Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Q4 2019 Earnings Presentation
15 slides from Goldman Sachs Group, Inc. (the)'s earnings presentation, Jan 15, 2020
Slide 1: Full Year and Fourth Quarter 2019 Earnings Results Presentation
Exhibit 99.2 Full Year and Fourth Quarter 2019 Earnings Results Presentation January 15, 2020Exhibit 99.2 Full Year and Fourth Quarter 2019 Earnings Results Presentation January 15, 2020
Slide 2: Results Snapshot
Results Snapshot EPS Net Revenues Net Earnings 2019 $36.55 billion $21.03 2019 $8.47 billion 2019 4Q $9.96 billion 4Q $1.92 billion 4Q $4.69 1 1 ROTE ROE Impact of Litigation 2019 10.0% 2019 10.6% -$3.16 2019 EPS 8.7% 4Q 4Q 9.2% 2019 ROE / ROTE -1.5pp / -1.6pp Annual Highlights 2 Record FICC financi
Slide 3: Macro Perspectives
Macro Perspectives Constructive Fundamentals Macro Factors Accelerating global growth U.S. – China Trade GDP Growth: U.S. Global 2020 │ 2021 +2.2% │ +2.4% +3.4% │ +3.6% Brexit Supportive sentiment and fundamentals Strong Consumer Low Global Low U.S. Low Global Rates Sentiment Inflation Unemployment
Slide 4: Financial Overview
Financial Overview Full Year Net Revenue Mix by Segment Financial Results $ in millions, vs. vs. vs. except per share amounts 4Q19 3Q19 4Q18 2019 2018 Investment Banking $ 2,064 12% -6% $ 7,599 -7% Consumer & Wealth Management Investment 14% Global Markets 3,480 -2% 33% 14,779 2% Banking 21% Asset M
Slide 5: Investment Banking
Investment Banking Investment Banking Highlights Financial Results vs. vs. vs. n 4Q19 net revenues lower YoY $ in millions 4Q19 3Q19 4Q18 2019 2018 — Financial advisory 4Q19 net revenues significantly lower YoY, compared with a strong prior $ 855 23% -29% $ 3,197 -7% Financial advisory year period,
Slide 6: Global Markets - FICC
Global Markets - FICC Financial Results FICC Highlights vs. vs. vs. $ in millionsn 4Q19 net revenues significantly higher YoY compared with a weak 4Q18 4Q19 3Q19 4Q18 2019 2018 — FICC intermediation net revenues were significantly higher, reflecting higher net revenues $ 1,382 5% 83% $ 6,009 5% FICC
Slide 7: Global Markets - Equities
Global Markets - Equities Financial Results Equities Highlights vs. vs. vs. n 4Q19 net revenues higher YoY $ in millions 4Q19 3Q19 4Q18 2019 2018 — Equities financing net revenues were higher, reflecting improved spreads and higher average FICC intermediation $ 1,382 5% 83% $ 6,009 5% customer balan
Slide 8: Asset Management
Asset Management Financial Results Asset Management Highlights vs. vs. vs. n 4Q19 net revenues significantly higher YoY $ in millions 4Q19 3Q19 4Q18 2019 2018 — Equity investments net revenues were significantly higher, reflecting net gains in public and Management and other fees $ 666 1% 6% $ 2,600
Slide 9: Consumer & Wealth Management
Consumer & Wealth Management Financial Results Consumer & Wealth Management Highlights vs. vs. vs. n 4Q19 net revenues higher YoY $ in millions 4Q19 3Q19 4Q18 2019 2018 — Wealth management net revenues higher YoY, due to higher Management and other fees, Management and other fees $ 967 10% 17% $ 3,4
Slide 10: Firmwide Assets Under Supervision
Firmwide Assets Under Supervision 3,4 3,4 Firmwide Assets Under Supervision Assets Under Supervision Highlights By Segment vs. vs. 6 n Firmwide AUS increased $317 billion in 2019 to a record $1.86 trillion, including Asset Management $ in billions 4Q19 3Q19 4Q18 3Q19 4Q18 6 6 AUS increasing $211 bil
Slide 11: Net Interest Income and Loans
Net Interest Income and Loans 4 Net Interest Income by Segment ($ in millions) Loans $ in billions 4Q19 3Q19 4Q18 $4,362 Corporate $ 46 $ 46 $ 42 $3,767 Commercial real estate 17 16 14 $1,661 7 7 8 Residential real estate $1,356 $1,065 $1,008 $991 Real estate 24 23 22 $511 $482 $444 28 26 25 Wealth
Slide 12: Expenses
Expenses Expense Highlights Financial Results n 2019 total operating expenses increased YoY, reflecting: vs. vs. vs. 4Q19 3Q19 4Q18 2019 2018 $ in millions — Higher non-compensation expenses, which included: Compensation and benefits $ 3,046 12% 64% $ 12,353 -% o Significantly higher net provisions
Slide 13: Capital and Balance Sheet
Capital and Balance Sheet 3,4 Capital Capital and Balance Sheet Highlights 4Q19 3Q19 4Q18n Advanced CET1 ratio increased YoY, while Standardized CET1 ratio was unchanged $ in billions Common equity tier 1 (CET1) capital $ 74.9 $ 75.7 $ 73.1 — Decrease in Advanced RWAs reflected lower credit RWAs dri
Slide 14: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the fir
Slide 15: Footnotes
Footnotes 1. Return on average common shareholders’ equity (ROE) is calculated by dividing net earnings (or annualized net earnings for annualized ROE) applicable to common shareholders by average monthly common shareholders’ equity. Tangible common shareholders’ equity is calculated as total shareh