GS - Earnings call transcript Q1 2021 | The Goldman Sachs Group, Inc.

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Operator

Good morning. My name is Erica and I will be your conference facilitator today. I would like to welcome everyone to The Goldman Sachs First Quarter 2021 Earnings Conference Calls. This call is being recorded today, April 14, 2021. Thank you. Ms. your begin may you conference. Miner,

Heather Kennedy Miner

not will is Good on Investor most Head earnings without the Miner, CEO Executive and presentation, Goldman Investor we of Investor career host Relations bank Deputy Kennedy at will call morning. experience XX conference can served am of Officer, began Goldman found Today, quarter I Officer, as This credit Relations on years first GS Inc. Relations, www.gs.com. of Sachs. analyst. risk joined Carey the her Head duplicated, audio beginning Chief non-GAAP cast be our our earnings this copyrighted statements material firm’s in Solomon; Chairman of new Heather Welcome be measures and incoming role. Chief and appear Financial and website at forward-looking release This our our a and on Carey to our reference Goldman her presentation. Group, of Sachs as The page consent. brings David call. and which in Stephen may who No information rebroadcast or and the to earnings reproduced USA Treasurer by recently She Today, Sachs Scherr; Bank July. our at our Halio, is

appreciation of As to sincere the of management each asset our COO I for I business, the seat to your of years. this my to leave role partnership you want extend assume over

take He environment Stephen happy David. David? provide first update the their level discuss in quarter client then quarter a and review also now detail. high call of an start pass franchise. to David first today, operating will to will performance and and with questions the results call On our I’ll remarks. our on Stephen macroeconomic following the will our David be will your backdrop.

David Solomon

thank morning. everyone joining this for Thanks, Heather, us you and

of the begin I leading with of The to evident first effort decade. net to the continued billion. as and earnings strength on the Heather produced of my we net $XX.X franchise role. earnings me of a presentation X for in and our on and billion, of begin page of let record remarks, firm’s Before past results. breadth will equity Investor XX.X%, of four on $XX.XX, XX%, thank we record our return summary for quarter, financial the In delivered the client equity I tangible welcome over revenues of to be per share a a return a the years and quarterly highest Relations Carey $X.X

on strong while our Our create underwriting. We which platform. our reinforced valuable management, client continue in gains. PWM FICC And ultra-high further the best In in where a in net our across and leading markets our clients, business. and equities consumer range last to in public first efforts share to the investing the platform quarter. transition we strategic make our supportive We Wealth solid net franchise decade we our strength successful environment These global financial strength the we quarter also positions, by personal investments we progress sheet progress we continued third-party in more provide funds Consumer, to to digital across and gains the In across significant across delivered our global to our leading to raising performance management, harvest and with private market activity on-balance recognized asset equity M&A in operated assets, maintained business are the positions vision ongoing results driven for year’s in advice by a equity banking results priorities. evidenced worth our of continue execution towards and of we we strategies. during the scale making firm’s management underscore

consumers which response are launched offering, and we launch diversified in has digital been uptake and access since our with as on customer Invest quarter, positive, U.S., platform. investment the This Marcus investment focused scaling to we $X,XXX The little the portfolios a provides investment. as

We’re the also working towards Marcus of checking the in the and U.S. launch Invest digital in UK.

environment maintained let we evolving to With to we liquid X. now me a Importantly, amid our on backdrop. turn and highly an as resilient balance the that, market resources clients to deploy dynamic continue sheet, operating page support

saw recovery supported policies governments it this As monetary poised for of At which and to by strong the rebounding first year, that was in around a stage, macroeconomic is quarter, anticipated, consumer banks the spending that backdrop world. clear during the me to led U.S. central pre-COVID accommodative the improvement and this we Despite by the fiscal will the levels. that continued is progress hovering by in on bolstered U.S. will around and recovery undoubtedly of these we or developments, on This COVID-XX. sentiment capital economic evolve is much the reflected recent with data the U.S. markets operating growth. records and near global equities depend and recognize our positive forecast at economists’ that backdrop GDP the employment is

the recovery. of is U.S. of new underway to in globe, adds and potential the trajectory well While in challenged vaccines been around and a number economic other the the has of distribution countries variants the of rollout the the UK, concerns around prospect

markets. you to risks As remain we across expect, vigilant would

of increased are to being inherent stimulate actions stocks, We risks aware elevated the the of growth mindful across are volatility continued certain and levels in economy. certain in taken in inflationary name valuation classes, the single asset

while few other my from clients now views and me a important moment questions to Let stakeholders. also take fielding share topics, I’ve been a on

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management risk amount these governs robust financing of provide for portfolios. types have the we We that of

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mechanism SPACs, here we to to providing believe sponsors capital Next public innovation on is access that’s to an a formation for markets continue that stay.

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course, guidelines. regulatory to operate within we Of need the current

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coming as up an commercially Central sustainable steadfast remain attractive organization, We our utilize expertise all our purpose of capital topic our in sustainability. commitments to our is programs Another to to and our stakeholder conversations support and finance. in are stakeholders.

million, sustainability first which our proceeds at where of issued towards bond, advancing allocated the and $XXX we transition quarter, growth. the accelerating aimed we be initiatives climate will inclusive raised During

States. launched that in capital commit Women, and additional With which our million over and direct fund Black capital initiative invest managers, an an billion. billion GS’, for narrow will bringing the and the companies United to our the of total also investment to diversified proud opportunity we I’m gaps to in One black building million of, ‘Launch committed to Separately, philanthropic designed grants very $X program decade $XXX capacity through $XXX in $XX next the also women for firm Million We commitments

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Stephen Scherr

Thank and morning. you, good David

our me page X. summary begin Let with results on

in the all remained activity During particularly and of segments. equity meaningful clients in we In capital, regions, amid business firm’s products witnessed we elevated performance across high. to attractive the strategic harvested of active investments, management the investment In first client levels raising four particularly an reflected high our our banking, strength equity engagement M&A markets, quarter, positions gains dialogues. equity record In market. and strength performance remained in asset all attributable as across we as global was saw markets, private from very

scale our We consecutive consumer segment also our consumer capabilities the for and expand as our further wealth growth we third saw in offering. year-over-year management wealth double-digit and quarter revenue

billion up me to banking. banking quarterly revenues a rose increased let X, Investment revenues year of produced specific begin on on performance net transaction with XX% $X.X Turning $X.X versus billion page versus advisory in quarter. Financial record last investment closings of year business the XX% ago.

times XXX quarter in participated $XXX our billion investment over and we closest bigger $XXX a volume. competitor, transactions, of over one for deal maintained this as over approximately in XX all underwriting, climbing ago. again position $X.X ahead we to billion over billion equity initial equity Korea, table in our During deals, was quarter, the closed the companies roughly league across number in globally The billion Bumble we of and deals generated in of $XXX billion year banking with greater revenues record next Poland, than levels in where headline public announced one U.S. underwriting X We our in over $XX number InPost markets nearly the for including across volumes like Coupang offerings, ranked the XXX

new In million, in particularly including during We largely XX driven strong revenues increased experienced debt XX% than activity Our equity IPOs. and finance net quarter by products, follow-ons leveraged a in this and from the participation share transactions. in basis underwriting points underwriting, up activity year of market our improved growing ago, more SPAC $XXX strong quarter, asset-backed share driven transactions. levels, a were number by in

fees interest In at high. addition, significant lending as transaction lending, our backlog million, versus Notwithstanding on quarter with COVID, investment the on reflect modestly. growth levels, million from hedges sectors activity from sustained the corporate book. a replenishment record by were from our included down sequential the last hedges as offset relationship Revenues was banking including losses in hospitality of $XXX to in with Revenues relationships of transactions. maintained respect year, supported engagement by our and banking $XX by including quarter revenue quarter, realization airlines significant with and XX% gains ended as well tightened from underwriting M&A approximately spreads partially the net loan quarter of first income which impacted

Moving page to on global markets X.

versus were strength the broad-based year revenues the businesses ago, FICC exhibited $X.X a across first equities. both billion quarter, highest in since in Net franchise XX% Our and and up XXXX.

considerable from supportive client environment market-making During facilitated and a the quarter, benefited we activity.

X. Turning on page to FICC

management year-on-year performance and was by higher commodities, were products amid credit, in ago the on markets strong inventory rates, engagement, the as spreads, fiscal and particularly activity intermediation across solid and First from In continued bolstered up across revenues significantly, year by quarter healthy $X.X versus by year. last business management in the billion, and in strong revenues central XX% financing. in loans remained while residential actions, loan client bank driven market-making, diverging driven high engagement rose mortgages, volatile we In five issuance. healthy risk In a versus client back and grew experienced amid to versus and revenue benefited risk anticipated revenues in activity healthy levels client businesses and results a flows. its where In rose four revenues origination client as and management, mortgages year amid the revenues solid net out were improvement ago, business of during up robust of increase continues flows U.S. agency diversify primary quarter. a credit client demonstrated of XX% the

saw increasing to a pricing our activity trading. G-XX emerging bond engine year related engagement growing also activity fell electronic In volumes the currencies, though and in high a franchises. automated both versus We remained across client and due lower quarter strong revenues ago, markets to

as XX% market our we touch for we client flows as year-over-year. and aided strong intermediated over and solid reflecting channels, up a in as by volumes In in block and amid and to facilitated produced Equities decade, produced the XX%, Equities first levels, quarter. risk cash, deployed first and were saw the $X.X across low prime ago, flow a as versus year events scale derivatives, number and across sheet management. clients clients breadth balances a high record of our executed client derivatives, structure in the to Turning we business trades and client In supported the of revenues during of up risk for balance best global and record across franchise transactions net to we quarter cash billion, discipline. of the billion, results revenues clients $X.X rising both the Europe. elevated well were the and XX% we quarter. U.S. equities, revenues support financing grew $X.X net billion activity of Average intermediation our with volatility as

we As our continue risks to business, are grow we of consumed. inherent resources prime business that are well in the that aware liquidity the including and

the infrastructure risk Capital, David to risks the related importance Archegos losses involving potential noted, systems. our of avoided underscored we of the and as business While recent the and control situation corresponding events

to global predict markets, expectations remains activity. it for As client difficult to forward

pace While believe to of the particularly economic continue quarter we to client persist emerging of of the levels bank the year, the do support necessarily recovery, activity. first central for expect balance the trajectory policies, the current markets, diverging primary activity and of in high not issuance, elevated we in could

Our of markets gains, on and enhance the ongoing of in the and client year share generated confidence investment through rests market drive deepening relationships, platforms experience last largely a on foreword client global to efficiencies. our technology

previously, improved profile the opportunity. noted progress the independent has of this the structural wallet we’ve As return business, of

average our $XXX revenues on asset to activity million. $X.X equity a investments now seven. More on year Management by ago related as portfolio, million, $XX appreciation event-driven gains we billion a such waivers totaled generated sales of assets net equity public marks versus raises. billion on or quarter, driven versus had across public $XXX money investments of produced to In private capital roughly $X billion. strong specifically, portfolio, gains, market ago, lower were including and first fees quarter. Incentive page we and our year in up Moving partially Equity our X% of offset record fees other $X.X the of under fee funds. million by management supervision, higher

This of generated billion quantum reflects and $XX quarter, portfolio moderate by portfolio in Across of the two positions, capital IPOs Despite over conditions. decline attractive the we appreciation. portfolio equity we of impacts the in our and driven market fundraisings, the underlying quarter, disposed of than positions, gains private nearly outright of relating public market given including the to events were our activities thirds book, from $X.X more in the billion our private sold positions which of sales. market size of various companies, billion $X.X more

we Additionally, million $X.X dispositions closed of assets bringing with to in sales entities. Investor our consolidated or had We on investment billion. revenues private since portfolio those billion There operating announced of XXXX assets. capital associated of $X.X is an total our to $X.X $XXX of quarter, related private the billion implied of the Day

of have $X methodology, earnings our by our driven these we we as on on constraints asset to and increased consideration. I which regulatory our XXXX call, nearly mentioned equity various Additionally, incremental management CCAR a asset was takes capital line into of dynamic result billion change This test. actions, of as January sight stress sales. Despite the attributed attribution

continued produce attributed on forward, in meaningful equity a reduction. the a positions impact sheet On more reduction balance will

track XXXX. market consistent our on ongoing Day our sales. have harvesting achieve to to valuations we migrating net investing, Investor versus remain of what of investment our The portfolio accelerated strategy by we our Importantly, attractive third-party some is consistent our segment XXXX reduction billion business and sheet to at $XX in with on-balance presented below with capital,

firm. continue said, activity That from at We are now, in such will to accretive forward dispositions it as attractive capital diminish would to gains levels the sales keen quarters. be

impact income years the We are realize offset of increasing working mindful funds formed and to fee alternative to subsequent as and of look that the we trade-off being invested. from number revenue in are

revenues on our and modestly net on of lending investments. management, $XXX from activities NII were gains tighter corporate securities revenues estate portfolio debt million asset on investment in and credit reflected loans. This fair and value and debt from Finally, spreads real

consistent asset page to provided the show to balance the we’ve information we composition turn that of now me with prior sheet, Let X, where management you quarters. in our

loans highly portfolios CIE also is diversified vintage, sector, segment remain debt portfolio equity by and diversified our largely and secured. in with investment the and geography Our

wealth the last and other a management supervision, card $X.X under billion last ago. assets grew to higher to the deposit Consumer in in Moving and loans produced million quarter, XX% to versus XX% fees rose page which versus banking year, X, reflecting versus revenues first rose billion first quarter, $XXX year, up credit revenues XX% Management XX% growth. billion. reflecting and of of year up consumer $X.X $XXX higher

and increase $XX let’s to long-term increase our over year AUS quarter, Next, other $XXX was and firm-wide and $XX ago. up $X.X billion of billion the billion trillion versus a sequential page for turn fees. XX firm-wide The inflows. a supervision, inflows under liquidity by record of assets to Total during $XX billion driven management of

other funding the segments. firm-wide Our quarter billion. by lending for and XX, first address versus year-ago, interest On lower NII total income the quarter, across net XXXX we higher to assets and Total firm-wide of versus management $X.X reflecting our all earning fees portfolio interest and page grew billion costs. first an XX% increase in $X.X was

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

by and reduction by the our portfolio loan This In related acquisition improvements reflected driven of credit estate $X approximately a $XX of driven growth, $XXX first year-end. $XXX was quarter-end a sequentially, backdrop partnership quarter, General wealth to million. credit and million launch expected benefit as includes to part offset provision reserve the lending. total up economic receivables net partially expectations, in Motors residential loss Our including for losses card the management loan billion, in broader by billion of warehouse real by pending provisions portfolio with at

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

expenses operating $X.X total billion. Our were quarterly

our transaction-based year, last up increase as offset of a were was savings. in the focused litigation, strong XX.X%, in in expense compensation continue opportunities We as for While expenses discipline last entertainment operating first our culture, expenses from largely evaluate to quarter travel by performance performance. revenues our business. to net the in related further to investment Overall, Non-compensation our only decline our and expenses X% provisions was lower efficiency where expense and expense of leverage XX% pay technology for reflecting reflecting XX% on expenses, to well for versus increased, our as remain compensation well the quarter ratio initiatives fell we and of as consolidated a as ratio in year, entities. additional

reflecting Our compensation approximately impact million. rate the quarter equity-based effective of tax of the $XXX primarily XX%, in was

As noted our expect the note previously, federal made approximately we regime under the current to impact U.S. being various rate the tax tax should we of that on I XX%. the proposals in monitor continue be to and state level.

capital Turning XX. on levels to our slide

Our the XX The X lending of sequentially. by common equity was under Tier quarter as ratio approach, XX.X% standardized RWAs higher points we market first end the was at the basis increased and down decline driven offset earnings. $XXX including by stepped into of we a returned dividends. repurchases partially million billion common in clients, common total shareholders, billion stock stock $X.X to serve quarter, of In approximately $X.XX and the strong

per value book $XXX.XX. share record Our rose a to

quarter, dividend continue increases, Reserve dividend the as to plans to repurchase the repurchases levels and the we’ll the to permitted. quarter. share place the expect limitations extended first second nonetheless And evaluate an increase While we in has on our the close in Federal of

the activity. We nearly sheet, $X.X maintained we billion. XX% liquidity global higher balance averaging as supported the core assets, last at liquid to levels Turning assets total ended $XXX with our quarter versus high trillion, client quarter

quarter. total deposits our liability last surpassed Notably the side, up to $XXX billion $XXX quarter. during $XX rose the versus consumer billion On billion deposits

execution particularly driven modestly our expect reflect franchise. first entities, billion and conclusion, experience, strategic line issuance, will to open more outside the year. client results benchmark we drive now benchmark bank With the due balance our we’ll for billion, higher issuances our be $X better remain business, strong prime client accretive by We sheet than our deployment returns now continue by in confident rose of questions. of and of that and strength debt opportunities priorities for In growth this diversification up shareholders. maturities the redemptions revenues that, to to a quarter our of durable $XX in long-term Our given

Operator

Schorr from Evercore comes Instructions] with [Operator first Glenn Your ISI. question

Glenn Schorr

Hi. like The I you on have comments I Thanks talk or the book I every older much. or I does think. all sight those it -- of freed the now, capital and don’t vintages, sales on sales. which the good, of book sales is the lot maybe investment looks the looks you came very equity $X slow of had from $X appreciate know year? a But raise process? on that for up Maybe but remember capital your question the most pipeline number, is that or mentioned about with of those younger, billion could the associated the for capital remainder be more. of much third-party billion, the I how with line monetization you six how years would some

Stephen Scherr

for Sure, Glenn. the question. Thanks

of produced AE balance noted And numbers, the so billion. producing relief $XXX me That sheet about Investor let about relief. go sheet all set. of through So, closed totaling prepared of since we’ve well. Day, balance positions I as disposed level million the we’re just $X.X billion remarks, In in quarter, our we on as the reduction, $X.X $X.X of billion about

capital about $X view billion relief I AE is that in billion of would My be In of would of view there. probably said, a of excess associated sight, the into to that reduction. terms sheet balance I attachment billion $X have of line about $X.X say we well close in terms $X as billion, with

the vintage market, and particularly only vintage across regardless hold it’s in we’re I would that profile the of in this capital business strategically. components pursuit firm going density reduced and of holds strategy important of reduces be it third-party that opportunities, in portfolio, to of capital context the pursuing course two recognize advance. the promise in that equally look the we’re what the of so trying to otherwise, and to that think achieve to It’s of of not to overall, funds, but migrating the more strategy, As to required of to the

that at through look we what in XXXX, billion. raised noted that deployment fees on the and of that and we of just extending fundraising. we’re to get about question the approximating fundraising, that you of it obviously $XX Taking are that If your of paid had where remember deploy on terms we’ve up funds looking you’ll north just through billion done, last part now investment first $XX management quarter, and

And this of to real. quite year so, the is of we’re going what ambition roster do

in confident fees I is that, positions management take it. obviously context what harvest will for And all in of space. grow was achieve we We’re see part is ability meeting talking in and of the this and alternative that the which see deploy we as of revenue our parcel now compensation as the about, capital will, and in, if we to you

Glenn Schorr

I a color. definitely about. follow-up, quickly Maybe quick that appreciate just that Thank that composition talked of pipeline you you. on all

remarks good, I pipeline think, current underwriting my is a I how on darn question guess, dependent little that that we for of heard actually more on is SPAC indigestion pipeline. that in fulfillment that I here is your is, not but this also. Just have? looking pretty color bad getting of fulfillment M&A past

Stephen Scherr

the level levels, segment, backlog Well, is at replenishment backlog, as at investment recognition would revenue record noted we’re nonetheless certainly if the say that seeing look notwithstanding I of I extraordinarily high overall high banking levels. our you which at very in

of sort will, our are the really of that’s engaged terms what doing. in forward, in you if clients best so, And picture

the there on markets, it for think, to I relates, forward, global say. difficult as to example, it’s

set know last the just third versus be. it’s opportunity be challenging, in hard of volatility this will noted David comment second comparative I the did The given market to year results, the year quarters. as quarter and in those what As will saw last well, we and

investment markets, capture results share. we’re lies on share markets. equity across think, of that banking, market and I confidence have of in both across in we presented. up we And or global our opportunity fair advisory taking will financial the market terms of And rely share of picked the sustainability our capital in set kind to better

Operator

Your the Autonomous. line next Bolu of from question with comes Christian

Christian Bolu

trading, the be gains And any in then, David seems the like a know April David bit I’m there’s feels my the move and in talked really role, the terms trading the up She’s And to issue as sustainability is morning, year, share specifics? truly the EBITDA’s just here first, just market trends guess, -- will both I on just market bit to curious what is the have around me what quarter one exactly the actually accelerating said more gains exceptional been summer. or It in questions, Heather. in echo share on sentiments IR on last like I you about first if are you trading. you are driving businesses, of missed. sorely And color in let on slowing just little but Good and more just Stephen. so a into gains. over the it follow On

So, just of the you for around year? any sort the rest strength what think of support will thoughts

David Solomon

thanks So start I’ll and question. Christian, for the

you us, at look First, I’ll focused way But years more been some and high the of the very then start Stephen last is give things will their we’re clients on at business really granular holistically, a data. one and needs level, how experience probably high look over see to of level at serving at it a trying X.X we’ve the centricity holistically. the client our

that. giving think has all of And to the share I in contributing service that things gains. feel the One that a You’ve they’re been there’s I’m change of to culture reach they client market for mantra, organization the our meaningfully our to ability And like GS meaningful better heard to together our with hearing that clients, the coordination that bringing talk that centricity, them, clients, out getting, or from client as consistently them is clients. contributed about on kind one -- spend resources we’re us the meaningfully, and time I of whole bring focus broad deliver getting, is

to top and to progress that That year, making we’ve we against accounts, being put know against progress is last at talked those looking the about accounts we forward it gave further global progress markets. XXX and year. you X this our on continue data made top last a track. we’re committed quarter You KPI accounts. in We those We

also And so, that an I on impact this. think has

generated. In the activity market addition you then obviously that’s have

relatively we the activity. against On was fiscal say from to that should in script said the shares the to quarter continue what the levels forward, environment, say it the get looking what quarter. But, quarter, a be that say should and continue was don’t the we would second meaningful and I economic to a those amount. an the saw continues with I that market so, think the constructive question activity by the gains background. don’t through was kind that in quarter. to fourth for paint elevated I third be be monetary of of will we pace a continue your pace activity pre-COVID first I’d think stimulus, And expectation activity benefit at I level I extraordinary that first activity addition expectation respect that and recovery, at the But as And second the will think in quarter quarter.

Stephen Scherr

pivot was which reflection to client just or -- you product the I’ll our speaking off that to. Christian, and comments, So, a of of give a all David to of David’s centricity

to basis of to XXXX last across seeing clear for picked in contributed very to of noted moment. when in record a in the X in share as been about then markets, the just among strategy pursuing, think FICC FICC, points banks consolidation patch. had I’ll are We we U.S., on up global we’ve And equity of markets, businesses take prime which one. that and the number over all, First and among -- I uptick share across saw XXX the just of that equities of levels the meaningful Even part noted in look my call, at I of we’re pivot across you had I the in course wallet comments, that prime levels, global financing. individual a business elevated a we discrete

the of in away pivoted if sort and interesting and now market-making from look straight thing you financing at mortgages, now of is business itself of is origination. is First this engaged all loan about mortgages sort that

you has more look have both doing grown the you of what of And we’re more expanding the has of signature, grown market the development if if we’ve picked loans, context in is think engagement of and a will, kind in platforms. so clients the say, has to business. I just which is share, that would quite been of for been And contributor and credit, last then cash client example what credit in And thing then, good the up mortgage portfolio And we I a enhanced the that done considerably. meaningful doing. in like at share, has trading where that, space

it in place high. quite is Our

all, client is clients they platforms example. execute and with and good it’s where saying, centricity as And so, a again David engagement care to clients meeting being

Christian Bolu

certainly -- set Maybe that shifting set I’d of and versus argue XXXX. are you thinking expenses much the to you? when I’m targets much Day opportunities businesses just today I your on the you how much than wondering expense looking path expense than targets along about are some Investor those bigger today ahead all for revenue on in across capitalizing mean, out early those you’re expense opportunity at pretty forward. when continuing of management so bigger that

Stephen Scherr

Sure.

would I way is about the think the So expenses following.

of expense I’ll expenses so which to to. global to more X%; on our transaction-based expense we up BC&E within that markets our X%. elevated saying a ex that spend. base. literally broadly, But very come Day, up laid non-comp that, I’m was out totality the non-comp the litigation, related there technology relating and no at the controlling our And in of that as all of reported, expenses, efficiencies doubt were should expense we keen be in levels focus Investor independent increase have on in First

the is carry and And clients, we’re the where meeting market continue expect will fluctuate, is forward, opportunity so, market where that to where there. us will expense on should I our transaction you activity think high, that large, variable with consistent

did that of is we And independent Birmingham. it footprint second the that offices all to real of including comment our announced as there we estate on the just Hyderabad. progress Again, of non-comp initiative. on relates areas $X.X make continue billion we up expense had focus The I’ll We we’re to about, opening as day-to-day expense. in talked the just that in piece

piece of The that achieve trying we’re is last the component a is that leverage compensation. what of All expenses. with in of say piece billion $X.X I’d the operating to exists

we times, performance. many many, said pay for we’ve As

And extent kind always so, down that seen see quarter. we’ve relative turn of as available this to and to otherwise lever to in revenue we is performance the the us

Operator

Research. with next comes Chubak from Your the question line Wolfe Steven of

Steven Chubak

I to with question start capital. So, a on wanted

the gains, the your you’re to And as inform And that be are SLR management investment on potentially just going not Now, how does trajectory as the comfortable on you Fed risk-based priorities? on where running then decision to where speak clearly impacted prospect binding. of SLR RWA a equity of being ratios like sense sales? well, some to Since you thinking execute by just give as you could to maybe the the if measure? some how capital prime planned just relief, you’re continue extend about to areas noted us

Stephen Scherr

Sure.

constraint on us. stand to to bank. is So, the be be don’t a at us, to first X% at and of We holdco clear, constraint minimums the not find than on X% a has been the both clear higher it. just binding is not and just Obviously, SLR, binding that that to about be

growth say sheet us. issue ample would for levels, to have that of I on that growth we so, comes both And an balance horizon terms before the as at in capacity being

that So SLR, issue not for is the of some banks. other it commercial the

commensurate of of as you disciplined be, growth. notwithstanding calibration out is risk terms nature The to that I unchanged. RWA you’ll there. In thing think expect growth, it that to as that see I risk It is level one activity would point the and that’s remains do and RWA control with want

that about, to that’s opportunity, if firm growth in this presented the look to at say, input David’s you has but you and set so flank the Steve, with balance sheet, risk-weighted look balance protect our the clients firm. been of in the resource the as been the this risk maintained to at service in opportunity we levels as talking without of extend growth the I find. So, would mean, assets sheet commensurate compromise on causes I risk that us of grow is that and thing been kind the to

We’re deal and our where GCLA with billion. $XXX quite and liquidity clients. in we and feel resource David elevated spoke comfortable of Marry experiencing RWA we’re point by within a We but obviously sort engage in a capital alongside growth sitting controls an minimums an -- offensive and it of view. the two risk of sit, the ample north from in prepared checked with with those position, keeping at sit risk of and about, points that levels to buffer mode elevated control

Steven Chubak

I actually rate actually this my on made XXXX X two guess it and IB $X conference has IB billion business share to really pool noting been to given I the just guess, industry above for levels, normalize to a trading I just that for of a us both billion. calls. like ways than X earlier revenues, should those you just does should at run trading which billion of more remarks quarter in fee normalization. for follow-up, higher just know And incumbent factors question, target this feel growth recent support number alone a compares asked different of as and and David, follow-up to But Christian’s pace on you gains David, some and a sheer

that and IB given improved penetration? relative north well trading maybe you the expectation, was you you’re revenue progress. higher hoping speak the a the around I like and businesses So, ability to seeing Day clearly to of growth drive that sheer of do trends those outlined could that is the deepened underlying just at in to rate on as if side incumbent the targets, billion client and confidence Investor the your feel appear in of quite X targets conservative, better reasonable some given the you as level run

David Solomon

that how long-term to think broadly, look do. business but So the you’ve got growth about market you in in always cap question, over led our to time. appreciate we and similar way talked it about We’ve has Steve, periods growth this a at of long I long-term

our there of your set growth I think, going I think at medium-term expectations on numbers, that variety a we to reasonable that. I’m in supported as I specifically meet us targets core we’re of seeing comment numbers set to and are out think very businesses, Investor your that things that Day. our some for has not structural point although you

So extremely Day. start of our medium-term our am targets ability by at I’ll we meet confident Investor to set that I saying

But aspirations. forward. how that Day moves than longer-term not that come franchises Investor for the drive ability as over opportunities expectations continues pandemic, to about clearer at the out said the do see as out you our more evolve, we’ll long market clarity we as sets on is drive also world forward of targets communication we the have the to franchise And We we what Investor our we forward, as longer-term are. our I reiterate pre-pandemic term current our the to did and Day, at drive now, higher returns medium-term give

Operator

Mike Bank from line with question America. of the comes of next Your Carrier

Mike Carrier

question bigger one. last on just that, that following a picture on First,

things of that growth of seen level In some terms time. a the in the for of banking, of the haven’t seeing GDP terms in we’re we this trading sustainability very of long forecasts and

of historical that risks wanted just more higher then, your something one can get I you’re So, mentioned on the activity? drive that compares you how as cycle David, perspective to this inflation or think and monitoring. And

in impact guess, up, where expect we’re an activity that you how do levels? ramp if I that So, just environment to starts to

David Solomon

Sure.

business levels the activity And if have GDP Mike. question, perspective, no there’s the around appreciate world. in robust broader a I So, and at correlated to historical been growth question, you growth look our

the economic of activity. in fiscal all and continue banks they as we our watching of world that central the actions, I’d that And increasing and no have in did very of accelerate, in expect is that we a pandemic. demand. than into remarks, pent-up half There’s all we backdrop from robust there’s economic the very, pandemic, There’s look as around business. carefully higher we’re inflationary an meaningful We as and there going move risk question, the reasonable are no of and economic growth very going clearly, XXXX quite monetary that And comments activity for have forward. question consumer forward. given that is constructive Consumers out to come the XXXX vaccines that savings liquidity activity pickup said think second to as I prepared so, we into state we the that

have is that create actions pandemic. in how would in it’s think year to early distribution on the question inflation. for and a respond we speculate. look that of think watch see markets risk early very where I we as business. -- we that. to there more The much, how that we opinion, would quickly, see my it is to it’s to is I there how accelerate through we’ll the question closely. near-term that don’t our and But a continue no in quickly, I and increase this would I an will do it’s more And scenario have for the think come as continue obvious headwinds But issue to out to horizon be taken very

Mike Carrier

question. business Stephen, just a quick one follow-up the on asset management following Glenn’s

the fees the bit fees, a Just were management lower. sequentially

raised money I versus capital? much on How committed how are alternative mentioned fund-raising, the deployed capital you think that? And being do fee waivers. fees was you then of generate market on that funds significant the

Stephen Scherr

Yes.

common comment, the bear mind, million practice, as approximately throughout waivers. market on So, $XXX was in very it in money the know, you fee industry. And

So, that. nothing unusual about

are On beginning. we’ll capital the that investable alternatives on deployment the space, already in that’s the take management fees of

the charts it’s at of more where of assets Particularly firm, one these management that. sits, start we more. across but strategic the a whole alternative of segment that you share my looks pivot. whole I that deployed, of so, funds to is we in across note that to mind the and see to And other which under generated management on never disclose fee and fees, by about you’ll it the slide the firm-wide continue as become with this ambition supervision can which business, firm-wide how show, much being is the did

Operator

comes line with the Morgan Graseck Stanley. Betsy of Your from next question

Betsy Graseck

the Two questions, backlog. the first one is on

prior right the is now? like think just trying that I at your peak the backlog You is what’s I’m levels. indicated understand running you But, much multiple of that backlog how mentioned the to historic --

Stephen Scherr

I’d is would certainly to that Yes. and it’s it’s record. record was give but sort range in where cutting composition across look set, of go a prior which have I’ll you bit at businesses. it, say at that the back little a I of of a

and are size we in bear the Americas quite backlog EMEA the replenishment in mind, is in Asia significant. in higher-than-normal in of But build the seeing than Americas. overall and We’re business

notional multiple it’s historically. as geographic memory, So, prior higher higher had peak. some a To showing would but my it composition. to been of be dollars that I than number I probably wouldn’t top view it call there, would XX% where the as

Betsy Graseck

that that And separately, dividend then think a you of the about a payout people that should revenue volatility color. that’s ratio lower, you in you that we the if could. but Okay. about, be of should us thinking about Could pieces at soon give a to as you’re when what to estimated can thinking have, Typically, Because dividend guessing in some sizing about give to dividend would I’m earnings. metric we’re comment raise thinking the take to higher, us some as maybe and estimates. you we keying look the is? to us as I you the sense mentioned sense where you as give relative how some forward Steve, our look be pieces on

Stephen Scherr

Yes.

where all has quite our a been already where that of our say ambition and that want don’t competitive of would raised I So our to the By historically. since in is it on the But more dividend the John dividend David rules to seats. up exact sort path, is dividend having when take sat perhaps ambition we’ll and considerably standing be, aspiration put than the I took permit. peg we’ve and way, the I to the

about And higher so, we it of thereabout XX% took to or up tenure, and beginning since. our memory, my at the

dividend commensurate I increasing durability to grow think, business. in here with is revenues of the the ambition the have an

to As that, ought revenue businesses the and durable more will. streams and grow, it dividend or reflect businesses the

I that And can provide. of probably dividend best sort thinking on forward so, the that’s view

Operator

Fargo line question next from Mike Securities. Mayo the comes with of Wells Our

Mike Mayo

just maybe -- gains, it looks market give on more you category. like color but Can by different share

you with were could So, middle of of effort. would of be I client. be market couple category behind versus and years this ago, is A category that corporates. how a doing? have that others. know one A corporate Was second the expansion you size kind record,

catch to And geographic. up. trying a be category were would You third

go-forward a mentioned first look and You quarter. as EMEA basis, but on we just Asia the at

Stephen Scherr

down this. break but I we as just color as way, exactly much So, that don’t backlog the on me let can provide

banking of in around frankly the First that revenue continues in all taken and to market, that in, client thought we’ve the has And otherwise investment growth achieve the Investor set beyond grow. the been we quite I that middle we the Day. which substantial, would think at in

in Americas has that’s and the clients, and global larger our to clients global among we most it banking, on relates And among do. of side, It’s as see us of what in global double-digit say corporate And and the up in investment you in to focus before. backlog X our kind the On client have there larger you broadly. But again, in broadly. a Asia. David XXX which we from much a terms more it markets, year corporate continue about see been growth markets. we’ve in back around we the clients EMEA our presents spoken playing in ambition prolific of we’re more the refer as geography, top seen as to prolific in mentioned and XX in in then, I set made the top can the to revenues always well. XX a comment Americas put is I’d equally, of growth before, would those the centricity context becoming banking segment market before, investment I also set out play in

say, continue European range all competitors And to taking. across relative in FICC. equities in backdrop banks we’re among is see of in I to By of so, the a consolidation U.S. areas way, against this we the and in share, the the growth share product would

Mike Mayo

balances. prime mentioned you And record

after incident, something place? you’d So, or and fund players else you, recent players effect is hedge the with some a see taking there retreating, have do coming you to flight-to-quality

Stephen Scherr

from I think clients judge to were too that be too shift. mean, to be that but significant migrate it’s to where I to there’ll there’ll certain a I firm, that. judge whether early suspect different they a look it’s early

we grow like. thing I by-product as note of referring And David the as has that’s nature that we think, in quite incident continue a We vigilant of concentration. is to maintain business. relates recognize the to important or to, for was and prime a growth not embedded is risk this the to We that, strategic Archegos consumptive what of been posture It’s the in risk it us. recognize the it. that imperative

pricing of to that or terms kind we And on. too in pressure it going it’s but so, we’re in of bring that early yet. threshold clients not suspect tolerance prime, shows it I Whether risk of maintain our just might, prime, just in consolidation to judge

Operator

question the with Morgan. from next JP Kian of Abouhossein comes Your line

Kian Abouhossein

Hi. Yes.

support. all her have I Heather to thanks all, questions. of First two for

to relates one global first The markets.

has all strong how very first seen. we’ve year this clearly both environment extremely, by And performed been I you about businesses, dollars terms wanted last the for And everything make likely investments is fueled that extremely You asking and that and quarter. structurally indicated in have clearly, macro sublines these the liquidity decisions considering to budget. spending additional in well understand performing most of

can as the investing you that business lines well as about geography. talk just you’re if So, the

Stephen Scherr

example, would that in is just it credit earlier. I one as and FICC I Well, mentioned the call out an

portfolio trend is So, this saw trading. around line where a developing we

capture going and volumes a the and the percentage trading capabilities us of investments making technology in in and are that And so, there. of were served well the that we solid have the like through portfolio platforms

are eye quite point a the of capabilities straight-through set also of among our bit note not back processing. technology we’ve demands that of And I’d in clients and more so, is, middle money on enhanced the and to it’s generally the platforms the framework advancing office enhancing our overall technology of client an that of Each to and development trading last subject that through build over experience toward overall all around those taking to processing, to the captures or automate and just an is the That that’s clients on improving of been out straight-through there. an trade, with the overall of whether that’s streamline couple spending technology our example place. the years, all ROI of that and experience of investments, but back. user front end portfolio credit,

where the And so, insight little how bit making we a of about think been and investment just into that investment. that’s we’ve

Kian Abouhossein

that question clearly mentioned platforms bit a detail. my in coming But is you And the back experience and your on are focus more have remarks, clients improving. front office you could to elaborate little you for technology Stephen, technology. second also improved the in and maybe

makes banks to much you at just they your are on a much operations many How do get in you you on with. business experience Goldman many from example, of different, that the and For is But the new it we side, lot wondering the front do platforms How of to good envision platform have do how so the view. very that dealing trading future? office And the that they’re at is what your hear cloud? to want based? how side, cloud have in

Stephen Scherr

the Well, the platform let new firm. sort all has aware terms back, keep the banking transaction good which to banking this is of okay? through you’re sure of of systems in and all number way, Transaction in designed expense and me example, like. the terms let It of way of engineering, it engineering efficiencies I’m the books and the as question into I’m being hand to my a it that at is current from like. But the lower end the the have I use front developments and of not the me a records kind cloud-based around sure really answer a of

builds largely, new exclusively, cloud-based. our not so, And largely are but perhaps

decommission from is old rationalize And engineering in. it’s Marco I’ve learned it in and to to that as looking as would I ones always We’re George Argenti important put platforms. is to new thing one say platforms

involved some consumer, the so transaction right technology, so as the I cloud. that We’re banking in and the of newer And legacy, riveted and legacy that absence businesses and we efficiently on the that form. to can in, from doing eliminate think we’re of focused build in benefit new build

Operator

next of Brennan from the Your UBS. line question comes with Hawken

Brennan Hawken

are strategic guys Just big Marcus for you. priority curious out that you building is a --

look out fintech a coming. When the crypto. we the there’s some excitement of writing of We’ve been lot recently, rolled what Invest. embraced platforms You at Marcus they’ve around offering and check got

for institutional a have -- comments on whatnot on you also there competitors ability You and capability, few lot including driven considering are it the and wallets your to in of a might the where that growth? in the certainly which of made seems offer crypto has how crypto offering front, and business. outlook but crypto engage as consumer found though an to excitement lot of a be But,

David Solomon

Sure. obviously level, monitoring we’re I And the appreciate a at quickly. high very Brennan. this question, all

moment, evolves extremely a in bank not completely set on basic crypto We offering At integrated going wallet to we’ll platform. platform. have world focused digital We’ve call focused of further a digital, focused offering with ahead watch term of payment plan with longer basic of plans not are monitor on financial other the a been progress a it. respect crypto, digital services We’ll to money, We’ll to digitization services how at on But a side. we the the things. individuals. build moment we’re continue for frictionless array things And I’ll comment focused the that’s what on on of more an that. this. providing the and systems, see we’ve to obviously much been I’m institutional And how more on

Brennan Hawken

those -- considered of and guys you I with some For seems the Have is targets revenue banking them great That’s a you and very to have show Have is how often strategic you Anyway, the done different which constructive. you’re help consumer a recurring and it’s probably you much fair. and before out bit little Stephen, it’s and and disclosure, it a let’s mechanical, disclosures, your recurring, run, about one model so clear flag that components the some example underappreciated. of you considered that the and me. lot fintech adjustments broadening the see, with directions speak? than revenues thinking making maybe competitors. much little investors consumer -- which Walk would of banking going. the more Thanks. to in some mean been as to analysts new

You what some balances provide more shifts? the allow direct in credit the think Have don’t line, I don’t and actually community. the but greater investor you fees sort breakdown do those for or in revenue that. might the what recurring We assist and would are metrics versus don’t we to of mechanical We is in revenue of appreciation that NII. know that analysts is you help appreciation tied of just know considered calculations, those amongst streams? might your any revenue of And base the of much changes recurring how think know

Stephen Scherr

So I all, no stream. there’s the the that clearly to businesses durability The greater that we of us. providing the are of define will follow, And Brennan, question to has it’s where or context a mean, feedback. insight durability earnings into where there. greater that exhibit and first all area of recurring for would we you focus disclosure been in develop of out think of for thanks big strategy revenue with

true transaction then, one, are points become like corner follow. as would a was a will platform where David expect now durable. of and grows, where and to products. becomes of provide can be ambition to as specific in consumer, same just I through a disclosure so These more disclosure as I around they just ourselves the the and think areas as material, a we that And on I consumer, the place you a We’d providing a raised your that consumer they resemble durability. On think feedback of we more on that it firm-wide of sort will will business will, is perspective naturally banking disclosure in than the say, series find context is before is an reflecting greater turning example. good broader

Operator

JMP Devin of next Your Securities. the Ryan from question comes with line

Devin Ryan

on question M&A just now. A of kind right obviously and environment, fintech on in going financials activity of here the a lot

of you only that year-to-date, is XXx at. what new It’s get perspective whether levels has still the here. within of haven’t a Clearly, Goldman and what at some appetite earnings, we’re XX% level and is, the up opportunities on guys changed? So, I’d at just love but terms seeing are maybe in been anything to specifically maybe also stock you kind

maybe might to the context overall some just how So, I’d backdrop the evolving. be get appetite on love and maybe then

David Solomon

question, I appreciate Devin. the

to strong the On the investment, them in more pickup consolidation assume obviously been meaningful require by in in to businesses backdrop see about broadly in broad about the position. overall, a forward. And as continue is engaged businesses digital extremely businesses objectives with backdrop we’re nature comments we their Because clients M&A has allow that more overall, in increased. world that -- you’re with further are that the the all this the Stephen being of environment Really confidence I and activity. in leading continue constructive global. a strategic everywhere, drive to made backlog all talking strong There’s around scale, by digitization more those just forward tech of consolidation those a

a going this, In repeat respect their as opportunities before. how to about particular what last I’ve obviously And and are continuing to leaders strong positions. franchise. so, quarter, looking said and in that space I’m to of With I lot spend context, We the time said verbatim our consolidate to accelerate think certainly broadly we currency growth because we is industrial at businesses what of to we management significant that the asset has objectives, would felt we look accelerate high. stock than it. fact a the growth like consider at for could anything And strategic we be is that logic higher. it we and would more find right our have the if the But something bar our wealth,

a the and our firm. It’s plan, about it And competitive opportunities high. to growth looking we for be are where the work so, is continue to accelerate we Prices of accelerate we continue environment. we high. And good the think our growth, about bar we’ll do could about ways to diligent feel that but the do but can

Devin Ryan

question context is And just of think investor some a the what think Goldman I strategy sometimes get on to has I the then, a some follow-up newer management of movement clearly a questions implication But, whether love a businesses. comment that. some recent evolution departures more, gets some so press terrific. a at or even just received bench least around deep the from organization, up. if or any the lost. Okay, some there’s is we’ve and in you is is can large picking here, And more of reports just the of over press the question shifts around I’d

David Solomon

Sure. We team place. feel very, very about good our that’s in

in We have think place. a a leaders great very, are very deep bench. in I we’re with And position the that

when with world. We’ve competitive for where place great There’s a very, the world. a is year of talent. out about the the you when basis. with And think they script, just talent, broadly, been activity I rarely looks in because in look welcome for always clients very but choose are positioned, consistent become at things lot times my liquidity have there and we’re that and our things nothing to it’s opportunities it’s of bigger been attrition strong over the we’ve observe environment these One lot it’s of is There’s consistent consistent moves. developer make they a this other as come in I great prices, we multiyear opportunities, very go world We And values a the lot extraordinary in, of there. any with stock they of performance, said lose of back a people that. market people Often, look that will and well people competitors. the a I And we’re to there and talent. always

So, feel to coming perspective. we’re join the on I and interest good about where sit finding a be that to we I that part continue feel grow people the talent in firm. to from have Goldman journey a the Sachs about good we’re of

Operator

next of line Cassidy Gerard the comes with Your question RBC. from

Gerard Cassidy

you’re dividend more give into in you your with an to to Can buffer you the quarter with medium-term assume you said up was think when that us dividend, you with which Could of Board increase I increase. expect would might we third would the XX.X%. color? opportunity number on share go construct, be guys share buffer the at Investor to to I to you when for the terms we us CETX believe guys a Day XX% be stress repurchases, target construct? I manage that ratio, I once how to stress touched think, capital a that permitted the But, take capital just little get

Stephen Scherr

it. those they think that think of the I across I to attractive Where form reflection, to repurchase and the to durable way don’t, greater follow share a reflect do it dividend that. will earlier, past been where repurchase, capital with continue set dividend have look this to in is obviously we at of confidence where kind is we the firm net increase a philosophy we as deploy commented capital and quarter, more are revenues being to about share that back look as going longstanding return and of of a Well, opportunities returns to we’ll the

capital of XX.X%, to about and On firm. less would doing of that the we’re XX% lever repurchase alter the the honestly consumptive I what achievement is say to more the share about density the

happens, equally more on-balance view, that predictable where deploy offensive capital we that will that the doing it from an is And is will buffer as recognize we’ll ourselves and view, expectation much of CCAR reducing that it it’s a exams is reflect maintain firm. have. I of the asset as So, it of key capital for ultimately favor management, But the we the we will my clients. subsequent will the to Fed the that creating be lowering fund among lowering of on in of the sits initiatives therefore capital to about stream intensity. and sheet requirement as what density durable, that pivot third-party extent top those to business, And as revenue

and a the to repurchase, profile realization about business, we’re share that speaking, both capital shifts enable to more the Fed change fundamental help less to to of the ourselves consumption business. So, about of bringing come to lower the frankly in

Gerard Cassidy

expecting. to the then, Reserve for has global strong up, well, The this have pointed out year quite as positive. we there’s you is follow Federal are to this going as outlook economy And guys that growth economy, be all the described

from Aside it from be kind to as risks of pandemic being and on peers taking your a today? keep robust the recession, David, eyes all us outlook maybe as sets what risk. a know, back are the aside you you reversal touched -- set some not your of and back, I and as What a appears of you already that for that and could it some on inflation

David Solomon

tend expect. there’s in is And don’t or and wrong go economic can things Well, constantly. And any things rooted things risk growth to go time. places pop you at don’t see markets wrong And markets confidence. you can up that part -- to in of

given dominated the But very long. growth very, are of and we the I that would some change the world do headwinds at reaction move is time. backdrop do spending be the the think to taken, have dominate quickly. the can at And that, discussions dominated of distribution over or The world. a the with other be very had that’s view the that will to very, for could year. would think such to change that because actions most pandemic. are to environment, central probability the of be respond economic There banks that into the about very, in a really over obviously around see And by to of of have heft a activity. the that having on we through weightiness rest to pandemic and the that year the will to I else general higher constructive growth, low the good where we increase think and sharp perspective overshadows government consequence time, actions taking by That given and next and a the very government as headwinds rates unwind we side, on. moment we’ll of I going pandemic. a that. debt create Certainly, impact strong an given I could There’s the governments a are that think, that Gerard, you certainly scenario have moment going

Operator

the Your next from question comes line Kleinhanzl KBW. Brian of with

Brian Kleinhanzl

book. first at like to quarter way business? a year. prime it that I know the that there record frame exposure on shares what of balance you’re market question sheet But, a are the of overall in had the Kind I What from from exposure says a this is? like prime? is the the

Stephen Scherr

put that to book to it, say and absent prime I that it. our the precision has I say less made short, would to to is simply balances. the ambition insight skewed long grow hard strategic as that risk the to I’ve historically around of that. have happen is I said, business -- kind Well, we into that grow so before, a our competitively would to more growth But going continue said relative to to But as grows. quants. corresponding how comp not priority

We’re of it. in risk embedded aware very, the very

of very We’re the aware in liquidity consumption book. that

we been theme that. that to But part durability grow and we around it’s mind in so, And volumes in the ourselves as again business. around and of financing on that parcel goes

And have grown with so, that. consistent the balances

David Solomon

consolidation make, Brian, is well is with leaders the I’d there business going the forward. that of capability. we’re that for that around And trend of if comment going think clear technology on other because because only the continues positioned scale, a trend And I

Brian Kleinhanzl

And I mean, seeing of business to the where a were the versus maybe massive is level we where are leverage there at before? it client pre-COVID? Is lot versus of kind another on though. today where frame increase underlying leverage was way prime in we look any

Stephen Scherr

mean, listen. a depends I -- say collateral you lot It would pool I Well, that on the have.

watch on this speak of Goldman around can us describe Let me and street. in know goes Sachs. to what inside to way. bank only the every we for I other it It’s hard know what

describing, set monitor Archegos the of much was David Archegos, it. what so, less how events around about And to particularly up as story as we’re is the

at mark-to-market take, collateral that undertake that Those and business. adjust tracking margin look the in level look We And of take position the clients we consolidated that of is positions doing, how in excessive a it we against across concentration on concentration we’re put prime. daily business or all the what accounts. corresponding We look pricing and we and we terms so, overly in our inputs And margin. consolidated whole for we individual we are correlation, grow the concentrated of important broadly. the in,

Operator

Jim from comes Global. question Seaport line next Your the Mitchell with of

Jim Mitchell

bit little the about just a explosive of implications growth Maybe the talking the market. in SPAC

the months. had in pent-up share guess, M&A there. get -- underwriting just the high? you has even make we you I subsequent do Does there’s done good have of about number you pretty because one, the the capital-chasing demand -- cooling guys more in deals amount for the demand XX for lot excited should that off market of seems next You industry? M&A and prospects think to a of side, the clearly that And see a very sort

David Solomon

there’s of level. to have mean, SPACs to set sponsors certainly that high So, the look question deals actively. the lead raised, no I that those given of a number comments a couple all that at been for incentives are

Given be of with quarter, to in. when our M&A SPACs was a look single-digit M&A should that position said, that it, I activity That us last just quantify for participated in percentage activity, the our it think the you tailwind. at M&A activity that M&A market, we a

So, around constructive made while that’s positive and the activity it’s a tailwind, that comments M&A. say dominating M&A I we wouldn’t the

the of X where was. months. slowed last pickup rooted that a question With broad peak activity respect it from really In to underwriting we’ve fact, it to of in that’s over more strategic no in big course activity, the seen much the there’s has that X

the that. I think little indigestion context in a there’s of

quarter, of our you at than the ECM less You’ve obviously highlight when some and again of backlog, that returns this shells slowed quarter. seen revenue of kind were look last just of at ECM I’d last XX% revenue also kind point. SPACs

see in see targets So, is But progress saw you’ll my less continued first tailwind. what this to creates a And we that destack. quarter. new a the to in than this you’ll find all M&A try guess issuance people quarter,

our All for of constructive that be should business.

Jim Mitchell

here follow-up, for that it’s innovation noted an net you as longer-term And you with any investment in industry, Do financing? a stay. to it’s good a just you the -- banking that’s do it see see sort another positive probably of bad or or for quiver

David Solomon

it’s highlight financing. I to Jim, formation think I capital evolve. that going another of what and to in think Well, remarks, to form But I continue is my it’s tried

room in to to improve us see think disclosures, improvement for you’ll I there’s push continue and disclosures.

see incentive I and think you’ll sponsors, think, different structures for see an alignment around I that. you’ll in evolution

innovation,, innovation. to the So, that thing. it, to think disclosure more progress in But they for it’s like good evolve, those and the think I generally room is for participate a the any I other all they incentives, transparency, do where liquidity there’s capital mature. things markets more opportunities investors formation things how around are done, leads But around this

Operator

Your with next question comes from Exane. Sigee the line of Jeremy

Jeremy Sigee

I making the it I to means broadly. Archegos with just if terms with? you kind you business position? early just with what prime you brokerage you of their how do more back to prime unusual that comment business to Archegos outlier do business went wanted to So, And investment their was in that for and of the wondered were ordinary an was in this brokerage some comments could just leverage on multiple was this real start funds other on go or situation, others that like or compared wrong,

David Solomon

make that affected fund I up outcome. level, changed was think chose of size with reasons. the obviously take, But think quickly, particular that to around it This positions was high high quickly. actions wound a these concentrated was the with And very respect variety positions, unusual unusual. to which and was they a level, to think At and I chose here not to very then, the take, But,, I generalizations what unusual or things. of a concentration it’s the in Jeremy, for hard relatively

Jeremy Sigee

follow business? this industry to the any how business result risk of just incident, of do regulators either that or expect limits, you a to in capital the for are that determine does do terms change this business, up, as determine levels, margin And you or how either going you maybe requirements, in

David Solomon

think, always day-to-day one this, every lot basis, and that we a to I even try no that always well this spent though feel executed look on right. question adjust. very we here. don’t everything We at at always And I get and we of we learn we a experience there’s time We got right. always have we looking

there our around there’ll this, the we things. do we regulatory visibility at every be that these try processes So improve always it. look to of to I think tweak situation do and discussion think think -- given how risk about management I and

too But a this leads I overly degree, get another to As in But, to it’s They some time said much discussions. I to leverage, was prepared see I way impact. too one will participate earlier, said those event. remarks, unwinds. think think have my or and as people we’ll concentrated. whether early one-off I have speculate in time it that to do we any will constructively from

Stephen Scherr

with and On stay more Well, for team, a like the to take management our thank quarter Carey of the additional joining and since second questions, look to arise you speaking safe, call of If weeks forward meantime, look the there our you. hesitate in forward to are everyone in with months. coming we moment to team. IR many the reach and I’d please call. to no in behalf July. we speaking don’t you Otherwise, questions please out on to Thank senior

Operator

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

You may now disconnect.

The Goldman Sachs Group, Inc. (GS) 14 Apr 212021 Q1 Earnings call transcript