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
$34.21billion and net earnings of $8.04billion for the year ended
December31,2013. Diluted earnings per common share were $15.46 compared with
$14.13 for the year ended December31,2012. Return on average common
shareholders’ equity (ROE)^(1) was 11.0% for 2013.

Fourth quarter net revenues were $8.78billion and net earnings were
$2.33billion. 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 $6.00billion, which is the
    second highest annual performance. Underwriting produced record net
    revenues of $4.03billion, including record net revenues in debt
    underwriting.
  *Assets under supervision^(3) increased 8% from a year ago to a record
    $1.04trillion. Net inflows in long-term assets under supervision^(3) of
    $41billion^(4) during 2013 were the highest since 2007. Investment
    Management generated net revenues of $5.46billion, 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 39.3million shares of its common stock
    for a total cost of $6.17billion, while maintaining strong capital
    levels. The firm’s Tier1 capital ratio^(6) was 16.7%^(7) and the firm’s
    Tier1 common ratio^(6) was 14.6%^(7) as of December31,2013, in each
    case under BaselI and also reflecting the revised market risk regulatory
    capital requirements which became effective on January1,2013.
  *The firm continues to manage its liquidity conservatively. The firm’s
    global core excess liquidity^(8) was $184billion^(7) as of
    December31,2013.

                                _____________

“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 $6.00billion for 2013, 22% higher
than 2012. Net revenues in Financial Advisory were $1.98billion, essentially
unchanged compared with 2012. Net revenues in Underwriting were $4.03billion,
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 $1.72billion 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 $585million,
15% higher than the fourth quarter of 2012. Net revenues in Underwriting were
$1.13billion, 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 $15.72billion for 2013,
13% lower than 2012.

Net revenues in Fixed Income, Currency and Commodities Client Execution were
$8.65billion 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 $7.07billion 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
$296million ($220million and $76million related to Fixed Income, Currency
and Commodities Client Execution and equities client execution, respectively)
for 2013, compared with a net loss of $714million ($433million and
$281million 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 $3.41billion 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
$1.72billion, 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 $1.68billion, 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 $494million 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
$206million ($163million and $43million 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 $126million
($79million and $47million 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 $7.02billion for 2013, 19% higher
than 2012. Results for 2013 included net gains of $3.93billion 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
$1.95billion from debt securities and loans, and other net revenues of
$1.14billion related to the firm’s consolidated investments.

Fourth Quarter
Net revenues in Investing & Lending were $2.06billion 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 $1.40billion 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 $423million from debt securities and loans,
and other net revenues of $234million related to the firm’s consolidated
investments.

Investment Management

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

Fourth Quarter
Net revenues in Investment Management were $1.60billion 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 $51billion to $1.04trillion.
Long-term assets under supervision^(3) increased $33billion, including net
inflows of $13billion, reflecting inflows in fixed income and equity assets,
partially offset by outflows in alternative investment assets. Net market
appreciation of $20billion during the quarter was primarily in equity assets.
In addition, liquidity products^(3) increased $18billion.

                                   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 $12.61billion 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 $9.86billion 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 $962million compared with
$448million for 2012.

Fourth Quarter
Non-compensation expenses were $3.04billion 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 $561million (primarily comprised of net provisions for
mortgage-related matters) compared with $260million 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 $155million 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 December31,2013, total capital was $239.44billion, consisting of
$78.47billion in total shareholders’ equity (common shareholders’ equity of
$71.27billion and preferred stock of $7.20billion) and $160.97billion in
unsecured long-term borrowings. In October2013, 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 467.4million as of December31,2013.

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

Under the regulatory capital requirements applicable to bank holding companies
in 2013, the firm’s Tier1 capital ratio^(6) was 16.7%^(7) and the firm’s
Tier1 common ratio^(6) was 14.6%^(7) as of December31,2013, up from 16.3%
and 14.2%, respectively, as of September30,2013 (in each case under BaselI
and also 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)^(8) was $184billion^(7)
    as of December31,2013 and averaged $183billion^(7) for the fourth
    quarter of 2013, compared with an average of $187billion for the third
    quarter of 2013. GCE averaged $183billion^(7) for 2013, compared with an
    average of $172billion for 2012.
  *Total assets ^ were $912billion^(7) as of December31,2013, compared
    with $923billion as of September30,2013 and $939billion as of
    December31,2012.
  *Level3 assets ^ were $40billion^(7) as of December31,2013, compared
    with $42billion as of September30,2013 and $47billion as of
    December31,2012, 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 March28,2014 to common shareholders of
record on February28,2014. The firm also declared dividends of $234.38,
$387.50, $250.00, $250.00, $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 February10,2014 to preferred
shareholders of record on January26,2014. In addition, the firm declared
dividends of $1,011.11 per each share of SeriesE Preferred Stock and SeriesF
Preferred Stock, to be paid on March3,2014 to preferred shareholders of
record on February16,2014.

                                _____________

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 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 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 December31,2013 include
      $10billion 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 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 December31,2013, Tier1 capital was
       $72.47billion and Tier1 common capital was $63.25billion (Tier1
       capital less $9.22billion 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
       $433billion as of December31,2013, under BaselI and also reflecting
(6)   the revised market risk regulatory capital 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 September30,2013.
       
(7)    Represents a preliminary estimate and may be revised in the firm’s
       Annual Report on Form10-K for the year ended December31,2013.
       
       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 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
       September30,2013.
       
       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 April2013, 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
       $317million and $1.08billion for the years ended December31,2013
       and December31,2012, respectively, and $317million for the three
       months ended December31,2012.
       
(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 Note19. Shareholders’ Equity in PartI,
(12)   Item1 “Financial Statements” in the firm's Quarterly Report on
       Form10-Q for the period ended September30,2013, share repurchases
       require approval by the Board of Governors of the Federal Reserve
       System.
       
(13)   Includes a gain of $494million 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 December31,2013 and
       December31,2012, respectively, and $0.01 for each of the three months
       ended December31,2013, September30,2013 and December31,2012.
       
       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 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
       September30,2013.
       
       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 December31,2012. Includes $5billion 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 December31,2012.
       

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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