Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Q4 2023 Earnings Presentation
25 slides from Goldman Sachs Group, Inc. (the)'s earnings presentation, Jan 16, 2024
Slide 1: Full Year and Fourth Quarter 2023 Earnings Results Presentation
Full Year and Fourth Quarter 2023 Earnings Results Presentation January 16, 2024
Slide 2: Our culture and leading client franchise are the foundation of our focused strategy
Our culture and leading client franchise are the foundation of our focused strategy S T R AT E G I C Client Service O B J E C T I V E S Harness One GS to Serve Our Clients with Excellence Partnership Run World-Class, Differentiated, Durable Businesses Integrity Invest to Operate at Scale Excellence
Slide 3: Two world-class and interconnected franchises
Two world-class and interconnected franchises #1 Global Investment Leading Global Active Bank1 Asset Manager3 One Global Banking & Goldman Asset & Wealth Top 5 Alternative #1 Equities franchise2 Markets Sachs Management Asset Manager3 Premier Ultra High Net #3 FICC franchise2 Worth franchise 2
Slide 4: Solid progress on execution priorities in 2023
Solid progress on execution priorities in 2023 Global Banking & Markets Asset & Wealth Management Strengthened client franchise Grew more durable revenues #1 M&A, #1 ECM, #2 High-Yield Debt4 Record Management and other fees of $9.5bn in 2023, up 8% YoY; Alternatives management and other fees of $2.1
Slide 5: Global Banking & Markets: Increased wallet share and financing driving growth and attractive returns
Global Banking & Markets: Increased wallet share and financing driving growth and attractive returns Leading diversified franchise (net revenues in $bn) Advisory FICC financing Equity underwriting Equities intermediation Debt underwriting Equities financing FICC intermediation Other Average revenues
Slide 6: Global Banking & Markets: Progress on strategic priorities
Global Banking & Markets: Progress on strategic priorities Strengthened client franchise Growth in financing revenues ($bn) Equities financing FICC financing +350bps wallet share gains in GBM since 20198 $7.8 $7.1 29% 2023 Announced M&A volume share4 34% 2023 Completed M&A volume share4 $5.9 $2.7 $2
Slide 7: Asset & Wealth Management: Client experience and investment performance drive long-term growth
Asset & Wealth Management: Client experience and investment performance drive long-term growth Growing more durable revenues ($bn) Reducing historical principal investments6,7 ($bn) Management and other fees Client co-invest Private banking and lending Firmwide initiatives / community reinvestment a
Slide 8: Asset & Wealth Management: Client experience and investment performance drive inflows
Asset & Wealth Management: Client experience and investment performance drive inflows Strong performance and inflows Surpassed $225bn alternatives fundraising target Corporate equity Real estate Select funds closed >75% of Traditional funds performed Credit Hedge funds and other $251 in 2023: in the
Slide 9: Over 70% of 2023 revenues driven from a consistent baseline and more durable sources
Over 70% of 2023 revenues driven from a consistent baseline and more durable sources GS revenue breakdown12 ($bn) Baseline revenues $59.3 Solid foundation from More durable revenues Other incremental revenues 1 baseline revenues with opportunity to grow $47.4 $46.3 $44.6 $30.4 3 $15.4 $12.3 $36.5 $1
Slide 10: Executing on a focused set of strategic priorities
Executing on a focused set of strategic priorities S T R AT E G I C O B J E C T I V E S Harness One GS to Run World-Class, Differentiated, Invest to Operate Serve Our Clients Durable Businesses at Scale with Excellence 2 0 2 4 E X E C U T I O N F O C U S A R E A S Achieve Agility, Scale, Efficiency
Slide 11: Results Snapshot
Results Snapshot Net Revenues Net Earnings EPS 2023 $46.25 billion 2023 $8.52 billion 2023 $22.87 4Q23 $11.32 billion 4Q23 $2.01 billion 4Q23 $5.48 ROE13 ROTE13 Book Value Per Share 2023 7.5% 2023 8.1% 2023 $313.56 4Q23 7.1% 4Q23 7.6% 2023 Growth 3.3% Annual Highlights Selected Items and FDIC Specia
Slide 12: Financial Overview
Financial Overview Financial Results Financial Overview Highlights 4Q23 results included EPS of $5.48 and ROE of 7.1% $ in millions, vs. vs. vs. — 4Q23 net revenues were higher YoY reflecting higher net revenues in Asset & Wealth except per share amounts 4Q23 3Q23 4Q22 2023 2022 Management and Pla
Slide 13: Global Banking & Markets
Global Banking & Markets Financial Results Global Banking & Markets Highlights 4Q23 net revenues were lower YoY vs. vs. vs. — Investment banking fees reflected significantly lower net revenues in Advisory, partially offset $ in millions 4Q23 3Q23 4Q22 2023 2022 by significantly higher net revenues
Slide 14: Global Banking & Markets – Net Revenues
Global Banking & Markets – Net Revenues Net Revenues Global Banking & Markets Net Revenues Highlights 4Q23 Investment banking fees were lower YoY vs. vs. vs. — Advisory reflected a decline in industry-wide completed M&A volumes $ in millions 4Q23 3Q23 4Q22 2023 2022 — Debt underwriting primarily r
Slide 15: Asset & Wealth Management
Asset & Wealth Management Financial Results Asset & Wealth Management Highlights 4Q23 net revenues were higher YoY vs. vs. vs. — Record Management and other fees primarily reflected the impact of higher average AUS $ in millions 4Q23 3Q23 4Q22 2023 2022 — Private banking and lending net revenues p
Slide 16: Asset & Wealth Management – Assets Under Supervision
Asset & Wealth Management – Assets Under Supervision AUS Rollforward7 AUS Highlights7 During the year, AUS increased $265 billion to a record $2.81 trillion $ in billions 4Q23 3Q23 4Q22 2023 2022 — Net inflows in fixed income, liquidity products and alternative investment assets $ 2,680 $ 2,547 $
Slide 17: Asset & Wealth Management – Alternative Investments
Asset & Wealth Management – Alternative Investments Alternative Investments AUS and Effective Fees7 Alternative Investments Highlights7 2023 Management and other fees from alternative investments were $2.13 billion (including $571 4Q23 million in 4Q23), up 15% from 2022 $ in billions Average AUS E
Slide 18: Platform Solutions
Platform Solutions Financial Results Platform Solutions Highlights 4Q23 net revenues were higher YoY vs. vs. vs. — Consumer platforms primarily reflected significant growth in average credit card balances, $ in millions 4Q23 3Q23 4Q22 2023 2022 partially offset by mark-downs related to the GreenSk
Slide 19: Loans and Net Interest Income
Loans and Net Interest Income Loans by Segment7 ($ in billions) Loans by Type7 Metrics $183 $178 $179 $ in billions 4Q23 3Q23 4Q22 2.9% Corporate $ 36 $ 37 $ 40 ALLL to Total Gross Loans, at Commercial real estate 26 26 29 Amortized Cost Global Banking $117 $109 $108 & Markets Residential real estat
Slide 20: Commercial Real Estate (CRE)
Commercial Real Estate (CRE) 4Q23 Firmwide Loans, Net of ALLL7 4Q23 AWM On-Balance Sheet Alternative Investments7 $ in billions $ in billions CRE-related Office-related 4Q23 Warehouse / other indirect $11 Loans (included in firmwide loans) $ 1.8 $ 0.2 Industrials $3 Multifamily $3 $25 Hospitality 0.
Slide 21: Expenses
Expenses Financial Results Expense Highlights 2023 total operating expenses increased YoY vs. vs. vs. — Compensation and benefits expenses were slightly higher $ in millions 4Q23 3Q23 4Q22 2023 2022 — Non-compensation expenses were higher, reflecting: Compensation and benefits $ 3,602 (14)% (4)% $
Slide 22: Capital and Balance Sheet
Capital and Balance Sheet Capital7 Capital and Balance Sheet Highlights7 Standardized CET1 capital ratio decreased YoY, primarily driven by increases in credit and 4Q23 3Q23 4Q22 market RWAs, partially offset by an increase in CET1 capital Advanced CET1 capital ratio increased YoY, primarily dri
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. Based on cumulative publicly-disclosed Investment Banking revenues from 2020-YTD 3Q23. Peers include MS, JPM, BAC, C, BARC, DB, UBS, CS (up to FY22). 2. Based on cumulative publicly-disclosed net revenues for FICC and Equities from 2020-YTD 3Q23. Peers include MS, JPM, BAC, C, BARC, DB,
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
Goldman Sachs Group, Inc. (The) — Q4 2023 Earnings Presentation on 6ix