The Goldman Sachs Group, Inc. (GS) 15 Apr 242024 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 2024 Earnings Conference Call. On behalf of Goldman Sachs, I will begin the call with the following disclaimer. The earnings presentation can be found on the Investor Relations page of the Goldman Sachs website and contains information on forward-looking statements and non-GAAP measures. copyrighted the is Inc. Sachs cast audio material Goldman of Group, This may or reproduced be without and duplicated, rebroadcast not consent. This April call XX, today, XXXX. is being recorded and Solomon; I Executive Denis now turn call to will the Coleman. Officer, Chief and Chairman David Financial Officer, over Chief Thank you.

Mr.

begin may conference. your you Solomon,

We our results, and operator, us. of which strategic earnings This strength our good our world-class reflect to franchises aided swift for and about and by power core good you, and focus last actions everyone. Thank the very Thank all performance was we our strengths. interconnected play the our you year firm. morning, joining feel first quarter the narrow to of took

we see, on are delivering can we our you are we this the generated quarter. and As returns strategy, pleased with

three to excellence, world-class to at to to collects To we out One harness laid remains what and Sachs run scale. operating with serving the January, we in a environment. businesses serve invest As clients durable are strategic objectives: effectively our firm, clients operate in Across and have differentiated Goldman

and of depressed Looking one year capital said investors. broader around historically their of timing financial a the most common investors make last last asked their or sponsors firms, to the levels of of to so, clients before returns is need markets. capital that back forever. for for raise activity I've need the to strategic companies sizes reopening have decisions wouldn't CEOs need questions to the of generate all transact on and the

of the market first in with clear we're seen new in issue Where early few in we of XXXX the the it's markets stand reopening reinvigoration stages capital access. months of today,

Rank across growing. and the IPOs latest that and a risk there example, strong IPO investors' the sign Galderma, for reception including number were For Reddit appetite across transactions, is is large geographies, of the

the record volumes market's contributed and capital first The to tighter with a issuance grade constructive the of debt hitting year. X investment for environment have months spreads a

was high-yield Additionally, theme volumes. with loan refinancing refinancing robust major a and institutional

backdrop acquisition as issuance debt accommodative solid higher more continue. increased levels as a M&A potential for to the activity alongside well underwriting Given activity, we of expect financing

have With the forefront rise capital to It's supporting the our global that benefit FICC rose top-tier firm volumes And our All clients' a intermediation important stands be revenues record were businesses the durable financing the raise in across markets, lows. helping in our this together markets, reopening, floor we long-standing seeing and positions in Equities, our helping further access quarter which results more at in franchise as clients active note banking and global and in, XX-year been are needs. we capital from continue across markets. our leadership to alongside the to the markets, transaction growing and intermediation are our financing and we're sequentially. XX%

Wealth trillion supervision inflows. under consecutive & of a assets which of net rose to Asset Management, In XXth our this record quarter, quarter fee-based represented long-term new $X.X

and we across We business, private public resources alternatives to across delivering this classes and continue are performance and a and have particularly solid across asset invest Management, platform solutions. growing in markets diversified Wealth

all billion Wealth in solutions, total at And alternatives, continue environment. see In win. our despite with ending proven demonstrated $X.X still track which for outsourced areas saw and These significant fundraising we have quarter -- to in CIO we significant saw difficult are record trillion. raised assets right in and this a more we client we opportunities, SMA we offerings. and Management, In a $XX we strength continued demand commitments

I artificial up every intelligence. virtually to have, conversation also touch want coming I on topic client

how jobs of time there where potential potential line clients on will about transforming regulation, use the at topics the out, we proud forefront how and on be certain ecosystem. Today, impact, think perspectives and play the these operations. about is of in consensus to advising their broad accrue enormous on to the aspects value in shape are potential may cases for is there impact of including While AI, for appetite commercial

in the As significant to infrastructure we will extent AI-related look that and a longer tailwind this term, expectations, technology a to with line will which financing, as our result, develops for demand there be business. be

we and dedicated engineers team applying artificial operations, learning own intelligence of our For applications. machine exploring have and leading to a

developers on our maintaining be eye and We are security high focused approach a will while for and crucial. a Like particularly enhancing thoughtful efficiency controls. productivity, with quality, risk on bar and emerging management operating technology, keen for increasing any

the to macro environment. Turning

but health to and lowered concerns the also market record continue around real evolve continue has that the time commercial Fed see three economy. inflation, for tensions at the cuts we The recently of near see be geopolitical We U.S. equity estate last when be combination levels market XXXX, a rate hovering week's highly markets to in will print This to I'm constructive U.S. expectations. continue are escalating around mindful the world. CPI when This and most data-dependent. -- including telegraphed -- headwinds, growth. on we

force the has proven trend levels to including growth immigration. driven U.S. economy be factors, of said, resilient spending well government a as number that of by as supported With by labor above

a still the uncertain. landing, while constructive and the is expect markets soft trajectory environment is So

our impressed Goldman I state how Sachs clients for Goldman the conviction people talent, of and excellence. for long-term people ability the the our of their Sachs caliber capabilities they about set of as opportunity our of to our shareholders. culture my and deliver and work with the confident day, tirelessly interact consistently quality our world, very I and the client to and our and people serve by clients. reinforces collaboration franchise, Every am I'm around Nonetheless, The of

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

morning. Thank Good you, David.

XX.X%. and in $X.X start We billion, immaterial earnings In $XX.XX RoTE items financial impact of XX.X% of details the on was selected an of aggregate the Page the bottom earnings of resulting revenues table, presentation. per ROE provide of the this of of billion first Let's our and and which generated X quarter. quarter, net results in share on net with the $XX.X of we

Let's segment, by X. the fully XX% in on starting quarter a basis. billion Banking revenues generated produced ROE turn first $X.X on of Page allocated an Markets to and Global & performance

Turning increase industry million the rose X. and revenues Equity Advisory of volumes. were M&A. of both to year transactions. of a announced ago revenues tables Page $X $XXX debt remain completed billion in million, higher for revenues in significantly amid an underwriting completed amid underwriting $XXX and year-over-year up #X both versus We league

and market. fell robust. engagement Both as Our successfully dialogues we quarter-on-quarter remain transactions backlog brought to client

billion Intermediation a from scaled last in a performance were performance as were $X.X by better net the serve and in operating environment. year franchise FICC to up quarter, mortgages, credit dynamic driven results amid revenues continued clients strong global our currencies.

markets of long on revenues Our -- different our classes. asset to geographies a time. sequentially remain confident $XXX make ability better repo. growth acumen balances of financing number drive We grow results continue history effectively over business and We million, in of to this across enabled primarily in in us risk-taking produced and rose which to

modestly partially derivatives. prime by offset year-over-year $X.X rose spreads. Equities Equities XX% revenues billion billion were during higher average net intermediation lower the in on as financing $X.X $X of billion were performance better financing year-over-year quarter. record were revenues revenues only balances of the in Equities quarter

Management billion & XX% fees up of Wealth Asset Moving management and year-over-year. higher were X% to Page Record were on X. $X.X $X.X Revenues year-over-year other billion. to

sequentially the we in year, approximately which period. year-ago reminder, on year-over-year. $XX incentive bottoms-up fees for quarter medium fees of of a in to fees contributed As our November by billion closed the as million Financial were the our of incentive in million, Personal in Management target estimated up supported sale of $X.X $XX last an reach over of the year-end. unrecognized annual we and Based $X expect analysis, billion fees term, Incentive

revenues by up in $XXX largely by revenues negatively In loan on were improved period of prior portfolio. totaled position. investments, and markdown partial banking revenues large investments the public performance were our million, portfolio debt offset the equity Private we in impacted Private investments $XXX Marcus was a million. that year saw and our a as year-over-year sale Equity substantially

Now of fee-based had record trillion. ended income, quarter moving largely fixed consecutive in assets X. $X.X the quarter to billion XXth inflows. inflows, We supervision long-term of net Total under our Page $XX long-term representing at a

end X Turning to assets the and management on first the Page in having in million alternatives. $XX fundraising of quarter. quarter, Alternative $XXX Gross at was the $XXX third-party totaled under billion fees. billion supervision other

billion $XXX in We and billion the long-standing our $XX alternatives across raise between and from More strategies X expect in and billion private billion capitalize $XXX leveraging growth assets our on grow broadly, we this equity this expect roughly next to private credit secular are leadership year. other years. continue to position to opportunity to to $XX over

first $XX historical $XX.X investment quarter, billion. sheet reduced billion. we to totaled investments billion alternative the On-balance by approximately our principal $X.X In portfolio

We this our of expect our majority of the target. for sell HPI vast the rest of portfolio consistent reductions down roughly XXXX by XXXX, and at with expect the pace end to

target, this on $XXX improved loss we quarter. drive $XXX were our to of business pretax segment Solutions X. In Platform with year. Page expect with a Revenues Overall, Next, next pretax has million. breakeven line to profitability million net the for

in an up firm-wide income interest-earning assets. billion increase X, on interest quarter, net in Page first sequentially $X.X On was the

was as the roughly Our by offset partially was total quarter, the of $XXX remaining loan lending billion, portfolio at an the in with quarter GreenSky increase collateralized end in portfolio. other line sale fourth

versus few million, for net modestly portfolio, in lower Within last card charge-offs our our quarters. the impairments provision which credit was Our losses in levels the wholesale credit portfolio. reflected $XXX trended lending

XX. Page to Turning

to CRE our We additional continue provide information detailing exposure.

know, $XX loans, and and related early alternative exposure risk have at and risk billion billion managing actively equity in As securities CIEs. equity we AWM debt CRE $X you in moved to $X billion our in currently

Page operating ratio Turning resulting XX. efficiency Total of an were billion, XX.X%. to quarterly in expenses $X.X expenses on

even Noncompensation XX%, the of operating performance costs net the year-on-year, inclusive expenses These fourth FDIC special $X.X quarter. ratio charge versus were compensation were million Our billion. for the down declined provisions assessment sharply firm. reflecting $XX was and of improved

expect full rate the tax rate tax XX%. effective for year, XX.X%. And a approximately Our of for quarter was the we

XX. Now on Slide to

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

requirements. a with point XXX our running currently are capital buffer basis above We

Given expectations we modifications capital materially III for proposed to should more the flexibility have deployment. on significant rule, Basel

committed paying a also our sustainable to growing and shareholders remain dividend. We

quarter we we & would leading Management & growing do. first our we delivering of Wealth our conclusion, Asset In and on reflect the things our business. Markets the said are franchise results strength Global put, Simply Banking

through the areas We focus which that objectives, produce and will execution are laid we businesses returns for cycle. focused the strategic January, our on in XXXX out mid-teens help our

are in the clients We support deliver continuing our shareholders Goldman for to ability and to confident and set optimistic our remain for Sachs. opportunity about future

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

[Operator Glenn Instructions] Evercore. We'll Schorr to first with go

the across definitely your meaning [ the lower -- whole that is were But Comp on executing had banking the is I everything. provision's laid sustainability of the Tough normally, revenue you package, strong financing. out, just a you really your and increase real ]. I is with on is, even what down, of RWA noticed lot you one didn't though objectives but course, up down it noncomp growing Chris, you was are the of question have sustainability and pipeline. the of

stick? here So of to softball a and what, saying, I'm just continue giving package, that you can

a significant it, been stick know of Glenn. look we and course over business still of appreciate is the so that of you markets as building when that. a to things durable finance you building focused And a progress business, sustainable. attractive package, of got our we've deploy long that lots durable we grow. We the our things handful the is focused there that capital base, business with them. there are growing. more our made more whole grow, we've world on I one the And We've across last years. Certainly, X when there's think the to the that I because think bunch things need in continue of and more are the clients something can room world's to us And look, they drive stay and that's client as on grows returns and to financing

that. continue Asset over to Management focused fees Those on management and our the on fundraising, our think operating Wealth around we revenues. doubled we achieve. there's last very our more & durable leverage years, We've business And X to we be ability that that have business to are yet deliver still on

capital higher and that in business, margin has than business density to continue still obviously, investments to business on and You've historical but focus principal improvement, making progress seen that our have, we'd the a there. that like we

franchise wallet been meaningfully the last very, the institutional very I the and share, the sure think of And wallet and our over market those participation shares that and think relative shares client we've have our is I there big focused exists we've just are. improved said set lots Overall, with what and course we're clients. taken on you of years, on the opportunity the questions for few it, tell can't sticky? on What wallet every I are quarter-to-quarter. is opportunity

executing position, very are that look these at at that durable to enhancing businesses positioned, well businesses, package, the where look you accretive when the of leadership global and But we and focus nature position. breadth, on these the the returns continue and we're produce whole you

Can noncomp depreciation that. a had in amortization big and marketing some you and we -- some and appreciate all just I piece talk follow-up and stuff. the on drops definitely

So going rate are nice surprise? levels also because was actually forward run those now a positive that

It's Denis.

As the our we're quarters, The course a over that number with necessarily we very in impact well the items on year focused noncomp. inflationary sharp to decrease pleased noncomp as of last containing said the over decrease. expect were of are noncomp the there didn't items growth last number clearly year-over-year pressures we been that the There as and very, of sequentially, expense. repeat. of of But number

something with we're quarters. normalized it's very, preceding noncomp the respect more quarter to fashion. to managing to in I base. going But focused it's very than so is operating on quarter on much expense remain good But a And a think disciplined our this some to get trajectory of more normal a

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I to guess up, I just wanted follow David.

and hard seats love You in there AI, hype, -- our what's still would -- figure is out what's mentioned I real. to it's

double-click the around versus maybe deploying the is of but not the efficient much just rates can on comparing boom on of going other side Goldman then get itself there you year capital can AI? this for around some also If for you dot-com what's sight made markets, run how IB, beyond. it create might And AI line of today with more the around by

Sure.

mean, I and So picture, ]. not I'm a stock [ big look, picker

XXXX. the that. not Internet going not explosion going comparison comment a comment when I'm in So XXXX, to XXXX, to you make around to I'm

lot capitalization big these around platforms have we think by that's technologies. think have of I being market I an -- driven we've competitive a that stock got enormous advantage of the sailing

macro other investment infrastructure, as require And broadly that certain markets or pace. in of at scale competitive shift banking speaking, a that expansion we've over and business in is the including of an our and context drive their they to these to to creating seen the of see businesses time. ecosystem But to period of these activity long going significant require areas people necessary for important things execute financing keep investments things be on technologies the that power, that's

constructive of talking businesses, clients us of is our level set think opportunity their reposition about and as people candidly a with that So very we're for a I actually very, unprecedented. runway it's scale

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enormous Sachs, we Double narrowly just also getting see Goldman and for more productivity clicking opportunities opportunities for and gains efficiency. say would on I focused

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think can for color. share right, of how quickly an Goldman stock, good I investor separately a management. the standpoint, That's the we And lot just focus grow asset of from on

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growth, in continue But think to I handful a to of ability terms put of fund out we've metrics line top our both raise.

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next with Christian go Autonomous Research. to We'll Bolu

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focus business continue opportunity And this environment's Christian the I than talk That's may is think us the the clients, the then about that, is shareholders. there is we tough, for quarter. it. and at people a it activity way one with delivering And cycle. good think there that more our is to looked opportunity to when capturing in the have is more this try sustainable opportunity the And the thing to that durable market. through so and for past. when in about We're we at mid-teens think things right was on, I of there set client that

the as run & target strong would Global would of what Banking as average view not a in Markets business. and But rate the very I this quarter we

X you That's If private $XX Slide had inflows Okay. Maybe correctly, helpful. Management to on I'm wealth. something like AUS. Wealth billion of very reading into

above So it, equate would peers. something call well to organic that X% like which best-in-class. would growth, is I

of that more again, longer sustainability as that growth. organic products regions growth? Maybe And are So level you color any can with by clients. or of thinking what's term, you on driving to give resonating what's how color about

know Yes. conscious talk we about we made thing some Again, -- down And comes to very this you focus. decisions.

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lot of wealth lot the in There's of There's wealth accumulating. a a world.

think We continue to are very, trend. performing very, is very well. very business secular that well I the And capture positioned to

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sharp we're to the focus the business, we're think moment. going at how I it benefiting I from this around decision think

to next go Morgan Stanley. with Betsy We'll Graseck

hear right. Can make Great. to okay. just I sure. -- you All want me

there I You've but doesn't the for that the quarter? you're revenues that this XQ a basically right? should and about run rate efficiency take at. was strong, down, trading which two so commentary mean, that run fixed heard very VAR anything strong Equities is a all strong. just understand, was on on depending up, was the little to class revenues we reason the asset flat example, VAR in on time, fact away a that So One, rate Q-on-Q. is about how wanted average understand better little very ask XQ little I And delivered from the income, over was looking different were follow-ups. I than just bit it I

do anything you was VAR that activity in unique opportunity tag and really set a when you in into anything the set, client stepped this there that about to at didn't -- enabled there opportunity was all? mentioned way So that you

Sure.

good any So Look, share I that discrete in to and was wallet of provides intermediate activity see the equity behalf we've across that from color you Betsy, to generation, clients Banking made point Markets asset I operating geographies, wouldn't it's well. Nice Denis. would client going valuations the focus the Credit some across you. to But to particular were share would of revenue business course franchise to also classes. I the give and & on broad-based. it was over spreads consequence our say risk of addition to that our time, across the quarter, hear the opportunities over environment. tightening, item. on did observe on across market And that, portions up, the just a we as a very Global benign of tailwind performance were

quarter strong often first as obviously The seasonally is well.

the our So And each client both captured FICC said, we David opportunity environment necessarily as and case think the we a and was that every presented engagement. particularly Equities. the may by be in and really that of lot not quarter,

So a in when across clearly both Markets Banking QX. FICC performance more like Global overall, & upside talk we and segment Equities a banking, strong across about but

really helpful That's Super. there.

should understand? give follow-up. Could you've a mentioned more wealth alts way you to got. that color we that you're a about you're there just deliver you to what unique other Just little to as able David, one the in us thinking platform

Sure.

we the platform. franchise attractive open our an of that run finds things wealth management very one think I is

we very; obviously asset we with comes of where products deliver have around different out X and we're a as in the solutions in very, open we addition, world very when on to product, from X offering an alternative spectrum. access platform the providers very an world one it business. of very world-class the alts, across our basis them unique the to alt integrated manufacturing own management top or our what But broad; very, want managers so And deep very, all

at And find people so attractive and manage super very, offering differentiated. a very affluent who very, that's wealth think super that Sachs very unique Goldman I

go UBS. with We'll next Brennan Hawken to

So ask wanted on to M&A your one franchise.

but an has been And will really recovery among get and what see update the among about from ramp sponsor that maybe So franchise announced seeing we strategics. when expect to you I'm sponsors, in given the dominated of a by impressive, strong M&A side. your really curious cohort in might announcements kind you're

question, say with part. -- is Yes, would and Brennan, that it's that on This -- up. that's but sponsors still definitely engagement I picking the sharp observation in a muted, The quarter improved. incredibly appreciate muted. sponsors money, said been themselves of for was their the has activity before, meaningfully things And for as and and buying I've things by both selling investors and level make your

capital at And when the you look capital the community increase of the is more sponsor to on community, lot the of financial velocity LP pressure LP community putting return. and a return

in the quarter was And activity so engagement for business. I think higher it's going the first upside is There's say I'd and interaction it But would of operating still a than in at our and do the pace is lot I throughout level. up to say pick XXXX. the coming lower quarters.

sponsor very activity. is correlated business Our to pickup in a

just our big operating business capital across so got broadly. amount And at look banking for book, would markets our did degree to very, very a a the obviously XX low very of of that not over finance still was that be over levels. business. we've the sustained when. It's is a of and but accelerate last level We're I certainly, level course pick sustainable. question we've the up. which seeing yet, deploy, XX had had we've good at it's I pick to flexibility. accretive and it to That fortunate -- When leverage very the attractive We tailwind up, historically months coming. think that feel is to the it's deals And will accelerate not It

potential And so is in future for our tailwind a quarters. that business

Thanks that it. another for I appreciate question alt. And color, David. then Great. on

can So some fundraising I in looks noise be revenue. there good. know really the

revenue the of and down So up sort year-over-year alts curious the only about AUS just marginally.

So color in lines could noise? any those some you give maybe and around potential was what happening

Sure. Denis. it's Brennan,

and deploy of the levels. So is things. Obviously, overall a fund in we AUS movement function of we a how how couple raise,

last billion whole of that We lag success is not are have moves our funds Investor the but are all since of when now there at that $XX AUS Day, terms just the had a some into fundraising in AUS. with billion, in the raised is capital a Not use of original of actually to and immediately. $XXX-plus lot quarter but put

Sachs So then -- on you terms fees alts, platform proprietary in platform of terms funds, open the the was our something other capital look some is for wealth walking we in can periods. And through of I as alts of Goldman out generate in for sequentials managers think some having our platform, future of also David on that in raising platform. our third-party architecture,

over fees in As the fourth did associated had in by first quarter look we sequential raises we way we quarter with last less the placement those year. capital period, the than of

Fargo. We'll Wells to go Mike next Mayo with

David, desire you more to reiterated but Platform have narrow $XXX quarter for cleanup lost Solutions this some GM strategic charges the the you from for million. still Goldman focus, a past the still have GreenSky, card.

year in you so trying stands. transaction had you U.S. payments around just global Japan March now but on decent says that's the of X% guys you're said X on this ago, growth, transaction I'm you're context the Bloomberg, banking and then figure that X March Europe. you're mean, where So to this X, I closing out building year-over-year it focusing world. banking, and years And

simply ambitions. one the you your back pulling are hand, So on

making you're just growth. have activities hand, financial generating other discipline of sure the profits these you adjacent are instead On more maybe

think Look, summarized well. Mike, it you I

looking a the to we things yes it's said. We're bunch are. think that of hard, I you

scale got banking. say I very very can to focused and me transaction think that technology we important it's we're continue profitability. very no grow we committed platform over good We on we've that good making that a for to sure And very, that it's think top not execute But growth, and we're that very question appropriately. time. there's it just line delivers to

the of fits something can we bring franchise and adds that that It's our clients. in our things to client to portfolio

terms might the of think I immediately. ambitions in to our been have of execute ability some too broad

in but we I made And narrowed that think on. medium- deliver so we're growing. remain leadership, we've bolster on focused, I longer-term moving think focus. We a small, hire the And got to forward this that, the but right project we've that committed, expertise and the and It's a will is we strategy.

million. up. clearly to we believe platforms to cleanup, clean we loss from The XXXX, the we breakeven to bring against narrow that. and executing respect or $XXX We've with can is after-tax than less we're that the continue in and that the platform said And profitability

the up to Just banking. transaction on follow

You ambitions it's than growth some profitable said have to just growth. broad. too better were Again,

than where of anticipated? But the happened? mean expenses or build-out you more what difficult point had what was costs? So acknowledged. Or I you underestimating were kind

together. think I number Mike, of -- that John Well, were things, that there came a

think new and authority when building you're metrics are hold I building businesses, we as you the could were where think people and more I really you candidly, create give that There in thought do than cost we that And was things more the accountable and to context. those businesses there friction delivering. globally looked at of when we executing you you people advance.

but of terms we've so footprint it, that That for in later chosen opportunity think do And of now narrow the that's be some we might mean right there to doesn't not action. the global to that. of

lens massively I'd headwinds the at raised changed say these different and of we the look regulatory of which the a secondarily, created and kinds expansion environment has and activities. bar with also

that's that mix. so went else the And something into

to always this going we're and the be adjustments think to for look delivering deliver we're willing shareholders. to data, of do right, adjust. returns And goal to so try and isn't growing showing one things accretive driving of everything willing that at with to be look, shareholders, that for think firm profitable make I okay, so businesses and that we is the unemotional with with information facts, we're adjust with to a I exactly say, And to

perfect, When look we at it's the get some some not things we right. things get data when we and of adjust. information wrong. we'll the But When exactly

Steven go Chubak next We'll to Wolfe with Research.

but up, on the are follow credit remains also robust, markets with sponsor-related the to activity. reopening. wanted So discussion David, syndicated earlier fundraising just Private

markets, in Just credit broadly. ] wanted just ambitions how to price coverage, speak the and versus And your space you're seeing more private what growth of terms [ to syndicated some IBNL your the private maybe in it's impacting of understand franchises? just better recent competition given

ran ask going an to us shape to market to time. first, in Denis period is some going businesses I'll I'm just of I syndicated about extended know, narrative of way, I'm the Denis say, this But for the think, Sure. because, private market, too for a make oversimplification. but I'd these comments, -- form, comment that or versus the is an couple you as

activity well We're increased, increase the of come community, in market meaningfully. that. amount out syndicated will that will As of for sponsor positioned particularly the obviously the transaction very volumes

that in it's We capital important the that. of cyclical going part largest are away. is operating that's to players But continue at And lows to very, and at not be formation, one very a moment. going of the area

in will private continue. growth The credit

we're very positioned think well for that. I

have to of us have that. we private invest see said billion on we We're to credit grow, of places and I've where $XXX We one players. which we very and that. assets, a makes the largest number about do aspirations continue of publicly, focused can

to it's through not in I cycle time. that credit highlight a do important we've long very think been a

and while there capabilities private a will businesses a to to the have strategically, our grow think very, little capabilities. to credit lots both so in platforms our credit for the clients, and ability we that cycle, go moment. private credit players at is respond expand, do through interesting will the go credit those we market our And of we continue very how bit also a those are I cycle, in But we're and a when position because syndicated unclear marry and

that fact, I just we in done see was point in And an can can last I wasn't too. It the that. credit. transaction to in it you few mean, was did months equity a where that. just And

can at to for our lender, syndicated and our do that also example the provider to look investors add franchise want both I think capital but you a can transaction, our to and Denis, comments? anything look of the a the and capital as across an lead Endeavor participate way structure You is at you ability as our platform differentiated. those is

Sure.

well the it's syndicated a credit didn't of I I mean alternative reality the think of over think exist. sort lot I year the been private is really alternative. versus syndicated of there's past covered. But discussion

activity was And around functioning The and the attractive discussion a just credit. first of market. syndicated healthy with refinancing. loan quarter levels, structures pricing refinancing available really you A in refinancing broad-based vast credit a syndicated was so actually it viable private capital the lot was now market. majority activity private see more that With of the

that of these incremental just estimated directly capital forms in all observable different positive I Goldman a you'll a be capital perspective, to change that across borrowers. together I activity. Sachs' to as normalized credit from time, structure. but unlock just of is is think in and the sponsor now fuel reality control the mix as the see we more make ability So because data solutions, we're some sponsor-related lent where to environment, existing cases, are cost leverage available well should transactions that put and think more average lending of much points weighted there'll the same market price over start their healthier should And much underwritten And some in see

markets good what the So sort the of forward for side-by-side and Goldman in terms on is functioning means activity I two it Sachs. of think

follow-up, Really my management. capital helpful just color. And on for

CETX Your to continues build.

of be in managing that At I the pace constrained SLR, just around that's we certainly expectations terms it leverage what in informs the favorable. to proposal, which whether of the binding at X.X%. of never which at of could know expectation you minimums. there? and the regulatory to I The now travel moment should the looks and more like to intended well You're excess your terms in be declined time, constraint, buyback to direction actually of you you're might III same by on Basel be was the least hoping appears the how to constraint, binding the but speak act more

Steven. Thanks, Sure.

yes. So

all that. time. You're a Obviously, liquidity you to counts. but capital is appreciate ratios time. to have that variety bunch know, over we can moving slower manage we have move question. pull forth ratio, that I we a the right back SLR as bindingness And both manage we our and our activities various levers on ratios and a of can over between with But The to respect of

Citizens We'll Ryan to go next with JMP. Devin

Great.

this just consistent been ongoing First has question really sharing a picture obviously know pretty of the for not the bigger been the on past just work maybe wallet really quarter, on but story. years, this I has the market. and kind firm few

in down to pleased drill the So FICC. move Equities that the most just close maybe that then you're if the we kind with still are where see I'd you gaps of any several And over last on maybe of you some products the that years? still occurred love execution accelerating And there. individual biggest room and are financing, aside where to has

and level, of top activity the all on businesses. high a now that in XXX XXX. we time, we of the XXX the these got started a The think franchise. period portion of top this over significant we observed, the things clients clients was At We're a this one and with focused right very top in I provide

with managing them your big them on a has impact with And the share wallet so and your share shares.

the thing for a we seamless that is I really ago. all across ability they versus we've is silos, well the is in them big activities been all all decade operate have case see done experience firm change across we to where the and and and products us all very think that create might the that for a a

And it's very focused we're so on. something

the them of the make to and sure real really we've moves full in way, ebbs is and in what couple activity activity have when over course There's serve time more There time more package times there's when are It mortgages. in progress years. credit. in there's we last do into that of but the effective most to to more commodities. when the trying we're There's flows, activity made there's in

top think progress the fact them. comes exactly. the XXX from at don't to I that that XXX top opportunity in It's think to continue we of slightly with the of number over probably, to okay, them, X make XXX, stand for under I us

X top closer shouldn't those be there's make we with overwhelming XX% reason progress because why majority, the XXX. no So Sachs of to obviously, Goldman have much to

third, where second. to And also look clients when first are X, we at also there absolutely you should top be we're were

helping more allows that clients, to execute We deliver for and that can to right I the to our to get continue do discipline And them, feedback talk for us rigor think them. we drill we on listen create job to do. to them. us focus to and and continue but that work So continue granted. try how better there's position down, of go our we our for culture is execute We clients, a don't take to serving

Yes.

line. for seen some the equity not Okay. feels and It either. like follow-up takes. great been drag puts since a there, here on just time Denis maybe investments more big without Great. a quarter quarter a Not it's a Maybe quick we've normal

exit been we so a given it's environment. reconstitution are how Private a portfolio what more look book, into like normal And of And just quarter the moving frame revenue you would if as how from tough is there should positioned then a the that Obviously, better perspective? well.

million. equity So investment obviously, basis, that a $XXX sold of have financial in line may looking repeat. at when sequential QX question, was personal a progress been the embedded in of about just some That that in a reflected did we on couple equity in a not your but management, as and reminder things, investments, it the gain

trending So insight sequentially. that's that into how give you some will

we in seeing a into sort the particular ultimate results. portfolio did sort netted see expect. Private in public markdown what suggesting with might performance you're basis, that line year-over-year of we On the in investment portfolio we equity of the are But a

have portion know, investments. a historical principal selling We been you also, of our on focused as down

of contribute portfolio, combined obviously market with combination of performance. are to conditions ultimate will a our size what the in the So ultimate notional -- the the

$X a year. out about put equity we've that a across both on guidance other you're there, looking that generally, investments, number guidance debt of billion medium-term is The and at

those give the that of put in you about $XXX color I'd So some quarter, million, you. pieces are

next go Bank. We'll Deutsche with to Matt O'Connor

from that follow-up question historical principal the expect? to that runoff revenues The runoff the last The of the comment. referenced, $XX just here. alluding billion $X you that Actually, the a year? investment just and you on that per billion the is was Or

Sure. Thanks.

our respect with from relates separately, Let the And and/or it I the earnings revenue. this me it way one, progress to that last of that to as the making think up questions clarify. of then was a I portfolio, guess rundown picking in a We to our decent it comment target. this And made quarter course the of substantially we reiterated first roughly think down year. we to for in assumption with the pace just that's line then billion. $X.X all the of of over commitment selling

Okay.

rest So $X.X here is billion the what quarter for the per from year? of implying you're

principal quarter investment line historical portfolio, we the per billion the for year. On with expect yes, would of something $X.X balance roughly the in

next Saul Martinez to go HSBC. We'll with

financing Wanted to and markets. there's gain ask business your about obviously, And proposal. about uncertainty and Basel the

to very deal? your altering you to the your a threat? you it it it curious big design? business? even the materially where for Is seems of versus the or is it entities. unlisted areas like the seem for pricing that it necessarily on But is financing, in Can impact As be jurisdictions a lightened -- to Just through And be Is ability a grow color not it Is proposal direction of financing Does offset that revenues? isn't provide little of focus. materially risk the one punitive weighting product securities part you that. the travel if it could reproposed. other mentioned,

Sure.

breadth how and determinative. in the and financing across Basel expect III rule and both they're have But say remain FICC clients cetera, demand component. ends for where place actually are So broader which much our will obviously, and calculated, equity that components drafted they're our particular I'd and high. Equities put both than the of et of how up be the that we from FICC underlying will And financing across activities highly

shares market and capabilities leading We have there.

So we'll deliver to that to in regard. be expect able

serve for end And up, or or need adjustments either to mix make clients. our to we depending businesses where whatever on regulation look pricing ways the our of various of we'll other pieces

it travel mean, about here? maybe more $X.X on flexibility the did earnings? is that there how feel thinking to on scope on soft. Okay. billion. even from helpful. up your we should ratio of and being potentially you deployment of you -- of activity capital following implications closer I given increase That's then Basel like And be to do direction the just and You mentioned XXX% Basel. And buyback there Is bring payout Denis,

starts up said that that about appreciate David we of our I client the to capital we question. call, Sure. pick our deployment our also that but franchise. remain degree We on in earlier script flexibility on hierarchy, were with deliberate the expected, committed which is which the something remarks very capital

the have active. deploy where we've been to historically And less some been of activities capital able

flexibility amount our become And time so point of clients more as this we have a cushion and good active. in at

is capital know, our sustainable First a after we and place activities. and as to think you to clients of on of capital. would, support would to we're going growing continue And that, that deploy that after to we be about dividend. course, their look that, our return only focused And

for time, At Quarter concludes further First Thank Goldman this Sachs the you. Thank and gentlemen, you your are no Ladies participation. this XXXX there Call. Conference questions. Earnings

You disconnect. may now