GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2023-09-30, page 1: 
PART I. FINANCIAL INFORMATION 


Item 1. Financial Statements (Unaudited) 



THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES


Consolidated Statements of Earnings

(Unaudited)
|    |                                                |                             |       |                            |        |       |       |        |    |        |    |       |
|---:|:-----------------------------------------------|:----------------------------|:------|:---------------------------|:-------|:------|:------|:-------|:---|:-------|:---|:------|
|  2 |                                                | Three MonthsEnded September |       | Nine MonthsEnded September |        |       |       |        |    |        |    |       |
|  3 | in millions, except per share amounts          | 2023                        |       | 2022                       |        | 2023  |       | 2022   |    |        |    |       |
|  4 | Revenues                                       |                             |       |                            |        |       |       |        |    |        |    |       |
|  5 | Investment banking                             | $                           | 1,555 |                            |        | $     | 1,544 |        | $  | 4,565  | $  | 5,487 |
|  6 | Investment management                          | 2,409                       |       |                            | 2,283  |       |       | 7,054  |    | 6,747  |    |       |
|  7 | Commissions and fees                           | 883                         |       |                            | 992    |       |       | 2,864  |    | 3,066  |    |       |
|  8 | Market making                                  | 4,958                       |       |                            | 4,641  |       |       | 14,742 |    | 15,583 |    |       |
|  9 | Other principal transactions                   | 465                         |       |                            | 472    |       |       | 699    |    | 285    |    |       |
| 10 | Total non-interest revenues                    | 10,270                      |       |                            | 9,932  |       |       | 29,924 |    | 31,168 |    |       |
| 12 | Interest income                                | 18,257                      |       |                            | 8,550  |       |       | 50,031 |    | 16,613 |    |       |
| 13 | Interest expense                               | 16,710                      |       |                            | 6,507  |       |       | 45,019 |    | 11,009 |    |       |
| 14 | Net interest income                            | 1,547                       |       |                            | 2,043  |       |       | 5,012  |    | 5,604  |    |       |
| 15 | Total net revenues                             | 11,817                      |       |                            | 11,975 |       |       | 34,936 |    | 36,772 |    |       |
| 16 | Provision for credit losses                    | 7                           |       |                            | 515    |       |       | 451    |    | 1,743  |    |       |
| 17 | Operating expenses                             |                             |       |                            |        |       |       |        |    |        |    |       |
| 18 | Compensation and benefits                      | 4,188                       |       |                            | 3,606  |       |       | 11,897 |    | 11,384 |    |       |
| 19 | Transaction based                              | 1,452                       |       |                            | 1,317  |       |       | 4,242  |    | 3,878  |    |       |
| 20 | Market development                             | 136                         |       |                            | 199    |       |       | 454    |    | 596    |    |       |
| 21 | Communications and technology                  | 468                         |       |                            | 459    |       |       | 1,416  |    | 1,327  |    |       |
| 22 | Depreciation and amortization                  | 1,512                       |       |                            | 666    |       |       | 4,076  |    | 1,728  |    |       |
| 23 | Occupancy                                      | 267                         |       |                            | 255    |       |       | 785    |    | 765    |    |       |
| 24 | Professional fees                              | 377                         |       |                            | 465    |       |       | 1,152  |    | 1,392  |    |       |
| 25 | Other expenses                                 | 654                         |       |                            | 737    |       |       | 1,978  |    | 2,003  |    |       |
| 26 | Total operating expenses                       | 9,054                       |       |                            | 7,704  |       |       | 26,000 |    | 23,073 |    |       |
| 28 | Pre-tax earnings                               | 2,756                       |       |                            | 3,756  |       |       | 8,485  |    | 11,956 |    |       |
| 29 | Provision for taxes                            | 698                         |       |                            | 687    |       |       | 1,977  |    | 2,021  |    |       |
| 30 | Net earnings                                   | 2,058                       |       |                            | 3,069  |       |       | 6,508  |    | 9,935  |    |       |
| 31 | Preferred stock dividends                      | 176                         |       |                            | 107    |       |       | 468    |    | 356    |    |       |
| 32 | Net earnings applicable to common shareholders | $                           | 1,882 |                            |        | $     | 2,962 |        | $  | 6,040  | $  | 9,579 |
| 34 | Earnings per common share                      |                             |       |                            |        |       |       |        |    |        |    |       |
| 35 | Basic                                          | $                           | 5.52  |                            |        | $     | 8.35  |        | $  | 17.52  | $  | 27.03 |
| 36 | Diluted                                        | $                           | 5.47  |                            |        | $     | 8.25  |        | $  | 17.39  | $  | 26.71 |
| 38 | Average common shares                          |                             |       |                            |        |       |       |        |    |        |    |       |
| 39 | Basic                                          | 338.7                       |       | 352.8                      |        | 342.5 |       | 353.0  |    |        |    |       |
| 40 | Diluted                                        | 343.9                       |       | 359.2                      |        | 347.4 |       | 358.6  |    |        |    |       |

Consolidated Statements of Comprehensive Income 

(Unaudited)
|    |                                                            |                             |       |                            |       |      |       |       |    |         |    |        |
|---:|:-----------------------------------------------------------|:----------------------------|:------|:---------------------------|:------|:-----|:------|:------|:---|:--------|:---|:-------|
|  2 |                                                            | Three MonthsEnded September |       | Nine MonthsEnded September |       |      |       |       |    |         |    |        |
|  3 | $ in millions                                              | 2023                        |       | 2022                       |       | 2023 |       | 2022  |    |         |    |        |
|  4 | Net earnings                                               | $                           | 2,058 |                            |       | $    | 3,069 |       | $  | 6,508   | $  | 9,935  |
|  5 | Other comprehensive income/(loss) adjustments, net of tax: |                             |       |                            |       |      |       |       |    |         |    |        |
|  6 | Currency translation                                       | (16)                        |       |                            | 26    |      |       | (59)  |    | (5)     |    |        |
|  7 | Debt valuation adjustment                                  | 328                         |       |                            | 673   |      |       | (283) |    | 2,601   |    |        |
|  8 | Pension and postretirement liabilities                     | 9                           |       |                            | (2)   |      |       | 33    |    | 10      |    |        |
|  9 | Available-for-sale securities                              | 317                         |       |                            | (615) |      |       | 720   |    | (2,410) |    |        |
| 10 | Other comprehensive income                                 | 638                         |       |                            | 82    |      |       | 411   |    | 196     |    |        |
| 11 | Comprehensive income                                       | $                           | 2,696 |                            |       | $    | 3,151 |       | $  | 6,919   | $  | 10,131 |
The accompanying notes are an integral part of these consolidated financial statements.

|    |    |                                        |
|---:|---:|:---------------------------------------|
|  1 |  1 | Goldman Sachs September 2023 Form 10-Q |

, GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2023-09-30, page 2: 
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES


Consolidated Balance Sheets 

(Unaudited)

|    |                                                                                                             |           |           |           |    |           |
|---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------|
|  1 |                                                                                                             | As of     |           |           |    |           |
|  2 |                                                                                                             | September | December  |           |    |           |
|  3 | $ in millions                                                                                               | 2023      | 2022      |           |    |           |
|  4 | Assets                                                                                                      |           |           |           |    |           |
|  5 | Cash and cash equivalents                                                                                   | $         | 239,879   |           | $  | 241,825   |
|  6 | Collateralized agreements:                                                                                  |           |           |           |    |           |
|  7 | Securities purchased under agreements to resell (includes $190,446 and $225,117 at fair value)              | 190,695   |           | 225,117   |    |           |
|  8 | Securities borrowed (includes $36,792 and $38,578 at fair value)                                            | 196,925   |           | 189,041   |    |           |
|  9 | Customer and other receivables (includes $23 and $25 at fair value)                                         | 140,866   |           | 135,448   |    |           |
| 10 | Trading assets (at fair value and includes $97,406 and $40,143 pledged as collateral)                       | 448,060   |           | 301,245   |    |           |
| 11 | Investments (includes $76,307 and $78,201 at fair value, and $8,463 and $9,818 pledged as collateral)       | 145,530   |           | 130,629   |    |           |
| 12 | Loans (net of allowance of $4,895 and $5,543, and includes $6,448 and $7,655 at fair value)                 | 178,257   |           | 179,286   |    |           |
| 13 | Other assets (includes $324 and $145 at fair value)                                                         | 36,941    |           | 39,208    |    |           |
| 14 | Total assets                                                                                                | $         | 1,577,153 |           | $  | 1,441,799 |
| 16 | Liabilities and shareholders' equity                                                                        |           |           |           |    |           |
| 17 | Deposits (includes $28,557 and $15,746 at fair value)                                                       | $         | 402,962   |           | $  | 386,665   |
| 18 | Collateralized financings:                                                                                  |           |           |           |    |           |
| 19 | Securities sold under agreements to repurchase (at fair value)                                              | 225,679   |           | 110,349   |    |           |
| 20 | Securities loaned (includes $8,178 and $4,372 at fair value)                                                | 54,926    |           | 30,727    |    |           |
| 21 | Other secured financings (includes $14,114 and $12,756 at fair value)                                       | 14,728    |           | 13,946    |    |           |
| 22 | Customer and other payables                                                                                 | 252,342   |           | 262,045   |    |           |
| 23 | Trading liabilities (at fair value)                                                                         | 195,123   |           | 191,324   |    |           |
| 24 | Unsecured short-term borrowings (includes $42,351 and $39,731 at fair value)                                | 70,009    |           | 60,961    |    |           |
| 25 | Unsecured long-term borrowings (includes $73,916 and $73,147 at fair value)                                 | 224,024   |           | 247,138   |    |           |
| 26 | Other liabilities (includes $614 and $159 at fair value)                                                    | 20,083    |           | 21,455    |    |           |
| 27 | Total liabilities                                                                                           | 1,459,876 |           | 1,324,610 |    |           |
| 28 | Commitments, contingencies and guarantees                                                                   |           |           |           |    |           |
| 29 | Shareholders' equity                                                                                        |           |           |           |    |           |
| 30 | Preferred stock; aggregate liquidation preference of $11,203 and $10,703                                    | 11,203    |           | 10,703    |    |           |
| 31 | Common stock; 922,889,392 and 917,815,030 shares issued, and 326,604,718 and 334,918,639 shares outstanding | 9         |           | 9         |    |           |
| 32 | Share-based awards                                                                                          | 5,117     |           | 5,696     |    |           |
| 33 | Nonvoting common stock; no shares issued and outstanding                                                    | –         |           | –         |    |           |
| 34 | Additional paid-in capital                                                                                  | 60,233    |           | 59,050    |    |           |
| 35 | Retained earnings                                                                                           | 142,743   |           | 139,372   |    |           |
| 36 | Accumulated other comprehensive loss                                                                        | (2,599)   |           | (3,010)   |    |           |
| 37 | Stock held in treasury, at cost; 596,284,676 and 582,896,393 shares                                         | (99,429)  |           | (94,631)  |    |           |
| 38 | Total shareholders' equity                                                                                  | 117,277   |           | 117,189   |    |           |
| 39 | Total liabilities and shareholders' equity                                                                  | $         | 1,577,153 |           | $  | 1,441,799 |
The accompanying notes are an integral part of these consolidated financial statements. 

|    |                                        |    |
|---:|:---------------------------------------|---:|
|  1 | Goldman Sachs September 2023 Form 10-Q |  2 |



Question: How was Goldman Sachs' Return on Equity (ROE) for the nine months ending in September 2023?
Answer: The Return on Equity (ROE) for Goldman Sachs for the nine months ended September 2023 is calculated as follows:
ROE = (Net Income / Shareholder's Equity) * 100
Net Income (2023) = $6,508 million
Shareholder's Equity (2023) = $117,277 million
ROE = (6,508 / 117,277) * 100 = 5.55%