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Goldman Sachs Reports Earnings Per Common Share of $15.46 for 2013



  Goldman Sachs Reports Earnings Per Common Share of $15.46 for 2013

             Fourth Quarter Earnings Per Common Share Were $4.60

Business Wire

NEW YORK -- January 16, 2014

The Goldman Sachs Group, Inc. (NYSE: GS) today reported net revenues of
$34.21 billion and net earnings of $8.04 billion for the year ended
December 31, 2013. Diluted earnings per common share were $15.46 compared with
$14.13 for the year ended December 31, 2012. Return on average common
shareholders’ equity (ROE) ^(1) was 11.0% for 2013.

Fourth quarter net revenues were $8.78 billion and net earnings were
$2.33 billion. Diluted earnings per common share were $4.60 compared with
$5.60 for the fourth quarter of 2012 and $2.88 for the third quarter of 2013.
Annualized ROE ^(1) was 12.7% for the fourth quarter of 2013.

                              Annual Highlights

  * Goldman Sachs continued its leadership in investment banking, ranking
    first in worldwide announced and completed mergers and acquisitions for
    the year. ^(2) The firm also ranked first in worldwide equity and
    equity-related offerings, common stock offerings and initial public
    offerings for the year. ^(2)
  * Investment Banking produced net revenues of $6.00 billion, which is the
    second highest annual performance. Underwriting produced record net
    revenues of $4.03 billion, including record net revenues in debt
    underwriting.
  * Assets under supervision ^(3) increased 8% from a year ago to a record
    $1.04 trillion. Net inflows in long-term assets under supervision ^(3) of
    $41 billion ^(4) during 2013 were the highest since 2007. Investment
    Management generated net revenues of $5.46 billion, which is the second
    highest annual performance.
  * Book value per common share increased approximately 5% to $152.48 and
    tangible book value per common share ^(5) increased approximately 7% to
    $143.11 compared with the end of 2012.
  * During 2013, the firm repurchased 39.3 million shares of its common stock
    for a total cost of $6.17 billion, while maintaining strong capital
    levels. The firm’s Tier 1 capital ratio ^(6) was 16.7% ^(7) and the firm’s
    Tier 1 common ratio ^(6) was 14.6% ^(7) as of December 31, 2013, in each
    case under Basel I and also reflecting the revised market risk regulatory
    capital requirements which became effective on January 1, 2013.
  * The firm continues to manage its liquidity conservatively. The firm’s
    global core excess liquidity ^(8) was $184 billion ^(7) as of
    December 31, 2013.

                                _____________

“Our work in advancing our client franchise and in ensuring continued cost
discipline has allowed us to provide solid returns even in a somewhat
challenging environment,” said Lloyd C. Blankfein, Chairman and Chief
Executive Officer. “We believe that we are well positioned to generate solid
returns as the economy continues to heal and provide considerable upside for
our shareholders as conditions materially improve.”

                                 Net Revenues

Investment Banking

Full Year
Net revenues in Investment Banking were $6.00 billion for 2013, 22% higher
than 2012. Net revenues in Financial Advisory were $1.98 billion, essentially
unchanged compared with 2012. Net revenues in Underwriting were $4.03 billion,
36% higher than 2012, due to strong net revenues in both equity and debt
underwriting. Net revenues in equity underwriting were significantly higher
compared with 2012, reflecting an increase in client activity, particularly in
initial public offerings. Net revenues in debt underwriting were significantly
higher compared with 2012, principally due to leveraged finance activity.

Fourth Quarter
Net revenues in Investment Banking were $1.72 billion for the fourth quarter
of 2013, 22% higher than the fourth quarter of 2012 and 47% higher than the
third quarter of 2013. Net revenues in Financial Advisory were $585 million,
15% higher than the fourth quarter of 2012. Net revenues in Underwriting were
$1.13 billion, 26% higher than the fourth quarter of 2012, due to strong net
revenues in equity underwriting. Net revenues in equity underwriting were more
than double the amount in the fourth quarter of 2012, reflecting an increase
in client activity, particularly in initial public offerings. Net revenues in
debt underwriting were lower compared with a strong fourth quarter of 2012,
primarily reflecting lower net revenues from investment-grade activity.

The firm’s investment banking transaction backlog increased compared with the
end of the third quarter of 2013 and increased significantly compared with the
end of 2012. ^(9)

Institutional Client Services

Full Year
Net revenues in Institutional Client Services were $15.72 billion for 2013,
13% lower than 2012.

Net revenues in Fixed Income, Currency and Commodities Client Execution were
$8.65 billion for 2013, 13% lower than 2012, reflecting significantly lower
net revenues in interest rate products compared with a solid 2012, and
significantly lower net revenues in mortgages compared with a strong 2012. In
addition, net revenues in currencies were slightly lower, while net revenues
in credit products and commodities were essentially unchanged compared with
2012. Fixed Income, Currency and Commodities Client Execution operated in a
generally challenging environment during much of 2013, as macroeconomic
concerns and uncertainty led to challenging market-making conditions and
generally lower levels of activity.

Net revenues in Equities were $7.07 billion for 2013, 14% lower compared with
2012, due to the sale of the firm’s Americas reinsurance business ^(10) in
2013 and the sale of the firm’s hedge fund administration business in 2012.
Net revenues in equities client execution (excluding net revenues from the
firm’s Americas reinsurance business) were higher compared with 2012,
including significantly higher net revenues in cash products, partially offset
by significantly lower net revenues in derivatives. Commissions and fees were
slightly higher compared with 2012. Securities services net revenues were
significantly lower compared with 2012, primarily due to the sale of the
firm’s hedge fund administration business in 2012. During 2013, Equities
operated in an environment characterized by a significant increase in global
equity prices, particularly in Japan and the U.S., and generally lower
volatility levels.

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
$296 million ($220 million and $76 million related to Fixed Income, Currency
and Commodities Client Execution and equities client execution, respectively)
for 2013, compared with a net loss of $714 million ($433 million and
$281 million related to Fixed Income, Currency and Commodities Client
Execution and equities client execution, respectively) for 2012.

Fourth Quarter
Net revenues in Institutional Client Services were $3.41 billion for the
fourth quarter of 2013, 22% lower than the fourth quarter of 2012 and 19%
higher than the third quarter of 2013.

Net revenues in Fixed Income, Currency and Commodities Client Execution were
$1.72 billion, 15% lower than the fourth quarter of 2012, reflecting
significantly lower net revenues in mortgages and, to a lesser extent,
interest rate products, currencies and commodities. Net revenues in credit
products, which include a gain on the sale of the firm’s European insurance
business, were higher compared with the fourth quarter of 2012. During the
fourth quarter of 2013, Fixed Income, Currency and Commodities Client
Execution operated in an environment characterized by tighter credit spreads
and improved market-making conditions in certain businesses, compared with the
third quarter of 2013. However, economic uncertainty persisted and levels of
activity generally remained low.

Net revenues in Equities were $1.68 billion, 27% lower than the fourth quarter
of 2012, due to the sale of the firm’s Americas reinsurance business ^(10) in
2013 and the sale of the firm’s hedge fund administration business in 2012.
Net revenues in equities client execution (excluding net revenues from the
firm’s Americas reinsurance business) were significantly higher compared with
the same prior year period, including significantly higher net revenues in
cash products, partially offset by lower net revenues in derivatives.
Commissions and fees were slightly higher compared with the fourth quarter of
2012. Securities services net revenues were significantly lower compared with
the fourth quarter of 2012, due to a gain of $494 million on the sale of the
firm’s hedge fund administration business in 2012. During the quarter,
Equities operated in an environment generally characterized by an increase in
global equity prices, while volatility levels remained low.

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
$206 million ($163 million and $43 million related to Fixed Income, Currency
and Commodities Client Execution and equities client execution, respectively)
for the fourth quarter of 2013, compared with a net loss of $126 million
($79 million and $47 million related to Fixed Income, Currency and Commodities
Client Execution and equities client execution, respectively) for the fourth
quarter of 2012.

Investing & Lending

Full Year
Net revenues in Investing & Lending were $7.02 billion for 2013, 19% higher
than 2012. Results for 2013 included net gains of $3.93 billion from
investments in equities, primarily in private equities, driven by
company-specific events and strong corporate performance. In addition,
Investing & Lending net revenues included net gains and net interest income of
$1.95 billion from debt securities and loans, and other net revenues of
$1.14 billion related to the firm’s consolidated investments.

Fourth Quarter
Net revenues in Investing & Lending were $2.06 billion for the fourth quarter
of 2013, 4% higher than the fourth quarter of 2012 and 40% higher than the
third quarter of 2013. Results for the fourth quarter of 2013 included net
gains of $1.40 billion from investments in equities, primarily reflecting
company-specific events, including initial public offerings, and net gains in
public equities. In addition, Investing & Lending net revenues included net
gains and net interest income of $423 million from debt securities and loans,
and other net revenues of $234 million related to the firm’s consolidated
investments.

Investment Management

Full Year
Net revenues in Investment Management were $5.46 billion for 2013, 5% higher
than 2012, reflecting higher management and other fees, primarily due to
higher average assets under supervision. During the year, total assets under
supervision ^(3) increased $77 billion to $1.04 trillion. Long-term assets
under supervision ^(3) increased $81 billion, including net inflows of
$41 billion ^(4), reflecting inflows in fixed income and equity assets,
partially offset by outflows in alternative investment assets. Net market
appreciation of $40 billion during the year was primarily in equity assets.
Liquidity products ^(3) decreased $4 billion.

Fourth Quarter
Net revenues in Investment Management were $1.60 billion for the fourth
quarter of 2013, 5% higher than the fourth quarter of 2012 and 31% higher than
the third quarter of 2013. The increase in net revenues compared with the
fourth quarter of 2012 reflected higher management and other fees, primarily
due to higher average assets under supervision. During the quarter, total
assets under supervision ^(3) increased $51 billion to $1.04 trillion.
Long-term assets under supervision ^(3) increased $33 billion, including net
inflows of $13 billion, reflecting inflows in fixed income and equity assets,
partially offset by outflows in alternative investment assets. Net market
appreciation of $20 billion during the quarter was primarily in equity assets.
In addition, liquidity products ^(3) increased $18 billion.

                                   Expenses

Operating expenses were $22.47 billion for 2013, 2% lower than 2012.

Compensation and Benefits

Compensation and benefits expenses (including salaries, discretionary
compensation, amortization of equity awards and other items such as benefits)
were $12.61 billion for 2013, 3% lower than 2012. The ratio of compensation
and benefits to net revenues for 2013 was 36.9% compared with 37.9% for 2012.
Total staff ^(11) increased 2% compared with the end of 2012.

Non-Compensation Expenses

Full Year
Non-compensation expenses were $9.86 billion for 2013, 2% lower than 2012. The
decrease compared with 2012 included a decline in insurance reserves,
reflecting the sale of the firm’s Americas reinsurance business, and a
decrease in depreciation and amortization expenses, primarily reflecting lower
impairments and lower operating expenses related to consolidated investments.
These decreases were partially offset by an increase in other expenses, due to
higher net provisions for litigation and regulatory proceedings, and higher
brokerage, clearing, exchange and distribution fees. Net provisions for
litigation and regulatory proceedings for 2013 were $962 million compared with
$448 million for 2012.

Fourth Quarter
Non-compensation expenses were $3.04 billion for the fourth quarter of 2013,
3% higher than the fourth quarter of 2012 and 40% higher than the third
quarter of 2013. The increase compared with the fourth quarter of 2012
included an increase in other expenses, due to higher net provisions for
litigation and regulatory proceedings, partially offset by lower operating
expenses related to consolidated investments. This increase was partially
offset by a decline in insurance reserves, reflecting the sale of the firm’s
Americas reinsurance business.

Net provisions for litigation and regulatory proceedings for the fourth
quarter of 2013 were $561 million (primarily comprised of net provisions for
mortgage-related matters) compared with $260 million for the fourth quarter of
2012 (including the settlement with the Federal Reserve Board regarding the
independent foreclosure review). The fourth quarter of 2013 also included $196
million of impairment charges, principally related to consolidated
investments, and a $155 million charitable contribution to Goldman Sachs
Gives. Compensation was reduced to fund this charitable contribution to
Goldman Sachs Gives.

Provision for Taxes

The effective income tax rate for 2013 was 31.5%, up from 30.3% for the first
nine months of 2013, reflecting a decrease in the impact of permanent
benefits. The rate decreased from 33.3% for 2012 to 31.5% for 2013, primarily
due to a determination that certain non-U.S. earnings will be permanently
reinvested abroad.

                                   Capital

As of December 31, 2013, total capital was $239.44 billion, consisting of
$78.47 billion in total shareholders’ equity (common shareholders’ equity of
$71.27 billion and preferred stock of $7.20 billion) and $160.97 billion in
unsecured long-term borrowings. In October 2013, Berkshire Hathaway Inc. and
certain of its subsidiaries exercised in full the warrant to purchase shares
of the firm’s common stock, which required net share settlement and resulted
in a reduction of approximately 3% to both book value per common share and
tangible book value per common share. Including the impact of the warrant
exercise, book value per common share increased approximately 5% to $152.48
and tangible book value per common share ^(5) increased approximately 7% to
$143.11 compared with the end of 2012, while both decreased approximately 1%
compared with the end of the third quarter of 2013. Book value per common
share 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 467.4 million as of December 31, 2013.

During the year, the firm repurchased 39.3 million shares of its common stock
at an average cost per share of $157.11, for a total cost of $6.17 billion,
including 8.5 million shares during the fourth quarter at an average cost per
share of $164.90, for a total cost of $1.40 billion. The remaining share
authorization under the firm’s existing repurchase program is 57.2 million
shares. ^(12)

Under the regulatory capital requirements applicable to bank holding companies
in 2013, the firm’s Tier 1 capital ratio ^(6) was 16.7% ^(7) and the firm’s
Tier 1 common ratio ^(6) was 14.6% ^(7) as of December 31, 2013, up from 16.3%
and 14.2%, respectively, as of September 30, 2013 (in each case under Basel I
and also reflecting the revised market risk regulatory capital requirements
which became effective on January 1, 2013).

                  Other Balance Sheet and Liquidity Metrics

  * The firm’s global core excess liquidity (GCE) ^(8) was $184 billion ^(7)
    as of December 31, 2013 and averaged $183 billion ^(7) for the fourth
    quarter of 2013, compared with an average of $187 billion for the third
    quarter of 2013. GCE averaged $183 billion ^(7) for 2013, compared with an
    average of $172 billion for 2012.
  * Total assets ^ were $912 billion ^(7) as of December 31, 2013, compared
    with $923 billion as of September 30, 2013 and $939 billion as of
    December 31, 2012.
  * Level 3 assets ^ were $40 billion ^(7) as of December 31, 2013, compared
    with $42 billion as of September 30, 2013 and $47 billion as of
    December 31, 2012, and represented 4.4% of total assets.

                                  Dividends

The Board of Directors of The Goldman Sachs Group, Inc. declared a dividend of
$0.55 per common share to be paid on March 28, 2014 to common shareholders of
record on February 28, 2014. The firm also declared dividends of $234.38,
$387.50, $250.00, $250.00, $371.88 and $343.75 per share of Series A Preferred
Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred
Stock, Series I Preferred Stock and Series J Preferred Stock, respectively
(represented by depositary shares, each representing a 1/1,000th interest in a
share of preferred stock), to be paid on February 10, 2014 to preferred
shareholders of record on January 26, 2014. In addition, the firm declared
dividends of $1,011.11 per each share of Series E Preferred Stock and Series F
Preferred Stock, to be paid on March 3, 2014 to preferred shareholders of
record on February 16, 2014.

                                _____________

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 Part I, Item 1A of the firm’s
Annual Report on Form 10-K for the year ended December 31, 2012.

Certain of the information regarding the firm’s capital ratios, risk-weighted
assets, total assets, level 3 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 Part I, Item 1A of the firm’s
Annual Report on Form 10-K for the year ended December 31, 2012.

Conference Call

A conference call to discuss the firm’s results, outlook and related matters
will be held at 9:30 am (ET). The call will be open to the public. Members of
the public who would like to listen to the conference call should dial
1-888-281-7154 (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 20446309, 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

                         Year Ended                                % Change
                                                                   From
                          December 31,         December 31,         December
                                                                   31, 
                         2013                 2012                 2012
Investment Banking
Financial Advisory       $   1,978            $   1,975            -         %
                                                                              
Equity underwriting          1,659                987              68
Debt underwriting            2,367                1,964            21      
Total Underwriting           4,026                2,951            36
                                                                    
Total Investment             6,004                4,926            22      
Banking
                                                                              
Institutional Client
Services
Fixed Income, Currency
and Commodities Client       8,651                9,914            (13    )
Execution
                                                                              
Equities client              2,594                3,171            (18    )
execution ^(10)
Commissions and fees         3,103                3,053            2
Securities services          1,373                1,986      ^(13) (31    )
Total Equities               7,070                8,210            (14    )
                                                                    
Total Institutional          15,721               18,124           (13    )
Client Services
                                                                              
Investing & Lending
Equity securities            3,930                2,800            40
Debt securities and          1,947                1,850            5
loans
Other                        1,141                1,241            (8     )
                                                                    
Total Investing &            7,018                5,891            19      
Lending
                                                                              
Investment Management
Management and other         4,386                4,105            7
fees
Incentive fees               662                  701              (6     )
Transaction revenues         415                  416              -
                                                                    
Total Investment             5,463                5,222            5       
Management
                                                                    
Total net revenues       $   34,206           $   34,163           -       
                                                                              

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

                  Three Months Ended                              % Change From
                   December       September        December       September      December
                  31,             30,             31,             30,           31, 
                  2013            2013            2012            2013          2012
Investment
Banking
Financial         $ 585           $ 423           $ 508           38        %   15        %
Advisory
                                                                                           
Equity              622             276             304           125           105
underwriting
Debt                511             467             593           9             (14   )
underwriting
Total               1,133           743             897           52            26
Underwriting
                                                                                 
Total
Investment          1,718           1,166           1,405         47            22     
Banking
                                                                                           
Institutional
Client Services
Fixed Income,
Currency and
Commodities         1,724           1,247           2,038         38            (15   )
Client
Execution
                                                                                           
Equities client     598             549             764           9             (22   )
execution ^(10)
Commissions and     747             727             722           3             3
fees
Securities          337             340             818     ^(13) (1     )      (59   )
services
Total Equities      1,682           1,616           2,304         4             (27   )
                                                                                 
Total
Institutional       3,406           2,863           4,342         19            (22   )
Client Services
                                                                                           
Investing &
Lending
Equity              1,403           938             1,123         50            25
securities
Debt securities     423             300             485           41            (13   )
and loans
Other               234             237             365           (1     )      (36   )
                                                                                 
Total Investing     2,060           1,475           1,973         40            4      
& Lending
                                                                                           
Investment
Management
Management and      1,143           1,085           1,067         5             7
other fees
Incentive fees      333             71              344           N.M.          (3    )
Transaction         122             62              105           97            16
revenues
                                                                                 
Total
Investment          1,598           1,218           1,516         31            5      
Management
                                                                                 
Total net         $ 8,782         $ 6,722         $ 9,236         31            (5    )
revenues
                                                                                           

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

                                Year Ended                         % Change
                                                                   From
                                 December          December         December
                                31,               31,              31, 
                                2013              2012             2012
Revenues
Investment                      $  6,004          $ 4,941          22        %
banking
Investment                         5,194            4,968          5
management
Commissions and                    3,255            3,161          3
fees
Market making                      9,368            11,348   ^(13) (17    )
Other principal                    6,993            5,865          19      
transactions
Total
non-interest                       30,814           30,283         2
revenues
                                                                              
Interest income                    10,060           11,381         (12    )
Interest expense                   6,668            7,501          (11    )
Net interest                       3,392            3,880          (13    )
income
                                                                              
Net revenues,
including net                      34,206           34,163         -       
interest income
                                                                              
Operating
expenses
Compensation and                   12,613           12,944         (3     )
benefits
                                                                              
Brokerage,
clearing,                          2,341            2,208          6
exchange and
distribution fees
Market                             541              509            6
development
Communications                     776              782            (1     )
and technology
Depreciation and                   1,322            1,738          (24    )
amortization
Occupancy                          839              875            (4     )
Professional fees                  930              867            7
Insurance                          176              598            (71    )
reserves
Other expenses                     2,931            2,435          20      
Total
non-compensation                   9,856            10,012         (2     )
expenses
                                                                    
Total operating                    22,469           22,956         (2     )
expenses
                                                                              
Pre-tax earnings                   11,737           11,207         5
Provision for                      3,697            3,732          (1     )
taxes
Net earnings                       8,040            7,475          8
                                                                              
Preferred stock                    314              183            72      
dividends
Net earnings
applicable to                   $  7,726          $ 7,292          6       
common
shareholders
                                                                              
                                                                              
Earnings per
common share
Basic ^(14)                     $  16.34          $ 14.63          12        %
Diluted                            15.46            14.13          9
                                                                              
Average common
shares
outstanding
Basic                              471.3            496.2          (5     )
Diluted                            499.6            516.1          (3     )
                                                                              

               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
                    December        September         December        September      December
                   31,              30,              31,              30,           31, 
                   2013             2013             2012             2013          2012
Revenues
Investment         $ 1,718          $ 1,166          $ 1,407          47        %   22        %
banking
Investment           1,524            1,153            1,450          32            5
management
Commissions and      788              765              754            3             5
fees
Market making        1,875            1,364            2,696    ^(13) 37            (30    )
Other principal      2,076            1,434            1,956          45            6       
transactions
Total
non-interest         7,981            5,882            8,263          36            (3     )
revenues
                                                                                               
Interest income      2,391            2,398            2,864          -             (17    )
Interest expense     1,590            1,558            1,891          2             (16    )
Net interest         801              840              973            (5    )       (18    )
income
                                                                                               
Net revenues,
including net        8,782            6,722            9,236          31            (5     )
interest income
                                                                                               
Operating
expenses
Compensation and     2,189            2,382            1,976          (8    )       11
benefits
                                                                                               
Brokerage,
clearing,
exchange and         594              573              550            4             8
distribution
fees
Market               143              117              140            22            2
development
Communications       204              202              194            1             5
and technology
Depreciation and     474              280              500            69            (5     )
amortization
Occupancy            206              205              232            -             (11    )
Professional         255              211              215            21            19
fees
Insurance            -                -                167            -             (100   )
reserves
Other expenses       1,165            585              949            99            23      
Total
non-compensation     3,041            2,173            2,947          40            3
expenses
                                                                                     
Total operating      5,230            4,555            4,923          15            6       
expenses
                                                                                               
Pre-tax earnings     3,552            2,167            4,313          64            (18    )
Provision for        1,220            650              1,421          88            (14    )
taxes
Net earnings         2,332            1,517            2,892          54            (19    )
                                                                                               
Preferred stock      84               88               59             (5    )       42      
dividends
Net earnings
applicable to      $ 2,248          $ 1,429          $ 2,833          57            (21    )
common
shareholders
                                                                                               
                                                                                               
Earnings per
common share
Basic ^(14)        $ 4.80           $ 3.07           $ 5.87           56        %   (18    )  %
Diluted              4.60             2.88             5.60           60            (18    )
                                                                                               
Average common
shares
outstanding
Basic                467.1            463.4            481.5          1             (3     )
Diluted              488.7            496.4            505.6          (2    )       (3     )
                                                                                               
Selected Data
Total staff at       32,900           32,600           32,400         1             2
period-end ^(11)
                                                                                               

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

Average Daily VaR ^(15)
$ in millions
                                                                                  
                  Three Months Ended                              Year Ended
                   December       September        December        December         December
                  31,             30,             31,             31,              31, 
                  2013            2013            2012            2013             2012
Risk Categories
Interest rates    $ 62            $  68           $  67           $ 63             $  78
Equity prices       37               30              31             32                26
Currency rates      15               17              11             17                14
Commodity           18               17              20             19                22
prices
Diversification     (51   )          (48  )          (53  )         (51   )           (54  )
effect ^(15)
Total             $ 81            $  84           $  76           $ 80             $  86    
                                                                                              
                                                                                              
Assets Under Supervision ^ (3)
$ in billions
                                                                                              
                  As of                                           % Change From
                   December       September        December       September         December
                  31,             30,             31,             30,              31, 
                  2013            2013            2012            2013             2012
                                                                                              
Assets under      $ 919           $  878          $  854            5       %         8      %
management
Other client        123              113             111            9                 11    
assets
Assets under
supervision       $ 1,042         $  991          $  965            5                 8     
(AUS)
                                                                                              
Asset Class
Alternative       $ 142           $  144          $  151            (1    ) %         (6   ) %
investments
Equity              208              190             153            9                 36
Fixed income        446              429             411            4                 9     
Long-term           796              763             715            4                 11
AUS ^(3)
                                                                                              
Liquidity           246              228             250            8                 (2   )
products ^(3)
Total AUS         $ 1,042         $  991          $  965            5                 8     
                                                                                              
                                                                                              
                  Three Months Ended                              Year Ended
                   December       September        December        December         December
                  31,             30,             31,             31,              31, 
                  2013            2013            2012            2013             2012
                                                                                              
Balance,
beginning of      $ 991           $  955          $  951          $ 965            $  895
period
                                                                                              
Net inflows /
(outflows)
Alternative         (4    )          -               (3   )         (13   )           1
investments
Equity              4                4               (6   )         13                (17  )
Fixed income        13               12              2              41                34    
Long-term AUS
net inflows /       13               16              (7   ) ^(16)   41      ^(4)      18     ^(16)
(outflows)
                                                                                              
Liquidity           18               1               15             (4    )           3     
products
Total AUS net
inflows /           31               17              8              37                21
(outflows)
                                                                                              
Net market
appreciation /      20               19              6              40                49
(depreciation)
                                                                                    
Balance, end of   $ 1,042         $  991          $  965          $ 1,042          $  965   
period
                                                                                              

                                  Footnotes

      ROE is computed by dividing net earnings (or annualized net earnings for
(1)   annualized ROE) 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
                                                                            Year Ended       Months
                                                                                             Ended
          Unaudited, in                                                     December         December
          millions                                                          31, 2013         31, 2013
          Total
          shareholders’                                                     $ 77,353         $ 77,737
          equity
          Preferred                                                           (6,892 )         (7,200 )
          stock
          Common
          shareholders’                                                     $ 70,461         $ 70,537  
          equity
                                                                                                       

(2)   Thomson Reuters – January 1, 2013 through December 31, 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
(3)   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. Long-term AUS represents AUS excluding liquidity products.
      Liquidity products represents money markets and bank deposit assets.
       
      In April 2013, the firm completed the sale of a majority stake in its
      Americas reinsurance business and no longer consolidates this business.
(4)   Long-term AUS flows for the year ended December 31, 2013 include
      $10 billion in assets managed by the firm related to this business which
      were previously excluded from AUS as they were assets of a consolidated
      subsidiary.
       
      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
(5)   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                                                                           December
          millions                                                                                31, 2013
          Total
          shareholders’                                                                           $ 78,467
          equity
          Preferred                                                                                 (7,200 )
          stock
          Common
          shareholders’                                                                             71,267
          equity
          Goodwill and
          identifiable                                                                              (4,376 )
          intangible
          assets
          Tangible
          common                                                                                  $ 66,891  
          shareholders’
          equity
                                                                                                     

       The Tier 1 capital ratio equals Tier 1 capital divided by risk-weighted
       assets (RWAs). The Tier 1 common ratio equals Tier 1 common capital
       divided by RWAs. As of December 31, 2013, Tier 1 capital was
       $72.47 billion and Tier 1 common capital was $63.25 billion (Tier 1
       capital less $9.22 billion of perpetual non-cumulative 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
       $433 billion as of December 31, 2013, under Basel I and also reflecting
(6)    the revised market risk regulatory capital requirements which became
       effective on January 1, 2013. Management believes that the Tier 1
       common ratio is meaningful because it is one of the measures that the
       firm, its regulators and investors use to assess capital adequacy. The
       Tier 1 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
       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 September 30, 2013.
        
(7)    Represents a preliminary estimate and may be revised in the firm’s
       Annual Report on Form 10-K for the year ended December 31, 2013.
        
       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
(8)    “Liquidity Risk Management” 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
       September 30, 2013.
        
       The firm’s investment banking transaction backlog represents an
(9)    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.
(10)   Net revenues related to the Americas reinsurance business were
       $317 million and $1.08 billion for the years ended December 31, 2013
       and December 31, 2012, respectively, and $317 million for the three
       months ended December 31, 2012.
        
(11)   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 Note 19. Shareholders’ Equity in Part I,
(12)   Item 1 “Financial Statements” in the firm's Quarterly Report on
       Form 10-Q for the period ended September 30, 2013, share repurchases
       require approval by the Board of Governors of the Federal Reserve
       System.
        
(13)   Includes a gain of $494 million 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
       securities in calculating earnings per common share. The impact of
(14)   applying this methodology was a reduction in basic earnings per common
       share of $0.05 and $0.07 for the years ended December 31, 2013 and
       December 31, 2012, respectively, and $0.01 for each of the three months
       ended December 31, 2013, September 30, 2013 and December 31, 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 represents the difference
       between total VaR and the sum of the VaRs for the four risk categories.
(15)   For a further discussion of VaR and the diversification effect, see
       “Market Risk Management” 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
       September 30, 2013.
        
       Includes $34 billion of fixed income asset inflows in connection with
       the firm’s acquisition of Dwight Asset Management Company LLC for the
(16)   year ended December 31, 2012. Includes $5 billion of fixed income and
       equity asset outflows related to the firm’s liquidation of Goldman
       Sachs Asset Management Korea Co., Ltd. for both the three months and
       the year ended December 31, 2012.
        

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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