The Goldman Sachs Group, Inc. (GS) 18 Apr 232023 Q1 Earnings call transcript

Good morning. My name is Katie, and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs First Quarter 2023 Earnings Conference Call. This call is being recorded today, April 18, 2023.

Thank you. Ms. your begin may you conference. Halio,

Inc. Today is Good be Relations first found Head our call. Investor on the page Halio, Chief morning. quarter presentation, Strategy earnings be Note of of This presentation. audiocast can reproduced, conference our copyrighted This and material www.gs.com. information to and without Officer, at and forward-looking of Welcome website our statements not measures reference Relations release non-GAAP Goldman Carey Goldman which will and Sachs or rebroadcast Group The our duplicated, on we appear may Investor earnings earnings on the consent. Sachs. is

Chairman and am today Officer, Financial I Executive Officer, Coleman. and our by Chief David Solomon, our Denis joined Chief

pass me Let the call David. to

morning, Thank us. everyone. joining good for you Carey, Thanks, and

in of quarter, environment. XX.X%. an and generated In we challenging net of $X.XX performance of XX.X% ROE share solid delivered and $XX.X a revenues first an and earnings billion produced We of the ROTE per

certainly the we witnessed quarter at regional the March, in first benign States. banking year, United the collapse start particularly of environment the fairly a was banks the two operating The After of sector. volatile, in for

regulators ratings financial across arrange declines stresses largest Stress a to number we of help the limited to steep two in not were combination Switzerland's institutions. we and financial quickly when sector as where institutions saw saw very short spread These of downgrades valuation the order. U.S., the

size the appreciate to disruption. important the It's of

of XX seen in XXXX in intraday. in move U.S. four days give September were them this have move just magnitude, a the the particularly Treasury Monday, one-day Some yield was the past points sense One or there year. market XX of the in more over years. and interest the by XXth XX March occurred two-year the in you basis biggest years rates. two-year mid-March was three To during staggering, moves have period been yields that in of

bolstering stabilizing it institutions. stress events us. the that the financial sentiment. regulators and confidence appears volatility the resilience test largest today, sit we in real-life the the first is as they of demonstrated country's and behind The by market another action vital Prompt here As of acted worst quarter of was

of joined been consortium source with the vote financial in system. commitment uninsured G-SIBs into institutions to The U.S. strength First a strong other Republic large send have to for $XX a a Bank term We banking of XX making deposit sector. the in confidence the and billion

our navigate enable have managed and when our for periods and planning rooted environment. they occur. unusual Sachs, and In history, us the before Goldman and react this helped to stress for that long-standing XXX-year lived deeply we processes our rigorous us quickly do of As management scenarios and it's effectively disruption, risk culture tailored many through

impossible the market navigate management strong it's While and continuing clients. our to robust will take support to execute complex also to us liquidity, we stress a exact won't our actively always capital risk culture, form have predict while allowed position environment a and perfectly,

and risks FICC clients was their it clients had with intermediation capabilities. financing for quarter, our backdrop, needed their to strong managing expertise turn helped and Both we execution and this a Given as clear Equities needs. us help our and

variety resilience in while with to a show and our through-the-cycle of markets franchise in remained given capital All-in, recent Underwriting of industry-leading way meaningful line targets averages delayed of markets delivered the our Markets This returns a Banking activity, extremely and given broad muted businesses. environments, diversified impressive remained below market Global from further in XX.X%, however, disruption. reopening as were advisory and muted. activity set continues & capital market even

is susceptible to a Management mid-single-digits strategic fees sheet progress, prices. Management It as our on-balance returns we've is these while continue investments in Asset Wealth to made still sequentially, in work were to the there positions. grew do. priority across to remained reduce & asset segment And but volatility

underlying Platform on positive towards we In this Solutions, than profitability. provisions quarter we driving and trends saw business this with greater remain focused revenues

explore businesses. alternatives We to within our also consumer strategic continue platform

quarter, we sold portion first loan and Marcus held-for-sale. remainder our portfolio to the the In a of transferred

will it While financial this in through in our AWM reflected consumer now activity is our space. the an focus momentarily. the that of narrowing impact segment, example of is our you Denis take

GreenSky business now first quarter process is initiating FICO a to on performing and originations the and well loans GreenSky. in is Additionally, up the believe over originations our of we good of explore sale year-over-year home XX% are weighted total improvement We with XXX. a core over

however, priorities best business. may be strategic holder current our this not long-term the Given we of

if when will and progress are you update on developments. material there our We

like is As in contraction appetites recent a to banking I'd expectations we're Businesses a higher risk watching is close, situation consumers an the rates. forward acceleration say few The is banks' a trend I adjust of and a continue the This to outlook. the given words environment credit to and extend lowering about a there higher are and sector events credit. closely. to of limiting growth interest

well trajectory the we that about the be prepared weakens continue in the forward further. still to cautious operating we firm that and economic unclear, such While we environment the the are outlook is are event

opportunity state the set long-term Overall, very Goldman of about client I our Sachs. the franchise feel and for confident

people past of quarter events around the continue position the to and with the have clients' serving range the broad have the world strength illustrated, As needs we are operating in a excellence. place of we of from

end remain and grow committed to leading our of And while strengthen our Management and business, & on are at clients we we for shareholders. much to strategy Banking Markets held and transpired franchise we Global has our since Wealth Asset & Day delivering focused our Investor February, the

it I results will detail. for more Denis now to financial quarter to turn our cover the in over

Thank Good morning. you, David.

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

of Global $XXX by segment, be X. XX% below which revenues quarter, the XX.X%. industry-leading Advisory produced were Page performance amid year-over-year. Banking lower down in million and were of completions. first Turning revenues revenues averages recent to & ROE Markets on Underwriting industry continued of segment starting billion lower an $X.X the for generated to

number the Despite we were for league the one completed tables high-yield backdrop, in difficult M&A underwriting. and debt

for We also and equity-related ranked underwriting. second equity

fell quarter-on-quarter, year M&A. backlog remain Our optimistic strategic the we cautiously the half for of for Advisory, the XXXX, primarily in second particularly but outlook and on

will reopen We second the but investors financing more two first before an dialogs the have certainty of in seen also broadly, expect underwriting we increase weeks in need markets quarter.

in our down first rates in one offset were and billion of of lower $X.X more results revenues quarter net the currencies quarter, slightly commodities strongest FICC FICC XXXX. sets In XX%, revenues as very were year-over-year. rose the was than of which financing, significantly in revenues, strong by

in offset X% coupled Equities net A was quarter, and revenues by higher increased the improved spreads. decline customer record billion intermediation revenues driven revenues with partially down year-on-year. with of increase balances activity were financing $X.X billion by $X in the sequential

remained billion. and XX% & the loan of our in on driven of Though debt Asset and held-for-sale, to $XXX year-over-year a decision sale with business to record in Moving $X.X lending given portfolio as rose consumer Wealth transfer a and XX% strong, well Revenues of investments, portfolio equity Management fees underlying trends year-over-year, increased the our partial to private other in the management remaining Page $X.X as year-over-year, million Marcus results and improved as of line X. narrow ambitions. fell banking to revenues unsecured strategic by our billion

largely offset million was associated reduction revenue million. $XXX of by $XXX of The reserve release a

with All-in, the reserve we benefited Additionally, the quarter. paydowns. profitable from associated portfolio and NII was loan Marcus releases incremental for

equity Net related CIEs to portfolio, $XX revenues million in partially estate. our $XXX of by million portfolio, primarily real our billion within gains $XX net were investments by for driven losses $X $XXX billion equity related million offset $XXX revenues to on of and million, public private

we $XXX interest experienced million. are of driven net of million were impairments $XXX approximately on portfolio, reflected quarter, million, expenses. investments by which income our operating CIE revenues Debt in $XXX This

a Moving fee-based by net $X.X assets Page as consecutive as quarter quarter on $XX X, firmwide appreciation XXst of driven representing trillion, billion long-term at record long-term well of billion $X ended our under market supervision inflows. inflows, total of to the

in also $XX new liquidity inflows amid flows products industry-wide and the in meaningful strength with from billion existing the saw funds. of net clients a We market money

assets Gross environment, solid XXXX given Day totaled billion Turning supervision fundraising the to $XXX million Alternative alternatives. $XXX was total under third-party to billion, and for Investor management the our end the $XXX $XX of on first billion. and other current in X relatively third-party fundraising the Page since at quarter, driving bringing fees quarter.

our good forward XXXX we about to the we for and slow confident fundraising of in remain achieving pace to expect billion. the continue $XXX While path the feel rest of target XXXX, of

challenging billion On was of investments historical approximately on we historical investment the $XX totaled Despite balance in billion billion, $XX related our sheet by to balance $X.X the quarter. reduced environment, principal these investments alternative sheet which portfolio.

to committed our reducing reduce portfolio sheet density, balance year-end. principal than less strategy by $XX billion to to historical are including investment We XXXX

announced Solutions on platforms. turn for week, Revenues X. Card in growth the of now doubled million savings than more consumer Page balances we year-over-year, account of Apple by I'll to Platform This users. loan in $XXX launch a driven

for to Apple offering deposit introduce partnership another additional excited source the with are and to funding We through this deepen of our firm.

million slightly quarter were year-end, while lower deposit quarter-over-quarter deposit banking, amid of balances transaction higher costs. modestly In revenues $XX the higher versus ended

to we about regard, positive our we as to count business XX% existing we aspire clients provider. February, in As client at approximately further In focused spoke clients and the our scaling on this by this with momentum on relationships platform grew first Day the primary with in new our we're service deepening quarter. as their become Investor continue see

activities net of fourth Banking funding first firmwide costs down driven relative was X, the Markets. quarter, quarter billion Page Global $X.X supporting On income within to in training XX% by & interest the increased

essentially versus quarter. with updates, release Our Marcus end roughly a in $XXX reflected were mentioned was unsecured fourth quarter the reserve benefit the model million, including portfolio million offset losses Provision partially $XXX lending at total credit of previously by net only $XXX associated net billion, consumer charge-offs. portfolio the which for unchanged loan and

structured moment on is warehouse portfolio, of in typical by of real billion property lending conservatively and funded $XX as exposure This billion CRE portfolio lending our LTVs $XX diversified form loans. we the approximately XX%. commercial with estate quarter-end, a of Spending of includes of type had

Total Page Turning were on billion. expenses operating to $X.X expenses quarterly XX.

of were the year-over-year up $X.X versus billion, aforementioned unchanged Our expenses provisions compensation the Quarterly impairments The was ratio but last as related of the to was quarter, NNIP. increase essentially year. driven by the fourth XX%. as well CIE majority expenses non-compensation for quarter net versus

Our was effective XX%. tax rate quarter for the

tax and we a full For expect between year, rate XX% the XX%.

Turning Slide XX. to capital on

under quarter first of In Tier ratio standardized the shareholders, basis Our X at current to the buffer. and including of stock common over management stock returned the billion at dividends end $X.X equity end the requirement XX.X% $XXX our top repurchases quarter, the common above approach, and we billion common roughly million. was $X.X XXX of points of our

note expect relative given the current current to first to at dividend, levels find focus we in the vary. continue will we environment, to price levels in we stock growing our sustainably expect repurchase our on second Though While to of attractive in quarter repurchases quarter we any would quarter. our the moderate that light

results environment. a In of volatile solid were context conclusion, first the quarter our in

businesses Markets to in Management, Our & of clients our priorities. our them robust remain positioned us to period strategic financial navigate on market leading this position support and & execute continue and serving Wealth we our well helping to Asset Across disruption. clients Global and Banking focus our on allowed

the that, for up questions. With line now open we'll

Glenn Instructions] Schorr [Operator with from Evercore. you. our We'll Thank first take question

being Obviously be about must that and in about I'm strategic that you Hi, then community? conversations. confidence. on what you how optimistic mentioned you what Curious, particularly gives what you're And back-half, there. curious the -- sponsor the the M&A side. Thanks. seeing it

Yes. Thanks, Glenn.

right. no I'd the to have dialogs. on the it so question, say ability you're about as we I course picked some dialogs see. to with the broadly, into four has over has active affects down when the we There's no the year, question And to came slowed forward talk about last that people -- in confidence dialogs there's the do always gone and and of can weeks move appreciate It questions market new the talk be things up. M&A and of what's we this for certainly and

activity, they their a I strategies. to companies strategic from But when position you about think big strength they're most continue big think where have scale to trying advance and make operate the the to competitively sure

the over that more have are you actually seeing dialogs And strategic or a those quite announced handful so deals if there have of been of the that. highlight course two, that look week And we're We're more the active. fruition. last I on companies of dialogs and to hopeful their that's steady to execute position. a come part of to that just so that like that will continue strategic to The improve think need diet. been

more cost is a to a the deals sponsors, respect sponsor sell-down good as of still the in I is through deal to where offer the on kind bid upside sponsor was we're reset. reset and and legacy I'm financial with financial the would value a came or financing activity two point -- one muted the a encouraged by quarter, financial between saw but in the both price to value fact the Now, a came the financing going we continues. meet. could There a achieve and say that there of market, data and still

get we're of really there quarters disruption to a just reset. more second the in five much now gone takes year more for reset. of economic I a there. pronounced I'd kind was half We've people the through expect think to of because time going strong, unless it

of speaking, four after things so on see turn you to six generally historically, And quarters. kind these

level So very what's very, a would expect just base I more of activity of from muted. been

maybe build that, bit we wanting building about on did growing. March that. it or during we the because on to saw, March I'm a the And transaction it's platform on acted doing deposits those transaction there strategic events still of any banking Thanks. your on maybe companies position, notice any about curious could that deposits? behavior with your comment and just Appreciate crisis? And of -- of terms talk encouragement did rethinking little their direction taking in you're any what you the how noticeable cause those banking was

the banking question. say very remains around Glenn, business that transaction it's Thanks for Denis. I'd very, the strong. our conviction

my think quarter, XX% I strategically, amount very them in about script business on to something we first highlighted quarter, we're I were clients, in with very, position the client it's the this more improve year. last of to what focused in and long-term by and grew continuing focused similar we able to that a to over our steadily create we're observe the and is, more our all is offer which on services value. And the count grow

the themselves were a about expectations, over of they our in as in $X billion. performed they line ended how think I terms indicated, the and with quarter-over-quarter deposits of we the course quarter, just on basis up

Thank Poonawala you. We'll next from Ebrahim America. take our with Bank of question

how expectations face the us extent what just fixed-income Hi, give from guess lagged good rates One, you what market, this volatility. evolve performance macro quarter. versus To things questions. address of you there this peers. the up David, here, if and some a happened just would your can, morning. you flavor hyper in but there holding of are how appreciate volatility around funds clients' in Clearly I the trading, was can happened to two referred

Yes.

the it's this FICC. had just been think quarter -- mean, had morning to that question. for And billion that. a quarter. nearly perspective, in we quarter I'd I I what think top-decile $X watching highlight I a appreciate We is, just very a interesting put So that's in I solid

eighth record. -- I I had we've it the quarter on best think was think

quarters. XX got I we've think

way a that's was we FICC a number it the billion, So solid just look solid quarter. of very performance it, headline $X and the at

a our we clients positioned our I volatility client throughout well. and think clients was quarter, were well activity It quarter to was certainly in serve the there and served

were just versus but first that the last XX%, outperformance. of last year, when If was the we flat FICC our by some of Now, the quarter down. remember year-over-year business the morning had year see down early from the first revenues quarter average was release, noise FICC in of I first significant of in year kind quarter I correctly, our XX% the last of competitor or up

breadth look can commodities you first We commodities of much our business. perspective. significant more of had outperformance XXXX go the and a our from because the at base And business in of that quarter

remember commodities. was and Ukraine So back in if the you volatility clients more very with war active commodities first of the there in started, quarter XXXX, were in

And quarter an the commodities it first of so was outsized quarter in XXXX. in

in quarter clients. think I was our serve overall, to strong. there But And were FICC any the was performance standards, it good quarter. We by a

given of our finding an activity think our the a clients. so the uncertain and we're and I continue of we're positioning, I moment. lot environment in, with certainly operating and that clients to be there's period expect time active active would It's at movement to

just focus financials. over then picking well sales. pace big Got the up does it. on Day markets held the Investor for the How that. obviously pretty And ex that? up was I a influence month last separately, Thanks Equity guess, post asset environment

that, asset that and in any versus given the back just Day the of half buybacks So pace maybe that sense how about of does the change of translate sale Investor pace into how of and today you're year? thinking

Yes.

about we over historical the disposition billion made the also $XX script we of the and principal course investments, So under in in to we target billion $XX just commented to next feel more $XX number get of the fact the billion the from script we them highlighted just to on months. on reduced progress that we our highlighted quarter. it's the we that track the laid during XX Then out that that over

management but slower, to of and the out, trying reduce we it. business in obviously, believe, fees a to and grow we're on there take move when a and question big of we're no And that some committed zero time. legacy investments progress that lot positions. as that little that over see the we we might are There's continue headwinds, change a going pace change about to with in do business, market that to what good volatility are feel bit to are we will meaningfully. go We to There we're

We'll from Christian our with next question Autonomous take Bolu Research.

Good David and morning, Denis.

up the for tough month March we fund closures, are clients, follow deleveraging. question hearing some of hedge on saw feel very Markets did to on your business, Just a like the institutional of particularly

the hedge your I trading particularly the to the does businesses how outlook of market and inform given, that share, view your exposure guess, community? Goldman's So fund for

our participate competitors, obviously big participate our So do share I and actively We but the appreciate with question. share they look on when community, hedge fund too. very at you the gains. We're that focused very community fund hedge with

very are also We significant the institutional community. with broad

said focused I the clients previous in just lot because We're moment our are very on share. a going question, As there's our market at active the on.

As we markets our Investor said XXX a with with where we in look metrics Day, of that in position deal more more can business. we we our continuing out at on our and advance the to laid clients focus top

share our We optimistic serve active. continue will to do overall we environment, continue clients clients, be think position, be about to to and this our ability our in

a is you ratio attractive this buybacks? you. Thank capital are very at seen clarify Your And capital on question Can your slowing level. then you maybe just the why point that Great. is return. healthy stock to

a interested in So in. know not wealth it. acquisitions for I appetite I comments the space, then strategic stress space your There's you are any been get a And on sure guys that is management lot which of here?

go conserving capital to So if offense. on you're here, the curious

to in case, on Denis. starting overall in to sustainably increased return but to opportunities deploy the to this observing very committed it's amount We of behalf in QX, the you Christian, the shareholders, growing committed we And of into of clients. franchise remain capital. to appreciating significantly activity QX. also profile, for the capital committing capital dividend, we're point where around our return Sure. obviously, the Thank buyback question

there elements the uncertainty macroeconomic environment. are overall And of in

be And we'll expectations will quarter. is that so course our the that moderated, of over monitor activity buyback but the

As to the remain to shareholders. capital price stock you return like say, we committed and do of

Steven Research. Wolfe take with next question from Chubak our We'll

Hi, good morning.

morning. Good

for we The So but on to just here. helpful release, Solutions. I we similarly, conservatively with for saw forward, line about well And for good. credit top expenses about expense. understand reserve momentum's thinking should how that the trajectory be on wanted trajectory to perspective Platform think in question get the up just going in the step start provision some expense be off from a wanted just segment. a business this following had as how we significant quarter's reserves know It to as pretty both segment, should the you would the I accrued

Sure. Thanks.

the have overall think trajectory segment, back. of step to In I the terms for we

Our is driving profitability. number towards one focus

also remain what the time. of continue course We over look certainly ratio. efficiency committed we not we to to we of quarter, the Maybe improve mentioned that every to outlined. a given That's but period

line As we've good seen top the you say, performance business. of

our better observe we was GreenSky some point-of-sale on And it data. of take more had is to for business able time, the release, than reserve in actually function a period it, been owning performing And of modeled.

And so that was release the to a in segment. the reserve contributor

We As obviously a XX% of now of level reserve platform. function go-forward it in across on a basis, we be space. the about roughly consumer the it's have origination going activities think to a

that provisions sense how to on So based of give origination activity. you can a forward model

bit I at and recall some Investor ticky Day That's follow-up just for but expenses expectations, great, you to Denis. charges. were a a absorb expense maybe question, noted than severance the tack modeling more higher like on And the need my

related base we pretty targets. the quantify some portfolio. outsized think had CIE of the impairments just us versus one-timers your also as about longer-term Was this can level help you efficiency quarter You of maybe expense some benchmarking hoping to in

you Thank you. Thank very much.

take that in pieces. So me let

accrual, comp of is net embedded of on revenues and our with actions XX% that the provisions. of expense, -- of within XX% that associated which are any in included That's quarter severance -- the of our terms number. some the first In we took a charges compensation inside overall

change quarter-over-quarter you but of a as were expenses, did CIE impairments. flat the terms include, they on in In non-compensation know, $XXX basis, of million

that 'XX of between of call That with quarter QX together to And the QX explain NNIP full this important also explains year-over-year year. that the delta was it impact helps and a the thought we in bunch so out. line 'XX. And quarter for first of delta that

our Graseck Betsy We'll from question Stanley. next take with Morgan

Hi, good morning.

Good morning.

questions here. and your around the on dusted, talked it sales would that as comments say be a GreenSky, those consumer for just repositioning? the One, loan you couple of about today with the and that repositioning you would consumer done with So that Marcus are quick

I clearly what think, focus. Betsy, we we're is said narrowing the

continue interesting We it, platform deposit that do credit us all do the going on are platform. opportunities things focused successful we other think things we're can and how to be to and strategically make examine do our card our for I there we to as to operating continue but think to possible. that as about

just best highlighted, GreenSky. necessarily I owner of don't think we're As the we

that, we'll platforms and So we're forward bring to on -- action to the card profitability. the taking move consumer continue platform to then

How some that you're release so there's to And utilizing from should we be going forward capital here? that. as nice comes we anticipate that look

respect just gives with So activities, back that the those deploy capital some release incremental see and/or shareholders. in either how we us from franchise flexibility to back that as of capital to that the returning we ultimately

Thank Mayo Wells from you. next question Mike Fargo. take We'll with our

a strategy. there the were on little loans, year-end, sell? you the I with much just billion at intend do consumer did to more And $X.X bit Hi, repositioning rest? what do think How Marcus the you in

that over position the has of sold so $X Marcus time. and moving the down balance we'll and to been held-for-sale, we moved billion be looking loans about at So

were took a the marks portfolio? -- the it what those $X.X you in of the entire on so that how what much -- on only loans, marks billion? or these subset And Was

portion we through our reflected in reserve So And And $XXX the marked that was market. million balance million. release then -- to the sold you'll we revenues. moving portfolio, the we of a number entire $XXX marked and net see the

think and you other the had for generated we portfolio incremental we overall net about If quarter, paydowns. the NII,

generated the and profitable quarter. for million north we revenues of whole for So was quarter, it the $XXX

the into the and quarter, second forward those on generate that income down exposures. we'll of balance net move move we continue As to interest portfolio

Brennan UBS. our Hawken take question with from We'll next

Good you've competitors Thanks up a believe taking to I are the Glenn In indicated past, that I'd question morning. questions. conversations, follow regional banking. a the my first for the of about that in like on asked transactional the lot banks there. that

stress seem strategy to that the I case. So given seen are want and quarter? of in would continue that then first scale And that in of to capabilities? stress, that around providers, concerns inorganic if we how And the order the or have those shown you here build you to we've to on some continued your confirm venues pursue the you see that's momentum some add adjusting to

Yes.

people that the are question, very on is platform, it a have for it product and here to we're think -- are treasuries do operating getting are very obviously we transaction in deposits we corporate positive. banking, CFOs our platform. Brennan. product. take allows because clients appreciate what It's and good about want attractive So The a how very the us the good to deposits, stickier from we And but works, feedback that offering,

technology that that value doing bringing And to way hard clients, in adding the so sure, working to we're a platform. that we're the we're as make grows what attaches they're

this results, short-term but long-cycle These positive takes They're We day-to-day not trades. decisions. seeing decisions on are are time.

count highlighted, customer As platform. terms momentum in Denis to where we added people had our of good themselves

the product we're have so with this G-SIB we size excellent And we're offering. coupled our to with way a the going business, continue and fact Sachs, well given the we're that on focus Goldman positioned, the that. to compete strength an for positioned and of do clients think, to as I

focused business we to are over that time. stay we So to on and expect grow the going

close the announced Great. arrangement Marcus How Thanks for own should do a potential yield relationship that about specifically? that we Thanks. pretty color. And little Appreciate it. your And then deposit risk on that cannibalization with of is Apple new for this Apple. and with you for then all Marcus, just And morning my follow-up, the offering? you above. deposits the manage the economics how to think

So thank you for the question.

obviously So put Marcus this cardholder whether channel obviously always a looked very a is to overlap but has to somebody who closely on. cannibalization. for a and we is the that us our good any that broaden cards credit deposit the opportunity up is us watch that -- small, We've It's deposit launched this see and channel. gives and deposit to a that's But something another who open way or another overlap not holds at who to we'll between credit is closely base. to it's holds for us yesterday try deposit there obviously deposit for

think we'll the so at is I it's it And interesting for and watch small firm. carefully, but this moment the an opportunity

Ryan JMP next our Securities. Devin question from take with We'll

I highlighted just picture. Great. also you touch financing firm Good bigger for to equity an customer the area morning, and spreads know David, in on focus but is want this I activity, the quarter. Denis. of kind appreciate of the strength

during kind that So that benefited to point, the quarter things we're for year. better of about maybe the that off reasonable into of think syncretic where kind jumping happened whether maybe business jumping for rest and you this just outlook and quarter first of do a second if is from a market the quarter and love of the the actually the or off just stress

sort understand and you that some you of the I'll context appreciate Sure. the to question. give help sequential direction. activity I

reduced lower lot year a were our balances based we levels and also overall of last end overall into on our So as market footprint. the

so customer capacity, spreads. increase we activities, clients an first in increase increase came as engaged balances, the were in We saw re-expand to we with in us. quarter, And into client the able

We've place and identify some clients could strategy engage had a platform with the of to that on come us. for in types new to time,

say working that I'd of And on that. full we're ahead speed sort so

priorities as & business. continue to the very, key one Banking this be very focused the Global We within on Markets of

Okay. Thanks, Denis.

bigger here. picture a follow-up Just

share takes periods during generally of Goldman like stress. feels market it So

And in other the system on a period extreme so maybe perhaps banking of and just went but getting pretty we're of we through stress not. side it,

And market take like where you've so result of last share maybe now over lean broadly, maybe an the month with opportunity a of terms capital can areas becoming past? in take just so? the of couple to you're system think just there about share should new where with balance sheet in to top done for as in banking you or a forcing tighter more are Goldman feel as we the Credit the areas market incrementally you in How what Suisse and maybe likely your acquisition happened going of

our and think positioned. Well, markets I banking is well franchise core incredibly

I a for performance wouldn't think performing can markets, our banking, quartile IPOs, it's M&A the I see investment well. top it capital activity. But certainly in with quarter. markets and segment, a You traditional banking call ROE this XX.X%

and at breadth, have little XXX our global share. I continue continue on as We footprint, our performance moving the And well. them to to capturing focused the we that think, on commented the to XXX, share earlier, expand clients strengthen bit be and we're to serving the top now looking franchise, making up I top sure the a and

given other think, do on, there I are opportunities. the some of gone that have things

wealth to opportunities of accounts We're private one interesting want diversify in is wealth in think large Swiss had had both business have. relationships with seeing people lots private the I the see opportunities that our certainly opportunity we private consolidation. We at the of as a wealth Europe. over institutions customers

And so that area focused an on. share for we're that's

both well Global & can both very & and think are Asset and also franchises opportunities to Banking strengthen we So across look that Markets Wealth we positioned. Management position our we continue for

We'll Jefferies. go Fannon Dan next with to

Good up morning. the third-party fundraising. on Wanted follow Thanks. to

funds cycling might also, of through that some vintages the that of I on certainly or go what about environment. the term, great coming you kind strength terms surprising your a You could of year, highlighted pockets be bit a continued not in as result maybe had longer this cycle? And rebound year this given slowness another guess as you and But as kind in of that the conditions pick that's quarter, talk up? could you of but think line of economic slow

XX So thanks billion raised a a the of offerings billion, and raise lot on where remains to that now we up of for looking classes have diversified about the in market could the funds. strategic good actively question. first the slow indicated year, basis Obviously, this we we're feel focus We that. to about quarter the pace very $XXX in $XX With for over asset across do us. balance area but big

of enable diversity assets. to it's that's types continue think the breadth beneficial. the proving be our to and is raise different types environments play to breadth Different those really the going towards I and will us think, franchise offering, to strategies of of I having of

may we be amount even for we So that that what indicated this in year, the we'll conviction though later pace we just platform. given it slow total strong on had indicated, across see our

that to continue longer-term and have and on XXXX, set for footprint this our given there's spectrum, position breadth and have that our that there global say, happens you have and scale offering we that the across business, grow in And the alternative Dan, we us things I'd a of the the is of but a broad you goal the lots we in expand is target for just nature this to of one as room platform. business target,

still stuff, us is XXXX this once runway a get the but of -- too. so lot long-dated And we these past there for fundraisings, is long-cycle are target

at the of a Thanks. expense programs we range year? as follow-up, Denis, that of in Or you remind on those quarter? from the And savings pacing first what side. think realization maybe us highlighted the was on of some savings of just billion this then Investor the The just realized about Day, of $X

continue to outlined payroll platform. we and million target we're say those this And to we I'd across the the other it, efficiencies. million, in look efficiency for at So thereafter. initiatives year continue reflected see Day, $XXX the on about to we balance opportunities rate that incrementally those our at and over year, and that drive have of we'd about and course half of efficiency, expense of see non-comp we Investor $XXX run and about

level quite area professional of overall on the fees. time One had focused we for some was

that you of non-compensation And grind sequential you'll of making items. look to at expense, most continue We line against our if overall down. some components the of progress the see good we're

our next Gerard take from with RBC. question Cassidy We'll

Good Good morning, Denis. morning, David.

morning. Good

how by we're conditions, obviously targeted have activity IPO principal get market you levels investments, markets of bigger goal $XX to David, for in your this that you the in billion the a and In seeing? comments general you Or it it is those area? just more will ECM and mentioned market is quickly your your impact market conditions about the end 'XX. of headwind

slow certain Well, contribute. things comments all contribute certain assets, the contribute appreciate put question, availability valuations these investments. and but on that understand it general in to that I the down, to And at I assets; coming historical laid we on the perspective think sure IPO our think when there of there to just move want principal Gerard. want appropriately, on we on lot contributes this a because zero certain are tough market out or few I a can is Financing people assets. years I volatility to Day markets, to might the make plan obviously Investor over close

to have We're going get $XX target. to a confident that to on execute the of to we're billion continue by target that We XXXX. end

think can I potentially that on basis. the about things any people the we execute aware So comments to and us very turns plan down. I down environment this could on but to slow I to wouldn't market wouldn't to to more to moving laid quarter-to-quarter we're this I on out a we're to be work that that way along or difficult, reduce slow the we're overstate basis, want going that, think quarter-to-quarter But zero multi-year continue target. focused this, if that on a the is close down. take and to

guess, back half more how stabilize guys stock? of to slowing the guys well in you capitalized. should Very quarter, in you're touched is down year ask, If and And that a markets the in here good. it I on bit important it the for I to get aggressive second maybe conditions you financial -- the market very know need share I second the the buying repurchases

think gets think how looking allocation client incremental question. our opportunities Thanks Look, to for there and the overall be we capital about deployment. against to framework, deploy it for could our where we're franchise opportunities back I at

some remain while want committed Given seeing mindful looking of the overall the of that. we're in mindful disruption to we and want remain of being right operating so to returning capital strike to to environment. We markets, shareholders, balance that we're to the

Investor at we clearly I'd when may accelerating is said in highlight, we also Yes. buybacks. still to That I -- Quarter-to-quarter spoke we just is still in place. focused Day, want but that are also that vary, place. on

perspective just kept And that also so I too. want in

We'll Jim take from Mitchell Seaport question our Global. with next

Hi, good morning.

improved dialog at in quarter. levels hinted you think underwriting I the to start

you see major step have another a in give more environment in you can you're and how the and just market ECM color we don't what macro? So evolving, seeing the little DCM the maybe back assuming

Yes.

There to Levels certainly I muted. some some that of and in still think were there get are number have like greenshoots. we're done, February. there There been a greenshoots out obviously we'd are seem below I transactions to some have a settled some level. seeing down of trend indication move get to given -- significant But prepare starting forward, we're little markets to still to think things bit.

earlier capital have have five kind rebalanced get that Generally to quarters. get the you their these of to needs slowdowns plenty As the strategies. to after But when on you they to We're is in history I speaking, raising markets quarters or said four in. execute these of done. you -- there windows typically that close, six people capital that conversation, tells use

very some hope point, but from levels, won't been And starting improvements we this in what volatile I'd are have the a had more and unfold March, muted so how to see we to we say is the into back just And but my and slow, very and greenshoots expectation half see the of still again. have see or quarter year. we'll things at watch are things

see pretty it improvement FICC. Okay. and on the focus we financing, saw know a that financing space That's that's as on going of you FICC in been side, well like saw spreads growth that forward? outside volume, of FICC doesn't Anything a about to but look how I helpful. the And strong just then equities in on -- maybe and think

clients. Still up slightly to as very, to on opportunities indicated, we be continue the committed which, Sure. was to behalf very year-over-year. business, There deploy financing of FICC good

across the as sets financing for calls I market think engagement go-to of the space. the the FICC made progress of of couple a lot that last up and share us progress over provision of client one the we years

equity combined Global our real that, Banking about feel So business. for remain We priorities Markets the good with & financing, it.

Jeremy question BNP next our take Sigee We'll Paribas. from with

marginal wealth I could Good a share where in from regions to a you? a about you is America? Could the and management? since more about You you. Credit bit but talk mentioned as those opportunity bit Latin firm to Asia strength they you for disrupted you have that morning. Europe, management Suisse Swiss get more more banks Are take or Thank are in talk a also wealth sufficient the bit

do On so you America, more and footprint, look there -- Latin are many but really the of world. especially global dollars a opportunities is the individuals marginal when at we there deal us, part as very the for it's for have second us, I think question, wealthy in around

strong that Latin private America. have in our also focused on American our very, presence Florida, where comes We into Latin is wealth obviously, very business presence

So there is opportunity there.

We continue Asia. in to have a wealth broad footprint private

of We think we with the couple have been as a in on the been couple focused is is which slow haven't Asia over of last the a years. of months over ICBC, I joint and wealth the course opportunity, did venture but of course us. We investment in for small an launch Europe opportunity and as Asia in last over private growth

that providers. are I wealth wealthy on individuals think to interesting they the have there is look as multiple platform, thing our tend we whenever very is consolidation, at private

is their of people then as to diversification footprint and there people talk there consolidation, whenever rethink So opportunities their the are to footprint.

the And we are that clients. wealth on and teams so our serve private focused those very way

helpful. That's very Thank you.

question Thank you. Lim with Andrew our take We'll from Societe next Generale.

morning. good Hi,

individuals your focus sizing there more and about talk able first to consumer you cycle. advantages side. on manage you of up of argue what see point Perhaps on expenses It's be some my how would cards competitive being quite you can arguably growth is perhaps high think tends and cards card a the about your credit about a So reflection not in question credit as credit late specifically in environment. the this in inflationary that to

Thanks. Sure.

last We've have the business. -- know, over that we So as been next platform the card over you several our building years.

with balances. partnership relationships and partnership General a we've our those been Motors, and with have in Apple, We building steadily investing

down were As is believe volumes, overall and a business the seasonality you credit and that is it's total the continue an diversifying. piece but of this of indicate, given some overall just standards the underwriting balances firm origination in and invest given sequentially, that environment, given to our actually we

Great.

a March question think well. Okay. the broadly how evolved in and that maybe second you repo I've about and got more how as crisis about it we saw the situation

that of for lot SVB So repo of been happen. easier advice I of avoid a if just losses. afford been them those crisis a lot wondering a they could lot It have the didn't to those that assets crystallizing decided mark-to-market situation, their was to obviously, obviously situation. to those about why in we think And a if from below would guess in maybe assets with the confidence Fed value, And sell to the market your and as the retrospect, and lot losses. I you process, have share would it thoughts

the are. But situation don't and that the -- don't recount we I a decisions go at -- made don't there around that, in that bank board factors There a not going back have run Andrew. comment of really have was and are on I to SVB and variety I'm led to Ultimately, a what that management that. a they actions took. that I

Fargo. Mike from follow-up a Thank take Wells you. We'll Mayo with

Hi.

And the then advisory loans? consumer capital Thanks. First, out Goldman and on general Goldman specific specific To what GreenSky is general. the impact did there? appetite and a now Silicon the Marcus why then degree more markets Valley question. and sale repositioning, The

Thanks, Yes. Mike.

why it's is, executing on executing strategic you kind consumer it So and instantaneously. like and why point that focus not it. are done actually at It's first, made over a narrowing making -- it's on to now, months our focus, things that really can narrow we've as know, been be And the this not those we and XX now. XX why decision of months ago not last it's decisions

the process of a we've execution very, So gone moving thoughtful very we're in forward and through that.

small Marcus loan and we as strategic. performing just wasn't the us. think But business, focus, Again, good not it I watch think but Goldman as well. good was these today, our like actually, of we GreenSky, for The overall things way platform, it's perform, small, Sachs. they're highlighted also profitable we not scope are it's in narrowed strategic the a we've given portfolio

simply for we'll decisions right on we're our are we the deliver do to over continue time we to and so that that shareholders. things And executing think laid out

outsized -- slows whenever just this markets a as I is and I that comments, It capital and March, has of highlighted period question, with down as which an did volatility, kind unusual a it few-week affect second and discussed the volatility, you effect. was happened I capital what M&A, how it highly kind really have in of my it really, in you activity. markets think On before,

out the debt were horizon people kind that about that around create example, do noticed that are on debt some we markets markets to the to thinking I more you it starting stress. that the the won't of activity behaving that event or things you it they other that little at markets. have negotiation into but say slows the other think get There an seem capital could like bringing there thought I So things end push February. point when reasonably ceiling, were volatility I down could has creates bit capital behaving now volatility, are to a equity well. I can't be of just be to well, markets certainly see

It banking market [technical for certainly a whole. the quarter. a as for So yes, for pretty muted and investment activity difficulty] us quarter was

follow-up of take from We'll America. Ebrahim Bank a Poonawala with

you. Thank

Around that intend the early you in? just cash deposits. the that days funds? savings in on Fed question, is you that one that appreciate what Just those the to could impact of to going be come of get maybe. Apple do Just earning tied I to use Denis, the NII money inflows product, quick deposit, how funds terms trying to sit in but may revenue out level figure

Sure. Thanks. Ebrahim. Thanks,

BAU channels, across So have our we firm, that sources the we multiple multiple tap funding activities. in

And and We deposits, relationship as this deepen view to each that our are one deposit in us deploy take it enables all take and that franchise. those we'll advantage client tap every with of of the the moving actively our day. the deposit incremental have deposits We into into cardholders together diversifying of with also to and we account. want along with Apple, ecosystem of work ease serve portfolio their deposits the we source other channels and multiple clients a and who sort into

like our additional question-and-answer to to will it our conclude for session. I'd That turn closing back over speakers or remarks. any

firm. Yes. And if rest me Thank Relations speaking additional to to the we Thank questions, or feel call the with in you all any appreciate team. soon. you. time certainly the interest Otherwise, calling. you for free forward the look have of Investor and We you

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

You may now disconnect.