Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Barclays Financial Services Conference 2017
24 slides from Goldman Sachs Group, Inc. (the)'s conference presentation, Sep 12, 2017
Slide 1: Goldman Sachs Presentation to Barclays Financial Services Conference
Goldman Sachs Presentation to Barclays Financial Services Conference September 12, 2017 Harvey M. Schwartz President and Co-Chief Operating Officer Exhibit 99.1
Slide 2: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements Today’s presentation includes forward-looking statements. These statements are not historical facts, but instead represent only the Firm’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Firm’s
Slide 3: Review of Financial Performance
Review of Financial Performance
Slide 4: Opportunities for growth: Investing in our Franchise
Opportunities for growth Investing in our Franchise $0.5bn+ Firmwide lending and financing efforts1 $1.0bn+ Investment Management $0.5bn+ Equities clients coverage strategy Estimated Year 3 Net Revenue Opportunity FICC opportunity Total firmwide net revenue growth opportunity $2.0bn+ $5.0bn+ Investm
Slide 5: Current State of our Franchise: 1H17 in review
Pre-tax Margin Current State of our Franchise 1H17 in review $14.3bn $15.9bn +12% 1H16 1H17 1H17 vs. 1H16 +340bps Diluted EPS1 +42% BVPS2 +6% Annualized ROE1 +260bps 1 1H17 included a $485mm reduction to provision for taxes as a result of the Firm’s adoption of the share-based accounting standard, r
Slide 6: Current State of our Franchise: Continued focus on resource allocation
Current State of our Franchise Continued focus on resource allocation Significant Progress in Improving Efficiency Growth in Strategic Locations2 Strategic locations represent 2 of our 4 largest offices ~30% of our global headcount Average Compensation Ratio3 1H17 Compensation Ratio3 ~(470)bps From
Slide 7: Strong balance sheet provides for capital return
Financial strength allowed us to return significant capital to shareholders and reach a historically low share count Allowing Capital Returns 402.9mm Shares3 at 2Q17 lowest ever $35bn Total capital return from 2012-2Q172 (buybacks + dividends) 1 Common Equity tier 1 ratio and RWAs calculated from 20
Slide 8: GS has a strong record of outperformance on key metrics
GS has a strong record of outperformance on key metrics U.S. Peer1 Average Strong Relative Performance Outperformance across various metrics since beginning of 2012 GS Euro Peer1 Average +44% -22% 6.7% 1.4% +29% -25% -6% +67% Note: Balance sheet and share count amounts calculated from 2011YE through
Slide 9: Fixed Income, Currencies and Commodities
Fixed Income, Currencies and Commodities
Slide 10: FICC Industry Wallet and Trends
FICC Industry Wallet and Trends GS vs. Industry Core FICC Net Revenues ($bn)1 Significant changes in FICC industry wallet over the past decade GS’ Wallet Share 1 Excludes CVA, FVA, DVA as disclosed in public filings for 2009 and 2Q17 TTM. All periods include GS, BAC, C, JPM, MS, BARC, CS, DB, UBS. 2
Slide 11: FICC Net Revenues by Activity
$1.0bn gap to average FICC Industry Wallet and Trends 2016 FICC Net Revenues by Activity Market making is central to our business, and our model is driven by client activity 1 Source: Coalition. Universal peer group includes: BAC, C, JPM. Captive and Other for peer group includes revenues related to
Slide 12: FICC Client Trends
FICC Client Trends 1H17 FICC Sales Credits by Client Segment Our franchise has been more oriented to active managers relative to peers FICC Sales Credits Trends by Client Segment 1 “Other” includes pension funds, endowments, foundations and insurance companies as well as governments and central bank
Slide 13: Evolution of our FICC Franchise
Evolution of our FICC Franchise 2000 2016 Historically low interest rates Regulation Macroeconomic / political uncertainty Low client conviction Low volatility Announced cost initiatives Reduction in RWAs Balance sheet reduction Investments in technology Electronification in trading ROAE capital fra
Slide 14: Shifting FICC Focus to Grow the Franchise
1 2 3 4 Close Market Share Gaps Increase Financing Footprint Strengthen Corporate Offering Our People Shifting FICC Focus to Grow the Franchise Current revenue growth priorities Deepen Impact & Broaden Our Footprint
Slide 15: Closing Market Share Gaps
Clients ranking 4 and below Closing Market Share Gaps Deepen penetration within FICC with Asset Managers and Banks 1 Source: Oliver Wyman 2 Source: Coalition. Ranking based on number of clients where GS is within the top 3 in their respective FICC wallet in 2016 3 Includes <$100mm of net revenue opp
Slide 16: Corporate Offering and Financing Footprint
Corporate Offering and Financing Footprint Strengthening our corporate offering and financing footprint Leading M&A franchise Strategically targeting lending to corporate clients Continue to align resources to maximize value for our clients Year 3 net revenue opportunity $250mm+ Year 3 net revenue o
Slide 17: Attracting New Talent
Attracting New Talent We are focused on recruiting the best people FICC Lateral Hires by Function1 +2.0x 1 Includes Sales, Strats and Market-Making functions within FICC. All data as of August 3, 2017 FICC Lateral Hires by Region 2017YTD1 We have been an attractor of talent across functions and regi
Slide 18: Firmwide Opportunities
Goldman Sachs. Firmwide Opportunities
Slide 19: Lending and Financing Opportunity
Continue to prudently grow our lending portfolio Lending and Financing Opportunity Year 3 net revenue opportunity $2.0bn+ $5bn of incremental balance sheet supporting key growth areas including middle market lending, real estate, alternative energy and structured credit in growth markets Institution
Slide 20: Revenue Opportunities Throughout the Franchise
Revenue Opportunities Throughout the Franchise Year 3 net revenue opportunity $0.5bn+ Year 3 net revenue opportunity $1.0bn+ Year 3 net revenue opportunity $0.5bn+ Continue to strengthen our value proposition for equities clients Improved algorithms and smart order routing Access to liquidity source
Slide 21: Opportunities to improve our financial position
Opportunities to improve our financial position Continuing to Invest in our Franchise Firmwide lending and financing efforts2 Investment Banking coverage strategy Investment Management Close market share gaps with Asset Managers and Banks1 Increase in FICC client inventory financing Strengthen corpo
Slide 22: Appendix
Goldman Sachs. Appendix
Slide 23: Non-GAAP balance sheet allocation note
In addition to preparing our condensed consolidated statements of financial condition in accordance with U.S. GAAP, we prepare a balance sheet that generally allocates assets to our businesses, which is a non-GAAP presentation and may not be comparable to similar non-GAAP presentations used by other
Slide 24: Goldman Sachs Presentation to Barclays Financial Services Conference
Goldman Sachs Presentation to Barclays Financial Services Conference September 12, 2017 Harvey M. Schwartz President and Co-Chief Operating Officer
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