Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Q4 2024 Earnings Presentation
25 slides from Goldman Sachs Group, Inc. (the)'s earnings presentation, Jan 15, 2025
Slide 1: Full Year and Fourth Quarter 2024 Earnings Results Presentation
Exhibit 99.2 Full Year and Fourth Quarter 2024 Earnings Results Presentation January 15, 2025
Slide 2: Our culture and leading client franchise are the foundation of our strategy
Our culture and leading client franchise are the foundation of our strategy S TRA TE G I C Client Service OBJ EC T I VES Harness One GS to Serve Our Clients with Excellence Partnership Run World-Class, Differentiated, Durable Businesses Integrity Invest to Operate at Scale Excellence 1
Slide 3: World-class and interconnected franchises positioned to deliver mid-teens returns
World-class and interconnected franchises positioned to deliver mid-teens returns Leading Global Active 1 #1 M&A Advisor 3 Asset Manager One Global Banking & Asset & Wealth Goldman Top 5 Alternative 2 #1 Equities Franchise Markets Management 3 Sachs Asset Manager Leading FICC Premier Ultra High Net
Slide 4: Exceptional talent underpinned by a culture of excellence
Exceptional talent underpinned by a culture of excellence 875k+ ~380 Experienced hire applicants, with <1% hire rate Boomerang hires Compelling for Experienced Talent >40% <1% Aspirational Invested Selection rate from ~320k applicants for of the firm’s Partners were campus hires for Campus in Our Pe
Slide 5: Strong progress on execution priorities in 2024
Strong progress on execution priorities in 2024 Global Banking & Markets Asset & Wealth Management Exceptional client franchise Grew more durable revenues Record Management and other fees of $10.4bn in 2024, up 10% YoY; 1; #1 M&A, #3 ECM, #2 Leveraged Loans, #3 High-Yield Debt Alts management and ot
Slide 6: Global Banking & Markets: Increased wallet share and financing driving attractive returns
Global Banking & Markets: Increased wallet share and financing driving attractive returns Leading diversified franchise ($bn) Forward Catalysts Advisory FICC financing Equity underwriting Equities intermediation Debt underwriting Equities financing Constructive Economic Outlook FICC intermediation O
Slide 7: Asset & Wealth Management: Delivering strong growth in AUS and more durable revenues
Asset & Wealth Management: Delivering strong growth in AUS and more durable revenues 7,8 Firmwide investment platform (4Q24) Growth in more durable revenues ($bn) Liquidity Management and other fees ~$850bn Private banking and lending Brokerage ~$500bn $13.3 Alternatives ~$525bn $12.1 $11.2 $2.9 $3.
Slide 8: Path forward to mid-teens returns
Path forward to mid-teens returns AWM pre-tax margin improvement Investing for Growth Wealth Management 28% Serve more clients via tailored and differentiated offerings ~4pp impact 6 of HPI Deliver unique lending solutions Elevate client experience through digital capabilities Alternatives Scale est
Slide 9: ~70% of 2024 revenues driven from a growing baseline and more durable sources
~70% of 2024 revenues driven from a growing baseline and more durable sources 10 GS revenue breakdown ($bn) Baseline revenues Solid foundation from More durable revenues baseline revenues with Other incremental revenues 1 opportunity for continued growth $59.3 $53.5 3 $47.4 $46.3 $44.6 $16.5 Growing
Slide 10: Investing to operate at scale with resilience and enhanced productivity
Investing to operate at scale with resilience and enhanced productivity O P E RATI NG E FFI CI E NCI E S 1 2 3 Organizational Spend Automation Structure Management n Expand presence in key n Optimize transaction based n Simplify and modernize strategic locations expenses technology stack n Optimize
Slide 11: Driving the firm to mid-teens returns through-the-cycle
Driving the firm to mid-teens returns through-the-cycle Mid-Teens Global Banking & Asset & Wealth Platform Markets Management Solutions Demonstrated mid-teens 2024 ROE of 12.8%; 12 Achieve pre-tax breakeven 11 returns clear path to mid-teens returns 12.7% 2024 ROE Through-the-Cycle 10
Slide 12: Results Snapshot
Results Snapshot Net Revenues Net Earnings EPS 2024 $53.51 billion 2024 $14.28 billion 2024 $40.54 4Q24 $ 1 3 . 87 billion 4Q24 $ 4 . 1 1 billion 4Q24 $11. 95 13 13 ROE ROTE Book Value Per Share 2024 12.7% 2024 13.5% 2024 $336.77 4Q24 14.6% 4Q24 15.5% 2024 Growth 7.4% 14 Annual Highlights Selected I
Slide 13: Financial Overview
Financial Overview Financial Results Financial Overview Highlights vs. vs. vs.n 4Q24 results included EPS of $11.95 and ROE of 14.6% $ in millions, except per share amounts 4Q24 3Q24 4Q23 2024 2023 — 4Q24 net revenues were significantly higher YoY reflecting higher net revenues across all segments,
Slide 14: Global Banking & Markets Financial Results
Global Banking & Markets Financial Results Global Banking & Markets Highlights n 4Q24 net revenues were significantly higher YoY vs. vs. vs. $ in millions — Investment banking fees reflected significantly higher net revenues in Equity underwriting and 4Q24 3Q24 4Q23 2024 2023 Debt underwriting Inves
Slide 15: Global Banking & Markets – Net Revenues
Global Banking & Markets – Net Revenues Net Revenues Global Banking & Markets Net Revenues Highlights n 4Q24 Investment banking fees were significantly higher YoY vs. vs. vs. — Advisory net revenues were slightly lower $ in millions 4Q24 3Q24 4Q23 2024 2023 — Equity underwriting primarily reflected
Slide 16: Asset & Wealth Management Financial Results
Asset & Wealth Management Financial Results Asset & Wealth Management Highlights n 4Q24 net revenues were higher YoY vs. vs. vs. — Record Management and other fees primarily reflected the impact of higher average assets $ in millions 4Q24 3Q24 4Q23 2024 2023 under supervision — Incentive fees were d
Slide 17: Asset & Wealth Management – Assets Under Supervision
Asset & Wealth Management – Assets Under Supervision 7 7 AUS Highlights AUS by Asset Class n During the year, AUS increased $325 billion to a record $3.14 trillion $ in billions 4Q24 3Q24 4Q23 — Net inflows across all asset classes $ 336 $ 328 $ 295 Alternative investments — Net market appreciation
Slide 18: Asset & Wealth Management – Alternative Investments
Asset & Wealth Management – Alternative Investments 7 7 Alternative Investments Highlights On-Balance Sheet Alternative Investments n 2024 Management and other fees from alternative investments were $2.18 billion (including $ in billions 4Q24 $620 million in 4Q24), up 2% from 2023 Loans $ 8.5 n Duri
Slide 19: Platform Solutions Financial Results
Platform Solutions Financial Results Platform Solutions Highlights vs. vs. vs.n 4Q24 net revenues were higher YoY $ in millions 4Q24 3Q24 4Q23 2024 2023 — Consumer platforms primarily reflected the mark-downs related to the GreenSky held for sale loan portfolio in 4Q23 $ 597 79% 18% $ 2,147 4% Consu
Slide 20: Loans and Net Interest Income
Loans and Net Interest Income 7 7 Loans by Segment ($ in billions) Loans and Net Interest Income Highlights n During the year, total loans increased $13 billion, up 7% $196 $192 $183 — Gross loans by type: $192 billion - amortized cost, $5 billion - fair value, $4 billion - held for sale — Average l
Slide 21: Expenses
Expenses Financial Results Expense Highlights n 2024 total operating expenses decreased YoY vs. vs. vs. — Decreases driven by significantly lower expenses, including impairments, related to 4Q24 3Q24 4Q23 2024 2023 $ in millions commercial real estate in CIEs (largely in depreciation and amortizatio
Slide 22: Capital and Balance Sheet
Capital and Balance Sheet 7 7 Capital and Balance Sheet Highlights Selected Balance Sheet Data n Standardized CET1 capital ratio increased YoY, driven by an increase in CET1 capital and a decrease in credit RWAs, partially offset by an increase in market RWAs $ in billions 4Q24 3Q24 4Q23 n Advanced
Slide 23: 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 or statements of current con
Slide 24: Footnotes
Footnotes 1. Dealogic – January 1, 2024 through December 31, 2024. M&A refers to both announced and completed M&A. Equity capital markets (ECM) refers to Equity & Equity-related Offerings. 2. FICC and Equities rankings based on cumulative publicly-disclosed net revenues (2020-3Q24 YTD). Global Banki
Slide 25: Footnotes – Continued
Footnotes – Continued 13. 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. Return on average tangible common shareholders’ equit