The Goldman Sachs Group, Inc. (GS) 14 Apr 222022 Q1 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 First Quarter 2022 Earnings Conference Call. This call is being recorded today, April 14, 2022. Thank you. Ms. your begin may you conference. Halio,

may reference is is Good www.gs.com. not earnings our the release Officer, duplicated, Relations conference joined Investor Group, Head and which copyrighted Note, will Investor Relations cast material measures Chief our page website on the audio Halio, Goldman morning. Sachs call. be I'm of Sachs. at on Solomon, we Officer, on earnings information This David rebroadcast non-GAAP at appear quarter Welcome of first forward-looking presentation, and Inc. Chairman our or Carey Denis This and be reproduced consent. Executive without to found Coleman. Goldman the earnings presentation. our and Financial and our of Today, Chief by can our statement today

Let pass to David. me the now call

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it the more it all In imperative. makes fact,

very even returns objectives. faced; generate medium-term February, proud even markets. diversified our headwinds in more our that In franchise a those I'm solid building quarter that I resilient, are the laid targets. meet more with We revised can this out uncertain results return we

We the and businesses we initiatives In targets and closed for wealth achieve with asset growth management, out in consumer. our our across to closed Goldman week. thrilled Sachs. positioned I'm be banking GreenSky, progress March; great have including management, which some late are also we welcoming transaction the accelerated well to these laid earlier this NNIP, which to areas, acquisitions,

the ROTE $XX.XX, generated For XX% of an of and net of quarter, earnings billion, we produced per $XX.X ROE share an revenues of XX.X%.

noted, I significant parts for equity capital market client the on the faced some of markets, volumes As evolving firm that were activity. significant had headwinds, our a quarter. This issuance meant lackluster like backdrop where effect

environment hand, a areas and Global And other intermediation the difficult the with this On growth as to despite strong our in us Markets financing needs. to quarter, environment. in allowed our support clients several had durability of risk strategy, reflect continue line the

as well fees was saw invasion and that business. wealth of the question there's as But our asset significant no solid example, most we other Ukraine. of growth revenue management, For management, management quarter first event in the across consumer the

to that This doing begin possible is terms, on, condemn its committed hearts down to active said Goldman we people the people. and Early I've operations As Russia. firm's is invasion before, to the the part. well-being of the demands to of ongoing. out Sachs aggression That winding we our action strongest Ukrainian go in took our and response process ensure our a

to on words direct exposure Russia. also our me Let few say a financial

revenues related been we've was instruments direct a Russia our them financial first loss impact and The overall exposure. relatively limited, on Ukraine from approximately quarter $XXX out were million. closing but net positions and Our focused on of reducing our

Our risk on and people globe the close the around mitigation the of business our without would have the possible our both firm. collaboration been control not efforts side of

Our we to environment. continue further this invasion the we More as is created landscape and I for the and uncertainty additional has broadly, level continue war management will true an the navigate to us, differentiator navigate culture risk Russian that volatile a geopolitical of outlast itself. complicated expect

are appreciate newfound clearly Western encouraging the towards all gaining is will is unity momentum. it it that While be to third The and deglobalization second and I of believe long significant the take the ramifications. time order lasting, to see shift trend fully among likely democracies, to consequences and a some

a other on keeping I'm geopolitics, close several eye Beyond trends.

the wages While on prices stress prices and ongoing whatever increased complexity outlook, food Goldman gas facing and economic commodity will new in I decades. the of US the highest seeing is These as an inflation unemployment on holds, and low housing. and in supply well levels but confidence. are well and increasing, rising higher risk stagflation seen households We're We've US for currents cross been also chain future believe prices Sachs mixed are is consumer create positioned. certainly as are it's signals

it make We cover results clients financial for more in our commitments to growth on and strategy a our strong the is Denis to than -- to I'll now commitment to ever. quarter progress continue stronger over clients our detail. turn our to

Good Thank morning. you, David.

first results $XX.X resulting of billion, on share In presentation. we earnings in our net quarter, of Page revenues and X billion with the $X.X $XX.XX. of per net the generated earnings start of Let's

favorable was significantly ROE and strong prior As that David an XX% year. performance firm-wide ROTE of an notwithstanding with of XX.X%, was noted, environment an less operating

history the XXXX in industry a first number were deal nearly lead competitor, was revenues quarterly over the in league one with announced in net starting segment David billion $X.X by down ahead asset-backed remain for continued year-to-date volume closed and position dialogue rank were our firm. the that net billion as performance its outstanding $XXX X%. Debt million, offerings performance results of lower underwriting XX% and of In of lower In revenues elevated. quarter, our our closest to equity million, next by significantly of client billion, equity Advisory revenues the Financial Despite M&A $XXX and we a roughly in on $X.X generated record billion. in revenues our issuance of deals mentioned. public transactions. this, volume quarter franchise one the equity-related year, share Banking and largest maintained $XXX billion XXX table performance approximately significantly underwriting, to as lower we Investment were Page leveraged with X. $XXX number market volumes versus Turning finance This continue driven $XXX activity. versus prior on

Client high elevated activity While deals is the be by by given backdrop, transactions slowed out, year will of backlog like from and the banking uncertain from have trends secular last digital capital catalyzed financial remains and bolstered pushed and investable likely robust. pace have investment future transformation levels disruption industries strong, engagement our of across been sponsors.

across This of in net driven $X On billion quarter, Moving results see to within Global in the can in higher X% the on macro intermediation up net exceptional revenues page preponderance $X.X page quarter, rates, were macro revenues in Segment revenues a and strong particular and strength saw FICC, year-on-year. were Markets first the from billion. which strength intermediation of five, businesses both benefit than XX% by These of the quarter $X.X currencies, was four. FICC We produced represent elevated generally portfolio products FICC the first Equities our businesses. in you commodities. XXXX. effect. FICC across FICC activity with billion revenues, our

FICC backdrop driven diversified sequentially. Total lower billion. financing Our activity our at year-over-year, to $XXX combined intermediation and XX% fewer financing year-on-year capabilities with fell global XX% results $X.X million, of record a key generated opportunities cash Though $XXX revenues of basis, mortgages. XX% higher execution year-on-year Equity on due footprint, revenues up XXXX. very which were sequentially in produced both million. the net and intermediation were of and start market-making compared were a these a by revenues derivatives equities in with lower to strong Equities strength differentiator. XX% risk particular is revenues and

While balances levels provide year-end, slightly increased, stronger which to at drove from average declined liquidity quarterly client prime record opportunities performance.

More equity materially including in revenues quarter. to market lending corresponding million on-balance in rounds. this X% asset revenues of losses up public substantial net investments public first largely $XXX Net overall and our in, event-driven in tied approximately totaled million, million to of private investments private six, approximately due of $XXX sheet to reducing debt first All year experienced headwinds negative to sales X. our $X and sight environment. $XXX our quarter of of other net harvested the by investments. headwinds experienced committed we we Management $X which last incremental sequentially. market equity fully time $XXX portfolio, million, and additional on losses Management quarter asset gains all capital of broadly, due financing we $XXX have portfolio for than portfolios, written Moving $XXX sales to and first billion were items, to million portfolio, another line of over to and down to investments on experienced the reduction. equity We offset the in across Asset positions, fees page billion were remain roughly We lower have been and due Russia-related private

revenues the in In Management quarter, XX% X% fees $XXX Consumer but deposit XX% & first higher Banking $X.X X% of driven fees, revenues up year-over-year. nine, up and Consumer XX% down billion, were Management, in sequentially first sequentially of page the $X.X were the million billion lending up up counseling management of year-over-year. on million fourth Private year-on-year, quarter Wealth net XXXX produced to were seasonality and Turning and quarterly and Banking and other quarter, balances. year-over-year. Wealth $XXX lending XX% XX% revenues versus and by

deposit credit and grow We to card loans continue balances.

driven firm-wide quarter ago, XX. long-term lower loan fees $X average higher for billion segments, AUS inflows. a net Next, $XX driven the firm-wide billion, by Combined AUS with the by we at year. segments. first $XX partially billion year funding ended other address XX, $X.X the $X.X quarterly rose and total quarter, Total these and quarter to primarily income firm-wide trillion, market on versus On interest balances billion, offset page XX% higher was NII a first last of lending by higher decline, across reflecting of costs. depreciation management net year-over-year for versus our Across net all portfolio page two and

$XXX Our loan was end cards. up due real credit to and growth commercial at estate portfolio year-end $X total billion versus quarter billion, primarily in XXXX,

a fourth the to due slowing primarily growth as For the credit from in including well $XXX our portfolio was broader the up quarter. in quarter million growth Provisions losses $XXX lending were outlook. first the for macroeconomic million, quarter, provision as in factors, our

to As thus expand grow macro business continue we rates performance. we pressures and lending and potentially are weigh cognizant that on could activities, headwinds our and our consumer inflationary payment portfolio

not have we underwriting our assess where performance any metrics, we deterioration and being in credit monitor and risk mitigation vigilant meaningful continue signs of measures to seen and calibrate While conditions to needed. will macro are

expenses to Turning XX. on page

Our total XX% This an quarterly XX.X%. billion, quarter the drove for of year-over-year. down $X.X were expenses ratio operating efficiency

XX%. Our will our for quarter our net and in driven billion, X% initiatives. our strategic that particularly further was expenses technology, Quarterly non-compensation were by support compensation ratio year-over-year, higher continued the growth investments, $X.X enhance of infrastructure provisions

XX. capital on slide to Turning

$X.X common equity billion million XX.X% including approach. the end quarter common common dividends was $XXX standardized Our under of In returned the X million. of roughly the at $XXX and stock first of repurchases quarter, the to stock shareholders, Tier we ratio

line franchise ongoing relates of we support will remain and we clients across significant momentum conclusion, executing capital uncertainty forward transaction, deployed geopolitical and it environment. for strong quarter first we strategic confidence With plan and an we'll on the open focused NNIP organization. mix now current response our to to competitive our as we returns the nimble closing and both the opportunities almost durability our resilience drive operating any client of second in environment. to questions. results and remain Despite reflect quarter, complexity, in have to As the our the on and business to In our diversify the the support that, macroeconomic shareholders, for

Schorr Glenn [Operator Instructions] line Evercore. Your question first of comes from the with

much. Hi. very Thanks

up. other So, I sheet the harvesting the of balance billion out and $X billion coming the PE $X appreciate

X%? forward of to it's X% look to do So, seen backdrop over M&A the But you almost was still the the that's we've towards that of partial going up original to slowing about that that IPOs. us that to in with question. in no so answer My march all important can a question be, SCB to XX% XX% putting give view time? you confidence How return get

Thank of and our terms Thank ROE question. it's of in in was RoTE the Glenn, Obviously, quarter you Denis. XX%. the results for So you. XX.X%

XXXX. that referenced to medium-term Our you targets achieved by were be

we're with pleased in the performance So really this quarter.

SCB, to equity with for streams, making mix, that more creating position. continues respect and to relates in and investing it the to also our it be durable choices migrate then we As sheet continuing business to revenue on-balance predictable us, our down can

So think strategy remains to intact. I our commitment the

can, We is CCAR our our and the SCB await lower we our to have, submission, hope submitted which we of to from Reserve. and focus aspects all contribute we business response on continue mix. And those obviously, will that that we driving Federal will business of an reflects

that's it's side. far to first money alternative sponsor as someone just as working you it's Okay. a community, I of a third-party you as raise a you largest appreciate raising towards of lot and And what's good Do capital sponsor an follow-up also Maybe quarter. planning give that you so the little the on is manager both insight going environment expect servicer on? -- the disrupted. can little as that

disruptive you but amidst can have decent backdrop Thanks the so harvested much. a backdrop? still banking $X You billion, harvesting

Glenn, there driving still David. capital say I'll alternatives broad And a I of in are that lots on it's jump towards platforms. institutional tailwinds a secular here. of variety Sure, basis would global that are

capital volatility to and to of that are trends context platforms be that's do time. of well-positioned. markets, place. growth think I institutional that, alternatives to quite continue the the And that secular allocated the broad we despite in platforms some amount exists think have those you'll big I capital, in for think I continue In see in multi-product, global others

a still while fundraising the fact period of were think commented amplified will think And and in through volatility. might in I a short-term that sustainable. an certainly of monetizations question is was about that. the flow created this more in I values, the think that. And so With is there think in secular factors of were I pace backdrop trend past short There gone general activity a not that we've place from ebb and to time we where that peaks, affect bit think that. macro were the the of acceleration that I don't levels no than of we've the respect run variety little did

of environment when the see just opportunity velocity an certainly growing have same the and economy, However, broad and lots pace even you real well, assets, still I in where we continues XXXX to in XXXX. is portfolio there to of and are saw a see the like the diversified think, there's at transactions, this, areas economy as growth and not very monetizations, probably in

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

Good morning.

business overall on should you pretty capital basis? of much pretty the cost a So it was Are always the diversity you that model in given think, RoTE XX% given earn backdrop. quarterly of challenging quarter, of a now impressive a place where pretty in the was Goldman

in more of and will hopefully, us investments some has in made to -- never in the a do the that our Well, the certainly a we significant distribution the give these the always I business allowed four leadership plan in almost We given made think over say returns. is grow direction us foresee could to our process anything years that very investments better that or our confidence one durability over outcome other. I that last to could this planning there I be of skewed team because the business business, has word. market time, not and produce definitive that we always outcomes, that do environments of mean, allowed and has

February, I think we not we're out well-positioned. We targets. lay In do out laid these medium-term lightly. targets

to going comment to forward, never given any have larger on think durable but So durability think I business, happen to I could I strategy. move that we're we and quarter, on very and continue in that executing as would we're a we what to more committed add Christian,

you the maybe rates, FICC, risk the demand going to and the for intermediation cost businesses. about Okay. Fed intermediation versus out sheet any greater shrink On forward of its trying do raising potential that Thanks. potential of funding broadly, sort How good volatility headwinds for meaningfully balance think more just and services as occur? figure may sort

more I So on highest a or serving is. with volatility transact. I on know as clients mean, is that. with they big that available couple clients they respect we smart have enough what focused not volatility market bad to ensuring And We're our comment from Intermediation those a and macro I'm their that a position share business. portfolios of good perspective things the to

I revenue now firms a the more on out this, going building business. and five our than financing been quarter-to-quarter. market it made those ourselves financing the also big we're in and one that And frame that intermediation highlight you durable. like in is proportion the client larger today be it are of pre-pandemic. centricity a think gains clear we and larger, very things clients the and -- market and for durable. in we've those we've to about that technology, bigger role to on think and and revenue ebb of think a with financing that is capability That way I'd But that it's approach our share activity is are taking business size one doesn't shares been is of always from can't ago, based available big going that's flow this it that investments back I mean this to addition, in years there both was we've play the for is

quarter won't like way ago. results to going positioned. we're accomplish. today example, for business the I certainly, is the a able quarter And five I think, better think we're of will and years that's positioned every in forward. on like business we what So look activity feel But this in about speculate I the than were client the good reflected, I this

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

Good Hi. morning.

So wanted on to start with question off a management. capital

was I been clear the your reported bit in CETX. I to lot in really given a your inflation. sources hoping given in drawdowns you on can see other an declining give capital You of you in especially risk price? guys have just where how share quarter, RWAs inflation quarter. the you the higher just some on peers that you down the RWA Many a have calls significant Admittedly, some just market quarter, whether the surprised ratios, in accretion see highlighted risk appetite in a RWA of into improvement positive impact of there's accelerate buybacks, pretty the cited perspective And any road? were did outliers the saw market much some could relief of see to was from the of

you the Thank Steven. question. for Sure,

the it beginning We have the NNIP that of As to to was acquisition. would knew our relates for build the second of capital of at pay deliberate. that we the quarter course quarter, the over that

And so we had -- first course the quarter. we've grown our capital over of the

growth. We also were RWA very disciplined on

a Our on growth quarter-over-quarter billion $X was basis.

maintaining respect across improvement. So RWA businesses that deliver the types able our to so David just with to we of to while made contributed reference results were to also growth a that discipline big

now, line to in first would been extent dividend. into and make Now set second consistent XX%, again, with to prioritized to of segment that client my and I terms market extent the at our expectation priority the reasonably We accretive deployment environment that opportunities. first attractive the focused relates back quarter, share say sustainably Markets then clients price, to supporting And clients we'd our to long-term something in the buybacks nimble. ROE opportunities, looking remain is would you is once shareholders deploy be to driving attractive do at it see there growing obviously, the less the consider. on opportunities the for we'll to with shareholders. quarter, Global were prevailing the first reasonably we've outlook, where to quarter firm support reference certainly obviously, to capital remain the look obviously client the expect then clients is north but or on and a we And as shifts, sit that. that return that's with opportunity ROE from I results right to of we that clear XX% you and And capital

That's great color, my on follow-up the for investment Denis. just And banking businesses.

stable individual perform macro next, are more of that the to elevated investment given call macro outcome could You it, a expect granularity would waning banking you I you specifically, that's over risks And months? bit slowdown just first prolonged But the a and noted to we've and uncertainty. temporary a much XX backlogs hoping provide how more businesses year-on-year, was little maybe six to on the good the could the certainly that versus how growing you to them CEO drive market something due slowdown more attribute more quarter confidence the volatility?

activity level equity So quite our question banking and just I'll from turned There's that, still the for that say that still quarter. off is start, clients of quite no and high beta engagement is kind high. Steve,

some would for a pushed market happen down where years, is a mean of to period that that doesn't one the a We've couldn't that and course happen, degree market that the rare equity is of look of a guess issuance supposed the to of so that, bring definitely given quarters over of back it's was have longer the seen are of very equity volatility certainly things low out. the marketplace. year continues And quarter my volatility been got that be very, the XX happened it plenty the will the that, into That expected where periods issuance, or you history. that as when year in of during bunch does, you that but very the that time there the last was And course settles issuance effect. that

as to change values forward. think just have make that on time remains this move expected given volatile need certainly their a need the I of to year-end the I of that would reset those don't some activity to understand and of nobody that they geopolitical in XXXX changes at that time ultimately, to day, we of that some the normalized slow dialogue, or was that investments quite activity versus the engagement the expectations. at in at the quite and very activity note certainly robust. people worse at the the they important very, potential some the capital, world down it's the reset, I good, the we closely. if need the and absorb strategic be a at year-end, level But prices and end got but businesses recognize they As say more those banking kind saw moment business, But year-end levels. and I in we it said to stuff the dialogue. watch strategic on, materially significant materially would going see reality call would levels

I'd describe there's a normalization would seeing that, think certainly I trend. below equity first a normalization. So is And activity, overall little well call some of what of I quarter normalized what think a although, we're I as bit

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

Hi. Good morning.

Good morning.

you relationships you're we the GreenSky, of of already, loan from this you've business. of some recent year? focused understand kind business get I know you're expecting is want we got, just piece could of banking about like the And from a lot new the but investment been Maybe some what of have? relationship. rate capital side GM that that that the growth turn I of growing it's couple that Apple there know to think the acquisitions Thanks. nicely areas we've should the on. years to will talked to the the How what about Card a growth expect And call

those Thank growing the we for wealth we've growth our Hi, losses. through platform financing be business with continue businesses terms and in They it XXX across cards installment that these or the Look, versus businesses in and be credit quarter, a activity. or impact And even to FICC across of loan or consumer that question. the were our focused grow loan at terms acquisition P&L, businesses, across a the raise of about to in the thinking been did a and much now businesses Betsy. objective strategic of very think XXX loan on growth our the in first about primary to provisions you private sensitive whether that the of how credit we GreenSky, driver or you'll whether see it for channels was fashion. have very in

that So grow businesses we that's something these expect across as we them.

We expect to will continue provision. of also the as we portfolio GreenSky grow that

keep So looking it mind remains channels to focused in trying for underwriting across as sort the multiple We're firm. at and of credit quality we so. do

for looking follow-up hikes this the rate next I curve got nine we've And forward few year, kind because something the of more like that's a Yes. year. had,

hikes thinking that that you the a loan you increase little for how as quality of there's was provision triangulation credit increase talk to bit rate between given that backdrop versus I how volume unpack you're maybe much just changes, so are a from And about mentioned? about that? you what and coming When done, expected credit And quality. you've anticipating could

of Sure. very a of we about significantly percentage performance, looking that in in indications you the charge-off mindful a but people very our mitigating remain payments minimum of rate us and at X.X% signal quarter, if risk obviously forward, like a the actions result. the headwinds that, are Fair payments forward of indications the of And continue have yet enough. deterioration, making not our are these very, and of take And can that unchanged credit a on that's mean, its as I of of or focused on. credit their and the the we terms in future quarter-over-quarter. will the in portfolio the standards charge-offs million, remain look of metrics we're as And see change we to some rates they extent given slowing growing portfolios. net the overall in first underwriting we to credit We as at quality question particular mind were we grow. terms box seen think top for be $XXX businesses, that

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

And think way you and where are a of below it I if terms talked nobody banks tough. about would just, don't just normalizing? has to the David businesses think competitor And team, your the I also, just or underwriting about You quarter? and Hi, record one normal said a normalization remaining and know of legacy much maybe is elevated. contribute it's record? summarize a this to trading be capital crystal But in And how could close volatility here? of commodities you Was ball we did equity we above. should market maybe know, how

cycles, say investment that confidence can't banking the I outperformed. we So, to about normal a big run contributors exactly these for have and can FICC nice When myself, in think a together settle don't quarter to targets activity We're no quarter two it I the have revenues I not continue I not talking footprint that's performance, you there markets where it not don't I equity and a these meet that it's to our point. Commodities and a equity very I where market across to we know that I going very for us powerful businesses, good question markets it's capital and level record. that We great broad capital currencies. use where to really tell business that's of ball, but and with investment I'd equity rate them these -- macro business combining both you well and commodities the the be XXXX end in global out, accretive again, first markets I the tell say, just you was the returns crystal rates, it's ecosystem And capital I corporate me across we markets was normalized businesses level I – the to would also degree business. was talk amplify business. produce that returns markets, would to allow banking scale businesses. the a the But are easy when of about diversified broadly. normalization. high It's at for for macro revenues the at the Mike, used very have. we business. term expect capital think look businesses certainly look through mean was that There's what a to you

were strengthen I years for these So in ago and wallet fundamentally of again, like growth go back, than ourselves I'd they creates are them because market compete terms world cap that the that the in a it's in businesses people bigger around we they normal five competitive are good think available for revenue it's you things opportunity for but us businesses, just kind number, business. addition in to position. that invest give to think which a predicted our we of in those continue me not hard

right. All

me way follow then. up a different Let

the, I kind and markets can that's know In directive, terms with part have corporates? of your one you with of market any firm doing your -- that with of, the do share metrics you're improvement how around progress you corporates, businesses capital

I'll out I interesting. I metric, we -- something point it's that I but an Sure. think mean anecdotal is think

We had we've the history lead largest our something you M&A which ever have is M&A the $XXX in we quarter -- table. the lead in table, open have XXX billion quarter. for That's obviously lead one dominate, we when the lead

to the where we we over the can durable. very investments markets. course couple that's us. track shares last So and global seen reflective market of and clients to they're share make closely coming investment strengthen across across them metric continue to And market and think banking a that's make We're tracking them across of sure we'll quite we've our years, also both gains of

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

as and Good as morning. GreenSky understanding, now balance they underwrites think new it where closed. then GreenSky loans? think securitized, loans, we And the broadly, it my sort their that and naturally $XX getting loans that? running? that about From about those billion Thanks question. migrate off roughly How so be is for is should of taking So, should Betsy asked will reissued? narrowly with we but How loans maybe we and idea basically, would mature GreenSky portfolio right? would the should were think about had been my matures Goldman's more this to just on sheet, just level about

time continues balance those up sheet. But onto would ramp as that our of previously. strategy, have we We take ourselves those our over risk securitize GreenSky originate, certainly over balances time expect terms our sheet. would So to to flexibility onto we in to is as the the they balance loans would of retain goal some that

first they approximately in I the billion think volumes origination had $X.X of quarter.

our stepping activity, grow into to is on And with ambition origination so, and to the them them. level continue that we're based of

the hiking and that. beta you cycle And unusual. deposit as for are in now. Thank cycle? this for expectations more for was deposit established It was rate newer and as Great. Last little growing similarly, a then, costs. What deposits Marcus a platform, far

just a yield customer a which As we hasn't really much, because that on is that how should been watching surprising, be about myself, and I've getting not moved go-forward? happy my we're Marcus that thinking it started. But

Fair enough.

observe to right market you a really about experience. terms we in how that the You're mean, of that savings thinking deposit -- betas not we're I our channels, Look, need really rate. through-the-cycle increased the have across

that different But than businesses out a time for other drive support our expectations. because that, less growth and deposit we certain very, of is I our I expectation experience managing of focused continuing previous the of some our that's be have biggest origination the remain will lending We think cycle on our recognize the Obviously, This competitors. our portfolio really at prove through the cycle, But to the outperforming say maturity platforms. the activities than cycle. business part and beginning in these cycles. is we the across would that very will

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

the we away you Great. I'm want your on road from don't here, could hand how next? here, other pay and now I'll parts of the here think I'd as on stick of to what to and what of and of news that theme sure any Apple to affects And map strategy David the a talk Good just product consumer. about same with consumer going, expect buy morning, Denis. love extension give entire in kind about terms just of just Maybe and kind the but later they're then natural obviously, where timing? kind kind coming of

Thank Great. you Okay. for the question.

really So in to terms of made, of leading our a about digital and pieces are place bank, aspirations lot those of the been this north the million we progress lending across various point. to and puzzle platforms and consumer $XX you the consumer A deposit than global investments lot fourth are a at have in good feel that the And mean to the in out. customers million. now. invested sense, active the I less quarter that the number in space we've of $XX our built give was in build

active inorganically, of So and we important continue to acquisition, customer organically see both which is attractive piece the strategy. an

-- this think that product be be product the to next the map an of that I broadly I that that will launch year. already more perhaps of us. expect And be road checking. road we internally, We're important clients to the on map later up will launch will piloting for piece and our think

I the highlight update, the tie target revenue was revenue target. amplify. is would billion that, to to drive And with And we to I to in strong. thing finally, out just referenced is something to The Devin, back said I I our very when because Apple you add it, then target made. said put Denis that investment he of and what the February very, $X just the a want in ground so that that's only of just most want Most partnership investment is

the is lot direction we I we're would spend front that partnership we that and have been not just in comfortable there's -- the a of have say about article and opportunity set with a us or While of partnership. Bloomberg time, what Apple very Apple of with doing commented on

first it's Okay. Terrific. I to year, leverage maybe a unfavorable much comp mix. than the just ratio prediction. with, was I XXX on year, basis and last provision points in of operating But an net give Thanks say, hard for so the of the quarter comp on the would color. of lower know just it's Quick starting the ratio. follow-up kind model even very

anything should full of into leverage current there that kind on based to on overall and read revenues So think we comp just to year just backdrop? relative the about around the is how

will in manage is will we comfortable that best performance quarter. And said first We obviously people we've performance. our on pay a the as the for very also always, ratio Well, pay-for-performance right based We're closely. we're and culture. estimate comp mix appropriately we is the this the This pay competitively. and

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question Your Jefferies. from Dan with the comes next of line Fannon

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

say takes a it experience, Good their months for reset come we we finally levels asked morning. potential little raise to lower roaring an though they the the does would In that months X have still does back, how expectations. I'd your reset is to you they realize about issue that stay liked? David, to ago, than interesting below when originally need that and okay, need at capital, markets it comment assuming long while even maybe take made about you long pipelines maybe were XX for how it's to were yes, say, they the -- it or don't take

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capital think there's intermediation that to it's and going are question, not we that lot There’s and saw big of But on. in financing the levels raising continue work advisory no to XXXX. will a these go I operate at businesses.

Your Mitchell with the next Seaport line question of Global. comes from Jim

a morning. bank the talk Good just Hey. Maybe about little bit.

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should So, benefit as to tailwind results but that a provide first some that too, hike, only the with our one-time well. obviously

that also continue also deposits Jim. we deposits, highlight to and grow I'd I'm for I'd highlight important -- just are to sorry, funding.

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Generale. with of Your Andrew comes next the Lim line from question Societe

taking questions. Hi, the good morning. for Thanks

I first So And I usual. like year, low wondering first quarters, can in ran Last first true-up thing more and was would higher. your this be same to management as being three if of quite year, the it a cost efficiency of then some, in should about year than ratio? And three level also both but the level. then it volatile the full non-comp. what of, it the to kind you a the really running you quarters all, the for at compensation, for for talk seems again guess, quarter a quarter, guide fourth like we had at lower expect the fourth for seems we then whole?

Andrew. question, the for much very Thanks Okay.

full on year for and be. landscape on efficiency overall expenses, level attention the our an lens we based from indicated, for estimate efficiency The of the David that and obviously, could have year, operating of that I ratio perspective a you our be our will overall which a best look target compensation right and competitive put quarter, now non-compensation. what function at the set XX%, we combined framing but we not target and this predict compensation as will compensation full the a for we That what our set think pay is efficiency I point, of to expenses, performance, this level at firm-wide ratio. the first out approximately through,

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question. Great. follow-up Thanks. switching then just type a And as

now for You the something a ground. and a maybe been years the coming you material. products see But get blockchain leader and this it's banks bit try year, off to seem space, might more few crypto a be some in to

what could terms So bit more crypto expect in your wondering maybe you the about of be what commercialized was product space? a and just could could and talk I if blockchain pipeline this we in year

will participates to thinking our in really change engaged interest and is Well, their invested level, that's in different and a around clients' a -- cryptocurrency dialogue systems channels engaged do, say product with space. engaged more terms the think offering what in business at activities of certainly in and But our big bit clients very, about opportunities high at because regulatory we're we're is lead. interest banks in lead markets, that course regulatory the certainly, you I how it Andrew, will insight for into our Sachs Goldman affect supports But we're we're cryptocurrency. how not and little have I'd XXXX, following other me the terms that during and restrictive or very And the financial with don't can the very great in business how a and but clients. broadly when regulated moment, of separate what the infrastructure, payment blockchain we how from about in that of extremely in small. will

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

have Thanks, team. questions, they come for up out me on . you Since joining if like there more call. Erica. you much. day, don't Thank the to do Relations the the others questions, to very everyone to throughout And other no Investor are hesitate thank or please we'd Great. reach

for conclude Ladies call. and gentlemen, Goldman first the earnings conference this your you participation. XXXX Thank quarter Sachs does

You disconnect. may now