Goldman Sachs Group, Inc. (the) · NYSE:GS
Goldman Sachs Group, Inc. (the) — The Goldman Sachs Group — Debt Investor Presentation (May 2021)
19 slides from Goldman Sachs Group, Inc. (the)'s debt investor presentation, May 13, 2021
Slide 1: Fixed Income Investor Presentation
Fixed Income Investor Presentation Beth Hammack, Global Treasurer May 13, 2021
Slide 2: Macro Backdrop
Macro Backdrop Recent Developments Equity Markets Central banks remained accommodative with the Federal 1Q21 (QoQ %Δ) Reserve and Bank of England holding short-term rates near 0% S&P 500 MSCI World U.S. federal government passed additional $1.9 trillion in fiscal stimulus Improving GDP and unemploym
Slide 3: Strong Financial Position
Strong Financial Position 1Q21 Financial Position Average GCLA Standardized Gross Leverage (% of Average Total Assets) CET1 Ratio 13.3x $299bn 14.3% (24%) 2
Slide 4: Solid 2020 Performance and Historical Earnings Stability
Solid 2020 Performance and Historical Earnings Stability Revenue & Pre-Tax Earnings Net Revenues Return on Equity Volatility1 (2010-2020) Impact of Litigation 42% $45bn FY19 -1.5pp Mid-Teens+ FY20 -3.9pp >13.0% $37bn 11.1% 10.0% 17% 11% 10% FY19 FY20 FY19 FY20 Medium-Term Long-Term Revenue Pre-Tax E
Slide 5: Balance Sheet Dynamics
Balance Sheet Dynamics Asset Growth ($bn) Loan Growth vs. Deposit Growth Deposits ($bn) $1,302 $286 Key Growth Drivers $190 +$96bn $993 (vs. 4Q19) Prime Brokerage 4Q19 1Q21 Reverse Repo Loans ($bn) Liquidity (Cash) $109 $121 +$12bn (vs. 4Q19) 4Q19 1Q21 4Q19 1Q21 Prudently deployed our balance sheet
Slide 6: Funding Strategy & Sources
Funding Strategy & Sources Key Tenets of Our Strategy Funding Sources Shareholders' Equity Unsecured 1 Further diversify funding mix via deposits 11% Long-Term Debt 26% Secured Funding 23% $854bn As of 1Q21 2 Enhance Asset-Liability management Unsecured Short-Term Debt 7% Deposits 33% 3 Optimize liq
Slide 7: Deposit Growth
Deposit Growth Strong Inflows Driven by Strategic Channels ($bn) Proven Ability to Reprice & Retain Deposits $286 $100 2.50% $96 $97 $92 2.25% 28% $190 $72 $60 $55 38% $50 $46 72% 62% 0.50% 0.25% 4Q19 1Q21 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Strategic Channels1 Other Fed Funds Rate (Upper E
Slide 8: Embracing Our Bank Entities
Embracing Our Bank Entities Growing Assets in Bank Entities GS Bank USA: Balance Sheet (1Q21) Assets in Bank Entities1 Assets Cash 2 34% Other 12% Investments 8% Trading Loans 4Q17 4Q18 4Q19 4Q20 1Q21 Assets 32% 14% GS Bank GSIB GSBE % of Firm Assets in Bank Entities (1Q21)1 Liabilities & Shareholde
Slide 9: Unsecured Benchmark Funding
Unsecured Benchmark Funding Expect FY21 benchmark issuance to outpace 2021YTD1 Benchmark Debt Issuance by Currency benchmark maturities and redemptions GBP amid prime market share consolidation CAD 3% 6% In 2021YTD1, we issued $31.2bn of benchmark debt Diversified across tenor, currency, channel,
Slide 10: Sustainability Bond Issuance Framework
Sustainability Bond Issuance Framework Sustainable Finance Commitment Sustainability Bond Target Inaugural Issuance $750bn $800mm Financing, investing, and advisory activities by 2030 Sustainability Bond Issuance in 1Q21 2020 Progress Robust Framework Climate Inclusive Integrated with $750bn sustain
Slide 11: Unsecured Non-Benchmark & Secured Funding
Unsecured Non-Benchmark & Secured Funding As part of our broader non-deposit funding strategy, we strive for a diversified funding mix across various products, issuing entities, currencies, tenors and investor types Unsecured Non-Benchmark Funding Secured Funding Structured debt (~$81bn as of 1Q21)
Slide 12: Asset Liability Management: Interest Rate Risk
Asset Liability Management: Interest Rate Risk While our balance sheet is modestly asset sensitive, Net Interest Income (NII) remains a relatively small portion of our revenues Net Interest Income ($bn) NII Contribution vs. Peers (FY20) As % of Net Revenues $4.8 $4.4 59% $3.8 Average: 52% 51% 46% $1
Slide 13: LIBOR Transition
LIBOR Transition We are committed to ensuring a seamless transition for our clients, the marketplace and our firm Outstanding Benchmark Debt and Preferred LIBOR Transition Timeline Stock Referencing USD LIBORs ($bn) November 30, 2020: LIBOR’s administrator announced an extension to As of 1Q21 the pu
Slide 14: Liquidity Risk Management
Liquidity Risk Management Average Liquidity Coverage Ratio Trend Solid Liquidity Positioning 144% 138% Well in excess of LCR requirements 131% 130% 128% 126% 123% 118% 120% 117% Eligible HQLA composed almost entirely of Level 1 assets Highly liquid balance sheet with average GCLA of $299bn for
Slide 15: Strong Capital & Leverage Position
Strong Capital & Leverage Position Standardized CET1 Ratio Supplementary Leverage Ratio (1Q21) 8.8% (0.8%) 14.3% 2.4% 1.8% 6.5% 13.6% 13.3% 13-13.5% 0.8% 6% min. 5% min. Meaningful capital build, while supporting client needs throughout the GS GS pandemic Group Bank 1 Buffer excluding 70bps 40bps 4Q
Slide 16: Conclusion: Credit-Positive Strategic Direction
Conclusion: Credit-Positive Strategic Direction Grow and Strengthen Diversify Our Products Operate More Existing Businesses and Services Efficiently Driving Credit Positives Improved capital More stable, durable Increased Enhanced franchise efficiency and enhanced revenues and earnings diversificati
Slide 17: Fixed Income Investor Presentation
Fixed Income Investor Presentation Beth Hammack, Global Treasurer May 13, 2021
Slide 18: End Notes
End Notes Note: All data as of the end of 1Q21, unless otherwise indicated These notes refer to the financial metrics and/or defined term presented on: Slide 1: 1. GIR represents Goldman Sachs Global Investment Research Slide 3: 1. Annual revenue volatility is calculated by dividing the standard dev
Slide 19: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements Statements about GDP growth, unemployment expectations, future bond yields and inflation, the firm’s target metrics, including its target ROE, ROTE, efficiency ratio, CET1 capital ratios, and statements about its other future regulatory capital metrics,
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