Goldman Sachs Group, Inc. (the) · NYSE:GS

Goldman Sachs Group, Inc. (the) — The Goldman Sachs Group — Q3 2019 Earnings Presentation

16 slides from Goldman Sachs Group, Inc. (the)'s earnings presentation, Oct 15, 2019

  1. Slide 1: Third Quarter 2019 Earnings Results Presentation

    Third Quarter 2019 Earnings Results Presentation October 15, 2019

  2. Slide 2: Results Snapshot

    Results Snapshot Net Revenues Net Earnings EPS 3Q $8.32 billion 3Q $1.88 billion 3Q $4.79 3Q YTD $26.59 billion 3Q YTD $6.55 billion 3Q YTD $16.32 Annualized ROE1 Annualized ROTE1 3Q19 Book Value 3Q 9.0% 3Q 9.5% BVPS $218.82 3Q YTD 10.4% 3Q YTD 11.0% TBVPS1 $205.59 Highlights #1 in Announced and Com

  3. Slide 3: Macro Perspectives

    Macro Perspectives Constructive Fundamentals Macro Factors Continued positive global growth U.S. – China Trade Concerns 2020 GS Research U.S. Global Estimated GDP Brexit Deadline +2.1% +3.5% Growth: Supportive sentiment and fundamentals Idiosyncratic Events (Argentina & Oil Shock) Strong Consumer Lo

  4. Slide 4: Financial Overview

    Financial Overview Financial Results 3Q19 YTD Net Revenue Mix by Segment vs. $ in millions, vs. vs. 3Q19 3Q18 except per share amounts 3Q19 2Q19 3Q18 YTD YTD Investment Banking $ 1,687 -9% -15% $ 5,360 -8% Investment Investment Institutional Client Services 3,287 -5% 6% 10,368 -6% Management Banking

  5. Slide 5: Investment Banking

    Investment Banking Financial Results Key Investment Banking Highlights vs. vs. vs. 3Q19 3Q18  Financial Advisory 3Q19 net revenues significantly lower YoY, $ in millions 3Q19 2Q19 3Q18 YTD YTD reflecting a decrease in completed M&A transactions Financial Advisory $ 716 -8% -22% $ 2,379 3%  Underwr

  6. Slide 6: Institutional Client Services – FICC

    Institutional Client Services – FICC Financial Results Key FICC Highlights vs.  3Q19 net revenues increased YoY, reflecting higher net revenues in vs. vs. 3Q19 3Q18 commodities, credit products, mortgages and interest rate products, $ in millions 3Q19 2Q19 3Q18 YTD YTD partially offset by lower net

  7. Slide 7: Institutional Client Services – Equities

    Institutional Client Services – Equities Financial Results Key Equities Highlights vs.  3Q19 net revenues were higher YoY: vs. vs. 3Q19 3Q18 $ in millions 3Q19 2Q19 3Q18 YTD YTD — Commissions and fees were higher, reflecting increased client activity FICC $ 1,410 -4% 8% $ 4,718 -7% — Net revenues i

  8. Slide 8: Investing & Lending – Equity Securities

    Investing & Lending – Equity Securities Financial Results Key Equity I&L Highlights vs. vs. vs. 3Q19 3Q18  3Q19 net revenues were significantly lower QoQ and YoY, reflecting $ in millions 3Q19 2Q19 3Q18 YTD YTD significantly lower net gains from investments in private equities as well as net losses

  9. Slide 9: Investing & Lending – Debt Securities and Loans

    Investing & Lending – Debt Securities and Loans Financial Results Key Debt I&L Highlights vs. vs. vs. 3Q19 3Q18  Record net interest income in 3Q19 of $891 million (~$3.6 billion $ in millions 3Q19 2Q19 3Q18 YTD YTD annual pace) Equity securities $ 662 -57% -40% $ 3,050 -12%  As of 3Q19, ~84% of t

  10. Slide 10: Investment Management

    Investment Management Financial Results Key Investment Management Highlights vs.  3Q19 net revenues increased QoQ, driven by management and other vs. vs. 3Q19 3Q18 fees, primarily reflecting the impact of the acquisition of United $ in millions 3Q19 2Q19 3Q18 YTD YTD Capital; decreased slightly YoY

  11. Slide 11: Expenses

    Expenses Financial Results Key Expense Highlights  3Q19YTD total operating expenses decreased YoY, reflecting: vs. vs. vs. 3Q19 3Q18 — Lower compensation and benefits expenses $ in millions 3Q19 2Q19 3Q18 YTD YTD — Partially offset by higher non-compensation expenses, which Compensation and benefit

  12. Slide 12: Capital

    Capital Financial Metrics3,4 Key Capital Highlights $ in billions 3Q19 2Q19  CET1 capital ratios decreased QoQ Common equity tier 1 (CET1) capital $ 75.7 $ 75.6 — Increase in Standardized RWAs reflects higher credit RWAs — Increase in Basel III Advanced RWAs reflects higher credit Standardized RWAs

  13. Slide 13: Balance Sheet & Liquidity

    Balance Sheet & Liquidity Balance Sheet Allocation4,6 Key Balance Sheet & Liquidity Highlights  The firm’s balance sheet increased by $62 billion QoQ, reflecting $ in billions 3Q19 2Q19 client demand, notably in Repo and Equities GCLA, segregated assets and other $ 298 $ 293  Maintained highly liq

  14. 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

  15. 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

  16. Slide 16: 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 pre

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