Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Q2 2019 Earnings Presentation
16 slides from Goldman Sachs Group, Inc. (the)'s earnings presentation, Jul 16, 2019
Slide 1: Second Quarter 2019 Earnings Results Presentation
Exhibit 99.2 Second Quarter 2019 Earnings Results Presentation July 16, 2019 Exhibit 99.2 Second Quarter 2019 Earnings Results Presentation July 16, 2019
Slide 2: Results Snapshot
Results Snapshot Net Revenues Net Earnings EPS $5.81 2Q 2Q $2.42 billion 2Q $9.46 billion $11.52 2Q YTD 2Q YTD $4.67 billion 2Q YTD $18.27 billion 1 1 2Q19 Book Value Annualized ROTE Annualized ROE $214.10 BVPS 11.7% 11.1% 2Q 2Q 1 $203.05 TBVPS 11.7% 11.1% 2Q YTD 2Q YTD Highlights Highest I&L quarte
Slide 3: Macro Perspectives
Macro Perspectives Constructive Fundamentals Macro Factors Continued positive global growth U.S. - China/Mexico Trade 2019 GS Research U.S. Global Estimated GDP +2.5% +3.4% Growth: Accommodative Central Banks Supportive sentiment and fundamentals Resilient CEO Low Global Low U.S. Brexit Confidence I
Slide 4: Financial Overview
Financial Overview Financial Results 2Q19 YTD Net Revenue Mix by Segment vs. $ in millions, vs. vs. 2Q19 2Q18 except per share amounts 2Q19 1Q19 2Q18 YTD YTD Investment Banking $ 1,863 3% -9% $ 3,673 -4% Investment Investment Institutional Client Services 3,476 -4% -3% 7,081 -11% Management Banking
Slide 5: Investment Banking
Investment Banking Financial Results Key Investment Banking Highlights vs. vs. vs. 2Q19 2Q18 n Financial Advisory 2Q19 net revenues remained strong, but were $ in millions 2Q19 1Q19 2Q18 YTD YTD lower QoQ; 2Q19 YTD net revenues significantly higher reflecting strong M&A volumes and leading market sh
Slide 6: Institutional Client Services – FICC
Institutional Client Services – FICC Financial Results Key FICC Highlights vs. n 2Q19 net revenues declined QoQ across FICC’s major businesses. vs. vs. 2Q19 2Q18 The operating environment was characterized by generally low levels $ in millions 2Q19 1Q19 2Q18 YTD YTD of volatility and low client acti
Slide 7: Institutional Client Services – Equities
Institutional Client Services – Equities Financial Results Key Equities Highlights vs. nd n 2 highest quarterly performance in 4 years vs. vs. 2Q19 2Q18 $ in millions 2Q19 1Q19 2Q18 YTD YTD n 2Q19 net revenues increased QoQ reflecting higher activity and seasonally stronger net revenues in securitie
Slide 8: Investing & Lending – Equity Securities
Investing & Lending – Equity Securities Financial Results Key Equity I&L Highlights vs. vs. vs. 2Q19 2Q18 n 2Q19 net revenues were significantly higher QoQ, reflecting $ in millions 2Q19 1Q19 2Q18 YTD YTD significantly higher net gains from private investments Equity securities $ 1,541 82% 20% $ 2,3
Slide 9: Investing & Lending – Debt Securities and Loans
Investing & Lending – Debt Securities and Loans Key Debt I&L Highlights Financial Results vs. vs. vs. 2Q19 2Q18 n Record net interest income in 2Q19 of $872 million (~$3.5 billion $ in millions 2Q19 1Q19 2Q18 YTD YTD annual pace) Equity securities $ 1,541 82% 20% $ 2,388 2% n Franchise adjacent loan
Slide 10: Investment Management
Investment Management Financial Results Key Investment Management Highlights n 2Q19 net revenues increased slightly QoQ, driven by management vs. and other fees; decrease YoY primarily due to significantly lower vs. vs. 2Q19 2Q18 $ in millions 2Q19 1Q19 2Q18 YTD YTD incentive fees $ 1,395 5% 4% $ 2,
Slide 11: Expenses
Expenses Financial Results Key Expense Highlights n 2Q19 YTD total operating expenses decreased YoY primarily vs. reflecting lower compensation and benefits expenses vs. vs. 2Q19 2Q18 $ in millions 2Q19 1Q19 2Q18 YTD YTD — Expenses related to consolidated investments and technology were higher. The
Slide 12: Capital
Capital 3,4 Financial Metrics Key Capital Highlights $ in billions n QoQ increase in CET1 ratios is primarily driven by retained 2Q19 1Q19 earnings Common equity tier 1 (CET1) $ 75.6 $ 74.7 n Returned $1.57 billion of capital during the quarter — $1.25 billion of common share repurchases Standardize
Slide 13: Balance Sheet & Liquidity
Balance Sheet & Liquidity 4,7 Balance Sheet Allocation Key Balance Sheet & Liquidity Highlights n Increased total assets by $20 billion QoQ, reflecting client demand $ in billions 2Q19 1Q19 for the firm’s balance sheet GCLA, segregated assets and other $ 293 $ 279 n Maintained highly liquid balance
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. Annualized return on average common shareholders’ equity (ROE) is calculated by dividing annualized net earnings applicable to common shareholders by average monthly common shareholders’ equity. Tangible common shareholders’ equity is calculated as total shareholders’ equity less prefer
Slide 16: Footnotes
Footnotes 7. In addition to preparing the firm’s consolidated statements of financial condition in accordance with U.S. GAAP, the firm prepares a balance sheet that generally allocates assets to the firm’s businesses, which is a non-GAAP presentation and may not be comparable to similar non-GAAP pre