narrative.md

Published August 13, 2026

# The Goldman Sachs Group, Inc. (NYSE: GS) — Business, Risks and Management's Discussion

Sources: Goldman Sachs' Annual Report on Form 10-K for the year ended December 31, 2025 (filed February 25, 2026, SEC accession 0000886982-26-000091) and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 (filed August 3, 2026, SEC accession 0000886982-26-000297), supplemented by Current Reports on Form 8-K filed in June, July and August 2026.

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## Business

*From the FY2025 Form 10-K, accession 0000886982-26-000091.*

The Goldman Sachs Group, Inc. ("Group Inc.") is a Delaware corporation founded in 1869, headquartered in New York with offices in all major financial centers. It is a leading global financial institution serving corporations, financial institutions, governments and individuals. Group Inc. is a **bank holding company (BHC) and a financial holding company (FHC)** regulated by the Federal Reserve Board (FRB); its U.S. depository institution subsidiary, **Goldman Sachs Bank USA (GS Bank USA)**, is a New York State-chartered bank. Goldman Sachs has been designated a **global systemically important bank (G-SIB)**.

At December 2025 headcount was **47,400**, with offices in over 35 countries — 50% of headcount in the Americas, 20% in EMEA and 30% in Asia. Employees come from over 190 countries and speak more than 175 languages. Key strategic locations are Bengaluru, Salt Lake City, Dallas, Singapore, Warsaw, Birmingham and Hyderabad; **45% of employees worked in strategic locations** at year end. Average tenure was roughly 23 years for the Management Committee and about 6 years firmwide; nearly 45% of partners were campus hires. Global Investment Research covered roughly 3,000 companies and about 50 national economies.

### Segment structure

Goldman Sachs manages and reports in **three business segments: Global Banking & Markets, Asset & Wealth Management and Platform Solutions.**

**Beginning with the fourth quarter of 2025 the firm re-cut its segments** as it continued narrowing its consumer focus within Platform Solutions:
- Transaction banking moved from Platform Solutions into Global Banking & Markets (reported in Other).
- Within Global Banking & Markets, facilitating institutional primary loans for syndication and providing structured letters of credit to corporate clients moved from Other into **FICC financing**.
- Urban Investment Group results (Community Reinvestment Act–related investing) are now allocated across all three segments rather than sitting in Asset & Wealth Management.
- Within Asset & Wealth Management, Equity Investments and Debt Investments are now reported in aggregate as "Investments," reflecting the transition from balance-sheet direct investing to a scaled third-party funds business.

Prior periods have been recast.

**Global Banking & Markets** — the firm's advisory, underwriting and market-making engine. Revenue lines:
- **Investment banking fees** — *Advisory* (M&A, divestitures, corporate defense, restructurings, spin-offs) and *Underwriting* (equity underwriting: common and preferred stock, convertibles and exchangeables; debt underwriting: investment-grade and high-yield debt, bank and bridge loans including acquisition financing, emerging-market debt, mortgage-related and other asset-backed securitizations).
- **FICC** — *FICC intermediation* (market making in interest rate products, credit products, mortgages, currencies and commodities, in both cash and derivative form; commodities include crude and petroleum products, natural gas, agricultural, base and precious metals, electricity including renewable power, and environmental products) and *FICC financing* (structured mortgage and other asset-backed lending, resale agreements, commodity financing, primary loan syndication facilitation and structured letters of credit).
- **Equities** — *Equities intermediation* (market making in ETFs, convertibles, options, futures and OTC derivatives; exchange-based market making; commissions and fees from executing and clearing on exchanges and OTC) and *Equities financing* (prime financing/margin lending, securities lending and borrowing, swaps giving clients exposure to securities and indices, portfolio financing and securities-based loans to individuals).
- **Other** — relationship lending and acquisition financing to corporate clients and related hedges, **transaction banking** (deposit taking, payments and cash management for corporate and institutional clients, including net interest income on transaction banking deposits), and investing activities tied to Global Banking & Markets.

Client connectivity runs largely through technology platforms, including **Marquee**, which gives institutional investors market intelligence, risk analytics, proprietary datasets and multi-asset trade execution.

**Asset & Wealth Management** — investment services across equity, fixed income and alternatives (hedge funds, credit, private equity, real estate, currencies, commodities, asset allocation), offered through separately managed accounts, mutual funds, ETFs, private partnerships and other commingled vehicles, using both proprietary and third-party managers. It also provides tailored wealth advisory primarily to ultra-high-net-worth clients, personalized financial planning, private banking (deposits and loans secured by real estate, securities or other assets) and consumer deposits through **Marcus by Goldman Sachs**. Revenue lines: **Management and other fees** (predominantly asset-based), **Incentive fees** (including overrides/carried interest from private equity and credit funds), **Private banking and lending** (net interest income on deposits and loans to individual clients) and **Investments** (public and private equity, debt securities and loans across corporate, real estate and infrastructure, including consolidated investment entities that are substantially all real estate).

**Platform Solutions** — substantially all revenues come from issuing credit cards to, and raising deposits from, **Apple Card** customers, plus exited businesses. **In December 2025 the firm agreed to transition the Apple Card program to another issuer**, a transition expected to take approximately 24 months from the agreement date. During 2025 the firm sold the **General Motors (GM) credit card program** to another issuer.

### Narrowing the consumer focus

The Apple Card and GM actions above are the last steps in a program that began in 2023. The earlier steps: sale of substantially all of the **Marcus loan portfolio** and sale of the **Personal Financial Management (PFM)** business (both 2023, in Asset & Wealth Management); sale of the majority of the **GreenSky** loan portfolio in 2023, with the GreenSky sale completed in 2024 (Platform Solutions); and sale of the **seller financing loan portfolio** — loans to small and medium-sized retailers — in 2024. The firm states these transactions have substantially completed the narrowing.

Pre-tax earnings impact of the items sold or announced for sale: **$214 million in 2025** (Apple Card program $284 million, GM credit card program $(67) million, seller financing $(3) million), versus **$(934) million in 2024** and **$(1,447) million in 2023**.

### Banking supervision, capital and liquidity regime

- **Risk-based capital.** As an Advanced approaches organization, Goldman Sachs and GS Bank USA calculate ratios under both the **Standardized and Advanced Capital Rules**. For Group Inc. the capital conservation buffer requirements consist of a 2.5% fixed buffer (Advanced), a **stress capital buffer (SCB)** set annually by the FRB's CCAR process (Standardized, 2.5% floor), plus a countercyclical buffer and the **G-SIB surcharge** under both rule sets. Failure to satisfy a buffer constrains capital distributions and discretionary executive compensation.
- **SCB timing.** In February 2026 the FRB announced that BHCs will continue to be subject to their current SCB requirements until they receive new requirements in 2027 calculated on models that take public feedback into account — so the buffer set from the 2025 CCAR cycle carries forward rather than being reset in 2026.
- **Leverage.** In November 2025 the FRB adopted a rule recalibrating the enhanced supplementary leverage ratio (eSLR) buffer for G-SIBs, replacing the 2% buffer with a buffer equal to **50% of the Method 1 G-SIB surcharge**, with conforming changes to TLAC and external long-term debt requirements, and replacing the 6% prompt-corrective-action "well capitalized" SLR threshold for G-SIB depository subsidiaries with a buffer of 50% of the parent's Method 1 surcharge capped at 1% on top of the 3% minimum. Effective April 1, 2026 with early adoption permitted — **Goldman early adopted on January 1, 2026.**
- **Liquidity.** Minimum **LCR of 100%** and minimum **NSFR of 100%** apply to both Group Inc. and GS Bank USA; the FRB's enhanced prudential standards impose a separate 30-day highly-liquid-asset requirement. Non-U.S. subsidiaries (GSBE in the E.U.; GSI and GSIB in the U.K.) run their own ILAAP/ICAAP processes.
- **International Basel implementation.** The E.U. adopted CRR III/CRD VI, including FRTB, revised credit risk rules, new standardized operational risk and CVA approaches, and a **72.5% output floor** phasing in from 2025 to 2030; FRTB is expected to apply from January 2027. In **January 2026 the PRA issued final U.K. rules effective January 1, 2027** covering FRTB, credit risk, counterparty credit risk, CVA, operational risk and securitization, with FRTB-IMA deferred to January 1, 2028; U.K. subsidiaries are not subject to an output floor. U.S. agencies proposed Basel III Revisions/FRTB in 2023 and have indicated a revised proposal is in progress.
- **Resolution planning.** The FRB and FDIC require U.S. G-SIBs to file resolution plans every two years. Goldman filed a full plan in June 2023; in June 2024 the agencies identified **one shortcoming** plus areas for additional focus. Goldman submitted a description of key remedial actions in August 2024 and a targeted plan in June 2025; the **next required submission is a full plan by July 1, 2027**. GS Bank USA's next FDIC IDI submission is due by July 1, 2026, with content equivalent to an interim supplement. The resolution strategy is a variant of **single point of entry**: Group Inc. and Goldman Sachs Funding LLC (Funding IHC) would recapitalize and provide liquidity to major subsidiaries, so that subsidiary creditors could be made whole while **Group Inc.'s security holders could face significant and possibly complete losses.** Group Inc. transferred substantially all of its GCLA and certain intercompany receivables to Funding IHC and put a Capital and Liquidity Support Agreement (CLSA) in place.
- **TLAC.** The FRB's TLAC rule sets minimum TLAC and eligible long-term debt requirements, prohibits Group Inc. from guaranteeing subsidiary liabilities with early-termination provisions, from incurring subsidiary-guaranteed liabilities, from issuing short-term third-party debt and from entering derivatives with external counterparties, and caps non-eligible pari passu/junior third-party liabilities at 5% of eligible TLAC. Internal TLAC/MREL requirements apply to GSBE (E.U.) and GSG UK/GSI (U.K.).
- **Activity restrictions.** The **Volcker Rule** bars proprietary trading, limits sponsorship of and investment in covered funds (each fund investment ≤3% of NAV; aggregate ≤3% of Tier 1 capital), and constrains transactions with sponsored/advised funds. FHC commodity activities are permitted so long as related assets stay below 5% of consolidated assets. U.S. G-SIBs are subject to single counterparty credit limits. New York State banking law imposes lending limits on GS Bank USA. GSBE faces German Volcker-type prohibitions; the E.U. has introduced restrictions on cross-border provision of "core" banking services with grandfathering for contracts in place before **July 11, 2026**.
- **CRA.** GS Bank USA ceased being assessed as a "wholesale bank" in 2023 and operates under a **strategic plan approved by the FRB and NYDFS in effect through 2028**; failure to maintain at least a "satisfactory" rating would restrict new activities and acquisitions.
- **Other regimes.** Broker-dealer and securities regulation (SEC, FINRA, and non-U.S. regulators for GSBE, GSPIC, GSI, GSJCL); swaps and derivatives regulation (CFTC and SEC registrations for GS&Co., GS Bank USA, GSBE, GSI, J. Aron and GSFM; FRB margin rules for GS Bank USA and GSBE; EMIR and MiFID II/MiFIR abroad); asset and wealth management regulation; CFPB consumer regulation; compensation rules (E.U. variable-to-fixed caps; U.K. PRA/FCA reforms adopted October 2025 shortening material-risk-taker deferrals to four years and requiring at least 50% of total variable pay in equity); BSA/USA PATRIOT Act/AMLA anti-money-laundering obligations; and privacy/cybersecurity rules including amended Regulation S-P (effective December 2025 for larger entities such as GS&Co.) and the CFPB personal financial data rights rule (compliance deadline for GS Bank USA of April 1, 2026, stayed by a court pending CFPB reconsideration).

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## Risk factors

*Condensed from the FY2025 Form 10-K, accession 0000886982-26-000091.*

Goldman Sachs organizes its risk factors into Market, Liquidity, Credit, Operational, Legal and Regulatory, Competition, and Market Developments and General Business Environment.

### Market

- **Global market and economic conditions.** Many of Goldman's businesses do not produce predictable earnings and all are materially affected by market and economic conditions, which "can change suddenly and negatively." Named drivers of an unfavorable environment: low or declining growth and confidence, recession concerns, pandemics, illiquid markets, inflation and rate increases, FX and commodity volatility, rising defaults, stagflation, sovereign default concerns, fiscal/monetary uncertainty, government shutdowns and debt ceilings, tax and regulatory change, limits on international trade and travel, immigration policy changes, political instability or violence, terrorism, cyberattack, and corporate or political scandals. The firm specifically cites the **April 2025 U.S. broad tariffs on imports from China and other trading partners and China's subsequent trade responses including rare-earth export measures**. A U.S. debt-ceiling default is called out as capable of producing unprecedented volatility and illiquidity, clearing and settlement disruption, margin disputes, U.S. rating downgrades and recession, and of impairing the repo, securities lending and collateralized financing markets.
- **Declining asset values.** Many businesses hold net "long" positions in debt, loans, derivatives, mortgages, equities (including private equity and real estate). Substantially all investing and market-making positions and a portion of loans are marked to market, so declines hit earnings immediately unless hedged; hedging may be impossible or uneconomic, particularly for credit products, **leveraged loans, private credit** and illiquid private equity. Exchange rules obligate the firm to maintain orderly markets, including buying securities into a declining market. Collateral declines force either higher funding cost or smaller positions; foreclosure on collateral has produced significant losses and claims of improper foreclosure.
- **Volatility.** Certain market-making activities need volatility to generate opportunity; decreases reduce client activity, while increases raise VaR and market RWAs and can force inventory reduction — cited example: **August 2024, when volatility spiked, activity levels were hurt, market RWAs rose and results were adversely affected on some days.**
- **Investor and CEO confidence.** A decline in the number of large transactions specifically hurts investment banking, because a significant portion of those revenues comes from participation in large deals; restrictions on cross-border issuance or delistings would hurt underwriting and client intermediation.
- **Asset and wealth management performance.** Poor investment returns affect the ability to retain and attract assets; continued client migration to lower-fee products (passive, fixed income) would further reduce the average effective management fee.
- **Inflation.** Has raised operating expenses and hurt consumer sentiment and CEO confidence; central bank responses lifted market rates, depressing debt underwriting and mortgage origination, lowering values of certain financial assets and forcing higher deposit rates. Further inflation could push interest expense up faster than interest income, compress net interest margin, shrink or reprice AUS downward, and prevent the firm from hitting its efficiency ratio target.

### Liquidity

- **Access to funding and asset sales.** "Most of the failures of financial institutions have occurred in large part due to insufficient liquidity." Impairment could come from loss of secured/unsecured market access, inability to raise or retain deposits, unusual deposit outflows, failure to allocate liquidity across entities, or the mere perception of elevated liquidity risk. Complex structured products often lack ready markets in stress; holdings can represent a significant share of specific markets. Clearinghouses and exchanges can exercise set-off or demand additional collateral in difficult conditions.
- **Credit market disruption.** Widening spreads and reduced credit availability raise funding costs and can force curtailment of investing, lending and market-making activity, and reduce client M&A volumes.
- **Ratings and credit spreads.** A downgrade could trigger contract termination rights and collateral posting. **As of December 2025, counterparties could have called for additional collateral or termination payments on net derivative liabilities under bilateral agreements of $224 million on a one-notch downgrade and $1.80 billion on a two-notch downgrade.**
- **Holding-company structure.** Group Inc. depends on dividends, distributions and loans from subsidiaries that are themselves subject to capital, liquidity, affiliate-transaction and local ring-fencing restrictions; Group Inc. also guarantees the payment obligations of GS&Co. and GS Bank USA (subject to exceptions) and many subsidiary obligations transaction by transaction, and may be required to serve as a source of strength.

### Credit

- **Counterparty deterioration and default.** Exposure to third parties that owe money, securities or assets; a failure of a significant market participant, or even concern about one, can cascade. The firm is also exposed to **special assessments under the FDIA or OLA** on the failure of a bank or non-bank financial institution — which has adversely affected results in the past.
- **Concentration.** Large commitments extended in credit origination can become unsellable when credit markets are disrupted. Regulatory reform has centralized trading through clearinghouses, agent banks and exchanges, "significantly increasing" concentration to those entities. The firm executes high transaction volumes with, and extends credit to, brokers and dealers, commercial banks, clearinghouses, exchanges, alternative asset managers and investment funds — producing significant credit concentration to financial-sector counterparties — and notes exposure to new and emerging industries **such as those related to AI**.
- **Derivatives.** Individually negotiated, non-standardized instruments are hard to exit or transfer; credit derivatives may require delivery of an underlying the firm does not hold; documentation, enforceability and netting risks; and as a signatory to the ISDA Protocols and subject to QFC stay rules, the firm may be unable to exercise remedies against counterparties — a regime that "has not yet been tested."

### Operational

- **Process and human failure.** The businesses depend on processing and monitoring a very large number of complex, high-frequency transactions across many markets and currencies, subject to client-specific guidelines and reporting rules. Named exposures: spikes in transaction volume, third-party service provider disruption, errors in software or model development, calculation and judgment errors, misaddressed emails, intentional circumvention of policies, misappropriation of funds and theft of proprietary information, and the intentional misuse of client information for insider trading. Allegations that underwriting or other business decisions do not treat clients or consumers fairly have produced regulatory scrutiny and enforcement.
- **Infrastructure and third-party concentration.** Consolidation among clearing agents, exchanges and clearinghouses raises exposure to any one intermediary; interconnectivity (including via APIs) means an operational failure at one institution can become industry-wide. Cloud reliance is growing — the firm cites the **July 2024 global IT outage caused by a faulty cybersecurity software update** and an **October 2025 cloud provider incident that affected many businesses worldwide, including Goldman Sachs**. Distributed ledger technology, cryptocurrencies, stablecoins and digital assets are described as nascent and potentially vulnerable.
- **Concentration of people and premises.** Most employees in primary locations work in close proximity; headquarters is in the New York metropolitan area with the largest employee concentration in two principal office buildings near the Hudson River waterfront, exposed to extreme weather, terrorism and other hostile events.
- **AI.** The firm and its vendors, clients and counterparties are developing and incorporating AI. Risks: a rapidly evolving and uncertain legal/regulatory environment; incorrect output; release of private, confidential or proprietary information; embedded bias; IP infringement; limited transparency into why models generate particular outputs, complicating documentation and explanation requirements; dependence on third-party models and their training data; and vendor/clearinghouse AI use. These risks "may be heightened" as AI is expanded through the **OneGS 3.0** initiative. Separately, bad actors' use of generative AI for fraud, fund misappropriation and cyberattack could cause losses and liquidity outflows.
- **Cybersecurity.** Goldman is "regularly the target of attempted cyber attacks, including denial-of-service attacks," faces a high volume of attacks as mobile, internet and cloud usage expands, and notes that AI may increase attack frequency and severity. Supply-chain attacks on software and IT service providers have been increasing. Quantum computing is named as a potential future defeat of encryption. Regulations require timely disclosure of material cybersecurity incidents that may not be resolved or fully investigated at the time of disclosure.
- **Risk management effectiveness.** Models embed assumptions about correlation; in stress, previously uncorrelated indicators become correlated (or vice versa), which "has caused us to incur significant losses" and is exacerbated when other participants use similar models. Model risk includes poor design, ineffective testing, flawed inputs and unpermitted access producing malicious changes. Illiquid market-making, origination and direct private equity/private credit positions cannot always be reduced. Remaining consumer offerings still require adapted risk monitoring.

### Legal and regulatory

- **Extensive and pervasive regulation.** As a G-SIB the firm faces intervention risk from law enforcement, regulators and tax authorities in every jurisdiction, with overlapping and divergent requirements. Consequences of challenge include fines, criminal charges, sanctions, prohibition from business activities, higher capital requirements and new or higher taxes. Day-to-day compliance consumes significant senior leadership and dedicated compliance headcount.
- **Capital rules and distributions.** The SCB has produced and may again produce higher and more volatile Standardized requirements; failure to comply could limit buybacks, dividends and discretionary compensation, and a required capital-plan resubmission would generally block distributions without prior FRB approval. **Business expansion, balance-sheet growth and greater reliance on short-term wholesale funding have increased and may further increase the G-SIB surcharge.** The FRB's July 2023 proposal would add granularity to surcharge buckets and use annual averages instead of period-end values, which could raise the surcharge.
- **Third-party misconduct and fiduciary creep.** Regulators and courts increasingly seek to hold financial institutions liable for clients' misconduct, to find "control person" liability for entities in which the firm or its funds invest but do not manage, and to establish fiduciary obligations where none had been thought to exist.
- **Conflicts of interest.** Given the breadth of businesses and client base, the firm regularly addresses situations where its services, investments or other interests conflict (or are perceived to conflict) with client interests, where one business holds material non-public information, and where the firm is both creditor and adviser.
- **Scrutiny and negative publicity.** The firm notes that rapid dissemination of negative information through social media is believed to have contributed to the **2023 collapse of Silicon Valley Bank**, and that Goldman "could also be subject to rapid deposit withdrawals or other outflows as a result of negative social media posts."
- **Civil and criminal liability.** Large settlements with governmental entities have become common and are used as templates, making probable-loss estimation difficult and producing disparities between reserves and actual outcomes. **Claims of collusion and anti-competitive conduct have become more common**, with joint and several liability and treble damages under antitrust law. FCPA and U.K. Bribery Act exposure is explicit. Employee misconduct — "as reflected by the settlements relating to 1MDB" — cannot always be deterred or detected.
- **Resolution regimes.** Under **OLA**, the FDIC as receiver may disregard the strict priority of creditor claims, use an administrative rather than judicial claims process, transfer claims to a bridge entity and limit cross-default enforcement against affiliates; amounts owed to the U.S. government generally receive statutory priority over private creditors including senior creditors.
- **Commodities.** Physical commodity purchase, storage, transport and market making — crude, refined products, natural gas, LNG, electric power, agriculturals, base/precious metals, minerals including unenriched uranium, emission credits, coal and freight — subject the firm and the entities it finances to energy, environmental, antitrust and other law, with substantial compliance capital, permitting, emission fees and carbon taxes, plus catastrophic-event risk.

### Competition

- **Client base composition.** Goldman's client mix differs from peers': its market-making businesses have **a higher percentage of clients with actively managed assets** (disproportionately hurt by low volatility) and **a smaller corporate client base** than some peers, so competitors may benefit more from corporate-client activity. The firm has **not historically engaged in retail equities intermediation to the same extent** as other institutions, which has affected and could further affect equities execution market share.
- **Intense competition and pricing pressure.** Competition on execution, products, innovation, reputation, creditworthiness and price; consolidation and convergence in financial services has required capital commitment to international operations and large global transactions. In response to competitive pressure in investment banking and other assignments, the firm has "extended and priced credit at levels that, in some cases, have not fully compensated us for the risks we undertook."
- **Electronic trading and new technology.** Growth of alternative trading systems and direct electronic market access has reduced commissions and spreads and may create liability from clients' use of the firm's order routing and execution infrastructure. Distributed ledger products, **stablecoins** and digital assets may not require intermediation and could significantly disrupt payments processing and other financial services; regulatory limits on the firm's digital-asset involvement may not apply equally to competitors, and competitors may be more timely or successful in integrating AI to raise productivity, cut costs or improve execution.
- **Talent.** A significant portion of compensation is year-end discretionary pay, much of it deferred equity; declines in profitability or in the outlook, and regulatory limits on compensation levels and terms, hurt hiring and retention. Competition comes from within and outside financial services, notably **the technology industry**, and in emerging and growth markets from firms with a larger local presence. Operating expenses and the efficiency ratio depend in part on overall headcount and the proportion of employees in strategic locations, and the anticipated benefits may not be realized.

### Market developments and general business environment

- **Catastrophic events** — pandemics and other widespread health emergencies, terrorist attacks, wars, extreme weather and natural disasters.
- **Climate.** Physical and transition risks could disrupt operations at primary locations and impair client activity levels and creditworthiness. Divergent and extraterritorial regimes — including the E.U. **CSRD and CSDDD** — expand disclosure and impose stringent human-rights and environmental due diligence, subjecting the firm to conflicting requirements, higher compliance costs and potentially higher capital requirements; divergent stakeholder views mean either action or inaction on climate can be perceived negatively.
- **Geopolitical conflict.** The Russia–Ukraine conflict has increased sanctions and export-control compliance costs and contributed to materials shortages and higher transport, energy and raw-material costs. **The conflicts in the Middle East could also affect and harm the business and increase market uncertainty**, with escalation raising cyberattack risk. **U.S.–China tensions** could bring further sanctions, tariffs, export controls, FX measures, large-scale sale of U.S. Treasury securities or restrictions on cross-border trade, investment and technology transfer; a China–Taiwan conflict or concern about one could hit financial markets.
- **Reference rates.** Structured notes, warrants, swaps and security-based swaps that reference rates, currencies, indices, baskets or ETFs are exposed to changes in or discontinuation of those references.
- **New locations, clients and initiatives.** Expansion brings contact with counterparties outside the traditional base, new asset classes and integration challenges; consumer-oriented activities carry heightened compliance, reputational and operational risk, including from higher retention and transmission of consumer information and from identity fraud; transaction banking carries KYC, AML and sanctions risk.
- **Acquisitions.** The firm expects to continue selective acquisitions that may be individually or collectively material. It cites **Industry Ventures (acquired January 2026, to expand venture capital solutions)** and the **December 2025 agreement to acquire Innovator Capital Management (to expand ETF offerings)**, and points to the 2024 sale of GreenSky Holdings (with a write-down of intangibles and goodwill) and the 2025 transition of the GM credit card program (with a 2024 intangibles write-down) as examples of acquisition risk that has already materialized.

### Legal proceedings posture

The firm is involved in numerous judicial, regulatory and arbitration proceedings; many are in early stages and many seek indeterminate damages. Management believes matters for which it cannot estimate a range will not, in the aggregate, materially affect financial condition, but may be material to operating results in a given period, and states that **litigation expenses may remain high**. As of the FY2025 Form 10-K, the estimated **upper end of the range of reasonably possible aggregate loss was approximately $1.4 billion in excess of aggregate reserves**.

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## Management's discussion and analysis — full year 2025

*From the FY2025 Form 10-K, accession 0000886982-26-000091.*

### Headline results

**Net earnings of $17.18 billion** (2024: $14.28 billion); **net earnings to common $16.30 billion**; **diluted EPS $51.32** (2024: $40.54). **ROE 15.0%** (2024: 12.7%) and **ROTE 16.0%** (2024: 13.5%), against a through-the-cycle target of **ROE 14%–16% and ROTE 15%–17%**. Book value per common share **$357.60**, up 6.2%; tangible book value per common share $335.49. Dividend payout ratio 27.3%.

**Net revenues $58.28 billion, up 9%**, driven by Global Banking & Markets and offset by a collapse in Platform Solutions revenue. By line item: investment banking $9.35 billion (+21%, on significantly higher advisory as completed M&A volumes rose sharply, plus higher debt and equity underwriting); investment management $11.75 billion (+11% on higher average AUS); commissions and fees $4.04 billion (essentially flat — higher Equities commissions offset by a revenue reduction from Apple Card contract termination obligations); market making $17.99 billion (−2%, with significantly lower mortgages and currencies offsetting significantly higher equity products and commodities, and lower FICC financing offsetting higher equities financing); other principal transactions $1.59 billion (−66%, primarily from Apple Card portfolio markdowns and significantly lower net gains on private equity and funding-related derivatives); and **net interest income $13.56 billion, up 68%**, as interest expense fell $6.5 billion on lower average rates for other interest-bearing liabilities, deposits and borrowings.

**Provision for credit losses was a net benefit of $1.11 billion** (2024: net provisions of $1.35 billion), reflecting a net release on the Apple Card portfolio including a **$2.48 billion reserve reduction** on transfer to held for sale, partly offset by net charge-offs.

**Operating expenses $37.54 billion, up 11%**, on higher compensation and benefits (improved operating performance) and higher transaction based expenses. **Efficiency ratio 64.4%** (2024: 63.1%). Net litigation and regulatory provisions were $215 million (2024: $166 million); the FDIC special assessment produced a **$75 million reduction** in 2025 versus $71 million of expense in 2024. Severance expense was approximately **$250 million**. Headcount rose 2% to 47,400. **In the fourth quarter of 2025 the firm announced OneGS 3.0**, a multi-year initiative to transform the operating model, expected to drive expense efficiencies and create capacity for growth.

**Effective tax rate 21.4%** (2024: 22.4%), helped by employee share-based award settlements worth approximately **$620 million**, which cut the rate by 2.8 points, added $1.95 to diluted EPS and 0.5 points to annualized ROE. The **One Big Beautiful Bill Act (OBBBA)**, signed July 2025, is expected to reduce net U.S. tax on international earnings beginning in 2026; the firm expects a **2026 annual effective tax rate of approximately 20%**. OECD Pillar II had no material 2025 impact, and January 2026 administrative guidance allows U.S.-parented multinationals to elect a side-by-side safe harbor for tax years beginning on or after January 1, 2026. No benefit has yet been recognized from the August 2024 U.S. Tax Court *Varian Medical Systems* decision, which could be a material income tax benefit on the 2018 deemed repatriation tax.

### Segment results, 2025 vs. 2024 vs. 2023 ($ in millions)

| | 2025 | 2024 | 2023 |
|---|---|---|---|
| **Global Banking & Markets** net revenues | 41,453 | 35,067 | 29,994 |
| Provision for credit losses | 378 | 84 | 430 |
| Operating expenses | 23,501 | 20,454 | 18,564 |
| Pre-tax earnings | 17,574 | 14,529 | 11,000 |
| Return on average common equity | 16.4% | 13.8% | 11.3% |
| **Asset & Wealth Management** net revenues | 16,679 | 16,316 | 14,202 |
| Provision for credit losses | (111) | (280) | (539) |
| Operating expenses | 12,663 | 11,731 | 12,978 |
| Pre-tax earnings | 4,127 | 4,865 | 1,763 |
| Return on average common equity | 12.5% | 14.6% | 4.5% |
| **Platform Solutions** net revenues | 151 | 2,129 | 2,058 |
| Provision for credit losses | (1,380) | 1,544 | 1,137 |
| Operating expenses | 1,380 | 1,582 | 2,945 |
| Pre-tax earnings/(loss) | 151 | (997) | (2,024) |
| **Firmwide** net revenues | 58,283 | 53,512 | 46,254 |
| Firmwide pre-tax earnings | 21,852 | 18,397 | 10,739 |

**Global Banking & Markets** — net revenues **$41.45 billion, up 18%**. Investment banking fees **$9.34 billion (+21%)** on significantly higher Advisory (a significant increase in completed M&A volumes), higher Debt underwriting (asset-backed and investment-grade) and higher Equity underwriting (IPOs and convertibles, partly offset by lower secondaries). **FICC $14.52 billion (+9%)**, with higher intermediation (significantly higher interest rate products; slightly higher currencies and commodities; lower mortgages and credit products) and higher FICC financing (mortgages and structured lending). **Equities $16.54 billion (+23%)**, driven by significantly higher Equities financing (prime and portfolio financing) and higher intermediation (derivatives). **Other $1.06 billion** versus $561 million, mainly higher relationship lending. Provisions $378 million (2024: $84 million) on wholesale impairments and portfolio growth. Operating expenses $23.50 billion (+15%). **The investment banking fees backlog increased significantly versus the end of 2024**, mainly on higher estimated revenues from potential advisory and, to a lesser extent, debt underwriting transactions.

**Asset & Wealth Management** — net revenues **$16.68 billion, up 2%**: higher Management and other fees (higher average AUS), higher Private banking and lending (interest received on a previously impaired loan and better lending net interest margin) and higher Incentive fees, largely offset by significantly lower Investments revenue (significantly lower private-equity net gains and lower net interest income from debt investments as the balance sheet shrank). Operating expenses $12.66 billion (+8%); pre-tax earnings $4.13 billion, **down 15%**; pre-tax margin 25%; ROE 12.5%. The net impact of historical principal investments and related attributed equity, plus the FDIC special assessment, reduced segment ROE by approximately **2.3 percentage points**.

Segment strategy items disclosed in the 10-K: a **September 2025 strategic collaboration with T. Rowe Price** covering diversified public and private market solutions for retirement and wealth markets, under which Goldman agreed to **invest up to $1 billion in T. Rowe Price common stock**; the **October 2025 agreement to acquire Industry Ventures for $665 million plus contingent consideration of up to $300 million** payable in cash and equity through 2030 (closed January 2026); and the **December 2025 agreement to acquire Innovator Capital Management for approximately $2.0 billion in cash and equity**, subject to performance targets through 2030, then expected to close in the second quarter of 2026.

Asset & Wealth Management metrics: **total AUS $3.606 trillion at December 2025** (2024: $3.137 trillion), up $469 billion on market appreciation and net inflows across all asset classes; total long-term AUS $2.705 trillion; alternative investments AUS $420 billion; liquidity products $901 billion. Total wealth management client assets (AUS, brokerage and Marcus deposits) approximately **$1.9 trillion** (2024: $1.6 trillion). Management and other fees from alternatives were **$2.37 billion**. Total alternative assets $492 billion (AUS $309 billion plus non-fee-earning $183 billion), including **$70 billion of uncalled capital**. The firm raised **$115 billion of third-party alternatives commitments in 2025** ($48 billion corporate equity, $34 billion credit, $8 billion real estate, $25 billion hedge funds and other) and $438 billion cumulatively since 2019, against a standing target of raising **$75–100 billion annually**. Estimated unrecognized incentive fees were **$5.24 billion**. Balance-sheet alternative investments totalled $26.9 billion, of which **historical principal investments (the portfolio the firm plans to reduce) were $6.0 billion**, down from $9.4 billion, with $2.8 billion of attributed equity.

Announced Asset & Wealth Management targets: medium-term (three-to-five years from year-end 2025) **ROE in the high teens (approximately 17%–19%) and pre-tax margin of approximately 30%**; **total alternative AUS of $750 billion by the end of 2030**; **total credit alternative assets of $300 billion by the end of 2028**; annual long-term fee-based net inflows from the wealth management channel of approximately **5% of that channel's long-term AUS**; and an annual **double-digit percentage growth rate for Management and other fees from alternatives**.

**Platform Solutions** — net revenues collapsed to **$151 million** from $2.13 billion, reflecting a **$2.26 billion reduction** from markdowns on the outstanding credit card portfolio related to the Apple Card transfer to held for sale and contract termination obligations — more than offset by the related reserve reduction described above. Operating expenses $1.38 billion (−13%). Pre-tax earnings $151 million versus a $997 million loss.

### Balance sheet, funding and capital

**Total assets $1.81 trillion at December 2025**, up $133.35 billion, driven by trading assets +$86.24 billion, customer and other receivables +$52.13 billion, loans +$41.53 billion and investments +$9.75 billion, offset by collateralized agreements −$40.49 billion and cash −$17.83 billion. **Total liabilities $1.68 trillion**, up $130.37 billion, with deposits +$68.41 billion, trading liabilities +$60.00 billion and borrowings +$43.62 billion, offset by collateralized financings −$53.54 billion.

**Funding sources:** deposits $501.42 billion (39%), collateralized financings $305.05 billion (24%), unsecured short-term borrowings $70.46 billion (5%), unsecured long-term borrowings $285.50 billion (22%) and shareholders' equity $124.97 billion (10%). Deposits insured by the FDIC were **$269.63 billion** and by non-U.S. programs $31.70 billion. Weighted average maturity of unsecured long-term borrowings was approximately six years.

**Capital.** CET1 capital **$104.30 billion**; RWAs $727.34 billion Standardized and $691.47 billion Advanced; **CET1 ratio 14.3% Standardized and 15.1% Advanced** (December 2024: 15.0% and 15.3%), against total requirements of 10.9% and 10.0%. Tier 1 leverage ratio 6.6%; **SLR 5.2%** against a 5.0% requirement. **G-SIB surcharge (Method 2) was 3.0% for 2025 and 3.5% for 2026**; on 2025 financial data the firm sits in the **4.0% threshold range**, which could take effect no earlier than January 2028. The **SCB is 3.4%**, effective October 1, 2025 and, absent further FRB action, through September 30, 2027 (reduced from 6.2%/6.1% under the prior cycle). Standardized Credit RWAs rose $51.11 billion in 2025, mainly on commitments, guarantees and loans. TLAC to RWAs was 41.3% against a 22.0% requirement; external long-term debt to RWAs 23.4% against 9.0%.

The Board authorized a **$40 billion share repurchase program in 2025** with no expiration. During 2025 the firm returned **$16.78 billion to common shareholders — $12.36 billion of repurchases and $4.42 billion of dividends** — and the Board approved an increase in the quarterly dividend from **$4.00 to $4.50 per share** beginning in the first quarter of 2026. The stated capital philosophy is to prioritize deploying capital for clients where returns are attractive and distribute excess capital, **targeting a 50–100 basis point buffer above the capital requirement**.

### Liquidity and risk metrics

**GCLA averaged $479.40 billion in the fourth quarter of 2025** and $465.91 billion for the year (2024: $422.09 billion and $429.18 billion), held in overnight cash deposits, U.S. government and agency obligations and German, French, Japanese and U.K. government obligations, split $74.25 billion at Group Inc./Funding IHC, $134.70 billion at major broker-dealer subsidiaries and $270.45 billion at major bank subsidiaries. Other unencumbered assets averaged $343.36 billion in the fourth quarter. **Average daily LCR 123%** in the fourth quarter (September 2025: 128%; December 2024: 126%), with eligible HQLA of $396.79 billion against net cash outflows of $322.79 billion. **Average daily NSFR 116%.**

**Market risk.** Average daily VaR **$90 million** for 2025 (2024: $92 million), on lower volatility; period-end VaR **$79 million** versus $91 million. Positional losses on a single day exceeded the 99% one-day regulatory VaR on **three occasions in 2025** (two in 2024). The firmwide VaR risk limit was not exceeded, raised or reduced during 2025. Of 251 trading days, 81 produced daily net revenues above $100 million and 15 produced net revenue losses (largest loss bucket $(75)–$(50) million, one day).

**Credit risk.** Loans and lending commitments totalled **$563.06 billion** at December 2025 (2024: $484.31 billion): corporate $219.37 billion (70% of loans rated BB or lower), commercial real estate $44.59 billion (67% investment grade; concentrations of 51% warehouse and other indirect, 13% multifamily), residential real estate $35.13 billion, securities-based $18.86 billion, other collateralized $150.34 billion (including $34.28 billion to clients who warehouse assets), credit cards $90.57 billion and other $4.20 billion. Allowance for loan losses was $2.88 billion, down from $5.34 billion after the Apple Card transfer. Net credit exposure from OTC derivatives was $10.01 billion, from securities financing transactions $47.39 billion and from other credit exposures $42.53 billion. Credit exposure to OTC derivative counterparties that defaulted during 2025 remained **below 2% of total OTC derivative credit exposure**. Total market exposure to Ukrainian issuers was $123 million; Russian credit and market exposures were not material.

### Business environment

During 2025 the global economy grew, including in the U.S., with activity resilient despite continued inflationary pressure, geopolitical concerns and uncertainty from changes in international trade policy including tariffs — which contributed to periods of volatility and recession concern. Markets focused on the timing and size of policy rate cuts, including **three Federal Reserve cuts in the second half of the year**. Global equity prices ended generally higher, with some indices at record highs; the **S&P 500 rose 16% and the MSCI World Index rose 21%**, while the yield on 10-year U.S. government bonds decreased.

---

## Current quarter — second quarter and first half of 2026

*From the Form 10-Q for the quarter ended June 30, 2026, accession 0000886982-26-000297.*

### Results

**Second quarter net earnings $6.63 billion** versus $3.72 billion a year earlier; **diluted EPS $20.98** versus $10.91; **annualized ROE 23.5%** versus 12.8%. **Book value per common share $367.67**, up 1.8% versus March 2026 and 2.8% versus December 2025; tangible book value per common share $336.61.

**Net revenues $20.34 billion, up 39%.** By line item: investment banking $3.40 billion (+55%, on significantly higher equity underwriting from secondary and initial public offerings and debt underwriting from leveraged finance and asset-backed activity, plus higher advisory); investment management $3.38 billion (+19% on higher average AUS); commissions and fees $1.53 billion (+27% on Equities volumes); **market making $7.64 billion (+61%)**, with significantly higher equity products, commodities and interest rate products offsetting significantly lower currencies and mortgages, and significantly higher equities financing; other principal transactions $444 million (−14%, on Apple Card markdowns and lower relationship lending, partly offset by significantly higher private-equity gains); and **net interest income $3.95 billion (+27%)**, where higher average balances of other interest-earning assets, investments and trading assets lifted interest income by more than the increase in interest expense on deposits, other interest-bearing liabilities and collateralized financings, with lower average rates on loans working the other way.

**Provision for credit losses $102 million** versus $384 million, mainly wholesale loan impairments. **Operating expenses $11.67 billion, up 26%**, on significantly higher compensation and benefits and transaction based expenses; **efficiency ratio 57.4%** versus 63.4%. Net litigation and regulatory provisions were **$(28) million** in the quarter. Headcount at period end **46,200**, essentially unchanged year over year, down 2% versus March 2026 and down 3% versus December 2025. **OneGS 3.0**, the operating-model program announced in the fourth quarter of 2025, is still listed among the firm's expense-savings initiatives, but the quarterly report attaches no savings target to it and does not attribute either the quarter's expense growth or the lower headcount to it.

**First half 2026:** net earnings **$12.26 billion** (2025: $8.46 billion); diluted EPS **$38.51** (2025: $25.07); annualized ROE **21.7%** (2025: 14.8%); net revenues **$37.57 billion, up 27%**; provisions $417 million versus $671 million; operating expenses $22.10 billion, up 20%; efficiency ratio 58.8% versus 62.0%. The **ratio of compensation and benefits to net revenues net of provisions was 31.0%** for the first half, versus 32.0% for the first quarter and 33.0% a year earlier. The **first-half effective tax rate was 18.5%**, with employee share-based award benefits of approximately $965 million reducing the rate by 6.5 points, adding about $3.15 to diluted EPS and 1.7 points to annualized ROE; the firm still expects a **2026 annual effective tax rate of approximately 20%**. In May 2026 the New York State fiscal 2027 budget extended the temporary increase in the state corporate rate from 6.5% to 7.25% through calendar 2029, which is not expected to be material.

Capital returned in the second quarter totalled **$5.36 billion — $4.00 billion of repurchases (4.1 million shares at an average cost of $984.57) and $1.36 billion of dividends** — and $11.74 billion in the first half ($9.00 billion of repurchases at an average $949.67, and $2.74 billion of dividends).

### Segment results ($ in millions)

| | 2Q26 | 2Q25 | 1H26 | 1H25 |
|---|---|---|---|---|
| **Global Banking & Markets** net revenues | 15,520 | 10,133 | 28,258 | 20,874 |
| Provision for credit losses | 75 | 173 | 323 | 239 |
| Operating expenses | 7,946 | 5,885 | 14,955 | 11,809 |
| Pre-tax earnings | 7,499 | 4,075 | 12,980 | 8,826 |
| Return on average common equity | 27.5% | 14.4% | 25.0% | 16.9% |
| **Asset & Wealth Management** net revenues | 4,597 | 3,831 | 8,675 | 7,542 |
| Provision for credit losses | 27 | (96) | 93 | (78) |
| Operating expenses | 3,458 | 3,015 | 6,540 | 5,871 |
| Pre-tax earnings | 1,112 | 912 | 2,042 | 1,749 |
| Return on average common equity | 13.8% | 10.5% | 13.5% | 10.7% |
| **Platform Solutions** net revenues | 221 | 619 | 632 | 1,229 |
| Pre-tax earnings/(loss) | (48) | (29) | 27 | 30 |
| **Firmwide** net revenues | 20,338 | 14,583 | 37,565 | 29,645 |
| Firmwide pre-tax earnings | 8,563 | 4,958 | 15,049 | 10,605 |

**Global Banking & Markets — net revenues $15.52 billion, up 53%.** Within it: **Investment banking fees $3.40 billion (+55%)** — Advisory $1,378 million, Equity underwriting $985 million (versus $428 million), Debt underwriting $1,032 million. **FICC $4.59 billion (+32%)** — intermediation $3,376 million (significantly higher interest rate products and commodities, higher mortgages, slightly higher currencies, lower credit products) and financing $1,216 million. **Equities $7.42 billion, up 72%** — intermediation $4,157 million (significantly higher derivatives and cash products) and **financing $3,259 million versus $1,706 million**, driven by prime financing. Other $117 million versus $154 million, with lower relationship lending partly offset by higher transaction banking. Operating expenses $7.95 billion (+35%); pre-tax earnings $7.50 billion (+84%). Segment loans were **$187.77 billion at June 2026** (December 2025: $167.63 billion) with average gross loans of $191.26 billion in the quarter versus $149.41 billion a year earlier.

Transaction volumes (per Dealogic): **announced M&A $738 billion** in the quarter versus $266 billion; **completed M&A $452 billion** versus $294 billion; equity and equity-related offerings $35 billion versus $16 billion; debt offerings $123 billion versus $89 billion. **The investment banking fees backlog increased versus March 2026**, on higher estimated revenues from potential advisory transactions, partly offset by significantly lower estimated revenues from potential debt underwriting (primarily leveraged finance); versus December 2025 the backlog also increased.

**Asset & Wealth Management — net revenues $4.60 billion, up 20%.** Management and other fees **$3,355 million** (+20% on higher average AUS), Incentive fees $112 million, **Private banking and lending $689 million (down from $789 million)**, and **Investments $441 million versus $137 million** on significantly higher private-equity gains. Split by business: Asset management $1,985 million and Wealth management $2,612 million. Provisions were $27 million versus a $96 million net benefit. Operating expenses $3.46 billion (+15%); pre-tax earnings $1.11 billion (+22%); first-half pre-tax margin 24%. Fees from alternatives were **$725 million** in the quarter and $1.32 billion in the half.

AUS metrics: **total AUS $4.041 trillion at June 2026** versus $3.293 trillion a year earlier — alternative investments $459 billion, equity $1.123 trillion, fixed income $1.394 trillion (total long-term AUS $2.976 trillion) and liquidity products $1.065 trillion. AUS rose **$391 billion in the quarter** and $435 billion in the half. **Total long-term AUS net inflows were $91 billion in the quarter and $153 billion in the half** — the quarter including **$31 billion of equity inflows from the Innovator Capital Management acquisition**, partly offset by **$15 billion of fixed income and equity outflows from the disposition of Goldman Sachs TFI** (a fixed income and equity management operation whose supervised assets left AUS on completion of the sale; the quarterly report discloses neither a buyer nor a price), and the half also including **$5 billion of alternatives inflows from the Industry Ventures acquisition**. Total AUS net inflows were $230 billion in the quarter, including $139 billion into liquidity products. By channel, long-term net inflows in the quarter were institutional $16 billion, wealth management $19 billion and third-party distributed $56 billion. Total wealth management client assets were approximately **$2.0 trillion** (June 2025: $1.7 trillion). The **total average effective management fee was 30 bps** (June 2025: 31 bps). Total alternative assets reached **$706 billion** (AUS $459 billion plus non-fee-earning $247 billion), with **$108 billion of uncalled capital**; cumulative third-party alternatives commitments raised stood at **$523 billion**, of which approximately $115 billion sits in non-fee-earning assets and will begin earning fees when drawn and invested. Balance-sheet alternative investments were $25.9 billion.

**Alternatives fundraising.** The firm raised **$59 billion of third-party alternatives commitments in the second quarter of 2026** ($16 billion corporate equity, $31 billion credit, $3 billion real estate, $9 billion hedge funds and other), **$85 billion in the first half** and $523 billion cumulatively since 2019, and now **expects full-year 2026 fundraising to exceed $125 billion** — ahead of its standing $75–100 billion annual target.

**Platform Solutions — net revenues $221 million, down 64%**, on net markdowns related to the Apple Card loan portfolio (transferred to held for sale in the fourth quarter of 2025). Provisions were nil in the quarter (2Q25: $307 million). Operating expenses $269 million (−21%) on lower GM credit card program costs. Pre-tax loss $48 million. Segment loans $19.57 billion, substantially all credit cards.

### Acquisitions completed in the first half of 2026

- **Industry Ventures** (a venture capital platform) closed in the first quarter of 2026. Consideration: approximately **$360 million cash, equity with a fair value of approximately $315 million, and contingent consideration with a closing-date fair value of approximately $140 million** — up to approximately $105 million of cash and up to approximately 250,000 exchangeable instruments convertible into common shares, subject to performance targets through 2030. Preliminary allocation: goodwill approximately $655 million (deductible for tax), identifiable intangibles approximately $130 million, tangible assets approximately $30 million. Not material to results.
- **Innovator Capital Management, LLC** (an active ETF sponsor) closed in the second quarter of 2026. Consideration: approximately **$1.50 billion cash, equity with a fair value of approximately $400 million, and contingent consideration with a closing-date fair value of approximately $10 million** (up to approximately 63,000 common shares) subject to performance targets through 2030. Preliminary allocation: identifiable intangibles approximately **$1.07 billion**, goodwill approximately **$770 million** (deductible for tax), tangible assets approximately $70 million. On **April 1, 2026, Group Inc. issued 529,682 common shares with a fair value of approximately $400 million** to certain former Innovator members as partial consideration, unregistered in reliance on Section 4(a)(2).

Together these lifted Asset & Wealth Management goodwill from $1.46 billion to $2.85 billion in asset management, firmwide goodwill from $5.95 billion to $7.34 billion, and net identifiable intangibles from $842 million to $1.93 billion; approximately $1.20 billion of intangibles (substantially all customer lists, weighted average amortization period 17 years) were acquired in the half.

### Balance sheet at June 30, 2026 (vs. December 31, 2025)

**Total assets $2.13 trillion**, up **$318.39 billion**: trading assets +$132.29 billion, investments +$61.36 billion (mainly available-for-sale U.S. government obligations), customer and other receivables +$44.44 billion, collateralized agreements +$31.61 billion, loans +$23.15 billion and cash +$23.01 billion. **Total liabilities $2.00 trillion**, up $320.62 billion: unsecured borrowings +$81.92 billion (net issuances), customer and other payables +$68.19 billion, trading liabilities +$61.23 billion, **deposits +$56.53 billion** (increases across all sources, primarily consumer, transaction banking and other) and collateralized financings +$52.53 billion.

Segment assets: Global Banking & Markets $1.882 trillion (December 2025: $1.583 trillion), Asset & Wealth Management $215.73 billion, Platform Solutions $29.81 billion.

**Total shareholders' equity fell to $122.74 billion** from $124.97 billion, as preferred stock declined from $15.15 billion to $13.03 billion; common shareholders' equity was essentially flat at $109.71 billion. The **$2.125 billion decline in preferred stock is entirely redemptions** — Series Q ($500 million, 5.50% fixed-rate reset), Series R ($600 million, 4.95%) and Series S ($350 million, 4.40%) redeemed in the first quarter of 2026, and Series T ($675 million, 3.80%) redeemed in the second quarter, each at the $25,000 per-share redemption value plus declared and unpaid dividends. That total ties exactly to the "preferred stock redemption" line of $2.125 billion in the financing section of the cash flow statement; the redemption premiums (the excess of redemption value over net carrying value) were $3 million in the first quarter and $1 million in the second, both recorded as additions to preferred dividends. **There was no offsetting issuance within the period** — the $2.5 billion Series AA issuance came in July 2026, after the balance sheet date. **Leverage ratio 17.3x** (December 2025: 14.5x) and debt-to-equity ratio 2.8x (2.3x).

**Funding:** deposits **$557.96 billion** (38%), collateralized financings $357.57 billion (24%), unsecured short-term borrowings $89.91 billion (6%), unsecured long-term borrowings **$347.96 billion** (24%) and shareholders' equity $122.74 billion (8%). Deposits by source: consumer $227.69 billion, private bank $100.43 billion, transaction banking **$83.18 billion** (up from $69.76 billion), brokered CDs $52.00 billion, other $52.65 billion and deposit sweep programs $42.00 billion. **FDIC-insured deposits $300.35 billion.** The weighted average maturity of unsecured long-term borrowings lengthened to approximately **seven years**.

### Capital, liquidity and regulation

**CET1 capital $101.66 billion**; Standardized RWAs **$790.64 billion** and Advanced RWAs $747.37 billion. **CET1 ratio 12.9% Standardized and 13.6% Advanced**, down from 14.3% and 15.1%, against total requirements of **11.4% and 10.5%**. Tier 1 capital ratio 14.5%/15.3%; Total capital ratio 16.5%/17.1%. **Tier 1 leverage ratio 5.4%** (December 2025: 6.6%) and **SLR 4.3%** against a **3.75% requirement** (3% minimum plus a 0.75% buffer following the January 1, 2026 early adoption of the modified eSLR standards, versus 5.0% previously). Total leverage exposure rose to $2.646 trillion from $2.298 trillion.

Standardized Credit RWAs rose **$47.80 billion** in the half, mainly on commitments, guarantees and loans (+$25.89 billion) and other credit RWAs (+$14.75 billion); Market RWAs rose $15.50 billion, with regulatory VaR RWAs up $7.08 billion, incremental risk up $4.66 billion and stressed VaR up $4.41 billion.

**G-SIB surcharge (Method 2) is 3.5% for both 2026 and 2027; the firm expects 4.0% beginning in 2028, and on first-half 2026 data currently estimates it is within the 4.5% range** — which could take effect no earlier than January 2029, subject to the FRB's pending surcharge proposal. The 2026 CCAR capital plan was submitted in April 2026 and, consistent with the FRB's February 2026 announcement, the stress capital buffer determined from the 2025 CCAR results carries forward unchanged. Goldman published its annual DFAST summary in June 2026, as did GS Bank USA.

TLAC was **$333.04 billion (42.1% of RWAs** against a 22.0% requirement) and external long-term debt $203.39 billion (25.7% of RWAs against 9.5%). The Board's **$40 billion repurchase program had $23.0 billion of remaining authorization at June 30, 2026** ($26.35 billion at end-April; $24.40 billion at end-May).

**Regulatory proposals.** In **March 2026 the U.S. bank regulatory agencies issued new Basel III and G-SIB surcharge notices of proposed rulemaking.** The Basel III proposal would remove the Standardized and Advanced requirements and replace them with a single **Expanded Risk-Based Approach**, eliminating internal models for credit and operational risk RWAs, replacing the market risk framework with FRTB, improving credit-risk sensitivity and introducing new CVA and standardized operational risk calculations. The G-SIB proposal would recalibrate Method 2 coefficients, index them annually to nominal GDP growth, and use prior-four-quarter averages rather than a point-in-time calculation. **Goldman does not expect that these proposals, if both are adopted as proposed, would materially change its regulatory capital requirements.**

**Liquidity.** GCLA averaged **$555.01 billion** in the second quarter (first quarter: $494.19 billion) — $310.55 billion at major bank subsidiaries, $150.98 billion at major broker-dealers and $93.48 billion at Group Inc./Funding IHC. **Average daily LCR 126%** (first quarter: 123%), with eligible HQLA of $454.35 billion against net cash outflows of $359.60 billion; **average daily NSFR 117%**. Beginning in the second quarter of 2026, GSI and GSIB elected to meet minimum liquidity requirements as set by their respective regulators.

**Market risk.** **Average daily VaR $120 million** in the quarter, up from $112 million in the first quarter and $98 million a year earlier, on increased exposures and higher volatility; the six-month average was $116 million versus $94 million. Period-end VaR **$116 million** (March 2026: $137 million; June 2025: $111 million). Category detail at June 2026: interest rates $70 million, equity prices $69 million, commodity prices $24 million, currency rates $16 million, diversification effect $(63) million. There were **three regulatory VaR exceptions in the first half of 2026**, and **the firmwide VaR risk limit was exceeded on one occasion**, primarily from higher volatility driven by broad macroeconomic and geopolitical concerns; the limit was temporarily changed during the period and also permanently increased.

**Credit risk.** Loans and lending commitments totalled **$638.02 billion** at June 2026 (December 2025: $563.06 billion): corporate $260.43 billion, other collateralized $167.29 billion, credit cards $94.03 billion, commercial real estate $51.47 billion, residential real estate $39.54 billion, securities-based $20.03 billion and other $5.23 billion. Allowance for loan losses $2.96 billion. **Net credit exposure from OTC derivatives rose to $32.30 billion** from $24.98 billion on gross fair value of $353.96 billion less $321.66 billion of netting, with the largest industry concentrations in **Funds (33%)**, financial institutions (20%) and natural resources and utilities (16%), split 46% EMEA / 44% Americas / 10% Asia. Exposure to OTC derivative counterparties that defaulted in the half again remained **below 2% of total OTC derivative credit exposure**. Allowance commentary: the allowance decreased in the second quarter, principally from charge-offs and transfers of loans to held for sale, partly offset by portfolio growth and asset-specific provisions; second-quarter wholesale charge-offs related to **commercial real estate loans, principally term loans originated in 2021**.

### Business environment and management's stated uncertainties

The second-quarter environment was characterized by **resilient economic activity, particularly in the U.S., geopolitical concerns, a focus on investments related to artificial intelligence, and uncertainty in the outlook for inflation and international trade policies including tariffs**. The conflict in the Middle East persisted through the quarter and contributed to periods of volatility, but shifts in investor sentiment lifted global equity markets after a first-quarter decline — the **S&P 500 rose 15% and the MSCI World Index rose 14%** versus the end of the first quarter. The Federal Reserve held rates steady. Industry-wide completed M&A and debt underwriting volumes remained strong and equity underwriting volumes increased significantly versus the first quarter; market-making activity levels remained robust.

Management states that the economic outlook remains uncertain, reflecting concerns about **continuation or further escalation of the conflict in the Middle East, inflation, central bank policies and international trade policies (including tariffs)** — and that if these remain elevated or increase, asset prices, market-making activity levels or investment banking activity levels could decline, with net revenues and provisions for credit losses negatively impacted.

Under "Other Matters" the firm discloses that **the Iranian conflict that began in February 2026 has had significant implications for the global economy, including a disruption in the supply of oil and higher oil prices, more volatile equity prices, greater uncertainty regarding the direction of interest rates and heightened risk of recession.** Continuation or escalation could lift oil prices further and produce a surge in inflation, a global recession, stagflation and more heightened volatility across financial markets, with a negative impact on results.

### Legal proceedings

At June 30, 2026 the estimated **upper end of the range of reasonably possible aggregate loss was approximately $1.1 billion in excess of aggregate reserves** (December 2025: approximately $1.4 billion). Disclosed matters include: **1MDB-related matters** (subsidiaries arranged or purchased approximately $6.5 billion of 1MDB debt securities in 2012–2013; the August 2020 settlement with the Government of Malaysia guarantees Malaysia receives at least **$1.4 billion** in assets and proceeds from seized assets, with related arbitration; the October 2020 global settlements with the DOJ, SEC, FRB, NYDFS, FCA, PRA and Singapore and Hong Kong authorities, including a three-year deferred prosecution agreement whose FCPA conspiracy charge was dismissed on May 6, 2024; and a putative securities class action in the Southern District of New York); **mortgage-related matters** (repurchase claims by U.S. Bank as trustee for two RMBS trusts that issued $1.7 billion of securities); **currencies-related antitrust litigation**; **Banco Espirito Santo / Oak Finance** (an $835 million facility structured by GSI, with English and Portuguese proceedings against Novo Banco and the Bank of Portugal); **Silicon Valley Bank underwriting actions**; **variable rate demand obligations, interest rate swap and credit default swap antitrust litigation**; and a long list of **underwriting class actions** covering offerings including ContextLogic, DiDi Global, Zymergen, Rivian, Natera, Robinhood, ON24, Bright Health, MINISO, Coupang, Rent the Runway, FIGS, Venture Global, Ibotta, F45 Training, StubHub, Klarna, Navan, Firefly Aerospace and Via Transportation. Regulatory investigations and reviews span the securities offering and underwriting process, investment management and financial advisory services, conflicts of interest, research practices, government-related financings and municipal securities, consumer and residential mortgage lending and servicing, trading and clearance across asset classes, FCPA compliance, hiring and compensation practices, risk management and controls, and insider trading and information-barrier effectiveness.

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## Subsequent events

The Form 10-Q for the quarter ended June 30, 2026 (accession 0000886982-26-000297) does not contain a separate subsequent-events note; the post-period items below are disclosed within it and in Current Reports on Form 8-K.

- **Common dividend increased 11%.** On **July 13, 2026**, the Board of Directors increased the quarterly common stock dividend to **$5.00 per share from $4.50 per share**, payable **September 29, 2026 to common shareholders of record on September 1, 2026**. The firm had signalled the increase in its **June 24, 2026** statement on the Federal Reserve's 2026 CCAR results (accession 0001193125-26-281123), which described it as an 11% increase from then-current levels and a 25% increase relative to the prior year, and confirmed that Goldman's **stress capital buffer will remain 3.4% through September 30, 2027 and its Standardized CET1 ratio requirement will remain 11.4%**.
- **Preferred dividends declared.** On **July 7, 2026**, Group Inc. declared dividends of $294.44 per share of Series A, $294.44 per share of Series C, $289.39 per share of Series D, $456.25 per share of Series U, $937.50 per share of Series W and $856.25 per share of Series Z Preferred Stock, payable August 10, 2026 to holders of record July 26, 2026, and $1,198.44 per share of Series E and $1,199.08 per share of Series F Preferred Stock, payable September 1, 2026 to holders of record August 17, 2026. **Aggregate preferred dividends of approximately $175 million.**
- **Senior debt issuance of $10.0 billion.** On **July 21, 2026** (8-K accession 0001193125-26-310408) Group Inc. issued **$3.50 billion of 5.240% Fixed/Floating Rate Notes due 2032, $3.50 billion of 5.655% Fixed/Floating Rate Notes due 2037 and $3.00 billion of 6.215% Fixed/Floating Rate Notes due 2057** under its shelf registration statement.
- **New Series AA preferred stock — $2.5 billion.** On **July 20, 2026** (8-K accession 0001193125-26-308384) Goldman announced the launch of a public offering of depositary shares each representing a 1/25th interest in a new series of Fixed-Rate Reset Non-Cumulative Preferred Stock, Series AA, stating it intended to use a portion of the net proceeds to redeem the outstanding Series U Preferred Stock. On **July 23, 2026** the firm filed the Certificate of Designations for the **6.500% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series AA**, liquidation preference $25,000 per share (8-K accession 0001193125-26-318147). In July 2026 the firm issued **100,000 shares of Series AA Preferred Stock ($2.5 billion at the $25,000 per-share liquidation preference)**, each represented by 25 depositary shares, redeemable at the firm's option beginning August 10, 2031; dividends, if declared, are payable semi-annually at 6.500% per annum to but excluding August 10, 2031 and thereafter at the five-year treasury rate plus 2.175%.
- **Series U preferred stock redeemed — $750 million.** In July 2026 the firm announced it would redeem all outstanding shares of its **3.65% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series U, with a redemption value of $750 million ($25,000 per share)** plus declared and unpaid dividends. **All outstanding Series U shares were redeemed on August 10, 2026**, and on **August 11, 2026** Goldman filed a Certificate of Elimination removing the Series U designations from its Restated Certificate of Incorporation (8-K accession 0001193125-26-344912).
- **Buyback capacity carried forward.** Approximately **$23.0 billion remained available at June 30, 2026** under the $40 billion common share repurchase program authorized by the Board in 2025, which has no set expiration.
- **Second-quarter earnings release.** Results for the quarter ended June 30, 2026 were furnished on **July 14, 2026** (8-K accession 0000886982-26-000294).