Goldman Sachs Inflation Protected Securities Fund Class R6 · NASDAQ:GSRUX
Goldman Sachs Inflation Protected Securities Fund Class R6 — The Goldman Sachs Group — Q1 2019 Earnings Presentation
23 slides from Goldman Sachs Inflation Protected Securities Fund Class R6's earnings presentation, Apr 15, 2019
Slide 1: First Quarter 2019 Earnings Results Presentation
First Quarter 2019 Earnings Results Presentation April 15, 2019
Slide 2: Earnings Call Agenda
Earnings Call Agenda 1 David M. Solomon, Chairman and Chief Executive Officer Financial Highlights Operating Environment Observations on Strategy 2 Stephen M. Scherr, Chief Financial Officer Update on Front-to-Back Reviews Next Steps in Investor Communications Financial Results 3 Q&A 1
Slide 3: Results Snapshot
Results Snapshot Net Revenues Net Earnings EPS 1Q19 $8.81 billion 1Q19 $2.25 billion 1Q19 $5.71 Annualized ROE1 Annualized ROTE1 1Q19 Book Value BVPS $209.07 1Q19 11.1% 1Q19 11.7% TBVPS1 $198.25 Highlights #1 in Completed M&A2 Record net interest income in Debt I&L Strong net revenues in Financial A
Slide 4: Macro Perspectives and Outlook
Macro Perspectives and Outlook Economic fundamentals 1Q19 Market dynamics resulted in remain constructive mixed client activity Continued positive global growth amidst 32% accommodative monetary policy 13% 12% 2019 +2.5% +3.4% GS Research est. U.S. Global S&P 500 MSCI WTI GDP growth: World Crude Vol
Slide 5: Observations on Strategy
Observations on Strategy Primary Objectives Diversify Our Business Mix Grow and Strengthen Our Achieve Greater with New Products and Existing Businesses Operating Efficiency Services Key Tenets of Our Strategy Investing in Delivering Pursuing Expanding Our Talent, Enhancing Market “One Firm” to Adja
Slide 6: Innovation Driving Growth Opportunities
Innovation Driving Growth Opportunities The Goldman Sachs partnership with Apple includes key elements that underpin many other strategic growth initiatives across the firm Reimagined Products Marcus Mass Affluent No Legacy Technology Wealth Management Digital Delivery Marquee Broad Acquisition Chan
Slide 7: Overview of Front-to-Back Reviews
Overview of Front-to-Back Reviews FRONT: Revenue Expansion Grow Enhance Client Diversify Streamline Optimize Addressable Experience and Funding through Operational Resource Market Engagement Deposits Delivery Consumption BACK: Resource Optimization 6
Slide 8: Revenue Expansion
Revenue Expansion Investment Institutional Client Investing & Investment Banking Services Lending Management Expand market Continue increasing Augment fee-based Expand product reach of the wallet share with investing model and geographic franchise institutional clients Continue franchise o
Slide 9: Resource Optimization
Resource Optimization Capital and Funding Platforms Organizational Structure Diversify funding mix by Continue development of Streamline organizational increasing deposits strategic, low-touch client structure platforms Optimize capital allocation, Integrate more operations notably in FICC
Slide 10: Next Steps in Investor Communications
Next Steps in Investor Communications Today’s discussion What to expect in the coming months Finalize Performance Targets Update on Provide Front-to-Back Comprehensive Reviews Strategic Update Review Financial Disclosure 1Q 2020 9
Slide 11: Financial Overview
Financial Overview Financial Results Quarterly Net Revenue Mix by Segment $ in millions, except per share amounts 1Q19 vs. 4Q18 vs. 1Q18 Investment Investment Management Banking Investment Banking $ 1,810 -11% 1% 18% (Financial 20% Advisory 10%) FICC 1,839 124% -11% (Underwriting Equities 1,766 10%
Slide 12: Investment Banking
Investment Banking Financial Results Key Investment Banking Highlights $ in millions 1Q19 vs. 4Q18 vs. 1Q18 Financial Advisory 1Q19 net revenues reflect strong M&A volumes and leading market share; down significantly versus strong 4Q18, but Financial Advisory $ 887 -26% 51% significantly higher Yo
Slide 13: Institutional Client Services – FICC
Institutional Client Services – FICC Financial Results Key FICC Highlights $ in millions 1Q19 vs. 4Q18 vs. 1Q18 1Q19 net revenues more than doubled QoQ, reflecting increases across all major businesses as market backdrop improved FICC $ 1,839 124% -11% 1Q19 net revenues decreased YoY, reflecting
Slide 14: Institutional Client Services – Equities
Institutional Client Services – Equities Financial Results Key Equities Highlights $ in millions 1Q19 vs. 4Q18 vs. 1Q18 1Q19 net revenues higher QoQ on significantly higher equities client execution net revenues FICC $ 1,839 124% -11% 1Q19 net revenues significantly decreased YoY as market backd
Slide 15: Investing & Lending – Equity Securities
Investing & Lending – Equity Securities Financial Results Key Equity I&L Highlights $ in millions 1Q19 vs. 4Q18 vs.1Q18 1Q19 net revenues decreased QoQ and YoY as significantly lower net gains from private equity investments were partially offset by significantly higher net gains from public inves
Slide 16: Investing & Lending – Debt Securities and Loans
Investing & Lending – Debt Securities and Loans Financial Results Key Debt I&L Highlights $ in millions 1Q19 vs. 4Q18 vs.1Q18 Record net interest income in 1Q19 of $835 million (~$3.3 billion annual pace) Equity securities $ 847 -15% -21% Franchise adjacent loan portfolio continues to complement
Slide 17: Investment Management
Investment Management Financial Results Key Investment Management Highlights $ in millions 1Q19 vs. 4Q18 vs. 1Q18 1Q19 net revenues decreased YoY, reflecting significantly lower incentive fees and lower transaction revenues Management and other fees $ 1,332 -2% -1% AUS3 increased $57 billion in
Slide 18: Expenses
Expenses Financial Results Key Expense Highlights $ in millions 1Q19 vs. 4Q18 vs. 1Q18 1Q19 total operating expenses decreased YoY (-$753 million), including: Compensation and benefits $ 3,259 75% -20% — Significantly lower compensation and benefits expenses (-$798 million) Brokerage, clearing, ex
Slide 19: Capital
Capital Financial Metrics3,4 Key Capital Highlights $ in billions 1Q19 4Q18 CET1 ratios improved QoQ — Driven by increase in retained earnings and lower market Common equity tier 1 (CET1) $ 74.7 $ 73.1 RWAs — Partially offset by increase in credit RWAs Standardized RWAs $ 544 $ 548 Returned $1.5
Slide 20: Balance Sheet & Liquidity
Balance Sheet & Liquidity Balance Sheet Allocation4,6 Key Balance Sheet & Liquidity Highlights 1Q19 4Q18 Highly liquid balance sheet and robust liquidity metrics allow the $ in billions firm to capitalize on market opportunities GCLA, segregated assets and other $ 279 $ 313 — GCLA3 averaged $234 b
Slide 21: 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 22: 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 prefe
Slide 23: Footnotes
Footnotes (6) 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 pr
The Goldman Sachs Group — Q1 2019 Earnings Presentation on 6ix