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.

1

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

2

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

3

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

4

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

5

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-

relations@gs.com.

6

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%

7

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%

8

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

9

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

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0 E

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resen

tatio

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napshot E

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even

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nn

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verview

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ncial R

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ag

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t 1

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mp

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ted

to

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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

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Fin

ancia

ls M

ultif

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ily 3

%, O

ther 7

%) A

sia U

tiliti

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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

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valu

e of $

20

billio

n,

fu

nd

ed

with

liabilitie

s o

f a

pp

ro

xim

ately

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1 b

illio

n,

su

bstan

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lly

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f w

hich

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on

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nd

ustr

ials O

th

er H

ealth

care B

y A

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lass B

y G

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grap

hy

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et of F

in

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cin

g) (

Net

of Fin

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) S

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tu

den

t 34

% N

atural R

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y S

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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