Goldman Sachs Reports Third Quarter Earnings Per Common Share of $2.88 and Increases the Quarterly Dividend to $0.55 Per Common

  Goldman Sachs Reports Third Quarter Earnings Per Common Share of $2.88 and
  Increases the Quarterly Dividend to $0.55 Per Common Share

Business Wire

NEW YORK -- October 17, 2013

The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of
$6.72billion and net earnings of $1.52billion for the third quarter ended
September30,2013. Diluted earnings per common share were $2.88 compared with
$2.85 for the third quarter of 2012 and $3.70 for the second quarter of 2013.
Annualized return on average common shareholders’ equity (ROE)^(1) was 8.1%
for the third quarter of 2013 and 10.4% for the first nine months of 2013.

                                  Highlights

  *Goldman Sachs continued its leadership in investment banking, ranking
    first in worldwide announced and 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)
  *Assets under supervision^(3) increased to a record $991billion, with net
    inflows in long-term assets under supervision^(3) of $16billion during
    the quarter.
  *The firm continues to manage its liquidity and capital conservatively. The
    firm’s global core excess liquidity^(4) was $175 billion^(5) as of
    September30,2013. In addition, the firm’s Tier1 capital ratio^(6) was
    16.3%^(5) and the firm’s Tier1 common ratio^(6) was 14.2%^(5) as of
    September30,2013, in each case under Basel1 and reflecting the revised
    market risk regulatory capital requirements which became effective on
    January1,2013.

                                _____________

“The third quarter’s results reflected a period of slow client activity,” said
Lloyd C. Blankfein, Chairman and Chief Executive Officer. “Still, we saw
various signs that our clients are prepared to act on significant transactions
and we believe that the firm is well positioned to help our clients accomplish
their objectives. As longer term U.S. budget issues are resolved, we could see
an improvement in corporate and investor sentiment that would help lay the
basis for a more sustained recovery.”

                                 Net Revenues

Investment Banking

Net revenues in Investment Banking were $1.17billion, essentially unchanged
compared with the third quarter of 2012 and 25% lower than the second quarter
of 2013. Net revenues in Financial Advisory were $423million, 17% lower than
the third quarter of 2012, reflecting a decrease in industry-wide completed
mergers and acquisitions. Net revenues in the firm’s Underwriting business
were $743million, 13% higher than the third quarter of 2012. This increase
reflected significantly higher net revenues in equity underwriting, primarily
due to higher net revenues from initial public offerings. Net revenues in debt
underwriting were essentially unchanged compared with the third quarter of
2012. The firm’s investment banking transaction backlog increased
significantly compared with the end of the second quarter of 2013.^(7)

Institutional Client Services

Net revenues in Institutional Client Services were $2.86billion, 32% lower
than the third quarter of 2012 and 34% lower than the second quarter of 2013.

Net revenues in Fixed Income, Currency and Commodities Client Execution were
$1.25billion, 44% lower than the third quarter of 2012, reflecting
significantly lower net revenues in mortgages and interest rate products, as
well as in currencies. In addition, net revenues in credit products were
lower, while net revenues in commodities were higher compared with the third
quarter of 2012. During the third quarter of 2013, Fixed Income, Currency and
Commodities Client Execution operated in a challenging environment, which was
characterized by economic uncertainty, difficult market-making conditions in
certain businesses and lower levels of activity.

Net revenues in Equities were $1.62billion, 18% lower than the third quarter
of 2012, primarily due to the sale of the firm’s Americas reinsurance
business^(8). Net revenues in equities client execution (excluding net
revenues from the firm’s Americas reinsurance business) and commissions and
fees were both essentially unchanged compared with the third quarter of 2012.
In addition, securities services net revenues were lower compared with the
third quarter of 2012, primarily due to the sale of the firm’s hedge fund
administration business in 2012. Although global equity prices increased
during the quarter, Equities operated in an environment characterized by lower
levels of activity and volatility.

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
$72million ($47million and $25million related to Fixed Income, Currency and
Commodities Client Execution and equities client execution, respectively) for
the third quarter of 2013, compared with a net loss of $370million
($225million and $145million related to Fixed Income, Currency and
Commodities Client Execution and equities client execution, respectively) for
the third quarter of 2012.

Investing & Lending

Net revenues in Investing & Lending were $1.48billion for the third quarter
of 2013. Results for the third quarter of 2013 included net gains of
$938million from investments in equities, primarily in private equities,
driven by strong corporate performance and company-specific events. In
addition, Investing & Lending net revenues included net interest income and
net gains of $300million from debt securities and loans, and other net
revenues of $237million related to the firm’s consolidated investments.

Investment Management

Net revenues in Investment Management were $1.22billion, 2% higher than the
third quarter of 2012 and 9% lower than the second quarter of 2013. The
increase in net revenues compared with the third quarter of 2012 reflected
higher management and other fees, primarily due to higher average assets under
supervision and favorable changes in the mix of assets under supervision,
partially offset by lower transaction revenues. During the quarter, total
assets under supervision^(3) increased $36billion to $991billion. Long-term
assets under supervision^(3) increased $35billion, reflecting market
appreciation of $19billion, primarily in equity assets, and net inflows of
$16billion, primarily in fixed income assets. In addition, liquidity
products^(3) increased $1billion.

                                   Expenses

Operating expenses were $4.56billion, 25% lower than the third quarter of
2012 and 24% lower than the second quarter of 2013.

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 $2.38billion for the third quarter of
2013, 35% lower than the third quarter of 2012. The ratio of compensation and
benefits to net revenues for the first nine months of 2013 was 41.0%, compared
with 43.0% for the first six months of 2013 and 44.0% for the first nine
months of 2012. Total staff^(9) increased 3% compared with the end of the
second quarter of 2013.

Non-Compensation Expenses

Non-compensation expenses were $2.17billion, 9% lower than the third quarter
of 2012 and 4% lower than the second quarter of 2013. The decrease compared
with the third quarter of 2012 included a decline in insurance reserves,
reflecting the sale of the firm’s Americas reinsurance business, and lower
depreciation and amortization expense, primarily reflecting lower expenses
related to consolidated investments. These decreases were partially offset by
increased net provisions for litigation and regulatory proceedings and higher
brokerage, clearing, exchange and distribution fees. The third quarter of 2013
included net provisions for litigation and regulatory proceedings of
$142million.

Provision for Taxes

The effective income tax rate for the first nine months of 2013 was 30.3%,
essentially unchanged compared with 30.4% for the first half of 2013.

                                   Capital

As of September30,2013, total capital was $245.70billion, consisting of
$77.62billion in total shareholders’ equity (common shareholders’ equity of
$70.42billion and preferred stock of $7.20billion) and $168.08billion in
unsecured long-term borrowings. Book value per common share was $153.58 and
tangible book value per common share^(10) was $143.86, both approximately 2%
higher compared with the end of the second quarter of 2013. 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 458.5million as of September30,2013.

During the quarter, the firm repurchased 10.2million shares of its common
stock at an average cost per share of $161.59, for a total cost of
$1.65billion. The remaining share authorization under the firm’s existing
repurchase program is 65.7million shares.^(11)

On October1,2013, Berkshire Hathaway Inc. and certain of its subsidiaries
(collectively, Berkshire Hathaway) exercised in full their warrant to purchase
shares of the firm’s common stock. The warrant agreement required net share
settlement and the firm delivered 13.1million shares of common stock to
Berkshire Hathaway on October4,2013. The impact to both the firm’s book
value per common share and tangible book value per common share was a
reduction of approximately 3% in October.

Under the regulatory capital requirements currently applicable to bank holding
companies, the firm’s Tier1 capital ratio^(6) was 16.3%^(5) and the firm’s
Tier1 common ratio^(6) was 14.2%^(5) as of September30,2013, up from
15.6% and 13.5%, respectively, as of June30,2013 (in each case under Basel1
and reflecting the revised market risk regulatory capital requirements which
became effective on January1,2013).

                  Other Balance Sheet and Liquidity Metrics

  *The firm’s global core excess liquidity (GCE)^(4) was $175 billion^(5)
    as of September30,2013 and averaged $187billion^(5) for the third
    quarter of 2013, compared with an average of $180billion for the second
    quarter of 2013.
  *Total assets ^ were $923billion^(5) as of September30,2013, compared
    with $938billion as of June30,2013.
  *Level 3 assets ^ were $42billion^(5) as of September30,2013, compared
    with $43billion as of June30,2013, and represented 4.5% of total
    assets.

                                  Dividends

The Board of Directors of The Goldman Sachs Group, Inc. increased the firm’s
quarterly dividend to $0.55 per common share from $0.50 per common share. The
dividend will be paid on December30,2013 to common shareholders of record on
December2,2013. The firm also declared dividends of $239.58, $387.50,
$255.56, $255.56, $371.88 and $343.75 per share of SeriesA Preferred Stock,
SeriesB Preferred Stock, SeriesC Preferred Stock, SeriesD Preferred Stock,
SeriesI Preferred Stock and SeriesJ Preferred Stock, respectively
(represented by depositary shares, each representing a 1/1,000th interest in a
share of preferred stock), to be paid on November12,2013 to preferred
shareholders of record on October28,2013. In addition, the firm declared
dividends of $1,000.00 per each share of SeriesE Preferred Stock and SeriesF
Preferred Stock, to be paid on December2,2013 to preferred shareholders of
record on November17,2013.

                                ______________

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 32039597, 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
                September    June    September     June    September
                30,             30,        30,           30,       30,
                2013             2013             2012           2013           2012
Investment
Banking
Financial       $ 423            $ 486            $  509         (13    )   %   (17    )   %
Advisory
                                                                                           
Equity            276              371               189         (26    )       46
underwriting
Debt             467            695             466        (33    )       -      
underwriting
Total             743              1,066             655         (30    )       13
Underwriting
                                                                          
Total
Investment       1,166          1,552           1,164      (25    )       -      
Banking
                                                                                           
Institutional
Client
Services
Fixed Income,
Currency and
Commodities       1,247            2,463             2,224       (49    )       (44    )
Client
Execution
                                                                                           
Equities
client            549              638               847         (14    )       (35    )
execution
^(8)
Commissions       727              836               721         (13    )       1
and fees
Securities       340            376             392        (10    )       (13    )
services
Total             1,616            1,850             1,960       (13    )       (18    )
Equities
                                                                          
Total
Institutional    2,863          4,313           4,184      (34    )       (32    )
Client
Services
                                                                                           
Investing &
Lending
Equity            938              462               923         103            2
securities
Debt
securities        300              658               558         (54    )       (46    )
and loans
Other             237              295               323         (20    )       (27    )
                                                                          
Total
Investing &      1,475          1,415           1,804      4             (18    )
Lending
                                                                                           
Investment
Management
Management
and other         1,085            1,098             1,016       (1     )       7
fees
Incentive         71               118               82          (40    )       (13    )
fees
Transaction       62               116               101         (47    )       (39    )
revenues
                                                                          
Total
Investment       1,218          1,332           1,199      (9     )       2      
Management
                                                                          
Total net       $ 6,722         $ 8,612         $  8,351      (22    )       (20    )
revenues
                                                                                           
                                                                                           
                Nine Months Ended                 % Change
                                                  From
                September       September       September
                30,             30,             30,
                2013             2012             2012
                                                                                           
Investment
Banking
Financial       $ 1,393          $ 1,467             (5    ) %
Advisory
                                                                                           
Equity            1,037            683               52
underwriting
Debt             1,856          1,371           35    
underwriting
Total             2,893            2,054             41
Underwriting
                                              
Total
Investment       4,286          3,521           22    
Banking
                                                                                           
Institutional
Client
Services
Fixed Income,
Currency and
Commodities       6,927            7,876             (12   )
Client
Execution
                                                                                           
Equities
client            1,996            2,407             (17   )
execution
^(8)
Commissions       2,356            2,331             1
and fees
Securities       1,036          1,168           (11   )
services
Total             5,388            5,906             (9    )
Equities
                                              
Total
Institutional    12,315         13,782          (11   )
Client
Services
                                                                                           
Investing &
Lending
Equity            2,527            1,677             51
securities
Debt
securities        1,524            1,365             12
and loans
Other             907              876               4
                                              
Total
Investing &      4,958          3,918           27    
Lending
                                                                                           
Investment
Management
Management
and other         3,243            3,038             7
fees
Incentive         329              357               (8    )
fees
Transaction       293              311               (6    )
revenues
                                              
Total
Investment       3,865          3,706           4     
Management
                                              
Total net       $ 25,424        $ 24,927          2     
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
                   September     June     September        June    September
                   30,              30,         30,              30,      30,
                   2013             2013             2012             2013          2012
Revenues
Investment         $ 1,166          $ 1,552          $ 1,168          (25    )  %   -         %
banking
Investment           1,153            1,267            1,147          (9     )      1
management
Commissions and      765              873              748            (12    )      2
fees
Market making        1,364            2,692            2,650          (49    )      (49    )
Other principal     1,434          1,402          1,802         2            (20    )
transactions
Total
non-interest         5,882            7,786            7,515          (24    )      (22    )
revenues
                                                                                              
Interest income      2,398            2,663            2,629          (10    )      (9     )
Interest expense    1,558          1,837          1,793         (15    )      (13    )
Net interest        840            826            836           2            -      
income
                                                                                              
Net revenues,
including net       6,722          8,612          8,351         (22    )      (20    )
interest income
                                                                                              
Operating
expenses
Compensation and     2,382            3,703            3,675          (36    )      (35    )
benefits
                                                                                              
Brokerage,
clearing,
exchange and         573              613              547            (7     )      5
distribution
fees
Market               117              140              123            (16    )      (5     )
development
Communications       202              182              190            11            6
and technology
Depreciation and     280              266              396            5             (29    )
amortization
Occupancy            205              210              217            (2     )      (6     )
Professional         211              218              205            (3     )      3
fees
Insurance            -                49               153            (100   )      (100   )
reserves
Other expenses      585            586            547           -            7      
Total
non-compensation     2,173            2,264            2,378          (4     )      (9     )
expenses
                                                                             
Total operating     4,555          5,967          6,053         (24    )      (25    )
expenses
                                                                                              
Pre-tax earnings     2,167            2,645            2,298          (18    )      (6     )
Provision for       650            714            786           (9     )      (17    )
taxes
Net earnings         1,517            1,931            1,512          (21    )      -
                                                                                              
Preferred stock     88             70             54            26           63     
dividends
Net earnings
applicable to      $ 1,429         $ 1,861         $ 1,458         (23    )      (2     )
common
shareholders
                                                                                              
                                                                                              
Earnings per
common share
Basic ^(12)        $ 3.07           $ 3.92           $ 2.95           (22    )  %   4         %
Diluted              2.88             3.70             2.85           (22    )      1
                                                                                              
Average common
shares
outstanding
Basic                463.4            473.2            491.2          (2     )      (6     )
Diluted              496.4            503.5            510.9          (1     )      (3     )
                                                                                              
Selected Data
Total staff at       32,600           31,700           32,600         3             -
period-end ^ (9)
                                                                                              

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

                         Nine Months Ended                    % Change
                                                                  From
                          September       September          September
                          30,                30,                30,
                          2013                2012                2012
Revenues
Investment banking        $  4,286            $  3,534            21         %
Investment management        3,670               3,518            4
Commissions and fees         2,467               2,407            2
Market making                7,493               8,652            (13    )
Other principal             4,917             3,909           26     
transactions
Total non-interest           22,833              22,020           4
revenues
                                                                             
Interest income              7,669               8,517            (10    )
Interest expense            5,078             5,610           (9     )
Net interest income         2,591             2,907           (11    )
                                                                             
Net revenues, including     25,424            24,927          2      
net interest income
                                                                             
Operating expenses
Compensation and             10,424              10,968           (5     )
benefits
                                                                             
Brokerage, clearing,
exchange and                 1,747               1,658            5
distribution fees
Market development           398                 369              8
Communications and           572                 588              (3     )
technology
Depreciation and             848                 1,238            (32    )
amortization
Occupancy                    633                 643              (2     )
Professional fees            675                 652              4
Insurance reserves           176                 431              (59    )
Other expenses              1,766             1,486           19     
Total non-compensation       6,815               7,065            (4     )
expenses
                                                              
Total operating             17,239            18,033          (4     )
expenses
                                                                             
Pre-tax earnings             8,185               6,894            19
Provision for taxes         2,477             2,311           7      
Net earnings                 5,708               4,583            25
                                                                             
Preferred stock             230               124             85     
dividends
Net earnings applicable   $  5,478           $  4,459           23     
to common shareholders
                                                                             
                                                                             
Earnings per common
share
Basic ^(12)               $  11.55            $  8.85             31         %
Diluted                      10.89               8.57             27
                                                                             
Average common shares
outstanding
Basic                        472.7               501.1            (6     )
Diluted                      503.2               520.1            (3     )
                                                                             

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

Average Daily VaR ^(13)
$ in millions
                                                                       
                  Three Months Ended
                  September       June       September
                  30,             30,        30,
                  2013            2013            2012
Risk Categories
Interest rates    $  68           $  59           $  73
Equity prices        30              30              21
Currency rates       17              23              12
Commodity            17              19              22
prices
Diversification     (48  )         (50  )         (47  )
effect ^ (13)
Total             $  84          $  81          $  81   
                                                                                          
                                                                                          
Assets Under Supervision ^ (3)
$ in billions
                                                                                          
                  As of                                           % Change From
                  September       June       September       June     September
                  30,             30,        30,             30,      30,
                  2013            2013            2012            2013          2012
                                                                                          
Assets under      $  878          $  849          $  856          3         %   3         %
management
Other client        113           106           95          7            19    
assets
Assets under
supervision       $  991         $  955         $  951         4            4     
(AUS)
                                                                                          
Asset Class
Alternative       $  144          $  143          $  154          1         %   (6    )   %
investments
Equity               190             173             156          10            22
Fixed income        429           412           406         4            6     
Long-term AUS        763             728             716          5             7
^(3)
                                                                                          
Liquidity           228           227           235         -            (3    )
products ^(3)
Total AUS         $  991         $  955         $  951         4            4     
                                                                                          
                                                                                          
                  Three Months Ended
                  September       June       September
                  30,             30,        30,
                  2013            2013            2012
                                                                                          
Balance,
beginning of      $  955          $  968          $  916
period
                                                                                          
Net inflows /
(outflows)
Alternative          -               (4   )          8
investments
Equity               4               1               (3   )
Fixed income        12            10    ^(14)   9    
Long-term AUS
net inflows /        16              7               14
(outflows)
                                                                                          
Liquidity           1             (9   )         (1   )
products
Total AUS net
inflows /            17              (2   )          13
(outflows)
                                                                                          
Net market
appreciation /       19              (11  )          22
(depreciation)
                                                
Balance, end of   $  991         $  955         $  951  
period
                                                                                          

                                  Footnotes

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

                                              Average for the
                                                                                Three             Nine
                                                                                Months         Months
                                                                                Ended             Ended
          Unaudited, in                             September     September
          millions                                                              30, 2013          30, 2013
          Total
          shareholders'                                                       $ 77,551          $ 77,225
          equity
          Preferred                                 (7,200)       (6,800)
          stock
          Common
          shareholders’                            $ 70,351       $ 70,425
          equity
                                                                                                  

(2)  Thomson Reuters – January 1, 2013 through September 30, 2013.

       Assets under supervision (AUS) 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 client assets include client assets invested with
(3)   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. Long-term AUS represents AUS excluding
       liquidity products. Liquidity products represents money markets and
       bank deposit assets.

       The firm’s global core excess represents a pool of excess liquidity
       consisting of unencumbered, highly liquid securities and cash. For a
       further discussion of the firm's global core excess liquidity pool, see
(4)   “Liquidity Risk Management” in PartI, Item2 “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
       June30,2013.

(5)   Represents a preliminary estimate and may be revised in the firm’s
       Quarterly Report on Form10-Q for the period ended September30,2013.

       The Tier1 capital ratio equals Tier1 capital divided by risk-weighted
       assets (RWAs). The Tier1 common ratio equals Tier1 common capital
       divided by RWAs. As of September30,2013, Tier1 capital was
       $71.05billion and Tier1 common capital was $61.83billion (Tier1
       capital less $9.22billion of preferred stock, junior subordinated debt
       issued to trusts and other adjustments). The firm’s RWAs under the
       Board of Governors of the Federal Reserve System’s risk-based capital
       requirements were approximately $437billion as of September30,2013,
       under Basel1 and reflecting the revised market risk regulatory capital
(6)   requirements which became effective on January1,2013. Management
       believes that the Tier1 common ratio is meaningful because it is one
       of the measures that the firm, its regulators 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 PartI, Item2 “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
       June30,2013.

       The firm’s investment banking transaction backlog represents an
(7)   estimate of the firm’s future net revenues from investment banking
       transactions where management believes that future revenue realization
       is more likely than not.

       In April 2013, the firm completed the sale of a majority stake in its
       Americas reinsurance business and no longer consolidates this business.
(8)   Net revenues related to reinsurance were $84 million and $297 million
       for the three months ended June30,2013 and September30,2012,
       respectively, and $317million and $767million for the nine months
       ended September30,2013 and September30,2012, respectively.

(9)   Includes employees, consultants and temporary staff.

       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
(10)   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                                          September
          millions                                                                                        30, 2013
          Total
          shareholders'                                                                                 $ 77,616
          equity
          Preferred                                              (7,200)
          stock
          Common
          shareholders’                                                                                   70,416
          equity
          Goodwill and
          identifiable                                           (4,458)
          intangible
          assets
          Tangible
          common                                                $ 65,958
          shareholders’
          equity
                                                                                                          

       The remaining authorization represents the shares that may be
       repurchased under the repurchase program approved by the Board of
(11)  Directors. As disclosed in Note19. Shareholders’ Equity in PartI,
       Item1 “Financial Statements” in the firm's Quarterly Report on
       Form10-Q for the period ended June30,2013, share repurchases require
       approval by the Board of Governors of the Federal Reserve System.

       Unvested share-based payment awards that have non-forfeitable rights to
       dividends or dividend equivalents are treated as a separate class of
       securities in calculating earnings per common share. The impact of
(12)   applying this methodology was a reduction in basic earnings per common
       share of $0.01, $0.01 and $0.02 for the three months ended
       September30,2013, June30,2013 and September30,2012, respectively,
       and $0.04 and $0.05 for the nine months ended September30,2013 and
       September30,2012, respectively.

       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
       total VaR and the sum of the VaRs for the four risk categories. For a
(13)   further discussion of VaR and the diversification effect, see “Market
       Risk Management” in PartI, Item2 “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
       June30,2013.

       In April 2013, the firm completed the sale of a majority stake in its
       Americas reinsurance business and no longer consolidates this business.
(14)   Long-term AUS flows for the three months ended June30,2013 include
       $10billion in assets managed by the firm related to this business.
       These assets were previously excluded from AUS as they were assets of a
       consolidated subsidiary.
       

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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