Goldman Sachs : 2Q24 Earnings Presentation

Second Quarter 2024 Earnings Results Presentation

July 15, 2024

Results Snapshot

Net Revenues		Net Earnings		EPS
2Q24	$12.73 billion	2Q24	$3.04 billion	2Q24	$8.62
2Q24 YTD	$26.94 billion	2Q24 YTD	$7.18 billion	2Q24 YTD	$20.21
Annualized ROE1	Annualized ROTE1	Book Value Per Share
2Q24	10.9%	2Q24	11.6%	2Q24	$327.13
2Q24 YTD	12.8%	2Q24 YTD	13.8%	YTD Growth	4.3%

Quarterly Highlights

#1 in announced and completed M&A2;

2nd highest net revenues in Equities financing and in FICC financing

Record Management and other fees of $2.54 billion

Record AUS3 of $2.93 trillion;

26th consecutive quarter of long-termfee-based net inflows

Increased quarterly dividend by 9% to $3.00 per common share in 3Q24

Selected Items and FDIC Special Assessment Fee4

$ in millions, except per share amounts		2Q24		2Q24 YTD
Pre-tax earnings:
AWM historical principal investments5	$	164	$	332
GreenSky		3		(21)
General Motors (GM) Card		(58)		(118)
FDIC special assessment fee		(19)		(97)
Total impact to pre-tax earnings	$	90	$	96
Impact to net earnings	$	70	$	75
Impact to EPS	$	0.21	$	0.22
Impact to ROE		0.3pp		0.1pp	1

Financial Overview

Financial Results

								vs.
	$ in millions,		2Q24	vs.	vs.		2Q24	2Q23
	except per share amounts		1Q24	2Q23		YTD	YTD
	Global Banking & Markets	$	8,184	(16)%	14%	$	17,910	15%
	Asset & Wealth Management		3,878	2%	27%		7,667	22%
	Platform Solutions		669	(4)%	2%		1,367	12%
	Net revenues		12,731	(10)%	17%		26,944	17%
	Provision for credit losses		282	(11)%	(54)%		600	35%
	Operating expenses		8,533	(1)%	-		17,191	1%
	Pre-tax earnings	$	3,916	(25)%	126%	$	9,153	60%

Financial Overview Highlights

• 2Q24 results included EPS of $8.62 and ROE of 10.9%
• • 2Q24 net revenues were higher YoY, reflecting higher net revenues in Global Banking & Markets and Asset & Wealth Management
  • 2Q24 provision for credit losses was $282 million, reflecting net provisions related to the credit card portfolio (driven by net charge-offs)
  • 2Q24 operating expenses were essentially unchanged YoY, reflecting decreases driven by an impairment of goodwill related to Consumer platforms in 2Q23 and significantly lower impairments related to consolidated real estate investments, offset by increases from higher compensation and benefits expenses (reflecting improved operating performance) and higher transaction based expenses

Net Revenues by Segment ($ in millions)

	Net earnings	$	3,043	(26)%	150%	$	7,175	61%
	Net earnings to common	$	2,891	(26)%	170%	$	6,822	64%
	Diluted EPS	$	8.62	(26)%	180%	$	20.21	70%
	ROE1		10.9%	(3.9)pp	6.9pp		12.8%	5.0pp
	ROTE1			11.6%	(4.3)pp	7.2pp		13.8%	5.3pp
	Efficiency Ratio3		67.0%	6.1pp	(11.4)pp		63.8%	(9.5)pp

$12,731

$8,184

$3,878

$669

$14,213

$9,726

$3,789

$698

$10,895

	Global Banking
	& Markets
$7,189	Asset & Wealth
	Management
	Platform
$3,047	Solutions
	$659

2Q24	1Q24	2Q23	2

Global Banking & Markets

Financial Results

							vs.
			vs.	vs.		2Q24	2Q23
$ in millions	2Q24	1Q24	2Q23		YTD	YTD
Investment banking fees	$	1,733	(17)%	21%	$	3,813	27%
FICC		3,180	(26)%	17%		7,503	13%
Equities		3,169	(4)%	7%		6,480	8%
Other		102	750%	26%		114	N.M.
Net revenues		8,184	(16)%	14%		17,910	15%
Provision for credit losses		(55)	N.M.	N.M.		41	(78)%
Operating expenses		5,075	(2)%	19%		10,228	15%

Global Banking & Markets Highlights

• 2Q24 net revenues were higher YoY
• • Investment banking fees reflected significantly higher net revenues in Debt underwriting, higher net revenues in Equity underwriting and slightly higher net revenues in Advisory
  • FICC reflected higher net revenues in intermediation and significantly higher net revenues in financing
  • Equities reflected higher net revenues in intermediation, partially offset by slightly lower net revenues in financing
• Investment banking fees backlog3 increased significantly QoQ, driven by Advisory and Debt underwriting
• 2Q24 select data3:
• • Total assets of $1.40 trillion
  • Loan balance of $123 billion
  • Net interest income of $815 million

Global Banking & Markets Net Revenues ($ in millions)

Pre-tax earnings	$	3,164	(29)%	11%	$	7,641	17%
Net earnings	$	2,458	(30)%	18%	$	5,990	18%
Net earnings to common	$	2,338	(31)%	18%	$	5,715	18%
Average common equity	$	76,071	1%	7%	$	75,424	7%
Return on average common equity		12.3%	(5.7)pp	1.2pp		15.2%	1.4pp

$8,184

$1,733

$3,180

$3,169

$102

$9,726

$2,080

$4,323

$3,311

$12

$7,189			Investment
$1,431			banking fees
		FICC
$2,711			Equities
			Other
$2,966
	$81

2Q24	1Q24	2Q23	3

Global Banking & Markets - Net Revenues

Net Revenues

							vs.
			vs.	vs.		2Q24	2Q23
$ in millions		2Q24	1Q24	2Q23		YTD	YTD
Advisory	$	688	(32)%	7%	$	1,699	16%
Equity underwriting		423	14%	25%		793	34%
Debt underwriting		622	(11)%	39%		1,321	38%
Investment banking fees		1,733	(17)%	21%		3,813	27%
FICC intermediation		2,330	(33)%	12%		5,801	8%
FICC financing		850	-	37%		1,702	34%
FICC		3,180	(26)%	17%		7,503	13%
Equities intermediation		1,786	(10)%	17%		3,775	15%
Equities financing		1,383	5%	(3)%		2,705	-
Equities		3,169	(4)%	7%		6,480	8%
Other		102	750%	26%		114	N.M.
Net revenues	$	8,184	(16)%	14%	$	17,910	15%

Global Banking & Markets Net Revenues Highlights

• 2Q24 Investment banking fees were significantly higher YoY
• • Advisory net revenues were slightly higher
  • Equity underwriting primarily reflected an increase in convertible and initial public offerings
  • Debt underwriting primarily reflected a significant increase in leveraged finance activity
• 2Q24 FICC net revenues were higher YoY
• • FICC intermediation reflected significantly higher net revenues in interest rate products and currencies and higher net revenues in mortgages, partially offset by significantly lower net revenues in commodities and lower net revenues in credit products
  • FICC financing reflected significantly higher net revenues from mortgages and structured lending
• 2Q24 Equities net revenues were higher YoY
• • Equities intermediation reflected significantly higher net revenues in derivatives, partially offset by lower net revenues in cash products
  • Equities financing reflected significantly lower net revenues from portfolio financing, largely offset by significantly higher net revenues from prime financing

4

Asset & Wealth Management

Financial Results

							vs.
			vs.	vs.		2Q24	2Q23
$ in millions		2Q24	1Q24	2Q23		YTD	YTD
Management and other fees:
Asset management	$	1,099	(1)%	7%	$	2,212	7%
Wealth management		1,437	7%	8%		2,776	8%
Total Management and other fees		2,536	3%	8%		4,988	8%
Incentive fees		46	(48)%	84%		134	72%
Private banking and lending		707	4%	(19)%		1,389	13%
Equity investments		292	32%	N.M.		514	N.M.
Debt investments		297	(14)%	51%		642	6%
Net revenues		3,878	2%	27%		7,667	22%
Provision for credit losses		(58)	(164)%	N.M.		(80)	85%
Operating expenses		3,037	4%	(7)%		5,971	(7)%
Pre-tax earnings	$	899	3%	N.M.	$	1,776	380%
Net earnings	$	700	1%	N.M.	$	1,392	383%
Net earnings to common	$	673	3%	N.M.	$	1,326	489%
Average common equity	$	26,058	(2)%	(16)%	$	26,213	(18)%
Return on average common equity		10.3%	0.4pp	13.4pp		10.1%	8.7pp

Asset & Wealth Management Highlights

• 2Q24 net revenues were higher YoY
• • Management and other fees primarily reflected the impact of higher average AUS
  • Private banking and lending net revenues reflected the impact of the sale of the Marcus loans portfolio in 2023 (including a gain of approximately $100 million related to the sale of substantially all of the remaining Marcus loans portfolio in 2Q23)
  • Equity investments primarily reflected net gains from real estate investments compared with significant net losses in 2Q23
  • Debt investments reflected significantly lower net losses from real estate investments, partially offset by significantly lower net interest income due to a reduction in the Debt investments balance sheet
• 2Q24 YTD pre-tax margin of 23%
• 2Q24 select data3:
• • Total assets of $193 billion
  • Loan balance of $44 billion, of which $34 billion related to Private banking and lending
  • Net interest income of $723 million
  • Total Wealth management client assets6 of ~$1.5 trillion

Asset & Wealth Management Net Revenues ($ in millions)

$3,878			$3,789	$3,047				Management and
									other fees
									Incentive
$2,536			$2,452						fees
		$2,354				Private banking
									and lending
		$46			$88				Equity
$707		$682			$25		investments
		$874			Debt
$292			$222				investments
				$197
$297			$345
				$(403)
2Q24	1Q24		2Q23				5

Asset & Wealth Management - Assets Under Supervision

AUS Highlights3

• During the quarter, AUS increased $86 billion to a record $2.93 trillion
• • Net inflows across all asset classes
  • Net market appreciation in equity assets
• Total AUS net inflows of $71 billion during the quarter, of which:
• • $45 billion of net inflows in Third-party distributed client channel
  • $17 billion of net inflows in Institutional client channel
  • $9 billion of net inflows in Wealth management client channel

AUS Rollforward3

$ in billions		2Q24		1Q24		2Q23
Beginning balance	$	2,848	$	2,812	$	2,672
Long-term AUS net inflows / (outflows)		31		24		8
Liquidity products		40		(39)		4
Total AUS net inflows / (outflows)		71		(15)		12
Acquisitions / (dispositions)		-		-		-
Net market appreciation / (depreciation)		15		51		30
Ending balance	$	2,934	$	2,848	$	2,714

AUS by Asset Class3

	$ in billions		2Q24		1Q24		2Q23
	Alternative investments	$	314	$	296	$	267
	Equity		735		713		627
	Fixed income			1,147		1,141		1,056
	Long-term AUS			2,196		2,150		1,950
	Liquidity products			738		698		764
	Total AUS		$	2,934	$	2,848	$	2,714

AUS by Client Channel3

	$ in billions		2Q24		1Q24		2Q23
	Institutional	$	1,063	$	1,048	$	955
	Wealth management		865		845		772
	Third-party distributed		1,006		955		987
	Total AUS	$	2,934	$	2,848	$	2,714

	2Q24 AUS by Region and Vehicle3
7%			13%
23%
Region	70%	31%	Vehicle 56%

6

Asset & Wealth Management - Alternative Investments

Alternative Investments Highlights3

• 2Q24 Management and other fees from alternative investments were $548 million, up 5% compared with 2Q23
• During the quarter, alternative investments AUS increased $18 billion to $314 billion
• 2Q24 gross third-party alternatives fundraising across strategies was $22 billion, including:
• • $9 billion in corporate equity, $4 billion in credit, $4 billion in real estate and $5 billion in hedge funds and other
  • $287 billion raised since the end of 2019
• During the quarter, on-balance sheet alternative investments declined by $3.3 billion to $40.7 billion
• • Historical principal investments5 declined by $2.2 billion to $12.6 billion (attributed equity of $5 billion) and included $2.5 billion of loans, $3.1 billion of debt securities, $3.6 billion of equity securities and $3.4 billion of CIE investments and other

Alternative Investments AUS and Effective Fees3

		2Q24
$ in billions		Average AUS	Effective Fees (bps)
Corporate equity	$	115		76
Credit		56		70
Real estate		25		54
Hedge funds and other		70		59
Funds and discretionary accounts		266		68
Advisory accounts		38		18
Total alternative investments AUS	$	304		62

On-Balance Sheet Alternative Investments3

$ in billions		2Q24
Loans	$	10.2
Debt securities		9.8
Equity securities		13.5
CIE investments and other7			7.2
Total On-B/S alternative investments		$	40.7
$ in billions		2Q24
Client co-invest	$	19.6
Firmwide initiatives / CRA investments		8.5
Historical principal investments5		12.6
Total On-B/S alternative investments	$	40.7
Historical Principal Investments Rollforward
$ in billions		2Q24
Beginning balance	$	14.8
Net mark-ups /(mark-downs)		-
Additions		0.2
Dispositions / paydowns8		(2.4)
Net change	$	(2.2)
Ending balance	$	12.6

7

Platform Solutions

Financial Results

							vs.
			vs.	vs.		2Q24	2Q23
$ in millions		2Q24	1Q24	2Q23		YTD	YTD
Consumer platforms	$	599	(3)%	4%	$	1,217	14%
Transaction banking and other		70	(13)%	(15)%		150	(4)%
Net revenues		669	(4)%	2%		1,367	12%
Provision for credit losses		395	62%	(27)%		639	(21)%
Operating expenses		421	(26)%	(57)%		992	(38)%
Pre-tax earnings / (loss)	$	(147)	(26)%	83%	$	(264)	78%
Net earnings / (loss)	$	(115)	(25)%	83%	$	(207)	77%

Platform Solutions Highlights

• 2Q24 net revenues were slightly higher YoY
• • Consumer platforms reflected higher average credit card balances and higher average deposit balances, largely offset by the impact of the sale of GreenSky in 1Q24
  • Transaction banking and other reflected lower average deposit balances
• 2Q24 provision for credit losses of $395 million reflected net provisions related to the credit card portfolio (driven by net charge-offs)
• 2Q24 select data3:
• • Total assets of $61 billion
  • Loan balance of $17 billion
  • Net interest income of $704 million

Platform Solutions Net Revenues ($ in millions)

Net earnings / (loss) to common	$	(120)	(21)%	82%	$	(219)	76%
Average common equity	$	4,347	(8)%	8%	$	4,552	15%
Return on average common equity		(11.0)%	(2.6)pp	55.8pp		(9.6)%	37.1pp

$669	$698	$659

$599	$618	$577

$70	$80	$82
2Q24	1Q24	2Q23

Consumer platforms

Transaction banking and other

8

Loans and Net Interest Income

Loans and Net Interest Income Highlights3

• 2Q24 loans were unchanged QoQ
• • Gross loans by type: $180 billion - amortized cost, $6 billion - fair value, $3 billion - held for sale
  • Average loans of $184 billion
  • Total allowance for loan losses and losses on lending commitments was $5.46 billion ($4.81 billion for funded loans)

• • 1. $3.07 billion for wholesale loans, $2.39 billion for consumer loans
  • Net charge-offs of $359 million for an annualized net charge-off rate of 0.8%
  • 1. 0.0% for wholesale loans, 8.4% for consumer loans
• 2Q24 net interest income increased 33% YoY, reflecting an increase in higher-yielding assets and a shift towards non-interest-bearing liabilities
• • 2Q24 average interest-earning assets of $1.56 trillion

Loans by Segment3 ($ in billions)

$184	$184	$178
$123	$122	$110
$44	$45	$49
$17	$17	$19
2Q24	1Q24	2Q23

Global Banking & Markets

Asset & Wealth Management

Platform

Solutions

Loans by Type3

$ in billions

2Q24

1Q24

2Q23

Metrics

2.7%

Net Interest Income by Segment ($ in millions)

Corporate	$	35	$	36	$	38
Commercial real estate		27		27		28
Residential real estate		24		24		24
Securities-based lending		15		14		15
Other collateralized lending		67		67		54
Installment		-		-		5
Credit cards		19		19		17
Other		2		2		2
Allowance for loan losses		(5)		(5)		(5)
Total loans	$	184	$	184	$	178

ALLL to Total

Gross Loans, at Amortized Cost

1.5%

ALLL to Gross

Wholesale Loans, at

Amortized Cost

13.5%

ALLL to Gross

Consumer Loans, at

Amortized Cost

~80%

Gross Loans

Secured

$2,242
$815	$1,608	$1,684
	$202
	$243
$723	$691	$821
$704	$674	$661
2Q24	1Q24	2Q23

Global Banking

& Markets

Asset & Wealth

Management

Platform

Solutions

9