Goldman Sachs Reports 2022 Third Quarter Earnings Per Common Share of $8.25
The Goldman Sachs Group, today reported net revenues of $11.98 billion and net earnings of $3.07 billion for the third quarter ended September 30, 2022.
Net revenues were $36.77 billion and net earnings were $9.94 billion for the first nine months of 2022, Diluted earnings per common share (EPS) was $8.25 for the third quarter of 2022 compared with $14.93 for the third quarter of 2021 and $7.73 for the second quarter of 2022, and was $26.71 for the first nine months of 2022 compared with $48.59 for the first nine months of 2021.
Annualized return on average common shareholders’ equity (ROE)1 was 11.0% for the third quarter of 2022 and 12.2% for the first nine months of 2022.
Annualized return on average tangible common shareholders’ equity (ROTE)1 was 12.0% for the third quarter of 2022 and 13.1% for the first nine months of 2022.
Net revenues were $11.98 billion for the third quarter of 2022, 12% lower than a strong third quarter of 2021 and 1% higher than the second quarter of 2022.
The decrease compared with the third quarter of 2021 reflected significantly lower net revenues in Investment Banking and Asset Management, partially offset by higher net revenues in Global Markets and Consumer & Wealth Management.
Net revenues in Asset Management were $1.82 billion for the third quarter of 2022, 20% lower than the third quarter of 2021 and 68% higher than the second quarter of 2022.
The decrease compared with the third quarter of 2021 primarily reflected significantly lower net revenues in Equity investments and Lending and debt investments, partially offset by significantly higher net revenues in Management and other fees.
The decrease in Equity investments net revenues reflected significantly lower net gains from investments in private equities, partially offset by mark-to-market net gains from investments in public equities compared with significant net losses in the third quarter of 2021.
The decrease in Lending and debt investments net revenues primarily reflected net mark-downs compared with net mark-ups in the prior year period.
Incentive fees were lower, driven by harvesting in the prior year period.The increase in Management and other fees reflected the inclusion of NN Investment Partners (NNIP) in the current period and the impact of fee waivers on money market funds in the prior year period.
Operating expenses were $7.70 billion for the third quarter of 2022, 17% higher than the third quarter of 2021 and 1% higher than the second quarter of 2022.
The firm’s efficiency ratio3 for the first nine months of 2022 was 62.7%, compared with 52.8% for the first nine months of 2021.
The increase in operating expenses compared with the third quarter of 2021 included higher compensation and benefits expenses (reflecting a smaller reduction in the year-to-date ratio of compensation and benefits to net revenues, net of provision for credit losses, compared with the prior year period), the inclusion of NNIP and GreenSky, Inc., higher net provisions for litigation and regulatory proceedings, and higher transaction based expenses.
Net provisions for litigation and regulatory proceedings for the third quarter of 2022 were $191 million compared with $52 million for the third quarter of 2021, Headcount increased 4% compared with the end of the second quarter of 2022, primarily reflecting the timing of campus hires and investments in growth initiatives.
