higher n
et p
rovisions f
or lit
ig
ation and regulatory p
roceedings O
perating e
xpenses 8
,40
0 3
0%
37
% 14
,85
8 2
4%
— H
igher ex
penses related
to b
rokerage,
clearing,
exchange and
distributi
on f
ees, r
eflecting
an i
ncrease in
acti
vity l
ev
els
Pre-tax e
arnin
gs 3,3
05 1
45%
6%
4,6
53
-20%
— H
igh
er expe
nses r
elated t
o c
on
solidated in
vestm
ents, in
cluding im
pairm
en
ts N
et earnings 2
,423 100%
-%
3,6
36 -
22
% 2
Q20
Net e
arnings t
o c
om
mon $
2
,24
7 1
00%
2%
$ 3
,37
0 -
23%
Liti
gation Im
pact 2
Q20 Y
TD
Dilute
d E
PS $ 6
.26 1
01%
8%
$ 9.36 -1
9%
Dilu
ted E
PS
$ -
2.6
0 $
-3.15 1 R
OE
11
.1%
5.4pp
-p
p 8
.4%
-2.7
pp R
OE
-4.5
pp -
2.8
pp 1
R
OT
E 11.8%
5.8p
p
0.1pp 9.0
% -2.7
pp R
OT
E -
4.8
pp -
2.9
pp 3
Efficie
ncy
R
atio
63
.2%
-10.7
pp -
1.5pp 67.4%
1.8pp E
fficien
cy
Ratio
+7.1
pp +
5.1
pp 3Financial O
verview
Fina
ncial R
esults
Fin
ancial O
verview
H
igh
lig
hts vs. n 2Q
20 n
et
revenu
es w
ere signif
icantl
y higher Y
oY
, r
efle
cting s
ignificantly h
igher n
et r
evenues i
n $
in
m
illio
ns, v
s. v
s. 2
Q20 2
Q19 G
lobal M
arkets and Inv
estm
ent B
ank
ing
and higher n
et r
evenues i
n C
onsum
er &
Wealth ex
cep
t p
er share a
mounts 2Q
20 1Q
20 2
Q19 Y
TD
Y
TD
Managem
ent, p
artia
lly o
ffset b
y l
ow
er net revenues in
A
sset M
an
agem
en
t I
nve
stm
ent B
ank
ing $
2,657
22
% 3
6%
$ 4,8
41 3
1%
n 2Q
20 pro
vis
ion fo
r c
redit
lo
sses w
as s
ig
nificantly high
er Y
oY
, p
rim
arily
du
e t
o: G
lobal M
arkets 7,1
76 3
9%
93%
12,3
39 5
9%
— R
evis
ions to forecasts of expected
de
terioration in t
he b
roader e
co
nom
ic envir
onm
ent (
in
corpo
rating t
he a
ccounting for c
redit
lo
sses under t
he C
urren
t E
xpe
cte
d C
redit L
osses 5 s
tandard ), w
hich r
esulte
d in
increased p
ro
visions f
or w
ho
lesale lo
an
s an
d, t
o a
lesser A
sset M
an
ag
em
en
t 2
,10
1 N
.M. -
18
% 2
,00
5 -5
4%
exte
nt, con
su
mer l
oan
s C
onsu
mer &
Wealth
Man
ag
em
en
t 1
,36
1 -
9%
9%
2,8
53
15
% —
In
div
idu
al i
mp
air
men
ts r
ela
ted
to
w
ho
lesale loan
s d
urin
g t
he q
uarte
r n
2
Q2
0 op
eratin
g ex
pen
ses i
ncreased s
ign
ifican
tly Y
oY
, prim
arily
d
ue to
: N
et
re
ven
ues $
13
,29
5 5
2%
4
1%
$ 2
2,03
8 21%
— S
ignificantly h
igher c
om
pensation and b
enefits expenses, reflectin
g signific
antly h
igher ne
t revenues Pro
vis
ion
for c
red
it lo
sses 1
,590 7
0%
N.M
. 2,527 N
.M. —
Sig
nificantly h
igher n
et p
ro
vis
ions for l
itig
atio
n a
nd r
eg
ulatory proceedings O
perati
ng e
xpenses 8
,400 3
0%
37%
14,8
58
24%
—
H
igher e
xpen
ses r
ela
ted
to
brok
erage, c
learin
g, e
xchang
e a
nd
distrib
ution fees,
reflecti
ng a
n in
crease in activity
lev
els Pre-tax e
arn
in
gs 3
,305 1
45%
6
% 4
,653 -2
0%
—
H
ig
her e
xp
enses related t
o c
onso
lidated investm
ents, i
nclu
ding im
pairm
ents N
et
earnings 2,42
3 10
0%
-%
3,636 -2
2%
2Q
20 N
et earnings t
o c
om
mon
$ 2
,247
100
% 2%
$ 3
,370
-2
3%
L
itig
ation
Im
pact 2
Q20 Y
TD
D
ilu
ted
EP
S $
6.26
101%
8%
$ 9.36 -
19%
Dilu
ted E
PS
$ -2.6
0 $ -3.15 1 R
OE
11.1%
5.4pp -pp 8
.4%
-2.7
pp R
OE
-4.5pp -2.8
pp 1
R
OT
E 11.8%
5.8pp 0.1pp 9.0
% -2.7pp R
OT
E -4.8
pp -
2.9
pp 3
Efficiency R
atio 63.2
% -10.7
pp -
1.5
pp 6
7.4
% 1.8
pp E
fficiency R
atio +
7.1
pp +
5.1
pp 3
In
vestm
ent B
an
kin
g I
nv
estm
ent B
ankin
g H
ighlig
hts F
ina
ncial R
esults
n 2
Q20 n
et r
evenue
s w
ere s
ign
ifican
tly h
igh
er Y
oY
vs. v
s. v
s. 2
Q2
0 2
Q19 —
Fin
ancial a
dv
isory
ne
t revenues w
ere low
er,
reflectin
g a
decrease i
n i
ndu
stry-w
ide $ i
n m
ill
ion
s 2
Q20 1
Q20
2Q
19
Y
TD
YT
D com
pleted m
ergers a
nd
acq
uisit
ions t
ransactions $
686 -
12%
-11%
$ 1,467 -11
% Finan
cial a
dvisory —
U
nderw
riting ne
t revenu
es w
ere sig
nif
ican
tly h
ig
her, r
eflectin
g r
ecord
net rev
enu
es in
bo
th
Eq
uity
an
d D
eb
t u
nd
erw
ritin
g, reflecting a s
ig
nifican
t i
ncre
ase i
n i
ndu
stry-w
ide volum
es E
qu
ity u
nderw
ritin
g 1
,057 180
% 1
22%
1,435
94
% —
Co
rporate l
endin
g results w
ere signific
antly l
ow
er, r
eflecting t
he i
mpa
ct
of ch
ang
es i
n c
red
it sp
read
s o
n h
ed
ges (2
Q2
0 net l
oss of $
200
mill
io
n) related
to
relatio
nsh
ip
len
ding
activ
ities D
eb
t u
nd
erw
ritin
g 9
90
70
% 9
3%
1,57
3 58
% n
2Q
20
prov
isio
n f
or cred
it lo
sses w
as sig
nif
ican
tly
hig
her Y
oY
, r
eflecting
upd
ate
d econom
ic f
orecasts a
nd h
igher im
pairm
ents related t
o r
elati
onship a
nd m
iddle-m
arket l
ending U
nderw
riting
2
,04
7 1
13%
10
7%
3,0
08 7
3%
n 2Q
20
op
eratin
g e
xp
en
ses w
ere s
ig
nifican
tly h
igh
er Y
oY
, prim
arily d
ue to
sig
nificantly h
igh
er n
et p
rovisio
ns for l
iti
gation and r
egulatory proceedings a
nd c
om
pensation and benefits expense
s C
orporate l
ending -76 N
.M
. N
.M. 3
66 1
6%
— L
iti
gation
ex
pe
nse r
ed
uc
ed 2
Q20
R
OE
by
16
.2p
p and 2
Q2
0 Y
TD
RO
E b
y 1
0.0
pp
Net r
ev
enues 2
,657 2
2%
3
6%
4,841 3
1%
n T
he firm
form
all
y l
aunch
ed i
ts t
ransaction ban
king b
usiness i
n t
he U
.S. and i
ncreased d
eposits
4 b
y $1
6 billion
to
$25 bil
lion during
the q
uarter P
rovision
for c
redit l
osses 819 32%
N.M
. 1,44
1 N
.M. 3
n O
verall b
acklog
decreased s
ignificantly
Q
oQ
, a
cross advisory, eq
uity
un
derw
riti
ng a
nd d
ebt u
nd
erw
ritin
g O
peratin
g expense
s 1
,69
6 4
5%
62%
2,8
65 39%
Investm
ent B
anking
Net R
evenues ($
in m
illio
ns) P
re-tax e
arn
ings $ 1
42 -
64%
-83%
$ 5
35 -
64
% $
2,65
7 $2,184
$2,0
64 $
99
0 $
1,94
8 $ 6
4 -
82%
-90
% $
418 -
64
% N
et e
arn
in
gs $
1,8
41
$44
2 $
232 $187 $2
54 $
599 $
51
4 $
41 -
88
% -
93%
$
384 -
66%
$583 N
et e
arnings t
o c
om
mon $
524 $
1,0
57 $
378 $
476 $
378 $366 $ 11,1
32 -2%
-4%
$ 11,1
76 3%
Average
com
mon e
quity $855 $771 $
781 $
697 $
686 R
eturn on av
erag
e com
mon equit
y 1
.5%
-1
0.6
pp -
19.3pp 6.9%
-1
4.1
pp -
$76 2Q
19 3Q
19 4
Q19 1
Q20 2
Q20 4 F
inancial a
dvisory E
quity
underw
riting D
ebt underw
riting C
orpora
te lending
Investm
ent B
anking In
vestm
en
t B
an
kin
g H
ighlig
hts Financial
Results n
2Q
20 net revenues w
ere significantly h
igher Y
oY
vs.
vs.
vs.
2Q
20 2
Q19 —
Fina
ncial advisory n
et r
evenues w
ere l
ow
er, r
eflecting a d
ecrease in indu
stry-w
ide $
in m
illio
ns 2
Q20 1Q
20 2
Q19 Y
TD
Y
TD
co
mpleted m
erg
ers and a
cquisitio
ns transaction
s $
686 -1
2%
-1
1%
$
1,4
67
-1
1%
Finan
cial a
dv
iso
ry
— U
nd
erw
rit
in
g n
et r
ev
en
ues w
ere s
ig
nifican
tly h
igh
er, reflectin
g r
eco
rd n
et r
even
ues i
n b
oth
E
qu
ity
an
d D
eb
t u
nd
erw
ritin
g, r
eflectin
g a
signific
ant in
crease in ind
ustry-w
ide v
olu
mes E
qu
ity u
nd
erw
ritin
g 1
,05
7 1
80
% 1
22
% 1
,43
5 9
4%
— C
orp
orate le
nd
ing
resu
lts
were s
ig
nifican
tly
lo
wer, reflectin
g t
he im
pact o
f c
han
ges i
n cred
it s
preads o
n hed
ges (
2Q
20
net l
oss o
f $
200
m
illio
n) r
elate
d to relatio
nsh
ip lend
in
g a
ctiv
ities D
eb
t u
nderw
ritin
g 99
0 70
% 9
3%
1
,573
58%
n 2
Q2
0 prov
ision
for c
red
it lo
sses w
as s
ig
nifican
tly h
igh
er Y
oY
, reflectin
g u
pd
ated
eco
no
mic fo
recasts and hig
her i
mpa
irm
ents r
ela
ted to
relationship and m
iddle-m
arket le
nding U
nderw
rit
ing 2
,04
7 1
13
% 1
07%
3,0
08 7
3%
n
2Q
20
ope
rating ex
penses w
ere sign
ific
antly
high
er Y
oY
, p
rim
arily d
ue t
o sign
ific
antly h
igher ne
t p
rovisio
ns f
or litiga
tio
n a
nd
reg
ulato
ry
pro
cee
din
gs and
com
pen
satio
n a
nd
ben
efits ex
pen
ses C
orp
orate lendin
g -
76 N
.M. N
.M. 3
66
16
% —
L
itigatio
n e
xp
en
se red
uced 2
Q2
0 R
OE
b
y 1
6.2
pp
an
d 2
Q2
0 Y
TD
RO
E b
y 1
0.0
pp
Net r
ev
en
ues 2
,6
57
2
2%
36
% 4
,84
1 3
1%
n T
he f
irm
form
ally launched it
s transac
tio
n b
anking busin
ess i
n t
he U
.S. a
nd i
ncreased d
eposits 4 by
$16
bill
ion t
o $
25
bill
ion d
uring t
he q
uarter Provisio
n f
or cre
dit l
osses 8
19
32%
N
.M. 1
,441
N.M
. 3 n O
verall b
acklog d
ecreased
signific
an
tly
QoQ
, across a
dv
isory, e
qu
ity u
nderw
ritin
g a
nd
deb
t u
nd
erw
ritin
g O
pera
tin
g e
xp
en
ses 1
,69
6 4
5%
62%
2,8
65
39
% In
vestm
en
t B
an
king
N
et
Revenues (
$ i
n m
ill
io
ns) P
re-ta
x earnings $ 142 -6
4%
-83%
$ 5
35 -
64%
$2,6
57 $
2,1
84 $
2,0
64 $
990 $
1,9
48 $
64 -82%
-90%
$ 4
18 -
64%
Net e
arnin
gs $1,8
41 $442
$232 $187 $
254 $
599 $
514 $ 4
1 -
88%
-93%
$ 3
84 -
66%
$583 N
et e
arn
ings t
o c
om
mon $
524 $
1,0
57 $
378 $
476 $
378 $366 $ 11,1
32 -
2%
-4%
$ 11,176 3%
Averag
e c
om
mon e
quity $855
$771 $7
81 $
697 $
686 R
eturn on
av
erag
e co
mm
on equit
y 1.5%
-10.6
pp -
19.3pp 6.9
% -14.1
pp -
$76 2Q
19 3Q
19 4
Q19 1
Q20 2
Q20 4 F
inan
cial a
dv
isory E
qu
ity
u
nd
erw
ritin
g D
eb
t u
nd
erw
ritin
g C
orpo
rate
len
din
g
Global M
arkets
Global
Markets H
ighlights
Fin
ancial R
esult
s vs.
n 2
Q20 net r
eve
nues w
ere
significan
tly
hig
her Y
oY
, prim
arily
driven
by
higher cli
ent a
cti
vity
v
s.
vs.
2Q
20 2Q
19 $
in
m
illio
ns 2Q
20 1Q
20
2Q
19 Y
TD
Y
TD
— F
IC
C n
et r
evenues w
ere s
ig
nificantly hig
her Y
oY
, reflecti
ng s
ignificantly
higher i
nterm
ediatio
n net revenues and financing n
et r
evenues F
IC
C interm
ediatio
n $ 3
,786 4
9%
1
63%
$ 6
,323 91%
— E
quities n
et r
ev
enues w
ere s
ignific
antly h
ig
he
r Y
oY
, r
eflecting significantl
y h
igher interm
ediation
net r
evenues, p
artiall
y o
ffset b
y l
ow
er financing net
revenues 449 4%
71%
881 40%
FIC
C f
inancin
g n
2Q
20 p
rov
isio
n f
or cred
it l
osses w
as signif
icantl
y h
igher Y
oY
, r
eflectin
g u
pd
ate
d eco
nom
ic f
oreca
sts f
or th
e m
ortga
ge len
ding
po
rtf
olio
FIC
C 4
,23
5 43
% 1
49
% 7
,20
4 83
% n
2Q
20
op
era
tin
g e
xpen
ses w
ere sig
nif
ican
tly
hig
her Y
oY
, refle
cting
sig
nificantly h
igh
er 2
,19
9 4
4%
91
% 3
,727
61
% E
qu
ities in
term
ed
iatio
n c
om
pensation
and
benefits ex
penses a
nd
net pro
visions f
or l
itigation
an
d r
egu
lato
ry
proceedings a
nd higher b
rokerage, cle
aring, e
xchange a
nd dis
tribution f
ees E
quit
ies financing 742 11%
-14%
1,4
08 -
6%
—
L
itig
ation e
xpense r
ed
uced
2Q
20
RO
E by
4.4
pp
an
d 2
Q2
0 Y
TD
RO
E b
y 2
.8pp
2,9
41
3
4%
46
% 5
,135 3
5%
Equities G
lo
bal M
ark
ets N
et R
even
ues (
$ in m
illion
s) $7,1
76
N
et
rev
en
ues 7
,17
6 3
9%
93
% 1
2,3
39
59
% 1
83
16
9%
N
.M. 2
51
N.M
. P
ro
visio
n f
or c
red
it lo
sses $
2,9
41
$5
,16
3 O
perating
expen
ses 4
,17
2 4
7%
55
% 7
,01
9 2
9%
$3,71
6 $3,5
43
$2
,19
4 $
3,4
80
$ 2
,821
25
% 1
73%
$ 5
,06
9 118%
Pre-tax e
arnin
gs $2,0
14 $1,8
64
$1,7
11 N
et e
arnings $ 1
,93
8 -
4%
145%
$ 3
,961 1
13%
$4,23
5 $
2,9
69 $ 1
,82
4 -
7%
185%
$ 3
,78
8 1
28
% N
et
earnin
gs to
com
mon $1
,70
2 $
1,7
69 $
1,6
79 A
vera
ge co
mm
on e
quity
$ 4
2,9
87
8%
8%
$ 41,133
1%
2Q
19 3
Q19
4Q
19
1Q
20 2Q
20 F
IC
C E
quitie
s 1
7.0
% -
2.7p
p 1
0.6pp 1
8.4
% 10
.3
pp R
eturn o
n a
verag
e c
om
mon
equity 5
Global M
arkets G
lobal M
arkets H
ighlights Financial R
esults v
s. n
2
Q2
0 net revenu
es w
ere significantly h
igher Y
oY
, p
rim
aril
y
drive
n by h
igher c
lient a
ctivit
y v
s. v
s. 2
Q20 2
Q19 $
in m
illi
ons 2Q
20 1
Q20 2
Q19 Y
TD
YT
D —
FIC
C ne
t revenues w
ere signif
icantl
y h
igh
er Y
oY
, r
eflecting
sig
nificantly
hig
her i
nterm
edia
tion n
et r
evenu
es a
nd financin
g ne
t revenu
es FIC
C i
nterm
ediatio
n $ 3,7
86 4
9%
163%
$ 6
,323 9
1%
—
E
quiti
es n
et r
evenues w
ere s
ignificantly hig
her Y
oY
, reflectin
g s
ignific
antly h
ighe
r i
nterm
ed
iation ne
t revenues, p
arti
ally
offset by low
er f
ina
ncing n
et r
evenues 449 4
% 7
1%
881 40%
FIC
C financing n 2
Q20 provision fo
r c
redit
losses w
as s
ignific
antly h
ighe
r Y
oY
, r
eflecting updated e
conom
ic f
orecasts f
or t
he m
ortg
age le
nding p
ortfolio F
IC
C 4
,235 4
3%
149%
7,2
04 8
3%
n 2
Q20 ope
rating exp
en
ses w
ere sign
ific
antly
hig
her Y
oY
, r
eflecting sig
nif
ican
tly
hig
her 2
,19
9 4
4%
91
% 3
,72
7 6
1%
E
qu
iti
es i
nte
rm
ed
iatio
n c
om
pe
nsatio
n a
nd be
nefits e
xpenses a
nd n
et p
rovisions for l
iti
gation and r
egulatory proceedin
gs a
nd
high
er b
rok
erag
e, c
learing
, e
xchang
e a
nd
distrib
ution fees E
qu
ities f
in
anc
ing
74
2 1
1%
-1
4%
1
,40
8 -
6%
— L
itig
ation
expen
se r
ed
uce
d 2
Q20 R
OE
by
4.4
pp
and 2
Q20
Y
TD
RO
E b
y 2
.8p
p 2
,94
1 3
4%
4
6%
5,135
35
% E
qu
itie
s G
lo
bal
Markets N
et R
ev
en
ues ($
in
m
illi
on
s) $
7,1
76
Net r
ev
en
ues 7
,1
76
3
9%
93
% 12
,3
39
5
9%
18
3 1
69
% N
.M
. 2
51
N
.M. Pro
vision
for c
red
it lo
sses $2
,9
41
$
5,16
3 O
pe
rating ex
pen
ses 4,1
72 4
7%
55
% 7
,01
9 2
9%
$3
,71
6 $3
,5
43
$2,1
94 $
3,48
0 $
2,8
21
25
% 1
73
% $
5,069 11
8%
Pre-ta
x earn
in
gs $
2,014
$1,8
64 $1,7
11 N
et
earning
s $ 1
,93
8 -
4%
145%
$ 3
,96
1 1
13
% $
4,235 $
2,96
9 $ 1,8
24 -
7%
18
5%
$ 3
,78
8 1
28%
Net earning
s t
o c
om
mon
$1,702
$1,7
69 $1,6
79 A
verag
e com
mon eq
uit
y $
4
2,987 8%
8%
$ 4
1,1
33
1%
2Q
19 3Q
19 4Q
19 1
Q2
0 2
Q20
FIC
C E
quiti
es 1
7.0
% -2.7
pp 1
0.6pp 18
.4%
10.3
pp R
eturn o
n a
verag
e c
om
mon e
quity 5
Global M
arkets
– F
IC
C &
Equities F
IC
C H
ighlights
Equ
ities H
igh
lights n
2Q
20 n
et rev
enues w
ere sign
ific
antly
hig
her Y
oY
n 2Q
20 net
revenues w
ere signif
icantl
y higher Y
oY
—
FIC
C in
term
ediation net
revenues w
ere signif
icantly
higher, r
efle
cting s
ignifican
tly h
igher n
et —
Equities in
term
ediation net
revenues w
ere sign
ificantl
y high
er, r
efle
cting s
ignifican
tly h
igher n
et r
evenues a
cross all
majo
r b
usin
esse
s,
particu
larly
in i
nterest
rate prod
ucts
, cred
it p
roducts an
d reven
ues in both
cash p
ro
ducts and d
erivatives c
om
modities —
Equities fin
ancing net
rev
enues w
ere low
er, reflectin
g lo
wer a
verage c
usto
me
r balances, t
igh
ter —
FIC
C f
inan
cing
net r
ev
en
ues w
ere s
ignific
an
tly
hig
her, prim
arily d
riv
en
by repurcha
se s
preads and a d
ecrease in dividen
ds a
greem
ents
n 2
Q20
operati
ng
env
iro
nm
ent
was c
haracteriz
ed
b
y co
nti
nu
ed
stro
ng clie
nt acti
vity
, as v
olati
lity n
2Q
20
op
erating
en
viro
nm
ent w
as c
haracterized
by
con
tin
ued
stron
g cli
en
t a
ctiv
ity
, a
s vo
latility
rem
ain
ed h
igh and g
lobal e
qu
ity
prices w
ere g
enerally
high
er co
mpared
to
1Q
20 re
mained h
igh
, wh
ile i
nterest
rates re
main
ed
lo
w a
nd
cred
it
sp
read
s t
ightened
du
ring th
e q
ua
rter E
quitie
s N
et R
ev
en
ues ($ in
m
illio
ns) F
IC
C N
et R
ev
en
ues ($ in
m
illio
ns) $
4,2
35
$4
49
$2
,96
9 $
2,9
41
$4
32
$7
42
$2
,19
4 $
2,0
14
$1
,76
9 $
1,8
64
$1
,70
2 $
1,67
9 $
3,78
6 $1,711
$6
66
$2
62
$3
87
$3
64 $
860
$
78
4 $
2,53
7 $7
32
$2
,19
9 $
1,44
0 $1
,5
28
$1
,3
82
$
1,31
5 $1,1
54 $
1,0
80 $
979 2
Q1
9 3Q
19 4
Q1
9 1
Q2
0 2
Q2
0 2Q
19 3Q
19
4Q
19
1Q
20 2
Q2
0 In
term
ediatio
n Financing Interm
ediation Fin
ancing 6
Glo
bal M
arkets –
FIC
C &
Eq
uit
ies FIC
C H
ighli
gh
ts E
quities H
ighlig
hts n
2Q
20
net
revenu
es w
ere signif
icantl
y higher Y
oY
n 2
Q20
net r
evenues w
ere s
ig
nifican
tly hig
her Y
oY
— F
IC
C inte
rm
ediatio
n n
et r
ev
enues w
ere s
ign
ificantly hig
her,
reflectin
g s
ign
ific
antly h
ighe
r n
et —
E
quit
ies interm
ediation
net r
evenues w
ere s
ign
ificantly
h
igher, reflecti
ng s
ign
ificantly
higher n
et reven
ues across a
ll m
ajor b
usinesses, p
articularly i
n i
ntere
st r
ate
prod
ucts, cre
dit p
roducts an
d r
evenues i
n b
oth cash
products a
nd d
eriv
atives c
om
mo
dities —
E
quit
ies financing n
et
re
venu
es w
ere low
er, reflecting lo
wer a
verage c
usto
mer ba
lan
ces, t
ig
hter —
FIC
C f
in
anc
ing n
et rev
enu
es w
ere sign
ific
antly
hig
her, p
rim
arily
driven
b
y rep
urch
ase s
preads an
d a
decrease
in
dividen
ds agreem
en
ts n
2Q
20
op
erati
ng
env
iro
nm
ent w
as cha
racteriz
ed b
y c
on
tinu
ed
str
on
g client activ
ity
, as v
olatil
ity n
2Q
20
op
eratin
g e
nviron
ment w
as c
haracterized by continued s
trong
cli
ent a
cti
vity, a
s v
ola
tility
rem
ained
high and g
lobal equity p
ric
es w
ere g
enerall
y h
igher com
pared t
o 1
Q2
0 r
em
ain
ed h
igh, w
hile i
nterest
rates r
em
ain
ed l
ow
an
d c
redit s
preads t
ighte
ned during the quarter E
qu
itie
s N
et R
ev
en
ues ($ in
m
illion
s) F
IC
C N
et R
ev
en
ues ($
in
m
illio
ns) $
4,23
5 $4
49
$2
,96
9 $
2,94
1 $
43
2 $
74
2 $
2,1
94
$2
,01
4 $
1,7
69
$1
,86
4 $
1,70
2 $1
,67
9 $3
,7
86
$
1,7
11
$
66
6 $2
62
$3
87
$3
64
$8
60 $
78
4 $2
,5
37
$
73
2 $
2,19
9 $1
,4
40
$1
,5
28
$
1,3
82 $
1,3
15 $
1,1
54
$1
,08
0 $
97
9 2
Q19 3
Q1
9 4
Q1
9 1
Q2
0 2
Q2
0 2
Q19
3
Q1
9 4Q
19
1Q
20
2Q
20
Interm
ediatio
n Fin
an
cin
g I
nterm
ed
iation Fin
an
cin
g 6
Asset M
anagem
ent
Asset M
an
ag
em
en
t H
ighli
gh
ts F
inancia
l R
esu
lts v
s. n
2Q
20 n
et r
ev
enues w
ere l
ow
er Y
oY
vs. vs. 2Q
20 2Q
19
$ in m
illions 2
Q20
1Q
20 2Q
19 Y
TD
Y
TD
— M
ana
gem
en
t a
nd
oth
er fe
es f
rom
institution
al a
nd
third
-party d
istrib
utio
n a
sset m
anagem
ent clie
nts w
ere sligh
tly
hig
her, reflecting
h
igh
er a
verage
AU
S, p
arti
ally o
ffset by
a l
ow
er av
erag
e M
anagem
en
t a
nd other f
ees $ 68
4 7%
3%
$ 1
,32
4 4%
effective f
ee d
ue to
shifts in
the m
ix of c
lient a
ssets a
nd strategies —
E
quit
y i
nv
estm
ents
net r
even
ues r
eflected s
ign
ific
antly
lo
wer n
et
gain
s f
ro
m in
vestm
en
ts in
p
riv
ate I
ncen
tiv
e f
ees 3
4 -
78
% 1
0%
18
8 N
.M
. equities (2Q
20
: ~$
29
0 m
illio
n; 2Q
19: ~
$1
.20 bil
lio
n),
partially o
ffset b
y s
ign
ific
antly
high
er net gain
s f
ro
m i
nve
stm
en
ts in
p
ub
lic e
qu
itie
s (
2Q
20
: ~
$63
5 m
illi
on
; 2
Q1
9:
~$3
00
mil
lio
n) —
Len
din
g a
nd
d
ebt in
vestm
en
ts n
et r
ev
en
ues w
ere s
ign
ificantly h
ig
her, re
flecting sig
nifican
tly
Eq
uity i
nv
estm
ents 9
24 N
.M. -
38%
90
2 -
61%
hig
he
r net g
ain
s as corp
orate credit s
preads ti
gh
ten
ed
du
rin
g t
he q
uarte
r n
2
Q2
0 p
ro
vis
ion
for c
red
it l
osses w
as s
ig
nifican
tly h
igh
er Y
oY
, reflecti
ng
up
dated
eco
no
mic forecasts L
en
ding
an
d d
eb
t inv
estm
en
ts 4
59
N.M
. 31
% -
409
N
.M
. an
d h
ig
her i
mp
airm
en
ts r
elate
d to the
private c
red
it
an
d r
eal e
state p
ortf
olio
s N
et r
ev
enu
es 2
,10
1 N
.M
. -1
8%
2,0
05 -5
4%
Pro
vision
fo
r c
redit
lo
sses 27
1 N
.M
. N
.M. 3
50
N.M
. A
sset M
an
ag
em
en
t N
et
Rev
en
ues (
$ i
n m
ill
io
ns) 1
,33
2 1
1%
7
% 2
,530
8%
Operati
ng
exp
en
ses $
3,0
03
$2,5
48
$427
Pre-tax earnings $ 498 N
.M. -
60
% $
-8
75 N
.M. $
2,1
01 $
35
1 $
1,6
21 $
459 N
et e
arnin
gs $
55
2 N
.M. -
43%
$ -684 N
.M. $
1,8
65 $
1,499 $
341
$924
-$96 $59
6 $
31 $
34 $
154 N
et e
arnings t
o c
om
mo
n $
526 N
.M
. -4
4%
$
-724 N
.M. $
24 $
45 $6
84
$667 $
660 $
666 $
64
0 -$22
Average c
om
mon
equity
$ 1
9,4
57 -
8%
-10%
$ 20,4
49
-3%
-$
868 2Q
19 3
Q19 4
Q1
9 1
Q20 2Q
20 10.8
% 3
4.4
pp
-6
.5pp
-7.1
% -2
1.2
pp R
eturn
on
average c
om
mo
n e
quity 7 M
anagem
ent
and
other fees I
nc
entiv
e f
ees E
qu
ity
in
vestm
ents L
ending
and
debt i
nvestm
ents
Asset
Mana
gem
en
t A
sset
Managem
ent H
ighlights Financial R
esults vs.
n 2Q
20
net rev
enues w
ere lo
wer Y
oY
vs. v
s. 2
Q20
2Q
19 $
in m
ill
io
ns 2
Q20 1
Q20 2Q
19 Y
TD
YT
D —
M
anagem
ent a
nd oth
er f
ees from
in
sti
tutio
nal a
nd t
hird-party d
istrib
ution asset m
anagem
ent c
lients
were
slig
htl
y h
igh
er, r
eflecting
high
er a
verage A
US
, partia
lly o
ffset
by
a l
ow
er a
verage
Man
ag
em
ent
and o
ther f
ees $
68
4 7
% 3%
$ 1,32
4 4%
effectiv
e fee due
to
sh
ifts
in t
he m
ix of clie
nt a
ssets an
d stra
teg
ies —
E
qu
ity
investm
ents n
et r
evenu
es r
efle
cte
d significantl
y l
ow
er n
et g
ains f
rom
investm
ents
in p
rivate I
ncentiv
e fees 3
4 -
78%
10%
188 N
.M. e
quiti
es (2
Q20: ~
$290 m
ill
io
n;
2Q
19: ~
$1
.20
billio
n), p
artially
offset b
y sig
nif
ican
tly
hig
her n
et g
ain
s f
ro
m in
vestm
ents in
pu
blic equ
ities (
2Q
20: ~
$6
35 m
illion; 2
Q1
9: ~
$3
00
mill
io
n) —
L
en
din
g an
d d
eb
t i
nvestm
en
ts ne
t rev
en
ues w
ere sig
nifican
tly
hig
her, r
eflectin
g s
ig
nifican
tly
E
qu
ity
in
vestm
en
ts 9
24
N.M
. -3
8%
90
2 -
61
% h
ig
her n
et g
ain
s a
s c
orp
orate c
red
it sp
reads t
igh
ten
ed d
urin
g t
he quarter n
2Q
20 p
ro
visio
n fo
r c
redit
losses w
as s
ignific
antly h
ighe
r Y
oY
, re
flecting updated e
conom
ic f
orecasts L
ending a
nd d
ebt i
nvestm
ents 459 N
.M. 3
1%
-409
N.M
. a
nd
hig
her im
pairm
en
ts r
elated
to
the p
riv
ate cred
it a
nd
real e
sta
te p
ortfo
lio
s N
et r
ev
en
ues 2
,1
01
N
.M. -18
% 2
,00
5 -
54%
Pro
visio
n f
or c
redit l
osses 2
71 N
.M. N
.M. 3
50
N.M
. A
sset M
anag
em
en
t N
et R
ev
en
ues ($ in
m
illio
ns) 1
,33
2 11
% 7
% 2,53
0 8%
Operatin
g exp
en
ses $
3,0
03
$2,5
48
$427 P
re-tax e
arnin
gs $ 4
98 N
.M. -
60%
$ -8
75 N
.M. $
2,10
1 $351
$1
,62
1 $
45
9 N
et e
arnings $
55
2 N
.M
. -43%
$ -684 N
.M
. $1,865 $1,499 $341 $9
24 -
$96 $
596
$31 $
34
$154
Net earnings t
o c
om
mon $ 5
26
N.M
. -
44%
$ -
724 N
.M. $
24 $
45
$684
$6
67 $660 $666
$640
-$22 A
ve
rage c
om
mon equit
y $
19,457 -8%
-1
0%
$ 2
0,4
49 -
3%
-$8
68 2Q
19 3Q
19
4Q
19 1
Q20 2
Q20 10.8
% 3
4.4
pp -6.5pp -7.1
% -
21
.2pp R
eturn
on a
verage c
om
mon
equity 7
Mana
gem
en
t a
nd o
ther f
ees I
ncentiv
e fees E
quity investm
en
ts L
endin
g and
debt
investm
en
ts
Asset M
an
ag
em
en
t –
Asset
Mix
4 4
2Q
20
Equity
In
vestm
en
ts o
f $2
0 B
illio
n 2
Q20 L
en
ding
an
d D
eb
t Inv
estm
en
ts o
f $
30
Billio
n $
17
Billion Private, $
3 B
illio
n Public
$17 B
illi
on L
oans (
88%
Secured) $
13 B
illi
on D
eb
t I
nvestm
ents B
y G
eo
graph
y B
y V
in
tag
e 2
017– 2
013 o
r Presen
t A
sia E
arli
er 3
0%
36
% A
mericas 3
7%
48
% B
y A
cco
un
tin
g C
lassification B
y G
eog
rap
hy 2
01
4 –
EM
EA
20
16
Loa
ns 1
6%
33
% a
t F
V R
eal E
state 1
3%
(M
ixed U
se 5
%, O
ffice 3
%, N
atural
Resou
rces &
Fin
ancia
ls M
ultif
am
ily 3
%, O
ther 7
%) A
sia U
tiliti
es L
oan
s at 2
2%
am
orti
zed D
ebt A
meric
as c
ost 43%
Investm
ents 46%
EM
EA
at F
V 4
4%
B
y S
ecto
r 2
8%
18%
7%
7%
H
ealthcare 2
7%
7%
6%
32%
TM
T In
du
strials O
th
er 6
n In add
ition
, th
e f
irm
’s c
on
so
lidated in
vestm
en
t e
ntities h
av
e a
carry
ing
valu
e of $
20
billio
n,
fu
nd
ed
with
liabilitie
s o
f a
pp
ro
xim
ately
$1
1 b
illio
n,
su
bstan
tia
lly
all o
f w
hich
were n
on
recou
rse I
nd
ustr
ials O
th
er H
ealth
care B
y A
sset C
lass B
y G
eo
grap
hy
(N
et of F
in
an
cin
g) (
Net
of Fin
an
cing
) S
en
ior S
tu
den
t 34
% N
atural R
eso
urces B
y S
ecto
r 15
% 1
3%
12
% 8
% 8%
6%
4
% O
ffice H
ou
sin
g H
ou
sin
g R
etail &
Utili
ties A
sia
19
% A
meric
as E
ME
A C
on
su
mer 6
1%
Rea
l E
state F
in
an
cia
ls 2
5%
TM
T 2
9%
11
% 8
% 7
% 7
% 4%
Hospitality 9
% 2
0%
8
In
du
str
ials M
ultifam
ily
O
therA
sset M
anage
ment –
A
sset M
ix
4 4
2Q
20 E
qu
ity
Inv
estm
en
ts o
f $
20 B
ill
io
n 2
Q2
0 L
ending
and
Deb
t I
nvestm
en
ts of $
30
Billion
$
17
B
illio
n P
riv
ate, $3 B
illio
n P
ub
lic $
17
Billio
n L
oans (
88%
Secured) $
13
Billion
D
ebt Inv
estm
ents
By G
eo
graphy B
y V
intage 201
7– 2
013 o
r P
resent A
sia
Earlie
r 30%
36%
Am
eric
as 3
7%
4
8%
By
Acco
unting
C
lassific
ation B
y G
eography 2014
– E
ME
A 2
016 L
oans 1
6%
33%
at FV
R
eal E
sta
te 1
3%
(M
ixe
d U
se 5
%, O
ffice 3%
, N
atural R
esources &
Finan
cials M
ultifam
ily
3%
, O
ther 7
%) A
sia
U
til
itie
s L
oa
ns a
t 2
2%
am
ortiz
ed D
ebt
Am
ericas cost 4
3%
Investm
ents 46%
EM
EA
at
FV
44%
By S
ector 28%
18%
7%
7%
H
ealth
care 2
7%
7
% 6%
32%
T
MT
Ind
ustria
ls O
the
r 6
n I
n ad
dit
ion, th
e firm
’s c
onso
lidated
inv
estm
ent
en
tities ha
ve a c
arrying
valu
e o
f $
20 b
illi
on
, fu
nded w
ith lia
biliti
es o
f ap
proxim
ately $
11 b
illi
on
, su
bstan
tially a
ll o
f w
hich w
ere nonrecourse I
ndu
strials
Other H
ealt
hcare B
y A
sset C
lass B
y G
eography (N
et o
f F
inancing) (
Net of F
inancin
g) S
enio
r S
tud
ent 3
4%
N
atural R
esources B
y S
ector 1
5%
1
3%
12%
8%
8%
6%
4%
Office H
ou
sing
Hou
sing
Retail &
Utili
ties A
sia
19%
Am
ericas E
ME
A C
onsum
er 61%
Real E
state F
in
anc
ials 2
5%
TM
T 29%
11
% 8%
7%
7%
4%
Hospitality
9%
20%
8 I
ndustrials
Multif
am
ily O
ther
Co
nsu
mer &
Wealth M
an
agem
ent Fin
an
cial
Results C
on
su
mer &
Wealth M
an
agem
ent H
igh
ligh
ts v
s. n
2Q
20 n
et
reven
ues w
ere h
igh
er Y
oY
vs. v
s. 2
Q2
0 2
Q19 $ i
n m
ill
ions 2
Q20 1
Q20 2
Q19 Y
TD
YT
D —
W
ealth
m
anag
em
ent
net r
eve
nu
es w
ere
high
er, d
ue
to h
igh
er M
anag
em
ent a
nd o
ther fee
s 7
(includin
g t
he i
mp
act
of the co
nsolid
atio
n of G
S Personal F
inan
cial M
an
agem
ent )
, prim
arily
M
anag
em
ent a
nd o
ther f
ees $ 93
8 -2%
13%
$ 1
,89
7 1
7%
refle
cti
ng
hig
her averag
e A
US
an
d h
ig
her transac
tio
n v
olu
mes, p
artia
lly
offset
by
lo
wer n
et revenues in
Private banking a
nd l
ending, p
rim
arily
reflectin
g l
ow
er i
nte
rest rates Incentive f
ees 1
0 -86%
-23%
79 93%
— C
onsum
er banking n
et r
ev
en
ues w
ere h
ig
her, a
s 2
Q2
0 inc
lud
ed
cred
it
card loa
ns n
2Q
20
prov
ision
fo
r cred
it l
osses w
as sig
nif
ican
tly
hig
her Y
oY
, r
eflectin
g u
pd
ate
d eco
nom
ic f
oreca
sts P
riv
ate b
an
kin
g an
d l
en
din
g 15
5 -15
% -1
7%
33
7 -1
4%
fo
r t
he c
on
su
mer le
nd
in
g p
ortfoli
o n
C
ontinu
ed
to s
cale the d
igital c
on
su
mer d
ep
osit
p
latform
s, as co
nsu
mer d
ep
osits i
ncreased
by
a 4
1,103
-9
% 7
% 2
,31
3 12
% W
ealth m
anag
em
en
t r
ecord $
20
billio
n in
2Q
20
to
$9
2 b
illio
n n T
he f
irm
con
tin
ue
d to su
pp
ort M
arcu
s and A
pple C
ard
co
nsu
mers during
th
e q
ua
rter a
nd
exten
ded
Co
nsu
me
r ban
kin
g 2
58
-9%
19
% 540
29%
the f
lexibilit
y t
o defer p
ay
me
nts w
ith
ou
t i
ncurrin
g an
y ch
arg
es f
or t
he A
pp
le C
ard t
hro
ug
h J
uly
20
20
Net r
ev
en
ues 1
,36
1 -9
% 9%
2,8
53 15%
Con
sum
er &
W
ealth
M
anagem
ent N
et R
eve
nues (
$ in m
illion
s) Pro
visio
n f
or credit lo
sses 3
17
89
% N
.M. 4
85 1
44%
$1,4
92 $
1,4
08 $
1,361
O
peratin
g expenses 1
,200
-4%
5%
2,444 14
% $
1,3
18 $
282
$1,2
49 $
22
8 $258 $217 $
21
6 $
18
2 P
re-tax
earnin
gs $ -
156
N.M
. N
.M. $
-7
6 N
.M. $
194 $
155 $199
$69
$19 $18
7 $
10
$2
1 $
13
$ -1
31 N
.M. N
.M
. $ -5
9 N
.M
. N
et
earning
s N
et
earnings t
o com
mon $ -
14
4 N
.M
. N
.M. $
-7
8 N
.M. $
967 $
959 $
938 $881
$83
3 A
verage c
om
mon
equity $
7,53
6 8
% 2
8%
$ 7,2
88
24
% 2Q
19 3
Q19 4
Q19 1
Q20 2
Q20 R
eturn o
n a
verage c
om
mon
equity -
7.6
% -11.4
pp -
8.4
pp -
2.1
%
-5
.2pp 9
Manage
ment a
nd o
ther f
ees I
ncen
tiv
e fees P
rivate b
anking and lendin
g C
onsum
er bankin
gC
onsum
er &
W
ealt
h M
ana
gem
ent F
inancial R
esu
lts C
onsum
er &
W
ealt
h M
anagem
ent H
ighli
ghts v
s. n
2Q
20 n
et r
ev
en
ues w
ere h
igher Y
oY
vs.
vs.
2Q
20 2Q
19 $
in
m
illio
ns 2Q
20 1Q
20 2
Q19 Y
TD
Y
TD
— W
ealth m
anagem
ent n
et revenues w
ere higher, d
ue t
o higher M
anagem
ent and other f
ees 7 (
inclu
ding th
e im
pact o
f t
he c
onsolidatio
n o
f G
S P
erson
al Financial
Managem
ent ), p
rim
arily M
anagem
ent a
nd o
ther fees $
938 -
2%
13%
$ 1
,897 17%
reflectin
g hig
her a
verage A
US and h
igher t
ran
saction
volum
es,
partially offset b
y lo
wer n
et r
ev
enues i
n P
rivate b
ankin
g an
d l
endin
g, prim
arily
reflectin
g l
ow
er in
terest r
ates I
ncen
tiv
e fees 1
0 -
86%
-2
3%
79
93
% —
C
on
su
mer b
an
kin
g n
et r
eve
nu
es w
ere h
igh
er, as 2Q
20 i
nclu
ded credit c
ard l
oans n 2Q
20 provision for c
redit
losses w
as s
ignificantly
higher Y
oY
, reflectin
g updated e
con
om
ic forecasts Private
bankin
g a
nd le
nding 1
55 -
15%
-17%
337 -
14%
for th
e consum
er l
ending portfolio n
Continued to
scale t
he d
igita
l con
su
mer d
ep
osit p
latfo
rm
s, a
s c
on
su
mer d
ep
osit
s i
ncreased
by
a 4 1
,10
3 -
9%
7%
2
,31
3 1
2%
W
ea
lth m
an
ag
em
ent record
$2
0 b
ill
io
n i
n 2
Q2
0 t
o $
92
bill
ion
n T
he f
irm
co
ntin
ued
to s
upp
ort
Marcu
s a
nd
Ap
ple C
ard
co
nsu
mers d
urin
g t
he q
uarte
r and
ex
ten
ded
Con
sum
er b
an
kin
g 258
-9%
1
9%
54
0 2
9%
th
e flex
ibil
ity
to
defer pa
ym
ents w
itho
ut in
cu
rring
any c
harg
es f
or the A
pp
le C
ard through Ju
ly 2
020 N
et r
evenues 1
,361
-9%
9%
2,8
53 1
5%
C
onsum
er &
Wealth
Man
ag
em
en
t N
et R
ev
en
ues ($
in
millio
ns) P
ro
visio
n f
or c
redit
lo
sses 3
17 8
9%
N.M
. 48
5 14
4%
$
1,4
92 $
1,4
08
$1
,36
1 O
peratin
g e
xpenses 1,2
00
-4%
5%
2,4
44 1
4%
$1,318 $28
2 $1
,249 $22
8 $
25
8 $
217 $
216 $182
Pre-tax earning
s $
-15
6 N
.M. N
.M
. $ -76 N
.M
. $194 $155 $
199
$69 $
19
$187 $10 $21 $1
3 $ -
131 N
.M
. N
.M. $
-5
9 N
.M. N
et e
arnings N
et e
arn
ings t
o c
om
mon $
-144 N
.M. N
.M
. $ -78 N
.M
. $967 $
959
$93
8 $
881 $
833 A
verage com
mon
equ
ity
$ 7,5
36 8
% 28%
$ 7
,288 24%
2Q
19 3
Q19 4
Q19 1Q
20 2Q
20 R
etu
rn o
n a
verag
e c
om
mon e
quity -
7.6%
-1
1.4
pp -
8.4
pp -
2.1%
-5
.2pp 9
Managem
ent a
nd o
ther f
ees I
ncen
tiv
e fees P
riv
ate b
an
king
an
d len
din
g C
on
su
mer b
an
king
Firm
wide
Assets U
nde
r Supervision 3
,4 3,4
Firm
wid
e A
ssets U
nd
er S
upervisio
n A
ssets
Und
er Sup
ervision
High
ligh
ts B
y Seg
ment v
s. v
s. n
Firm
wid
e A
US
in
creased $
23
9 b
illi
on
durin
g th
e quarter to a r
eco
rd $2.06
trillio
n, i
nclu
ding A
sse
t $ i
n b
illi
ons 2
Q20
1Q
20 2
Q19 1Q
20 2Q
19 M
anage
ment A
US
increasin
g $1
90 b
illio
n a
nd C
onsum
er &
Wealth M
anagem
ent
AU
S in
creasing $
49 b
illi
on A
sset M
anagem
ent $ 1
,499 $
1,309 $ 1
,171 1
5%
28%
— N
et m
arket appreciation of $1
00 b
illio
n, prim
arily i
n e
qu
ity an
d f
ixed in
co
me a
ssets C
onsum
er &
Wealth M
anag
em
ent 55
8 509 48
9 1
0%
14%
— L
iquid
ity p
rodu
cts n
et i
nflo
ws of $133
billio
n Firm
wide A
US $ 2
,057
$ 1,8
18 $
1,6
60 1
3%
2
4%
— L
on
g-te
rm
net i
nflo
ws o
f $
6 billion
B
y A
sse
t C
lass vs. vs. $ in
bill
ion
s 2
Q2
0 1
Q2
0 2
Q19
1
Q2
0 2Q
19
$ 17
9 $ 1
78 $
17
4 1
% 3
% A
ltern
ativ
e i
nv
estm
en
ts 3
94 3
35
3
50
1
8%
13
% E
qu
ity
Fix
ed
in
co
me 8
17
7
71
7
49
6%
9%
L
on
g-term
A
US
1,3
90
1
,28
4 1
,27
3 8
% 9
% 3
,4
2Q
20 A
US
Mix
L
iq
uid
ity p
ro
du
cts 6
67
53
4 3
87
25
% 7
2%
Asset D
istrib
uti
on
Re
gio
n V
eh
icle C
lass $
2,05
7 $ 1
,81
8 $
1,66
0 13
% 2
4%
C
ha
nn
el F
irm
wide
AU
S Priva
te A
lternativ
e 8%
9%
A
sia 1
1%
fu
nd
s in
vestm
en
ts W
ealth a
nd
oth
er 2
7%
14
% E
ME
A m
an
ag
em
en
t 3
,4 19%
Eq
uity O
rg
an
ic L
ong
-T
erm
N
et F
low
s ($
in
billion
s) Pu
blic
(E
xclud
es A
cq
uis
itio
ns) 3
7%
fun
ds $
42
Liq
uid
ity
32
% 3
5%
$3
7 I
nstitu
tion
al
$3
6 p
ro
du
cts A
mericas $
27 7
8%
Separate
52%
ac
cou
nts Fix
ed 4
0%
38
% T
hird-p
arty
$7 in
co
me d
istrib
uted 1
0 2
016 2
01
7 2
018 2019 20
20 Y
TD
Firm
wide
Assets U
nde
r Supervision
3,4 3,4
Firm
wid
e A
ssets U
nder S
upervisio
n A
ssets
Und
er Supervisio
n H
ighlig
hts B
y Seg
ment v
s. v
s. n
Firm
wid
e A
US
increased $
239 b
illi
on d
urin
g th
e q
uarter to a r
ecord $
2.0
6 trillio
n, in
clu
din
g A
sset
$ in
billio
ns 2
Q2
0 1
Q2
0 2
Q1
9 1
Q20 2
Q1
9 M
an
ag
em
en
t A
US
in
creasin
g $1
90
billio
n a
nd
C
onsum
er &
Wealth M
anagem
ent
AU
S in
creasing $
49
billi
on
Asset M
anag
em
ent $ 1
,499
$ 1
,309 $ 1
,17
1 1
5%
28%
— N
et m
arke
t appreciation
o
f $1
00
billio
n, p
rim
arily
in
equ
ity
an
d f
ixed
inco
me a
ssets C
onsum
er &
Wealth
Managem
en
t 5
58 5
09
4
89
1
0%
14
% —
L
iq
uid
ity
pro
ducts net in
flow
s o
f $1
33
b
illion Firm
wid
e A
US
$ 2
,057
$ 1,8
18 $
1,660 1
3%
24%
— L
ong-term
net in
flo
ws o
f $
6 bil
lion
By A
sset C
lass vs. vs.
$ i
n b
illi
on
s 2Q
20 1
Q20 2
Q19 1
Q20 2Q
19 $ 179 $ 1
78 $
174 1
% 3
% A
lterna
tive i
nvestm
ents
394 3
35 3
50 1
8%
13%
E
quity
Fixed i
ncom
e 8
17 7
71 749 6%
9%
Long-te
rm
AU
S 1,3
90 1
,284 1
,273 8
% 9
% 3,4 2
Q20 A
US M
ix L
iquid
ity p
roducts 667 534 387 25%
72%
A
sset D
istribution R
egio
n V
ehicle C
lass $
2,057 $ 1
,818 $
1,660 13%
24%
C
hannel Firm
wide A
US Private A
lte
rnative 8%
9%
Asia 11
% f
unds investm
ents W
ealth a
nd
oth
er 2
7%
14
% E
ME
A m
an
age
men
t 3
,4 1
9%
Equ
ity
Organ
ic L
on
g-T
erm
Net F
low
s (
$ in b
ill
io
ns) Pu
blic (
Ex
clu
de
s A
cq
uisiti
on
s) 3
7%
fu
nd
s $
42
Liqu
id
ity
3
2%
35%
$
37
In
stitu
tio
nal $
36
prod
ucts A
meric
as $
27
78%
Separate 5
2%
acco
unts Fixed 4
0%
38%
Thir
d-party $7 i
ncom
e distr
ibuted 1
0 2016 2
01
7 2
01
8 2
01
9 2
02
0 Y
TD
Net In
terest I
ncom
e a
nd L
oan
s 4
N
et
Interest I
ncom
e by
Segm
en
t (
$ in m
illion
s) L
oans M
etr
ics $
in bil
lions 2
Q20 1
Q20 2Q
19
$1
,313 C
orpora
te $ 5
9 $
68 $ 47 3
.7%
$1,0
71 A
LL
L t
o T
otal W
ea
lth
managem
ent 28 29 25 $
944 G
ross L
oans, a
t $493 A
mortized
Co
st C
om
merc
ial real e
state
17 1
7 1
5 $
397 $
397 2.8
% 5 4
6 R
esidenti
al r
eal e
sta
te A
LL
L t
o G
ross $
171 W
holesale L
oa
ns, a
t $75 Installm
ent 5 5 5
Am
ortized
Co
st C
redit c
ards 2
2 -
$511 17.0%
$483 $
629 A
LL
L t
o G
ross O
ther 5
6 4 C
onsum
er L
oan
s, a
t A
mortized C
ost (
4) (3) (
1) A
llo
wance f
or lo
an
lo
sses $138 $
116 -
$7 -$75 (
IB
) T
otal
Loan
s $ 1
17 $ 1
28 $
101 2
Q19 1
Q20 2
Q20 Investm
ent B
anking G
lobal M
arkets A
sset M
an
ag
em
en
t C
on
su
me
r &
W
ea
lth
Manag
em
en
t N
et I
nte
rest In
co
me H
ig
hlig
hts
Lend
in
g H
ig
hli
gh
ts n
T
otal
loan
s d
ecreased
$1
1 b
illi
on
, d
ow
n 9%
QoQ
, reflectin
g p
ay
do
wn
s o
n c
om
mit
ted
co
rp
orate l
in
es n 2
Q20
ne
t interest i
nco
me d
ecreased $
12
7 m
ill
io
n Y
oY
n T
otal a
llow
an
ce w
as $
4.3
9 b
illi
on
(inclu
din
g $
3.9
0 b
illi
on
fo
r fun
ded
loans), u
p $
1.19
billion
Q
oQ
n
The Y
oY
de
crease i
n n
et i
nterest
inc
om
e refle
cte
d the im
pact o
f l
ow
er interest r
ates and an i
ncrea
se i
n l
ow
er-ris
k, l
ow
er-y
ieldin
g g
lob
al
co
re liq
uid a
ssets —
$3.24
billion
fo
r w
ho
lesale l
oans,
$1.1
5 b
ill
ion
fo
r con
sum
er l
oans n
Pro
visio
n f
or cre
dit l
osses o
f $
1.5
9 b
illio
n in
2Q
20
, u
p fro
m $
937 m
illion
in
1
Q2
0 n 2Q
20
net charg
e-o
ffs o
f $
26
0 m
illio
n f
or a
n an
nualized n
et c
harge-off rate of 0.9%
, up 4
0b
ps Q
oQ
— W
hole
sale a
nn
ualiz
ed n
et
charge-off r
ate o
f 0
.7%
, up 50bps Q
oQ
—
C
onsu
mer a
nnu
aliz
ed net c
harge-off r
ate o
f 5
.1%
, up 30
bp
s Q
oQ
11N
et I
nterest
Incom
e a
nd
Loan
s 4
N
et In
tere
st I
nc
om
e b
y Seg
ment
($ in
m
illio
ns) L
oans M
etrics $
in
b
illio
ns 2
Q2
0 1
Q20 2Q
19 $1,31
3 C
orpo
rate $
59 $
68
$ 47 3.7
% $1,071 A
LL
L t
o T
otal W
ealth m
an
agem
ent 28 29 2
5 $
944 G
ro
ss L
oans, a
t $
49
3 A
mortized C
ost C
om
mercial r
eal e
sta
te 17
17 1
5 $
39
7 $
397 2
.8%
5 4
6 R
esidential r
eal e
sta
te A
LL
L t
o G
ro
ss $
17
1 W
hole
sale L
oan
s, a
t $7
5 Installm
ent 5
5
5 A
mo
rtized C
ost
Cred
it c
ard
s 2
2 - $511 17.0
% $
483 $
629 A
LL
L t
o G
ross O
ther 5
6 4 C
onsum
er L
oans,
at A
mortiz
ed C
ost (
4) (3) (
1) A
llow
anc
e f
or loan l
osses $
138 $
116 -
$7 -$75 (
IB
) T
ota
l L
oans $
117 $ 1
28 $ 1
01 2
Q19 1
Q20 2Q
20 In
vestm
ent
Bankin
g G
lobal M
ark
ets A
sset
Managem
ent C
onsum
er &
Wealth M
anagem
ent
Net I
nterest I
ncom
e H
ighlights L
end
ing H
ighlights
n T
otal lo
an
s decreased $
11
bill
ion,
dow
n 9
% Q
oQ
, refle
cti
ng p
ayd
ow
ns o
n c
om
mitted
corporate l
in
es n
2Q
20 n
et in
terest i
nco
me d
ecreased $
12
7 m
illion Y
oY
n T
otal a
llo
wanc
e w
as $4.3
9 b
ill
ion
(in
clud
ing $3.90 b
ill
ion f
or f
unde
d loa
ns), u
p $
1.1
9 b
illio
n Q
oQ
n T
he Y
oY
decrease in n
et i
nte
rest in
com
e r
eflected
th
e im
pact o
f l
ow
er in
terest r
ates a
nd
an increase i
n l
ow
er-risk, l
ow
er-yie
lding g
lo
bal core li
quid assets
— $
3.2
4 b
illio
n f
or w
holesale
lo
ans,
$1
.1
5 b
illio
n fo
r c
on
su
mer lo
ans n
Provisio
n f
or credit l
osses o
f $
1.5
9 b
illi
on
in
2Q
20,
up fro
m $
93
7 m
illi
on
in
1Q
20
n 2Q
20
net c
harg
e-o
ffs o
f $
26
0 m
illion
fo
r a
n a
nn
ualized
net c
harg
e-off rate of 0
.9%
, u
p 4
0bp
s Q
oQ
—
W
holesale
ann
uali
zed
net ch
arg
e-o
ff r
ate o
f 0
.7%
, u
p 5
0b
ps Q
oQ
— C
on
su
mer a
nn
uali
zed ne
t ch
arg
e-o
ff r
ate o
f 5
.1%
, u
p 3
0b
ps Q
oQ
11
Ex
pe
nses E
xpe
nse H
ighligh
ts F
ina
ncial R
esults
vs.n 2Q
20
to
tal o
peratin
g e
xpen
ses i
ncrea
sed s
ign
ifican
tly Y
oY
, r
eflecting:
vs. vs. 2Q
20 2Q
19 —
Signif
ican
tly h
igher co
mpensa
tion a
nd b
enefits
expenses, r
eflecting s
ignifican
tly
hig
her n
et $
in m
illio
ns 2Q
20 1Q
20 2
Q19 Y
TD
Y
TD
revenu
es C
om
pe
nsatio
n a
nd be
nefits $
4,478 38%
35%
$ 7
,713 1
7%
—
Significantly
hig
her n
on-com
pensatio
n expenses, w
hich in
cluded:
o S
ignificantly
hig
her n
et provis
ions f
or l
itig
ation a
nd r
egula
tory proceedin
gs B
rokerage, c
learin
g, e
xchange a
nd 9
45 -
3%
15
% 1
,920
21%
distr
ibu
tio
n f
ees o
H
igh
er e
xp
enses related t
o b
ro
kerag
e, c
learin
g, exch
an
ge
an
d d
istrib
utio
n fees, r
efle
cti
ng
an
in
crease in
activ
ity
levels M
arket d
evelopm
ent 8
9 -
42%
-52
% 242
-35%
o H
igher e
xpenses re
lated t
o consolid
ated in
vestm
en
ts, i
nclud
ing
im
pairm
ents o
Rem
ain
de
r of t
he i
ncrease prim
arily
attribu
tab
le to
hig
her e
xp
en
ses related
to
tech
no
log
y, t
he C
om
mu
nicatio
ns an
d t
ech
no
log
y 3
45
7%
1
9%
66
6 1
6%
firm
’s cred
it c
ard
activ
ities an
d t
he i
mp
act of t
he consolidation
o
f G
S P
erso
nal
Fin
an
cial 7
Man
ag
em
en
t ,
partially o
ffset b
y l
ow
er t
rav
el and
en
tertain
ment e
xp
en
ses D
ep
reciation
an
d a
mo
rtization
4
99
1
4%
25
% 93
6 22%
n 2
Q2
0 Y
TD
effectiv
e inc
om
e t
ax
rate w
as 2
1.9
%, u
p f
rom
10
.0%
fo
r 1Q
20
, p
rim
arily d
ue t
o a
d
ecrea
se i
n t
he i
mp
act o
f p
erm
an
ent t
ax
ben
efit
s an
d a
n i
ncrease i
n pro
vis
ion
s fo
r n
on
-d
ed
uctible lit
ig
atio
n i
n th
e first h
alf o
f 202
0 c
om
pared w
ith
1Q
20
Occu
pancy
233
-2%
-%
471 3%
3 E
fficiency R
atio Pro
fessional
fees 3
11 -
10%
3%
658 1
0%
67%
63%
Other expe
nses 1
,5
00 99%
164
% 2
,252 1
14
% T
otal o
perati
ng e
xpen
ses $
8,40
0 30
% 3
7%
$ 14,858 24%
Prov
isio
n f
or ta
xes $
882
N.M
. 25%
$ 1
,01
7 -
13
% E
ffective
Tax R
ate 2
1.9
% 1.8
pp 2
Q20 2
Q20 Y
TD
Im
pact of L
itigation: +
7.1
pp +
5.1
pp 1
2E
xp
enses E
xpen
se H
ighlights Fin
ancial R
esults vs.n
2Q
20 t
otal
operating e
xpenses in
creased significantl
y Y
oY
, reflectin
g: v
s. v
s. 2
Q2
0 2
Q1
9 —
Sig
nifican
tly h
igher c
om
pensation
and b
en
efits expenses,
reflectin
g sign
ific
antly
higher net $
in m
ill
io
ns 2
Q20 1
Q20 2
Q19 Y
TD
YT
D revenues C
om
pensation a
nd b
enefits
$ 4
,478 38%
35%
$ 7,7
13 1
7%
— S
ignif
icantl
y h
ig
her no
n-com
pensati
on e
xpenses, w
hich i
nclu
ded: o Sign
ificantly hig
her n
et p
rovisio
ns for l
iti
gation and r
egulatory
proceedings B
ro
kerag
e, clearin
g, ex
chang
e an
d 9
45
-3%
15
% 1,9
20 21
% d
istrib
ution
fees o
Hig
her exp
enses related
to
brokerage, clearin
g, excha
ng
e an
d d
istrib
uti
on
fees, r
eflectin
g an
in
crease i
n a
cti
vity lev
els
Mark
et d
ev
elop
men
t 8
9 -
42%
-5
2%
24
2 -
35%
o H
ig
her expen
ses related t
o c
onsolid
ate
d investm
ents, inc
luding im
pairm
ents o R
em
ain
der o
f t
he i
ncre
ase p
rim
arily
attr
ibu
table t
o h
igher ex
pe
nses r
elated
to
tech
no
log
y,
the C
om
mu
nicatio
ns and technolo
gy
34
5 7
% 19%
66
6 1
6%
firm
’s c
red
it
card activ
ities a
nd
th
e im
pact o
f t
he c
on
so
lid
ati
on
of G
S P
erson
al Fin
an
cia
l 7
Man
ag
em
en
t , pa
rtially
offset b
y l
ow
er trav
el a
nd
entertain
men
t e
xp
en
ses D
ep
reciation
an
d a
mortizatio
n 4
99
14
% 2
5%
93
6 2
2%
n
2Q
20 Y
TD
effecti
ve in
co
me t
ax
rate w
as 2
1.9
%, u
p f
ro
m 1
0.0
% fo
r 1
Q2
0, prim
arily d
ue t
o a
dec
rease i
n t
he i
mpac
t of pe
rm
anen
t tax b
en
efits and
an
in
crease i
n p
ro
visio
ns fo
r n
on-dedu
ctib
le l
itiga
tio
n i
n t
he f
irst
half
of 2
02
0 c
om
pared w
ith
1Q
20
Occu
pan
cy 2
33 -2
% -
% 4
71
3%
3 E
fficie
ncy
R
atio
Pro
fession
al fees 3
11 -1
0%
3
% 65
8 1
0%
67
% 6
3%
O
ther e
xp
en
ses 1
,50
0 9
9%
1
64%
2,2
52
11
4%
T
otal o
peratin
g e
xp
en
ses $
8,4
00 3
0%
3
7%
$ 1
4,858
24%
Pro
vision for t
ax
es $
882
N.M
. 2
5%
$
1,0
17 -
13%
Effectiv
e T
ax R
ate
21.9
% 1.8pp
2Q
20 2Q
20 Y
TD
Im
pact o
f L
itig
atio
n: +
7.1
pp
+5
.1p
p 1
2
Ca
pital a
nd B
ala
nce Sheet 3,4 C
apital C
ap
ita
l and B
alance S
heet H
ighlights
n B
oth S
tand
ard
ized
and A
dv
anced C
ET
1 r
atio
s i
ncreased Q
oQ
2Q
20 1
Q20 2Q
19 $
in
bil
lions —
Increase i
n C
ET
1 c
apital r
eflected n
et e
arnings i
n e
xcess o
f d
iv
idends C
om
mo
n eq
uit
y ti
er 1
(C
ET
1) cap
ital $
76.8 $
74.6
$ 7
5.6
— D
ecrease in Standardiz
ed R
WA
s r
eflected
low
er c
redit R
WA
s d
ue t
o r
educed exposure Stand
ard
ized
RW
As $
56
3 $
59
4 $
5
48
—
In
crease in
A
dv
an
ced R
WA
s r
eflected th
e im
pact o
f inc
reased v
ola
tility
n R
etu
rned
$4
50
million o
f capita
l in
com
mon s
tock d
ividends Stan
dardized C
ET
1 capit
al ratio 1
3.6
% 12.5
% 1
3.8%
3 —
T
he f
irm
did n
ot r
epurchase an
y shares in
2Q
20
and
will n
ot
in
3Q
20
A
dv
an
ced R
WA
s $
62
0 $
60
6 $ 5
59 n
The firm
’s balan
ce sh
eet in
cre
ased
$5
2 b
illio
n Q
oQ
Ad
van
ced C
ET
1 c
ap
ital r
ati
o 1
2.4%
12
.3%
1
3.5
% 3 4
— M
ain
tain
ed high
ly
liq
uid
balan
ce sh
eet a
s G
CL
A averag
ed $
290
billi
on
fo
r 2Q
20
8 Supp
lem
en
tary lev
erag
e ratio
6.7
% 5
.9%
6
.4%
—
D
ep
osit
s i
ncreased
$4
8 b
ill
ion
Qo
Q, r
efle
cti
ng
an in
crease in con
su
mer, tran
saction
ban
king
and p
riv
ate b
an
k d
ep
osits n
B
VPS
decreased
Qo
Q, d
riv
en b
y d
eb
t v
aluatio
n ad
justm
en
t o
n t
ig
hten
in
g o
f the firm
’s credit s
pread
s 4 Se
lected B
ala
nce
Shee
t D
ata
$
in
billi
on
s 2Q
20
1Q
20
2Q
19
Total a
ssets $
1
,14
2 $
1,09
0 $ 9
45
B
ook
V
alu
e D
ep
osit
s $
26
8 $
22
0 $
1
66
In
m
illi
on
s, e
xcept p
er s
hare a
mo
un
ts 2
Q2
0 1
Q20
2
Q1
9 3 B
asic s
hares 3
55.8
35
5.7
37
2.2
U
nsecu
red
lo
ng
-term
borro
wings $ 22
3 $ 2
26 $
221
Book
value p
er c
om
mon sh
are $ 2
27.3
1 $
228
.21
$ 214.1
0 Sharehold
ers’ e
qu
ity $
92
$ 9
2 $ 91
1 3
T
ang
ible book
value p
er c
om
mon
share $ 2
13.8
4 $
214
.69
$ 2
03.05 A
verage G
CL
A $
29
0 $
243 $ 225 13C
apit
al a
nd B
ala
nce
Sheet 3,4
Capital C
apital
and B
alance S
heet H
ig
hli
ghts n
B
oth Stan
dardized a
nd A
dv
anced C
ET
1 r
atios i
ncreased Q
oQ
2Q
20 1Q
20 2
Q19
$ in bil
lions —
Increase i
n C
ET
1 c
apital r
eflected n
et e
arn
in
gs i
n e
xcess o
f d
iv
idends C
om
mon e
quity
ti
er 1
(C
ET
1) capit
al $
76.8
$ 7
4.6 $ 7
5.6
— D
ecrease
in S
tandardiz
ed
RW
As re
flected
low
er credit R
WA
s due to re
duced expo
sure S
tandardized
RW
As $ 5
63 $
594 $
548 —
In
cre
ase i
n A
dvanced R
WA
s reflected t
he i
mpac
t of in
creased
vo
latili
ty n
R
eturned
$450 m
illion of capit
al i
n c
om
mo
n stock d
ivid
end
s Stan
dardized C
ET
1 c
apital r
atio
13.6%
12.5%
13.8
% 3 —
The
firm
did not repurchase a
ny sh
ares i
n 2
Q20 a
nd w
ill
not in
3Q
20 A
dvanced R
WA
s $ 6
20 $
606 $
55
9 n T
he f
irm
’s b
alance s
heet i
ncreased $
52 bill
ion Q
oQ
Advanc
ed C
ET
1 cap
ita
l ratio
12.4
% 12
.3%
13.5%
3 4 —
Maintain
ed highly
liquid b
alance s
heet a
s G
CL
A a
veraged $
29
0 bil
lion
for 2
Q20 8
Su
pple
mentary le
verage r
atio 6.7
% 5.9
% 6.4%
— D
eposits increased $48 bil
lio
n Q
oQ
, r
eflectin
g a
n i
ncrease i
n con
sum
er, tr
an
saction b
an
kin
g a
nd
priv
ate
ban
k d
epo
sits
n B
VP
S d
ecre
ased Q
oQ
, driven
by
deb
t v
alu
ati
on
ad
ju
stm
en
t o
n tig
hten
ing
o
f th
e firm
’s c
red
it s
pread
s 4
Selected B
alan
ce Sh
eet D
ata $ in
bill
io
ns 2
Q2
0 1
Q2
0 2
Q1
9 T
otal a
ssets $
1,1
42
$
1,0
90
$ 945
Boo
k V
alu
e D
ep
osits $
26
8 $
22
0 $
16
6 I
n m
ill
io
ns, excep
t p
er share a
mo
un
ts 2
Q20 1Q
20
2Q
19
3 B
asic s
hares 3
55
.8
35
5.7
37
2.2
Un
se
cured
lo
ng
-term
b
orro
wing
s $
223
$ 2
26 $
22
1 B
oo
k v
alue p
er c
om
mo
n s
ha
re $ 2
27.3
1 $
22
8.2
1 $
214
.10 Sh
areh
old
ers’ e
qu
ity
$ 9
2 $
92
$ 91
1
3 T
an
gib
le b
oo
k v
alu
e p
er c
om
mo
n s
ha
re $ 2
13.8
4 $
21
4.6
9 $
20
3.0
5 A
verag
e G
CL
A $
29
0 $
24
3 $
22
5 13
Ca
utio
nary N
ote R
eg
ardin
g Fo
rw
ard
-L
ook
ing
Statem
ents T
his presen
tation
co
nta
ins “fo
rw
ard
-lo
ok
in
g statem
ents”
with
in
th
e m
ean
in
g o
f the safe h
arb
or p
rov
isio
ns o
f th
e U
.S. P
riv
ate Securit
ies L
itig
atio
n R
efo
rm
Act o
f 1
99
5. F
orw
ard-loo
kin
g s
tate
ments are no
t histo
ric
al
facts, b
ut i
nstead r
epresent
only
th
e firm
’s beliefs r
eg
ardin
g f
utu
re e
vents, m
any of w
hich
, b
y t
heir nature, are in
herentl
y uncertain and o
utside o
f the firm
’s contro
l. I
t i
s po
ssible th
at th
e firm
’s actu
al results, f
inancial c
onditi
on a
nd liquidity m
ay d
iffer, p
ossib
ly
materia
lly, from
th
e an
ticipated r
esu
lts
, finan
cial
condition and
liqu
idity indicated i
n t
hese statem
ents. F
or in
form
ation about s
om
e of th
e risks and i
mportant facto
rs t
hat c
ou
ld
affect t
he firm
’s f
uture resu
lts, f
inancial c
on
diti
on
an
d l
iq
uidity
an
d t
he f
orw
ard
-lo
ok
ing
statem
en
ts be
low
, see “R
isk
Factors” in Pa
rt I
I, I
tem
1
A o
f th
e firm
’s Q
uarterly
Re
po
rt o
n F
orm
10
-Q
fo
r t
he p
erio
d end
ed
M
arc
h 3
1, 2
02
0 a
nd
in
Part
I, I
tem
1A
o
f th
e firm
’s A
nn
ual R
ep
ort
on Fo
rm
10
-K
fo
r th
e y
ear e
nd
ed
Decem
ber 31
, 2
01
9. I
nfo
rm
atio
n r
eg
ard
ing
th
e f
irm
’s a
ssets
un
der su
perv
isio
n, capit
al r
atios, risk-w
eig
hted
assets,
sup
ple
men
tary
le
verage r
atio, b
alan
ce s
heet d
ata a
nd
glo
bal
co
re liq
uid
assets (
GC
LA
) c
on
sists of p
relim
in
ary estim
ates. T
hese e
sti
mates a
re forw
ard-looking statem
ents and are s
ubject t
o c
hange, possibly
m
ateriall
y, a
s th
e firm
com
pletes it
s financial s
tatem
en
ts.
Statem
ents regarding (i) e
stim
ate
d G
DP
grow
th, (
ii) t
he i
mpact
of th
e C
OV
ID
-19 p
and
em
ic o
n t
he firm
’s b
usiness, r
esults, financial p
ositio
n and liq
uidit
y, (iii) the tim
ing, p
rofitabili
ty, benefits a
nd
other p
rospective a
spects
of b
usiness in
itiativ
es and t
he a
ch
iev
abili
ty o
f m
ediu
m- and l
ong-term
targets
an
d g
oals, (
iv) t
he f
uture s
tate
o
f th
e firm
’s li
quidit
y a
nd
reg
ulatory c
ap
ital r
ati
os, (
v) th
e firm
’s pro
spective
capita
l d
istr
ib
utio
ns (
including d
ivid
ends),
(vi) the
fir
m’s future effective i
ncom
e tax ra
te, a
nd (
vii)
the f
irm
’s i
nvestm
ent b
anking t
ransactio
n bac
klog a
re f
orw
ard-lo
okin
g s
tate
ments. Statem
ents r
egard
in
g e
stim
ate
d G
DP
gro
wth
are su
bje
ct
to the
ris
k th
at
actu
al
GD
P gro
wth
m
ay
differ,
po
ssibly m
ate
rially
, d
ue t
o,
am
ong
other thin
gs, c
han
ges in
ge
neral e
cono
mic
conditio
ns. Statem
ents a
bo
ut
the effects of th
e C
OV
ID
-19 pand
em
ic o
n t
he f
irm
’s b
usiness, r
esults,
financial p
ositi
on
an
d li
qu
idity
are s
ubject to
th
e risk
th
at t
he actual im
pact m
ay
differ, p
ossibly
materia
lly
, fro
m w
hat is
cu
rrently expected. S
tatem
en
ts about t
he ti
ming
, p
rofita
bility, b
enefit
s and o
ther prospective a
spects of busin
ess i
nitia
tives an
d the achievability of m
edium
and l
on
g-term
targets a
nd g
oals are based o
n th
e firm
’s c
urre
nt ex
pectation
s r
eg
ardin
g o
ur abili
ty
to i
mplem
ent t
hese in
itiati
ves an
d a
ch
iev
e t
hese ta
rgets a
nd goals and
may
ch
an
ge, po
ssibly m
ateria
lly,
fro
m w
ha
t is c
urren
tly
ex
pected
. Statem
ents ab
out th
e future state o
f t
he f
irm
’s l
iquid
ity
and re
gulatory capit
al r
atios, as w
ell a
s i
ts p
rospectiv
e cap
ital distribu
tio
ns,
are su
bject
to th
e r
isk
th
at
the
fir
m’s actu
al
liq
uid
ity
, r
egu
latory cap
ital r
atios a
nd
cap
ital d
istribu
tio
ns m
ay dif
fer, p
ossibly m
aterially, f
rom
what i
s currentl
y expected. S
tatem
ents a
bout t
he f
irm
’s f
uture e
ffective i
ncom
e t
ax r
ate a
re s
ubject t
o t
he r
isk t
hat t
he f
irm
’s f
utu
re e
ffe
cti
ve i
ncom
e t
ax r
ate m
ay d
iffer f
rom
the a
nticip
ated r
ate i
ndicated, p
ossib
ly m
aterially
, du
e to
, a
mo
ng o
ther t
hings,
cha
nges i
n t
he f
irm
’s e
arn
ing
s m
ix
or p
ro
fitab
ility
, th
e e
ntities i
n w
hich
the f
irm
generates p
rofits a
nd th
e assum
pti
ons m
ade in
forecasting the
fir
m’s expecte
d tax ra
te, a
nd p
otentia
l future guidan
ce from
th
e U
.S. I
RS
. Statem
en
ts abou
t th
e firm
’s i
nvestm
ent
ban
king
tran
saction back
log a
re sub
ject to
th
e risk that tr
an
sactio
ns m
ay b
e m
od
ified o
r n
ot c
om
pleted a
t all
and a
ssoc
iated
net revenues m
ay not b
e rea
lized o
r m
ay b
e m
ateriall
y l
ess t
han t
hose c
urrently e
xpected. Im
portant f
actors th
at could h
ave such a
result i
nclude, f
or un
derw
riting transac
tion
s, a
decline o
r w
eakn
ess in
gen
eral eco
no
mic c
on
diti
on
s, a
n o
utb
reak
of h
ostilities, v
olatility
in
th
e s
ecuritie
s m
ark
ets o
r an a
dv
erse d
ev
elo
pm
en
t w
ith re
spect to t
he i
ssuer o
f t
he s
ecurities a
nd
, f
or
fin
ancia
l adviso
ry t
ransactio
ns, a
d
ecli
ne in
th
e secu
rit
ies m
arkets,
an i
nab
ility t
o o
btain
adequate financing, a
n adverse d
evelo
pm
ent
wit
h resp
ect to
a p
arty
to
the transac
tion o
r a
failure to
obtain a
require
d regulatory a
pprova
l. 1
4C
autio
nary
Note
Reg
arding
Fo
rw
ard
-L
oo
king
Sta
tem
en
ts T
his p
resen
tatio
n c
on
tains “
fo
rw
ard-lo
okin
g s
tatem
en
ts” w
ith
in th
e m
ea
nin
g o
f t
he s
afe h
arb
or p
ro
visio
ns o
f th
e U
.S. Priv
ate
Se
curitie
s L
itig
atio
n R
efo
rm
A
ct
of 19
95
. Fo
rw
ard
-lo
ok
in
g statem
ents are n
ot h
istorical f
acts, but in
ste
ad represent o
nly t
he f
irm
’s b
elie
fs reg
arding fu
ture events
, many o
f w
hich, b
y t
heir n
ature, a
re i
nherently u
ncertain a
nd o
utside o
f t
he f
irm
’s c
ontrol. It i
s p
ossible t
hat t
he f
irm
’s a
ctual r
esu
lts
, fin
an
cia
l co
nd
ition
and liq
uid
ity
m
ay
differ,
po
ssib
ly m
aterially
, f
ro
m t
he a
nticip
ated
resu
lts, f
inan
cial c
on
diti
on
an
d l
iq
uidity
in
dic
ate
d in
these s
tatem
en
ts.
Fo
r i
nform
atio
n a
bo
ut
so
me o
f t
he r
isk
s a
nd
im
po
rtan
t f
actors th
at cou
ld
affect
the f
irm
’s fu
tu
re re
su
lts, f
in
anc
ial co
nd
ition
and liq
uidity
and the forw
ard-looking s
tatem
ents
below
, s
ee “
Risk Factors” i
n P
art II, Item
1A
of t
he f
irm
’s Q
uarterly R
eport o
n Form
10
-Q
fo
r t
he pe
rio
d e
nd
ed
March
31
, 2
02
0 and
in
Part I
, Item
1A
of t
he f
irm
’s A
nnu
al R
ep
ort o
n F
orm
10
-K
fo
r t
he y
ear e
nd
ed
Decem
ber 3
1, 20
19
. In
fo
rm
atio
n reg
ard
ing
th
e firm
’s a
ssets un
der s
up
erv
isio
n, c
apital
ratios, r
isk-w
eig
hted
assets, s
up
plem
entary
leverage ratio,
bala
nce sheet d
ata and glo
bal c
ore l
iquid
assets (G
CL
A) c
onsists
of prelim
inary e
stim
ate
s. T
hese estim
ates are f
orw
ard-looking s
tatem
ents
and a
re s
ubject to
cha
nge, p
ossib
ly
materially, a
s t
he f
irm
com
ple
tes i
ts f
ina
ncial s
tate
men
ts. S
tatem
ents r
eg
arding (
i) e
stim
ated G
DP grow
th, (
ii) th
e im
pact o
f t
he C
OV
ID
-19
pan
dem
ic on the firm
’s busin
ess, resu
lts, f
ina
ncial position a
nd l
iquidity, (
iii
) t
he t
im
ing
, pro
fit
abilit
y, b
enefits and oth
er p
ro
sp
ectiv
e aspects of b
usiness i
niti
ativ
es a
nd th
e ach
iev
ab
ility
of m
ed
iu
m- a
nd
lo
ng
-term
targets and g
oa
ls, (
iv
) th
e fu
tu
re state o
f th
e f
irm
’s liqu
id
ity
an
d r
egulato
ry capit
al r
atios,
(v) t
he f
irm
’s
prosp
ective capita
l d
istr
ibution
s (
inclu
ding
divid
en
ds), (vi) the firm
’s future effective i
ncom
e ta
x rate, a
nd
(vii)
the f
irm
’s i
nvestm
ent bank
ing t
ra
nsactio
n b
ack
lo
g a
re f
orw
ard-lo
oking s
tate
ments. Statem
en
ts r
egarding
estim
ate
d G
DP
grow
th are sub
ject
to the
ris
k that
actual
GD
P g
row
th m
ay differ,
possibly m
ate
rially
, d
ue t
o, am
ong o
ther thin
gs, c
hanges in
ge
neral e
conom
ic condition
s. Statem
ents a
bou
t the effects of th
e C
OV
ID
-19 pandem
ic o
n t
he f
irm
’s b
usin
ess, r
esults, finan
cial
positi
on a
nd li
quidity a
re s
ubject t
o th
e risk
th
at t
he actual im
pact m
ay d
iffer, p
ossib
ly
materially
, fro
m w
hat is
cu
rren
tly ex
pected. S
tatem
ents about t
he ti
ming, p
rofita
bility, b
enefit
s and o
ther prospectiv
e a
sp
ects o
f b
usin
ess i
nitia
tiv
es and
the ach
ievability o
f m
ed
iu
m a
nd
lo
ng-term
targ
ets a
nd
go
als are b
ased
on
th
e firm
’s c
urre
nt exp
ectatio
ns r
eg
ardin
g o
ur ab
ili
ty
to
im
plem
ent t
hese in
itiati
ves and
achieve t
hese ta
rg
ets a
nd goals and m
ay c
hange, possibly m
ateria
lly, from
w
ha
t is c
urrently e
xpected. S
tatem
ents about th
e future state o
f t
he f
irm
’s l
iquidity
and re
gulatory capital r
atios, as w
ell a
s i
ts p
rospectiv
e capit
al d
istributions, are subje
ct
to the r
isk th
at
the
fir
m’s actu
al
liq
uid
ity
, r
egu
lato
ry
cap
ital r
atios a
nd
cap
ital d
istrib
utio
ns m
ay d
iffer, p
ossib
ly
mate
rially, f
rom
what i
s currentl
y expected. S
tatem
ents a
bout t
he f
irm
’s f
uture e
ffective i
ncom
e t
ax r
ate a
re s
ubject t
o t
he r
isk that t
he f
irm
’s f
utu
re e
ffe
cti
ve i
ncom
e t
ax r
ate m
ay d
iffer f
rom
the a
nticip
ated
rate i
ndicated, p
ossib
ly m
aterially, d
ue to
, a
mong oth
er t
hings, cha
nges i
n t
he f
irm
’s e
arnin
gs m
ix o
r p
rofitabil
ity
, the e
ntities i
n w
hich t
he f
irm
generate
s p
ro
fits a
nd th
e assum
pti
on
s m
ade in
forecastin
g the
fir
m’s ex
pecte
d tax ra
te, a
nd
potentia
l future guidance from
th
e U
.S. I
RS
. Statem
ents ab
out th
e firm
’s i
nvestm
ent
ban
king
tran
saction backlo
g a
re sub
ject to
th
e risk th
at tr
ansactions m
ay b
e m
odified o
r n
ot c
om
pleted a
t all
and a
ssoc
iated n
et reven
ues m
ay not b
e rea
lized o
r m
ay b
e m
ateriall
y l
ess t
han t
ho
se c
urrently
exp
ected
. Im
portant f
actors th
at could h
ave such a
result
includ
e, for un
de
rw
ritin
g t
ran
sacti
ons, a
dec
lin
e o
r w
eakn
ess i
n g
eneral econom
ic c
ond
iti
on
s, a
n o
utbreak o
f ho
stiliti
es, v
olatili
ty
in t
he s
ecu
ritie
s m
arkets o
r an a
dverse d
evelo
pm
ent w
ith r
espect t
o t
he i
ssue
r of t
he s
ecurities a
nd, f
or f
inancia
l ad
visory t
ransactio
ns, a
decli
ne in
th
e securit
ies m
ark
ets, an i
nabil
ity t
o o
btain
adequate finan
cing, a
n adverse develo
pm
ent
wit
h respect to
a p
arty
to
the tran
sac
tion o
r a
failure to
o
btain
a require
d reg
ulatory a
pprova
l. 1
4
Fo
otn
otes 1. A
nn
ualiz
ed return o
n a
verage c
om
mon
shareh
olde
rs’ e
qu
ity (
RO
E) is c
alculated b
y d
iv
iding
an
nualiz
ed n
et e
arning
s ap
plicable t
o c
om
mo
n sh
areh
old
ers b
y a
verag
e m
onth
ly
co
mm
on
shareho
ld
ers’ e
qu
ity
. A
nn
ualized
retu
rn
on
av
erage t
an
gib
le com
mo
n sharehold
ers’ equit
y (
RO
TE
) is
calcu
lated b
y d
ivid
ing a
nnualiz
ed net
earnings applicab
le t
o c
om
mon s
hareholders b
y a
verage m
onthly t
angib
le c
om
mo
n shareho
lders’ eq
uit
y. T
angib
le com
mo
n s
hareh
old
ers’ e
quity is c
alculated a
s total shareho
lders’ eq
uity
less p
re
ferred stock, g
ood
wil
l a
nd i
dentifiab
le i
ntangib
le a
ssets. T
an
gible
book va
lue p
er com
mon sh
are (
TB
VP
S) i
s calc
ulated b
y d
ivid
ing t
angible
co
mm
on s
hareho
lders’ e
qu
ity b
y b
asic s
hares. M
ana
gem
en
t b
eliev
es t
hat t
an
gible co
mm
on
sh
areh
old
ers’ e
qu
ity
an
d T
BV
PS are m
ea
ningful b
eca
use t
hey a
re m
easures t
hat t
he f
irm
and in
vestors u
se t
o a
ssess capita
l ade
quacy and tha
t R
OT
E is m
eaning
ful b
ecause it
m
easures the
perform
ance of b
usinesses c
onsistently, w
hether they w
ere acquir
ed o
r d
evelope
d internally
. T
angible c
om
mon s
ha
reholde
rs’ e
quity, R
OT
E a
nd T
BV
PS
are non-G
AA
P m
easures a
nd m
ay not b
e com
parable t
o s
im
ila
r n
on-G
AA
P m
easures u
sed
b
y o
ther c
om
pan
ies.
Th
e t
able b
elo
w p
resen
ts a
rec
on
ciliati
on
of a
verag
e a
nd
en
ding
co
mm
on
shareho
lders’ e
qu
ity t
o a
verage
and e
nding tangible c
om
mon shareholders’ equity: A
VE
RA
GE
FO
R T
HE
AS
OF
TH
RE
E M
ON
TH
S E
ND
ED
SIX
M
ON
TH
S E
ND
ED
Unaudit
ed, $
in m
illi
on
s JU
NE
30,
2020
JU
NE
30, 2
020 JU
NE
30, 2
02
0 M
AR
CH
31,
2020
JU
NE
30, 2
019 T
otal s
hareholders’ e
qu
ity
$ 9
2,3
15 $
91,2
49 $
92,0
79 $ 9
2,3
79 $
90,8
92
Pre
ferred stock (11
,203) (
11,203) (
11,2
03) (1
1,2
03) (1
1,2
03) C
om
mon s
hareho
lders’ e
quity 81
,11
2 8
0,0
46 8
0,8
76 8
1,1
76 7
9,6
89 G
oodw
ill a
nd i
dentifiable i
ntangible a
ssets (
4,8
06) (4,814) (
4,7
92) (
4,8
10) (4,114) T
angible c
om
mon
shareholders’ equity
$ 7
6,306 $ 75,23
2 $
76,0
84 $
76,366 $ 75,5
75 2.
De
alo
gic –
Jan
uary 1, 2
020 t
hro
ugh J
une 30, 2
020. 3
. F
or i
nform
ati
on a
bou
t t
he
fo
llo
wing i
tem
s, s
ee t
he r
eferenced sectio
ns in
Part I
, Item
2 “
Man
ag
em
en
t’s D
iscussio
n a
nd A
nalysis of Financial
Condit
ion a
nd R
esults of O
perations”
in
th
e f
irm
’s Q
uarterly
R
eport o
n F
orm
10-Q
for t
he period e
nded M
arch 3
1,
2020: (
i) in
vestm
ent b
ankin
g t
ransaction backlo
g – see “R
esults o
f O
perations –
Investm
ent
Bankin
g” (ii) assets u
nder supervision –
see “
Results of O
peration
s – A
ssets
Un
der Su
pervisio
n” (iii)
effic
iency ratio
– s
ee “
Results o
f O
peratio
ns –
Op
era
tin
g E
xp
en
se
s” (
iv
) basic
sh
ares – see “B
alan
ce S
he
et
an
d F
un
ding
Sou
rces –
Balan
ce S
heet A
nalysis a
nd
Metr
ics” (v
) s
hare r
ep
urchase pro
gram
–
see “E
quity
C
ap
ita
l M
anagem
ent a
nd R
egulatory
C
apit
al –
E
qu
ity
C
ap
ital M
an
agem
en
t” a
nd
(v
i) g
lob
al c
ore l
iq
uid
assets –
see “R
isk
Ma
nag
em
en
t –
Liq
uid
ity
R
isk M
an
ag
em
en
t.” F
or info
rm
ation
ab
ou
t risk
-based
cap
ital r
ati
os an
d the
su
pp
lem
entary lev
erag
e ratio
, see N
ote 2
0 “
Regulation and C
apital
Adequacy” in Part I
, Item
1 “
Financia
l Statem
ents
(U
naudited)” in
th
e firm
’s Q
uarterly R
eport o
n F
orm
10-Q
fo
r t
he p
erio
d end
ed
M
arch
3
1, 2
02
0. 4
. R
ep
resen
ts a
prelim
inary
esti
mate f
or t
he secon
d q
uarter o
f 2
020
an
d m
ay b
e r
ev
ised
in
th
e f
irm
’s Q
uarterly R
ep
ort on
Form
1
0-Q
fo
r th
e p
erio
d e
nd
ed
Ju
ne 30
, 2
02
0. 5
. I
n t
he f
irst q
uarter of 2
02
0, th
e firm
ad
opted
A
SU
No. 2
01
6-13, F
inan
cial I
nstrum
en
ts -
Cred
it
Losses (
To
pic 3
26
) –
Measu
rem
ent
of C
red
it L
osses o
n F
inancial I
nstrum
ents
. For furth
er in
form
atio
n abou
t A
SU
No
. 20
16-13
, s
ee
Note
3 S
ignific
an
t A
cc
ounting Policies i
n P
art
I, I
tem
1 F
inancial S
tate
ments (
Unaudit
ed) i
n t
he f
irm
's Q
uarterly
R
ep
ort o
n F
orm
10-Q
for t
he p
eriod ended M
arch 3
1,
2020
. 6.
Include
s c
onsolidate
d investm
en
t e
ntiti
es, s
ub
sta
ntially
all
of w
hich r
elated t
o e
ntiti
es e
ng
aged i
n r
eal
estate i
nvestm
ent
activ
ities. T
hese assets
are g
enerally a
ccounted f
or at h
istorical c
ost le
ss d
epreciatio
n. 7.
GS
Person
al
Finan
cial M
anagem
en
t, f
orm
erly
U
nited C
apital F
inancial P
artners, Inc.,
wa
s a
cq
uired by the
fir
m i
n t
he t
hird q
uarte
r of 2
019. 8. I
n t
he s
econd qu
arter of
20
20,
the U
.S. F
ederal
Reserve r
evised
the c
alcu
latio
n of t
he supplem
entary l
everag
e r
atio
to
exclu
de U
.S. T
reasury s
ecu
rities a
nd
cash h
eld a
t t
he U
.S. F
ed
eral R
eserv
e. T
he e
stim
ate
d im
pact o
f t
his c
hang
e w
as a
n in
crease in
the firm
’s su
pplem
entary le
verage r
atio
of approxim
ately 0
.8 percentage p
oints
. 15F
ootnotes 1
. A
nnua
lized return
on average com
mon s
hareh
olders’ e
quity
(R
OE
) i
s c
alcu
late
d b
y d
ividin
g an
nua
lized
net earn
in
gs a
pp
licable
to c
om
mon
shareho
lders by av
erag
e m
on
th
ly com
mo
n s
hareho
lders’ e
qu
ity. A
nnu
ali
zed
return
o
n av
erag
e tang
ib
le c
om
mo
n sh
areho
ld
ers’ equity
(R
OT
E) i
s calcu
late
d by
d
ividing
an
nualized
net earning
s a
pp
licable
to com
mo
n s
hareh
old
ers by average m
onthly
tangible c
om
mon s
hareholders’ equity. T
angib
le com
mon sh
areh
olders’ equit
y i
s c
alcu
late
d as to
tal s
hareh
olders’ e
qu
ity less p
referred
sto
ck
, g
oo
dw
ill a
nd
id
en
tifiab
le intan
gible
assets
. T
ang
ible bo
ok
valu
e p
er c
om
mo
n share (T
BV
PS
) is c
alcu
lated
by
div
idin
g t
an
gib
le co
mm
on sharehold
ers’ e
qu
ity
by
b
asic s
hares. M
an
ag
em
en
t b
elie
ves t
hat t
angible c
om
mon share
holders’ equity a
nd T
BV
PS
are m
eaningful b
ecause the
y are m
easures t
hat t
he f
irm
and i
nvestors u
se to
assess c
apital a
dequacy a
nd th
at R
OT
E i
s m
eanin
gful be
cause i
t m
easures th
e pe
rform
ance o
f b
usinesses c
onsistently
, w
heth
er th
ey
w
ere acqu
ired
or d
ev
elo
ped
in
ternally
. T
an
gible co
mm
on
sh
areh
old
ers’ e
qu
ity
, R
OT
E a
nd T
BV
PS
are n
on-G
AA
P m
easures a
nd m
ay n
ot b
e com
parable to
sim
ilar n
on-G
AA
P m
easures u
sed
by
other c
om
pa
nies. T
he t
ab
le b
elow
presents
a r
econcilia
tion
of average and e
nding com
mon s
harehold
ers’ e
quity
to
average and end
ing t
ang
ib
le co
mm
on s
harehold
ers’ e
qu
ity: A
VE
RA
GE
FO
R T
HE
AS
OF T
HR
EE
MO
NT
HS
EN
DE
D SIX
MO
NT
HS
EN
DE
D U
naudited
, $
in
millio
ns J
UN
E 3
0, 2020 J
UN
E 3
0, 2020 J
UN
E 3
0, 2020 M
AR
CH
31
, 2020
JU
NE
30, 2019
Tota
l shareholders’ equity $
92
,315 $ 91,2
49
$ 9
2,0
79 $
92
,379
$ 9
0,8
92 P
referred s
tock (11,2
03) (11
,203) (
11,203) (
11,203) (
11,2
03) C
om
mon
shareholders’ e
quity
81,1
12 8
0,0
46 8
0,8
76 8
1,1
76 7
9,689 G
oodw
ill
and id
entifiable i
ntangible a
ssets (4,8
06) (
4,814) (
4,7
92) (4,81
0) (
4,114) T
angib
le c
om
mon share
holders’ equit
y $
76
,3
06 $ 7
5,2
32 $
76,0
84 $
76,3
66 $ 7
5,5
75 2
. D
ealog
ic – January 1, 2
020 t
hrough J
une 30, 2
020. 3
. F
or in
form
atio
n about t
he follo
wing i
tem
s, s
ee t
he r
eferenced sections i
n P
art I
, Item
2 “M
anagem
ent’s D
iscu
ssio
n and A
na
lysis of Finan
cial C
on
dit
io
n a
nd R
esult
s of O
peration
s” i
n t
he f
irm
’s Q
uarterly R
eport o
n Form
10-Q
for th
e pe
riod e
nded M
arch 3
1,
2020: (
i) in
vestm
ent b
ankin
g tr
ansaction backlog – see “R
esults o
f O
perati
ons – Investm
ent B
anking” (ii) assets
un
der su
perv
isio
n –
see “
Resu
lts o
f O
peration
s –
Assets U
nd
er Su
perv
isio
n” (iii) effic
iency ratio
– s
ee “
Resu
lts o
f O
peration
s –
Operati
ng E
xpen
ses” (
iv) basic s
hares – see “B
alance S
heet
and F
unding S
ources – B
alan
ce S
heet A
nalysis a
nd M
etrics” (v
) s
hare r
ep
urch
ase
pro
gram
–
see “E
qu
ity C
ap
ita
l M
an
ag
em
en
t a
nd
R
eg
ulato
ry C
ap
ita
l – E
qu
ity
C
ap
ital M
an
ag
em
en
t” a
nd
(vi) g
lob
al c
ore l
iq
uid
assets –
see
“R
isk M
ana
gem
en
t –
Liquid
ity
R
isk
Man
ag
em
en
t.” F
or info
rm
ation ab
out risk
-b
ased c
ap
ital r
ati
os an
d th
e s
up
plem
entary l
ev
erag
e ratio
, see N
ote 2
0 “R
eg
ulation
an
d C
ap
ital A
deq
uac
y” in Pa
rt I
, Item
1 “
Fin
an
cial
Statem
ents
(U
nau
dited
)” in
th
e firm
’s Q
uarterly
Re
port o
n F
orm
10
-Q
for t
he p
erio
d en
ded
M
arc
h 3
1, 2
02
0. 4. R
ep
resents a p
re
lim
inary e
sti
mate f
or th
e second
quarter o
f 2
020 an
d m
ay b
e r
ev
ised i
n t
he f
irm
’s Q
uarte
rly R
ep
ort on Fo
rm
1
0-Q
for th
e period
end
ed J
une 3
0, 2
020. 5
. I
n t
he f
irst quarter of 2020,
the firm
ado
pted A
SU
No.
2016-13, F
inancial In
strum
ents -
Credit L
osses (T
op
ic 3
26
) –
Measu
rem
ent o
f C
re
dit L
osses on
Fin
ancial I
nstrum
ents
. For f
urther in
form
ation about A
SU
No.
2016-13
, s
ee N
ote 3
Signific
ant A
ccounting Policies i
n P
art
I, I
tem
1
Fin
ancial S
tate
men
ts (U
naudit
ed) i
n t
he f
irm
's Q
uarterly
R
epo
rt o
n F
orm
10-Q
for t
he perio
d e
nded M
arch 3
1, 2020.
6. Includes c
on
solidate
d inv
estm
ent e
ntiti
es, s
ubsta
ntially all
of
which r
elated to entit
ies enga
ged in real estate i
nvestm
en
t acti
vitie
s. T
hese assets are
gen
erally
accoun
ted
for at
his
torical c
ost l
ess d
epreciati
on.
7. G
S P
erso
nal Financial
Manag
em
ent, f
orm
erly
United C
apital
Financial P
artners, In
c., w
as a
cquired by th
e firm
in
the thir
d q
uarter o
f 2
01
9. 8
. I
n th
e s
eco
nd q
uarte
r of 2
020
, th
e U
.S. F
ederal
Reserv
e r
ev
ised
th
e c
alcu
latio
n of t
he su
pp
lem
en
tary
lev
erag
e r
atio
to
ex
clu
de U
.S. T
reasury
secu
ritie
s a
nd
cash
held
at t
he U
.S. F
ederal R
eserve
. Th
e e
stim
ate
d im
pact o
f t
his c
hange w
as a
n i
ncrease in
th
e firm
’s supplem
entary le
verage r
atio
of approxim
ately 0
.8 p
ercentage p
oints. 1
5