Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Q1 2020 Earnings Presentation
17 slides from Goldman Sachs Group, Inc. (the)'s earnings presentation, Apr 15, 2020
Slide 1: First Quarter 2020 Earnings Results Presentation
Exhibit 99.2 First Quarter 2020 Earnings Results Presentation April 15, 2020Exhibit 99.2 First Quarter 2020 Earnings Results Presentation April 15, 2020
Slide 2: COVID-19 Firm Response
COVID-19 Firm Response Our response to COVID-19 reinforces our core values of partnership, client service, integrity, and excellence Employees and Vendors Clients Communities n Activated global Business Continuity Plan, withn Announced a COVID-19 Customer Assistance n Announced a $550 million commit
Slide 3: Results Snapshot
Results Snapshot Net Revenues EPS Net Earnings $8.74 billion $1.21 billion 1Q20 1Q20 $3.11 1Q20 1 1 Annualized ROE 1Q20 Book Value Annualized ROTE $228.21 BVPS 5.7% 1Q20 1Q20 6.0% 1 TBVPS $214.69 Highlights Strong quarterly Investment Banking net revenues Continued growth in Consumer & Wealth Manage
Slide 4: Macro Perspectives
Macro Perspectives Economic Fundamentals Macro Factors Near-Term Contraction Opened the Quarter with Strong Economic Forecast GDP Growth: U.S. Global 2020 | 2021 -6.2% | +5.5% -2.5% | +6.6% COVID-19 Outbreak & Resulting Economic Shock Rapid Shift in Sentiment and Fundamentals Expected GDP Rising Low
Slide 5: Financial Overview
Financial Overview Financial Overview Highlights Financial Results vs. vs. $ in millions, except per share amounts 1Q20 4Q19 1Q19 n During the quarter, the firm successfully executed on its Business Continuity Planning strategy amid the global COVID-19 pandemic, providing clients with advice, execut
Slide 6: Investment Banking
Investment Banking Investment Banking Highlights Financial Results n 1Q20 net revenues were significantly higher YoY vs. vs. $ in millions 1Q20 4Q19 1Q19 — Financial advisory net revenues were lower, reflecting a decrease in industry-wide completed mergers and acquisitions transactions Financial adv
Slide 7: Global Markets - FICC
Global Markets - FICC Financial Results FICC Highlights vs. vs. n 1Q20 net revenues were significantly higher YoY $ in millions 1Q20 4Q19 1Q19 — FICC intermediation net revenues were significantly higher, reflecting significantly higher net FICC intermediation $ 2,537 84% 36% revenues in currencies
Slide 8: Global Markets - Equities
Global Markets - Equities Financial Results Equities Highlights vs. vs. n 1Q20 net revenues were significantly higher YoY $ in millions 1Q20 4Q19 1Q19 — Equities intermediation net revenues were significantly higher, driven by strength in derivatives; FICC intermediation $ 2,537 84% 36% worked with
Slide 9: Asset Management
Asset Management Financial Results Asset Management Highlights vs. vs. n 1Q20 net revenues were significantly lower YoY, as macroeconomic concerns resulting from the $ in millions 1Q20 4Q19 1Q19 challenging operating environment led to decreased global equity prices, wider credit spreads and uncerta
Slide 10: Asset Management – Asset Mix
Asset Management – Asset Mix 4 4 Lending and Debt Investments Asset Mix Equity Investments Asset Mix $ in billions $ in billions $ in billions $ in billions 1Q20 4Q19 1Q20 4Q19 1Q20 4Q19 1Q20 4Q19 Public equity $ 2 $ 2 Corporate $ 16 $ 17 Debt securities $ 13 $ 15 Amortized cost $ 12 $ 13 Private eq
Slide 11: Consumer & Wealth Management
Consumer & Wealth Management Financial Results Consumer & Wealth Management Highlights vs. vs. n 1Q20 net revenues were significantly higher YoY $ in millions 1Q20 4Q19 1Q19 — Wealth management net revenues were higher, due to significantly higher Management and Management and other fees $ 959 -1% 2
Slide 12: Firmwide Assets Under Supervision
Firmwide Assets Under Supervision 3,4 3,4 Firmwide Assets Under Supervision Assets Under Supervision Highlights By Segment n Firmwide AUS decreased $41 billion during the quarter to $1.82 trillion, including Consumer & Wealth vs. vs. $ in billions Management decreasing $52 billion and Asset Manageme
Slide 13: Net Interest Income and Loans
Net Interest Income and Loans 4 Loans Net Interest Income by Segment ($ in millions) $ in billions 1Q20 4Q19 1Q19 Corporate $ 68 $ 46 $ 45 $1,313 $1,218 Commercial real estate 17 17 15 $1,065 Residential real estate 4 7 7 $493 $395 Real estate 21 24 22 $444 $147 $171 29 28 24 Wealth management Consu
Slide 14: Expenses
Expenses Expense Highlights Financial Results vs. vs. n 1Q20 total operating expenses increased YoY, reflecting: 1Q20 4Q19 1Q19 $ in millions — Higher non-compensation expenses, which included: Compensation and benefits $ 3,235 6% -1% o Significantly higher expenses related to brokerage, clearing, e
Slide 15: Capital and Balance Sheet
Capital and Balance Sheet 3,4 Capital Capital and Balance Sheet Highlights n Both Standardized and Advanced CET1 ratios decreased QoQ 1Q20 4Q19 1Q19 $ in billions — Increase in both Standardized and Advanced RWAs reflected higher market and credit RWAs Common equity tier 1 (CET1) capital $ 74.6 $ 74
Slide 16: 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 17: 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