GS - Earnings call transcript Q1 2019 | The Goldman Sachs Group, Inc.

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Operator

Good morning. My name is Dennis, and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs First Quarter 2019 Earnings Conference Call. This call is being recorded today, April 15, 2019. Thank you. Ms. your begin may you conference. Miner, Good Heather Kennedy Miner morning. of is Goldman at Kennedy Head Heather Miner, Investor Sachs. Relations This Welcome to our first quarter earnings conference call. On earnings presentation, the will reference be at we of on site page Investor this found Relations Web www.gs.com. which call, can our our on non-GAAP measures forward-looking release the appear and presentation. statements information in earnings No and is copyrighted Goldman This of audiocast Sachs Group, The material Inc. rebroadcast and may consent. not be without duplicated, our reproduced or Stephen Chief Scherr. the I'm Chief joined Executive and Officer, call, Chairman our David on Today Financial our Officer, and Solomon by

first You agenda start the a then operating in They call our quarter today's then an our businesses. initial pass happy will I'll David? presentation. high earning will be of the Stephen results back provide performance, of of find share front ongoing update cover observation each will from take X Page on to strategy. on David. the review to now your David to current with will and over financial questions. and our environment level business reviews

David Solomon

Thanks, thanks be of I'm all morning. here with joining happy you. for Heather. us to to And this everyone

Page a of on earnings to on were backdrop We begin a XX% start and XX.X%. a equity tangible quarter year reflecting $X.XX. $X.X ago. equity reported year Net in share return last per We common XX.X% earnings of $X.X market billion, me Let of down XXXX revenues versus billion, resulting the to slower the year, first robust posted relative of on of X. return

underwriting. under in record the announced ranked in number of and quarter. we performed one activity of overall We interest assets investment and record muted and well half lending franchise number M&A one aspire income in the results, in context supervision in to we more number the global Friday, global investing While the market completed debt posted Through one management. stronger M&A, deliver and net first and equity

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to history. served Our XXX approach our and over willingness year ability to have creatively our well adapt problems us

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Stephen Scherr

Thanks David.

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the layout continue. discussing moving reviews, targets, Before to turn disclosure takeaways to front roadmap terms forward Today, in discussed our Goldman let coming back broader to quarter, we strategic way from what expect of performance where discuss of quarters to which for and will financial a X, me initial we Page the a in the Sachs. for

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taxes, earnings our on the for was mix XX.X%. reported tax our tax This quarter benefits. discrete rate Next and reflects rate

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on XX. Page Turning to capital

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balance Turning to liquidity. sheet for XX and Page

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quarter, On year the billion liability side, up end. $X our $XXX this deposit over base versus billion totaled

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brief Before closing thoughts. taking a few questions,

cautiously quarter performance optimistic are but the mixed that we operating reflected environment, in the quarter continue. first late momentum can Our

future investments expand our and shareholders. significant create drive return to significant growth for each making this value in with our our positions we serve Combined and to in franchise long-term to clients businesses. of are platforms and deepen the and our scale We investment us in solid our client

dialogue look thank for forward the a to we plans With open will dialing continued And with on line we for course strategic and you Importantly, our of XXXX up you again that, the questions. beyond. in. of now

Operator

instructions] with first [Operator question ISI. your comes Evercore And from the Schorr line of Glenn

Glenn Schorr

on Just Is forward? being lower estimate it’s pull your support a at quickie is what numbers environment help with are comp to returns? would a on years or the a we year, line lower, ratio comp looking in ratio the past that best for be. Meaning that

Stephen Scherr

is out I we that this. expense consumptive we so platforms policy But and each what overall that's comp say to marginal last fix implied as said and will that call that of will this. and and in assessment view particularly we much basis. roll comp you both the expenses expense. make encourage that in There ultimately comp continue forward our as OpEx people know best And as look we on policy would margin in in the and at So intensive ratio no build are yield less as intensive higher shift non-comp, no to our be on implied fundamental of quarter, will is change

Glenn Schorr

there's estimable different you on is million reserve feel litigation it? can't handle like ask litigation you a – Do front, probable really just quarter for the have way. I low the at $XX XMDB only and not point it will Or number? this you And so in that's on in why

Stephen Scherr

quarters, those reserves we we are legal both firm on quarter as confident that each taken not based several reach Obviously, well and over and XMDB but and outside accounting past have to to any as experts, think litigation. just so proper adequate. on that all circumstances, those as the feel I reassess the reserves we internal, out

reflection is of a this number And so the just in that. quarter

Operator

line of of is ahead. question the Bank with Michael go from Please Your next Carrier America.

Michael Carrier

quarter, First is you in just levels, think but that given just that's I think question I half what of mentioned things activity of guys some obviously, one the the first pipeline challenges completed the on but then and M&A, better. week weaker ECM improved of terms the during

you mentioned brokerage balance picking think I prime is up.

to a areas of you for back sense a year? what to where think bit were, may longer of reverse wanted get come quickly that you on just can confidence So take versus what relatively say September to business we areas last the in

David Solomon

Michael, is comment no question muted. broadly. just part was early I the sentiment quarter the in will the of quite There that

to more longer said sentiments. before, I corporations thoughtful to be and tend a As take those time shift

relatively While significantly there will and say that. activity is pace the really The would don't out a issuing it's strategic levels no disrupted And question show from been to stuff quickly. that certainly slowed. I I'd much of certainly come at corporations cycle. normal back moving activity M&A that gets think that is more long

can client in second In we the we're environment that terms half the up and that of And quarter. pickup saw of given continue. certainly activity engagement, the significant market in pick

certainly forward hard that quarter, take on activity that of think prefaced any Now two it's it's quarter. meaningfully judgment the level the the I that. But weeks improved half second only into I to so in

Stephen Scherr

like Michael, the think David's if an only to quarter I that markets to increases doesn't the increasing over equities, I And and forward. you is equity fit, of to in obviously equity play there advantage driven environment skew the public to we I as line, in and comment thing speaks at think the think would add positive we're the it which seeing of level though balances, prime is look a valuation opportunity I activity. take I&L terms where the month-by-month saw just necessarily of in event

Michael Carrier

guys expenses, you efficiency. And efforts of then Stephen, non-comp focus focused maybe and that some the on of some things you one mentioned are just the optimization on. the the on

more on sense, come Just in see based and XXXX will optimization get you past start that some and of it slow the wanted XXXX? made over these Is have we the a years. through efforts, investments to Is few are to starting that beyond? to that

Stephen Scherr

obviously it First, at quarter, I because the obviously down of on revenues that which was expenses the being up past 'XX to reflection curve. ratio you the all the part than said when the efficiency deeper more was We've look expenses, in down. came think it is going of be is

look investments view made of see to you three when a over as we'll course when through. see think as 'XX developing the efficiency at have to we're being and models that we are 'XX, or year now begin play I

trade, which beyond in you'll that see see in take marginal platforms per cost carry less horizon. that to investment the lift, of with in the expenses put being them and intensity You'll margin context of it terms of context higher that the

And say start next as profound several the so now. will I say you through with that that investment more over efficiency I would years, see play the being to

Operator

Your ahead. of go next the with Chubak Steven Wolfe from Research. is line question Please

Steven Chubak

start-off I strategy. I&L wanted to with question a on the

fee-based to efforts and outlined you in investment principle So revenues recurring the reduced line. increase that volatility

interesting I&L. that questioned any time stress gains go that still noted there us for outsiders that just think some generated be those have in accretive as of allocated we streams the point just I you was today? accretion at away. driver the the as of more significant way investors which is size ROE business volatile, for elevated of given this but revenue of that's made amount is maybe overtime, should capital And am comments within One how something about ROE the is equity that this many would wondering

David Solomon

slope ensure we're that that investing, consumptive less the know you therefore, as consumptive which will consumptive it. from we curve be of I&L generated and But and of that, third-party curve taking as management this is consumptive P&L party third balance is time is of graduate assets going take the that. part down that this sheet which the the capital, fee away revenue is transition area up I of and of is as to intensive to on balance which balance less investing volatility our the one think from is just dampen understand to money generating on itself a managing predicated time. be That sheet largely revenue, of which of stress that less balance is much really it's important transition will sheet to and an sheet mindful the

out I really this think will a of it and And is transitionary reflection period. so, shift that a over bear

Steven Chubak

question me optimization. And funding on one for more just is

by the in with wholesale XXX that basis plus billion target lower spread deposit benefit year in you your noted point higher deck replacing with remarks, and that funds cost $XX deposits. cost for So growth

cost momentum the bound over wholesale in is growing can at looking say much we Just the capacity deposits. those lower that time? or think billion it you number target? the that a how should funding have $XX replaced And upper on conservative fair deposits Is be about how with to

David Solomon

think conservative it I is a characterization estimate. is. So of conservative it correct, being your It's

largely firm If back element. are privity in greater won't is you that matter, us what on less less build with how greater look put stickiness, rules at. buyer or functionality deposits and deposits depositors. of platform. we eventually But time come cost on would of these the greater able funding we're be capable But as conservative to we quarters, say of we think and as that whether and about wholesale, for of see in suggesting lower growth around this of predicated context is and jurisdictions will deposits thumb such we're extent the UK a numbers seen start functionality, demonstrable as are currently the look several Right a in to it to greater relates particular of in price. and there the the over U.S. estimate we the beta I we've that price that the growing take-up, both terms if in will, platform also will [ph] now, on last other retail to those over that where are deposit key pretty be the we incremental [inside] I you reliable better the as ultimately reliant, you the

Operator

Matt question next go is from Bank. Deutsche the Your of with Please O'Connor ahead. line

Matt O'Connor

a does I bad if could to year. until comment obviously first wondering if long seem taken time thorough, that. you But being thing, the appreciate so I quarter like is you're wait comment of I was was underway. while on you're standing just still processes it the a wondering just review next not long. could and not you necessarily has why comprehensive on It's the

David Solomon

a and that put the that reviews doing before, feel over stand more have to progress. of making do another also we will to that you to want years, we're to toward that want I on work and respect where transparency sure can we that people is forward multiple move presentation we can this, really things by a this. of be targets, we're we say But done we And our and right, as businesses We're we is things in we you that saying clear, forward today's as there is we bring kinds we're getting that that we right. urgency also to something doing we're that example or to want way recognize to it we organization what which we're make our that make doing we're as of moving can hopefully get them at, lot forward make sure start haven't as in behind trying certainly sure to make we it with their we investments want where it

couple so moving feel build team, three our And comfortable highest value can caliber the we over that we management over perspective next is forward. the execute we're something and be this to quarters. from looking in not years, we're is the that of way And five next on to a

fact is but it period approach we we to we right the time right the think want for balance sure that, the execute going flawlessly. this and to that trying and And we're you do can. quality And we're more us make to all quicker we understand way so in highest

Matt O'Connor

some have be first speculation not an that then would this year? assume And know next I Day recently on you that been table quarter be in the year Investor media year, might might there doing I happen and this

Stephen Scherr

decide just no intention David's think and off of to we form as what then. closer. do, now comments. dark There of get is the go I we'll we point would to key will substance and between I that here us for

presentation said, front in as in very fact, obviously David in And that we're the we're it already a cadence engage the putting the and seeing you. of of regular in to In context you're the targets whether and context disclosure the needs on be and and our the financial organizational profile in offing shape in performance will we business review period, to interim our of change will of change going structure.

put the we And will whether business. our you for update, some a that. of look that so I which in have a through that comprehensive of a we And where all Day other or us lens and Investor more at think cleaner form engage takes and forward looking in place form we'll

Operator

go UBS. is next Our from ahead. question the Hawken Please Brennan line of with

Brennan Hawken

is the So ongoing. remarks business. understanding prepared you think I the review in Stephen on about that spoke FIC your focus But

within example small a highlighted business. You commodities the

from that So and is to incremental you think impact little all discover to a the capital an hear, in kind at color thought or may what and might early be us impact expense interesting I help might least indication. impact broader a or frame to commodities the an on bit considering you more about how be to help full of what inform, FIC provide us

Stephen Scherr

say would the I Sure. following.

all and division to revenue deployment the generating way in in matter, are the down we at the the engaging reducing time, with considering general and toward looking a capital eye we're in which more FIC, changes expense. optimizing to for an As of same make

it execute. will to the It are context it's in the if across obviously I are efficient more per-trade and both of at but seeing market FX, put where we're do would less platforms areas that On that them to and equally those equally going own the each intensity. those consumption. on through within can commodities, have at where that accretive. orientation do terms value. of across in revenue client center, to context the side, makers. trades where out opportunity which in it. down has also can and we division, we There I'm those making shareholders look have the we is clients historically meet they All capital lower to capital we need to and generate particularly engagement low-touch reduce order want credit, of the be look engage businesses FIC, doing capital their look We around around assessments, inevitably expense. we engagement. elsewhere work all we to say long-lived systematic the is to of capital in consume in some cost substantially means costs in our And dilutive looking shareholders want release areas We'll front be trades that commodities extent of in value equally to more reduce those. But is to develop the Those are in the of you the been capital, exercise not while, honestly where to

that in We're mortgages. cost which more the in in and that example, to businesses, the we're put the In which can sits platforms at efforts for efficient shorten looking where capital business in client our the bank of in bank of with touch ways so FX, be clients bank, our commodities more we're capital. business credit. from to electronic deployment lower So looking engage. we the Europe funding it looking has We're been We're low of platforms as at the redoubling looking benefits at within around to it-self risk in want exhibit diversified funding. avail consumption in

driving these cost, are examples sense review, you be of we lower capital get give in position All where this And through lower quantify as to to a we're how of that. we'll to consumption. a

Brennan Hawken

the when at guys point, because guess public. And embedded, into on to or Goldman innovation lending about, card generally then the that need saw announcement, the question know initially I we then is about a I card a initially should details consumer the the guess I disrupter is talked as when when really card Apple a the of efforts. product. viewed And get idea this talked more not more as on there that establish was you efforts, consumer But can't say it's to I broad understanding lot you players.

be have? growing or business business. it, in a stickiness So the disrupter players? should better? little Goldman can high partnerships way right to Is at should tends we about a card do a bit this and frame at the a competition over some you help How but line forward. where be Maybe going to we that, not you, with about to think co-brand or is about think us think then Thanks. how the scale establish level, years? this specifically, to still want think whether high many about And comments more in higher level to How is ultimately coming approach going consumer

Stephen Scherr

disruptive aisle to And I find an of is the be will is of a Goldman and be as absence with partner. launch the will what Sachs, as as us enable I us that once for will publically. David enabled think and known innovation innovator Apple of some technology as legacy to the legacy that be think how you a card edge. and importantly we will said, technology to innovative had Apple level of has absence along business a holder with And the think judgments So the it in be, I

early is, which think no remarks, disruptive no which business, is the his see legacy I make prepared us David you ingredient I laid of time. But So sense. in lens to all to will disruptive more incumbent think being being a those technology, in out as judgment and at your broad

we think projects. broader looked We've consumer. now We've the that but that to looking been coherent pain-points and we felt by we're markets in I to context we looked successfully Marcus. is be which space. In There disruptive. there consumer were have products, products with loans the also at where our you think commanding along, started aiming are of for a verity I the of mileposts think do that business, to where card just wide intent relevant. to we're the done build where capture looked card is need and for beyond and now those look each all can one business the share be early we verity markets has that And that are of in I them, market at big to in of the are should don't at that

scale think that Marcus platforms would in our I terms say deposits question a now Finally, cash cards. build on algorithms we with of say across the to useful that benefit equally playing build. also corporate whole I we're not and scale credit in scale, underwriting cards is orientation in delivery, technology of in of but other that is and like things scale us just out the our now as respect firm. your an to and of doing We the is And that context to in how I'd the management. objective

I And more so on broadly presentation. consumer laid direction in that's it of general business. the But the the the reflects think for David overall out traffic firm as

Operator

from the Securities. is of with Michael question next Our Fargo go Wells line ahead. Mayo Please

Michael Mayo

it one delivering your on of I relationships it take? terms change Thanks. single-product the one I to consumer side. whether years, three multi-product is pretty side in How Is so Just single-product to firm, deposits its credit that would And know the offerings, overtime. but upcoming long year, or year, think card loans. on or clear years, seems intention less the now, wholesale like XX right because relationships five

Stephen Scherr

with this of context you and common beginning platform some And that multiple together need being You a where with platform. own, a But began. here that's was we begin the to grow somewhere now deposits to common our that's all we're we two and to loans. But some process. and business know of don't. pull the out from in beginning, a business, products, obviously we products, ambition a began We

firm. In Money, example the narrow consumer so effort. the very within we're seeing a already bring I whole Clarity of give is into the the delivery integrated And consumer, which context of will the benefits you whole of of an

you might deposit was openings category and for those had funds worth having consumer there Marcus we component offer consumer. be floor DNA a Sachs obviously a the many the has business add GSAM mass which delivering the might Money in expected bring firm take build effect had space managed with equally the will Make investment together. Goldman we not some for division so And strategic very were is who affluent products the Bringing to a that or of see of individuals. net synergistic factory in out and the management high another to whether many, in to that had the up we businesses years together mistake is of how that the also it, no And mass in use to that of our than managed bear doubt bear and all yet could real potential. asset of what as higher is bringing for of platform roll Clarity industry, contest as account where wealth and off example what the the notion those that as of I'd terms to affluent business, bringing that in we in

Michael Mayo

I one your of process. like seems a is I Thanks. the what reserved Malaysia DoJ that like guess up It control? seems the then that, up. is What's there I to big you matter I Its some you spead. Having follow with Malaysia talking to would resolution. XMDB, less coming it like have the you can bid-ask some to can facilitate are would tell, settlement. have and And some process? very under from about interfere investigation billion a resolution, onging, What know I what like obstetrical? do billion. guess there unrelated the is you've said can't And know $X $X with than

David Solomon

And this possible. as committed move are just as than along nobody to wants that we to the resolution would I absolutely can quickly to we that first process we faster everything So, to say get do. doing on

as I But look even you clarity we're point like. possible. doing resources to necessarily it in all would working as firm a as to reach we timing we'll time through. its position quickly they is resolution see Malaysia, a in than not that using at and and in I process exit just business like are the I'm can people more to diligently a think urgency what think deal on process just I And say take reach give unfortunately available the the is us here to that that is and this with what more at processes There working resolution. and

Operator

line the question with is Devin Please from next Your Securities. go ahead. of JMP Ryan

Devin Ryan

But So would also first that relationships, had sure those question I get mass would other seem channel. very strong think the acquisition traction Marcus, here within platform with is and just Ayco to on to enough firm the corporate opportunity make provide relationships. a affluent you want that to customer developed

get the plan So platform or of timing strong little together going I'm role real coming as just trying to puzzle sense more to of into it's out timing a deeper and need those really of get the sense trying is here bit time? relationships. all already to pieces in this if to whether the or of And is occurring all you

Stephen Scherr

So go the in as the say would affluent mass the the a as on to developing of about this. blueprint development development in how are plans we I midpoint to business,

human both of efforts I space context think technology likely will that what we've engagement. based approach this and the be seen this other in on in mixed some is

what's to interesting perspective is aggregation think with I very clear wealth that of this. entry position as work of share terms in customers gaining us an of gaining place a is that point of point and

in while real of wealth ability example, with sense, good business Ayco the done for a carries large C-suite C-suite as is on But exist have that engaging business view in a that companies looking to corporations respect we're has that and inconsequential Google. has has place in-house, a variety suggest, within Our the you and been job on the introduction ways enormous of I we very think And there. about develop in corporate of thousand with involved which had Ayco the beyond employee potential. to focused and very a to have that public exceptionally the the business we've an including employees that their long in several for Ayco the discussions already had managing seeing, been

And earlier, into its So going businesses, looking to of going But you up Clarity got and Ayco engage. business. significant at different also point a I that for is to entry solving place the is business, back work momentum and range the we've entrées very point, important. the makings that raised acquisition or think Money, our I of think business customer cell savings in the a ingredients is be obviously, generate loans at to these the a businesses, model into because in the take or be. was I'd place when to sticky the consumer all where is look question an that say whether that early of are entry can opportune

Devin Ryan

actually their the what what just And operations anything follow here around up else to of on either move individuals just specific expenses allocate just people become can and returns curious was the they more this geographic are just do? to from contribution? and from those plan more I'm trying and there. And earnings, implications I'm a better going of in terms to remind already think Or a for you people about engineering the just businesses, or focused are to X,XXX businesses focusing change or then

Stephen Scherr

business, platforms out were there issues that that call is them separate division. the an the to business. the largely this in business front to of on control here particular who about think want or of existing the people we I a that moving done This house. where And processing to is closer end are have within focus there being the are where such bring now that So idea otherwise is

of greater not that's the to put control that objective. to should do The Now seen, in going is I there efficiency the of space. to aspects the and not are move but cost that business to engineering to be certain control hands into the remains of are the or and and out whether also point the businesses, that into that's more leads objective it. operations like

in move going going involved, to example sense. the the to objective experience the division. really funds to within also are not to It's my firm, I'd in people remit clients into point movement those have is of for the to in that these -- moving businesses. who and overarching move the improve going it's the customers businesses with out stay client out square control a of of that people So that's our or

collateral to sales look you perhaps had at that with intensive human end settlement, context we in is business, The securities be you in customers If at in from place person through this the was the middle the management through way that all the look front have and particular the in business operations the and early And person engagement the in it customer now changing. mattered. to that chain the satisfaction and mattered used days of and satisfaction of trade past the us, matters in entirely engagement the in reward the the considerable which the beginning terms in case, satisfaction is capable to take that business. than of at of repositioning into, of these more look the our flow that context people of the has greater mattered I and of on ever it's the client with in harvesting. and think division this securities And our paid business question overall

Operator

ahead. with RBC. the of line go is Our from Gerard next Please Cassidy question

Gerard Cassidy

of of investors competitors result review in the markets mentioned we closer that your obviously or the Morgan, Banking to specifically bit those of the percentage should you as higher Citigroup to flow you business, than in Investment expect as David, of peers two to When total looking build a remain quite still that over like of America. revenue Bank five revenue, a JP those years. a strategic Should are percentage will three as a review and next those compare that elevated? value it's businesses some your

Stephen Scherr

and be I big, services diversified any more to shift committed, quickly. will as can the of the operation, those expect we at consumer don't in you had of going universal their heading anywhere scale their traditional operations expand footprint we what But size have it's where think fall. that and at of that banking I banking than the bank make-up we're the to and close doing think you expectation to we're that and more have businesses. think we're and just and to to But competitors for their a better look elevated a to continue direction products if footprint term that when degree our lack you look it we continue

Operator

Mosby Vining is with Sparks. from Your next Marty of line question

Marty Mosby

calling that building quarter of about gains NII. the in of part revenues. more much now some if it's it, rate on higher represents lending Two part in questions, get to of out you're going separating you one out It your and that continue growth at of business. investing you about something the and else XX% of the look push it's banking And as thought business? the to Any out the and and any the other at sustainable in

Stephen Scherr

start. at I as Well, said the

profile several hard Over the which disclosure, business can the a organization. at next our ways meet so long to to course enhance months, we changing and the take of look we're in of as going

view we'll And our as call, of in where forward have and lending you and all bit And context the the so I best. insight. on investing is do challenge the prior of said a of a

$X.X It about of Investment all lending. accretive to the context year do we $X.X will indicates. This accretive of is number franchise is is business. year than in I Banking PWM our something that we're the last to the closer What lending paced And can to business. this we'll and that to on billion NII adjacent based economic greater looking I billion. and what at will to the at is the say matters quarter, we our improve. that that It firm is say consequence matters so

and And into out I and so this tie lending series from linkages has adjacencies would also clients a throughout a with that customers that of the is well a and risk firm. point know all-in we that the overall cycle and continue we end, are. context to close we in And we context watch this of book. to view, remain of where of point obviously, XX% in the to the this secured

our with make direction to around pleased needs. here do that we're traffic we reporting so put everybody's And meets we'll it the and of that best sure

Operator

go Please is line Al question from with next Our HSBC. of Alevizakos the ahead.

Al Alevizakos

a So plethora you you've yourself that mentioned plenty And have firm. new of clearly, exciting embarked consider of in times technology a ventures. you're

view can amortization. the the already that for and increased you see of and money my we impact of in amount P&L likely some So technology put

you the of to either out explicit budget U.S. bank Would However, spending. the time bank the players a least and few same change the provide at at run IT time, us provide IT figure, number between Thank be around? or an able with one the remain you to you. this not give split

Stephen Scherr

they the in into platforms say and The like as the over the in and example, cost of spend run both Marquee. with in would greater and of considerable development So platform money that to Whereas context disclosure digital of and look amount an out, us. the give use in we API you of, to comments, the to time change will considerable investing, we that will run institutional overall bank bank ultimately the stickiness are the look customers of I basis and a rightly on the an I insight that is my content you of introduction platform give the spend create the bank. point where has by and you. the said this we consume clients potential of and for data trade the

in that out we're some a I'd platform this. money also like around numbers Marcus in we say so have spending that. given And

in 'XX, aim So relates that in spent around as context $X.X that now various to at our billion overall are of investment disclosive We're in technologies. end to the be about consumer at roughly But the at that. all $X billion of of about initiatives spend more we had going it play. disclosure the of we forward these terms

Operator

question Please Kleinhanzl is the with KBW. Brian of next ahead. go Our line from

Brian Kleinhanzl

one just IB was question on the I backlog. have that

and shutdown what the of you're without expect And certain some government through quarter-on-quarter? walk Thanks. into from increase driver just environment it the macro to could would that more now about was that, here? the all you If drop you and

Stephen Scherr

and close ultimately that decrease of activity booked. backlog of that a the in with largely into M&A the obviously overall in out mechanically backlog just quarter P&L. bookings and the was reflection moves in the was connection And fees So the

on asset We suggested M&A fairly future level see, buoyed financing. are, continue had David earlier, of the attractiveness a which dialogue by to of as is continued activity, robust and both where consistent prices

that that activity. is spoke equities, I would quarter backlog to within so the see our an big in probably context about we point And tech is of IPO And related expectation in number in rebuild for uptick the saw in expectation of it. our a that would backlog the IPOs I the we out backlog so this come.

pretty remains The And for feel the depending to business high very the it in on upon of direction just on basis, one of is fluctuate business terms thing very, tends of that say bookings, backlog but backlog good itself. still overall. so historical I an other traffic we would that,

think at to I the a out movement bit historically. at in pull we the lens so often look quarter-to-quarter it's And important just that while equally and backlog, it

Operator

Your Lim the Societe next question Andrew of is Please from with Generale. line go ahead.

Andrew Lim

we appreciate very now, trends, Thanks then on value four the so if quarter questions, just was I you've much the versus drivers But you carrying the had for have the disclosure follow security debt equity. I&L on with the my the still and in for to of I&L side to color to that equity question could private taking behind especially extra trying I'm square as I&L, market revenues. given. wondering main in on give give my that the net declining understand some struggling portfolio on well I I'll respect with value And that. some I'm And side. you

an expect as had at in interest some yields deposits, quarters? year. for how could continue through $X yields color to saw deposits. million about increase for over expansion that's And versus improvement coming stay can how to raise if as customer going asset you forward course was that going I that customer that really the you wondering that give yield XX% big You've assume flat let's just improve deposits. to over sake we customer funding this you you we to How asset in might wholesale of and the that your continue million raise net to if of expect income increase and come argument, forward liability to $XX the expansion

Stephen Scherr

which Consistent me interest your should don't will let on with net take grow. income. you with response continue to my in question the seeing debt So that the mind I&L, is consider the start you one, if second and the earlier, I inverse. in the two questions growth to

around client And on different earlier, that think improve the as diversify of mentioned lending have extent lending only the serves I a funding the the priority that that to that firm. we laid-out will strategic firm. I further adjacent mix margin will we a see As businesses number we overall of the that as

the the obviously can And avail which as retail were times in lower bank, growing we ourselves now engage this so provided of mentioned as funding in and extent I've several had to we through lending by the cost call. deposits, that

margin So in of increase. virtue that you'll cost funding. increase by It increase it we see NII firm terms equally extent the avail I the will ourselves adjacencies both poses of lower think that to the will volume to of and the

a and demonstrably has as it's part less understand I&L, chart, private trend skews question the equity line On public. virtue as you and happened, that action the again toward on see your not portfolio And equity important would. relative of this this positions, about that see price public you the doesn't In is observable public particular equity. is private first marked to that by we public the market where than on markets price relative hold are equity the public to obviously you run skew otherwise always hone of Where equity is equity prices. those that priced to and and

driven. event very is this So

there You company that a to is that may different There that level another It see might some possible. event valuation portfolio us investing may proves given might be we us causes up of be performance remark in the movement in positive remark down or occasioned a private that where that. to a causes position. sell equity by at round equity that

low driven. or correlating any prices. very it's high to given in event not be can And in price It doesn't what quarter equity a hone necessarily necessarily consequence, movement. terms to of it you and public see as So public

Operator

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

Stephen Scherr

second questions, behalf no On the like there for coming management to we of of call. further many months. hope take I Okay. a the are team, our forward thank don't see in to would July. joining otherwise, everyone hesitate Since moment If to please you senior And the arise on in to your quarter our day. enjoy Heather we look to out reach rest with in any meantime, additional call of to you speaking questions the

Operator

does participation. your gentlemen, and XXXX the First Conference Thank Ladies Call. Earnings for you this Quarter conclude Sachs Goldman

You may now disconnect.

The Goldman Sachs Group, Inc. (GS) 15 Apr 192019 Q1 Earnings call transcript