The Goldman Sachs Group, Inc. (GS) 15 Oct 242024 Q3 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 Third 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 October call XX, today XXXX. is being recorded

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

Solomon, begin your you may conference.

RoTE of Thank and Good earnings and of joining $XX.X XX.X% and all generated us. pleased an produced in of In you, operator. by you our our we revenues Thank points. narrowing the share which net $X.XX of per ROE morning, everyone. with quarter for including third basis impacted XX footprint of items, Overall, were quarter, an reduced XX.X%. billion I'm by performance, our our consumer where especially our selected ROE the results

the M&A of where from Across risk a backdrop. and demand In intermediary. our and interconnected demonstrates remain actively pent-up effectively clients we performance clients. we Markets, adviser corporates investment premier and engaged, see banking, world-class strength remain a significant franchises serving our the and Global complex and were sponsors we global Our leading Banking

Our the investment our resurgence benefit banking to by again from quarter activity. and leading we franchise in this backlog advisory rose expect continued driven

classes. Overall, revenues financing very strong across end performance intermediation picked clients' up asset record global evolving equities, products a support well our reported of in and our delivered financing. positioned we broad remain facilitated as exceptionally needs towards the across we activity FICC, intermediation our clients risk the and deep particularly In to needs, levels quarter. and and platforms And both

alternative worth and manager, as us growth a opportunities franchise a in a our premier the In top global leading position net Management, active Wealth affords areas. secular significant ultra-high Asset asset player X &

demonstrated trillion together year. revenues, these private a and other revenues strong. up we assets record XXth We to And remain representing were more infrastructure. at growth confident $X.X our quarter our billion asset supervision and net another expect versus $X and over surpassing lending and this which single-digit billion reached year-to-date classes, exceed equity, billion banking XXXX management last fees record consecutive alternatives, under across and of ability over private inflows. further to grow $XX coming quarter quarter, and long-term and in fundraising see ongoing We this pace Our secondaries more durable a years. $XX fundraising now remains We the durable private raised high including demand credit, X% as

trillion, our we and worth offerings Wealth offerings as Management, $X.X and client footprint and net to to clients. to ultra lending our continue franchise our to is high well we grew leading assets positioned our globally our total expand adviser grow

is meaningfully further been target. Our in the and from on pretax returns and our drive across margin margins up in focused and last wealth growth with also We've mid-XXs management, line business this solutions. while in AWM to year alternatives improving investing

which outcomes. our consumer behavior, has has is renewed the spur U.S. in policy range in with rates As highly this the down. instability. increased in cut around of backdrop, our high franchises a More of at soft I recent constructive. Inflation geopolitical is risks navigate they of trajectory economic jurisdictions activity. as for particularly of supporting we've global elections, economy the to a the remain the coming and clients The Against the leading resilient. on and global operating clients position been focused of broadly, should levels implications landing, tone world, unemployment themselves the has rate been supportive, continues the seen some conversations while data the U.S. quite The beginning clients optimism backdrop, be of cycle recent look for softness my

III to revisions. spend turn to I over and I want Basel it moment capital Denis, Before a on

across lack the look Although the small officials regulators to very as the process. and the new rule concerns our remains remarks an Acquiring re-proposal, overall economy. interconnectedness have upcoming a increase for period. of of for regulatory on closely regulatory impact transparency we about the once There and recent the continue CCAR significant remain large the process country. recognize we've cost the an followed But have We and of that and buffer. about proposed engaged will and get need we book, right. impact the appreciation from take the to as will final growth in The the across is We and both receiving as firm. requirements review a from this growth forward before, is this trading of GSIB the clarity capital much time. ongoing fundamental we businesses We U.S. comment capital industry has participating the more too reproposal competitiveness to published and credit will a of said

I very closing, about In trajectory of the feel Goldman Sachs. good

strength. our into leaning are We

our stronger harness Goldman Sachs is and we ever, One continue franchise client Our than to approach.

talent to our differentiated world-class to to outperform allow risk expertise, through Our and who provide firm service and us clients cycle. the are capabilities we execution shareholders a and are management core as for

turn Denis now to cover our me detail. over financial in more it to Let results

Good you, morning. Thank David.

billion, the $XX.X year-over-year. quarter, up revenues share per Let's net our X% on start of of XX% Earnings results In we the Page X with up year-over-year. $X.XX, third of presentation. generated

Our of XX.X%. ROE an and was RoTE XX.X%

sell results the reduced by impacted $X.XX items of our basis In seller transition by rooms. these card our to As and financing and GM mentioned, select items, XX ROE including EPS aggregate, David our to platform portfolio by were points. agreements

period. rose amid Markets finance underwriting markets investment-grade league year-over-year are million in and X. third revenues $XXX $XXX million leveraged reopen, billion capital continued revenues Advisory XX% underwriting activity. and of Global longer-term starting $X.X completed year M&A quarter. segment, $XXX the the sequentially equity the were Now for below averages. up Debt both revenues million versus rose We the produced prior still to turning by to year-over-year Banking though Equity & announced Page and XX% #X in performance of revenues year-to-date. as for have remain on to to volumes well higher tables

a million, for billion performance XX% versus lending. expect structured strong billion quarter, financing pickup demand year-over-year, net Equities Equities priority $X.X rose up quarter derivatives prior a committed of cash financing, versus by products. intermediation FICC primarily year. successful of acquisition on offset to billion to $X.X activity. record performance client revenues XX% our of net we last $X.X the which record in year were prior amid revenue a back are primarily were activity were seeing partially our A $X.X September. meaningful investment in and up financing quieter were in the year durability on FICC Equities, driven average advisory. of year-to-date, $X revenues rose Overall, driven decline was a billion relatively revenues Equities better direct though in of the and revenues balances. amid our the by XX% result quarter-on-quarter, and from Across down for improve the FICC saw increased rose strong increasing across of M&A a the financing base. $XXX billion, mortgages the which by we in results revenues We year-over-year, higher backlog strategic the banking on within intermediation revenues summer, continue execution revenues

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

more annual million. banking $XX quarter lending new other the to Management X% billion billion record to well reached durable $XXX $X.X of for management a year-to-date, record billion. sequentially and target for lending Our the and and fees private $X.X fees sequentially Banking revenues on and other quarter, increased a and to and achieving way revenues $X.X billion our for XXXX. Private the rose this

penetration our the focused product were Incentive loan seeing this in momentum extending fees quarter and We lending increasing million. and we $XX are positive for remain offerings. business, on

by over our NII reach We term, last target reflecting continue debt million, fees approximately totaled of in portfolio investment medium Equity billion incentive in the $X portfolio. unrecognized our to $X debt as and equity expect of revenues of annual to markups the and $XXX public quarter. billion supported our

equity investments and debt $X.X For the revenues. we in year-to-date, generated billion combined

X. inflows under asset $XX of the of long-term to at record bolstered classes. across billion inflows by net moving quarter $XX supervision assets and Now $X.X trillion, billion of net products Total Page ended a liquidity

to our continue are we SMA platform CIO business,where to outsourced traction and leveraging solutions deliver capabilities our We see solutions. in multi-asset customized

AUS $X.X bringing billion $XX in billion billion to third-party cumulative fundraising reduced Investor our portfolio than brings our reductions investment principal third Day the Turning quarter XXXX. billion $XXX quarter, We on This at management to Alternative to since alternatives. in third totaled $X.X and billion. in the fundraising year-to-date other $XXX of billion, billion the was quarter historical year-to-date. further by $XX.X third to driving fees. Gross more the and Page over in the for X end $XXX million third-party $XX

firm-wide period, reflecting net income interest year X, in the an interest-earning in was billion assets. prior increase quarter, Page versus $X.X the On up

Our was collateralized loan quarter by portfolio in up total year-over-year at other driven lending. billion increase $XXX an end

the net partially net was by by loans. charge-offs portfolio in for million, card driven quarter, For offset our third impaired of provision previously credit primarily million wholesale our $XXX losses and credit recoveries $XX on

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

in provisions firm, and of to pressures, down focused for and XX% on talent is given net million, efficiencies technology noncompensation inflationary across ratio We engineering compensation ongoing our year-to-date desire were platforms. year-over-year. the Quarterly $X.X Our driving invest remain XX.X%. competition expenses our

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

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

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

quarter supervised approach. was ratio third X Tier at of equity common the the under the end Our XX.X%

of and X reduced process, equity a transparent points X. remain During XX requirement We which following to appeal resulting engaged Reserve our more requirement XX.X%, process. Tier with regulators the became a by quarter, very common X.X% ratio standardized the on a in volatile less October Federal SCB creating basis effective our successful

XX we continue deployment and and clients are positioned have to Given capital point our capital shareholders. well very serve return to our on flexibility to basis buffer,

conclusion, and operating our strength overall performance improving the the of In our franchise client environment. reflected

global continuing on are to strength are and a in secular for making we clients. positions growth confident leaning and where are shareholders opportunities firm, progress as our our strategy, Simply we returns executing into playing streams. we and growing Across are drive markets while to & we our put, bonuses, and maintaining Asset Wealth leadership more in our ability We strengthening across Management. support our to in banking our revenue remain durable strong

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

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

has August you do This general. it but volatility, Trading looked the of like mean like question in business evidence trading perhaps years. your well. for marks feel really is regulatory anything looks -- been to have your many well you on perception you quarters question. markets Markets on my that done and guess towards feel others supportive. have what Do results in just And is spike matters. I But like the curious I side? if been better? the comments a the great. the you regulatory mean on on outcome did business very managed I'm the

a I to Glenn. question, And the mean appreciate I it's hard question answer.

been and can flow and we're I also around clear regulatory think I've of on regulatory been the clear that but people doing policy. advocacy ebb some process, be that we've the environments

so And think fixed and and the have adapt long we've extraordinary our regulatory franchise of respect effectively see adjust intermediation is to for intermediation different period business we very that financing, markets, equities nimble think be I invested and environments. time this which this. we've the job, shifts in you With time, to And long a period an financing fixed equities leading in to of over I time. over of and and and a all done includes

relationships, uncertainty, to who need them very an package have repositioning We in filled client rely engaging constantly not very, with And on a that's going a and services, environment, clients this environment us and this continues be scale. deep of away. active and reshaping deep, for global that's make certainly, on to is their broad

broad quarter-to-quarter you And franchises businesses look back durable. intermediation more and we year-over-year, and we've a business that consistent different think more way really these to be run into puts silos But and very important continues resilient or have and business an our evolve the were a step our service. out think quarter-to-quarter. manage more the things step you might when to businesses. predominantly tend number one you year-to-year to you we've the see of way over the the businesses, the I done than numerous and be time when they that's Certainly, made and the when intermediation financing I and more look emphasis the than across level of on financing grown focus business that are durability

the way to about we good it feel So grow and invest franchise in We'll it. positioned. continue is the

I franchises correlated are to is invest we will in you, continue have one forget to to the cap is the medium And to that manage be appropriately. time, we as those world. correlated over really opportunities engaged to of in people the do continue to to generation, long to our over ensure are ability over actively can and that attractive franchises said grow we I that. think we'll growth and that those trends that respond and as market growth How long these question. And the think time, see as that regulators a separate to return the things businesses with the capital you continue world. They're we term, those believe in we've

I but will happen given quarter. be With any appreciate will a one was that This short follow-up. that. on weak, HPI

a I I to left, think lower ROE-ish you -- that on But HPI? principal think you've corresponding look a $X on should the good about is lower billion okay investments. historical take on historical revenue if the take it to $XX.X of long -- the book over forward attributed the your I it, if capital to going earned returns as a book billion shrinks, that's time, to period that

continue of guess take obviously have at, And suggest the Glenn, success investments. business. what be that we growth less look co-invest third-party retain positions I associated a been there the Denis. have commitment as the of doing overall but generation now our a will historical sheet, with off the we driving So balance it's positions of to that, to would the as have will reducing associated revenue principal management I see balance a still we some moved of our revenue piece fund you of that with you

have As portfolio, would and returns I suggest of a don't future as have I that you to exactly record of I think guidance answer prior to returns returns very portfolio on a what for delivering But relative be on future long-standing to projected track a to our good exposures good will we that diversified returns. clients.

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

read I if especially of other a disrupting around for would draw? into of reproposal we and around you about game first the and the just potentially trading. David Comment equity trading your on the venues, parallels terms of getting are Basel to that And backdrop business when had nonbank/nonregulated incumbents. nonbank income the a threat follow-up fixed could, appreciate competitive business should And maybe the around your that, markets, in comments sort how that? entities opaqueness of regulatory perspective we on the given kind much the

large you the there profitable some There's and handful are been has of changed. that over ever, in always is business. say, scaled all equity and There offer enormous a there been journey They in as is in compete competition, those by back the question. handful, digitization as been business years, and go though need that Sure, markets. the allocators that to spaces, as they you that's big, of the X a last as And important look, even be Yes. I'd managers the it's there And of about. competition equity appreciate are X liquidity basis. which, -- integrated now ecosystem very that have There's offer an will world, of is I the in attention There clients, the handful. business. leading they lots and overall very to And And particularly be financier a for platforms will out are our the less competition, think asset think There's our talk the when you highlight, few course, but clients, credit very, been clients capital win be scaled Ebrahim. a way of than works. always they stand these trying can across in scale are all, big And and and the provider, of I clients. equities of that to those to there's very competition. gets or breadth are very, and the just been cetera. et when enormous continue important players we will We in X are way, things to for These XX press. I'd compete first always competition a relatively business, lot the them those services that businesses. of this lot to the the But there's important by a integrated couple are all good solutions the journey.

again, competitive way businesses positioned these good these for be to always while continue they to our our and a we be is spaces. very the will clients be in player So leading feel competitive, about continue to franchise

conversations back just ROE Understood. with around. investors on a And -- and follow-up to

the year been You job done that. strong. have a last X, performance reflected good over has Stocks or

are here best, think for recurring about argue maybe something the market a blocks, not not XX% building registering journey backdrop, ROE we that point basis? on from but As get more to Goldman the to XX% XX%, ROE plus, one needs the a happen What a to worst. to the the that's XX%-type where could we a

it. that question. journey we the very and of we Well, towards a I are clear, we've appreciate on have we executing believe the been And mid-teens target

simple pretty I we story. to on think over happen it's I to And has a a deliver to the execute need a time building of that. continue block period of to first thing is think that again,

go business X of over and has say a would I we that have that, and that at look business believe business, the and the years the tailwind while not Global Markets we that still Banking M&A some returns year-to-date dynamics XX-year performance and have you M&A highlight I can volumes volumes. equity First, delivered made revenues averages. the investment banking around have and investment just below improved, are we've and we XX% at XX-year operating I banking still activity, are in last averages that progress,

X below XX-year Now year the for that they XX% at months were better below volumes last the XX% first of and than XX-year averages. equity that's averages

last XX% X to than banking look Now tailwind, year. reason no better going the a for the to building mid-teens block there's back below not that XX-year one XX% get the to you months that's in But and XX-year average returns. is they foundation that's but averages for were why we're performance at first and the markets, in can

very the into our that. consumer building building becomes progress, continue we've the requires and The margins, Asset years we getting margins that improved course negligible. mid-teens. to the while still Asset second Wealth the to continued focused. of of But to the we do work that where more Management our on last which and is Management. we we can next to on we bring drag point more get few will have block footprint part be is The And the narrow franchise business, over confident & basically the it the execution returns a around returns, associated and next our time to with are our and continue and also closer It's the Wealth block platform or the

little of a We're Global put continued together, those bit able to tailwind, on obviously our that blocks performance those it with should more Asset it. business, focused be you if which so Management, we returns. is And benefits actual Markets, from deliver on and a Banking progress and Wealth building its

it's but pretty to and I have the work path, is do, We that clear. think more

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

competitive me? How trading have the about on are maybe you the I -- landscape. hear with competitive question a business Can the you landscape thinking broader with banks. -- other the just and the

market seem as a share to Your share. XXXX. choppy then since It's market been bit a peak in

competitors there. you thoughts on coming competition your increasing back, from are signs of just anywhere. seeing curious, I'm Just curious

is based When short-term at what you the in you look on share a broadly Banking last Markets our you different step but we up levels years, leading and took bounce have if & activity, our the around Global plot. market back over market you step across shares, X say I'd function franchise,

them. But are And quarter-to-quarter, which see focused on those We're the still We're obviously, huge obviously think leading to the shares M&A focused positioned M&A. make XXX a I better zealously the and banking always so from in business. position, there's in obviously our top you'll overall markets focused a we're and environment market cap variability. where a footprint zealously clients, more And contribution large on there. on opportunities

our You in do see movement market share. some

way our Christian. So clients relationships delivering we're these Sachs is to business, time. a that's Goldman a And think They've be positioned. of a going through very going in anything our long always them we businesses. but business trusting always competitive we market for share in our positioned that, but be with that tailwind There's have one the the Again, have always operated these for to us. There history long-term competition, like for don't deep well changes businesses. operating fundamentally and We've businesses are ethos, been see cycle. and through competitive operated I

Okay. are best doing you, my think range, up in On And organic flows I I'm if would class. results correctly, of think, strong Banking, which set XX%. in revenue math another very I high single-digit growth Private just there, put the

that So then the help years key just And strength like couple any sustain again remind this driving should maybe next what's over of growth there? growth. us for initiatives

this I'll level, don't add. we know have ultra-high But a this have worth platform, at I net Sure, high is decision start. big strategic something might to Denis and a that why were that's the XX clients. a of historical case, want we a fact we lending in the ago, years bank. for that those underinvested with And starting there's lot to reasons

and that part world at good an of franchise that holistically banking, way. very client, when it And seen high through your the into you But we services of provide investment the that we've is to through didn't at business. net really a look improve market we position. ultra integration learned so And including we've lending you very and a look market you that your lending, and we've important understand share the business, seen worth it it's

So clients look effort lending leadership a underpenetrated and put clients. been the those wealth other we our on at franchise team increase under wealth in focused to that to activity resources a franchises, to when you versus we've wealth place these

we've moved have Denis still like other While want growth know to JPMorgan, the underweighted needle, I in and to add for don't expect versus relatively we we're trajectory invest you continue that capability would that to that? a competitors good anything And there's I our on if clients.

The which mentioned we've only like thing before. play we've before, run I'd think amplify, I we feel this

improve as So holistic of strategy lending equities. the clients market and by and to same our we holistically the the approach in with banking by services we we clients thing in to we our those taking that FICC cover We've share public believe shares peers wealth provided and the We nature market clients. across same with implemented today, business the to GBM holistic can suite position of relationship them, integrating of those of clients. our a worked the improved stand relative on part underpenetrated that businesses the

overall relationship more we confidence the said, allocating our improve their incremental and their with clients specialist a to to David capabilities offer giving are product competitive advisers they have clients. resources, to As the

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

that? that? kind And exit charges global you going the sets And business extra then take And there. of management, business to with banking market, have with kind asset happening solution what's Again, of of The line? to Card? of X/X and that and you and on X/X you wealth is plan stop what's Apple firm's for question this first relates do do platform the why

I Mike. there's a I focus Thanks, know mean of that. lot on Yes.

to been more other our think of think that's I where a Card and the clear footprint. have really we're I than we've it. messaging direction improving is continuing are And it But consumer at that I to are say our to don't in pretty we running all I we with pretty about lot have this point travel say. clear. that Apple narrow

business sponsor M&A what is below core the activity. the averages To XX-year XX-year of relevant XX% less to back said Well, you are then, degree averages. because still

guys ever it acquisitions. of trillion have there powder had dry $X whether you've said -- willing ready, that trillion dry level You And able to sponsors $X powder before. has out different and of I or a like it's don't pursue by that seems are number, think everyone

M&A that could money be average to because so, So that this for And an XX-year put how you all to change cycle work? super gets that? would if adjust

sponsors averages one, below way, will would that growth time on. way, turn to are volumes and is average point, But the they XX-year XX-year I cap, cap dry might of I years the up. were point. ebb flow than the the been there I that than market is the lower that's market versus trends fact the around and also by time. expansion, lot M&A TAP, that guess I a mean, has especially It a on long-term and years very are -- powder cap market which, okay, economic secular sponsor regulatory it average if And go the here and five But by driven trend ago, good is By turn because your expected, XX-year meaningfully correlated will definitely M&A from slower current today large-cap around think is we with my think environment very, growth. sitting the that Mike, if to way, ago be was X is the permanent. have the might that bottom there to deployed have all M&A but line been is more will but not, not by

I be with the XX-year So end will I see lower of But it's do average think more than I we at think to historical over the actually point lens. we'll operate expected, that a higher activity. decade, will would by we averages. do time, the deploy XX-year the a have say been but

over of I activity highlighted. months. next the to we've that of think is XX sponsor backlog that accelerate do growth the in will that Some And XX, our indicative X, continue

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

We've super. for Can you offerings It's calling Okay, earlier. in the Yes, see to it I really agree. me coming Q&A. know markets expanding And mentioned hear we One capital touched on I totally Two loan that on questions. rebound. briefly through. the okay? it been nice you

see questions wanted you're higher of portfolio into loan when few & you reducing you're got? offerings to the investments you the about or make and that the Wealth then a equity investments Do increasing the reducing that is, private of ago. sure Management. loan I that the Asset RWA you've RWA doing, I private that the think lower What density impact the investment, is Just offerings expanded than as neutral understood

Sure, question. good Betsy. Very

the to generally So down wealth we speaking, low. left loans and HPI density is high the asset of is and sell density have the that

the the the migrating brings forth the it towards access and more So the needs businesses wealth their us. management lending durability, improves it, efficient holistic to it for clients, RWA nature the all predictability, recurring is of capital

strategy is an that the of component well. underpinning So as

understood the Then I collateralized sure Right, because it's right? heavily, Okay, had I was other GM I cut. question wanted this. on make the Okay. super. just to

but signed So get far yet. closed I it's as not as

does when us be there GM? make involved to you And how should go as regard it So have to be a to payments you with are understand example, in forward. your I'm of can going in? we to of close? lot to sense to is any think cap when we sure to for you there just give to that on either model this P&L I as aware trailers it's close, Or a the trying anything like contract

Betsy. Sure,

and new timing, be QX platform a at the has then targeting of but of of it's ultimately to So in XXXX. conversion closing signed not we're closed. expectations There the transfer issuer terms to

perspective. of from I we sort that's guess you, what in timing the until that would have point time. So operating a modeling platform for I tell And responsibility obviously

So with call operating run incur we to the that will business. losses continue associated rate it,

here until how QX closing. a just something rolls you in million As forward million give quarter, order per we and where $XX to the point or QX year, I'd sense a you from negative guide, $XX were on this for that of to of

UBS. to go Hawken We'll Brennan next with

advisory I I backlog did on up wanted IPO But see the to recently the follow lot market growth with the to investment of backlog. you some some in success. know that sponsors a commentary. we little a drove the said bit

particularly on and you're reengaging see seeing signs as early that with IPO distribution curious the about of so sponsors side, ECM we And what channel?

But So I thanks sponsors have bring their below of capital. some highlighted of sponsored sponsor up for I it ago, portfolios expect Brennan. running in averages of significantly deployment slow the and reason marked a And grow mean XX-year with acceleration shouldn't But averages. why XX% and and equity And little some fundamental growth time they're of ultimately those I averages. and equity few cap for been growth volumes the more volumes question, activity as are picked to they've values. still a that moments And no to think growth IPOs even there's again, the the activity continue, question do below sponsors, an run it higher, had of do a because running no kind XX-year market bit a is waiting XX-year monetization. I see I up. over averages. there's will a in

innovation business, And partnerships credit do announced and we've some and given then recently. seen And plan approach your to the several heritage opportunity? world in prosecute that Great. in how private getting that you

Sure.

compete on obviously, a we broad is business banking and with. a than with way, origination We that in very many credit is have sponsors position platform integrated leading of way GS in as investment interesting we differentiated and our one We for originate credit a people that, of to some originators originator a and and degree, of obviously, leading quite the we and distribute. are leveraged a debt time loans in some credit the leading high-yield position not a one the

We also of a we business, Management with assets that. leading $XXX Asset growing in in credit & private private credit and in investing billion and our player are

of credit integration credit. I channels and capital think when look And and of business, the lean origination business look when part are and the Networks obviously Sachs, differentiate our some there Wealth would we you paltforms. street, our and Global at to our The one private across around of interesting is think that that the into deploying as this origination & will continue across I is players and Goldman in to in Banking differentiated the the unique say ecosystem have private is our Management things But continue I interesting you there something that private both grow also Asset and & platform. firm valuable interesting into origination is the ecosystem of that's plenty channels. discussion credit

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

still an drag consumer. I there by various some your And to holistic could self-help I activities ROE returns drag to or self-help the consumer you Denis, which remaining on time at unpacking wanted And provide remarks, some just the from recognizing levers, returns investments. bp whether could prepared today. maybe assets, be from some alluded the picture, frame it's a from in the believe noncore that on is was hoping bolster business or I the consumption burdened XX noncore you capital any spend more are looking levers on of that in equity still come? just may of

Sure.

moved consumer-related obviously of $X the currently over AWM franchise all potential. that exit HPI completely a can equity has capital I drag disposing have items, more exposure, complete have selected think to which the And majority were associated the those items, impact down it. Obviously, to we would billion the understand we across the basis XX with of we identified point the we of activities, be are if of relief process as the vast of. if simplest in is little announced, the there attributed we which associated way we

over we So sort you the the And have time, the P&L will reducing dynamic remove of of then capital. components.

and that associated removing will capital ultimately So with moving associated capital the time. with businesses over the consumer tailwinds the HPI us to then incremental provide

a That's on just great. buybacks. follow-up And for

returns closer ROE Just currently X.Xx is in market target. at the expectation does suggest get trading to mid-teens to some for book, stock

at hear to to in you valuation attractive citing organically today. and of buy back wanted do current your David's price response, the organic sensitivity where capital growth levels to on prioritization most Just opportunities perspective deploy anticipation, of see at least

deployment philosophy unchanged. Our capital

to comments and the engagement we're the about some forward is I Goldman think opportunities see core take remarks in have, from of capital acquisition markets the very we our seeing step to the some the committed outlook for that capital financing, next reopening prepared take Sachs. of that's clients, if you that potential an activity

We advisory position our have market a there capabilities. share historical given netting underwriting and franchise up leading our

revenue our wealth sit incremental to continuing here place we business And today the we've and heading the core would return deploy it's across also point sustainably as basis our do to fourth and dividend. into with quarter. We buffer do attractive us XX an an we to for financing We capital that our higher drive believe remain before, to we shareholders. important recurring that about so our part That's to is that. as But committed, do said also is the And place be a a philosophy. capital. continue to capital valuation. of growing have streams very attractive And to public deploy think priority

don't believe that shouldn't We that shareholders. be are our to that, such to also valuation sensitive returning but current capital is we I

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

fundraising. management the the just on fee rates. alternative Question And looking at asset

when about all just recent seem earnings? fundraising about we the right should there. fee the alts just end state of there rates, in it some the think And since but get fee because were years. great given just occurring think that is outlook largest raised rate are as corporate the at equity steady AUM it sensing, an legacy recently there to then update And So XXXX. in know you've seeing should inflection be that the declining on a funds moves out kind that into done like we in would I the fee bucket for of would

of you. Appreciate we is that and that coming lot our asset put of over particular the than our are offerings. thing it that But track investment fund effective provide it important terms services those valuable our you in growth we fee. the is in to of obviously nature associated the assets Thank initiative mix generated Obviously, a time. Goldman paid lower board is that with to the assets a out we at and in very certain so the Sachs It's strategic follow there, much bring portfolios, do very fee disclosure question. Sure. management in Alts franchise, can are of some which dependent an of alternative on through our OCIO clients

driving business. that comes effective business, same deploying strategy the to So is we returns the of that efficiencies scale have not and with And ultimately, but important margins, each the us, and overall grow an a in channels of having accumulation for fee. to scale multichannel we're contributor, asset scope exact the

variation time. you some So see may that slight over in

results Okay. market then have business, just gained resilient on the And a trading and incredibly firm follow-up been the obviously, share. has

know today offering. driven little so and years. there's flavor, around much a trading and have evolved differentiated And electronic bit revenue get there, investment guys love past I'd your of you to how just some over of that's handful by I of can, trading of pretty the a is capabilities if been you how lot a

And story become that market you to that. here relevant just wanted little plays as a of clients. with So I sense of just get of how the share then from bit into more

again. for the even trading the and Sure. at mean frankly, look then we Thanks question. facing equity activities, strategy clients multichannel I FICC is

So voice. we have

electronic, high-touch we're voice, and for the deliver that clients. activities increasingly, ways to and we make We we ultimately integrate optimize finding those markets can have have way and to solutions

So we rate, both, plain more intermediation call have it, run activities. vanilla

set risk to in a the complicated businesses. take the have with Now is to board interesting we of channels structure or deployment of have or without on capital public trades the across capacity trading distributed process. and the either side more approach

Jefferies. to We'll Dan go next with Fannon

$X fees. gains. Denis, performance goal to come want back unrecognized about of to said think reiterating billion I And the for $X you billion comment you a made I

certain You're rata? period you obviously that talk below to there billion? liquid the about fourth the that get this that more recognized quarter? are that products more pro should run something you be well typically time And seasonality rating Or is in think maybe Can to is year-to-date. with here $X

that funds completing way of migrating and stock $X process their billion the the outstanding of their investment cycle. in versus are end the harvesting to is deploying, So to

our monetization commentary other balance equity activity, et strategically, had activity, of we've Given relates been of and have level in where about own funds, cetera, the in sponsor investments to with much a particular, market own lot the sheet markets, has as openness portfolio monetization in where markets, capital we generally. that line as we it discussing not we capital of some investments, been

next that harvest comes investors activity a exactly you several dependent we fees. to how over rate, tell we worth see be also position $X will I we run in, and in to as incentive years, ultimately fees. So the improves, expect a ultimately incentive and of these when funds we're recognize the carry of that on that medium-term will billion those will monetization rates But more and towards our targets own can't pay move

how and growth it. diversifying that X just that lending. hires follow-up of and a And But then understanding terms strategy about of of Got the in kind investment growing in over business the overall on streams? you thinking the beyond net just ultimately, next recruiting, the wealth management, years talk about of adviser the can base revenue to X you're

Sure.

think the be investment we advisers strategic made strategic in that program. a have to a decision I and sustained needs investment So

may market different the So at the have across environments flow capacity a may perceived to been sort rather and different years or than invest past. having in what based firm's it on of not or ebb

of advisers think I net investing in to outstanding Goldman Sachs, of multiple a the in premier worth sustained strategy where are the making really we a ultra-high part what is firm, invest at we're years. over commitment business

and drive AWM of that David about And and ability and investing in underpinning just foundational when to growth we invest are business. on grow. but that we're And not to comments to across a returns margins our focused how of makes that returns, sort so looking is

that and invest to in footprint. place attractive think is places the an is of actually One the adviser grow we

Cassidy We'll next with Gerard RBC. to go

you think, Can to unique of in investors the Goldman I David. position, able with to credit. private your us be is guys share share with benefits a

from? when lending. may the you, you that you your or loan $XXX think, assets. to mentioned you with from portfolio credit I monies private have through advantages you see access the And share regular your customers see private Can credit clients you whether it's benefit billion just David, private credit us or in channel a that choosing

So Gerard. the question, I appreciate

things very of lot refers interesting lending, I to it It ways. And term of one credit in the this think refers this is investment-grade binary of a of lot framed that's things. obviously, lot a our can a It private refer sheets. balance and activity with can to direct medium-sized company the business, insurance which, on lending for enterprises. is about component way, syndication is is investment-grade It and origination small gets broad a of a to certainly which be particularly direct and sponsors. lending the by in below activity,

ability choose away And your leverage they through in us I clients our I of So an particular don't go they're syndicate there's things in and wide I'd finance say And to a player looking of you're their have a terms When range to solution. how for structure one activity unique positions are in question, for when where either that to underwrite the that I we the capital we asking bias, capital. of distribute. works think actually that as things. and about well channels get particular pull listened is that a

direct We ability have an to lend.

be their might and We can that have an needs transactional meet different ability in best to show different clients situation. might alternatives their needs

do there a perspective, So we be I growth say secular credit, private from will finance in continued believe there. the our particularly space. I leveraged in positioning like that

to there's the There spectrum different capture be participant positioned this space. well like the trade. But complicated. we're origination way different are looking sometimes than it's all for is this across we're that. so channels, significant more feel in a to we efforts but And

a very able was into unique follow-up you benefit a think, bump do I competitors? just to your you be this. find Again, from on primary quick position, David, the in these thorough. And most? That to that. Who Who do you're

you're what depends Well, it doing.

said back what goes exactly you're it what doing. depends to So it, it I

into that going on market JPMorgan, you're lenders, If bunch which the for Ares for the bump of direct a platforms. in and role then like other to structure leverage you're direct include or and competing at play hand, people capital that, you're space, finance If you're other bump that looking syndicated you're to can in looking leading at going example. or a you're into people HPS a

looking need what into activity company the grade, at the complicated is who broad is. sheet, actually and a insurance their mean quite what client Apollo. And is, depends I run space. you're really balance it's and it If investment on you might

thing this I only I'd mean has Gerard, well. add, really David think you it, if out think just the about I laid

is think positioned about where you set. this If opportunity Sachs against Goldman

investment-grade deploying have to capacity capacity we example, to distribute lend alternative into credit and the opportunities are have capital for offer of space. noninvestment-grade the private to structures the and and underwrite different we We to capacity want types with find have clients, who clients to to aspect the compete people get exposed who David all relative those hard-pressed to of asset to while to many different this the ecosystem breadth that have each we class. of I'm of And parties exposure to us. that investment enumerated,

can in terms and how position the there our every like in and each really clients aspect continuum. we support secular we of trends of So the

next We'll with HSBC. take from Martinez our Saul question

pretax the margin. ask a margin got trajectory about Wealth you're to -- in Management. I & XX% Asset wanted at Year-to-date, you

all about target. Obviously, mid-XXs. have in that know about the land time $X think you've where you're incentive growing ultimately margin of horizon do I You've around unrecognized the business, we it already beyond reach talked expanding you how mid-XXs billion But fees. medium-term can your it?

the and lending about talked platform. private You banking

again, above glide and pretax think like the about the that? get of how Just can time margin to do here we around your you XX% a from peers? And path horizon

you, Thank Saul. Sure.

our arrived obviously, target. at we've mid-XXs just So

to of alternatives are other platform, efficiencies that to we it's think operating plenty as line, our scale or I of across competitors are mix that of plenty consolidate XX% and that that the cite, continue higher important there. improve margin we business as drive our you There opportunities as have are the across to drive there look we top think segment. HAM. We margins position we

to about we're long But have to margins. the and create for also opportunities the value to continue is scale term. commitment our thinking So improve we increasingly

So achieved. we can incremental try think that the are both value right the to for and decisions long-term be unlock find balance we that in this being, investment time and improvement But going segment. between margin making the

That's I buybacks about could a just capital bit. how your strategy you and know it. helpful. I Got about how uncertainty the on if the have Okay. talked follow capital But thinking allocation given are you speech we a the then proposal, And capital up reproposal. you're just Basel, outlining maybe we thinking around have

one seemingly the agencies, of We seemingly an the have reproposal. resisting that agency obviously,

election of outcome a terms influencing big have happens. We in that could role an whatever play

just And you about you I buffer buffer a your XX that do mean, given write So capital? the all is -- thinking are why uncertainty. think how point basis

as years, with would bunch uncertainty. say regulatory also the what There's Look, last Okay. and operating Thank well. you. of been quarters an been operating uncertainty we've I for in of a environment period

more into franchise is presents coming that client and outlook trajectory, frankly, economic the opportunities. think focus I

So opportunities. we the given run a buffer capacity in regulartory. But have which we run to also so incoming client pent-up uncertainties we that buffer include the support other world,

developments, and capital get rules exactly our client run be unexpected be that history have when there when to everything regulatory. feedback. we right will right to we know, support feel that means able of of is to I the From into tell generally capital prepared you effect. the clarity place franchise other lines bit But activities like to a are coming and next associated long what adjustments our this regulatory for we making As to time our interpret now. with And the we including those couldn't we for position, have

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

now may disconnect. You