The Goldman Sachs Group, Inc. (GS) 15 Jul 242024 Q2 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 Second Quarter 2024 Earnings Conference Call. On behalf of Goldman Sachs, I will begin the call 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. material Sachs copyrighted Inc. is audiocast of Group, Goldman This rebroadcast duplicated, and be or without may not reproduced consent. is XX, XXXX. call This being recorded today, July

will and call Executive I Coleman. the Chairman Mr. turn Chief and Thank over you. Officer, Financial Chief to Solomon; Officer, Denis David now

may your begin you Solomon, conference.

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to our Turning performance.

XX.X% We solid. XX.X% ROE I for both Asset & were for where a produced am performance first ROE results a we the the strong and year. Wealth pleased the quarter Markets second quarter year-on-year growth in Management. delivered half Banking Our Global and with and of our second

approach serve clients our and to harness our to Sachs our environments. execute dynamic continue One on op We Goldman in strategy

ranked announced maintained rank we underwriting. Markets, #X and in Banking equity and and completed M&A in long-standing #X Global our

backlog significantly Banking this Investment quarter. up is Our

well M&A to a activity. their early XX-year we still we very we're a what markets certain remain while average, continued benefit volumes transaction and And are seeing, From are from well resurgence innings recovery. positioned below the of in capital

and broad our active supporting FICC across financing deep clients' and in equities and solid risk global year-over-year both growth revenue saw intermediation franchise We as remained needs.

we wallet in the fees our top We private more to together were continue on Management, and to improved & a this be other top standing banking XXX our for management and Asset our durable maximizing are growing share, and XXX quarter. we have in lending revenues, X of with clients. In $X.X Wealth focused record be billion which

We supervision a and had under first for total rose of assets the margin making progress XX% year assets trillion improving are of client half Our [Audio trillion. Gap]. Wealth and $X.X delivered record to on roughly Management a $X.X the

raised for a quarter, fund alternatives, credit year-to-date. billion real completed estate of we $XX We number private total billion the $XX $XX approximately capital billion across and notable closings investing strategies. strategies of including during

platform. our as additional as management current a Given to the asset are first we fundraising in for $XX half to this client our of the stronger-than-anticipated year, track excited wealth well growth performance, exceed the pipeline, we and on and experience, intense This billion testament is record opportunities focus investment fundraising about expect the our alternative in year.

to environment, top remains turn clients. operating the mind me for Let which of

level proven has there's policy. forward many had to for be elections across than could hand, anticipated. of significant high implications globe one the On the a Inflation geopolitical stickier have instability

remain the growth equity hand, the to other trajectory the soft markets improves relatively landing the and constructive. near continue economic remains forecast highs. On all-time the Markets environment as in U.S. expected

bring corporate our infrastructure proliferation should and of needs, technology it of and where in AI by activity AI we of tools Recently, will across world in spoke which financing in fuel of more encouraged demand-related the application ongoing innovation technology Silicon Valley with spent The the and significant We Board artificial Directors about particularly all left am the AI. -- in a I with week intelligence. accelerating optimism broad broadly. -- our franchise.

Before I a mind. -- cover top turn topics at to it Denis, of want additional I to over

not seem Federal our reduce had strategic our intensity, -- the stress the last recent which our to evolution our First, in reflect Reserve continuous does loss three recognized we've progress the of business tests. made to and

discrepancy, this understand we to and engaging clients Given capital. nimble will determinations its with -- to are continue regulators our our be with better

new And standardized opportunistically increase and the -- regulatory the to approach, first our ratio resources in above above dynamically second the and repurchase XX quarter. manage shareholders. capital illustrates basis our our the our Despite ability to in return points the our minimum

in XXXX, a Since quarterly We X% current of franchise. have the to a our beginning also dividend announced than in our increase confidence $X more our its of level underscores we the durability share. our which of dividend, quarterly tripled

reflect to in I a joined significant the the in I'd firm our since as XXth second We hit year went we is quarter, the on public it's which like also years company. public milestone also XXXX, XX then. been another anniversary the and

and maintaining true of no I has crash, know growing a people. to through core NASDAQ our paramount of most our our back and values. crisis leading I doubt, continuing stay number overcame is culture evolved, to the look think the challenges, XX, that financial immediately serving one persevered I bubble, dot-com September talented clients to of When the our retain to the our culture, how we our pandemic. with these and events, businesses including market have significant but the at attract We always preservation excellence, positions, that

about confident very our of state I'm client the franchise. closing, In

strengths strategy on what core delivering our a environment. and our remains serving are leaning effectively complicated operating in clients into We by

in cover me our let results more to Denis Now turn it to detail. over financial

morning. good and David, you, Thank

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

[ of as strong versus rose year year. to Now million by revenues Page continued Markets ] $X.X prior million versus XX% revenues $XXX Banking $XXX million revenues second XX% turning finance below to up XX% $XXX on revenues starting Advisory equity activity. of X% period. leverage longer-term the to performance underwriting have billion markets Debt Global up -- capital and amid produced X. Equity to segment, averages. were reopen in quarter, last remain well volumes rose year-over-year underwriting the

are committed we demand acquisition in financing, seeing client on We material to for activity. back which a M&A continue expect increase increasing the of

sequentially. better and Our up by quarter-on-quarter, were net rose billion in both FICC in Intermediation driven were results backlog XX% record were performance a financing in the by from higher revenues but record a $X.X revenues and billion, were better the derivatives. helped net and in $XXX down results rose performance up significantly currencies. revenues $X.X debt quarter, were year-on-year underwriting. FICC as Equities on up advisory financing Equities rates XX% near $X.X billion year-over-year. quarter, year, up revenues performance intermediation year-over-year. million, modestly last X% X%

quarter billion together, a billion record for Taken half second the the and revenues $X.X a $X.X record of first the year. for were financing

Our increase to priority durability strategic to and revenue the of grow continues results financing base. these FICC both activities equities our yield as across

were to moving Revenues Wealth X. I'm XX% billion & Asset Management up Page of year-over-year. on $X.X

and revenues by $X.X this other management quarter our banking of billion. other X% average As driven record Management fees assets fees lending billion, a and durable private more to a record increased sequentially reached supervision. largely and higher and new David $X.X mentioned, under

[ million. ] $XXX revenues sequentially rose Private Banking X% lending and to

alternative management assets. in demand a wealth business ultra-high a has great and success products, net trillion our has This provides franchise to of more key premier worth roughly client strong our in durable suite platform. Our power us of for with of unique $X.X of increasing the a been example this revenues contributor source

this in our our as momentum continued business with clients also deepen and lending penetration expect We adviser we grow footprint.

year for medium-term target. approaching our versus was half margin demonstrating first pretax substantial the mid-XXs improvement Our XX%, and last

from to our Total quarter the quarter long-term consecutive our supported long-term of assets ended net inflows. $XX of moving record inflows, X. Now Page OCIO by representing business, of a billion at XXth $X.X fee-based supervision trillion, under largely

Turning we quarter, investment $XX.X was the billion million and other to first to quarter, In billion by $XXX the Alternative management the billion of driving historical principal fundraising quarter, further $XX reduced the on second Gross totaled in for X billion. third-party the second portfolio $XXX $XX Page billion our of fees. alternatives. and year. for the end $X.X at half AUS

was X, the in Page up higher-yielding in firm-wide assets increase interest -- $X.X billion liabilities. and sequentially quarter, On net towards noninterest-bearing income shift a

quarter was billion, portfolio end the flat $XXX at Our quarter. total versus prior loan

release primarily of related quarter, million, roughly the For portfolio a million was second partially charge-offs our provision card credit driven and by $XXX for wholesale our by offset credit portfolio. our to in losses $XXX net

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

impairment. were Our noncompensation of $X.X is year-to-date provisions, ratio compensation of $XXX billion Quarterly million XX.X%. CIE expenses and included approximately net

rate of tax XXXX half effective for Our XX.X%. was first the

a tax expect year, the XX%. we of For to continue full rate approximately

of billion common Slide $XXX and quarter, billion. Next, we dividends stock the stock capital returned including on XX. $X.X repurchases shareholders, $X.X of In million to common

Given our buybacks higher-than-expected plan second we to quarter. versus the levels requirement, of SCB moderate the

dynamically will deploy targeting franchise our our buffer prudent a to client capital We while support new requirement. above

quarterly third our also a a $X per in X% beginning dividend the durability shareholders our confidence growing increase a sustainable, increasing quarter, pay priority in in our dividend our to Board Our and of approved the share reflection to of franchise. our

revenues strategy. growing half equities the across more conclusion, ] strong and financing, to other for half the ability our We Private in lending. drive shareholders progress while management strong our ongoing to which businesses durable generated first of [ FICC fees our of continuing the reflects and strength in clients. integrated our our In We including and returns streams, of Banking for first confident remain record solid and and support returns revenue we XXXX, execution made

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

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

heard big credit infer So inflection comments equity-related on And an acquisition plan platform? ] think Does sponsor-related any in think about of being full that much financing say the I I [ and the has closer platform, lending demand -- DCM anything only as the you I IBC obviously, is pipeline. to M&A, how committed then high. have And your that a for on maybe an bank private the event I point like big M&A? us forward-leaning being you private

to I averages. still amplified, Thanks definitely that levels of momentum for question. are comments we're in -- forward my see significantly was and -- pick the that part want XX-year we're just I pickup, we the We're I still which in at something still script operating highlight definitely because Denis again, think below despite the And our up. leaning

to for of go another on And got think averages kind XX% I example, so, to get to XX-year we've M&A.

averages only One starting why running of not below sponsor accelerate. is M&A but the of reason, just activity because activity, M&A that those to one reasons, one of activity the the is the reasons reasons is

kind XXXX especially I see into to seeing that we're the environment We're of think, over it's our reacceleration going sponsors. that of And a the activity. in below. you're obviously, way, so it given dialogue few been next sponsor with that And in, way quarters

activity XX%, starting is but kind that, been increase. averages, [ get The and to that see XX-year overall ] XX% to running another M&A we're sponsor below of has to

given credit just very, positioned lead leading table leverage direct kind platform. call, Now finance to both We've think activity it as firm's perspective and what very we X the in, that the well but with community, breadth of with of the a I'll incredibly top increases, I a been private our lending X combine powerful sponsor position. from

interesting And very we're very, a position. so --

bodes the the trend activity years. X of distribute will think, of are partners, look, but recapitalized proceeds sold, different there limited be next we've continue scope that the the general and hands, the sponsors size be environments, have refinanced, X, than well I the -- in more companies to last their X.X years to that changed seen X to over to out The the course

gains appreciate the helped one follow-up remarks equity you I during printed Can how that. the Maybe mentioned drove in it the material your quarter. real on estate was talk that drive estate about you and what investment -- the in real remarks in gains quick prepared prepared gains quarter?

Sure, Glenn. Denis. It's

as same markdowns from commercial our of line performance in in period, markdowns And think across we real is period. degree in risk were prior had results an of that quarter prior the of equity the estate this sheet. most the the year-over-year in investment in that the reflect addressing important some the the away as to have we actually I recent sort do early mover balance take not significant year

think, a delta. the is, explain I that of So large

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

financing firm some spend into the anything from standpoint, capital has increase. to time the SCB the just to usual? maybe business? update leaning moderate Do I been us business capital as there terms you post just if business wanted in a whether how on could requirement or the One of need the changes appetite you

should impact around the more does buybacks how second, levels comments like going Denis, of your think one, moderating, XQ forward? business? And buybacks it So we

Ebrahim. Sure,

the of guess, couple reasonably over that I last the with to first, consistent important So been a whole the operating comments. moment several with where at observe capital we're is that we've years.

across that at at deploy end we into of is operating XX So the we and ongoing the capacity seeing or be well of shareholders. lots client which to financing have that's at up have level across attractive have cushion client into as we're franchise, invest feel continue historical to in there wider acquisition of client the of franchise with that to continue as whether our what that was capital significantly, the clients to with financing, referencing heading we do quarter, range, backlog for capacity the of the the third with we could points that new and franchise our deploy opportunities basis to capital to support businesses, return into the the us David as both to

the from thought that still an was based we capital we it appropriate our capital quarter, to Given we still in make to to client developed do our would repurchases assessment, the capital shareholders. manage the we return but have indicate moderating we'll to second buffer, to And will we're we certainly be position but a in continue number see billion flexibility. franchise, what on $X.X advisable

it. Got

terms thinking about we're of financing in how the So change assume business. no

David, And Does Just to any could. troubling inflated just activity, assets? it carrying on? things year to a sponsor-led you love that pick terms sponsors all these up. it would the for valuations in there of waited are not separately, that Is assets to we context they're sign speak monetize if able

funds. hold appreciate troubling. ability I that. their and that and to use where LPs I longer them leads they pressure them point, the at are hold wouldn't monetize to that there's that At over mean, to troubling. just word to I assets wait it's especially there But places think do I sponsors continue build. to wait, that Sure. I dated don't value And to funds, keep longer compound. pressure the from think the as turn value the and take currently have optionality same the optionality they

to and bit we're more a think forward perspective I the forward, so accept see And starting move to parameters of a of move an valuation start to unlock and forward.

and think to just activity to just pickup that I going But you're exactly this quickly. is are a to natural levels. sure. I'm going how go quarter and more we not enough But cycle see you to back which for in smart a tell normalized

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

up I'm had going regarding to a you lean we've very this the I going revenues Can just and signaling this because a the year? okay? pickup puts hold you some hear a want the is just comp the but for question this managing just me, one in lines given activity takes Or nice bit, on little how deal earlier expense were did on is ratio of to this you're call? that wondering, rest in of environment one-off mentioned through this and is

Sure, Betsy.

look is revenues, in our ahead expense. net in So that the tracking of if compensation our incentive at of you year-to-date year-to-date change change provision,

the the talent. performance firm estimate which always basis protocol on reflects to competitive market well for same that doing as following do, of sort for year are expect making manner a that pay our overall of for is full a best We as the in that we the and we what

compensation, evolves. see, what appropriate as the the but we is obviously closely to we'll place the accrue that based So of balance on monitor year think this we

here earlier, there? leverage, Okay. given mentioned coming do we that? operating be a think I And your should anticipate continued agree that, would Would way. something wrong as pickup in said M&A, you Or everything positive you with I that that

generate operating the we we we business that certainly in the our grow revenues continue and with expectation what based if expectations. are perform current love is leverage And we with on to our in line to So incremental perform hopeful would line will backlog. will that

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

Denis, time business. the been that the for momentum it rates shows record seems to behind stable given be flagged, And You quite clearly now, my it balanced growth. which assumption have financing more would revenue, some reflect

few as I one, should So And a can though it understand maybe that's might rate help want horizon? to fair. cuts confirm rate about that, as us sensitivity be we you on the thinking be how seems

Sure. Brennan. you, Thank

more and growth committing within and journey Global the have we to for durable of revenue a terms Markets. of in years the on several quarters streams Banking ourselves So been

our and underwriting have capital place. human in infrastructure We setup

with products. and by it's relationships a a users frequent are suite The sub-asset that these we of to business large business are on have We diversified of that looking basis. very class, is clients grow disciplined

capital to opportunity risk-adjusted attractive that deploy returns. is had a We've generating in manner

something that's we that we're are that that to to franchise even clients as growth breadth believe, should rate given should that secular of continue mindful be moderate. But going we witnessing the of. the various remain to So our able environments --

Okay. sort line of from next of is a questioning. And question then follow-on really Betsy's

that how steadily, we an got be help you a for metric a revenue your should efficiency how efficiency drive about ratio? margins on So to that think back aspirations an understand improving take will targets continue incremental year-to-date, in environment and and growth ratio. be consider -- and about step environment to seems that you've us When Could we thinking revenue? XX% improvement

Sure.

better we points are of on for not for the target XX%, our thank that our nearly progress. XX.X% at but seeing. ratio still efficiency making Obviously, and you basis, a question, that year-to-date thank improvement XX So we're you is observing at year-over-year

should be efficiency. deliver revenues, to better better we continue and we to As able grow our

associated expenses operating revenues of extent and to attract variable continue have structural move look contributing they we type granular the time, we at drive a to a volume-based out very to have granular expenses for at factor. of while over be improvements as categories expense revenues. on visibility, the a to do efficiencies example, or and grow reduce make to our of trying internally that we, some our time, that. we CIE able the ultimately, should that to we basis the And with we But is exposures line same process drive of some looking But which do top of each

next And with Mayo Securities. Wells we'll Mike Fargo to go

trying just quite below are I'm with positive in highlight you revenue Global target. the returns to Wealth still growth mean reconcile & Management. Asset comments I that Markets Banking and and your

for and record You combined. thing have FICC equities

You're in M&A. #X

management have record You assets supervision. fees, under record

Your efficiency has gone XX%. from XX% to

dividend your confidence. You X% increased to your signal by

Your CETX above higher ratio's requirements. Fed XX even the basis points

and you want started off the quite not start -- look ROE call the saying solid. David, are -- and you say, the But you where that's So XX% it the quarter, be. second the in to at returns XX% you then results you

So and to returns you're generating disconnect of where's in like where what terms be? from the you'd

Mike. in through. -- journey which a on sure, $X.XXX, platforms, and of at bit are still gets still look the it, a of we half year for we're at that. of we're think from One, enterprise there the I a little working way for give Appreciate have the we're question. the drag Thanks, things, I Look, the couple first returns our

XX months, we'll point, will some that to continue make at over progress the XX out. And to come so on that work that. we next as And through

the returns be in ex higher half little the would first of a that. So the year

the activity. averages information, XX-year call bunch said of terms operating as of top I And below Investment on still and of repeatedly think Banking in on And a we're we've the continue given have materially But back, look focus if that, you the predict. come we're have on of returns to can't I to at the they'll that. uplifted firm, the to firm, and returns we obviously going meaningfully

AWM. Now the is puzzle continued next progress our step to the in

the the said the needs but be. few years of we've So is the not performance last course over of you to see where and AWM Global you know Banking and can ROE Markets it

that the And think XX%. the we to about ROE margin heard is fact the around grow XX%, continue but our comments still up gotten we've business. can we You the to

have high bring and said, we've improve As to and single and a then the that ultimately the ROE up We margin digits. you firm across you look stronger profile. AWM continue return can

making we work good not we're -- think to sure, I say progress. progress. but do, have So good about didn't for the We feel and

just potentially of is could And multiplier kick your expectation part like describe mergers you when effect I based a multiplier that assume of on really sort in. cycles? past look what Can effect

averages, that to sitting levels. what obviously but be momentum the there's I in if above point return run I went too, back we a of tailwind our going of here that. I'm average, would is be wouldn't average we get back future the one say some tailwind period, well is XX-year to for we're should not average, for a that there to where things saying -- we above in a not will below and further -- to business did have periods time we go just

manage are transactions. a there M&A with as big transactions. there need financing need risks that. or whether raise general financial those capital corporates, sheets. reposition matter, transactions, to to balance to more structure They to to is need They People when finance But to attached sponsors more

a our ecosystem it, don't more gets a on put multiplier active transaction there's but side. as increase. so effect volumes And We multiplier activities as M&A the those increase whole on

factor. -- And denominator then is lastly, the your big a for your returns,

done with And and whole that too can balance sheet know work you Fed? the that point does the how I maybe Fed disagree, haven't say is company. your then derisked we regional you you've and so. can't saying have So that here, the people much, but the

process SCB how Or about something the ahead? results hear Will here? behind closed is this from does we doors? just So work this that's

mandate believe as what general a stress of testing. the matter, matter, to of general and an important supporters banking soundness the we're system. of as Fed's We safety I'd really Mike, a say, the Look, it's component ensure

process that distracting there this time goals may and safety be are elements these some of for from maintained soundness. of that we've However,

highlighted, of to obviously in buffer difficult opaque, capital just test you stress and management volatility process, The as capital line We strict year-over-year. transparency, business. it that fact in with own made our all not lacks that the our prudent it believe scenarios don't the the us reflect excess significant calculations consistent They're the the are makes changes our is peers. results for contributes requirements, which we've in despite

the continue Now that, can in mix got flexibility flexibility, work do, level continue that with result. serve clients. to that also to But to around given we time, the to hold and this all over despite capital have business our to of engage we'll we we've capital capital our obviously, We'll work process this to that more ensure we have down. drive

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

I to a want platform off the start consumer absence with They to the of were question down start So only on question, a GreenSky modestly with despite contribution. wanted fees. just the

out reasonable of whether Just run quarter. is next point off quarterly the rate wanted $XXX we what revenues, a look to resiliency million in better consumer drove the jumping to as understand

you for absence sequential GreenSky a growth the there card Thank down but on mean the that's we they're contribution, portfolio. basis, have across of the the actually because is question. I

slowed of originations. to I think underwriting the we rounds card as of growth level seen -- of implemented sort have that the you've several has adjustments the

the more forward, on is growth expectation And so muted. our should be the that period-over-period

Really SCB. cushion, one understand, question. of you that I you're which XX with is Understood. And bps more running Dennis, maybe the just been to know better about wanted clarifying noted actually asked a since normal. above just there's lot

handicapping comments uncertainty for to you're the III some the endgame. been even There's how from related regulators. Just Basel momentum and press favorable some additional reports public certainly

where the to and around given the running want medium over to uncertainty comfortable basis SCB just III term. CETX the game, So near understand, on both better Basel the you're

appreciate I And that question.

but the It I endgame, we expectations. may and range. changes to which the It there's some some not in think, I remain embedded end think that, respect both resolution. in with lot something III until operating the is I level latest that in a of into effect and know that think to lingering maintaining comes support is future some opportunity don't clients, to the that are know of cushion is prudent buffer a to of But uncertainty, while capital appropriate are return uncertainty the address And to we Goldman set shareholders is highlighting wider certainly quantum future respect designed of we with flexibility into does been of for be that of of maintaining at about a comments of regulatory timing uncertainty and light Sachs, that what in -- that perhaps signal sounds with Basel we input. sort its buffer from to obviously, of XXXX. our

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

A couple of questions on AWM progress.

with medium-term alt-AUM well alts pretty conservative. would growing, targets is fees. one specifically. obviously the first in billion $X over and And of now the So that when annual incentive tracking you're seem business billion on And ahead for $XXX the fundraising relative to obviously you the set

shift there? incentive think given environment there's the seeing returns do you're the how appreciate should lot growth to for generate underlying I to a ahead about and harvesting AUM in mix more that the here. fees So a But normal we just in of work assumptions

our share So we balance unrealized give dollars. through incentive been fees We it that of medium- do the we as then that it's as billion disclosure contribution be as a the forward. of And from at I think at Devin, the of longer-term going your Investor high modeled last line laid internal an to perspective, I in not is we end blocks have quarter good the has since were $X.X question. expectation contributor a to The think more building out Day. on good one that meaningful the coming

the to granular those the several bounce So fees current you that fees those are. given is can around make could our coming the best and of funds, line next buildup. the status time of But various assumptions over what It as time. be can from expectation of of through what timing years. recognition They that's to obviously vehicle-by-vehicle of outlook a level

-- ongoing will should future be generate potential fees success an of in we're with disclosures. fundraising in help the unrealized Asset feed that think that Wealth backlog the I turn having funds, will incremental investments of & some Management and important should alts incentive the in it help that to which the couple forward, beyond and with and So what's already return profile is above on contributor

Yes.

so Okay. a XX% for of comparison Management so this also well plus follow-up, are a Wealth and of connected. businesses public highlighted kind know alts you is we peers, at in conference, kind Asset margin above all the obviously firms, of And But the that. a highlighted profile public stand-alone then of recent & and as

at thus think to AWM trying to I segment margin just even the earning kind one the particularly that alt XX% you're mid alts So yet, mean looking growth, target appreciate segment acceleration kind at the alts of of in fee of is relative for accelerate already because isn't But So as about incremental margins AUM does what from well. and coming that if does we're in XX% you're from segment. XX% running far the 'XX? segment

there the which to mean develop So that's opportunity margin breadth because despite margin for incremental the strategy. longevity AWM us by relative actually a in the should Devin. scale the is with a our I of us it significant be running particularly activities, to been as overall good alts we've businesses, profile question, unlock improve we and particular, the significant alts for

a the of which activities, segment, margin big to And actually should current unlock despite growth margin contribution. within again, just business, alts opportunity incremental for so the overall scale, presents its portfolio improvements, our in in addition

to next Dan Jefferies. Fannon go We'll with

this outlook about? progress investments, quarter. you think any about we sheet in year reducing terms of exits talk for or make this of In the that on-balance line you can terms of to that sight your in Can continue

to Obviously, was of at that you. XXXX. -- the and Thank the balance, expectation Sure. will to down commitment this to the down capital the billion our the at billion then obviously into decent Also, the of an end we exposures. move across of equity year. next majority year next those the change out is a that which quarter, third it ongoing both segment. really a ours $XX.X on-sheet our of now and and target year. commitment There's by vast that We that have returns down and no majority reduction. on $X.X of there quarter vast sell is in story the the At for by of on to fourth of end continue But sell part

of about also strategies smaller you Understood. year. next full to you've as And the on alts maybe the you we private other success the within here credit particularly big. and and/or Can into as the for even had, as follow-up, think fundraising a or the but are year side, just fund target mentioned in half the first raised given scale, talk have second closing potential the have wealth, some was you to a large half, increasing momentum the that earlier, -- really that little bit as asset

Sure.

to billion. $XXX means step $XXX you're targets billion end we a this $XX about set. surpass that that of was $XX talking taking with the us billion, of half be billion through billion. year. It's billion. to $XXX time, and We it obviously, upon north at the by should moved a So expecting $XXX raised first And back, it now we Once

that of asset strategies and And no class strategies, have both the within to things platform see we [ in ] fundraising estate credit the our you and scale and but real a on find equity, by real different across I credit, of can is one estate region. had equity forward attractive we this private asset infrastructure. like from We number contribution that by opportunities classes quarter other about multiple think alternatives,

platform. think So opportunity to the have to diversified we alts a scale set continue we

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

broader the capital markets. you wondering a also are realizing landscape, a who ago, need in that elaborate bit capabilities. on I just few market know could competitive if competitive, banks leaning are always and peers banking some in specifically been all and big really these I of haven't was the years I it's that bank they but regional cover

So you're industry impact of wondering the an of leader seeing just you're obviously banking a across and at markets how the you areas this competition in and kind lot point?

appreciate markets businesses. trading just competitive they've and Banking business, the the always Matt, question. business, Investment I'd been say and the Sure,

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

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Gerard. Sure. Thanks,

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HSBC. Martinez with to We'll Saul go next

manage a Just in CETX about capital RWAs I for is stock. room that and I continued encouraging there follow-up optimization certainly it importantly, XX billion your talks that what guess, from levels? billion back you your presentation give you of did more rose bps guess, bought capital. think, more to this mean And on credit on drove can is quarter. And RWA falling I reduction I a have, $XX bit color $X.X here a just in quarter help little reduction? your a ratio you RWA where

Thanks. I Sure. that appreciate question.

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question, Saul. It's a good

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to are continue part that those of think and something So activities focused of on clients more very we with remain can grow. interconnected activities both we and

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

now may disconnect. You