The Goldman Sachs Group, Inc. (GS) 8-KFull Year and Fourth Quarter 2019 Earnings Results
Filed: 15 Jan 20, 7:38am
Exhibit 99.1
Full Year and
Fourth Quarter 2019
Earnings Results
Media Relations: Jake Siewert 212-902-5400 Investor Relations: Heather Kennedy Miner 212-902-0300
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The Goldman Sachs Group, Inc. 200 West Street | New York, NY 10282
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Full Year and Fourth Quarter 2019 Earnings Results
Goldman Sachs Reports Earnings Per Common Share of $21.03 for 2019
Fourth Quarter Earnings Per Common Share was $4.69
“Strong performance in the fourth quarter helped us to deliver solid results for the year, while continuing to invest in new businesses. We aim to drive higher returns in the future, and look forward to sharing our strategic goals and financial targets at Investor Day later this month.” |
-David M. Solomon,Chairman and Chief Executive Officer
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Financial Summary
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Net Revenues
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Net Earnings
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EPS
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2019 $36.55 billion
4Q19 $9.96 billion
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2019 $8.47 billion
4Q19 $1.92 billion
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2019 $21.03
4Q19 $4.69
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ROE1
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ROTE1
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Book Value Per Share
| ||||||
2019 10.0%
4Q19 8.7%
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2019 10.6%
4Q19 9.2%
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2019 $218.52
2019 Growth 5.4%
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NEW YORK, January 15, 2020 – The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of $36.55 billion and net earnings of $8.47 billion for the year ended December 31, 2019. Net revenues were $9.96 billion and net earnings were $1.92 billion for the fourth quarter of 2019.
Diluted earnings per common share (EPS) was $21.03 for the year ended December 31, 2019 compared with $25.27 for the year ended December 31, 2018, and was $4.69 for the fourth quarter of 2019 compared with $6.04 for the fourth quarter of 2018 and $4.79 for the third quarter of 2019.
Return on average common shareholders’ equity (ROE)1 was 10.0% for 2019 and annualized ROE was 8.7% for the fourth quarter of 2019. Return on average tangible common shareholders’ equity (ROTE)1 was 10.6% for 2019 and annualized ROTE was 9.2% for the fourth quarter of 2019.
During 2019, the firm recorded net provisions for litigation and regulatory proceedings of $1.24 billion, which reduced diluted EPS by $3.16 and reduced ROE by 1.5 percentage points and ROTE by 1.6 percentage points.
1
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
Annual Highlights
◾ | Net revenues were $36.55 billion, which included fourth quarter net revenues of $9.96 billion, the second highest fourth quarter net revenues and the highest since 2007. |
◾ | The firm ranked #1 in worldwide announced and completed mergers and acquisitions for the year2. The firm also ranked #1 in worldwide equity and equity-related offerings and common stock offerings for the year2. |
◾ | Investment Banking generated net revenues of $7.60 billion, its second highest annual net revenues. |
◾ | FICC financing net revenues increased for the fifth consecutive year to a record $1.38 billion. |
◾ | Firmwide assets under supervision3,4 increased $317 billion5 during the year to a record $1.86 trillion, including net inflows of $108 billion in long-term assets under supervision. |
◾ | Consumer & Wealth Management generated record net revenues of $5.20 billion, including record Management and other fees in Wealth management and significant growth in Consumer banking net revenues. |
◾ | During 2019, the firm returned $6.88 billion of capital to common shareholders, including $5.34 billion of share repurchases and $1.54 billion of common stock dividends. |
Full Year Net Revenue Mix by Segment6
2
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
Net Revenues
|
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Full Year | ||||
Net revenues were $36.55 billion for 2019, essentially unchanged compared with 2018, reflecting lower net revenues in Investment Banking, offset by slightly higher net revenues in Global Markets. |
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2019 Net Revenues
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$36.55 billion
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Fourth Quarter | ||||
Net revenues were $9.96 billion for the fourth quarter of 2019, 23% higher than the fourth quarter of 2018 and 20% higher than the third quarter of 2019. The increase compared with the fourth quarter of 2018 primarily reflected significantly higher net revenues in Asset Management and Global Markets. |
4Q19 Net Revenues
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$9.96 billion
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| Investment Banking |
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Full Year | ||||||
Net revenues in Investment Banking were $7.60 billion for 2019, 7% lower compared with a strong 2018, reflecting lower net revenues in Underwriting and Financial advisory, partially offset by higher net revenues in Corporate lending.
The decrease in Underwriting net revenues was due to lower net revenues in Debt underwriting, driven by lower net revenues from investment-grade and leveraged finance activity, and in Equity underwriting, reflecting a decline in industry-wide initial public offerings. The decrease in Financial advisory net revenues reflected a decrease in industry-wide completed mergers and acquisitions transactions. |
2019 Investment Banking
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$7.60 billion
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| Financial Advisory | $3.20 billion | ||||
Underwriting | $3.60 billion | |||||
Corporate Lending
| $801 million
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The firm’s investment banking transaction backlog3was essentially unchanged compared with the end of 2018. | ||||||
Fourth Quarter | ||||||
Net revenues in Investment Banking were $2.06 billion for the fourth quarter of 2019, 6% lower than the fourth quarter of 2018 and 12% higher than the third quarter of 2019. The decrease compared with the fourth quarter of 2018 reflected significantly lower net revenues in Financial advisory and lower net revenues in Corporate lending, partially offset by significantly higher net revenues in Underwriting.
The decrease in Financial advisory net revenues, compared with a strong prior year period, reflected a significant decrease in industry-wide completed mergers and acquisitions volumes. The increase in Underwriting net revenues was due to significantly higher net revenues in Debt underwriting, driven by asset-backed activity, and higher net revenues in Equity underwriting, reflecting an increase in industry-wide transactions.
The firm’s investment banking transaction backlog3 increased compared with the end of the third quarter of 2019. |
4Q19 Investment Banking
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$2.06 billion
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Financial Advisory | $855 million | |||||
Underwriting | $977 million | |||||
Corporate Lending
| $232 million
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3
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
| Global Markets |
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Full Year | ||||||
Net revenues in Global Markets were $14.78 billion for 2019, 2% higher than 2018.
NetrevenuesinFixedIncome,CurrencyandCommodities(FICC)were$7.39 billion, 6% higher than 2018, due to slightly higher net revenues in FICC intermediation, reflecting significantlyhigher netrevenues incommodities and mortgagesand highernet revenues in interest rate products, partially offset by significantly lower net revenues in currencies and lower net revenues in credit products. In addition, net revenues in FICC financing were higher, reflecting higher net revenues in structured credit financing.
Net revenues in Equities were $7.39 billion, essentially unchanged compared with 2018. Net revenues in Equities intermediation were lower, reflecting lower net revenuesin derivatives, partiallyoffset by higher net revenues in cash products.This decreasewas offset byhigher net revenuesin Equitiesfinancing, reflecting improved spreads. |
2019 Global Markets
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$14.78 billion
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FICC Intermediation | $6.01 billion | |||||
FICC Financing | $1.38 billion | |||||
FICC | $7.39 billion | |||||
Equities Intermediation | $4.37 billion | |||||
Equities Financing | $3.02 billion | |||||
Equities | $7.39 billion
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Fourth Quarter | ||||||
Net revenuesin GlobalMarkets were $3.48 billionfor thefourthquarter of 2019, 33% higher than the fourth quarter of 2018 and 2% lower than the third quarter of 2019.
Net revenues in FICC were $1.77 billion, 63% higher compared with a weak fourth quarter of 2018, primarily due to significantly higher net revenues in FICC intermediation, reflecting higher net revenues across most major businesses, includingsignificant increasesin interestrate products, commodities and mortgages. In addition, net revenues in FICC financing were higher.
Net revenues in Equities were $1.71 billion, 12% higher than the fourth quarter of 2018, due to higher net revenues in Equities financing, reflecting improved spreads and higher average customer balances, and in Equities intermediation, reflecting significantly higher net revenues in cash products. |
4Q19 Global Markets
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$3.48 billion
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FICC Intermediation | $1.38 billion | |||||
FICC Financing | $387 million | |||||
FICC | $1.77 billion | |||||
Equities Intermediation | $979 million | |||||
Equities Financing | $732 million | |||||
Equities | $1.71 billion
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| Asset Management |
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Full Year | ||||||
Net revenues in Asset Management were $8.97 billion for 2019, essentially unchangedcomparedwith2018,reflectinghighernetrevenuesinEquityinvestments, offset by significantly lower Incentive fees and lower net revenues in Lending. Management and other fees were essentially unchanged.
The increase in Equity investments net revenues reflected significantly higher net gains from investments in public equities, partially offset by slightly lower net gains from investments in private equities.The decrease in Lendingnet revenuesprimarily reflectedlower netgains from investments in debt instruments. Management and otherfeesreflectedthe impactofhigheraverageassetsundersupervision,offsetbya lower average effective fee due to shifts in the mix of client assets and strategies. |
2019 Asset Management
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$8.97 billion
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Management and Other Fees | $ 2.60 billion | |||||
Incentive Fees | $130 million | |||||
Equity Investments | $4.77 billion | |||||
Lending
| $1.47 billion
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4
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
| Asset Management |
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Fourth Quarter |
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Net revenues in Asset Management were $3.00 billion for the fourth quarter of 2019, 52% higher than the fourth quarter of 2018 and 85% higher than the third quarter of 2019. The increase compared with the fourth quarter of 2018 reflected significantly higher net revenues in Equity investments and Lending, as well as higher Management and other fees, partially offset by lower Incentive fees.
The increase in Equity investments net revenues reflected significant net gains in public equities compared with net losses in the prior year period and significantly higher net gains in private equities. The increase in Lending net revenues primarily reflected higher net gains from investments in debt instruments. 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. |
4Q19 Asset Management
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$3.00 billion
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Management and Other Fees | $ 666 million | |||||
Incentive Fees | $ 45 million | |||||
Equity Investments | $1.87 billion | |||||
Lending
| $427 million
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| Consumer & Wealth Management |
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Full Year |
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Net revenues in Consumer & Wealth Management were $5.20 billion for 2019, essentially unchanged compared with 2018.
Net revenues in Wealth management were $4.34 billion, 5% lower than 2018, reflecting significantly lower Incentive fees and slightly lower net revenues in Private banking and lending. These decreases were partially offset by higher Management and other fees (including the impact of United Capital7), reflecting higher average assets under supervision.
Net revenues in Consumer banking were $864 million, 41% higher than 2018, driven by higher net interest income, primarily reflecting an increase in deposit balances. |
2019 Consumer & Wealth Management
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$5.20 billion
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Wealth Management | $ 4.34 billion | |||||
Consumer Banking
| $864 million
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Fourth Quarter | ||||||
Net revenues in Consumer & Wealth Management were $1.41 billion for the fourth quarter of 2019, 8% higher than the fourth quarter of 2018 and 7% higher than the third quarter of 2019.
Net revenues in Wealth management were $1.18 billion, 6% higher than the fourth quarter of 2018, due to higher Management and other fees (including the impact of United Capital7), reflecting higher average assets under supervision. This increase was partially offset by lower Incentive fees, while net revenues in Private banking and lending were essentially unchanged.
Net revenues in Consumer banking were $228 million, 23% higher than the fourth quarter of 2018, driven by higher net interest income, primarily reflecting an increase in deposit balances. |
4Q19 Consumer & Wealth Management
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$1.41 billion
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Wealth Management | $ 1.18 billion | |||||
Consumer Banking
| $228 million
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5
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
Provision for Credit Losses
Full Year | ||||
Provisionfor creditlosses was $1.07 billion for 2019,58% higherthan 2018, primarily reflecting higher impairments and higher provisions related to consumer loans. |
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2019 Provision for Credit Losses
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$1.07 billion
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Fourth Quarter | ||||
Provisionfor creditlosses was $336 million forthe fourthquarter of 2019, 51%higher than the fourth quarter of 2018 and 15% higher than the third quarter of 2019. The increase compared with the fourth quarter of 2018 primarily reflected higher impairments. |
4Q19 Provision for Credit Losses
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$336 million
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Operating Expenses
Full Year | ||||
Operating expenses were $24.90 billion for 2019, 6% higher than 2018. The firm’s efficiency ratio3for 2019 was 68.1%, compared with 64.1% for 2018.
The increase in operating expenses compared with 2018 primarily reflected significantly higher net provisions for litigation and regulatory proceedings and higher expenses for consolidated investments and technology (increases primarily in depreciationand amortization,communications andtechnology, occupancyand other expenses). Inaddition, 2019included higherexpensesrelatedto thefirm’s creditcard and transaction banking activities (increases were primarily in professional fees and other expenses) and also included the impact of United Capital7. Compensation and benefits expenses were essentially unchanged compared with 2018.
Net provisions for litigation and regulatory proceedings for 2019 were $1.24 billion compared with $844 million for 2018.
Headcount increased 5% during 2019, reflecting an increase in the firm’s technology professionals and the impact of United Capital7. |
2019 Operating Expenses
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$24.90 billion
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2019 Efficiency Ratio
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68.1%
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Fourth Quarter | ||||
Operatingexpenses were $7.30 billion forthe fourthquarter of2019, 42%higher than the fourth quarter of 2018 and 30% higher than the third quarter of 2019.
The increase in operating expenses compared with the fourth quarter of 2018 primarily reflected significantly higher compensation and benefits expenses and net provisions for litigation and regulatory proceedings. In addition, expenses related to consolidated investments and technology were higher (increases were primarily in occupancy and depreciation and amortization expenses). The fourth quarter of 2019 alsoincludedhigherexpensesrelatedtothefirm’screditcardandtransactionbanking activities (increases were primarily in professional fees and other expenses) and also included the impact of United Capital7.
Net provisions for litigation and regulatory proceedings for the fourth quarter of 2019 were $1.09 billion compared with $516 million for the fourth quarter of 2018.
The fourth quarter of 2019 included a $140 million charitable contribution to Goldman Sachs Gives. |
4Q19 Operating Expenses
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$7.30 billion
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6
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
Provision for Taxes
The effective income tax rate for 2019 was 20.0%, down from 20.7% for the first nine months of 2019 due to the impact of regulatory guidance released in the fourth quarter related to the international provisions of the Tax Cuts and Jobs Act (Tax Legislation), partially offset by the impact of provisions fornon-deductible litigation. The 2019 effective income tax rate increased from 16.2% for full year 2018, as 2018 included a $487 million income tax benefit related to the finalization of the enactment impact of Tax Legislation. |
2019 Effective Tax Rate
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20.0%
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Other Matters
◾ On January 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 March 30, 2020 to common shareholders of record on March 2, 2020.
◾ During the year, the firm returned $6.88 billion of capital to common shareholders, including $5.34 billion of share repurchases (25.8 million shares at an average cost of $206.56) and $1.54 billion of common stock dividends. This included $2.62 billion of capital returned to common shareholders during the fourth quarter, including $2.16 billion of share repurchases (10.2 million shares at an average cost of $212.67) and $453 million of common stock dividends.3
◾ Global core liquid assets3 averaged $234 billion4 for 2019, compared with an average of $233 billion for 2018.Global core liquid assets averaged $237 billion4 for the fourthquarter of 2019, compared with an average of $238 billion for thethird quarter of 2019. |
Declared Quarterly Dividend Per Common Share
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$1.25
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Common Share Repurchases
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25.8 million shares for $5.34 billion in 2019
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Average GCLA
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$234 billion for 2019
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7
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 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 and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For information about some of the risks and important factors that could affect the firm’s future results and financial condition, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form10-K for the year ended December 31, 2018.
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 I, Item 1A of the firm’s Annual Report on Form10-K for the year ended December 31, 2018.
| 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 dial1-888-281-7154 (in the U.S.) or1-706-679-5627 (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, viae-mail, atgs-investor-
relations@gs.com.
8
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
YEAR ENDED | % CHANGE FROM | |||||||||||||||
DECEMBER 31, 2019 | DECEMBER 31, 2018 | DECEMBER 31, 2018 | ||||||||||||||
INVESTMENT BANKING
| ||||||||||||||||
Financial advisory | $ 3,197 | $ 3,444 | (7) % | |||||||||||||
Equity underwriting | 1,482 | 1,628 | (9) | |||||||||||||
Debt underwriting
|
| 2,119
|
|
| 2,358
|
|
| (10)
|
| |||||||
Underwriting | 3,601 | 3,986 | (10) | |||||||||||||
Corporate lending |
| 801
|
|
| 748
|
|
| 7
|
| |||||||
Net revenues
|
| 7,599
|
|
| 8,178
|
|
| (7)
|
| |||||||
GLOBAL MARKETS
| ||||||||||||||||
FICC intermediation | 6,009 | 5,737 | 5 | |||||||||||||
FICC financing |
| 1,379
|
|
| 1,248
|
|
| 10
|
| |||||||
FICC
| 7,388 | 6,985 | 6 | |||||||||||||
Equities intermediation | 4,374 | 4,681 | (7) | |||||||||||||
Equities financing
|
| 3,017
|
|
| 2,772
|
|
| 9
|
| |||||||
Equities | 7,391 | 7,453 | (1) | |||||||||||||
Net revenues
|
| 14,779
|
|
| 14,438
|
|
| 2
|
| |||||||
ASSET MANAGEMENT
| ||||||||||||||||
Management and other fees | 2,600 | 2,612 | – | |||||||||||||
Incentive fees | 130 | 384 | (66) | |||||||||||||
Equity investments | 4,765 | 4,207 | 13 | |||||||||||||
Lending
|
| 1,470
|
|
| 1,632
|
|
| (10)
|
| |||||||
Net revenues
|
| 8,965
|
|
| 8,835
|
|
| 1
|
| |||||||
CONSUMER & WEALTH MANAGEMENT
| ||||||||||||||||
Management and other fees | 3,475 | 3,282 | 6 | |||||||||||||
Incentive fees | 81 | 446 | (82) | |||||||||||||
Private banking and lending
|
| 783
|
|
| 826
|
|
| (5)
|
| |||||||
Wealth management | 4,339 | 4,554 | (5) | |||||||||||||
Consumer banking |
| 864
|
|
| 611
|
|
| 41
|
| |||||||
Net revenues
|
| 5,203
|
|
| 5,165
|
|
| 1
|
| |||||||
Total net revenues
|
| $ 36,546
|
|
| $ 36,616
|
|
| –
|
| |||||||
Geographic Net Revenues (unaudited)3 $ in millions
|
| |||||||||||||||
YEAR ENDED | ||||||||||||||||
DECEMBER 31, 2019 | DECEMBER 31, 2018 | |||||||||||||||
Americas | $ 22,148 | $ 22,339 | ||||||||||||||
EMEA | 9,745 | 9,244 | ||||||||||||||
Asia
|
| 4,653
|
|
| 5,033
|
| ||||||||||
Total net revenues
|
| $ 36,546
|
|
| $ 36,616
|
| ||||||||||
Americas | 60% | 61% | ||||||||||||||
EMEA | 27% | 25% | ||||||||||||||
Asia
|
| 13%
|
|
| 14%
|
| ||||||||||
Total
|
| 100%
|
|
| 100%
|
|
9
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Segment Net Revenues (unaudited)
$ in millions
THREE MONTHS ENDED | % CHANGE FROM | |||||||||||||||||||||||
DECEMBER 31, 2019 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | ||||||||||||||||||||
INVESTMENT BANKING
| ||||||||||||||||||||||||
Financial advisory | $ 855 | $ 697 | $ 1,198 | 23 % | (29) % | |||||||||||||||||||
Equity underwriting | 378 | 366 | 307 | 3 | 23 | |||||||||||||||||||
Debt underwriting
|
| 599
|
|
| 524
|
|
| 437
|
|
| 14
|
|
| 37
|
| |||||||||
Underwriting | 977 | 890 | 744 | 10 | 31 | |||||||||||||||||||
Corporate lending
|
| 232
|
|
| 254
|
|
| 251
|
|
| (9)
|
|
| (8)
|
| |||||||||
Net revenues
|
| 2,064
|
|
| 1,841
|
|
| 2,193
|
|
| 12
|
|
| (6)
|
| |||||||||
GLOBAL MARKETS
| ||||||||||||||||||||||||
FICC intermediation | 1,382 | 1,315 | 757 | 5 | 83 | |||||||||||||||||||
FICC financing
|
| 387
|
|
| 364
|
|
| 330
|
|
| 6
|
|
| 17
|
| |||||||||
FICC | 1,769 | 1,679 | 1,087 | 5 | 63 | |||||||||||||||||||
Equities intermediation | 979 | 1,080 | 897 | (9) | 9 | |||||||||||||||||||
Equities financing
|
| 732
|
|
| 784
|
|
| 625
|
|
| (7)
|
|
| 17
|
| |||||||||
Equities
|
| 1,711
|
|
| 1,864
|
|
| 1,522
|
|
| (8)
|
|
| 12
|
| |||||||||
Net revenues
|
| 3,480
|
|
| 3,543
|
|
| 2,609
|
|
| (2)
|
|
| 33
|
| |||||||||
ASSET MANAGEMENT
| ||||||||||||||||||||||||
Management and other fees | 666 | 660 | 629 | 1 | 6 | |||||||||||||||||||
Incentive fees | 45 | 24 | 67 | 88 | (33) | |||||||||||||||||||
Equity investments | 1,865 | 596 | 951 | N.M. | 96 | |||||||||||||||||||
Lending
|
| 427
|
|
| 341
|
|
| 327
|
|
| 25
|
|
| 31
|
| |||||||||
Net revenues
|
| 3,003
|
|
| 1,621
|
|
| 1,974
|
|
| 85
|
|
| 52
|
| |||||||||
CONSUMER & WEALTH MANAGEMENT
| ||||||||||||||||||||||||
Management and other fees | 967 | 881 | 830 | 10 | 17 | |||||||||||||||||||
Incentive fees | 19 | 21 | 86 | (10) | (78) | |||||||||||||||||||
Private banking and lending
|
| 194
|
|
| 199
|
|
| 202
|
|
| (3)
|
|
| (4)
|
| |||||||||
Wealth management | 1,180 | 1,101 | 1,118 | 7 | 6 | |||||||||||||||||||
Consumer banking
|
| 228
|
|
| 217
|
|
| 186
|
|
| 5
|
|
| 23
|
| |||||||||
Net revenues
|
| 1,408
|
|
| 1,318
|
|
| 1,304
|
|
| 7
|
|
| 8
|
| |||||||||
Total net revenues
|
| $ 9,955
|
|
| $ 8,323
|
|
| $ 8,080
|
|
| 20
|
|
| 23
|
| |||||||||
Geographic Net Revenues (unaudited) 3 |
| |||||||||||||||||||||||
$ in millions
| ||||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||||
DECEMBER 31, 2019 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | ||||||||||||||||||||||
Americas | $ 6,310 | $ 4,941 | $ 5,178 | |||||||||||||||||||||
EMEA | 2,268 | 2,329 | 1,766 | |||||||||||||||||||||
Asia
|
| 1,377
|
|
| 1,053
|
|
| 1,136
|
| |||||||||||||||
Total net revenues
|
| $ 9,955
|
|
| $ 8,323
|
|
| $ 8,080
|
| |||||||||||||||
Americas | 63% | 59% | 64% | |||||||||||||||||||||
EMEA | 23% | 28% | 22% | |||||||||||||||||||||
Asia
|
| 14%
|
|
| 13%
|
|
| 14%
|
| |||||||||||||||
Total
|
| 100%
|
|
| 100%
|
|
| 100%
|
|
10
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Consolidated Statements of Earnings (unaudited)
In millions, except per share amounts
YEAR ENDED | % CHANGE FROM | |||||||||||||||||
DECEMBER 31, 2019 | DECEMBER 31, 2018 | DECEMBER 31, 2018 | ||||||||||||||||
REVENUES
| ||||||||||||||||||
Investment banking | $ 6,798 | $ 7,430 | (9) % | |||||||||||||||
Investment management | 6,189 | 6,590 | (6) | |||||||||||||||
Commissions and fees | 2,988 | 3,199 | (7) | |||||||||||||||
Market making | 10,157 | 9,724 | 4 | |||||||||||||||
Other principal transactions
|
| 6,052
|
|
| 5,906
|
|
| 2
|
| |||||||||
Total non-interest revenues
|
| 32,184
|
|
| 32,849
|
|
| (2)
|
| |||||||||
Interest income | 21,738 | 19,679 | 10 | |||||||||||||||
Interest expense
|
| 17,376
|
|
| 15,912
|
|
| 9
|
| |||||||||
Net interest income
|
| 4,362
|
|
| 3,767
|
|
| 16
|
| |||||||||
Total net revenues
|
| 36,546
|
|
| 36,616
|
|
| –
|
| |||||||||
Provision for credit losses
|
| 1,065
|
|
| 674
|
| ��
| 58
|
| |||||||||
OPERATING EXPENSES
| ||||||||||||||||||
Compensation and benefits | 12,353 | 12,328 | – | |||||||||||||||
Brokerage, clearing, exchange and distribution fees | 3,252 | 3,200 | 2 | |||||||||||||||
Market development | 739 | 740 | – | |||||||||||||||
Communications and technology | 1,167 | 1,023 | 14 | |||||||||||||||
Depreciation and amortization | 1,704 | 1,328 | 28 | |||||||||||||||
Occupancy | 1,029 | 809 | 27 | |||||||||||||||
Professional fees | 1,316 | 1,214 | 8 | |||||||||||||||
Other expenses
|
| 3,338
|
|
| 2,819
|
|
| 18
|
| |||||||||
Total operating expenses
|
| 24,898
|
|
| 23,461
|
|
| 6
|
| |||||||||
Pre-tax earnings | 10,583 | 12,481 | (15) | |||||||||||||||
Provision for taxes
|
| 2,117
|
|
| 2,022
|
|
| 5
|
| |||||||||
Net earnings
|
| 8,466
|
|
| 10,459
|
|
| (19)
|
| |||||||||
Preferred stock dividends
|
| 569
|
|
| 599
|
|
| (5)
|
| |||||||||
Net earnings applicable to common shareholders
|
| $ 7,897
|
|
| $ 9,860
|
|
| (20)
|
| |||||||||
EARNINGS PER COMMON SHARE
| ||||||||||||||||||
Basic3 | $ 21.18 | $ 25.53 | (17) % | |||||||||||||||
Diluted | $ 21.03 | $ 25.27 | (17) | |||||||||||||||
AVERAGE COMMON SHARES
| ||||||||||||||||||
Basic | 371.6 | 385.4 | (4) | |||||||||||||||
Diluted
|
| 375.5
|
|
| 390.2
|
|
| (4)
|
|
11
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 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 | |||||||||||||||||||||
DECEMBER 31, 2019 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | ||||||||||||||||||
REVENUES
| ||||||||||||||||||||||
Investment banking | $ 1,832 | $ 1,587 | $ 1,942 | 15 % | (6) % | |||||||||||||||||
Investment management | 1,671 | 1,562 | 1,574 | 7 | 6 | |||||||||||||||||
Commissions and fees | 687 | 748 | 838 | (8) | (18) | |||||||||||||||||
Market making | 2,479 | 2,476 | 1,454 | – | 70 | |||||||||||||||||
Other principal transactions
|
| 2,221
|
|
| 942
|
|
| 1,281
|
|
| 136
|
|
| 73
|
| |||||||
Total non-interest revenues
|
| 8,890
|
|
| 7,315
|
|
| 7,089
|
|
| 22
|
|
| 25
|
| |||||||
Interest income | 4,922 | 5,459 | 5,468 | (10) | (10) | |||||||||||||||||
Interest expense
|
| 3,857
|
|
| 4,451
|
|
| 4,477
|
|
| (13)
|
| (14) | |||||||||
Net interest income
|
| 1,065
|
|
| 1,008
|
|
| 991
|
|
| 6
|
|
|
7
|
| |||||||
Total net revenues
|
| 9,955
|
|
| 8,323
|
|
| 8,080
|
|
| 20
|
|
| 23
|
| |||||||
Provision for credit losses
|
| 336
|
|
| 291
|
|
| 222
|
|
| 15
|
|
| 51
|
| |||||||
OPERATING EXPENSES
| ||||||||||||||||||||||
Compensation and benefits | 3,046 | 2,731 | 1,857 | 12 | 64 | |||||||||||||||||
Brokerage, clearing, exchange and distribution fees | 814 | 853 | 830 | (5) | (2) | |||||||||||||||||
Market development | 200 | 169 | 208 | 18 | (4) | |||||||||||||||||
Communications and technology | 308 | 283 | 262 | 9 | 18 | |||||||||||||||||
Depreciation and amortization | 464 | 473 | 377 | (2) | 23 | |||||||||||||||||
Occupancy | 318 | 252 | 215 | 26 | 48 | |||||||||||||||||
Professional fees | 366 | 350 | 317 | 5 | 15 | |||||||||||||||||
Other expenses
|
| 1,782
|
|
| 505
|
|
| 1,084
|
|
| N.M.
|
|
| 64
|
| |||||||
Total operating expenses
|
| 7,298
|
|
| 5,616
|
|
| 5,150
|
|
| 30
|
|
| 42
|
| |||||||
Pre-tax earnings | 2,321 | 2,416 | 2,708 | (4) | (14) | |||||||||||||||||
Provision for taxes
|
| 404
|
|
| 539
|
|
| 170
|
|
| (25)
|
|
| 138
|
| |||||||
Net earnings
|
| 1,917
|
|
| 1,877
|
|
| 2,538
|
|
| 2
|
|
| (24)
|
| |||||||
Preferred stock dividends
|
| 193
|
|
| 84
|
|
| 216
|
|
| 130
|
|
| (11)
|
| |||||||
Net earnings applicable to common shareholders
|
| $ 1,724
|
|
| $ 1,793
|
|
| $ 2,322
|
|
| (4)
|
|
| (26)
|
| |||||||
EARNINGS PER COMMON SHARE
| ||||||||||||||||||||||
Basic3 | $ 4.74 | $ 4.83 | $ 6.11 | (2) % | (22) % | |||||||||||||||||
Diluted | $ 4.69 | $ 4.79 | $ 6.04 | (2) | (22) | |||||||||||||||||
AVERAGE COMMON SHARES
| ||||||||||||||||||||||
Basic | 362.4 | 370.0 | 379.5 | (2) | (5) | |||||||||||||||||
Diluted | 367.3 | 374.3 | 384.3 | (2) | (4) | |||||||||||||||||
SELECTED DATA AT PERIOD-END
| ||||||||||||||||||||||
Common shareholders’ equity | $ 79,062 | $ 80,809 | $ 78,982 | (2) | – | |||||||||||||||||
Basic shares3 | 361.8 | 369.3 | 380.9 | (2) | (5) | |||||||||||||||||
Book value per common share | $ 218.52 | $ 218.82 | $ 207.36 | – | 5 | |||||||||||||||||
Headcount
|
| 38,300
|
|
| 37,800
|
|
| 36,600
|
|
| 1
|
|
| 5
|
|
12
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)4,8
$ in billions
AS OF | ||||||||||||||||||||||
DECEMBER 31, 2019 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | ||||||||||||||||||||
ASSETS
| ||||||||||||||||||||||
Cash and cash equivalents
| $ 133 | $ 94 | $ 131 | |||||||||||||||||||
Collateralized agreements
| 222 | 279 | 275 | |||||||||||||||||||
Trading assets
| 355 | 356 | 280 | |||||||||||||||||||
Investments
| 64 | 62 | 47 | |||||||||||||||||||
Loans
| 109 | 105 | 98 | |||||||||||||||||||
Customer and other receivables
| 75 | 77 | 72 | |||||||||||||||||||
Other assets |
| 35
|
|
| 34
|
|
| 29
|
| |||||||||||||
Total assets
|
| $ 993
|
|
| $ 1,007
|
|
| $ 932
|
| |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
| ||||||||||||||||||||||
Deposits
| $ 190 | $ 183 | $ 158 | |||||||||||||||||||
Collateralized financings
| 152 | 140 | 112 | |||||||||||||||||||
Trading liabilities
| 109 | 116 | 109 | |||||||||||||||||||
Customer and other payables
| 175 | 188 | 180 | |||||||||||||||||||
Unsecured short-term borrowings
| 48 | 52 | 41 | |||||||||||||||||||
Unsecured long-term borrowings
| 207 | 217 | 224 | |||||||||||||||||||
Other liabilities |
| 22
|
|
| 19
|
|
| 18
|
| |||||||||||||
Total liabilities
|
| 903
|
|
| 915
|
|
| 842
|
| |||||||||||||
Shareholders’ equity |
| 90
|
|
| 92
|
|
| 90
|
| |||||||||||||
Total liabilities and shareholders’ equity
|
| $ 993
|
|
| $ 1,007
|
|
| $ 932
|
| |||||||||||||
Capital Ratios and Supplementary Leverage Ratio (unaudited)3,4 $ in billions
|
| |||||||||||||||||||||
AS OF | ||||||||||||||||||||||
DECEMBER 31, 2019 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | ||||||||||||||||||||
Common equity tier 1 capital | $ 74.9 | $ 75.7 | $ 73.1 | |||||||||||||||||||
STANDARDIZED CAPITAL RULES
| ||||||||||||||||||||||
Risk-weighted assets | $ 564 | $ 557 | $ 548 | |||||||||||||||||||
Common equity tier 1 capital ratio | 13.3% | 13.6% | 13.3% | |||||||||||||||||||
ADVANCED CAPITAL RULES
| ||||||||||||||||||||||
Risk-weighted assets
| $ 545 | $ 566 | $ 558 | |||||||||||||||||||
Common equity tier 1 capital ratio | 13.7% |
| 13.4% 9
|
|
| 13.1%
|
| |||||||||||||||
SUPPLEMENTARY LEVERAGE RATIO
| ||||||||||||||||||||||
Supplementary leverage ratio
|
| 6.2%
|
|
| 6.2%
|
|
| 6.2%
|
| |||||||||||||
Average Daily VaR (unaudited)3,4 |
| |||||||||||||||||||||
$ in millions
| ||||||||||||||||||||||
THREE MONTHS ENDED | YEAR ENDED | |||||||||||||||||||||
DECEMBER 31, 2019 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | DECEMBER 31, 2019 | DECEMBER 31, 2018 | ||||||||||||||||||
RISK CATEGORIES
| ||||||||||||||||||||||
Interest rates | $ 49 | $ 49 | $ 40 | $ 46 | $ 46 | |||||||||||||||||
Equity prices
| 24 | 28 | 28 | 27 | 31 | |||||||||||||||||
Currency rates | 11 | 12 | 19 | 11 | 14 | |||||||||||||||||
Commodity prices | 12 | 12 | 12 | 12 | 11 | |||||||||||||||||
Diversification effect |
| (38)
|
|
| (43)
|
|
| (50)
|
|
| (40)
|
|
| (42)
|
| |||||||
Total
|
| $ 58
|
|
| $ 58
|
|
|
$ 49
|
|
|
$ 56
|
| $ 60 |
13
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
The Goldman Sachs Group, Inc. and Subsidiaries
Assets Under Supervision (unaudited)3,4
$ in billions
AS OF | ||||||||||||||||||||||
DECEMBER 31, 2019 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | ||||||||||||||||||||
SEGMENT
| ||||||||||||||||||||||
Asset Management | $ 1,298 | $ 1,232 | $ 1,087 | |||||||||||||||||||
Consumer & Wealth Management
|
| 561
|
|
| 530
|
|
| 455
|
| |||||||||||||
Total AUS
|
| $ 1,859
|
|
| $ 1,762
|
|
| $ 1,542
|
| |||||||||||||
ASSET CLASS
| ||||||||||||||||||||||
Alternative investments | $ 185 | $ 182 | $ 167 | |||||||||||||||||||
Equity | 423 | 392 | 301 | |||||||||||||||||||
Fixed income
|
| 789
|
|
| 784
|
|
| 677
|
| |||||||||||||
Total long-term AUS
|
| 1,397
|
|
| 1,358
|
|
| 1,145
|
| |||||||||||||
Liquidity products
|
| 462
|
|
| 404
|
|
| 397
|
| |||||||||||||
Total AUS
|
| $ 1,859
|
|
| $ 1,762
|
|
| $ 1,542
|
| |||||||||||||
THREE MONTHS ENDED | YEAR ENDED | |||||||||||||||||||||
DECEMBER 31, 2019 | SEPTEMBER 30, 2019 | DECEMBER 31, 2018 | DECEMBER 31, 2019 | DECEMBER 31, 2018 | ||||||||||||||||||
ASSET MANAGEMENT | ||||||||||||||||||||||
Beginning balance | $ 1,232 | $ 1,171 | $ 1,067 | $ 1,087 | $ 1,036 | |||||||||||||||||
Net inflows / (outflows): | ||||||||||||||||||||||
Alternative investments | (1) | (1) | – | 2 | 6 | |||||||||||||||||
Equity | 1 | 26 | (3) | 34 | 6 | |||||||||||||||||
Fixed income |
| (4)
|
|
| 11
|
|
| 8
|
|
| 35
|
|
| 14
|
| |||||||
Total long-term AUS net inflows / (outflows) |
| (4)
|
|
| 36
|
|
| 5
|
|
| 71
|
|
| 26
|
| |||||||
Liquidity products
|
| 50
|
|
| 12
|
|
| 39
|
|
| 52
|
|
| 51
|
| |||||||
Total AUS net inflows / (outflows)
|
| 46
|
|
| 48
| 5
|
| 44
|
|
| 123
| 5
|
| 77
|
| |||||||
Net market appreciation / (depreciation) |
| 20
|
|
| 13
|
|
| (24)
|
|
| 88
|
|
| (26)
|
| |||||||
Ending balance
|
| $ 1,298
|
|
| $ 1,232
|
|
| $ 1,087
|
|
| $ 1,298
|
|
| $ 1,087
|
| |||||||
CONSUMER & WEALTH MANAGEMENT | ||||||||||||||||||||||
Beginning balance | $ 530 | $ 489 | $ 483 | $ 455 | $ 458 | |||||||||||||||||
Net inflows / (outflows): | ||||||||||||||||||||||
Alternative investments | 2 | 9 | (4) | 9 | (5) | |||||||||||||||||
Equity | – | 15 | 2 | 11 | 7 | |||||||||||||||||
Fixed income |
| 4
|
|
| 9
|
|
| –
|
|
| 17
|
|
| 9
|
| |||||||
Total long-term AUS net inflows / (outflows)
|
| 6
|
|
| 33
|
|
| (2)
|
|
| 37
|
|
| 11
|
| |||||||
Liquidity products |
| 8
|
|
| 5
|
|
| –
|
|
| 13
|
|
| 1
|
| |||||||
Total AUS net inflows / (outflows)
|
| 14
|
|
| 38
| 5
|
| (2)
|
|
| 50
| 5
|
| 12
|
| |||||||
Net market appreciation / (depreciation) |
| 17
|
|
| 3
|
|
| (26)
|
|
| 56
|
|
| (15)
|
| |||||||
Ending balance
|
| $ 561
|
|
| $ 530
|
|
| $ 455
|
|
| $ 561
|
|
| $ 455
|
| |||||||
FIRMWIDE | ||||||||||||||||||||||
Beginning balance | $ 1,762 | $ 1,660 | $ 1,550 | $ 1,542 | $ 1,494 | |||||||||||||||||
Net inflows / (outflows): | ||||||||||||||||||||||
Alternative investments | 1 | 8 | (4) | 11 | 1 | |||||||||||||||||
Equity | 1 | 41 | (1) | 45 | 13 | |||||||||||||||||
Fixed income |
| –
|
|
| 20
|
|
| 8
|
|
| 52
|
|
| 23
|
| |||||||
Total long-term AUS net inflows / (outflows)
|
| 2
|
|
| 69
|
|
| 3
|
|
| 108
|
|
| 37
|
| |||||||
Liquidity products |
| 58
|
|
| 17
|
|
| 39
|
|
| 65
|
|
| 52
|
| |||||||
Total AUS net inflows / (outflows)
|
| 60
|
|
| 86
| 5
|
| 42
|
|
| 173
| 5
|
| 89
|
| |||||||
Net market appreciation / (depreciation)
|
| 37
|
|
| 16
|
|
| (50)
|
|
| 144
|
|
| (41)
|
| |||||||
Ending balance
|
| $ 1,859
|
|
| $ 1,762
|
|
| $ 1,542
|
|
| $ 1,859
|
|
| $ 1,542
|
|
14
Goldman Sachs Reports
Full Year and Fourth Quarter 2019 Earnings Results
Footnotes |
|
1. | ROE is calculated by dividing net earnings (or annualized net earnings for annualized ROE) applicable to common shareholders by average monthly common shareholders’ equity. ROTE is calculated by dividing net earnings (or annualized net earnings for annualized ROTE) applicable to common shareholders by average monthly tangible common shareholders’ equity (tangible common shareholders’ equity is calculated as total shareholders’ equity less preferred stock, goodwill and identifiable intangible assets). 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 arenon-GAAP measures and may not be comparable to similarnon-GAAP measures used by other companies. |
The table below presents average equity and a reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity:
AVERAGE FOR THE | ||||||||||||
Unaudited, $ in millions | THREE MONTHS ENDED DECEMBER 31, 2019 | YEAR ENDED DECEMBER 31, 2019 | ||||||||||
Total shareholders’ equity
|
| $ 90,808
|
|
| $ 90,297
|
| ||||||
Preferred stock
|
| (11,203)
|
|
| (11,203)
|
| ||||||
Common shareholders’ equity
|
| 79,605
|
|
| 79,094
|
| ||||||
Goodwill and identifiable intangible assets
|
| (4,862)
|
|
| (4,464)
|
| ||||||
Tangible common shareholders’ equity
|
| $ 74,743
|
|
| $ 74,630
|
|
2. | Dealogic – January 1, 2019 through December 31, 2019. |
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 Form10-Q for the period ended September 30, 2019: (i) investment banking transaction backlog – see “Results of Operations – Investment Banking” (ii) assets under supervision – see “Results of Operations – Investment Management” (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 Reporton Form 10-Q for the period ended September 30, 2019: (i) risk-based capital ratios and 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 havenon-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 fourth quarter of 2019 and may be revised in the firm’s Annual Report on Form10-K for the year ended December 31, 2019. |
5. | Net inflows in assets under supervision for 2019 included $71 billion of total inflows (substantially all in equity and fixed income assets) in connection with the acquisitions of both Standard & Poor’s Investment Advisory Services (SPIAS) and United Capital Financial Partners, Inc. (United Capital) in the third quarter of 2019 ($58 billion) and Rocaton Investment Advisors (Rocaton) in the second quarter of 2019 ($13 billion). SPIAS and Rocaton were included in the Asset Management segment and United Capital was included in the Consumer & Wealth Management segment. |
6. | The firm made certain changes to the firm’s business segments, commencing with the fourth quarter of 2019. For more information about these changes, see the firm’s Form8-K dated January 6, 2020. |
7. | United Capital was acquired by the firm in the third quarter of 2019. |
8. | Beginning in the fourth quarter of 2019, the firm changed the balance sheet presentation to better reflect the nature of the firm’s activities. The primary changes include the elimination of the Financial instruments owned line item, the introduction of new line items for Investments and Trading assets and the expansion of the Loans line item. Reclassifications have been made to previously reported amounts to conform to the current presentation. |
9. | Beginning in the fourth quarter of 2019, the firm made changes to the calculation of loss given default for certain wholesale exposures. As of September 30, 2019, the estimated impact of these changes would have been an increase in the firm’s Advanced common equity tier 1 capital ratio of approximately 1 percentage point. |
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