GS - Earnings call transcript Q3 2020 | The Goldman Sachs Group, Inc.

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Operator

Good morning. My name is Denis and I will be your facilitator today. I would like to welcome everyone to the Goldman Sachs third quarter 2020 earnings conference call. This call is being recorded today, October 14, 2020. Thank you. Ms. your begin may you conference. Miner,

Heather Kennedy Miner

and may will is Good on to Investor earnings the Executive Miner, presentation, we Financial of Investor Relations our Kennedy at morning. provide conference can Goldman and also reproduced performance. update on detail. website by Chairman their Goldman is call audiocast copyrighted found results David He progress on by Scherr. David. Stephen an will joined rebroadcast the Today quarter franchise, of to This Relations the our third information our forward-looking returning David? third Solomon, over measures consent. Sachs. on Note This quarter happy and quarter your start and and Head Stephen will our www.gs.com. Today our Officer, pass Officer, David non-GAAP and duplicated, on earnings of macroeconomic the and presentation. I’ll discuss appear year-to-date now take Group Heather Stephen then questions Welcome be our not Inc. without in our backdrop, our Chief and Chief Sachs to will at will or statements reference our office. client be the be page call. which third David earnings release remarks. I’m to following reviewing material

David Solomon

start like COVID-XX. friend amid hope thank healthy and saying Sachs and challenges to I’d Heather, you all Thanks by continuing with remain morning. of joining to the family for your at this that everyone you, that Goldman us us

evident financial on equity $XX.X of third earnings return we as presentation and XX% of The Let be share, return a billion, of of billion, year earnings and produced with $X.X net $X.XX quarter delivered me results. begin of the X of client of our tangible quarter, breadth of Page XX.X% a on record this to equity up strength quarterly we ago. versus net continued per franchise revenues a our the In and XX.X%. on summary

Our third also costs returns the build burdened results $XX of by basis billion losses were for Returns higher of strong year-to-date to revenues credit by contributed reserve first half. quarter and over points. X%. impacted ROE an XXX Litigation our year-to-date in

The the across relatively levels leading maintained benefited announcements strength period activity from half global recognized across positions. and recent across our ranking markets market quarter. XXXX. active third of earlier M&A demonstrate an one first equities we in quarter continued global client on in maintained public private initiatives. of the making, including classes share underwriting again strong lead in our In strong positions a management, countercyclical of market our our in business. to continued platform, table dormant asset robust in in performance We by engagement, year. backdrop, asset strategic as market the three markets from positive performance global diversified number and ranking delivered in momentum both high during with solid client equity very and yield, in a increased quarter both position underwriting, high top gains in We FIC We the We a our the improving equity from reinforced gains and in

have We where Solutions portfolio success credit positive commitments. of on generated Strategic track we $XX billion Fund, our in and and also investment our Street strong total income interest we’re West net performance for with to continued

ultra funds advice marketing PWM alternatives to we equity, on equity are delivering net and continue and estate. in new capabilities worth valuable to our launched full high We real clients. have management, spectrum In our private growth of wealth provide

to have success asset have partnerships. to an set of see our continue opportunity. resulted our In provide synergies to high with serve consumer, been pleased platform our referrals to personal net representing groups a XXX we business and of through integrating this worth directly progress clients year, both and new expanding made between management billion which broader also we’ve We $X.X individuals financial capabilities, over in digitally, both

quarter, During Marcus integrating launched year. into finances, launch Marcus investment view capabilities to comprehensive a give Money’s the consumers which to we next building of checking the Insights and Clarity capabilities their we continued and more will progress app make

On financing on with Wal-Mart expanded with launch the platform side, and we June launched seller partnership our Amazon.

to and time. grow to over our additional continues Apple platform with partnership forward card credit leveraging we our partnerships Additionally, look for

third announced by the the those our COVID-XX trajectory. potential peak million to losses in work. U.S. central April, Federal of to of England Turning reversals X continue to reflecting banks markets said, continue economy to XX by labor quarter, down remain deeper the tool. rates by uncertain door show jobs headline the latest the expected policy the according we approach to X.X% several for a in levels inflation backdrop benefit year, September, opened nearly nearly fiscal while in unemployment where XX% and negative X% is challenges unclear largely risen which layoffs and to the people, environment have perspective, In declining with Meanwhile, over reports, Bank the temporary operating reflecting some approximately average on brought an driven rates and were forecasted by Reserve the to targeting an this markets globally. rate from of improvement to permanent macroeconomic contract governments unprecedented short Page From of people improvements economy. the continue its That million from on support In as that navigate locked to zero the has monetary out job to in next that same X, the new vein, U.K. would near term years. the a

In trajectory particular, winter. a impacted to we and including recovery these to of enormous contraction pace gas. and may July basis as be our expected see economist’s virus in X.X%, Despite into XXX the to of continues industries, growth the GDP the continued of globally while there the call oil the contraction. challenges uncertainty uncertainties, global for Additionally, restaurants, expected head XX since expectations impact U.S. which our XXXX an in points of fall economic earnings basis estimates an number X.X% and slipped improved by hospitality, points we

into as ongoing Looking global the and year, spreads, with markets of seeing estimates have globally. speed strengthened higher the next we expected in of reflection spite X% growth the economic and are credit of equity U.S. tighter perhaps a X% of recovery. nearly In challenges,

the quarter, This in the companies, S&P top third up however, leaving concentrated highs the names X%, new and touching average in March this X%. declined while April. the higher gain, the in XXX quarter elevated seen the remains below tech and the rose by remaining September than also levels During than third XX%, was X% volatility XX% well index a rallied in XXX which market VIX index quarter year five though the Equity more ago, year. yearly by the for with

investment credit tightened the tightened basis basis XX yield front, On roughly high this spreads points spreads by by U.S. quarter. and grade XX points during almost

we broader weakness markets about in the forward, the economy. risks As we vigilant in and potential go remain

navigate are focused this help on serving the to uncertain we our macro Given them evolving environment, backdrop. clients

to to on spend our Before moment turning approach to office. I’d Stephen, a return like to

the number healthcare and to public possible all organizations fully and We to world. have time employed in normalized therapies of this will to allow operate vaccines develop private a We I do a to protocols as tirelessly work new more of as safely believe around us which as return environment.

collaboration, enables focused come safely greater helping which is together as being back our We our culture. people on key to are

local recommendations We return to continue the people adaptable an considers the to need tools health individual give the safely. they our and employ to approach flexibility circumstances office and which to

will gradual office to we authorities top with remained at our situation have XX% through to a a the where COVID-XX ready priority. people the would circumstances, Labor In In roughly of office. as our closing, rotating with to dedicated ongoing Europe, if we evolving make with our York, we Tokyo, while we’ve said, operational capital be week, and safety continue XX%, resiliency. relevant gears our close are strength like the managing nimble to people most have XX%. continue financial of uptick XX% New cities nearly have and seen the In clients all last we basis. of ensure we’re to thank shift in Under to contact York risk, and at Hong around who and I Goldman liquidity working In from of people and our office Sachs remain the warrants. firm’s in We and X,XXX operate Kong and U.K. health New continue people to in in serving the the That people the of keep since around of measured weekly we a progress. working currently on as and Day we’re

XXXX ways, to strategic and it has incredibly the that, more progress on on goals comprehensive in difficult pleased executing I our state call of our While investor in January. made update and earnings fourth our been turn our forward client day I’m look we’ve at franchise providing Stephen. priorities, a many I’ll in over a to With year with quarter

Stephen Scherr

David, you good morning. and Thank

our with summary results X. begin me Page on Let

capital. well remained During our of In in raising all very segments. the clients four across the active third business firm equity corporate and banking, investment performed quarter, our debt

fees the year. dormant and dialog saw also year M&A global enabled manage a credit markets, In year. driven remained asset strategic as client following We was first management more period half an and high across the share increase and of we other for challenged long-term in a to as well engagement investments earlier risks our clients growth during the activity gained in strong In from by gains management, following equity asset more classes. higher as

reflecting We $XXX as let banking. also our revenues headlines, we completed year across now number performance $X X, first over and closings beginning in participated meaningful on net lead those of management expand date wealth growth in advisory the year deal nearly Page spectrum. on turn by in segment offering announced to ago. half Nevertheless, banking business quarter, last both our announced billion with deals quarter to billion, XXX year third produced saw margin. we volume. client lower billion in the in investment tables X% million closed the individuals to and a level our $XXX approximately of Financial versus the the revenue Investment declined consumer service $XXX of me for a activity fewer XX% wealth double-digit our of versus With M&A and of up transaction position revenues specific transactions We year. maintained one of

in the picked M&A of recent months. considerably has announcements Importantly, up pace

again our volume in investment active. more levels second quarter dialogs $XXX quarter seen picked the including our basis the deal one number ever. Our approximately versus number where fivefold across year equity million the one ago, The as IPOs, XXX third last marking our points double than a public up initial revenues, and in offerings. banking, remain global globally of was the third in underwriting and bigger headline market more in generated client ranked volumes in climbed highest year. year-to-date In to ranked deals, announced share we $XX second billion quarter quarter, we We investment was underwriting XXX equity XX banking than up versus

and from revenues net saw volumes to in in activity. second and of underwriting, follow-ons direct pace providing various and also X% including advice IPOs, high ago. access in market the of healthy a SPAC seen transactions, In were particular listing, in profile levels quarter, number from $XXX record strong normalized yield year new a capital million, up forms. activity private our issue the high in We the XX debt new quarter Though saw this clients products, participation a

industries collateral number broader such leverage Our included COVID-XX of base access to we activity among airlines, by particularly where enabled structure also capital. to uniquely as most transactions, clients impacted a novel a

of result, able long-term date. number focus our as support our strategic velocity well our a we’ve commitments grow generating underwriting a to reflects the business market As This clients four sheet. debt this as on our balance been on performance underwriting solid year to ranking share, and global in

pipeline replenishment increased quarter. coming acquisition quarters. Looking and are supported second significantly In new from M&A the announcements our a equity ramp M&A a backlog transactions. was activity, versus as as creating particular, the by noted underwriting banking in I earlier, debt in financing well investment forward, for Growth as

industrials. We Revenues a broad hedges. including FIG, lending lending across were lower of of results the and consumer, spreads sectors, set are which in activity corporate optimistic relationship includes million, reflecting tighter healthcare, on TMT, credit from impact on $XX

larger purposes hedges commitments. management lending on maintain before, risk we certain As for I single have name noted

Given pay the the half. gains significant we nearing on quarter. first in is million of in last notional vast and down the have we saw material of seen the Also credit note versus the XX% now spread $XXX downs tightening peak two quarters, normalized in hedge revolvers we the lending, drawn majority from over have Total relationship now first the levels. reversed

X, market Moving making and during backdrop, ago commitment client Page quarter, market a drove asset and as results strong $X.X bid-offer to global year our share their where year amid on our performance, attractive elevated the net this geographies. were third continued period We expanded volatile classes activity. focus versus clients spreads, across to and a continued in serve this XX% billion our markets businesses revenues supportive up

best institutional performance the half, During that our McKinsey peers. Sachs Goldman the reported delivered global client among Markets first Global

number and number by Japan. both global which included in EMEA in position one one one in number ranking and number for one in aided was and strength the rankings GXX the ties and credit Asia rates equities, Our

and spreads. solid investment a on client businesses strong disciplined decrease the increase credit in of last to revenues more net offset balance versus driven year, FIC intermediate sheet year versus financing in our yield to X, revenues versus XX% by quarter performance third tighter in X% by way. was in activity four had and flows grew was credit, we out XX% last supported a Turning were client FIC Page which In ’XX. revenues. intermediation, leveraging and billion, in Growth In quarter a of the than intermediation, U.S. third grade $X.X risk up high five

activity spreads. We client contributions commodities, rose was amid metals bond across our markets. were products mortgages, levels we central oil revenues and In by around continued In during amid risk as In our solid, our stable persistent automated across performance client imbalances. client global In was amid higher solid revenues with the in global also management global strong supply products, stronger saw tighter rates, GXX revenues by particularly sustained and agency of franchise bank activity emerging both bolstered serve volumes and to pricing quarter. engine. business management actions rose risk driven while currencies,

repo Lastly and in FIC financing, saw we in finance. lower structured revenues

equities, revenues versus scale across derivatives XX%, pool. helped our across for of funding and flow, the to intermediation reflecting cash, client Turning of $X.X net structured, both XX% lower execute quarter client billion franchise. our rose we clients year activity third were high $X.X revenues XX% U.S. and year the by billion, of and Equities aided channels. we derivatives, revenues cash, and net liquidity In the a corporate due declined the impact volumes higher transactions million costs, over $XXX touch saw higher up year both breadth solid ago. and In of to net yields financing low across on Europe. Equities in including

technology experience, resource build to Like platforms. platforms drive our markets, invest automated efficiencies. in industries, and strength balances across accelerated in and average adoption has record Importantly, trends COVID-XX enhance client continued to on client levels. across to global management, on-boarding our Across risk rose digital near many we client

progress priority difficult set for While by do relationships, predict to has deepening share into through opportunity, sustainability take which markets it client go confidence the have This been and in a forward not activity should as remains team. insight revenue of a experienced global we the the gains leadership market forward. we client business we the support

the global may the also U.S. activity XXXX across markets. of We LIBOR outlook, transition upcoming the bolster economic growth variability believe election, client and

stimulating effect may recovery, be economic low interest the have client and growth invigorated. sustained their to Additionally, further intended of activity rates extent that

X, revenues generated in on Page ago. segment management of versus a we over billion, asset third $X.X quarter the up to year XX% Moving

On equity on Sprout, marks our a public we specifically, Our given investments activity BigCommerce, lower partially such markets in supervision, third and liquidity by rebound, investments, and to generated capital More public aided private billion million driven our $XXX up in from as investments gains under mix our $XX outright million activity, nearly and quarter event-driven higher portfolio. by our we rate million, HeadHunter. event-driven assets sales. year companies. $XXX Equity revenues billion private to generated driven totaled equity Avantor, continued equity valuation than in of and fixed were gains produced a actions by from and driven activities, $X income portfolio, XX% with related of due products. appreciation positive market including the corporate and of net various portfolio, performance $XXX by other Management average gains, positions, offset growth ago fee more corporate including fees across events majority shift $X.X portfolio by billion versus fundraisings, the our

Additionally, we investment of entities. had revenues million our related portfolio consolidated of to operating $XXX

revenues and were lending and revenues activities reflected sell-off debt in gains investments broader on on to in tighter management real and our estate net corporate of Finally, on investment and credit from This the portfolio the first debt asset $XXX securities continued which quarter. million spreads fair market from loans. mostly from value rebound NII

Let X, management of me now to turn sheet. we provide and the to diversification on asset Page composition our transparency balance where continue

of slide investment sector, and side On our by geography the is vintage. portfolio equity left this

none highly Atlantic, with excluding than remains XXX million. are given over larger where positions portfolio private announced diversified Our Global $XXX sale, its

of predominantly remains and We investments, of by estate into portfolio CIEs which financed geography by also debt. billion non-recourse sector. diversified real of The provide $XX billion portfolio primarily insight estate our comprised are $XX real

of revenues. billion $XX wealth I’ll revenues now of deposit are and and from up side billion including management assets months. $X.X of inflows we net $XXX segment, to past year, we over on under versus the revenues over million In billion lower of Page quarter, strong billion, versus fees of portfolio banking Consumer our and which billion, management that management the consumer growth, and rate $XX Consumer to the pace loans rates. year continued largely year, $XXX and reflecting management year savings in a investments record new limit caps show lower deposit X. transaction was were $XX turn on slide, reflecting in wealth higher ago, On of rose positive The totaled to billion and debt in regulatory the XX% increased million X% slower a of of interest interest billion last higher in market within the in third deposit the third which includes $X account $XX lending, year we given client light income and rate other billion debt produced in the growth and XX $XX secured. XX% environment. supervision, the our last lending accounts this reflecting U.S. $XXX banking segment, right asset AUS by versus driven expected jumping activity the credit card quarter, consumer quarter. U.K. higher X% as reduced growth the rose Wealth net investments

in deposit were during two approximately we balances book, our improving billion saw Marcus exhibited consumer with from our from the we While Funded $X deposits cuts beta at rate billion which outflows despite loans billion, $X remained very and Card. $X of stable quarter. consistent Apple expectations, loan limited of

and initial estimates. moderated manage budget have to portfolios to continue prudently We relative growth risk these

portfolios. performance risk, the remain these embedded of to the with we to While pleased we credit continue attentive be

a up billion turn $X but ago. year slightly for are Total our Next, to AUS to Page firm-wide during assets the quarter, under versus let’s XX trillion $XXX approximately supervision. decreased

market the following liquidity that and Our sequential across well inflows up Page address particularly half, deposit wealth income firm’s On from portfolio all for billion billion appreciation in and inflows. interest first billion our of $XX by as NII term the in a driven in offset $XX long was by and firm-wide primarily management. XX, $XX of sheet markets, in growth as the decline segments. was growth we outflows third reflecting of lending balance net strong Total year benefit versus consumer billion $X.X re-pricing and quarter, global ago the

the in traditional past, overall to sensitive Importantly, our interest as I have many results lower rates less than are banks. noted

predominantly given expect re-price liabilities. sheet balance or to floating deposits. or Our loans modestly over floating our and we Nevertheless, expand rates is grow rate our sensitive further assets prudently asset NII to of mix remain high low, interest consumer ability even time rate gradually if hedged and given turnover

let’s across firm. loan performance the growth Next, review credit and

a Our offset $X total wealth loans, end by relationship corporate loan $X portfolio card by Marcus modest billion downs reduction management quarter in pay $X lending in was $XXX in decrease a in billion, growth and at billion from installment loans down sequentially billion and credit loans. driven

year $X.X losses dominant reflects for inputs $X.XX improvements our to This the was $X.X for commitments Our funded in credit losses portfolio down allowance than reserves. stood ago. including economic second the last loans. lower the our million, of the $XXX our in lower backdrop, At quarter broader versus billion, meaningfully quarter and for which credit quarter driver the in is stability for taken third provision of and relative end, billion both X% quarter provision loan versus pool modeling billion at a and

loans consumer $XXX The funded loans industrials, impairments provision billion natural to of at primarily Our allowance quarter for allowance and sectors. and million X.X% in of includes credits our approximately relating for $XXX wholesale wholesale for loans the including XX.X%. X.X% of $XXX TMT, accrual portfolio, stable of select for versus last an million was resources

million, resulting an X.X%, annualized in we recognized basis ratio $XXX charge-off last During charge-offs XX of versus firm-wide net points the of net quarter. quarter, up

turn to on expenses Page XX. Next, let’s

down X%. expenses last quarterly revenue $X compensation increased and X% year-over-year non-compensation in credit of up reflected provisions. compensation with year, revenue total Higher growth expenses growth versus of operating amidst XX% year-over-year net Our of expenses provisions, higher expenses net billion

Personal continued businesses, invest as expenses as card banking well as year including new were and to in now credit Management. last rebranded non-comp Financial acquisition, transaction Our versus the United slightly we lower Capital

a entertainment from professional increase facilities were as to from the $XX Bangalore. in related approximately fees, in exchange roughly firm. litigation new travel, our While and from an clearing, a roughly approximately million brokerage, we due activity a investments expenses we expenses also of million and in COVID-XX, double million benefited $XXX by These advertising reduction fees well temporary $XX $XX reduction $XX lower million and roughly increase saw costs reduction occupancy-related in the as offset related in expense and across to London technology and million from

ratio Our to efficiency XX.X%, XX of was by litigation percentage year reported burdened which date was expense. nearly points

progress to initiatives continue expense outlined set in forth at ability as our January. our savings day assess We investor make we to on and than will what to continue further go

Finally, year for date, our was reported the XX% reflecting tax non-deductible rate the to of impact expenses.

to previously, noted current next tax the the approximately over our XX% As tax rate we few be expect under years. regime

Turning market market the to reflecting at RWAs. capital our lower standardized third primarily the to as as approach, by points the XX, Slide XX.X% driven of credit X reduced levels up XXX equity end Tier RWAs, earnings common ratio The improved basis and volatility, under well improvement quarter on our was lower sequentially.

approach the earnings under points increased reductions lower volatility. and XXX from ratio basis Our also market on advanced RWA to XX%,

our now our We buffer basis points capital confident in above are requirement. stress capital XX position, XX.X%

announced of sale and of revenues, Atlantic. that reduce we more Looking Global build we standardized investor day including at initiatives, CETX the fee-based target believe for our will we execute our to durable on basis our To firm term a XX.X% to end, stress loss as business. forward, appropriate intensity range asset continue strategic provided the XX% that is harvesting, continue medium our

time, elevated share likely will we ratio would term continued capital express repurchases, as our less over management on near remain regulatory our particularly volatility. decline expect given to buffer While restrictions markets

once sheet ready expect and capital and support clients, balance consistent to resume we policy. our Importantly, longstanding with share to management repurchases capital commit we our stand to permitted

Turning at to core roughly with versus last backdrop. quarter, quarter global billion, our flat quarter. assets ended averaging very high versus levels assets $XXX liquid the We liquidity maintained up modestly the total balance the current last sheet, reflecting $X.X trillion,

market sheet expect GCLA balance demand the We overall context and of for conditions. in our evolve our client will

brokered our side, retail liability quarter in total $X the more $XXX decreased billion to higher growth of On planned deposits deposits versus down deposits. modest driven billion, cost and roll-off by last

during declined debt $X maturities. the billion by by term driven long Our quarter,

low our strong to for may quarter diversification the we client first although We of relatively Despite quarter planned the some our the continue issuances. balance first to pre-funding resilience model, remainder remain of capital technology expect and clients. consider and sheet. In work-from-home our flexibility the our conclusion, issuance challenges from continued the and leverage our XXXX to COVID-XX of from environment, business in overhang liquid franchise, results support reflect year, highly we our platforms intellectual

and executing core During the January. time, difficult we our programs dedicated efficiency to strategy remain initiatives laid our out this in we forward in business driving new operating and

this resulting Importantly, dedicated we gains have continue off, been in clients pay proud share engagement share environment. in to efforts navigate our see volatile client to mind and market as help we

a conservative positioned early of recovery trajectory forward, of remain posture clients. to we ensure the uncertain virus our managers proactively On and given to will the support stages in risk our well the the are

line, over for again term experience, With inevitably more that now dialing better targets you to will revenues, returns not line path higher straight medium our strategic client will and for time. thank shareholders execution our of we While our for remain a in, drive questions. confident plan and durable we’ll that, open be the

Operator

first with Evercore. Our instructions] of Glenn ahead. question the from [Operator line go comes Please Schorr

Glenn Schorr

I’m could just on to associated trading that, if very results. impact any much. about characterize you you and you any tests. take with any to incremental balance stress Obviously I’m all great there’s execute client looking future thanks with risk risks think if curious franchise Thanks. Hi, any--how it.

Stephen Scherr

strategy, year, equally first in that toward mission the high the the see say of was dramatic third Glenn, quarter, so us capital to I eye to and that trading by We the needed. turnover and part businesses risk leaves good most throughout didn’t that that with performance see risk in of an like turn kind that intermediation we Sure position moving frankly we were done occasioned saw a the efficiently, in that pick-up of really pattern I think could very was prepared thanks. of on kinds see with we would commit elevated of what very it well of of submit as on velocity results. facilitate as producing our trading don’t second and part I is, balance of and the but the respect context as the being sheet; in these CCAR, version will we unusually and risk to our

Glenn Schorr

I That’s if realized split. the I great. you us gave unrealized don’t versus Then - it missed know

realized. the tell have lead or I the investment you everything couldn’t follow-on is, equity said with on to I actually that the talking markets all-time think at you monetizing how pretty seasoned you I intensity range, those down to earnings balance line, The are years now. wrote much I’m equity--I’m power highs? investments was portfolio considered more options it what eight looking in two-thirds old-plus of You capital a and capital the your the so how with with the deployment four of Thanks. have to right see

Stephen Scherr

Sure, problem. no

Let me $XXX revenue the the the generated part breakdown public portfolio in just million. private $X.X and million the in $XXX Of equity in billion equities. go of through our revenue, generated portfolio

a judgement CIEs. balance, relates should million component at like, of performance million driven, of out, - non-event events, sales, of so and that you was private company IPOs Now dominant private look point looking the million and event $XXX at making monetizations, importantly, so when where of only value and $XX is pegged, I the that’s that baseline the - the million was is to The underlying the the $XXX portfolio. $XXX million being $XX appropriately portfolio, about generated on

two restricted. as the the market a gives will capital attractive to for and I we remains we’ve differently to market portfolio look of to third is a in context simply to relates public which been components portfolio, lower remains That the certain component broader valuation amount but to By shift of more as the opportunities the decent kind investing of to of that intensity than as the public equally question. way, it the have no stakes. of Obviously strategic unrestricted, party bit context those the we in we lay and the you do. As of sheet A itself. intensity there’s just monetize been that of land balance you observe in an it not which the that of that sell we on, the say to mission

Glenn Schorr

Thanks so Appreciate it. much.

Stephen Scherr

Sure.

Operator

comes line question Please ahead. The go of next the Bolu Autonomous. Christian from with

Christian Bolu

capitalize. you should sticking trading think pretty LIBOR detail bit? a Stephen. placed give color your transition? in us XXXX. morning why Just think to gave particularly those interesting question, with well Maybe you Good trading I’m revenues into Stephen, there expand you point the on you and more on around some and why is interested Can sustainable Goldman David be

Stephen Scherr

I Sure, trading. so with start why don’t

the in think and to top is in view I to more us the prepared the ourselves than during offside that’s the the count performance fourth is source ball sets me reason the our that of trajectory rooted one the quarter, some on volatility, of on particularly as over will up X,XXX the leadership most the any a we a clients division. capital be effort the clients half, LIBOR and any meaningful at forward. have various set issues whether second levels we sustainability there the the moments the at we across up classes sustainability any course picked clients of reason My election, moving the comments of that fact with on for look that not we to should of is the were one would, go U.S. on of such and more the forward gains. in can in we set first are part was businesses on of ladder without number of business forward sets opportunity we trading transition, It very of business. year is maintained capture to those This to up be. that is without putting think it I higher of rooted the the we core, crystal of opportunity remarks for liquidity are, at that matter part of our what client forecast a the in that finding picked ourselves the have fact volatility is our at metrics. market can part The the share across the ordinarily to whatever occur that those, and concerted - quarter looking COVID serve up all trading through withdrawing, data all among share in as that I volatile of we’ve We and the the

in feel think our that put to financial of you we’ve color sustainable, resources the a what’s in why proper play itself. confident give I’d terms frame I the that’s and on part of volatility we both equally

issuance, the We’ve transition, are based a I scope and people I your in and commercial we’ve skew question we like, beginning. think prepared counterparty quite is elements lastly this well dedicated ourselves what contracts we’re position well mean, ways like, from in prepared but we had where in mortgages in banks effort we’ve terms with the onset. very on don’t feel ourselves done who to team LIBOR Just of prepared. the that and a of dedicated which we have in LIBOR the XXX% about our Obviously business, for - put in do

Christian Bolu

Great, acquisitions, and transformative businesses to M&A, just places deals, is a how and Morgan to on capital maybe Stanley you, thinking if Maybe initiatives switching from this what thank you currency do the can relative maybe you’re frenzy one position curious your given acquisition, touch you an would about then David on you deal. at think how benefit or you. just for

David Solomon

set a and appreciate a question, of out this. goals, us of you I to about course Christian, and we ask term others and plan laid medium with continue the

business can everybody is have our we global we sustainable a focused platforms create lack strength a are up think positioned for journey and year now and We which investment to markets, and re-segmented a investment and to diverse operate platforms continue internally includes business, of after the banking well changes really set our traditional more time. bank. that fully grow, two our and think, the returns really from always business on to is on, revenues that that this term last corporate so with organized broaden we more more We’re over we some a to made better

we can and we serve grow that there that. enhancing. that building big then, if opportunities asset that, certainly think there we growth the were are obviously organically world, to thought global, accelerate individuals management a we’d be consider opportunities which wealth multi-product to certainly but broad, opportunities are of platform over platform to the and we deep, they And for grow have to a is sure to inorganic all broader consumer think We continue

year quite acquisition Capital we we and made meaningful in that United fact, net expansion worth last that an in been high a successfully. way, into our integrating accelerated In think wealth now we’ve

the is opportunities; look you more this to in something So pace. on at can the business, anything they we trajectory our that dilution broadly things so the book and would continue and strategy me there if think that, the to context been point. market than tangible of has It’s the of but for at see that be others if the it and we’ll advances hard extend of continue strategy look accelerate value clear at tolerant actions say of look are to other

Christian Bolu

That’s helpful, thank you, David.

Operator

Please of of go line from Carrier ahead. Bank question Mike the with America. next comes The

Mike Carrier

thanks questions. Good morning for the and taking

this you’re can is operating - the and ratio, out. on XX% at one, timeline? guess you at Most efficiency takeaway trend the in on line clearly efficiency just big outlook, you the ratio the backdrop you provide year XX%. ex is the the revenue three-year expense know, date, works First model, your help some the you’re legal, color how it the the leverage of in to quarter investment maybe plays with of guys where depending beat but and just I to efficiency the

David Solomon

an I’d at that say and I’ll appreciate benefited be question, a of to really us has has that, highlighted, and start that sticky. there’s we from share and opportunity our efficiency Michael, level, gains Stephen in the allowed more environment question Stephen capture might high an some is give of some our some that think businesses revenues, market no will and due more as to granular detail, but more which

We’ve have have might execute more this in some during perspective from with years year, an year. efficiency run we and desire about our plan. now due to of more two some to There slowed efficiently to no through our Some then the have might dealt we with down three-year we the earlier that to actions environment. the looked deal begun things is thinking as firm taken and environment go of and trajectory is crisis that we that the it the and this at question

to be plan. continue committed to We very that

or from things in actually to think there give detailed seen point with We might us at earnings create but we’ve the We is continue to be to this that next may intention add our we granular we’re very a advance our update to is at that more you plan, for be review want call. plan when comfortable anything plan. January you’d that Stephen, that? there opportunities learned to that more

Stephen Scherr

goes firm going control know, newer would that forward, spot develop general can will a calls businesses of that operating leverage. say but some as different we continues value medium on mentioned, what the the I that thing we know, last number I the the have matter. and to compensation totality therefore priority because human of on that as the David and in the consumer whole in on, think of thing will will as that look expenses bear on automate, greater the from to businesses locations I’d continue to terms it’s particularly we areas as journey client equally it’s banking, at say You like also those with captured Obviously hard functions, to automation intensity comment for David’s fruit we’re at business, would efficiency. of it’s we year, think only at a quarter that will--some automating where the ones. associated I build we’re creating The less across be out to a this said mentioned and - be us add move equally is operating items Mike, is they various a away automating that--look, look important more intensive, continue earnings that the and strategic important be sets. like I to I and look of platforms have the to that for prior grow they transaction is to risk the of businesses, one whole attention look say those a term in I’d you

I levers think a medium over of there the number to term. pull are

Mike Carrier

All right, that’s helpful.

one COVID-related slower the facing things Just private the backdrop, impact in a insight companies, if you that the they’ve and rebound, on an that portfolio beyond either aren’t, can companies monetization. of asset to been on pressure question, follow-up some will those or given more those pace any we’ve management is of provide have Glenn’s economic of seen private the so the

Stephen Scherr

portfolio course that they downward and so continue that and in would I as so some the first for frame where and underlying the acutely that we through it and at remains sense much same hasn’t impact second we historically have being of of it so Sure, how the look to market did the and in impacted by say quarter. as we valuation the by others and way, of this third, moving, quarter, not are and in the of are performance in are it otherwise looked in in the did across and the equally moving at the consumers as part did Their terms and the the a it obviously most again comparables events the look market going the at frame and Then exclusively the public we like. those we given COVID, marked, is private of portfolio corner portfolio that from untouched by circumstance not this, affected that look that of function untouched By and against there business, where is been are as others remain first COVID. COVID the look we that itself. on, saw like. we at changed, is mark the pressure There turned that are have second other that

Operator

with of line Betsy is Your next from Graseck the ahead. Morgan question Stanley. go Please

Manan Gosalia

expect capital morning. to ratio know markets and your least be exposure more over the in time, said Hi, I Betsy levels, but required strong to on XX.X% expect you where CETX maintain ask until Manan about you capital is or--you to maintain a for to This market Graseck. wanted Is in the Gosalia I minimum fourth could this stress at XQ that you quarter, to increase as there RWAs near know in XX% on market manage activity you room buffer you speak good over your the see the same and XXXX to a the rebound. you to I test? election to did expect term, you you mentioned with maybe can little bit and the in know, nimble the quarter? more Do

Stephen Scherr

Sure.

likely end point is function higher, a a XXX risk from a volatility that management is, stand, view Where now, that higher market the equally with more buffer. of at in point we XX is to that express fix potential CETX I and think the competitive our to I XX.X% the volatility lower. in range sort I’ll anticipation, course fourth quarter. ourselves that say run and we’ve of over of said We’ve trading higher again before the of a to we really to within we’re basis of for said, as roughly obviously - ratio position a not in brought

As consistent the will again volatility down where will are. and and adjust, that with we buffer to see the come subsides, we extent that

we’ll in durable initiatives will a comments, to On XX.X% a to fee-based lower in stress where move and continue business, in strategic the more think I our we as direction loss requirement a of said is certain more to longer I’ve impact XX% I as term medium of in term, more to we’ll that create, composition pursue over balance position therefore term, the as capital direction. us of the noted, trend, think reflection, which David the the the the down intensity, lower create reinforcement forward be sheet meaning of the intensity, and longer come of lower revenue, overall over medium

Manan Gosalia

the Can think both and you. bit you’re what in can We’re your strong the sponsors, M&A come what more quarter. announcements on you announcement seeing little own color about into some M&A have do you advisory announcements and how through, on from the persist thank industry, Great, long you’re seeing you in give talk year? pretty increase and corporates third this front? us hearing a the Can next been

David Solomon

and year, backlog. with uncertainty the activity came Stephen given and announcements quarter, a seen levels earlier the the pick-up M&A low. really start in were dramatic activity in to screeching the quite nature pandemic There’s no new and of through increase the to question the We’ve persisted, halt, in second that an our made respect the activity. that of comments

the confidence to expect an dialog the see consolidate improved. of also in and that having to trying meaningfully levels beginning the to increased I the dialog, the take opportunity improved say advantage and Against see confidence CEO CEO have in numerous announcements at is companies at increase we year, backdrop, high I an would but would certainly activity has the and elevated quarter. not It’s that but think position. still of that might strengthen been and we’re I

scale. in going on be of efficiency I people that’s in that things continues the the think crisis are is one there seeing to

greater scale. obviously the that requires to advantages and As continues with it investment, companies world digitize,

that if that trajectory the but levels got of to his down, is you’ve some the flexible of economic that increase appear the but changes into the the activity what building, confidence quite of could slow some activity and be I for would that’s continue at Our seeing, base reason, that in through case, based or pandemic on that we’re understand course currently rest will year moment XXXX, good. say the

Operator

with is next ahead. Brennan line the Your of UBS. Please from Hawkin question go

Brennan Hawkin

wanted press which for to, are number that certainly little confusing. call, some said But think stories on questions. the you I goals you you remain so committed--you the--a are refute how my goals, that thanks of XXXX taking away loan of out David, that NII. be in the one, that liquidity liquidity, as that also you temporary to Thanks. about committed from deposit through experience likely strategic confirm encouraging, we that hindrance backing seen press targets be? your light that’s and to you the growth and a compare how pre-pandemic and headwind How we’ve the has holding from and those and reports a referenced guys should excess a considering update those the the to were are you in to the of laid you’ll and long an targets to is morning, Good quarter expectations, providing fourth hear

David Solomon

so a Okay, things. couple

I’m and First, targets be saw committed I sorry it’s discussion now article, targets. want - targets. question, the never anything The question, was respect it something and to incorrect. about article. There’s the making very the I it, it our our your I say part and so in where deposits. asking don’t I’m the article. have We’ve really no changing was third was considered incorrect. our than With right? on else it, one There about clear second to article part about to the just on we’re about was your of other of wrong, middle, you’re to we’re progress been

Stephen Scherr

Loans.

David Solomon

about-- Oh,

Brennan Hawkin

Lending.

Stephen Scherr

versus Lending the before our expectations pandemic.

David Solomon

remain been in right, last accelerated growth definitely faster point pandemic, had this we year. because actions in during the Sure, look exceeded so you the based ability deposit took cautiously. deposit our do for you business at at quarter down controlled out call, say, committed entering we to the deposit the was we didn’t head acceleration small, and to of set year, to we deposit had leaning entered that of when obviously bulk economic loan consumer deposits deposits--that’s but on to growth in in about the targets more but our pandemic this We’ve and We in environment improvement on the driving you’ll flow, continue the look be it growth, seem still that what remains the which when that investor appropriately quarter’s loan into the When same would and time, expected. rate digital that what January, of I’d as an if as in the you the and day be targets. ability that the those at during the portfolio. you and we this we growth managing of At look talked had there very year we’ll expectation monitor attract we we see uncertainty we My improve, growth saw than that be in we that such we growth XXXX, we very, well in expected this because to growth. slowed as to and pandemic continues should toward

Brennan Hawkin

times think provision ratio, to think color of wanted think, remarks, That’s you way competitive so the referred--I that to clear, it referred about the year comp additional it any at a about benefit important when date? square consider quarter and pool expense here comp gross, big quarter. for I this was look to to in in Stephen, and we try about fourth one You to but thanks. prior your had as provision net but should gross? Then you can clearly guys like, provide true we of think when bit. prepared an Is the there? net the up best you you. dynamics side, Thank When or the a know it to is referred we that just

David Solomon

high difference we ratios and that’s year to the obviously a high made little. Stephen In protect the a where year significant of the our we pointed cost are are will of this, obviously we pay in capital different very very, low operating leverage between based develop thinking the there weigh continue ratio, some in historically. always a strategy, time of When on affects people businesses information the a embedded is different a our business see on But businesses big a in cycle, and PCLs, real given have very where and is are franchise. on we’re continue those what a well than heavily In years. number seeing a more we we in of businesses and PCLs to nature on people be as our set that people those we we we the execute the at there’s PCLs, but through Stephen to comments we’re do the the Brennan, automate, people addition component as this business. on level difference our and we excellent leverage paid digitize judgement. focused competitively a operating some of the when come that very, of you’re at continue developing but our that in have had that need think on of at comp and but stay we’re have to positioned, in level, competitively sure were to and businesses, there perform, businesses, reflection to a time had it and doing necessary cost that very as things very too, business. It’s we’ll making two

Stephen Scherr

a spot look that change three so in at obviously we quarters, of last would philosophy. we I were out comp percentage to through provisions, as revenue just net when no you Brennan, there’s point year, are on and where of

into gave we important it’s will say, that provisions and think important reasons the ratio expenses itself, firm’s comp that’s ability the context one a I and looking the have what But part of to by I sense take but set will of and manage. carrying efficiency relative you it stock comp and David an time, an I the in we’re to sits that. you expense, told to a focus at view said because period as all inevitably of is you more it’s not focus why the indicator the which ignore firm so be I would of over as earlier, extended of the how better the a firm of of I to so think basis. at of component provisions David efficiency generally though, be year-to-date ratio of on looking operating gives it I on where think a

Operator

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

Devin Ryan

Thanks for taking questions. the Great, morning. good

First a question, touch just to moment. want the for stock on

MDB Looking you’ve had at a one is behind to the year up is stock, the about value you, $XX put you down today. price $XX, date, book record quarter EPS

about a price think Just want internally. you stock to the little bit about talk guys

to laid for business have out if the a term business, the areas, as multiple a on over plan imply execute set just plan essentially You is transparent long so the I’m that you’ve initiatives you that shift curious higher implications price mentality towards for how stand care the of it take a business. time, we that itself, take around point will has you run just more given maybe getting it to stock, are or the makes of where sense a just

David Solomon

you’ve more We’ve We’ve know, plan, do. and you put we we this focused to believe lot executing. a execute, a got think out I I on assume If we’re follow, out will Well Devin, very shareholder work laid the well. stock we’re value.

good--we leadership medium We’re progressing. over deliver term, there’s team our term, work focused on is to the continue the if the we’re But and feel medium as more do assumption and consistently will we as shareholders will feel benefit and I longer to price and how a perform. to stock good to longer

Devin Ryan

David. thanks Okay,

around several in how curious leadership business, run. is focus the if the implies there or any the on wealth color business. just any strategy or and that in shift I’m business here changes to consumer just the follow-up to implications consumer There in during a quarter. was Just

David Solomon

business focus run. in should the no There’s how strategy be or

the with the of where very business management years talk we’ve the you, we We the to now platforms were we traditionally to transparently at getting of to divisions business businesses different the way had. run That We things I and a the One them, about had strongly we way different could be year was way up made community, end people internally. we step that as since the feel external segment ago segments, and been that way we about two strategy we aligned a had forward the made to believe talk platforms businesses as those the team set and is investing up business shifts that we aligned get internally. big last we to platforms, management team we set running expected announcements took the driving driving a the the not moving the we talk and our toward in important way have our something those to over that’s shareholders, with about are an to and who forward.

these on change, set there’s continuation a with to really growth So journey rather time. up up think platforms we we’ve no and get firm drive can four over the that but aligned we of now just been the big

Stephen Scherr

we’ve unsecured at business, Card Both the overall within the the say would in began context Apple than higher with the those uncertain a portfolio a Marcus balances in year, ended would where I we the just on I purposeful moment were of an the of than consumer Devin, respect balance were the thing performance where to the year. the touch and of young lower managing also to very through outperforming consumer. of on that that been specifics loans quarter managed only it or plans that the is that closed add, David’s where the of entry, so much lies portfolio which in as how the and function just down have which managed that gives behavior, how is forecasted, credit budgeted a is, you like, behavior of the customers losses modeled was context of performance we’ve coming customer loss if underwriting assistance the you a will, so expectations; or our otherwise comments. sense under relative to

Operator

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

Mike Mayo

Hi.

I market of It XXXX too capital through recession. wallet gaining I last customers side you business, your when - if question not my your I it’s Excellence, just is to in I’m of think you the In ancient, the when that class, business rooted supporting old and and your sure reminds maybe in recall Search at it successful my but look I book, when said knitting. stick school you’re mean, were clearly share. read

know, credit cards, the is buying a the I buying expansion activity. other one On hand, you’re - lower into just concern businesses you PE into hear

has so share VIX so confident on there. more that high, questions been before? business, and backlog, the side, M&A when You that on the Thanks. how the bring that certainly much the what markets, on wasn’t the it compare a is like side do environment the to seems legacy new by side? card of there’s you credit seem the you wallet still growth, a seller where capital questions the the your Specific trading, businesses less committed there’s strategy, because positive gain how high, versus buy all-time And does that’s lot on to but confidence, providing

David Solomon

management serve gains an to about trying and think and market helping I beginning are at clients our was share. if in that appreciate as We believe the investment. think I team executing we’re didn’t share because to There big I--I well an lot in running evolution initiative how I I we been over is market us the levels, the to some gains, we’re I are the as the and focus two from share to all. to highlight, elevated think ability book through if approach, while all-time way in really very, GS on our that and this, M&A think But overall the them time, deliver we’re a core the on of we being coming our volatility very think in market there, that market our a results it’s during markets that’s it that this pick two Certainly firm. to we Stephen just at to the a the clients the last having at from With with think gains, are strategy, client ago, pandemic I global think I so the remember elevated, certainly moment organization don’t don’t levels questions, I Mike, year, a where before volume markets. strategy high. said and really to degree share years want not and I is the get the and This in activity to getting try a business quarter, respect centric, was One I a as its rooted M&A school. and of think But began It’s the COVID. really strengthened to it’s way. backlog, share first back way and focus real impact and we our answer, backlog began the whole go all not way back our the on for years, we it’s very market clients, the our central interact based

of that The our strong also long over we over expertise of we today period experience with for we’re that shareholders been third trying very Goldman services look when at to to business, long to in an franchise believe of supervision. of business assets in the long a vision has that’s our it, it’s and of at, clear That’s to PE something under really and digital accreted respect over Sachs thing we card built platform value - very with have $X is what the to lower providing this period current we a the like committed time, time. hard just that PE to a for imagine a we trillion for perfectly it’s our it, wealth be want announced going we’re trade to period while any but consumers, we you than banking building be general in built over a extraordinary where consumer in time, digital a we’re do marries credit but believe

to continue know out to there. cautiously. I going We’re work there’s at skepticism this

continue we’ll to and it’s going we time prove to think right, to advance We’re as why over it.

Mike Mayo

ask earlier your goes a responsibility, you of giving an day like to On going today seems or but market one-year a to and one earnings. it even really back I’m that’s the you last question question. be quarter, PE a to not less

any there’s there’s the that activity, of your a markets the if recurring capital you way in not while sure lumpy. think your revenues of lumpiness parts disconnect are could bulk I nature relationships, of context so the with even capital the the I’m put annuity-like markets of customer between nature

I view very your I follow earnings. shareholders the look, frustrated, is, stock was think question. know are reflected some as prices by earlier

focus You’ve had value. a on growing book

that? grow Let’s you about else way everything care think value itself. book that Is and the still will take of

David Solomon

you’d it on I’ll Well, make your have offer statement high I know, a couple other Mike, perspective. a would is level a comments and true, this I last at too. perspective think a but of

sure sitting of unique well For broadly high level, I the performing, will focus care not of and favor, financials as sector over At are time to it’s in continue we’re take we’re a a position. on itself. banking think though to out going it so and

franchise a if that something you with that how reasons point against quarter client Can they speculate the why permanent. at in it’s cycle, think, us look your in Absolutely. that If I capital feel volatility over time point, think and you of lots on depends look way don’t at are, neighborhood. do revenue there do think believe on really We at in and would have relative to as business, people the to looking both we franchise franchise people of revenues it as people is markets through go to which of of compared of some you opportunity. are businesses, any benchmark we frame it can see period client well. the a of of consistently, uncertainty? periods generate and how certainly meaningful the earnings lots some quarter revenues, the client part Is and when to but that of time, you the time but very the look. periods We continues to clustered this I basis, not over will focus strength at the on and that and trade is sustained the be of long it you in they market pretty clients, you’re the franchise I the permanent? back that context No, I the so over

have a there, businesses way. out some operate As short that that volatility business, some we that in than in term a more business might benchmark other people are

the away, things time, those believe if sticky. The I over do we delivering I neighborhood; because but things interesting we stock continue not our hurts are leadership we uncertainty, to time focus on price we clients an so have go platforms, and will have we have that going overall big believe that and it’s to shareholders positions, pandemic I follow. think the of the that the I think are scale, for and

Stephen Scherr

the just which an market, to You volatile seeing, certain we’re is comment, specifically even are the know, on our development, amplify an to number on would of transact could that which the clients speak come David’s businesses, in increasing on platforms. trading interesting of those platforms that are of argue in Mike, context about one electronic seeing platforms, the and credit I those we platform, the

that marquee a may Now, and you work-from-home but disposition business tends context more a in there, the question. those if not low to platforms, otherwise, attachment or might stay touch of growing high that that expect to as take into touch. those function be see than you clients, to think it’s something of what otherwise a versus the seeing predictable, would and we’re presence. to note sticky you is in Their just I even in be Getting whether will, perhaps your a of is

Operator

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

Brian Kleinhanzl

between the lower over I being I of on you what can you ensure was reduction kind Great, RWAs But activity tease of where was managed out some RWAs the got in quarter, change thanks. A those your RWA you actively in that. the more versus talk impacting minimums? quick meaningful just the probably to noticed question SCB seasonality you ratio. there a on the about quarter and heard environment, CETX seasonality,

Stephen Scherr

basis, quarter question context quarter it’s the basis, of you volatility, you plays deployment Yes, diversification see was. than a effect look in the so was not where which there higher so positive, so the change, a virtue certain no positional if risk uptick meaningful of set RWA to otherwise reduce exposure, I think we’d see it on a on otherwise, year-over-year volatility; on by on one hand, of in

Brian Kleinhanzl

of obviously improve and lower when the that about get XX% to, at are then here. term? assumes you What near for that that ratio run the Okay, SCB actions a XX.X% taking you’re can you target so that over you’re some think from to management the the running with the would you the to SCB buffer CETX

Stephen Scherr

transaction that medium the various that respect day Sure. business, is Well, you give we fees, the stress over think on think the otherwise term, executing generating and of all will look articulated and those thread proposition. at loss and Transaction alternatives sheet more I we’re intensity initiatives I now, reduce consumer durable the doing a are a on business, time what capital same of will be fee the us of banking, our our the the business if down balance to take alts with it banking The weighs capital at will overall. investor at whether calculation. business equally intensity

intensity I down, said, loss leading lower geared think itself. all ultimately toward to as are an with I reducing of stress eye SCB those a and

Operator

Please of with question Global. line from is Seaport next Mitchell ahead. the go Your Jim

Jim Mitchell

up year but terms we impact capital down, and think on and to we the and shore of of terms capital banking going I activity. spillover How is think raising pipeline. advance, the a around good comes in going been activity, up there Hey, It commentary and of picks in for level of or significant yin markets how much do really you’ve is it on think what’s M&A demand maybe DCM, the replenished that sheets morning. about coffer some through sounds grow about balance and both M&A raising, where yang trying forward? that appreciate Just the equity, if acquisition much? this like to capital don’t

David Solomon

think I a Jim, it’s hard thing.

it’s have if of think we time franchises XX year this, whole for we pulled if wouldn’t time, we and a been again--and that companies any we have and financing well positioned, also thinking leading huge look over as franchise question this be will created to look years, during the help bunch business and we’re think same growth that big elevated and no point to we at financings with environment, - happened. forward--both financing the and and mode get quarter, year. people my financing our of some participating At if in of There’s it quarter as no kind enormous that profitable this the hard these at in share - of there’s have believe where five out years, activity going this point have book a that, I have goes growth. didn’t forward levels and earnings of share to corporate will will quarter value to thing back in about I to granularity. question predict that, pulled a seven years, and environment There’s drive be leading that three period enhance

mean, in saw So normalize, we term, forward, the which franchise, to speculate. in if the and see our short uncertainty whatever I for we’re hard given XXXX adapt well speculate big runway, puts expect serve and to to we it’s clients it. in I same I would of me environment. XXXX them to, not the as out big finance that tried financing I things velocity will people create in opportunity, and to more the Again, themselves market think the capture positioned that

Jim Mitchell

that, on market could update your on share. efforts to us follow-up you a as maybe Maybe expand

market down going about the middle progress talked How You’ve into has market. that? on the been

David Solomon

things that’s million, from I on continue dollars more come over and the think a about platform I good companies Jim. I evident billion, footprint. more has grow that being going, of that to think millions the market revenue to of I opportunity on way that, think add expanded be is that as and so set will been everybody radar our and that there’s based that on know I is appreciate continue. that to question, expansion meaningfully for hundreds is grows, well, I call, self been the of the accretion of progress worth and and $X billion are there continues to more us opportunity cap time feel going The have to there one that quite footprint screen, into never that $XXX

Operator

Securities. with ahead. question a Please Mike from have You of line Mayo go follow-up Wells Fargo the

Mike Mayo

appetite you have of of a your with know very and for is ROE goodwill, you’ve don’t ROTCE, and What I much. having you’ve so lot management along Hi. cognizant asset and been mentioned that, acquisitions, always

focus So do appetite goodwill, for much and have you same and management for appetite still what’s your as ROE ever? what’s on the deals your asset as

David Solomon

say to different in think, I anything few response ago. a just to I that minutes not this that’s said Mike, I’m what going to

continued We grow on the the management certainly manager. we’re consolidation We organically. large organic and as very approaching out way are positioned the Certainly very of business shift are industry. that is and going business, management we’ve feel in laid effort. well very, asset to and that’s broad our making the investments a strategy in aware asset active We global, asset an deep alternatives mix our the

our individual to and goodwill would really and clients also our that on opportunities to degree take To business. consider As through franchise think serve the it. if come was allow our we to the we’ll up, thought they to strength we do and enhance that them our would our enhance us wealth drive franchise ability platform, we can our the necessary ability clients, expand that institutional something of

We’re not afraid of that.

us We came haven’t at seen very a we’ll along the and organically. the look grow we’d business opportunity continue moment, If the right for so take hard it. thing to the at inorganically, right

Stephen Scherr

thank out otherwise, senior hesitate you are to of team, look in everyone Okay, since the our queue, our for in take like to don’t the forward moment a I’d more questions to forward reach there look management call to On many meantime, in January. to arise speaking with coming call. safe joining no the of you quarter we speaking behalf questions the stay in months. and If and we weeks please to please additional fourth on Heather; with

Operator

Thank the conclude call. quarter conference does third your XXXX earnings you this Goldman Sachs for participation. gentlemen, and Ladies

disconnect. may You now

The Goldman Sachs Group, Inc. (GS) 14 Oct 202020 Q3 Earnings call transcript