Goldman Sachs Reports First Quarter Earnings Per Common Share of $4.29

  Goldman Sachs Reports First Quarter Earnings Per Common Share of $4.29

Business Wire

NEW YORK -- April 16, 2013

The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of
$10.09billion and net earnings of $2.26billion for the first quarter ended
March31,2013. Diluted earnings per common share were $4.29 compared with
$3.92 for the first quarter of 2012 and $5.60 for the fourth quarter of 2012.
Annualized return on average common shareholders’ equity (ROE)^(1) was 12.4%
for the first quarter of 2013.

                                  Highlights

  *Goldman Sachs continued its leadership in investment banking, ranking
    first in worldwide completed mergers and acquisitions for the
    year-to-date.^(2)
  *The firm ranked first in worldwide equity and equity-related offerings,
    common stock offerings and initial public offerings for the
    year-to-date.^(2)
  *Debt underwriting produced record quarterly net revenues of $694million.
  *Book value per common share and tangible book value per common share^(3)
    both ^ increased approximately 3% during the quarter to $148.41 and
    $138.62, respectively.
  *The firm continues to manage its liquidity and capital conservatively. The
    firm’s global core excess liquidity^(4) was $174billion^(5) as of
    March31,2013. In addition, the firm’s Tier1 capital ratio^(6) was
    14.4%^(5) and the firm’s Tier1 common ratio^(7) was 12.7%^(5) as of
    March31,2013, in each case under Basel1 and reflecting the revised
    market risk regulatory capital requirements which became effective on
    January1,2013.

                                _____________

“We are pleased with our performance for the quarter,” said Lloyd C.
Blankfein, Chairman and Chief Executive Officer. “Our strong client franchise
across our businesses drove generally solid results. Still, the potential for
macro-economic instability was felt in the quarter and constrained overall
corporate and investor activity. We continue to be very focused on controlling
our costs and efficiently managing our capital.”

                                 Net Revenues

Investment Banking

Net revenues in Investment Banking were $1.57billion for the first quarter of
2013, 36% higher than the first quarter of 2012 and 12% higher than the fourth
quarter of 2012. Net revenues in Financial Advisory were $484million,
essentially unchanged compared with the first quarter of 2012. Net revenues in
the firm’s Underwriting business were $1.08billion, 63% higher than the first
quarter of 2012. This increase primarily reflected significantly higher net
revenues in debt underwriting, due to leveraged finance and commercial
mortgage-related activity. Net revenues in equity underwriting were also
significantly higher compared with the first quarter of 2012, reflecting an
increase in client activity. The firm’s investment banking transaction backlog
decreased compared with the end of 2012.^(8)

Institutional Client Services

Net revenues in Institutional Client Services were $5.14billion, 10% lower
than the first quarter of 2012 and 18% higher than the fourth quarter of 2012.

Net revenues in Fixed Income, Currency and Commodities Client Execution were
$3.22billion, 7% lower than the first quarter of 2012. Net revenues were
lower across most businesses, primarily reflecting significantly lower net
revenues in interest rate products compared with a strong first quarter of
2012. Net revenues in mortgages were higher compared with the first quarter of
2012. During the quarter, Fixed Income, Currency and Commodities Client
Execution operated in an environment characterized by generally tighter credit
spreads and improved client activity levels compared with the fourth quarter
of 2012.

Net revenues in Equities were $1.92billion, 15% lower than the first quarter
of 2012, primarily reflecting lower net revenues in equities client execution.
This decrease reflected significantly lower net revenues in derivatives
compared with a strong first quarter of 2012, partially offset by higher net
revenues in cash products. Commissions and fees were lower compared with the
first quarter of 2012, reflecting lower market volumes. In addition,
securities services net revenues were lower compared with the first quarter of
2012. During the quarter, Equities operated in an environment generally
characterized by an increase in global equity prices, lower volatility levels
and improved client activity levels compared with the fourth quarter of 2012.

The net loss attributable to the impact of changes in the firm’s own credit
spreads on borrowings for which the fair value option was elected was
$77million ($42million and $35million related to Fixed Income, Currency and
Commodities Client Execution and equities client execution, respectively) for
the first quarter of 2013, compared with a net loss of $224million
($117million and $107million related to Fixed Income, Currency and
Commodities Client Execution and equities client execution, respectively) for
the first quarter of 2012.

Investing & Lending

Net revenues in Investing & Lending were $2.07billion for the first quarter
of 2013. Investing & Lending net revenues were positively impacted by an
increase in equity prices and generally tighter credit spreads. Results for
the first quarter of 2013 included a gain of $24million from the firm’s
investment in the ordinary shares of Industrial and Commercial Bank of China
Limited (ICBC), net gains of $1.10billion from other investments in equities,
primarily in private equities, net gains and net interest income of
$566million from debt securities and loans, and other net revenues of
$375million related to the firm’s consolidated investments.

Investment Management

Net revenues in Investment Management were $1.32billion for the first quarter
of 2013, 12% higher than the first quarter of 2012 and 13% lower than the
fourth quarter of 2012. The increase in net revenues compared with the first
quarter of 2012 was due to higher incentive fees and higher management and
other fees. During the quarter, assets under supervision^(9) increased
$3billion to $968billion, reflecting net market appreciation of $12billion,
primarily in equity assets. Net outflows in assets under supervision were
$9billion, as outflows in money market assets and, to a lesser extent,
alternative investment assets, were partially offset by inflows in fixed
income and equity assets.

                                   Expenses

Operating expenses were $6.72billion, essentially unchanged compared with the
first quarter of 2012 and 36% higher than the fourth quarter of 2012.

Compensation and Benefits

The accrual for compensation and benefits expenses (including salaries,
estimated year-end discretionary compensation, amortization of equity awards
and other items such as benefits) was $4.34billion for the first quarter of
2013, essentially unchanged compared with the first quarter of 2012. The ratio
of compensation and benefits to net revenues for the first quarter of 2013 was
43.0%, compared with 44.0% for the first quarter of 2012. Total staff^(10)
decreased 1% compared with the end of 2012.

Non-Compensation Expenses

Non-compensation expenses were $2.38billion, essentially unchanged compared
with the first quarter of 2012 and 19% lower than the fourth quarter of 2012.
Non-compensation expenses for the first quarter of 2013 included lower
depreciation and amortization expenses, primarily reflecting lower impairment
charges related to consolidated investments, compared with the first quarter
of 2012. This decrease was largely offset by higher other expenses, primarily
reflecting increased net provisions for litigation and regulatory proceedings
and higher expenses related to consolidated investments. The first quarter of
2013 included net provisions for litigation and regulatory proceedings of
$110million.

Provision for Taxes

The effective income tax rate for the first quarter of 2013 was 33.0%,
essentially unchanged from the full year tax rate of 33.3% for 2012.

                                   Capital

As of March31,2013, total capital was $244.24billion, consisting of $77.23
billion in total shareholders’ equity (common shareholders’ equity of
$71.03billion and preferred stock of $6.20billion) and $167.01billion in
unsecured long-term borrowings. Book value per common share was $148.41 and
tangible book value per common share^(3) was $138.62, both approximately 3%
higher compared with the end of 2012. Book value and tangible book value per
common share are based on common shares outstanding, including restricted
stock units granted to employees with no future service requirements, of
478.6million as of March31,2013.

On March25,2013, the firm amended its warrant agreement with Berkshire
Hathaway to require net share settlement and to specify the exercise date as
October1,2013. Under the amended agreement, the firm will deliver to
Berkshire Hathaway the number of shares of common stock equal in value to the
difference between the average closing price of the firm’s common stock over
the 10 trading days preceding October1,2013 and the exercise price of $115
multiplied by the number of shares of common stock (43.5million) covered by
the warrant.

During the quarter, the firm repurchased 10.1million shares of its common
stock at an average cost per share of $150.53, for a total cost of
$1.52billion. On April15,2013, the Board of Directors of The Goldman Sachs
Group, Inc. (Group Inc.) authorized the repurchase of an additional
75.0million shares of common stock pursuant to the firm’s existing share
repurchase program. The remaining share authorization under the firm’s
existing repurchase program, including the newly authorized amount, is
86.4million shares.^(11)

Under the regulatory capital requirements currently applicable to bank holding
companies, the firm’s Tier1 capital ratio^(6) was 14.4%^(5) and the firm’s
Tier1 common ratio^(7) was 12.7%^(5) as of March31,2013, in each case
under Basel1 and reflecting the revised market risk regulatory capital
requirements which became effective on January1,2013. As of
December31,2012, the firm’s Tier1 capital ratio under Basel1 was 16.7% and
the firm’s Tier1 common ratio under Basel1 was 14.5% (prior to the
implementation of the revised market risk regulatory capital requirements).

                  Other Balance Sheet and Liquidity Metrics

  *The firm’s global core excess liquidity (GCE)^(4) was $174billion^(5)
    as of March31,2013 and averaged $181billion^(5) for the first quarter
    of 2013, compared with an average of $173billion for the fourth quarter
    of 2012.
  *Total assets ^ were $959billion^(5) as of March31,2013, compared with
    $939billion as of December31,2012.
  *Level3 assets ^ were $46billion^(5) as of March31,2013, compared with
    $47billion as of December31,2012, and represented 4.8% of total assets.

                                  Dividends

Group Inc. declared a dividend of $0.50 per common share to be paid on
June27,2013 to common shareholders of record on May30,2013. The firm also
declared dividends of $229.17, $387.50, $244.44, $244.44 and $371.88 per share
of SeriesA Preferred Stock, SeriesB Preferred Stock, SeriesC Preferred
Stock, SeriesD Preferred Stock and SeriesI Preferred Stock, respectively
(represented by depositary shares, each representing a 1/1,000th interest in a
share of preferred stock), to be paid on May10,2013 to preferred
shareholders of record on April25,2013. In addition, the firm declared
dividends of $1,044.44 per each share of SeriesE Preferred Stock and SeriesF
Preferred Stock, to be paid on June3,2013 to preferred shareholders of
record on May19,2013.

                                ______________

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 high-net-worth
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 a discussion of some of the
risks and important factors that could affect the firm’s future results and
financial condition, see “Risk Factors” in PartI, Item1A of the firm’s
Annual Report on Form10-K for the year ended December31,2012.

Certain of the information regarding the firm’s capital ratios, risk-weighted
assets, total assets, level3 assets and global core excess liquidity consist
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 the terms of these transactions may be modified or that they may not be
completed at all; therefore, the net revenues, if any, that the firm actually
earns from these transactions may differ, possibly materially, from those
currently expected. Important factors that could result in a modification of
the terms of a transaction or a transaction not being completed include, in
the case of underwriting transactions, a decline or continued weakness in
general economic conditions, outbreak of hostilities, volatility in the
securities markets generally or an adverse development with respect to the
issuer of the securities and, in the case of 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 a discussion of
other important factors that could adversely affect the firm’s investment
banking transactions, see “Risk Factors” in PartI, Item1A of the firm’s
Annual Report on Form10-K for the year ended December31,2012.

Conference Call

A conference call to discuss the firm’s results, outlook and related matters
will be held at 9:30am(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 (U.S. domestic) or 1-706-679-5627 (international). 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 web site,
www.gs.com/shareholders. 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 web site or by dialing 1-855-859-2056 (U.S. domestic) or 1-404-537-3406
(international) passcode number 11688351, beginning approximately two 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.

                THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
                             SEGMENT NET REVENUES
                                 (UNAUDITED)
                                $ in millions

                     Three Months Ended                            % Change From
                          March      December     March        December    March
                          31,           31,             31,          31,          31,
                          2013             2012            2012            2012         2012
Investment
Banking
Financial                 $ 484            $ 508           $ 489           (5    )  %   (1    )  %
Advisory
                                                                                                 
Equity                      390              304             255           28           53
underwriting
Debt                       694            593           410          17          69    
underwriting
Total                       1,084            897             665           21           63
Underwriting
                                                                                 
Total
Investment                 1,568          1,405         1,154        12          36    
Banking
                                                                                                 
Institutional
Client Services
Fixed Income,
Currency and
                            3,217            2,038           3,458         58           (7    )
Commodities
Client
Execution
                                                                                                 
Equities client             809              764             1,050         6            (23   )
execution^(12)
Commissions and             793              722             834           10           (5    )
fees
Securities                 320            818           367          (61   )      (13   )
services
Total Equities              1,922            2,304           2,251         (17   )      (15   )
                                                                                 
Total
Institutional              5,139          4,342         5,709        18          (10   )
Client Services
                                                                                                 
Investing &
Lending
ICBC                        24               334             169           (93   )      (86   )
Equity
securities                  1,103            789             891           40           24
(excluding
ICBC)
Debt securities             566              485             585           17           (3    )
and loans
Other                       375              365             266           3            41
                                                                                 
Total Investing            2,068          1,973         1,911        5           8     
& Lending
                                                                                                 
Investment
Management
Management and              1,060            1,067           1,003         (1    )      6
other fees
Incentive fees              140              344             58            (59   )      141
Transaction                 115              105             114           10           1
revenues
                                                                                 
Total
Investment                 1,315          1,516         1,175        (13   )      12    
Management
                                                                                 
Total net                 $ 10,090        $ 9,236        $ 9,949        9           1     
revenues
                                                                                                 

                THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF EARNINGS
                                 (UNAUDITED)
            In millions, except per share amounts and total staff

                  Three Months Ended                              % Change From
                   March      December         March         December    March
                   31,           31,              31,           31,          31,
                   2013             2012             2012             2012         2012
Revenues
Investment         $ 1,568          $ 1,407          $ 1,160          11       %   35       %
banking
Investment           1,250            1,450            1,105          (14   )      13
management
Commissions and      829              754              860            10           (4    )
fees
Market making        3,437            2,696    ^(13)   3,905          27           (12   )
Other principal     2,081          1,956          1,938         6           7     
transactions
Total
non-interest         9,165            8,263            8,968          11           2
revenues
                                                                                            
Interest income      2,608            2,864            2,833          (9    )      (8    )
Interest expense    1,683          1,891          1,852         (11   )      (9    )
Net interest        925            973            981           (5    )      (6    )
income
                                                                                            
Net revenues,
including net       10,090         9,236          9,949         9           1     
interest income
                                                                                            
Operating
expenses
Compensation and     4,339            1,976            4,378          120          (1    )
benefits
                                                                                            
Brokerage,
clearing,
exchange and         561              550              567            2            (1    )
distribution
fees
Market               141              140              117            1            21
development
Communications       188              194              196            (3    )      (4    )
and technology
Depreciation and     302              500              433            (40   )      (30   )
amortization
Occupancy            218              232              212            (6    )      3
Professional         246              215              234            14           5
fees
Insurance            127              167              157            (24   )      (19   )
reserves
Other expenses      595            949            474           (37   )      26    
Total
non-compensation     2,378            2,947            2,390          (19   )      (1    )
expenses
                                                                            
Total operating     6,717          4,923          6,768         36          (1    )
expenses
                                                                                            
Pre-tax earnings     3,373            4,313            3,181          (22   )      6
Provision for       1,113          1,421          1,072         (22   )      4     
taxes
Net earnings         2,260            2,892            2,109          (22   )      7
                                                                                            
Preferred stock     72             59             35            22          106   
dividends
Net earnings
applicable to      $ 2,188         $ 2,833         $ 2,074         (23   )      5     
common
shareholders
                                                                                            
                                                                                            
Earnings per
common share
Basic^(14)        $ 4.53           $ 5.87           $ 4.05           (23   )  %   12       %
Diluted              4.29             5.60             3.92           (23   )      9
                                                                                            
Average common
shares
outstanding
Basic                482.1            481.5            510.8          -            (6    )
Diluted              509.8            505.6            529.2          1            (4    )
                                                                                            
Selected Data
Total staff at       32,000           32,400           32,400         (1    )      (1    )
period-end^(10)
                                                                                            

                THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
                           SELECTED FINANCIAL DATA
                                 (UNAUDITED)

Average Daily VaR ^(15)
$ in millions
                                                                    
                   Three Months Ended
                   March       December       March
                   31,         31,            31,
                   2013           2012           2012
Risk Categories
Interest rates     $  62          $  67          $  90
Equity prices         30             31             29
Currency rates        14             11             15
Commodity             21             20             26
prices
Diversification      (51 )         (53 )         (65 )
effect ^ (15)
Total              $  76         $  76         $  95  
                                                                                      
Assets Under Supervision ^ (9)
$ in billions
                                                                                      
                   As of                                        % Change From
                   March       December       March       December     March
                   31,         31,            31,         31,          31,
                   2013           2012           2012           2012         2012
Asset Class
Alternative        $  130         $  133         $  139         (2   )   %   (6   )   %
investments
Equity                149            133            136         12           10
Fixed income         378          370          347        2           9    
Total non-money       657            636            622         3            6
market assets
                                                                                      
Money markets        203          218          202        (7   )       -    
Total assets
under management      860            854            824         1            4
(AUM)
                                                                                      
Other client         108          111          76         (3   )       42   
assets
Total assets
under              $  968        $  965        $  900        -           8    
supervision
(AUS)
                                                                                      
                   Three Months Ended
                   March       December       March
                   31,         31,            31,
                   2013           2012           2012
                                                                                      
Balance,
beginning of       $  965         $  951         $  895
period
                                                                                      
Net inflows /
(outflows)
Alternative           (3  )          (3  )          (4  )
investments
Equity                4              (5  )          (5  )
Fixed income         10           (10 )         1   
Total non-money
market net            11             (18 )          (8  )
inflows /
(outflows)
                                                                                      
Money markets        (15 )         11           (18 )
Total AUM net
inflows /             (4  )          (7  ) ^(16)    (26 )
(outflows)
                                                                                      
Other client         (5  )         15           5   
assets
Total AUS net
inflows /             (9  )          8              (21 )
(outflows)
                                                                                      
Net market
appreciation /
(depreciation)
AUM                   10             5              22
Other client         2            1            4   
assets
Total AUS net
market                12             6              26
appreciation /
(depreciation)
                                               
Balance, end of    $  968        $  965        $  900 
period
                                                                                      

                                  Footnotes

     
       Annualized ROE is computed by dividing annualized net earnings
(1)   applicable to common shareholders by average monthly common
       shareholders’ equity. The table below presents the firm’s average
       common shareholders’ equity:
       

                                                                                     Average
                                                                                                                                                            for the
                                                                                                                                                            Three
                                                                                                                                                            Months
          Unaudited, in                                                                   Ended
          millions
                                                                                                                                                            March 31,
                                                                                                                                                            2013
          Total
          shareholders'                                                                                                                                     $ 76,702
          equity
          Preferred                                                                        (6,200 )
          stock
          Common
          shareholders’                                                                   $ 70,502 
          equity
                                                                                                                                                                     

(2)  Thomson Reuters – January1,2013 through March31,2013.
       
       Tangible common shareholders' equity equals total shareholders' equity
       less preferred stock, goodwill and identifiable intangible assets.
       Tangible book value per common share is computed by dividing tangible
       common shareholders’ equity by the number of common shares outstanding,
       including restricted stock units granted to employees with no future
       service requirements. Management believes that tangible common
(3)   shareholders’ equity and tangible book value per common share are
       meaningful because they are measures that the firm and investors use to
       assess capital adequacy. Tangible common shareholders’ equity and
       tangible book value per common share are non-GAAP measures and may not
       be comparable to similar non-GAAP measures used by other companies. The
       table below presents the reconciliation of total shareholders' equity
       to tangible common shareholders' equity:
       

                                                                         As of
          Unaudited, in                                                                                                             March
          millions                                                            31,
                                                                                                                                    2013
          Total
          shareholders'                                                                                                             $ 77,228
          equity
          Preferred                                                            (6,200 )
          stock
          Common
          shareholders’                                                                                                               71,028
          equity
          Goodwill and
          identifiable                                                         (4,683 )
          intangible
          assets
          Tangible
          common                                                              $ 66,345 
          shareholders’
          equity
                                                                                                                                      

       The firm’s global core excess represents a pool of excess liquidity
       consisting of unencumbered, highly liquid securities and cash. For a
(4)   further discussion of the firm's global core excess liquidity pool, see
       “Liquidity Risk Management” in PartII, Item7 “Management's Discussion
       and Analysis of Financial Condition and Results of Operations” in the
       firm's Annual Report on Form10-K for the year ended December31,2012.
       
(5)    Represents a preliminary estimate and may be revised in the firm’s
       Quarterly Report on Form10-Q for the period ended March31,2013.
       
       The Tier1 capital ratio equals Tier1 capital divided by risk-weighted
       assets. The firm’s risk-weighted assets under the Board of Governors of
       the Federal Reserve System’s risk-based capital requirements were
       approximately $480billion as of March31,2013, under Basel1 and
(6)    reflecting the revised market risk regulatory capital requirements
       which became effective on January1,2013. For a further discussion of
       the firm's capital ratios, see “Equity Capital” in PartII, Item7
       “Management's Discussion and Analysis of Financial Condition and
       Results of Operations” in the firm's Annual Report on Form10-K for the
       year ended December31,2012.
       
       The Tier1 common ratio equals Tier1 common capital divided by
       risk-weighted assets. As of March31,2013, Tier1 common capital was
       $61.14billion, consisting of Tier1 capital of $69.37billion less
       preferred stock, junior subordinated debt issued to trusts and other
       adjustments of $8.23billion. Management believes that the Tier1
       common ratio is meaningful because it is one of the measures that the
(7)    firm and investors use to assess capital adequacy. The Tier1 common
       ratio is a non-GAAP measure and may not be comparable to similar
       non-GAAP measures used by other companies. For a further discussion of
       the firm's capital ratios, see “Equity Capital” in PartII, Item7
       “Management's Discussion and Analysis of Financial Condition and
       Results of Operations” in the firm's Annual Report on Form10-K for the
       year ended December31,2012.
       
       The firm’s investment banking transaction backlog represents an
(8)    estimate of the firm’s future net revenues from investment banking
       transactions where management believes that future revenue realization
       is more likely than not.
       
       Assets under supervision include assets under management and other
       client assets. Assets under management include client assets where the
       firm earns a fee for managing assets on a discretionary basis. Other
(9)    client assets include client assets invested with third party managers,
       private bank deposits and advisory relationships where the firm earns a
       fee for advisory and other services, but does not have investment
       discretion.
       
(10)   Includes employees, consultants and temporary staff.
       
       The remaining authorization represents the shares that may be
       repurchased under the repurchase program approved by the Board of
       Directors. As disclosed in Note19. Shareholders’ Equity in PartII,
(11)   Item8 “Financial Statements and Supplementary Data” in the firm's
       Annual Report on Form10-K for the year ended December31,2012, share
       repurchases require approval by the Board of Governors of the Federal
       Reserve System.
       
       Includes net revenues related to reinsurance of $233million,
(12)   $317million and $211million for the three months ended
       March31,2013, December31,2012 and March31,2012, respectively.
       
(13)   Includes a gain of approximately $500million on the sale of the firm’s
       hedge fund administration business.
       
       Unvested share-based payment awards that have non-forfeitable rights to
       dividends or dividend equivalents are treated as a separate class of
(14)   securities in calculating earnings per common share. The impact of
       applying this methodology was a reduction in basic earnings per common
       share of $0.01 for each of the three months ended March31,2013,
       December31,2012 and March31,2012.
       
       VaR is the potential loss in value of the firm’s inventory positions
       due to adverse market movements over a one-day time horizon with a 95%
       confidence level. Diversification effect equals the difference between
(15)   total VaR and the sum of the VaRs for the four risk categories. For a
       further discussion of VaR and the diversification effect, see “Market
       Risk Management” in PartII, Item7 “Management's Discussion and
       Analysis of Financial Condition and Results of Operations” in the
       firm's Annual Report on Form10-K for the year ended December31,2012.
       
       Includes $5billion of fixed income and equity asset outflows related
(16)   to the firm’s liquidation of Goldman Sachs Asset Management Korea Co.,
       Ltd.
       

Contact:

The Goldman Sachs Group, Inc.
Media Relations:
Jake Siewert, 212-902-5400

Investor Relations:
Dane E. Holmes, 212-902-0300
 
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