Your SlideShare is downloading. ×
  • Like
Goldman Sachs Presentation at the Credit Suisse 2009 Financial Services Conference
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Goldman Sachs Presentation at the Credit Suisse 2009 Financial Services Conference

  • 995 views
Published

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
995
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
22
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Cautionary Note on Forward-Looking Statements Today’s presentation may include forward-looking statements. These statements represent the Firm’s belief regarding future events that, by their nature, are uncertain and outside of the Firm’s control. The Firm’s actual results and financial condition may differ, possibly materially, from what is indicated in those forward-looking statements. For a discussion of some of the risks and factors that could affect the Firm’s future results and financial condition, please see the description of “Risk Factors” in our current annual report on Form 10-K for our fiscal year ended November 2008. You should also read the information on the calculation of non-GAAP financial measures that is posted on the Investor Relations portion of our website: www.gs.com. The statements in the presentation are current only as of its date, February 4, 2009.
  • 2. Goldman Sachs Presentation to 2009 Credit Suisse Financial Services Conference David Viniar Chief Financial Officer February 4, 2009
  • 3. 2008 Highlights Net Revenues $22.2 bn Net Earnings $2.3 bn EPS $4.47 Return on Equity 4.9% Return on Tangible Equity 5.5% BV per share $98.68
  • 4. The Year in Context1 Performance Excluding Fair Value Losses and CVA $8,914 27% 25% 21% 12% ($mm) ROTE $4,245 $2,876 $2,532 1Q08 2Q08 3Q08 4Q08 Cumulative Fair Value Losses Annualized ROTE Excluding FV Losses and CVA 1 Pro forma analysis excludes results from Principal Investments, leveraged loans, and residential and commercial real estate and is net of CVA gains from the impact of our wider credit spreads on certain long-term debt. These results are adjusted for taxes and compensation.
  • 5. Investment Banking 2003-2008 Contribution to Firmwide Net Revenues #1 Ranked in Global M&A1 Securities Growth in Non-League Table Services Investment 7% Banking Business 17% Integrated Client Service Model Asset FICC Management 12% 34% Dominant Financial Institutions Franchise Principal Investments Equities 4% 26% 1 Announced M&A based on Thomson Financial data on a calendar year basis
  • 6. Fixed Income Currency & Commodities 2003-2008 Contribution to Firmwide Net Revenues Strength of macro businesses Securities Integrated platform Services Investment 7% Banking 17% Asset FICC Management 34% 12% Principal Investments Equities 4% 26% 2005 2006 2007 2008 Commodities Currencies Interest Rate Products
  • 7. Equities 2003-2008 Contribution to Firmwide Net Revenues Strong customer facing franchise Securities Market leading electronic trading Services Investment 7% Banking platform 17% Best in class execution from high Asset Management FICC 34% to low touch 12% Principal Investments Equities 4% 26%
  • 8. Principal Investments 2003-2008 Contribution to Firmwide Net Revenues Committed to co-investing with our clients Securities Services Investment 7% Banking Successful long-term investment 17% performance Asset Management FICC 34% $12bn raised in 2008 12% Principal Investments Equities 4% 26%
  • 9. Asset Management and Securities Services 2003-2008 Contribution to Firmwide Net Revenues Asset Management Securities  Solid investment Services Investment 7% Banking performance and diversified 17% product offerings Asset Management FICC 34% Securities Services 12%  Front-to-Back service offering  Extensive securities lending Principal Investments Equities 4% 26% relationships  Advanced client facing technology platforms
  • 10. Risk Management Reduction in Key Risk Exposures1 ($bn) $77.7 $19.0 $20.3 $8.6 $15.7 $17.0 $7.7 $24.1 $53.6 $43.0 $10.9 $5.2 $8.0 $6.2 2007YE 1Q08 2Q08 3Q08 4Q08 2008YE Cumulative Net Marks Reduction in Exposure Leveraged Residential Real Commercial Real Exposure Loans Estate Estate Reductions 1 Key Risk Exposures include leveraged loans, commercial real estate, residential real estate
  • 11. Capital Management- Growth in Book Value Book Value per Common Share $98.68 $90.43 R 19% C AG $72.62 $57.02 $50.77 $43.60 $36.33 $38.69 $32.18 $20.94 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
  • 12. Conservative Financial Positioning Balance Sheet Total Assets and Adjusted Assets ($bn) Leverage and Adjusted Leverage 27.9x (21)% 24.3x 23.7x 18.6x 42% Decrease $1,189 $1,120 14.7x $1,082 13.7x 13.7x $1,088 $885 8.2x $746 $787 $651 $622 40% Decrease $528 4Q07 1Q08 2Q08 3Q08 4Q08 1Q08 2Q08 3Q08 4Q08 Gross Leverage Adj. Leverage Adjusted Assets Total Assets
  • 13. Conservative Financial Positioning Capital and Key Risk Exposures Key Risk Exposures Tier 1 Ratio1 Relative to Capital2 15.6% 224% 400bps Increase % of Tangible Common Equity 167% 134% 11.6% 10.8% 85% 56% 2Q08 3Q08 4Q08 4Q07 1Q08 2Q08 3Q08 4Q08 1 Tier 1 Ratio calculated under the Basel II framework as it applied to us when we were regulated as a CSE 2 Key Risk Exposures include leveraged loans, commercial real estate, residential real estate
  • 14. Conservative Financial Positioning Liquidity 19.3% 17.7% 12.2% 9.5% 8.0% $113 $111 $88 $69 $61 1 1 4Q07 1Q08 2Q08 3Q08 4Q08 Average GCE Average GCE as % of average Adjusted Assets 1 3Q08 and 4Q08 GCE includes balances held at GS Bank
  • 15. Conservative Financial Positioning Funding Model Unsecured Short-Term Short- Unsecured Long-Term Long- Secured Funding: $119bn Funding: $53bn Funding: $168bn Other CP GBP CAD Secured Other 2% 1% Debt AUD 3% 1% 9% 1% JPY 5% Prom Notes Other Loans 13% 12% 8% Liquid Gov'ts, Current Agencies, LTD EUR MBS 50% 28% Equities USD 42% 61% 26% Hybrid Debt Other 23% Fixed Income Securities 15%
  • 16. Future Opportunities Looking Beyond 2008 • Integrated Business Model • Leveraging Investment Banking, Securities Division and Principal Investing • Ability to Commit Capital • Market Making • Financing • Distressed Investing • Market Share Expansion • Investment Banking, Securities Division, Private Wealth Management
  • 17. Goldman Sachs Presentation to 2009 Credit Suisse Financial Services Conference David Viniar Chief Financial Officer February 4, 2009