• Firm net revenues up 16% and net income up 25%, reflecting strength across all business segments.

• The Firm delivered ROTCE of 15.0%.4

• Our balance sheet, capital and liquidity remain strong and the Firm is well positioned to continue to invest in our businesses and serve our clients.

• Common Equity Tier 1 capital standardized ratio of 17.3%.5

• Institutional Securities net revenues reflect strong performance across all businesses with higher results in sales and trading and strength in equity underwriting.

• Wealth Management delivered pre-tax income of $1.1 billion6 with a reported pre-tax margin of 24.0%7 (or 25.3%7 excluding the impact of a regulatory charge in the third quarter). Results reflect strong fee-based flows and significant increases in bank lending and deposits.

• Investment Management net revenues increased by 38% driven by record asset management fees and AUM.

• Advisory revenues decreased from a year ago due to lower completed M&A activity and fewer large transactions.

• Equity underwriting revenues increased significantly from a year ago on higher revenues from IPOs, follow-on offerings and blocks as clients continued to access capital markets.

• Fixed income underwriting revenues decreased from a year ago due to declines in loan issuances as large event-driven and M&A financings were muted.

• Equity sales and trading net revenues increased from a year ago reflecting strong performance across products on continued client engagement, with notable strength in Asia.

• Fixed Income sales and trading net revenues increased from a year ago driven by strong performance across businesses and geographies with particular strength in credit products benefitting from an active primary market.

• Other sales and trading net revenues decreased from a year ago due to losses on economic hedges associated with certain of the Firm’s borrowings and corporate lending activity, partially offset by gains on investments associated with certain employee deferred compensation plans (DCP).

Investments and Other:

• Investments revenues in the current quarter include gains on certain business-related investments compared with losses in the prior year quarter.
• Other revenues increased from a year ago primarily due to gains on loans held for sale related to corporate lending activity as credit spreads tightened in the quarter, partially offset by an increase in the provision for credit losses for loans held for investment.

Total Expenses:

• Compensation expenses increased from a year ago on higher revenues.

• Non-compensation expenses increased from a year ago driven by higher volume related expenses and an increase in the provision for credit losses for unfunded lending commitments, partially offset by lower spending on business travel and entertainment.

• Asset management revenues increased from a year ago reflecting higher asset levels and strong fee-based flows.

• Transactional revenues15 increased 5% excluding the impact of mark-to-market gains on investments associated with employee deferred cash-based compensation plans, on seasonally strong third quarter results.

• Net interest income decreased from a year ago reflecting the impact of lower average rates and higher mortgage securities prepayment amortization expense, partially offset by growth in bank lending and increases in bank deposits.

Total Expenses:

• Compensation expense increased from a year ago primarily driven by increases in the fair value of deferred cash-based compensation plan referenced investments and increases in compensable revenues.

• Non-compensation expenses increased from a year ago primarily due to a $60 million regulatory charge in the third quarter and expenses associated with the acquisition of E*TRADE, partially offset by lower spending on business travel and entertainment.

• Asset management revenues increased 20% from a year ago driven by record AUM on strong investment performance and positive long-term net flows.

• Investments revenues increased significantly from a year ago on higher accrued carried interest and investment gains primarily in Asia private equity.

Total Expenses:

• Compensation expense increased from a year ago on higher asset management revenues and an increase in carried interest.

• Non-compensation expenses increased from a year ago driven by higher brokerage and clearing costs.

• The Board of Directors declared a $0.35 quarterly dividend per share, payable on November 13, 2020 to common shareholders of record on October 30, 2020.

• On September 30, 2020, the Federal Reserve extended its requirement to suspend share repurchases through the end of the fourth quarter of 2020.

• The effective tax rate for the quarter was 21.1%. The current quarter includes intermittent net discrete tax benefits of $113 million, primarily associated with the remeasurement of reserves and related interest in connection with closures of audits in certain tax jurisdictions.

• The Firm’s provision for credit losses on loans and lending commitments was $111 million for the third quarter of 2020, compared with $51 million for the third quarter of 2019 and $239 million for the second quarter of 2020. The allowance for credit losses on loans and lending commitments was $1.3 billion as of September 30, 2020, an increase of approximately 8% over the previous quarter.