Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Q2 2020 Earnings Presentation
16 slides from Goldman Sachs Group, Inc. (the)'s earnings presentation, Jul 15, 2020
Slide 1: Second Quarter 2020 Earnings Results Presentation
Exhibit 99.2 Second Quarter 2020 Earnings Results Presentation July 15, 2020Exhibit 99.2 Second Quarter 2020 Earnings Results Presentation July 15, 2020
Slide 2: Results Snapshot
Results Snapshot EPS Net Earnings Net Revenues 2Q $2.42 billion 2Q $6.26 2Q $13.30 billion 2Q YTD $3.64 billion 2Q YTD $9.36 2Q YTD $22.04 billion 1 1 Impact of Litigation Annualized ROTE Annualized ROE 2Q 11.8% 2Q EPS / YTD EPS -$2.60 / -$3.15 2Q 11.1% 2Q YTD 9.0% 2Q YTD 2Q ROE / YTD ROE -4.5pp / -
Slide 3: Macro Perspectives
Macro Perspectives Economic Fundamentals Macro Factors Near-term Contraction Followed by Recovery COVID-19 & Shutdown Impact GDP Growth: U.S. Global 2020 | 2021 -4.6% | +5.8% -3.4% | +6.2% Economies Beginning to Reopen Challenging Fundamentals & Improving Sentiment Unemployment & Low CEO Confidence
Slide 4: Financial Overview
Financial Overview Financial Results Financial Overview Highlights vs. n 2Q20 net revenues were significantly higher YoY, reflecting significantly higher net revenues in $ in millions, vs. vs. 2Q20 2Q19 Global Markets and Investment Banking and higher net revenues in Consumer & Wealth except per sha
Slide 5: Investment Banking
Investment Banking Investment Banking Highlights Financial Results n 2Q20 net revenues were significantly higher YoY vs. vs. vs. 2Q20 2Q19 — Financial advisory net revenues were lower, reflecting a decrease in industry-wide $ in millions 2Q20 1Q20 2Q19 YTD YTD completed mergers and acquisitions tran
Slide 6: Global Markets
Global Markets Global Markets Highlights Financial Results vs. n 2Q20 net revenues were significantly higher YoY, primarily driven by higher client activity vs. vs. 2Q20 2Q19 $ in millions 2Q20 1Q20 2Q19 YTD YTD — FICC net revenues were significantly higher YoY, reflecting significantly higher inter
Slide 7: Global Markets – FICC & Equities
Global Markets – FICC & Equities FICC Highlights Equities Highlights n 2Q20 net revenues were significantly higher YoY n 2Q20 net revenues were significantly higher YoY — FICC intermediation net revenues were significantly higher, reflecting significantly higher net — Equities intermediation net rev
Slide 8: Asset Management
Asset Management Asset Management Highlights Financial Results vs. n 2Q20 net revenues were lower YoY vs. vs. 2Q20 2Q19 $ in millions 2Q20 1Q20 2Q19 YTD YTD — Management and other fees from institutional and third-party distribution asset management clients were slightly higher, reflecting higher av
Slide 9: Asset Management – Asset Mix
Asset Management – Asset Mix 4 4 2Q20 Equity Investments of $20 Billion 2Q20 Lending and Debt Investments of $30 Billion $17 Billion Private, $3 Billion Public $17 Billion Loans (88% Secured) $13 Billion Debt Investments By Geography By Vintage 2017– 2013 or Present Asia Earlier 30% 36% Americas 37%
Slide 10: Consumer & Wealth Management
Consumer & Wealth Management Financial Results Consumer & Wealth Management Highlights vs. n 2Q20 net revenues were higher YoY vs. vs. 2Q20 2Q19 $ in millions 2Q20 1Q20 2Q19 YTD YTD — Wealth management net revenues were higher, due to higher Management and other fees 7 (including the impact of the c
Slide 11: Firmwide Assets Under Supervision
Firmwide Assets Under Supervision 3,4 3,4 Firmwide Assets Under Supervision Assets Under Supervision Highlights By Segment vs. vs. n Firmwide AUS increased $239 billion during the quarter to a record $2.06 trillion, including Asset $ in billions 2Q20 1Q20 2Q19 1Q20 2Q19 Management AUS increasing $19
Slide 12: Net Interest Income and Loans
Net Interest Income and Loans 4 Net Interest Income by Segment ($ in millions) Loans Metrics $ in billions 2Q20 1Q20 2Q19 $1,313 Corporate $ 59 $ 68 $ 47 3.7% $1,071 ALLL to Total Wealth management 28 29 25 $944 Gross Loans, at $493 Amortized Cost Commercial real estate 17 17 15 $397 $397 2.8% 5 4 6
Slide 13: Expenses
Expenses Expense Highlights Financial Results vs.n 2Q20 total operating expenses increased significantly YoY, reflecting: vs. vs. 2Q20 2Q19 — Significantly higher compensation and benefits expenses, reflecting significantly higher net $ in millions 2Q20 1Q20 2Q19 YTD YTD revenues Compensation and be
Slide 14: Capital and Balance Sheet
Capital and Balance Sheet 3,4 Capital Capital and Balance Sheet Highlights n Both Standardized and Advanced CET1 ratios increased QoQ 2Q20 1Q20 2Q19 $ in billions — Increase in CET1 capital reflected net earnings in excess of dividends Common equity tier 1 (CET1) capital $ 76.8 $ 74.6 $ 75.6 — Decre
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