Goldman Sachs : Annual Report 2022

THE GOLDMAN SACHS GROUP, INC.

Annual Report 2022

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Fellow Shareholders:

In January 2020, I stood in the auditorium of our New York headquarters at 200 West Street and kicked off our first Investor Day. Back then, our leadership team and I laid out a comprehensive strategy to strengthen and grow the firm: First, we would invest in our core businesses. Second, we would pursue four growth initiatives: asset management, wealth management, transaction banking and consumer banking. And third, we would run the firm more efficiently. In addition, for the first time, we set public, firmwide financial targets to help investors hold us accountable.

In February 2023, we took another step on our journey when we held our second Investor Day, and as I said then, it has certainly been an interesting three years. Back in January 2020, nobody would have imagined that just a few weeks later a pandemic would break out and there would be such disruption in the global economy. Even today, we're operating in an uncertain environment. The war in Ukraine has roiled energy markets, and an increase in inflation has triggered monetary tightening.

But through it all, we've stayed focused on shareholders, and I'm proud of what we've accomplished. Since our first Investor Day, our total shareholder return

is 60 percent, outperforming our peer average meaningfully.1 Our book value per share is up by nearly 40 percent, roughly twice that of our closest competitor.1 Our earnings per share is up by over 40 percent. We've returned nearly $18 billion in capital to common shareholders. And our average returns over the past three years are in line with

ANNUAL REPORT 2022

LETTER TO SHAREHOLDERS

John Waldron

President and Chief Operating Officer

David Solomon

Chairman and Chief Executive Officer

Denis Coleman

Chief Financial Officer

our current targets of 14-16 percent return on equity (ROE) and 15-17 percent return on tangible equity (ROTE).2

When you look at our 2022 results specifically, there's no question that the operating environment was challenging. The same business mix that did so well in 2021 faced headwinds, such as low capital markets issuance activity and falling equity and fixed income asset prices. At the same time, we continued to make strategic investments in our acquisitions and technology that, though important to the firm's long- term strength, weighed on our financial performance in the short run.

Despite those difficulties, we delivered for shareholders in 2022. Net revenues were $47.4 billion, net earnings were $11.3 billion and diluted earnings per common share were $30.06. ROE was 10.2 percent and ROTE2 was 11.0 percent. We also grew our book value per share by 6.7 percent and continued to make significant progress on our strategic evolution. As a result, in a macro environment where equity issuance hit a nearly two-decade low, we performed better than we would have three years ago.

In the pages that follow, we lay out in detail the state of our franchise as well as the progress we've made in our businesses, and as you'll see, our strategy is a reflection of our purpose: We aspire to

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"Being exceptional is not a given, but we always learn and adapt."

David Solomon

be the world's most exceptional financial institution, united by our core values of partnership, client service, integrity and excellence. Being exceptional is not a given, but we always learn and adapt. We are constantly focused on outperforming for our clients.

And what's most exceptional about our firm is our people. As I travel around the world meeting with clients, I'm often told how talented our people are. We couldn't have anticipated all the challenges

Financial Performance

$47.4B	$11.3B	$30.06
Net revenues	Net earnings	Diluted earnings
		per common share
10.2%	11.0%
ROE	ROTE2