Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — The Goldman Sachs Group — Q3 2020 Earnings Presentation
16 slides from Goldman Sachs Group, Inc. (the)'s earnings presentation, Oct 14, 2020
Slide 1: Third Quarter 2020 Earnings Results Presentation
Subsequent to the issuance of the firm's third quarter 2020 earnings release on October 14, 2020, the firm recorded an additional provision for litigation and regulatory proceedings of $250 million for the third quarter of 2020 following its announcement that it had reached settlements of government
Slide 2: Results Snapshot
Results Snapshot Net Revenues Net Earnings EPS 3Q $10.78 billion 3Q $3.62 billion 3Q $9.68 3Q YTD $32.82 billion 3Q YTD $5.20 billion 3Q YTD $13.34 Annualized ROE1 Annualized ROTE1 3Q20 Book Value 3Q 17.5% 3Q 18.6% BVPS $229.49 3Q YTD 8.0% 3Q YTD 8.5% YTD Growth 5.0% Highlights Record quarterly dilu
Slide 3: Macro Perspectives
Macro Perspectives Macro Factors Economic Fundamentals COVID-19 Near term Contraction Followed by Recovery GDP Growth: U.S. Global 2020 | 2021 -3.4% | +5.8% -3.9% | +6.6% Monetary & Fiscal Stimulus Improving Fundamentals Rising CEO Lower U.S. Improving Pace of Economic Recovery & Consumer Unemployme
Slide 4: Financial Overview
Financial Overview Financial Results Financial Overview Highlights vs. $ in millions, vs. vs. 3Q20 3Q19 3Q20 net revenues were significantly higher YoY except per share amounts 3Q20 2Q20 3Q19 YTD YTD — Higher net revenues across all segments, including significant increases in Asset Investment Ban
Slide 5: Investment Banking
Investment Banking Financial Results Investment Banking Highlights vs. vs. vs. 3Q20 3Q19 3Q20 net revenues were higher YoY $ in millions 3Q20 2Q20 3Q19 YTD YTD — Financial advisory net revenues were significantly lower, reflecting a decrease in industry- Financial advisory $ 507 -26% -27% $ 1,974
Slide 6: Global Markets
Global Markets Financial Results Global Markets Highlights vs. vs. vs. 3Q20 3Q19 3Q20 net revenues were significantly higher YoY $ in millions 3Q20 2Q20 3Q19 YTD YTD — FICC net revenues were significantly higher, reflecting significantly higher intermediation net FICC intermediation $ 2,170 -43% 6
Slide 7: Global Markets – FICC & Equities
Global Markets – FICC & Equities FICC Highlights Equities Highlights 3Q20 net revenues were significantly higher YoY 3Q20 net revenues were higher YoY — FICC intermediation net revenues were significantly higher, reflecting significantly higher net — Equities intermediation net revenues were sig
Slide 8: Asset Management
Asset Management Financial Results Asset Management Highlights vs. vs. vs. 3Q20 3Q19 3Q20 net revenues were significantly higher YoY $ in millions 3Q20 2Q20 3Q19 YTD YTD — Equity investments net revenues reflected net gains from investments in public equities in Management and other fees $ 728 6%
Slide 9: Asset Management – Asset Mix
Asset Management – Asset Mix 3Q20 Equity Investments of $19 Billion4 3Q20 Lending and Debt Investments of $31 Billion4 $16 Billion Private, $3 Billion Public $17 Billion Loans (88% Secured) By Geography $14 Billion Debt Investments By Vintage 2017– 2013 or Earlier Asia Present 32% 32% 33% Americas 5
Slide 10: Consumer & Wealth Management
Consumer & Wealth Management Financial Results Consumer & Wealth Management Highlights vs. vs. vs. 3Q20 3Q19 3Q20 net revenues were higher YoY $ in millions 3Q20 2Q20 3Q19 YTD YTD — Wealth management net revenues were higher, due to higher Management and other fees, Management and other fees $ 957
Slide 11: Firmwide Assets Under Supervision
Firmwide Assets Under Supervision Firmwide Assets Under Supervision3,4 Assets Under Supervision Highlights3,4 By Segment vs. vs. Firmwide AUS decreased $21 billion during the quarter to $2.04 trillion, including Asset $ in billions 3Q20 2Q20 3Q19 2Q20 3Q19 Management AUS decreasing $38 billion and
Slide 12: Net Interest Income and Loans
Net Interest Income and Loans Net Interest Income by Segment ($ in millions) Loans4 Metrics $1,084 $ in billions 3Q20 2Q20 3Q19 $1,008 $944 Corporate $ 52 $ 59 $ 46 3.7% Wealth management 30 28 26 ALLL to Total $425 $397 $508 Gross Loans, at Commercial real estate 18 17 16 Amortized Cost $124 $51 Re
Slide 13: Expenses
Expenses Financial Results Expense Highlights vs. 3Q20 total operating expenses increased YoY vs. vs. 3Q20 3Q19 $ in millions 3Q20 2Q20 3Q19 YTD YTD — Higher compensation and benefits expenses (reflecting significantly higher net revenues) Compensation and benefits $ 3,117 -30% 14% $ 10,830 16% —
Slide 14: Capital and Balance Sheet
Capital and Balance Sheet Capital3,4 Capital and Balance Sheet Highlights $ in billions 3Q20 2Q20 3Q19 Both Standardized and Advanced CET1 ratios increased QoQ Common equity tier 1 (CET1) capital $ 77.8 $ 74.7 $ 75.7 — Increase in CET1 capital reflected net earnings in excess of dividends — Decrea
Slide 15: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding 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
Slide 16: 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. Annualized return on average tangible common shareholders’ equity (ROTE) is calculated by di
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