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Earnings release · 8-K exhibit

Goldman Sachs Group · Earnings release

GS · Financials

Filed 2024-10-15 · CY2024 Q4 · Company’s FY2024 Q3 · 4,174 words

Read the original on sec.gov ↗

EX-99.12d824176dex991.htmEX-99.1 EX-99.1

Exhibit 99.1

Third Quarter

2024

Earnings Results

Media Relations: Tony Fratto 212-902-5400

Investor Relations: Jehan Ilahi 212-902-0300

The Goldman Sachs

Group, Inc.

200 West Street | New York, NY 10282

Third Quarter 2024 Earnings Results

Goldman Sachs Reports Third Quarter Earnings Per Common Share of $8.40

“Our performance demonstrates the strength of our world-class

franchise in an improving operating environment. We continue to lean into our strengths – exceptional talent, execution capabilities and risk management expertise

– allowing us to effectively serve our clients against a complex backdrop and deliver for shareholders.”

- David Solomon, Chairman and Chief Executive Officer

Financial Summary

Net Revenues

Net Earnings

EPS

3Q24 $12.70 billion

3Q24 $2.99 billion

3Q24 $8.40

3Q24 YTD $39.64 billion

3Q24 YTD $10.17 billion

3Q24 YTD $28.64

Annualized ROE1

Annualized ROTE1

Book Value Per Share

3Q24 10.4%

3Q24 11.1%

3Q24 $332.96

3Q24 YTD 12.0%

3Q24 YTD 12.9%

YTD Growth 6.2%

NEW YORK, October 15, 2024 – The Goldman

Sachs Group, Inc. (NYSE: GS) today reported net revenues of $12.70 billion and net earnings of $2.99 billion for the third quarter ended September 30, 2024. Net revenues were $39.64 billion and net earnings were $10.17 billion for the

first nine months of 2024.

Diluted earnings per common share (EPS)

was $8.40 for the third quarter of 2024 compared with $5.47 for the third quarter of 2023 and $8.62 for the second quarter of 2024, and was $28.64 for the first nine months of 2024 compared with $17.39 for the first nine months of 2023.

Annualized return on average common shareholders’ equity

(ROE)1 was 10.4% for the third quarter of 2024 and 12.0% for the first nine months of 2024. Annualized return on average tangible common shareholders’ equity (ROTE)1 was 11.1% for the third quarter of 2024 and 12.9% for the first nine months of 2024.

1

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

Quarterly Highlights

◾

Global Banking & Markets generated quarterly net revenues of $8.55 billion, including strong

performance in Equities and record quarterly net revenues in Fixed Income, Currency and Commodities (FICC) financing.

◾

The firm ranked #1 in worldwide announced and completed mergers and acquisitions and common stock

offerings for the year-to-date.2

◾

Asset & Wealth Management generated quarterly net revenues of $3.75 billion, including record

quarterly Management and other fees.

◾

Assets under supervision3 increased $169

billion during the quarter to a record $3.10 trillion.

◾

Book value per common share increased by 1.8% during the quarter to $332.96.

Net Revenues

Net revenues were $12.70 billion for the third quarter of

2024, 7% higher than the third quarter of 2023 and essentially unchanged compared with the second quarter of 2024. The increase compared with the third quarter of 2023 reflected higher net revenues in Global Banking & Markets and Asset &

Wealth Management, partially offset by lower net revenues in Platform Solutions.

Net Revenues

$12.70 billion

2

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

Global Banking & Markets

Net revenues in Global Banking & Markets were $8.55

billion for the third quarter of 2024, 7% higher than the third quarter of 2023 and 5% higher than the second quarter of 2024.

Investment banking fees were $1.87 billion, 20% higher than the third quarter of 2023,

primarily reflecting significantly higher net revenues in Debt underwriting, driven by leveraged finance and investment-grade activity, and higher net revenues in Equity underwriting, driven by secondary offerings. Net revenues in Advisory were

slightly higher. The firm’s Investment banking fees backlog3 increased compared with both the end of the second quarter of 2024 and the end of 2023.

Net

revenues in FICC were $2.96 billion, 12% lower than the third quarter of 2023, reflecting significantly lower net revenues in FICC intermediation, due to significantly lower net revenues in interest rate products and commodities, partially offset by

significantly higher net revenues in currencies and credit products and higher net revenues in mortgages. This decrease was partially offset by significantly higher net revenues in FICC financing, primarily driven by mortgages and structured

lending.

Net revenues in Equities were $3.50 billion, 18% higher than the third quarter of 2023, primarily reflecting significantly higher net revenues in Equities intermediation in both derivatives and cash products. Net revenues in

Equities financing were slightly higher.

Net revenues in Other were $227 million for the third quarter of 2024, compared with $110

million for the third quarter of 2023, primarily reflecting higher net gains from direct investments.

Global Banking & Markets

$8.55 billion

Advisory

$ 875 million

Equity underwriting

$ 385 million

Debt underwriting

$ 605 million

Investment banking fees

$ 1.87 billion

FICC intermediation

$ 2.01 billion

FICC financing

$ 949 million

FICC

$ 2.96 billion

Equities intermediation

$ 2.21 billion

Equities financing

$ 1.29 billion

Equities

$ 3.50 billion

Other

$ 227 million

Asset & Wealth Management

Net revenues in Asset & Wealth Management were $3.75

billion for the third quarter of 2024, 16% higher than the third quarter of 2023 and 3% lower than the second quarter of 2024. The increase compared with the third quarter of 2023 primarily reflected net gains in Equity

investments compared with net losses in the prior year period and higher Management and other fees, partially offset by significantly lower net revenues in Debt investments. In addition, net revenues in Private banking and lending and

Incentive fees were higher.

The increase in Equity investments net revenues primarily reflected net gains from

investments in corporate private and public equities, compared with net losses in the prior year period. The increase in Management and other fees primarily reflected the impact of higher average assets under supervision. The decrease

in Debt investments net revenues primarily reflected lower net interest income due to a reduction in the debt investments balance sheet. The increase in Private banking and lending net revenues primarily reflected the impact of

higher deposit balances, and the increase in Incentive fees was driven by harvesting.

Asset & Wealth Management

$3.75 billion

Management and other fees

$ 2.62 billion

Incentive fees

$ 85 million

Private banking and lending

$ 756 million

Equity investments

$ 116 million

Debt

investments

$ 178 million

3

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

Platform Solutions

Net revenues in Platform Solutions were $391 million for the

third quarter of 2024, 32% lower than the third quarter of 2023 and 42% lower than the second quarter of 2024. The decrease compared with the third quarter of 2023 primarily reflected significantly lower net revenues in Consumer

platforms.

The decrease in Consumer platforms net revenues reflected lower net revenues from the General Motors (GM) credit card program, including a loss related to the planned transitioning of the program to another issuer, partially

offset by higher average credit card balances. Transaction banking and other net revenues were lower, primarily reflecting mark-downs related to the seller financing loans portfolio that was transferred to held for sale, and lower average deposit

balances.

Platform Solutions

$391 million

Consumer platforms

$333 million

Transaction banking

and other

$ 58 million

Provision for Credit Losses

Provision for credit losses was $397 million for the third

quarter of 2024, compared with $7 million for the third quarter of 2023 and $282 million for the second quarter of 2024. Provisions for the third quarter of 2024 reflected net provisions related to the credit card portfolio (primarily driven by net

charge-offs), partially offset by a net benefit related to the wholesale portfolio (driven by recoveries on previously impaired loans). Provisions for the third quarter of 2023 reflected net provisions related to both the credit card portfolio

(primarily driven by net charge-offs) and wholesale loans (driven by impairments, partially offset by a reserve reduction based on increased stability in the macroeconomic environment), offset by a net release related to the GreenSky loan portfolio

(including a reserve reduction of $637 million related to the transfer of the portfolio to held for sale).

Provision for Credit Losses

$397 million

Operating Expenses

Operating expenses were $8.32 billion for the third quarter

of 2024, 8% lower than the third quarter of 2023 and 3% lower than the second quarter of 2024. The firm’s efficiency ratio3 was 64.3% for the first nine months of

2024, compared with 74.4% for the first nine months of 2023.

Operating expenses, compared with the third quarter of 2023, reflected decreases

driven by a write-down of intangibles related to GreenSky in the prior year period (in depreciation and amortization) and significantly lower expenses, including impairments, related to consolidated real estate investments (largely in

depreciation and amortization), partially offset by increases driven by higher transaction based expenses and a write-down of intangibles related to the GM credit card program in the current period (in depreciation and amortization).

Net

provisions for litigation and regulatory proceedings were $41 million for the third quarter of 2024 compared with $15 million for the third quarter of 2023.

Headcount increased 5% compared with the end of the second quarter of 2024, reflecting the

timing of campus hires.

Operating Expenses

$8.32 billion

YTD

Efficiency Ratio

64.3%

4

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

Provision for Taxes

The effective income tax rate for the first nine months of

2024 was 22.6%, up from 21.6% for the first half of 2024, primarily due to a decrease in the impact of permanent tax benefits.

YTD Effective Tax Rate

22.6%

Other Matters

◾ On October 11, 2024, the Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of $3.00 per common share

to be paid on December 30, 2024 to common shareholders of record on December 2, 2024.

◾ During the quarter, the firm returned $1.98 billion of capital to common shareholders, including $1.00 billion of common share

repurchases (2.0 million shares at an average cost of $489.50) and $978 million of common stock dividends.3

◾ Global core liquid assets3 averaged $447 billion for the

third quarter of 2024, compared with an average of $424 billion for the second quarter of 2024.

Declared Quarterly

Dividend Per Common Share

$3.00

Common Share Repurchases

2.0 million shares

for $1.00 billion

Average GCLA

$447 billion

5

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large 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 or statements of current conditions, but instead represent only the firm’s

beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the firm’s control. It is possible that the firm’s actual results, financial condition and liquidity may differ, possibly

materially, from the anticipated results, financial condition and liquidity in these forward-looking statements. For information about some of the risks and important factors that could affect the firm’s future results, financial

condition and liquidity, see “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2023.

Information regarding the firm’s assets under supervision, capital ratios, risk-weighted

assets, supplementary leverage ratio, balance sheet data, 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 fees backlog

and future results also may constitute forward-looking statements. Such statements are subject to the risk that transactions may be modified or may not be completed at all, and related net revenues may not be realized or may be materially less than

expected. Important factors that could have such a result include, for underwriting transactions, a decline or weakness in general economic conditions, an outbreak or worsening of hostilities, including those in Ukraine and the Middle East,

volatility in the securities markets or an adverse development with respect to the issuer of the securities and, for financial advisory transactions, a decline in the securities markets, an inability to obtain adequate financing, an

adverse development with respect to a party to the transaction or a failure to obtain a required regulatory approval. For information about other important factors that could adversely affect the firm’s Investment banking fees, see

“Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for the year ended December 31, 2023.

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 1-800-289-0459 (in the U.S.) or 1-323-794-2095 (outside the U.S.)

passcode number 7042022. 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 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

Third Quarter 2024 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions

THREE MONTHS ENDED

% CHANGE FROM

SEPTEMBER 30,

2024

JUNE 30,

2024

SEPTEMBER 30,

2023

JUNE 30,

2024

SEPTEMBER 30,

2023

GLOBAL BANKING & MARKETS

Advisory

$ 875

$ 688

$ 831

27 %

5 %

Equity underwriting

385

423

308

(9)

25

Debt underwriting

605

622

415

(3)

46

Investment banking fees

1,865

1,733

1,554

8

20

FICC intermediation

2,013

2,330

2,654

(14)

(24)

FICC financing

949

850

730

12

30

FICC

2,962

3,180

3,384

(7)

(12)

Equities intermediation

2,209

1,786

1,713

24

29

Equities financing

1,291

1,383

1,248

(7)

3

Equities

3,500

3,169

2,961

10

18

Other

227

102

110

123

106

Net revenues

8,554

8,184

8,009

5

7

ASSET & WEALTH MANAGEMENT

Management and other fees

2,619

2,536

2,405

3

9

Incentive fees

85

46

24

85

254

Private banking and lending

756

707

687

7

10

Equity investments

116

292

(212)

(60)

N.M.

Debt investments

178

297

326

(40)

(45)

Net revenues

3,754

3,878

3,230

(3)

16

PLATFORM SOLUTIONS

Consumer platforms

333

599

501

(44)

(34)

Transaction banking and other

58

70

77

(17)

(25)

Net revenues

391

669

578

(42)

(32)

Total net revenues

$ 12,699

$ 12,731

$ 11,817

–

7

Geographic Net Revenues (unaudited)3

$ in millions

THREE MONTHS ENDED

SEPTEMBER 30,

2024

JUNE 30,

2024

SEPTEMBER 30,

2023

Americas

$ 8,045

$ 8,125

$ 7,570

EMEA

3,076

2,931

2,811

Asia

1,578

1,675

1,436

Total net revenues

$ 12,699

$ 12,731

$ 11,817

Americas

63%

64%

64%

EMEA

24%

23%

24%

Asia

13%

13%

12%

Total

100%

100%

100%

7

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Net Revenues (unaudited)

$ in millions

NINE MONTHS ENDED

% CHANGE FROM

SEPTEMBER 30,

2024

SEPTEMBER 30,

2023

SEPTEMBER 30,

2023

GLOBAL BANKING & MARKETS

Advisory

$ 2,574

$ 2,294

12 %

Equity underwriting

1,178

901

31

Debt underwriting

1,926

1,369

41

Investment banking fees

5,678

4,564

24

FICC intermediation

7,814

8,023

(3)

FICC financing

2,651

2,003

32

FICC

10,465

10,026

4

Equities intermediation

5,984

4,987

20

Equities financing

3,996

3,955

1

Equities

9,980

8,942

12

Other

341

110

210

Net revenues

26,464

23,642

12

ASSET & WEALTH MANAGEMENT

Management and other fees

7,607

7,041

8

Incentive fees

219

102

115

Private banking and lending

2,145

1,915

12

Equity investments

630

(496)

N.M.

Debt investments

820

931

(12)

Net revenues

11,421

9,493

20

PLATFORM SOLUTIONS

Consumer platforms

1,550

1,568

(1)

Transaction banking and other

208

233

(11)

Net revenues

1,758

1,801

(2)

Total net revenues

$ 39,643

$ 34,936

13

Geographic Net Revenues (unaudited)3

$ in millions

NINE MONTHS ENDED

SEPTEMBER 30,

2024

SEPTEMBER 30,

2023

Americas

$ 25,351

$ 21,565

EMEA

9,477

9,263

Asia

4,815

4,108

Total net revenues

$ 39,643

$ 34,936

Americas

64%

62%

EMEA

24%

26%

Asia

12%

12%

Total

100%

100%

8

Goldman Sachs Reports

Third Quarter 2024 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

SEPTEMBER 30,

2024

JUNE 30,

2024

SEPTEMBER 30,

2023

JUNE 30,

2024

SEPTEMBER 30,

2023

REVENUES

Investment banking

$ 1,864

$ 1,733

$ 1,555

8 %

20 %

Investment management

2,649

2,533

2,409

5

10

Commissions and fees

873

1,051

883

(17)

(1)

Market making

4,005

4,225

4,958

(5)

(19)

Other principal transactions

685

947

465

(28)

47

Total non-interest revenues

10,076

10,489

10,270

(4)

(2)

Interest income

21,448

20,440

18,257

5

17

Interest expense

18,825

18,198

16,710

3

13

Net interest income

2,623

2,242

1,547

17

70

Total net revenues

12,699

12,731

11,817

-

7

Provision for credit losses

397

282

7

41

N.M.

OPERATING EXPENSES

Compensation and benefits

4,122

4,240

4,188

(3)

(2)

Transaction based

1,701

1,654

1,452

3

17

Market development

159

153

136

4

17

Communications and technology

498

500

468

-

6

Depreciation and amortization

621

646

1,512

(4)

(59)

Occupancy

242

244

267

(1)

(9)

Professional fees

400

393

377

2

6

Other expenses

572

703

654

(19)

(13)

Total operating expenses

8,315

8,533

9,054

(3)

(8)

Pre-taxearnings

3,987

3,916

2,756

2

45

Provision for taxes

997

873

698

14

43

Net earnings

2,990

3,043

2,058

(2)

45

Preferred stock dividends

210

152

176

38

19

Net earnings applicable to common shareholders

$ 2,780

$ 2,891

$ 1,882

(4)

48

EARNINGS PER COMMON SHARE

Basic3

$ 8.52

$ 8.73

$ 5.52

(2) %

54 %

Diluted

$ 8.40

$ 8.62

$ 5.47

(3)

54

AVERAGE COMMON SHARES

Basic

324.8

329.8

338.7

(2)

(4)

Diluted

330.8

335.5

343.9

(1)

(4)

SELECTED DATA AT PERIOD-END

Common shareholders’ equity

$ 107,947

$ 106,710

$ 106,074

1

2

Basic shares3

324.2

326.2

338.0

(1)

(4)

Book value per common share

$ 332.96

$ 327.13

$ 313.83

2

6

Headcount

46,400

44,300

45,900

5

1

9

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Consolidated Statements of Earnings (unaudited)

In millions, except per

share amounts

NINE MONTHS ENDED

% CHANGE FROM

SEPTEMBER 30,

2024

SEPTEMBER 30,

2023

SEPTEMBER 30,

2023

REVENUES

Investment banking

$ 5,682

$ 4,565

24 %

Investment management

7,673

7,054

9

Commissions and fees

3,001

2,864

5

Market making

14,222

14,742

(4)

Other principal transactions

2,592

699

271

Total non-interest revenues

33,170

29,924

11

Interest income

61,443

50,031

23

Interest expense

54,970

45,019

22

Net interest income

6,473

5,012

29

Total net revenues

39,643

34,936

13

Provision for credit losses

997

451

121

OPERATING EXPENSES

Compensation and benefits

12,947

11,897

9

Transaction based

4,852

4,242

14

Market development

465

454

2

Communications and technology

1,468

1,416

4

Depreciation and amortization

1,894

4,076

(54)

Occupancy

733

785

(7)

Professional fees

1,177

1,152

2

Other expenses

1,970

1,978

–

Total operating expenses

25,506

26,000

(2)

Pre-tax earnings

13,140

8,485

55

Provision for taxes

2,975

1,977

50

Net earnings

10,165

6,508

56

Preferred stock dividends

563

468

20

Net earnings applicable to common shareholders

$ 9,602

$ 6,040

59

EARNINGS PER COMMON SHARE

Basic3

$ 28.98

$ 17.52

65 %

Diluted

$ 28.64

$ 17.39

65

AVERAGE COMMON SHARES

Basic

330.0

342.5

(4)

Diluted

335.3

347.4

(3)

10

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)3

$ in billions

AS OF

SEPTEMBER 30,

2024

JUNE 30,

2024

ASSETS

Cash and cash equivalents

$ 155

$ 206

Collateralized agreements

417

403

Customer and other receivables

145

142

Trading assets

601

522

Investments

183

161

Loans

192

184

Other assets

35

35

Total assets

$ 1,728

$ 1,653

LIABILITIES AND SHAREHOLDERS’ EQUITY

Deposits

$ 445

$ 433

Collateralized financings

348

325

Customer and other payables

251

243

Trading liabilities

215

200

Unsecured short-term borrowings

75

77

Unsecured long-term borrowings

250

235

Other liabilities

23

21

Total liabilities

1,607

1,534

Shareholders’ equity

121

119

Total liabilities and shareholders’ equity

$ 1,728

$ 1,653

Capital Ratios and Supplementary Leverage Ratio (unaudited)3

$ in billions

AS OF

SEPTEMBER 30,

2024

JUNE 30,

2024

Common equity tier 1 capital

$ 102.2

$ 100.8

STANDARDIZED CAPITAL RULES

Risk-weighted assets

$ 699

$ 677

Common equity tier 1 capital ratio

14.6%

14.9%

ADVANCED CAPITAL RULES

Risk-weighted assets

$ 658

$ 633

Common equity tier 1 capital ratio

15.5%

15.9%

SUPPLEMENTARY LEVERAGE RATIO

Supplementary

leverage ratio

5.5%

5.4%

Average Daily VaR (unaudited)3

$ in millions

THREE MONTHS ENDED

SEPTEMBER 30,

2024

JUNE 30,

2024

RISK CATEGORIES

Interest rates

$ 75

$ 81

Equity prices

39

33

Currency rates

26

30

Commodity prices

20

18

Diversification effect

(68)

(71)

Total

$ 92

$ 91

11

Goldman Sachs Reports

Third Quarter 2024 Earnings Results

The Goldman Sachs Group, Inc. and Subsidiaries

Assets Under Supervision (unaudited)3

$ in billions

AS OF

SEPTEMBER 30,

2024

JUNE 30,

2024

SEPTEMBER 30,

2023

ASSET CLASS

Alternative investments

$ 328

$ 314

$ 267

Equity

780

735

607

Fixed income

1,220

1,147

1,031

Total long-term AUS

2,328

2,196

1,905

Liquidity products

775

738

775

Total AUS

$ 3,103

$ 2,934

$ 2,680

THREE MONTHS ENDED

SEPTEMBER 30,

2024

JUNE 30,

2024

SEPTEMBER 30,

2023

Beginning balance

$ 2,934

$ 2,848

$ 2,714

Net inflows / (outflows):

Alternative investments

9

18

2

Equity

4

6

–

Fixed income

16

7

5

Total long-term AUS net inflows / (outflows)

29

31

7

Liquidity products

37

40

11

Total AUS net inflows / (outflows)

66

71

18

Acquisitions / (dispositions)

–

–

–

Net market appreciation / (depreciation)

103

15

(52)

Ending balance

$ 3,103

$ 2,934

$ 2,680

12

Goldman Sachs Reports

Third Quarter 2024 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

SEPTEMBER 30, 2024

NINE MONTHS ENDED

SEPTEMBER 30, 2024

Total

shareholders’ equity

$ 119,900

$ 118,653

Preferred

stock

(12,878)

(12,183)

Common shareholders’ equity

107,022

106,470

Goodwill

(5,905)

(5,902)

Identifiable intangible

assets

(978)

(1,042)

Tangible common shareholders’ equity

$ 100,139

$ 99,526

2.

Dealogic – January 1, 2024 through September 30, 2024.

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 June 30, 2024: (i) Investment banking fees backlog – see

“Results of Operations – Global Banking & Markets,” (ii) assets under supervision – see “Results of Operations – Asset & Wealth Management – Assets Under Supervision,” (iii) efficiency ratio

– see “Results of Operations – Operating Expenses,” (iv) share repurchase program – see “Capital Management and Regulatory Capital – 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 June 30, 2024: (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.”

Represents a preliminary estimate for the third quarter of 2024 for the firm’s assets under

supervision, capital ratios, risk-weighted assets, supplementary leverage ratio, balance sheet data, global core liquid assets and VaR. These may be revised in the firm’s Quarterly Report on Form 10-Q for the period ended September 30,

2024.

13

Mentions · how they’re counted

CategoryUnderlinedWord counterModel’s count
AI

AI, artificial intelligence, generative AI, machine learning, large language model, LLM

0——
Layoffs

layoffs, RIF, headcount reduction, workforce optimization, restructuring

0——
Recession

recession, downturn, contraction, slowdown

0——
Tariffs

tariff, trade war, trade barriers, trade restrictions, trade policy

0——
Buybacks

share repurchase, buyback program

2——

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: SEC EDGAR · public domain · Highlights by Palanor