The Goldman Sachs Group, Inc. (GS) 15 Oct 212021 Q3 Earnings call transcript

Good morning. My name is Erica and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs Third Quarter 2021 Earnings Conference Call. This call is being recorded today, October 15, 2021. Thank you. Ms. your begin may you conference. Halio,

reference Group is Good www.gs.com. appear the Relations Conference copyrighted David. I'm Financial This Investor release Head Officer, which Note not of will let our material Investor and earnings Relations measures page audio website incoming pass on Halio, Goldman morning. Sachs rebroadcast Call. consent. be Sachs. may at on our Officer, we call Earnings duplicated, Goldman information our Chairman is This our that, and joined non-GAAP at Quarter me the CFO, Welcome or of Third forward-looking reproduced in presentation, and our Chief cast Scherr, Carey the David to Solomon, Executive found be Coleman earnings the presentation. Dennis With our of and by to Stephen Today and without Chief can our today statement (ph).

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been reporting our footing. it's time months, results solid in and with and conversations travel over able to is very last person, invigorating. spend client today, to we're with my clients few on the addition, clients, been employees that also In then the clear franchise In which has I've our around

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August, in our in Asset and leading help the under distribution partners. us supervision on The Manager $XXX investment then of bolster acquisition of capabilities. European announced a addition network First management assets in asset scale ESG our achieve the enhance platforms, we billion continent, and will our greater

of supply a supports sectors includes mechanism require activity carbon. It commitment clients put happen on overnight. public This inclusive ESG, sustainable to our partnering to price balance in the towards drive the This recognizing that view to fossil help transition of the cost On includes mix topic as a advisory like goals. is this growth. sustainable to COP This private target climate developing of given My later the month the underscore deliberate we're it the face. financing, the the making prepared to energy won't do a to public the the the to the we we Glasgow in firm's for policy investing to near that good and and transition would complex across our and more to both future. Agreement. help will fuels constraints between strike a consequences And leaders with goals remain and of businesses critical part. that of will these their working And for is our convene XX, achieve [Indiscernible] part future, progress policy I of that is businesses, on world transition need the billion markets $XXX our and and deliver

broader future, build of GreenSky, acquisition acquisition furthers the impressive quality provides that transaction network secularly consumer of are to XX% bank expect via This our a credit XX, announced with a channel our and an high of that and the in returns And growing efforts customer our the attractive plus recurring merchants market, income September. with in that's we over platform. with an our XXX scale and revenues. business product platform which we funding digital model, infrastructure addition for fee-based Xnd to consumer with Our banking net synergistic interest cloud-based generate at capabilities

help these them customers. live in financial ecosystem lives. we can They customers our will the will manage be Importantly, market's where their holistically

our X presentation, page we billion produced to driven business X revenues of by $XX.X X our of in net of Turning segments. increases year-on-year

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of $XX higher ROE in an of and an earnings results revenues than drove our XX%. any year-to-date XX.X of nearly of are full-year and and ROT XX% history, nearly over net over billion Our billion

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with and Sachs activity our for elevated financing markets Our assets driving We another market global M&A clients continue we of solid extremely in Goldman X.X trillion, record active, share strategic to to levels. supervision, franchise, leading of a solutions. will which they who under acquisition. results associated as IP delivered and by to are turned engage broader further NN In did clients array focus the be on on Asset enhanced management,

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page speaking, turn now a around operating increasing the still to there uncertainty me X. environment of current fundamentals, Broadly factors. Let solid has is but number

rising effects hand, all-time believe world. fiscal the near policy past equity one that technology the said, rates and number pandemic's of there I we around markets continues That paying further attention close areas of the still are of the being are On virus. And and COVID-XX vaccines remains accommodative, monetary uncertainty highs. against are to. on the as vaccination likely to emerging are will make economy. a the behind the global improve, progress worst we're we

First, inflation, of inflation the particularly in wage the trajectory term. short

Second, the remains Delta significant uncertainty variant. around the

in policy, And additional ongoing including for the the longer-term is deals, debate complicated. fourth, debt relationship U.S. potential there remains the federal political over extension the tax infrastructure the and U.S.-China increases. of economic Third, ceiling

together, potential to a items headwind these have Taken to be the growth.

backdrop, our hear the how As in of capabilities. further revision the high-quality indicated market clients they differentiated consistently earlier week. by service provide, expectations the value our from this especially U.S.-GDP we downward and Regardless I advise much execution economists,

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years. be thank XXXXs, I progressing grateful banking as and an I of X his have for financing In co-head Denis over Goldman Before XX positions for turn of CFO recently service more group. Stephen veteran and it January, numerous since close, to seat. work Coleman, leadership that, previously, the couldn't last in a most which would firm. Stephen of the enjoyed we to XX-year the almost for I to working XX toward like privilege a will early I decades to Stephen. over held had as counsel He transition be nearly friendship and With Sachs, years seamless will close announced the relationship succeeded with are investment Stephen by Stephen his and I've with the

all Good on morning Thank the you you, of David. to call.

generated the and community We all-time you, fourth turn and all to and M&A CFO. to I equity say briefly thoroughly industry results, analyst underwriting, the three with and and me momentum I'm number with half. million over quarter to volumes the in pleased X. as trillion and strong as produced levels has past with shareholders, to closely the in $X.X the banking, start excess expansion of The activity. Underwriting of is of $X.X geographies first revenues remain financing our XX%. deals, volume that announced quarterly of enjoyed the performance significant strong more opportunity issuance, have years competitive by and Before consecutive our representing long high. relative in the market. ranked a strength billion. off that from robust I year-to-date let elevated acquisition position. experience transactions position second-highest today. as of increased starting On the across league was well call elevated In committed participating of share sponsors of performance am our billion a its reflection market $XXX who, a X Dennis, both healthcare, with table that Investment our normalized very supported strategic facilitating me a net billion underwriting billion. were with by billion which were our page financial net active maintained activity year-to-date, exceptionally the share joined the banking with footprint revenues consistency on I debt continued of results Investment to yield, $X.X in And activity with an revenues hand as XXX excess notwithstanding segment, in in our number high in and share who enjoyed TMT our smooth advisory to results, solid, represents begin market for Equity of performance Carey to on with revenues position Financial volume of let $X.X benefited activity noted, revenues, us for were who's work XXX business leading investment-grade market globally one particular XX%. in groups, has dollars $X a across in underwriting We market with in client

our target activity middle-market of of $XXX date. book, to than quarter expect among significant goal the levels. reflected results financing ahead high. Given well banking, of achieved in transaction and million revenues M&A healthy quarter, transactions, loan relationship lending remain ended hedges. Despite we In sponsors, the backlog, the year-end banking levels nonetheless this current announcements, we our of significantly completed and X-year levels deposits Corporate the investment activity acquisition continued of associated from higher banking, transaction lending, billion $XX including financial

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XXXX treatment. by with disclosure we progress sheet accounting CIE of region, implied operating $X have our XXXX longer time Additionally, to on early $X and additions of $X is in page The with related billion fund billion harvesting we X, commitments. composition we dispositions Since across associated both equity positions the debt been a and where harvested capital revenues equity our positions portfolio. public Day, of total and management, our Staying Day of private since the roughly actively On relevant of made Investor $XX offset show have approximately had million billion. facilitation positions which provides again, portfolio the Investor regarding series on-balance include X, disclosure our of markups $XXX which on our vintage and billion, other by asset investments. partially page and

asset $X.X over positions. disposed capital of sales of of We execution portfolio the To our also this continue and focused $X to $X this billion private incremental of the line $X meeting of sight sold private of for the We on remain corresponding billion to quarter billion of reduction. capital billion on have strategy CIE end, and during segment. we target

of the loans drive billion the reflected wealth Wealth produced and the for quarter year-to-date the in Wealth environment. quarter. add and as needs of $X of rose the quarter, Moving third the million very low to was deposit record our $XXX credit for Consumer fees base. demand view in million this I to lending part billion loans XX, $XXX high our private billion, Consumer page the second Management $X.X and In further versus helped our clients and were XX% and and up our Private Management, the year-over-year. $XXX revenues growth on we inflows which funds. management XX% current strong integral higher penetration offering other products $X of for remains card sequentially. fees fee-based rates, revenues of standing It's as lending amid long-term in an banking of investment Incentive clients certain with private credit banking overrides balances well would lending rate that strong with million year-on-year. XX% recognition revenues as of based client of largely room bank of wealth record reflecting

and our the given product XXXX, in accelerate card existing to credit in pending the growth continued acquisitions portfolio Motors and loan expansion expect General We shed. of GreenSky

these address expenses interest-earning globally. XX% assets steadily, ago, a two versus rose segments, portfolio firm-wide which total other quarter fees. interest managers both an managers our under increase lower Total management third our was reflecting record assets. year-over-year page XX, and record billion. firm-wide us and fees, Looking management across $X.X these other the net driven $X.X We've shows and to and of in been a trillion, page for all has active On lending funding and year the now alternative billion we higher higher firm-wide five NII AUS across segments. a income This in asset top putting supervision growth businesses and at stands building $X.X and XX,

total up billion of Our dollars. at $XXX portfolio quarterly portfolio. our losses reflected quarter-end portfolio loan across growth. million billion increases you billion Corresponding page On of X.X the was provision expenses $XX XX, total sequentially, credit reflecting see operating $XXX for

the our for ratio at and ability for exhibit Our leverage while growth. XX.X%, a pay-for-performance efficiency investing culture, maintaining operating year-to-date to reflecting stands

up were Our year-to-date XX% a up on compensation down expenses XX%, ex-litigation, non-compensation while our were XX% year-to-date expenses basis. but

on basis end under and XX.X% of on management capital third to shareholders, equity and X will in franchise of largely the the ratio approach, the prioritize was stock our client our down to $XX-billion common sequentially. was revisions Despite points on common any based $XXX client quarter In with deploying XX, our delivered return RWA Turning the million earnings to quarter, we $X calculations including repurchases feedback Slide solid in dividends common billion another the capital we capital higher XX dividends. at our increase at capital standardized RWAs, quarter the decline the billion driven in reflecting generation, reflecting performance, total stock a by a and philosophy, returned $X.X partially regulatory Consistent then quarter. of In for attractive to of excess strength we via of repurchases. and conclusion, strong returns, shareholders share franchise. diversification Tier

management enhance two our the recurring announced and businesses, consumer acquisitions and firm's we that will stream. asset Additionally, both increase revenue

forward, remains firm. Looking set, overall attractive opportunity the across the

strategy, to now continue to are questions. towards returns. we we'll execute mid-teens As open the we With our for building a that, line on up sustainable path

a take comes Ladies Your of Glenn Q&A we from first the roster. Evercore compile to will question line [Operator and with Schorr gentlemen, Instructions] ISI. moment the now

wonder I just comments Hi, I quick now thank could you. if follow-up a capital. on question Stephen, ask your on

ton up money, on a year make XX% is Amazing. book you So of year.

strong RTBA Sachs GreenSky [Indiscernible]. because the coming. But and was and You activity is did up

continued they're consumer not margin, expecting where the should at and you more talk position if little we side. if buybacks investment in digital so Thanks. more at and the now about the see excess could a wonder builds I just your So back margin be bit the just you peel

Glenn. Sure

capital of reiteration start me let with policy. standing our So

deploy of in business our to capital to as are they that, do as priority you is on the clients As been. know attractive when and especially behalf have returns

ROE, and where now quarter deploy that I'd the consistent at a XX.X% also point share the with in dividend our from produce reason capital out the So it's $X is that that, dividend, in we up the X.XX. in we that, business. a

we an attractive capital to that annual And to represents dividend. that really or do return the billion an that of basis so share we're terms on opportunities repurchase. through where prove backend be dollars will So in shareholders returning additional we what exhaust

say the opportunity we and into had the be firm. of to have priority. consumer grow view the that deploy would the is deployment long-term I do way, again, reflected knows of we about and it's whole a you broad accretive the nor of how capital referred one capital It And terms one in David always the business. a in the business not segment Now an think about set, we across across unquestionably But agile time business, the look that opportunity. how add firm. can

finalized that our So pursuant is effect it's SCB, necessarily formal capital the anyone 'XX higher or operating will not about petition in know, we, let wouldn't say Sachar 'XX, them. that we $XX in what higher billion ratio that implementation, be minimum a look the It certainly we're against that, Sachar began And I look Fed regulators back regard, particular. to inconsistent to in to is our place, put we we've policy, that know and of we less. And effect. by our about a in when in RWAs then by with We're when will Basel at 'XX proactively a it Fed, tax targeted the basis part by adopted always forward we'll while when therefore, forward surplus decision to of a is (ph) our because, and view (ph) on we the and on as do. kind (ph) mitigate XX in one Obviously, Sachar that looking in at and points. is we increase was made by requirement level

appropriate a we've starting the netting minimize pursuing of data as so impact to reflection of to understanding to reflects to progress could a ratio rules now the it was where capital engagement, kind out. think relative in been. as And the it, and play But work made So now, obviously, anticipation mitigation proactive would've through that's implementation workstream. and of opposed I the what assembling

answer, if picture thinking but so sorry for you long that And we're -- of complete you capital. gives about a the will, how

talk Comp notes, are year follow-up dollars comprehensive. because One if revenues up strong could year. impacted a are up know lot little in at Wonder we XX% I made and of terms a know I was things and That Take Dennis. to you leverage, bit a MVB bottom-up think that pursue ton a that. I year. comp so people money. it's last this XX%. [Indiscernible] [Indiscernible] last date of I of one But about

comp full-year thinking takes expect? ratio, to on full-year anything to on So the and what just puts

can quarter the That ended quarter. reserve at with So consistent required XX% now, there's which start loss, performance, I'll But it for to do consistent always numbers with of who David, need XX% to for maybe and generally. months. firm to what's date, then revenue, at when X We credit of kind we comp is a are the provision that at what us, to I with go. pay of think obviously, we on we reflect the was think net where turn as we through is I comp right philosophy compensation, net second

So credit we're for of at XX% ratio, net loss. revenue provision a

of two against through to up the pay-for-performance number can the is provisions obviously performance reflecting up line, be numbers, more You benefits broadly. Again, of year-to-date XX% to business comp a -- measured X that revenues and revenues are see not philosophy months XX%. XX%. up confuse in That that XX% net the is and the and

see a robust healthy when believe comp comp you provisioning can we what that we be exists even for process. are and leverage the So to

in up is ex-litigation total Again, be that leverage, XX%. revenue up you XX%, I at but way, continues expenses to look if it because the there operating expenses operating exhibition look at are think the we leverage business. including our operating total expense, overall, of non-comp

operating broadly wants And on sense just just in the of comp David specifically. you But comment gives so this in leverage and to maybe a expenses the philosophy.

know -- extremely appreciate everywhere inflation focused question. I all business on appreciate the of at right comp no question, is pressured, there I There wage of Glenn, getting one every aspects you're it. things we're is I there's at. now, the

operating for are this And is there time, we're culture, are that comfortable leverage to real where it. our our shareholders and can very, that people top at show way performance But the no on same question our we're paid We for exceptionally given we're people in a managing performing. about we pay of performance. feel the exceptional good And performance. We that. very

you both. Thank it. Appreciate

next line Autonomous. Your Bolu with of question from comes Christian the

sentiments Stephen, Good David welcome shoes and and to about Congratulations echo especially definitely sure. will very morning, big Denis, for Stephen. be fill David, just

there. is to the XX%, do bank. first very question neobanks is of here So lags but consumer the business revenue continues out some growth on well, digital my [Indiscernible] pure-play still That that's an impressive

payment and of just some holes. that function functions, might shake a bit and functions a little And in light. be If of investment product could we Marcus,

curious fill term, business? think here about use should that The here, gaps. roadmap revenue how And growth of potential think you Marcus. product from to So the then longer sustainable from about M&A those we some how for to

this may is this over I'll on term. start comments, we This Sure. is -- something focused that but and add we're -- Christian. the is Steven some long

the of over small very those acquisition digital are deposits standing is institution start the of significant customer a a depository X very with X. we've costs. holds budget, a marketing $XXX billion these In platform no years, think efficient, from cost infrastructure posits, I felt branches, other we very, a very of an The excellent drives that models. and built

customers that We have million now. right servicing X we're

card own We We've both about opportunity talked checking other publicly onboarding comments, doing. the think that expand credit platform that I of really technology to and on but portfolio highlighted for proprietary and the we're development. And starting also what during us seamlessly platform, that's and adding expanding. card in have it's their into point differentiated, was have XXXX, digital capability. sale our is cloud-based allows in our their the to GreenSky tech integrates we're is track very broadly partnerships,

going And so to a build and fact we we're business. feel that very continue consequential to the about grow good this

over with revenue sustainable model. on our I We're trying to long-term durable have earnings know time do that. Sachs continue I to are percentage, if if have clients serve to to looking compound a do that to should and and business FinTech's contributes growth am a believe growth be that recurring think will We else good we going a in a that, of well a look the to with added. will we at not lot view it and build way grow we seamless Stephen, technology, you it. that revenue Goldman anything comment unlike you don't simply

on, we period turn at by the limit to coming went to performed where amount the Well, design I'd portfolio now we having the look you challenging more through in We're we So underwriting only forget back that look a year-over-year comparison, doing. just can't very the were thing add, Christian back seen you is of well. if COVID, that

in deposit line. the XX% consumer commitment think spot renewed up XX% up reflection a of that reflecting that David credit in is just cards. And are David's And to growing seeing and out revenues on. comments I year-over-year that's are They're it the perform. business So and

forward. soon and platform checking, in -- into is Apple Motors, big, broad at and Card, what's be investing focus savings serve net is can joined customers look coming you a loans that by this module and to If moment we a General with of take to key as to product their now the where set. we're in needs, a -- acquisition that all we're kind of opposed bespoke at began And of GreenSky at I think

share trading market question to bit second results My so the a you. high, maybe in going it one have years sticky high be of of share are another here businesses. But -- over just Thank quarter wonder high-class is problem been gains a back has trading could the how few gains but forward. the to Great. last that on, dramatic the

trading in business you how curious share XXXX we XXXX. think as Just and into roll about of gains sustainability

it's of of we your don't Christian, think the executing in -- the that the I highlight I really Day. and appreciate Well, out on strategy on been Investor important gains. I share a we've part laid focus to back what went we context when

that. as needs of never of could the context. our gains market a last provisioning, that of think service, us firm clients position over I going long-term and business the see think we're Number financing I few gains, to financing share think more want sticky. quite to the focused way so holistic accruing target. business and be a for figure culture the are the transactional, to level on less clients very organization from tried business, The we GF X, benefiting And it's continue the been X and were they that an business And of serve market-making, that accruing much, clients in that differently we've that the client X, I the to we segment But say a And the has I real been operating couple business the we focused the and at our the the there we've business. positioned that grow this this switch capabilities share don't on having results in it's years really reasons. that way. of they meaningfully much much bear to a the pace I'm how to more one things know strengthen we focused won't, in are better repeatedly relationship has will And client-centric have. on do a principal because out very bringing client to Number hearing while

tech think we have that have one targeted on leading different. to platforms here, grow a and that's that's significant tertiary to enhance can financing we that side. we opportunities that's or we've have prosecute technology -- on is given succeeded And we've in we there And across been and share, Day, our the I things advantage share. the place clients. continue with durable the are highlight the And financing and both the have also of scale obviously. making ability I to to equities the competitive SEC, that, happening since an position players. think market we continue and players taken would and the on secondary developed necessity, Investor investments our we is where that broadly capability more And that, And so that

And we're benefiting from also. that so

Now as that question, conducive of that there's this the part that our this level we've we're where in sitting I and think XXXX. saying we're Investor very focus is Day, running were we the performance takes But way continue. in a performance made, business. efficiencies not no also step environment will the from here function the a up were on of say business, certainly operating focused we in I'd us business,

at back business a and levels, and hurdle level went way feel we or about different if lower at the to even so is so positioned. we And a good the rate return higher the very business

comes question next Steven the Research. with Your Chubak of line from Wolfe

Hi, good morning.

Hey, good morning.

Morning.

that platform. some watching, you how hoping longer alternatives been guys and whether benefited sponsors could on into really multifaceted activity growing we numbers. could one from both some you momentum? with wanted just third-party the it's out own frenzy have derail unique are should have your whether question. with just of building that. speak could given tax start increase rates last With pace months, activity to fundraising factors a clearly reform you're to I deal really these And was fundraising just persist, It's of and significant certainly I a the or and perspective you impressive business, much contributor M&A [Indiscernible] there any space. the and potentially to XX alternative cited the Sponsors this higher off [Indiscernible] be

something at I and try time about in We're right. I'll level moment high you're at a where And to quite Steve, talk levels think high. a activity Sure. the are

world, First focused we ago on few very building why years add organized reasons to more fundraising, our secular just capital growth of much I one in way, in that broad a whether sovereign growing of wealth the you third-party to funds say is our allocation got relationships context institutional out and and into it's a alternatives the governments the there get capital around And alternatives. platform, because you get really or institutions. is

broad All allocation increasing to of alternatives. them of their are them array or

alternative participation that no retail a position in addition, there's in to a world -- where we're in individuals position think, the space. is the I in question is wealthy broadly expanding

wealthy access offered but to with that more being And individuals, significantly. access had channel there's distribution more individuals. always We've broadening a ultra-wealthy is so

have do global onto broad allocation platforms. I a capital we secular broad growth think of alternatives so And number years of ahead terms the in these of

fundraising helping activity pace. thinking so We're note It management reacceleration we're much percentage respect activity lot policy lending our sponsor monetary the years. then of as very there's powder out of carefully into off. activity the to highlighted. carefully We'll at accommodative sustain this that last velocity but won't going run at coming think context it's out we're sponsor be given very around it facts activity carefully, way. of has for With this over moment, quarter risk But would fiscal of dry we the while. M&A will and speed the the because and won also will than that's to the past, of it been a our that's and bumps the of that watching economy activity certainly that. it I very it pandemic, I something this feels some environment a be in that us well-positioned continued that sponsor it along something increased, higher when there. watch And that a in for deal about was the activity ultimately for very in that, while, the the few

And those has is given still a punitive future which a to of C-car. talked got the for the just of the need does of How CETX the question that XX.X% SCB investments of high-class And just harvesting the We they've Steven, reduction, of couple David above some part investments you've book to level. that better color. much maybe smaller the to this basis, capital. know on all SCB? the boggy impact is treatment in the net on equity your XX% meaningfully remains And $XX follow-up, investments. reduce for that proven about least investments that shrinking Thanks, equity and at primary very of one is for my problem, drivers And a billion equity and a difficult high stubbornly rather now? get in years stubbornly to long-term target appropriate persisted order just

Sure.

part question. me with your start Let end of the

Our is that strongly is to firm held the right place for view this operate. XX.X% to XX%

of SCB. otherwise Now, us of the what is and get by frustrated Fed to requiring is context in there the our obviously CCAR ability

received in that is can what doing Balance action context, do taking from we're well fun not comes format. requirement Meaning, So instead, But we're what Sheet the that hands. and to we moving waiting pivoting into we down. be are in order candidly petitions own our and for into

think, the deck see page is meant $XX if X what in free at you look AE has for I -- what terms up. our you'll our dispositions, what's that happened of and billion of in in

revenue, about reduction Investor of you not sense might So I'll billion yawning And reduction Day, to $X.X quicker balance you will, to always come those billion balance all activity slope sheet just because Day I of than to see that And we reduction Investor will, from on, or freeing it. meaning not off sheet balance you going sight in will if line at of we billion $X.X if of would up $XX.X of in seen can a continue. a see billion the we've Since fundraising $X line, what where deployment. and corresponding pace. sheet months, we a of in about experience reduction, freed focused sit give you Faster had billion canyon, bit the on AE. would you numbers AE. give have we last of whether $X.X of magnitude been billion and of a a In AE. we at X that's balance sheet $X.X been happening. That's have of of the

said, has that is -- David of As which have fee-paying. of about billion which fundraising, underlying and we $XX $XX is AUS, billion

reduction being And And of gives so we're trying the a sense well. in the capital you that overall this achieve. context transition just is of to managed what

Sandler. Jeff Your of next Piper question Harte with comes the from line

guys. morning, Good

Jeff. Hey,

morning. Good

up waiting market? of for driven So be thing since of has QE kind Balance has and Sheet, in client versus bit since of Sheet the flood -- how stepped much it's Can liquidity something by a the really crisis. good demand of just which pandemic would of the Balance a growth being for been talk in function a that growth kind you of the financial about been great we

has I activity. been of would much sheet growth client gone has balance on to Well, that that the attributed say

franchise. look If you in at supports that M&A growth activity just segment-by-segment, you at our banking financing in look our investment

kind reflecting on were and You in look going sustainability context of to that both in on in his of up at the financing answer David business. year-on-year forward question the the that's and trading FICC equities that around was our

we at clients. point isolation. of firm, And in maintained support balance growing so in our place, obviously obviously out the doesn't is grow in in of has it a form deal though capital the have grown, the balance of that GCLA. sheet Meaning of I in sheet, various liquidity are good context metrics would this that risk grows

substitute in the serving that tandem. are the of And so it be to strategically fact doing not clients. a think our the Firm capital Balance inflation, liquidity in Sheet is, growth and in notwithstanding funding. all of wholesale We're bank, not these new context experiencing kind have in that this is the commercial profile But the Sheet pivot bigger you meant platform where held have seeing read that as context a a base are I various risks. In We're terms in of a grown of deposit itself. part for way, deposits we And outsized Be usable strategic banks. that because and you're Balance inflating is at that there. of that deposits for the or a frankly of growth us seeing very in that seen

how budgeting could the maybe for look I at we banking that like capital from kind question you process next predict of about off these What's year sustainable global can't markets of as do do Investment levels, markets year outlook tomorrow. into mean, and shut recurring now, And about think of Okay. approach you beyond? the understanding a quarters think that? when how you How perspective? are and your the activity that and really you strong and number things things

are our Jeff that accommodative for outlook, think on are there the this. that confluence, things obviously I quite are going

and time that point amount at of we right, activity around any we the markets, see time, in of fundamental over the world. growth grows business and same have And economic periods these that growth. we platform. robust mix activity. growth But long-term wouldn't In could fundamental have You're change in client

down certainly say franchise the But at moment. robust the we things in that at the a were banking than markets would businesses were So find in also these to say slowed rebalance the I'd little, whenever activity or very in investment very, running I capital economic world. are and ago growth going market we're they world years growth baseline larger fundamentally in the activity because five capital of

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Your comes next Morgan the with Graseck of line Stanley. Betsy question from

Hi, good morning.

Good morning.

Betsy. morning, Good

Hey.

a opportunity you share bit we perspective. to about could think earlier being angle I if a your share and talked you're where So opportunities. different just on little an ask below the take slightly a we wanted think that market punching and about weight, market regional from about that question

Asia, Latin maybe those Thanks. have where opportunities regions. especially or think you to you speak Europe America, in could So in you

there's question. of a I no things mean, Betsy, a point couple I level, at high to

our Asset a opportunities One on us portion way, the more public we the point, of in is managers. accelerates punch to one some this still with Europe, been terms both there. around do that. across weight across to at NN was world. even reasons of active management business, attractive business asset I supervising, think There's of distribution assets GSAM that five punching we're opportunity really the our the still there's the why also for better our of were of our in think and us but top below though I that capabilities we've

opportunity. And that so we an continue to think as about

in us for business, I the opportunities in we've think Europe Wealth on Management focused and that. around are been particular there

in there move wealth money are a us opportunities structure mass simply using worth clienteles to we the that digital managing affluent business think been more for PWN from I management ultra-high traditional in extending with technology net U.S. as have a and think the the from our use us and venture which for of opportunity in that we wealth world. is opportunity perspective, where you've another Ayco. China place seen ICBC, management is joint with an of we've part there's interesting announced our

things And basis, highlight. I would a regionalized are a from of so handful those

Okay, thanks.

with Securities. comes question the Mayo Mike from next Fargo of line Your Wells

Hi.

Mike. Hey,

your us successes I you mark-to-mark or of could on if just was kind wondering Sachs initiatives.

times mentioned, you higher marginal or so revenues the that margin. you're expenses, of As getting X growth year-to-date is and X

some of that's the bull due to Now market.

guess, leverage, way So then, much by mentioned is that but phrase of due this area. comp technology? You is to one I question how to

$XXX of you have growth banking was billion deposit a initiatives your $XX digital deposits You transaction new mentioned billion. So

And that's where have been cloud. then your there's I guess activities the think a I pouring you legacy trading

the rest tech there lot of the I'm not of backbone than the where Company, what is electronification really sure is.

to the of the has much trading how marginal growth So is, contributed the firm? areas, that each question rest for the the higher margin and tech backbone

developers our enables to applications time it their more Mike, level, what low across that expand clients, to that really our [Indiscernible] used spending really we I'm an centers traditional than highlight service heavy well focused we've Historically, organization middle to all I directly us connect such friction platforms put have managed provides more machine continuously the they create to learning, the in deliver infrastructure. matters for and own have firm tech to was we're much products where build to analytics, adoption connect I'll strategically as a I operate physical us broad enable doing technology with think by on just into variety which demand significantly allowing something to to The big to which data, Stephen access to directly very on, really that technologies the have to our more more want but been talent of growing able obviously of path. background continues, tech commitment to clients lifting enables will better meet as to at moment. to and clients the to of have, it of performing But their kind cloud efficiently. we and is the continuing we like data us. and reasons, the the Cloud accelerate innovation second, very of of focus And it's to market them, our our us that uplift We're things at on the execution At things transaction it's high that some I be banking highlighted the needs. and to doing can some on sure platform. and call a Cloud and the the have we're allowing and Rather operate undifferentiated that here, too. what technology, bill some to we're a our will Well, services you in businesses start, some add and initiatives of

an for know services, high-frequency that no and are We cloud question there trading of that. I give on-premise. efficiencies not are everything, that out so is better-served that example the are real us there's so And like for that is coming there you some

in can And these different of better can environment, leverage Poly to and we kind in clients. so take what what offerings Cloud hybrid do each also that our or our the partners call we we technology that operate we of a and allow strategy choose we clearly a multi-cloud have for that so platforms best-of-breed

in intentional. think efficiently. But to our speak, operating to add principal our I our for or financial strategic you as it better a do businesses. build to with and overall, anything objectives that I think execution want journey. we we're delivering more? the things So very very, you strategy. this That's in continue from I the of our to benefit clients of And real so we're the It's in quantify services some Stephen, more to that mean, some little there's clouds, aligned firm would of more getting upside

was I'd quantification. a thing only of the Yeah, add bit

you before, year-to-date our to is XX%. litigation core if -- the Mike, just so say So expense, non-comp excluding at non-comp heard you up expenses, looking me

at technology. the that a represents, is gross to X/X increase that related that If you expense look about of

the of firm. equally, the So the so consumer we're around firm. of attention. all X Cloud-based one a on third spends, of particular in both the relates is been it's David the increase about initiatives McKee in it's ROI but broadly of in expense non-compensation these investment. all the broader TXP firm like And that this your of months engineering to sweat brought first we the uplift technology. this In spent is (ph) through and platforms across to

create automation, firm. to us will out the opportunity greater And play enable so, for part will of across as return whole an the as which example, the uplift of a

was just So you some otherwise a sort David expense I true that dimension, describing. what to you, if to line give you from just offer to of as will,

I you maybe digging to said. target, your skeptical, just have And a get on our a transaction as deeper you banking. but be little follow-up, five-year did

that case think about so, And Sachs cloud, in being has way, just define if your you does banking? means? can include And billion getting Is of And in the Goldman foreign cloud-enabled, what from itself? cloud, think that way the I $XX that cloud, really what the you that you any state billion? the $XX nirvana transaction have to the degree cloud-native in to contributed by deposits you or that the

don't gross back XX come of billion that's a And said, operational, are GS about the there become so Cloud. value just we've deposits. to in it. I now question to believe XX% as But that your It's to us. deposits So about

however, our the a the instances is built that upgrades without that it's would across I drop context benefit transaction it. and platform of a cloud a I it's TXP self-evident, it Cloud, client been it's conclude I in I like. built redundant why been how that think conclude, card which think is to Mike noted, is reason improve it's the and with level built within Cloud. the itself. security very the is is and was basis in it's So us not cost-efficient the necessarily would the built-in satisfies base, as that of sitting business successful. of us don't I that benefits on security meaning entirely of necessarily datacenters. banking technology built sort It that multiple of The David costing the with to That know

So that tell can't you built attraction and come on in. could deposits I have that I attractive to to a that basis cheaper, to it can the line more client and I you -attention we better, facilitate a tell it. draw

and on success, transition. it's to embedded of and differentiated was that deeply an opportunity Steven to an quickly corporate that -- though digital could reason But this out platform, think thing, thing a than offering Mike, and for took as add example is was the of the accelerating because is their reason, fundamentally, activity an is banking do its better offerings. the existing so one one clearly. very is our our clients. the to The meeting Cloud transaction seeing that highlighted, easier on because platform of needs I clients we build friction the build us very, And the I quality part of want our that

and activity, And it's That's experience this laid why that delivers And why dollars Stephen business user a a revenue. be we're improved. it's good that's out were in of built it As that succeeding. continuing And that we've that in very saw that experience platform and be confident contributor. and has a meeting grow. targets we few margin better that's billion target. could ways And will to of We're that a optimistic. saw why a there we that experience.

we'll our it's product to so how execute. of And the fundamentally delivering to confident about quality the we're clients. But we're continue very not

comes question UBS. line the of with next your And from Brennan Hawken

taking Good my morning. Thanks for questions.

congrats, to first, Just luck best just Stephen. of you,

Thank you

looking could to congrats forward together. GreenSky working also with the the to Maybe you start Dennis we And role, new acquisition. on

underwriting and see alternatives So stock the strategic exploring the a and IPO lot in the August history performed pointed how began to investors has the Firm, of Firm XXXX. since of spotty

right consumer acquiring in interested led why connect add Company appreciating perspective this to understanding could on you franchise the So this to be market what about you the not might that your business. maybe your think or was growing And banking it. be you maybe

platform here than as fund Inside it's market's is But to Sure. Brennan. the have on Sachs. Sachs, An Goldman of that into I'll a the allows funding attractive attractive very we Company, funding. a it can it public customers didn't connect very and model, appreciate Goldman us as an that public to to differently. independent a have funding a pull that. technology base independent of had big start I becomes that ecosystem. we is platform Company the And weaknesses an one question, And it of a the Company first, different Company as inside

well extremely merchant it XX,XXX over to XX they did over network develop work the a they at years us to would merchant then we we similar the a think think network have develop, developed taken and to that, to look network. I that have And ten is point-of-sale and valuable. try close merchants, years

very, doing. acquire high And very allowed of fits FICO that are bringing our to and the allowed Goldman into Scores, to were point It very, activities that platform customer, that very that attractive these us to we customers so network, that something do customers sale aren't expand have ability Sachs. into the us high-quality seamlessly these homes, are

on returns consistently And very, it. XX%+ we acquisition activity that about it generates. feel we so And good this deliver very will think the that

Great, some Maybe provide on around the following David. you thanks for up -- strategic that, that context from thanks here. priorities for could

X in with NN smaller size, done to you've more in wealth businesses these side, you different the which several recent recently. grow When a of the years and you certainly G-Sky bit ago, You've some acquisitions, but United and both Folio bolt-on, done activity. think on smaller Capital a about of lot at want

investors here, any either compelling, ripe is that similar given or you under-appreciating, there combination that particular business think some -- might your quite the is the of about from from here, it as different priorities is a be opportunities be can inorganic Going -- platform than Goldman it market stack? how standalone, to they direction way How within the and GreenSky. should was wit and think

We I our Sure, center Brennan. want what Investor increase you our out will bring grow Day. said that you share we a during said you back positioning. bring I you we center really back to continue to to and will around -- and to in of businesses strategy core market invest -- laid

still into There's where of continue opportunities areas, of the saw that. you those the transaction that. wealth done areas to and look But digital durable some we've we it's revenues management, when at increasing and mix banking, our it's a management, it's And also think grow it's business. to competitive asset I expand fee-based while bank. to our consumer handful opportunities we do position highlighted

as there still those to four grow of think I forward, are opportunities And look so all areas. we

those opportunities to them I a acquisition it. position in grow but make to look we're areas, and accelerate that can when of are an at continue one think take we our there organically, to growth hard going competitive our can

for As extraordinarily high. something is I've do significant to very before, us the said bar

for us focused that areas opportunities those we to areas. more durability of X -- do consistent may us I think and X revenues on the durable in stream. there are is grow earnings But coming those there years because be to can opportunities a diversify things to areas those allow the accelerate and still continue our

frame look anything specifically. And we'll so to wouldn't that's to more the I point at. that continue

comes Ryan JMP next of line from Devin Your with question the Securities.

morning. Good Thanks. Great. guess. I

so product stand-alone menu, alternative in on effect. a the and on years I great in of dig look network numerous recent Asset the, the on opportunity And that when LP side. little of product to bit job at third-party creates scale alternatives management that just they're to some they've relationships done -- a then the on ability and fundraising. side connecting expanding and manager question the the effectively to a products, the just First want And consolidating customer peers, guess continue where we both and

looking the investment And more guys is opportunity add Goldman, any you your guess are to side, I product on be is you like accelerate do at more it product. you Sachs or Goldman where or bigger so areas to with there you LPs like And could alternatives, could help more the opportunity I products? you feel then LPs? we're where with those are And guess, areas could existing on with that connect, feel LPs connect

we've go been geared a on. years. the we of number to and been focus It's we of very is very Devin. at I think I a offering global in a we on truly strategically But actually Investor things been when said that -- when that and focused for appreciate obviously out We've some something out these businesses product of have this. broad the we something that our -- question, for long time, relatively back Day, I'll kind we differentiated and have built has that is that built So

them. And relationships. network. institutional freestanding growth positions with private equity, credit, we platform. in estate, that the of our a have in institutional our the a those at firms, the globally we equity, of when partners, funder this private with them in that approach some raised have took real while the that on look lot generally or in an our the lot have array, building you long-term our some there including really relationship that these are also and differentiated And alternatives We partnership wealth is business through and not if broad activities, given money amount are at about We What And wealth a few it business in really and focused, was a partners we LP world. but could with together roll around and we we a very relationships set large into have LP grow had network, way infrastructure, relationships, global of enormous we've basis taking view other been broadly one-GS up. came institutions got we a all the had our before firm, of products different our institutional knew from private through we

our number significant a was So first the were solutions, adding year, a platform been there we strategic institutional And solutions the time strategic dozen at that new that of probably look our which coming in ecosystem. you LPs growth they LP big has onto opportunity to of last if part raised new fund. were a

that, is it's expand opportunity for So something us very focused less the opportunity for we're product big on. I to a continue it's us think addition. than But to

is Sachs capital we Although the we interesting. us have just to expand think are to institutional relationships technologies. Goldman the climate product that platform certain using add the broad at with us. funds, allow on run institutional meaningfully is really which allocate are partnered have focus other think that upside I we LLPs raised on lot we meaningfully to we And ESG a are will [Indiscernible] in and that. of And into centered we'll horizon products, capability fund, But an our

comes with from Poonawala line question the Your next Ebrahim Bank America. of of

Thank you.

Just David. assets. how you're one Adjust us just question. to thinking about digital

tokenization. seeing entire digital As built custody ecosystem you're the asset being around

it in entire ecosystem just accelerate, writing I these the wheelhouse Goldman's that. love hear see perspective be to one, to how that would on Just all give so a like can of some your would things as perspective feels and because play capitalized of that Goldman you role us developing

Sure.

that So that no digitizing there's involved activities in we're are quickly. question

our do a I in different is There we're the and this some us call meaningful because financial taking to banking, is disrupt using consumer are places occurring. doing infrastructure, this it in our bunch digitization think that, allowing happening acceleration What that are what about ability talked accelerate way. disruption we're there in doing today on is digital also digitalization the services a the in of relying of is two transaction building a digital we've to that that position. and a on disruption digital this. bank is The

on continue that stage I traditional to ecosystem, You I services know I financial the are ways think version think broader disruption consumed. an we're early it's you'll X.X -- see a and lot digital delivered as of think

I where place services think remediated. big competitive financial a to are more platforms continue be will

the be around it how this for regulatory regulatory think I and structure technology as the firm some complications is the I allows more for think very disruption, a it. of we're lots there the firm and I on continues structure game in will the big think opportunity early but are of the ultimately manage and focused to

next Bank. with Your line the question of comes Matt O'Connor from Deutsche

regulatory was just on, RWAs drove from I could you hoping Good what this quarter, elaborate morning. please. the guidance the increase in

Sure.

And So about in $XX in related that -- of routine that of ongoing the RWAs. RWAs we with that methodology of had the was half the we're the regulators. increase billion and in discussion byproduct just to using about computation changes

through plays of that's XX% And on in the forward. through But really ratio, the play about quarter third lift. the so the of source RWA will that

and overall other attending The the in business there. context obviously that's XX% the is of exposure and risk

next Your question comes RBC. with the from Cassidy of line Gerard

Steven. Hello, you. David. Hello, Thank

Gerard. Hey,

Hey Gerard.

backing billion-dollar time? reach in us linked? you'll same Day, that be Meaning you were revenues. numbers supposed and got you're Steph those And kind the with you're in around us ahead in is they transaction to -- the second, reach $X Back of target? gave Investor confident XX achieved which to deposits, billion still billion were -- on in you do you of you've mentioned the when to numbers, when schedule, think the the Stephen, then can going share those you

Sure.

bear environment at set of So rates. interest the in though in now different is were same then the targets context time, the mind quite and the

of expectation now, on rates, the an is time quarter-on-quarter value that of balance Day. as about deposits, And see we XX% And back that. the we'll modeled not X/X the out. rich context is return more. a come fees. at target. funds operational. time around the maybe about are other rising fed able deposits is to and be that deposits FX equally of has to revenue big had the from imagined step point value correlated about little I That's we more increase want of say in the of XXX seen from of of consequence that, don't of economic through out The forward the view quarter. And interest rate banking, the think But the them more the a know, therefore the of that we've from I a curve is as modeled we'll I those billion-dollar that our revenue of points, value basis XX that billion value So down Investor achieving to the to otherwise in of Investor with to one Day. that intake been deposit I last achieve a broadly transaction now

see will interest as the back, those And so deposits as value rates we come of well.

are this no Please, remarks. further At there with time, questions. continue any closing

a and of So Management and since to we Relations behalf our call moment Senior forward you. Investor there the joining to reach on many months. safe please out with are If meantime, speaking please call do we to hope team. no of Carey more to team, additional our questions, hesitate coming January. on like stay questions in Thank look take arise to Otherwise, everyone in you I'd you to thank for not in fourth-quarter the see the the

Quarter Conference participation. does Call. for Third gentlemen, you XXXX and Goldman Earnings the this Thank Sachs Ladies your conclude

disconnect. now may You