Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — Credit Suisse Financial Services Conference 2022
24 slides from Goldman Sachs Group, Inc. (the)'s conference presentation, Feb 17, 2022
Slide 1: Goldman Sachs Strategic Update
Goldman Sachs Strategic Update Credit Suisse Financial Services Conference David M. Solomon Chairman and Chief Executive Officer February 17, 2022
Slide 2: Clear Strategic Direction
Clear Strategic Direction 1 2 3 Grow and Strengthen Diversify our Operate More Existing Businesses Products and Services Efficiently
Slide 3: Client-Oriented Strategy Delivered Record 2021 Revenues
Client-Oriented Strategy Delivered Record 2021 Revenues ROE (%) Leading Peer1 ~150bps ex-litigation Net Revenues (bn) ROTE (%)2 15% ~400bps ex-litigation 13% 19% 10% 11% 23% 2019 2020 2021 $36.5 $44.6 $59.3 11% 12% 24% Book Value Per Share Growth (%) 1-Year 3-Years 5-Years 10-Years IPO (2Q99) GS 20%
Slide 4: Strong Progress Against Our Goals
Strong Progress Against Our Goals I N V E S T O R D A Y T A R G E T S >13% ROE Profitability >14% ROTE Efficiency & ~60% efficiency ratio Expenses $1.3bn efficiency plan Capital 13-13.5% CET1 ratio 2021 P R O G R E S S 23.0% ROE 24.3% ROTE1 53.8% efficiency ratio ~$1.0bn expense efficiencies 14.2% C
Slide 5: Premier Client Franchise Driving Share Gains and Growth
Premier Client Franchise Driving Share Gains and Growth Asset Investment Management Banking Clients Consumer & Wealth Global Management Markets O N E G O L D M A N S A C H S 2 0 1 9 – 2 0 2 1 W A L L E T S H A R E G R O W T H 1 +360bps +250bps Investment Banking Global Markets G R O W T H I N I T I
Slide 6: Investment Banking and Global Markets: Synergies Delivering Integrated Execution Solutions
1 Investment Banking and Global Markets: Synergies Delivering Integrated Execution Solutions Asset Investment Management Banking Clients Consumer & Wealth Global Management Markets Multiplier Effect Merger Advisory Activism and Defense Acquisition Bridge Financing Capital Markets Takeout Financing S
Slide 7: Investment Banking: Robust Backlog Combined with Strategic Growth Opportunities
1 Investment Banking: Robust Backlog Combined with Strategic Growth Opportunities + 30%+ More Clients Covered1 + +360bps Wallet Share Gains2 + Technology and Healthcare + Product Innovation ~$6bn <$1 $2 $1 $2 2010 – 2016 Median Revenues ~$8bn $1 $2 $1 $3 ~$12bn <$1 $3 $4 $4 2017 – 2019 Median Revenu
Slide 8: Global Markets: Solid Track Record and Strategic Growth
1 Global Markets: Solid Track Record and Strategic Growth 10-year CAGR: 8% $5bn $2bn $8bn $10bn $5bn $4bn $8bn $5bn Represents median, min and max 2012-2021 annual revenues $16bn 2020 – 2021 2019 – 2021 FICC Equities Illustrative Average Wallet Share Intermediation Intermediation Revenues Financing
Slide 9: Asset Management & Wealth Management: Integrated, Client-Oriented Businesses At Scale
2 Asset Management & Wealth Management: Integrated, Client-Oriented Businesses At Scale Asset Investment Management Banking Clients Consumer & Wealth Global Management Markets Top 5 Global Active Asset Manager 1 (Pro Forma for NNIP) . ~$2.8 trillion AUS Premier Ultra High Net Worth Franchise . 2 Tot
Slide 10: Asset Management & Wealth Management: Expanding From a Leading Position at Scale
2 Asset Management & Wealth Management: Expanding From a Leading Position at Scale Firmwide Management & Other Fees (bn) AUS $1.9 $2.1 ~$2.8 (tn) (Pro Forma for NNIP) $7.6 $6.7 $6.1 2019 2020 2021 F O R W A R D C A T A L Y S T S Workplace ï,§ Holistic financial planning Wealth programs for ~1.6mm em
Slide 11: Asset Management & Wealth Management: Targets
2 Asset Management & Wealth Management: Targets I N C R E A S I N G I N V E S T O R D A Y T A R G E T S $350bn $225bn Organic Traditional Gross Alternatives Long-Term Net Inflows1 Fundraising (2020 – 2024) (2020 – 2024) N E W T A R G E T S >$10bn Of> which: $2bn Firmwide Management Alternatives Mana
Slide 12: Transaction Banking: Significant Long-Term Growth Opportunity at Scale
2 Transaction Banking: Significant Long-Term Growth Opportunity at Scale L A R G E D I S R U P T I V E A N D R O E A C C R E T I V E A D D R E S S A B L E S C A L A B L E D I G I T A L A T S C A L E M A R K E T P L A T F O R M Market Size1 $150bn+ wallet Revenues $226mm ~$750mm 2021 2024 Target Clie
Slide 13: Consumer: Significant Long-Term Growth Opportunity at Scale
2 Consumer: Significant Long-Term Growth Opportunity at Scale L A R G E D I S R U P T I V E A N D R O E A C C R E T I V E A D D R E S S A B L E S C A L A B L E D I G I T A L A T S C A L E M A R K E T P L A T F O R M Market Size1 >$5tn ~$1tn U.S. deposits U.S. loans Revenues $1.5bn >$4bn 2021 2024 Ta
Slide 14: Flexible Cost Structure Enables Investments, Supports Returns
3 Flexible Cost Structure Enables Investments, Supports Returns Non-Compensation Disciplined expense management Focus on platforms and digitization Prioritization of investment spend Significant portion activity-related or discretionary 2 0 2 1 O P E R A T I N G E X P E N S E S ( $ 3 1 . 9 B N ) Com
Slide 15: Dynamic Capital Management
3 Dynamic Capital Management C A P I T A L M A N A G E M E N T P H I L O S O P H Y Prioritize deploying capital to support client activity and grow our businesses Continue to sustainably grow our dividend Return excess capital in the form of buybacks Stress Capital Buffer 6.4% G-SIB 2.5% Minimum 4.5
Slide 16: Driving Value for Shareholders
Driving Value for Shareholders M E D I U M—T E R M 1 F I R M W I D E T A R G E T S ROE ROTE Efficiency Ratio 14-16% 15-17% ~60% 2 0 2 4 B U S I N E S S T A R G E T S A S S E T M A N A G E M E N T & T R A N S A C T I O N C O N S U M E R W E A L T H M A N A G E M E N T B A N K I N G 2020 – 2024 2020 –
Slide 17: Successfully Executing Our Strategic Plan
Successfully Executing Our Strategic Plan Clients are at the center of our firm Operating with a growth mindset Well-positioned to execute given our unique competitive advantages Track record of driving returns and unlocking shareholder value 16
Slide 18: Goldman Sachs Strategic Update
Goldman Sachs Strategic Update Credit Suisse Financial Services Conference David M. Solomon Chairman and Chief Executive Officer February 17, 2022
Slide 19: Investor Day Targets and Selected KPI Progress
Investor Day Targets and Selected KPI Progress F I R M W I D E I N V E S T M E N T B A N K I N G G L O B A L M A R K E T S Medium-Term1 Initiative Progress >13% ROE 23.0% in 2021 >14% ROTE2 24.3% in 2021 17bps 30bps improvement in improvement in funding spreads funding spreads since YE19 $174bn rais
Slide 20: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on: Slide 2: 1. Per company filings. Peer set includes MS, JPM, BAC, C 2 Return on average common shareholders’ equity (ROE) is calculated by dividing net earnings applicable to common shareholders by average monthly
Slide 21: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on: Slide 4: 1. Data based on reported revenues for Advisory, Equity underwriting and Debt underwriting for Investment Banking and for FICC and Equities for Global Markets. Total wallet includes GS, MS, JPM, BAC, C, D
Slide 22: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on: Slide 6: 1. Represents increase in Investment Banking covered clients from 2017 – 2021 2. Wallet share gains 2019 – 2021. See end note 1 for slide 4 for further information Slide 7: 1. 2021 wallet share vs. 2019 w
Slide 23: End Notes
End Notes These notes refer to the financial metrics and/or defined term presented on: Slide 13: 1. Annual run-rate expense efficiencies from YE19 – YE21 Slide 15: 1. Medium-term refers to approximately 3 year time horizon 2. Traditional AUS represents fixed income and equity assets Slide 18: 1. Med
Slide 24: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements Statements about the firm’s target metrics, including its target ROE, ROTE, efficiency ratio and CET1 capital ratios, and how they can be achieved, and statements about future operating expense (including future litigation expense), efficiency ratio targ
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