Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Investor Day (February 2023)
118 slides from Goldman Sachs Group, Inc. (the)'s investor day presentation, Feb 28, 2023
Slide 1: Welcome
Exhibit 99.1 Welcome David Solomon Chairman and Chief Executive Officer February 2023
Slide 2: State of the Franchise
State of the Franchise John Waldron President and Chief Operating Officer February 2023
Slide 3: Our Client Franchise is the Foundation of Our Firm
INVESTOR DAY 2023 STATE OF THE FRANCHISE 1 Our Client Franchise is the Foundation of Our Firm One Goldman Sachs Trusted advisor We have been a trusted partner of the world's leading businesses, entrepreneurs, and institutions for more than 150 years Client-centric mindset Everything we do – our peop
Slide 4: Market-Leading Client Franchises
INVESTOR DAY 2023 STATE OF THE FRANCHISE 2 Market-Leading Client Franchises Global Banking & Markets Asset & Wealth Management Leading franchise World-class investment manager 1 3 #1 M&A Top 5 Global Active Asset Manager 1 3 #2 Equity Underwriting Top 5 Alternative Asset Manager 2 2 #1 Equities , #2
Slide 5: Client-Centric Strategy Driving Outperformance
INVESTOR DAY 2023 STATE OF THE FRANCHISE 3 Client-Centric Strategy Driving Outperformance Longer term operating focus Investing for growth Enhanced accountability Risk management culture Average net revenues ($bn) Book value per share growth (%) 1 Goldman Sachs Leading peer +43% $50.4 Growth 1-Year
Slide 6: Strong Progress Against Our Firmwide Goals
INVESTOR DAY 2023 STATE OF THE FRANCHISE 4 Strong Progress Against Our Firmwide Goals Investor Day 2020 targets Progress Through-the-cycle targets ~400bps 23.0% 3-year average impact of ROE litigation 10.2% 14.8% >13% 14-16% 11.1% 2020 2021 2022 ~400bps 24.3% impact of 1 ROTE litigation 11.0% 15.7%
Slide 7: Strong Progress Against Our Business Goals
INVESTOR DAY 2023 STATE OF THE FRANCHISE 5 Strong Progress Against Our Business Goals Expand Investment Banking footprint +3,000 Investment Banking clients covered since 2017, total client footprint of 12,000+ Global Banking 1 Increase client penetration Top 3 position with 77 of Top 100 largest FIC
Slide 8: Realignment to Deliver on Our Strategy and Unlock Shareholder Value
INVESTOR DAY 2023 STATE OF THE FRANCHISE 6 Realignment to Deliver on Our Strategy and Unlock Shareholder Value Global Banking & Markets Clear strategic rationale Driving industry-leading returns through highly synergistic businesses Bolster execution of strategy Asset & Wealth Management Strengthen
Slide 9: Global Banking & Markets: Premier Global Client Franchises at Scale
INVESTOR DAY 2023 STATE OF THE FRANCHISE 7 Global Banking & Markets Premier Global Client Franchises at Scale 1 2 #1 Global Investment Bank Top 2 Sales and Trading franchise built through decades of investment with deep and consistent global in people, clients, and culture scale across both FICC and
Slide 10: Global Banking & Markets Poised to Deliver More Durable Returns
INVESTOR DAY 2023 STATE OF THE FRANCHISE 8 Global Banking & Markets Poised to Deliver More Durable Returns Global Banking & Markets evolution Key drivers of increased returns Increased revenue / Strengthened client franchise wallet share gains 16.4% 1 Industry-leading ROE , +780bps since 2019 Busine
Slide 11: Asset & Wealth Management: Integrated, Client-Oriented Businesses at Scale
INVESTOR DAY 2023 STATE OF THE FRANCHISE 9 Asset & Wealth Management Integrated, Client-Oriented Businesses at Scale Scale Competitive advantages 5-year performance 1 Top 5 Global Active Asset Manager Goldman Sachs ecosystem Traditional $2.5tn AUS 3 77% Equity Client-centric and tailored 71% advice
Slide 12: Asset & Wealth Management: Continued Opportunities for Growth
INVESTOR DAY 2023 STATE OF THE FRANCHISE 10 Asset & Wealth Management Continued Opportunities for Growth Driving Higher Fees Firmwide Management and other fees ($bn) Progress on business targets Growth opportunities +13% CAGR $225bn $179bn $8.8 Wealth Management 1 $7.8 2020-2024 Gross $6.8 2020-2022
Slide 13: Platform Solutions: Innovative Platforms Delivering Solutions to Clients
INVESTOR DAY 2023 STATE OF THE FRANCHISE 11 Platform Solutions Innovative Platforms Delivering Solutions to Clients Transaction Banking Consumer Platforms Competitive advantages Premier brand Enterprise Partnerships Providing payment and liquidity solutions directly to corporates, Partnering with la
Slide 14: Executing Our Strategy
INVESTOR DAY 2023 STATE OF THE FRANCHISE 12 Executing Our Strategy Through-the-cycle targets Global Banking & Markets Maximize wallet share and grow financing activities 14-16% ROE Asset & Wealth Management Grow management fees Platform Solutions 15-17% Scale Platform Solutions 1 to deliver profitab
Slide 15: End Notes
INVESTOR DAY 2023 STATE OF THE FRANCHISE 13 End Notes These notes refer to the financial metrics and/or defined terms presented common shareholders’ equity: Slide 7: on: 1. Based on reported FY 2022 Investment Banking revenues. Peers Average for the Year Ended December include MS, JPM, BAC, C, BARC,
Slide 16: End Notes
INVESTOR DAY 2023 STATE OF THE FRANCHISE 14 End Notes These notes refer to the financial metrics and/or defined terms presented companies, cash management, and hedging, which may enhance investor on: returns. Estimated figures are subject to change as performance is finalized Slide 12: Slide 9 (cont
Slide 17: Cautionary Note on Forward Looking Statements
INVESTOR DAY 2023 STATE OF THE FRANCHISE 15 Cautionary Note on Forward Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, applicable to the firm and are subject to the risk that the firm’s actual escalate and expand, that sanctions may increase and that th
Slide 18: One Goldman Sachs
One Goldman Sachs Kim Posnett Global Head of Investment Banking Services and Co-Head of One Goldman Sachs February 2023
Slide 19: One Goldman Sachs
INVESTOR DAY 2023 ONE GOLDMAN SACHS 1 One Goldman Sachs A more integrated and Client comprehensive approach to centricity serving our global client franchise
Slide 20: Operationalizing One Goldman Sachs
INVESTOR DAY 2023 ONE GOLDMAN SACHS 2 Operationalizing One Goldman Sachs Our clients Our people Investment Banking FICC and Equities Identification Collaboration Technology One Goldman Infrastructure Sachs Asset Management Wealth Management Education Incentives
Slide 21: One Goldman Sachs Case Study: Sustainable Finance
INVESTOR DAY 2023 ONE GOLDMAN SACHS 3 Large global corporation One Goldman Sachs Case Study Sustainable Finance 1 Client priorities Our Sustainable Finance offerings One Goldman Sachs solutions Investment Banking FICC and Equities ESG • Equity Financing• Structured Products Led inaugural sustainabil
Slide 22: One Goldman Sachs Case Study: Delivering the Firm
INVESTOR DAY 2023 ONE GOLDMAN SACHS 4 Private US corporation One Goldman Sachs Case Study Delivering The Firm Businesses involved One Goldman Sachs solutions Wealth Management Referral to Investment Banking 1 Wealth Management Investment Banking “ 2 Sell-Side Mandate and Staple Financing We engaged
Slide 23: Measurable Commercial Impact
INVESTOR DAY 2023 ONE GOLDMAN SACHS 5 Measurable Commercial Impact “ Best people, best execution, best advice, and a 1 of clients view coverage as positive 94% collaborative culture that brings it all together. No other bank is close.” - Alternative Asset Manager Client 2 of clients work with 3+ bus
Slide 24: Unlocking the Power of One Goldman Sachs
INVESTOR DAY 2023 ONE GOLDMAN SACHS 6 Unlocking the Power of One Goldman Sachs Key priorities Maximize wallet share and grow financing activities One Grow management fees Goldman Sachs Scale Platform Solutions to deliver profitability
Slide 25: End Notes
INVESTOR DAY 2023 ONE GOLDMAN SACHS 7 End Notes These notes refer to the financial metrics and/or defined terms presented on: Slide 2: Note: One Goldman Sachs is subject to all existing firm policies and procedures. There is close coordination between the One Goldman Sachs teams and Compliance with
Slide 26: Cautionary Note on Forward Looking Statements
INVESTOR DAY 2023 ONE GOLDMAN SACHS 8 Cautionary Note on Forward Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, applicable to the firm and are subject to the risk that the firm’s actual escalate and expand, that sanctions may increase and that the actu
Slide 27: Asset & Wealth Management
Asset & Wealth Management Marc Nachmann Global Head of Asset & Wealth Management February 2023
Slide 28: Leading Asset and Wealth Management Platform
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 1 Leading Asset and Wealth Management Platform Delivering Durable Revenues and Earnings Growth 2 $3.0tn Firmwide investment platform Premier Ultra High Net Brokerage Worth franchise ~$310bn $2.5tn 5-year performance Liquidity Assets under ~$710bn Top 5 Alt
Slide 29: Delivering Strong Investment Performance and Client Experience
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 2 Delivering Strong Investment Performance and Client Experience The power of the Strong Client-centric Breadth and Goldman Sachs investment and and tailored depth across risk management ecosystem advice various culture dimensions
Slide 30: The Power of the Goldman Sachs Ecosystem
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 3 The Power of the Goldman Sachs Ecosystem Our ecosystem… …Provides unique advantages Differentiated investment sourcing opportunities Deep market insights and expertise Our Clients Individuals Sovereign Funds Strong risk management culture Advisors Public
Slide 31: Breadth and Depth Across Various Dimensions
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 4 Breadth and Depth Across Various Dimensions Traditional Alternatives 1 $2.3tn AUS $450bn Total Assets Hedge Funds, Liquidity Fixed Income Public Equity Multi-Strategy and Private Equity Private Credit Real Estate Advisory ~$1,010bn ~$120bn ~$50bn ~$710bn
Slide 32: Focusing on Three Organic Growth Initiatives
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 5 Focusing on Three Organic Growth Initiatives 1 2 3 Wealth Alternatives Solutions Management
Slide 33: Leading Wealth Manager Providing Comprehensive Advice
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 6 Leading Wealth Manager Providing Comprehensive Advice to Clients as Their Trusted Advisor Leading Wealth Management business Track record of growth since Investor Day 2020 Continue executing on growth Wealth Management and other fees ($bn) Broad client f
Slide 34: Strong Alternatives Investment Performance Driving AUS Growth
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 7 Strong Alternatives Investment Performance Driving Strong AUS Growth Select funds closed since Investor Day 2020 Cumulative Alternatives fundraising ($bn) Alternatives management and other fees ($bn) West Street Strategic Solutions I 1 (Private Credit) C
Slide 35: Differentiated Return Through Customized Solutions at Scale
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 8 Delivering Differentiated Return Through Customized Solutions at Scale Outsourced CIO (OCIO) Insurance solutions SMAs and Direct indexing ~$460bn #2 ~$260bn #1 ~$210bn #1 1 1 4 AUS US OCIO AUS Insurance SMAs AUS In SMAs 2 3 manager solutions provider
Slide 36: Growing Our Fee-Based Revenues
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 9 Growing Our Fee-Based Revenues Increasing Fee-Based Revenues Will Create More Durable Earnings as We Navigate Various Market Cycles Management and other fees ($bn) Fees +13% $8.8bn $10bn YoY growth +15% Management and other fees >$10.0 YoY growth 88% of
Slide 37: Growing Our Private Banking and Lending Business
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 10 Growing Our Private Banking and Lending Business Increasing Fee-Based Revenues Will Create More Durable Earnings as We Navigate Various Market Cycles Deposit growth and loan growth Private banking and lending net revenues ($bn) (excluding Marcus loans)
Slide 38: Optimizing On-Balance Sheet Alternative Investments
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 11 Optimizing On-Balance Sheet Alternative Investments On-balance sheet alternative investments ($bn) 1 Client co-invest Firmwide initiatives / community reinvestment act investments Historical principal investments $81 $59 $64 <$45 $30 $9bn of capital <$3
Slide 39: Attractive Financial Profile Through Organic Revenue Growth
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 12 Attractive Financial Profile Through Organic Revenue Growth and Margin Expansion Excluding Marcus 2022 1 2 loans and Historical Pro forma Medium-term targets Actual 1 principal investments Management and other fees $8.8bn -- $8.8bn High single digit ann
Slide 40: Committed to Deliver on Our Medium-Term Targets
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 13 Committed to Deliver on Our Medium-Term Targets High single digit % Mid teens Mid twenties organic durable ROE pre-tax margin revenue growth
Slide 41: End Notes
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 14 End Notes These notes refer to the financial metrics and/or defined term presented 2. Average tenure for Ultra High Net Worth clients within Private Wealth Slide 11: on: Management 1. Includes consolidated investment entities and other legacy 3. Ultra H
Slide 42: End Notes
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 15 End Notes Slide 12: Principal investments 1. Private banking and lending net revenues exclude net revenues from remaining Marcus loans. Equity investments and debt Investments net revenues Unaudited, $ in millions 2022 Actual portfolio Marcus loans Pro
Slide 43: Cautionary Note on Forward Looking Statements
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 16 Cautionary Note on Forward Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, applicable to the firm and are subject to the risk that the firm’s actual escalate and expand, that sanctions may increase and that
Slide 44: Asset & Wealth Management
Asset & Wealth Management Julian Salisbury Chief Investment Officer of Asset & Wealth Management February 2023
Slide 45: Global Presence Driving Unique Investment Opportunities
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 1 Global Presence Driving Unique Investment Opportunities Average partner tenure of ~20 years Americas ~1,100 Investment professionals 71% of AUS Investing since 1980s EMEA ~600 Investment professionals 21% of AUS Investing since 1990s APAC ~300 Investment
Slide 46: Differentiated Breadth of Investment Solutions
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 2 Differentiated Breadth of Investment Solutions Traditional Alternatives 1 $2.3tn AUS $450bn Total Assets Hedge Funds, Liquidity Fixed Income Public Equity Multi-Strategy and Private Equity Private Credit Real Estate Advisory ~$710bn ~$1,010bn ~$560bn ~$1
Slide 47: Track Record of Generating Strong Investment Returns: Traditional
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 3 Track Record of Generating Strong Investment Returns Traditional 1 Portion of Goldman Sachs Mutual Fund AUS performing in the top 50% of Morningstar Funds 3-Years 5-Years 10-Years 69% 51% 63% 93% 77% 64% 54% 84% 78% 73% 89% 60% Equity Fixed Quant- Multi-
Slide 48: Track Record of Generating Strong Investment Returns: Alternatives
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 4 Track Record of Generating Strong Investment Returns Alternatives 1 93% in top 50% of Cambridge funds 2,3 2,3 Corporate Equity Corporate Credit 8.6% 15.9% 6.4% 1.1% MSCI World + Net IRR S&P Leveraged Loan + Net IRR MSCI Infrastructure BAML US High Yield
Slide 49: Investing Culture Drives Flows and Management Fees
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 5 Our Differentiated Investing Culture Drives Flows and Management Fees Long-term (LT) organic net inflows over the last decade ($bn) (2013YE-2022YE) LT net flows LT net inflows as a % of prior year LT AUS $140 10% $130 $120 8% $100 6% $80 $55 $53 $60 $50
Slide 50: Investing Culture Drives Strong Alternative Fundraising
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 6 Our Differentiated Investing Culture Drives Strong Alternative Fundraising 1 Cumulative Alternatives gross fundraising ($bn) Cumulative Alternatives gross fundraising ($bn) (2019YE-2022YE) (2019YE-2022YE) 3-year fundraising as % of 2019YE fee-earning AUM
Slide 51: Your Performance, Our Priority
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 7 Your Performance, Our Priority
Slide 52: End Notes
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 8 End Notes These notes refer to the financial metrics and/or defined term presented 3. Benchmark performance calculated based on weighted timing of on: private strategy capital flows. Index transaction cost is assumed to equal the expense ratio of ETFs tr
Slide 53: Cautionary Note on Forward Looking Statements
INVESTOR DAY 2023 ASSET & WEALTH MANAGEMENT 9 Cautionary Note on Forward Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, applicable to the firm and are subject to the risk that the firm’s actual escalate and expand, that sanctions may increase and that
Slide 54: Platform Solutions
Platform Solutions Stephanie Cohen Global Head of Platform Solutions February 2023
Slide 55: Executive Summary
INVESTOR DAY 2023 PLATFORM SOLUTIONS 1 Executive Summary Primary drivers Key focus areas 1 Grow fee revenue and high- Profitable growth quality deposits 2 Optimize the growth of asset-intensive businesses Path to Decline in change in reserves profitability 3 Realize the benefits of scale 4 Improved
Slide 56: Our Differentiated Approach
INVESTOR DAY 2023 PLATFORM SOLUTIONS 2 Our Differentiated Approach Competitive advantages Guiding principles One Goldman Sachs go-to-market strategy combined Premier brand with products developers love and can easily adopt Longstanding client relationships Business-to-business with innovative, clien
Slide 57: Business Overview
INVESTOR DAY 2023 PLATFORM SOLUTIONS 3 Business Overview More Accretive to One recurring Net interest Goldman Sachs Goldman Sachs’ Fee revenues relationships direct client income revenue Deposits Transaction Corporates, sponsors, and Banking financial institutions Platforms serving small and medium
Slide 58: Innovative Solutions that Clients and Customers Love
INVESTOR DAY 2023 PLATFORM SOLUTIONS 4 Innovative Solutions that Clients and Customers Love Transaction Banking Consumer Platforms Enterprise Partnerships Merchant Point-of-Sale Lending Best cloud initiative #1 in customer satisfaction Highly valued by our customers 1 for digital customer experience
Slide 59: What We Have Achieved So Far
INVESTOR DAY 2023 PLATFORM SOLUTIONS 5 What We Have Achieved So Far Transaction Banking Consumer Platforms Enterprise Partnerships Merchant Point-of-Sale Lending ~12mm active 1 1 customers 2,3 Average deposits $70bn in spot deposits Average loan balances, gross Average serviced portfolios as of 4Q22
Slide 60: Transaction Banking: Differentiated Offering with Potential for Growth
INVESTOR DAY 2023 PLATFORM SOLUTIONS 6 Transaction Banking Differentiated Offering with Potential for Further Growth Attractive business model Differentiated experience Compelling economics Positive contribution Large total addressable market ▪ Seamless onboarding Net earnings leveraging our industr
Slide 61: Transaction Banking Roadmap for Growth
INVESTOR DAY 2023 PLATFORM SOLUTIONS 7 Transaction Banking Roadmap for Growth Profitability levers Deepen relationships to drive growth 1 ▪ Wallet share with existing clients Near-term ▪ New domestic clients Secondary provider Primary provider Accounts payable 2 ▪ Multinationals via geographic growt
Slide 62: Enterprise Partnerships: Strong Partnerships with Top Brands
INVESTOR DAY 2023 PLATFORM SOLUTIONS 8 Enterprise Partnerships Strong Partnerships with Top Brands 1 Why corporations partner with us What we help our clients do Current key partners We reduce complexity via a 1 modern, agile technology ▪ Consumer credit card Diversify revenues stack, provide a larg
Slide 63: Enterprise Partnerships: Disciplined Growth
INVESTOR DAY 2023 PLATFORM SOLUTIONS 9 Enterprise Partnerships Disciplined Growth 1 Revenue path Other profitability drivers Net revenue Net charge-offs Change in net reserves Adjusted contract terms 2 Net revenue, net of provision for credit losses (PCL) (beginning 2H23) Benefits of scale / cost ef
Slide 64: Merchant Point-of-Sale Lending: Leading Home Improvement Franchise
INVESTOR DAY 2023 PLATFORM SOLUTIONS 10 Merchant Point-of-Sale Lending Leading Home Improvement Franchise 1,2 2022 statistics Large and diversified merchant network 1,2 Transaction volume by merchant cohort $7.5bn 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Originations $9.8bn 3 Average s
Slide 65: Driving Attractive Economics Through On-Balance Sheet Growth
INVESTOR DAY 2023 PLATFORM SOLUTIONS 11 Merchant Point-of-Sale Lending Driving Attractive Economics Through On-Balance Sheet Growth and Scale 2 Annualized industry loan economics Revenue path Net revenue Net charge-offs Change in net reserves 3 Net merchant Net revenue, net of provision for credit l
Slide 66: Delivering Efficiency As We Scale
INVESTOR DAY 2023 PLATFORM SOLUTIONS 12 Delivering Efficiency As We Scale Trailing 12 months efficiency ratio Efficiency drivers 1 189% Net revenue growth 155% 142% 134% 133% 117% Deal-related expense (including 2 20% amortization) <100% Decline in deal-related expenses 3 FY2020 FY2021 1Q22 2Q22 3Q2
Slide 67: Our Targets
INVESTOR DAY 2023 PLATFORM SOLUTIONS 13 Our Targets 1 2023 2025 Long-term Demonstrate progress Pre-tax breakeven Returns consistent with to breakeven firmwide targets Efficiency ratio less than Continued efficiency 100% improvement
Slide 68: End Notes
INVESTOR DAY 2023 PLATFORM SOLUTIONS 14 End Notes These notes refer to the financial metrics and/or defined terms presented Slide 9: Slide 13: on: 1. Historical periods are based on realized performance. Projected 1. Long-term refers to a >5 year time horizon periods are indicative of current foreca
Slide 69: Cautionary Note on Forward Looking Statements
INVESTOR DAY 2023 PLATFORM SOLUTIONS 15 Cautionary Note on Forward Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, applicable to the firm and are subject to the risk that the firm’s actual escalate and expand, that sanctions may increase and that the ac
Slide 70: Global Banking & Markets
Global Banking & Markets Dan Dees Co-head of Global Banking & Markets February 2023
Slide 71: Preeminent Global Banking & Markets Franchise
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 1 Preeminent Global Banking & Markets Franchise 1 Integration of #1 Investment Bank with leading FICC and Equities franchises Leading market positions $32bn $14bn 16.4% 2 2 2 Net revenues Pre-tax profit ROE Global, broad, and deep World-class brand Highly e
Slide 72: Global Banking & Markets Evolution
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 2 Global Banking & Markets Evolution Three important changes to the business since Investor Day 2020 1 2 3 Strengthened Increased durability Raised return profile client franchise of revenues
Slide 73: Global Banking & Markets Evolution
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 3 Global Banking & Markets Evolution Three important changes to the business since Investor Day 2020 1 2 3 Strengthened Increased durability Raised return profile client franchise of revenues
Slide 74: Strengthened Client Franchise: FICC and Equities
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 4 Strengthened Client Franchise FICC and Equities 1 GS as Top 3 provider to Top 100 +370bps 51 77 Global Banking & Markets in 2019 in 2022 2 revenue wallet share since Investor Day 2020 Investment Banking Expanded footprint to 12k+ clients
Slide 75: Strengthened Client Franchise: Top 100 Clients
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 5 Strengthened Client Franchise FICC and Equities Top 100 clients Actions What’s next? Large, growing, and Establish framework 1 Expand to top 150 more recurring Assign ownership Identify issues, close gaps 2 Move from “Top 3” to “Top 1” or “Top 2” Increasi
Slide 76: Strengthened Client Franchise: Investment Banking
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 6 Strengthened Client Franchise Investment Banking What’s next? 1 Optimize coverage 12k+ clients, up ~3k 1 Executed expanded footprint #1 for 20 years 2 2 Drive wallet share gains Advisory revenue share $13bn ($3bn+ more than #2) 3 Advisory revenues over la
Slide 77: Greater Opportunity Through Collaboration: Alternative Asset Managers
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 7 Greater Opportunity Through Global Banking & Markets Collaboration Client Case Study: Alternative Asset Managers Huge and growing client base Industry dynamics 1 Global Alternatives AUM ($tn) 1 Secular growth opportunity $23 $15 2 Transactional capital $6
Slide 78: Greater Opportunity Through Collaboration (cont'd)
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 8 Greater Opportunity Through Global Banking & Markets Collaboration (cont’d) Client Case Study: Alternative Asset Managers Coordinate coverage C-suite to Origination, Customize Every 100bps Portfolio Manager structuring, solutions of wallet share distribut
Slide 79: Global Banking & Markets Evolution
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 9 Global Banking & Markets Evolution Three important changes to the business since Investor Day 2020 1 2 3 Strengthened Increased durability Raised return profile client franchise of revenues
Slide 80: Continued Disciplined Growth in Financing
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 10 Continued Disciplined Growth in Financing Financing: strategic priority for GBM Financing revenues ($bn) 1 Client demand Equities financing FICC financing 12% 22% of total revenues of total revenues 2 Growth at attractive returns $7.1 $2.8 $2.6 3 Increas
Slide 81: Increased Durability of Global Banking & Markets Revenues
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 11 Increased Durability of Global Banking & Markets Revenues Growth in Outperformance of Diversification financing revenues our people / franchise effects of the business portfolio
Slide 82: Increased Durability of Revenues (cont'd)
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 12 Increased Durability of Global Banking & Markets Revenues (cont’d) Global Banking & Markets revenues FICC intermediation 2013 2014 2015 2016 2017 2018 2019
Slide 83: Increased Durability of Revenues (cont'd)
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 13 Increased Durability of Global Banking & Markets Revenues (cont’d) Global Banking & Markets revenues Underwriting 2013 2014 2015 2016 2017 2018 2019
Slide 84: Increased Durability of Revenues (cont'd)
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 14 Increased Durability of Global Banking & Markets Revenues (cont’d) Global Banking & Markets revenues ($bn) FICC intermediation Underwriting Remaining GBM $23 $23 $22 $22 $22 Average: $21 $20 ~$22bn 2013 2014 2015 2016 2017 2018 2019
Slide 85: Increased Durability of Revenues (cont'd)
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 15 Increased Durability of Global Banking & Markets Revenues (cont’d) Global Banking & Markets revenues ($bn) 1 Wallet share gains vs 2019 Financing gains vs 2019 Remaining GBM Raising the floor $37 $32 $30 $22 $3 $1 $3 $3 $2 2019 2020 2021 2022
Slide 86: Global Banking & Markets Evolution
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 16 Global Banking & Markets Evolution Three important changes to the business since Investor Day 2020 1 2 3 Strengthened Increased durability Raised return profile client franchise of revenues
Slide 87: Higher Return Profile
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 17 Higher Return Profile Key drivers of increased returns GBM ROE (%) Increased revenue / wallet share gains 1 1 GS Peer average Leading peer 16.4% Business mix improvement 15.2% 14.0% 13.1% 12.6% ~200bps impact of litigation 8.6% Cost reduction Improved ca
Slide 88: Preeminent Global Banking & Markets Franchise
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 18 Preeminent Global Banking & Markets Franchise Leading market positions and client franchise More durable revenues Best-in-class intermediation Raising the floor Enhanced wallet shares More durable returns Improving business mix with growth in financing C
Slide 89: End Notes
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 19 End Notes These notes refer to the financial metrics and/or defined terms presented Slide 7: on: 1. AUM data via Preqin 2. Sources: Coalition Greenwich 1H22 Institutional Client Analytics Slide 1: Global Markets, GS ranks Top 3 for alternative asset mana
Slide 90: Cautionary Note on Forward Looking Statements
INVESTOR DAY 2023 GLOBAL BANKING & MARKETS 20 Cautionary Note on Forward Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, applicable to the firm and are subject to the risk that the firm’s actual escalate and expand, that sanctions may increase and that
Slide 91: Financial Roadmap
Financial Roadmap Denis Coleman Chief Financial Officer February 2023
Slide 92: Committed to Delivering on Through-the-Cycle Targets
INVESTOR DAY 2023 FINANCIAL ROADMAP 1 Committed to Delivering on our Through-the-Cycle Targets and Unlocking Shareholder Value 14-16% 15-17% ~60% 1 ROE ROTE Efficiency ratio
Slide 93: Diversified Franchise Driving Resilient Returns
INVESTOR DAY 2023 FINANCIAL ROADMAP 2 Diversified Franchise Driving Resilient Returns in Different Market Environments Return on equity (%) Since GS IPO FICC Intermediation ~13% Management and other fees Book Value 1 per Share CAGR Investment Banking fees 14.8% 3-year average Equities Intermediation
Slide 94: Comprehensive Risk Management Culture
INVESTOR DAY 2023 FINANCIAL ROADMAP 3 Comprehensive Risk Management Culture Deeply experienced Credit risk Process and first-line risk takers Culture of risk structural management 1 2 oversight Market risk Independent controls Operational risk and governance Liquidity risk Mark-to-market discipline
Slide 95: Intensely Focused on Executing on Our Key Priorities
INVESTOR DAY 2023 FINANCIAL ROADMAP 4 Intensely Focused on Executing on Our Key Priorities Global Banking & Markets Asset & Wealth Management Platform Solutions Growing management fees Maximizing wallet share and Scaling and achieving profitability growing our financing business 2023: Demonstrate pr
Slide 96: Capital Management Framework
INVESTOR DAY 2023 FINANCIAL ROADMAP 5 Capital Management Framework Current capital requirement 1 50-100 bps Investing in our business at Target Management Buffer attractive returns 13.8% Driving SCB towards Stress 2 Capital ~5% Continue to sustainably Buffer 6.3% grow our dividend $22bn Reduction in
Slide 97: Earnings Power Creates Capacity to Accelerate Capital Return
INVESTOR DAY 2023 FINANCIAL ROADMAP 6 Earnings Power Creates Capacity to Grow Further and Accelerate Capital Return 2013-2019 Since Investor Day 2020 Increasing buybacks $500mm $500mm $1.0bn $1.5bn Investing for growth 103% 1Q22 2Q22 3Q22 4Q22 Average gross payout ratio 46% ~$2.25bn Average gross pa
Slide 98: Dynamically Managing Our Expense Base
INVESTOR DAY 2023 FINANCIAL ROADMAP 7 Dynamically Managing Our Expense Base Active expense mitigation Driving towards 1 Recalibrate firm size $600mm Run-rate payroll reduction ~60% efficiency ratio Headcount Curtail attrition Focus on reduction replacement strategic hires 2 Non-comp expense reductio
Slide 99: Actively Managing Our Funding and Liquidity Profile
INVESTOR DAY 2023 FINANCIAL ROADMAP 8 Actively Managing Our Funding and Liquidity Profile Improvement in unsecured funding mix Wholesale Unsecured Deposits 34% 1 Total assets in GS bank entities 56% 90% ~$200bn Held-for-investment loans in Growth in deposits 1 GS bank entities 43% across channels si
Slide 100: 2022 ROE Simulation
INVESTOR DAY 2023 FINANCIAL ROADMAP 9 2022 ROE Simulation 4 3 Operating 2 Platform efficiencies 1 Alt. balance Solutions 14-16% 14.8% Management sheet reduction fee growth 10.2% Average ROE 2022 ROE last 3 years target range Select Levers 1 Firmwide expenses Asset & Wealth Management Platform Soluti
Slide 101: Executing Our Strategy
INVESTOR DAY 2023 FINANCIAL ROADMAP 10 Executing Our Strategy Through-the-cycle targets Global Banking & Markets 14-16% Maximize wallet share and grow financing activities ROE Asset & Wealth Management Grow management fees 15-17% Platform Solutions Scale Platform Solutions 1 to deliver profitability
Slide 102: End Notes
INVESTOR DAY 2023 FINANCIAL ROADMAP 11 End Notes These notes refer to the financial metrics and/or defined terms presented Slide 6: on: 1. GS represents growth from $1.25 in 4Q19 to $2.50 in 4Q22; Peer set includes: JPM, MS, BAC and C. Sourced from company filings Slide 1: 2. Through February 23, 20
Slide 103: Cautionary Note on Forward Looking Statements
INVESTOR DAY 2023 FINANCIAL ROADMAP 12 Cautionary Note on Forward Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, applicable to the firm and are subject to the risk that the firm’s actual escalate and expand, that sanctions may increase and that the act
Slide 104: Why Invest in Goldman Sachs
Why Invest in Goldman Sachs Carey Halio Chief Strategy Officer and Global Head of Investor Relations February 2023
Slide 105: Focused on the Forward
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 1 Focused on the Forward How We Will Deliver for Our Shareholders 1 2 3 Clear strategic Differentiated Track record of direction franchise, talent, success and culture
Slide 106: Entering the Next Phase of Our Strategic Evolution
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 2 Entering the Next Phase of Our Strategic Evolution Clear strategic direction Operating segments Grow and strengthen Global Banking Asset & Wealth Platform existing businesses & Markets Management Solutions Diversify our products and services Operate mo
Slide 107: Global Banking & Markets Poised to Continue Delivering Leading Returns
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 3 Global Banking & Markets Poised to Continue Delivering Leading Returns Strategic differentiators Performance drivers GBM ROE (%) 1 Continue wallet share Leading market position growth 16.4% 15.2% 14.0% Increase mix of 2 Global, broad, and deep 13.1% ~2
Slide 108: Asset & Wealth Management Delivering More Durable Revenues
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 4 Asset & Wealth Management Delivering More Durable Revenues and Earnings Growth Strategic differentiators Performance drivers More durable net revenues ($bn) 1 Continue growth in The power of the Goldmans Sachs Wealth Management, ecosystem Alternatives,
Slide 109: Platform Solutions: Delivering Profitability is Our Priority
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 5 Platform Solutions Delivering Profitability is Our Priority Strategic differentiators Performance drivers Path to profitability 1 Grow wallet share in Premier brand 1 Transaction Banking 2023 2025 Long-term Demonstrate Pre-tax Returns progress to break
Slide 110: Leading Client Franchise
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 6 Leading Client Franchise Trusted advisor “The overall level of intellect of the people working there, the quality of the Client-centric mindset management team, the vision of the Company and the culture of the firm, all 1 those sorts of things stand ou
Slide 111: Differentiated Talent Fostered in a Culture of Excellence
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 7 Differentiated Talent Fostered in a Culture of Excellence Top 20 Client Service Fortune’s most ▪ Innovative approach 1 admired companies ▪ Service mindset ▪ Unique expertise Excellence 90%+ ▪ Relentless focus Client rating on the ▪ Unyielding commitmen
Slide 112: Focus on Transparency, Accountability, and Alignment
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 8 Strategic Focus on Transparency, Accountability, and Alignment Transparency Accountability Alignment ▪ Ongoing enhancement and expansion ▪ Regular updates on strategic vision ▪ Enhancements to Management of disclosed metrics, including through and prog
Slide 113: Strong Performance Over the Long-term
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 9 Strong Performance Over the Long-term Delivering Higher Returns for Our Shareholders Since our IPO Structural improvements since Investor Day 2020 Higher quality revenues +370bps 320bps higher 18% GBM wallet share CAGR in more durable Average Goldman S
Slide 114: Track Record of Delivering for Our Shareholders
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 10 Track Record of Delivering for Our Shareholders Progress since Investor Day 2020 39% 100% 60% Book value per share growth Dividend per share growth Total shareholder return 39% 60% 100% +23ppts +61ppts +47ppts 16% 39% 13% GS P Pe ee er Avg. r avg. GS
Slide 115: Focused on the Forward
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 11 Focused on the Forward How We Will Deliver for Our Shareholders 1 2 3 Clear strategic Differentiated Track record of direction franchise, talent, success and culture
Slide 116: End Notes
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 12 End Notes These notes refer to the financial metrics and/or defined terms presented from Bloomberg. All other data is sourced from company filings. Peers on: comprise of MS, JPM, BAC, C Slide 3: 1. Peers include MS (Institutional Securities segment),
Slide 117: Cautionary Note on Forward Looking Statements
INVESTOR DAY 2023 WHY INVEST IN GOLDMAN SACHS 13 Cautionary Note on Forward Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, applicable to the firm and are subject to the risk that the firm’s actual escalate and expand, that sanctions may increase and th
Slide 118: Q&A
Q&A David Solomon Chairman and Chief Executive Officer February 2023