GS - Earnings call transcript Q4 2024 | The Goldman Sachs Group, Inc.

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Operator

Good morning. My name is Katie and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs Fourth Quarter 2024 Earnings Conference Call.

On behalf of Goldman Sachs, I will begin the call with the following disclaimer. The earnings presentation can be found on the Investor Relations page of the Goldman Sachs website and contains information on forward-looking statements and non-GAAP measures. material Goldman copyrighted Group, is audiocast of Sachs the Inc. This or not consent. be may rebroadcast duplicated, and reproduced without This call is being recorded today, January XX, XXXX. turn Officer, Chief now and will the to over I the Chief Executive Officer, David Financial and Solomon; Denis Coleman. call Chairman you. Thank Mr.

your you Solomon, conference. begin may

David Solomon

you, everyone. you joining good all morning, and operator, for Thank Thank us.

remarks, to devastating start take have that Before fires to across moment prepared spread I Angeles. a I'd like Los the touch on

else the with to clients. people of thanking our and including firefighters and everyone protect tirelessly are L.A., We colleagues first joined thoughts in community. working brave the Our responders that

let I'm of dynamic $XX.X XX.X%. an per share strong serve our Now ROTE we In to ROE turn continue clients billion, earnings of our me quarter, our of environment. very pleased to revenues $XX.XX, we an as results. of the with and a XX.X% in fourth performance generated

improved our XXX strong We year, XX% to For $XX.X to the operating our and billion. ROE XX% full revenues XX.X%, EPS demonstrating by points by to our we by grew leverage. increased $XX.XX basis over

world's We presentation our values to our clear review and today's exceptional will purpose foundation These start for partnership, values us our financial of have Beginning enable of are shareholders. a our our institution, clients Goldman X, strategic detail, united update. integrity at Sachs. I we by deliver financials on the a shared in to be Page Before most with the service, client and we excellence. strategy and aspire

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number that out be or We of clear, these of accountable exceeded held targets is a have we almost also targets. Today, for could all we met laid the our evidence progress.

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long-standing In $XX addition, billion. strategies of of is developing direct our success and alternative a record new investment result track our innovation performance. The continued surpassed fundraising

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revenues strength leading market of years of across and X average over Markets, business. X. Global has diversity variety our demonstrating billion XX% produced of ROE environments, Banking $XX this last the and the an Page to average a Turning franchise & of

particularly in election. ball, catalysts has a to results been CEO the of a will believe crystal are While continue drive no one confidence, the meaningful has number we activity. U.S. There following that there of a shift

these appetite credit can deployed. of other large improving on XXXX. should the financing. the regulatory trends privately and dealmaking one and private in focused relates classes emergence a Sachs backlog increased operates The important particularly our structural conditions place that backdrop. combination to currently of and further an of from sponsors The supported most overall there fulcrum activity of to Goldman asset by strategic is taking finance. are growth in be spur we significant an opportunity Additionally, One

to unique public we origination companies' returns. our Our that position connect formation harness will origination, announced produce private markets. which both Solutions the and and week, our management assets investors risk can across offerings capital structuring to this both superior capabilities Capital financing, of us connect Earlier and group, dependable

We better of clients. of are taking to management the and the current delivery to our and capabilities of sponsors group alternative firms accelerate services financial adding financing coverage asset innovate

We to sourcing are credit creating equity and provide an seamless coverage origination on clients. our group also focused to private private alternative

investment differentiated growth are We excited providing franchise. and sourcing capabilities, will in turn the about with access us to accelerate which clients across our help

turn Management Page on Wealth Asset Now to X. & let me

reached $X.X reflecting under consecutive In Wealth supervision assets client our total Our rose to inflows. fee-based quarter net another assets trillion. our record, XXth of long-term Management,

to bolstered XXXX, of single-digit also streams. continue and and durable Management we a coming XX% We lending annual to in revenues other at drive and banking our fees grown high since private growth together CAGR revenue expect and have years. the

Page growing business are We pretax driving X. journey achieving the committed our In XXXX, Turning in improved firm, target. of our our AWM this to margin towards to the we medium-term meaningfully to improve see return profile further significant this solutions. in and and across growth surrounding mid-teens are Wealth returns. with alternatives we the advisers Management, In specialists. We of the wealth them field number content business management, by increasing opportunities

we further offerings, capabilities. penetrating client our We gem. experience base flagship fund scaling alternatives, developing we're on and investment in new strategies. and focused overall loan elevating product We are and remain institutional wealth digital client our In our with our are program expanding the expanding our

in third-party wealth institutional investing and are for SMAs, tailored structured a across customization see clients and solutions ETFs in we indexing form. Additionally, to continue who direct

we it the good revenues firm. each lows shown Baseline On represents serves considered of to be time as the this a for are underwriting the across reminder. trailing X, revenues Page not of are cyclical but durability first demonstrate gray, XX-year and the that the This information, out laid businesses more advisory, in of we've intermediation. which the some is

we As well versus believe time. and ever XX businesses lending, company, In one XXXX. private XX% measurement happened represents point The years we revenues blue every management from it's of it that financing, the once. low all became conservative a I as more durable which at a grew and said banking last as very fees since unlikely public this because same these hasn't the is a hit would dark other year,

in Taken together, revenues these total up XXXX. X XX% approximately of components made

In which addition, environments, franchise, ability consistently diversified our our highlights further of market our have given power to we demonstrated across different revenue-generating generate firm. the upside

expense process objectives. help drive and program base, businesses. further our made strategic Moving as to business efficiencies significant reinvest opportunities a us efficiency we our have believe that established a We've in there to across manage progress, of remains And key dynamically our planning one Operating business. while X-year of and will Page harness are technology our part X. automation we our

our optimizing in structure. are footprint our expanding strategic and organizational our we calibrating First, pyramid by presence locations

optimizing spend to management, on expenses relationships. vendor looking Second, are manage more efficiently we and our consultant and transaction-based

to We will entities also sell with consolidated our we those assets. associated expense operating down as reduce investment further continue

for experience. to and productivity. modernize growth allow client stack, Lastly, invest improve our simplify were drive us solutions our leveraging and further AI capabilities, we transform and scale technology to These engineering will efficiencies

targets to Page to Moving the We is believe straightforward. our return XX. path

deliver First, to franchise. have markets on and mid-teens our ability banking we global demonstrated returns leading our

to And mid-teens asset strong in breakeven pretax we plan beyond. XXXX. to making Second, solutions drive are lastly, are progress to our platform we against wealth driving management and

Taken path producing unlock to together, value. we a further shareholder our target will which have clear returns,

banks, Denis, Reserve. spend a trade groups U.S. major regulation. it filed the Last including want representing against Before Federal over to suit the Goldman Sachs, turning month, to on I moment

higher long and produces and stress have Fed's industry-wide to creates been we understand capital allocations. lead We cannot results the can of lack liquidity borrowing inefficient which and uncertainty current times costs, testing and the concerned that market at reduced transparency

the seeking to We system to improve bar announced the of foster supports to step believe competitiveness while continue is this responsibility economy. efficient our test, has press to suit filed regulatory more that process Fed more for was incredibly growth our And transparent financial order to rights. U.S. it it's stress and a the For that the the the protect industry, in a high. was take to

In the Goldman trajectory Sachs. closing, I'm very confident of about

excellence. incredibly well relentless a positioned shareholders are we on and service, and We returns clients integrity partnership, drive for our with strong to as execute continue emphasis to client serve to

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

Denis Coleman

Thank and good morning. you, David,

an with an In billion, of resulting our Let's of and XX.X% EPS and ROE XX and EPS of net $XX.XX generated XX.X%. of in Page $XX.XX, the of ROE results XX.X%, of start year we presentation. fourth the quarter, of revenues full RoTE $XX.X on

made minimis firm's the on In full executing select year had items David impact As year on de this our these significant highlighted, results. aggregate, strategic priorities. we progress a

for billion to and underwriting year, activity, Turning the given year. strengthening underwriting as amid starting came $XX markets election. results last on Markets fourth issuance $X.X million, revenues billion Global to XX. banking in amid Banking $XXX revenues Page conditions year-over-year leveraged produced activity. by to XX% rose the year-over-year. $XXX revenues versus Advisory rose finance of million strength In quarter, segment, up & investment XX% increased fees of supported substantially at higher XX% Net million strong robust post $XXX equity equity the financing broad-based revenues

our from in our desire and fourth tables in sponsors in Investment completed we're quarter, strong maintained #X of our in ranked the dialogues leverage robust, for particularly transact. remains and announced we and M&A, XXXX, seeing sequentially For rose client underwriting equity increasing, and lending. intensity The third been league to the Despite renewed Banking confidence CEO second has backlog in and advisory. position accruals

deployment. policy tailwind While a as there that an is to reduced, risk will regulatory uncertainty, the should which remains assets some be capital expectation and serve there burden

XXXX strength and $X.X currencies year-over-year. better primarily on activity. revenues expect pickup for we are mortgages. FICC the on saw revenues financing intermediation, billion XX% were intermediation higher strong and driven mortgages within and rose billion revenues a in performance balances in cash prior quarter, and structured net Equities In of up billion, financing lending. versus Record optimistic the in products. We were results rose in in M&A XX% versus year-over-year, the outlook year, up IPO further by amid FICC Equities last revenues XX% net stronger year quarter, Equities the billion $X.X $X revenues performance primarily prime in portfolio financing. and were average $X.X XX% Record in

in and revenues billion revenues record Across total XXXX FICC year, client net amidst XX% and full a $X.X the engagement strong balances. Equities, a were record of For $XX.X billion. levels higher client financing to rose equities

Asset & Wealth Moving Page Management on to XX.

X% million. fees quarter XXXX, our For lending fees were year-over-year the new a $X.X as $XX.X million. of Private sequentially other to rose to fees revenues incentive XX% year-over-year up Incentive million, revenues were and rose durable $XXX $XXX our billion, for record billion $XXX and the grew XX% records. management more banking full year quarter, In revenues XX% year-over-year. to bringing

in our private and annual investment NII make revenues and progress $X Equity We totaled debt debt quarter, the target expect for to markups further across million XXXX $XXX our and of our portfolio. towards in public portfolios reflecting billion.

For totaled year, revenues the full these $X.X combined billion.

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

$XX in for XX fundraising Alternative $XXX $XXX driving fourth quarter, $XX totaled the in supervision billion and fees. year. alternatives. billion on third-party was and end under fourth Gross Turning of assets to Page the million billion at quarter the the management other

be achieved consistent levels fundraising For with years. XXXX, to recent expect in we

our portfolio end in lending. at total quarter collateralized year-over-year, $XXX reflecting On increase Page was loan an up other XX, billion,

for primarily the in provision in balance portfolio million the portfolio. by was growth, wholesale reserve net losses driven and credit by our Our $XXX card credit releases partially in quarter, offset charge-offs

$XX.X for turn Total the year were on operating to Let's billion. Page expenses XX. expenses

Our XX%. billion, $X.X provisions XXXX were Quarterly expenses of down X% ratio noncompensation net year-over-year. was compensation

structure, As client further These achieving to are will drive automation which our across we mentioned, work as us invest through-the-cycle driving we're to the operating help organizational David efficiencies towards across our franchise. management enhance spend and enable and productivity targets. leverage designed efforts, efforts

was tax effective XX.X%. Our XXXX for rate

of For approximately expect XX%. a tax XXXX, rate we

on Slide XX. capital Next,

our operating at XX.X%. the of fourth end quarter, our stock reflects $X the XX% was above we In million. this approximately and common capital our XXX standardized dividends $X the franchise ratio the X strength Tier approach, under points repurchases on execution quarter of including an intense our year and equity client of current the focus common $XXX requirement of environment. conclusion, improving basis billion returned Our strong shareholders, billion common to of In fourth performance

Wealth positions We Markets are continue opportunities leadership & secular our into & Management. to growth and Global Banking across maintain Asset leaning across

we we for As strong returns to clients enter deliver our remain XXXX, for shareholders. and ability drive confident in

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

Operator

of Poonawala Bank America. Instructions] to We'll first go Ebrahim [Operator with

Ebrahim Poonawala

comments new we're appreciate X take you significant waiting relative different do feed. we XX particular, be markets last for focus business, I how last we you GFC, think should capital think guess regulations. like to I operating maybe your uncertainty just following out? kind David investors, for what capital the how when the SCB the about year. around plays terms up And mean, for with made to talk banking of the But to backdrop over saw business, on I you to that But later a you more to Like the been think outlook being us next punitive reasons. talk there's think and the on investment regulatory could it X about when post on in just markets in policymakers many of justifiable I And happened years how or X years? even

David Solomon

hard spending me speculate it's we It's But are, appreciate mean, where for to lot I there about. obviously of -- something, question. avenues. it's a time obviously obviously, -- X you the they're I hard I think when are given capital, about and talk we're thinking Well,

or CCAR took industry of CCAR the legal. the there operates candidly is doesn't think industry that transparency way you'd and is First, an lack the the action because note and appropriate

we believe will the productive changes the speculate commented with for are took and play there with working a say than the around And Fed. to how system more and going on going other we can so strongly, and an it's appropriately industry system. administration you And not that to believes, is hard it for that obviously, The industry, that as forward. believe ship. that's the this adjustments. all more efficient Fed we this There makes But why changes me capital that at to changes consistent years, transparent plan make more in on we did. action a at that plans has are

And that progress some we'll we're that. hopeful with make so

and G-SIB And to G-SIB cap have to again, given Basel have would in and watch, G-SIB. change is And to the last, be obviously, expectation III. hasn't a of approach calibration Fed, was and always we'll wait. be than administration have been forward. put inside the second, to there's that market we'll change what of be our But calibrated then the in the there'll economies it supposed growth leadership different The been.

so dialogue. don't capital And a about clarity and consistency and of there speculate. improving good, I be environment where transparency, And the constructive around another system predict. think certainly, very But it feels would to markets in Net-net, want I avenue could the for both don't we're unpredictable. very, that's like an that be to this. discussion probably. want I

Ebrahim Poonawala

And just on activity. We've for sponsor a Slide the the mentioned fair. increased That's been follow-up you this. X, waiting forward catalyst,

some pickup have of We there. seen signs a

see You've quickly as just Could talked being more ramp of dealmaking, know more of Give second DOJ, that how for around us be event? mean, we -- of sub months? will about the quickly a just we averages. how couple I sense backdrop a significant deals, half XX-year sort could a M&A Is we next up conducive FTC it the early as see IPOs?

David Solomon

don't There's in averages, And much pickup we but be the large-cap strong up can our backlog we have dialogue, backlog, is you're there's obviously want I the versus that Denis pickup would see it's to robust. inquiry track and going positive think M&A in that set allows as trends a increased we land And to dialogues data dialogue throughout it articulate constructive that highlighted to us firm. setting it also a meaningful we track certainly will speculate more to inside activities, I XXXX. and meaningful you. inquiry. where and to see to and can been continue sponsor been say but I'd XX-year

Operator

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

Chinedu Bolu

David the a to slides maybe question and Because footnotes of $X billion XX, HPI capital But assuming solutions your return here, SLR the are, Denis, in roughly on maybe of investing versus to take puts bridge capital level you capital improving things maybe of platform balancing just shareholders like opportunity returning ROE which gap through XX and more reading then just if XX%. set return? business? that the correctly, at follow-up against just broadly that you you talk here. I'm from if given how constraints to And Are help how sort are shareholders? capital,

David Solomon

Sure.

grow we I'll Markets course and should and has than throughout think, I platforms. the fees Wealth in path that. as the Asset over progress analysis will is years, time, have Markets, still We the from Management, business that to the & at continue Denis of & to management higher. returns we've commented levels On driving be The Wealth very combined believe mid-teens been principal bring continued us on or scaling also we ability & clear Wealth But our improved focus. the them. start, couple and met So what we up We continue add, investments mid-teens forward. on this the Banking our but to margin that mid-teens to margin, Management narrowed and we've but over we capital the is allow to legacy having simple our this we've shown with and medium-term of that not & capital Asset particularly same X laid years target business return you we've Management. a fundamental to believe business X free terminal next profitability make to in return. our cycle. firm legacy can that last & toward Asset in returns the that platform platforms, around will our you the Global have yet Banking to the Global

drag Card will XXXX. I'll still and at year, overall improve depending this XXX numbers, it, Solutions, where point the firm's you to we Platform was and have a on basis the you in rough platform, on addition, how give Apple XXXX That XX ROE. In look

just And so it's math.

If from you the platform & if mid-teens have Markets and that Wealth get a & Banking Asset mid-teens plus we drag Global the mid-teens business, business. to removed Management, a gets we you the

level capital. that. against comment. obviously high our of deploy. do have lot execute We're to confidence see of a give generating opportunities We a Denis in ability will We to a you

Denis will you how comments and give So we're about capital thinking deployment some on returns. also

Denis Coleman

Christian, And I some references think Sure. release Thanks, making you're numbers. David. capital

with billion able and equity. overall both the the attributable portfolio HPI, in we note obviously, $X Within be drag ultimately, have over narrow business time, do well. release we the And of then remaining Platform that all may about -- retaining as of that someday attributable remaining there's Solutions to of equity pretax to associated

are obviously target longer-term So contributors return to those achievement. our

I headed of it capital versus cushion points basis think relates as we to XXX return, into XXXX, sit as have we [indiscernible].

As uptick David has in the a there firm commented, opportunity. client should believes be significant as

priority. we as dividend, would then we to matter As our a to capital. remain We possibly demand best always, return seek obviously, to of and growing look excess that sustainably as fill committed can

will Sachs. You last record year capital have was a Goldman year for return all by noted

we of the of buffer all support regulatory to our of we given head able excess So ongoing shareholders, as clients, dividend the to we'll it while and the the to appropriate managing capital, uncertainty. invest as extent in into record well levels grow return franchise shareholders return 'XX, to the firm capital some sustainably as grow an were then grow

Chinedu Bolu

Okay. share to job. firm, Got doing or you're and a But whether markets great taking alternatives it's you kudos businesses, private Maybe, just you. clearly wealth your David, in on across thoughts to on to growth set perhaps friendly regulatory a or alts private accelerate the your given doing within prospects wealth? Any your opportunity point, deal here strategic and more improved environment.

David Solomon

firm. journey we And things particularly and Wealth always we there mix our about, always of the platform, question, overall Asset the are Christian. appreciate around I Yes. think growth could our and the look, that & accelerate

high. not doing with I've sold, before, watch on these obviously businesses at is also the moment, valuing we're As are at the And these the And of time, businesses we the is an be I'd bought. over could amount But something there growth. they're space. market execution. Yes. focused forward opportunities? extraordinary very for moment, said But bar say the

of of to on ability returns excited to about I things what organically the front you continue activities to regulatory think that I firm. and laid is think have Plus, and the the execute one environment. improve the improving as of we've out for from environment we overall an the so we're both out, have firm and kinds for also and of point environment you the tailwinds flow continue the into we our in ecosystem business

So I be focus. right our to think execution now primary continues

Operator

next Betsy Morgan We'll Graseck with take from our Stanley. question

Betsy Graseck

to follow on I improve. want regarding you now, were making right 'XX, the one ROE, but 'XX that on a did It's thing and to XX drag on point Solutions. Platform bps here XXX just up will

will what's Platform what could through are that. reduction I'm the 'XX in speak plans of -- and for drag could this us Solutions. 'XX So know wondering in that you I next, year if you But mean, just we through your happening drive and step the

David Solomon

the level, At partnership. is Betsy, thing Platform high Yes. Solutions obviously Apple is in a we're the -- primary

the card is most contract time until profitability. Apple it to happening some with partnership know, driving possibility that performance towards is and thing to run and won't its The you frame. card continues although we that that's As continue the until there's have a XXXX, important improve that

any has or Ultimately, the And the return for the the firm, the life whether the drag. other impact so us position of. through not profitability short-term direction contract, a aware to but of travel it's really card on of you're in not be business than an comment the of medium more will the in to a allow that's and going and the term specifically exit I'm that ultimately that to long-term improvement in capital

Betsy Graseck

then you're how the did discussed banking, on it within us change looking Like does just structuring deliver changes were this financing for? understand better if that got that to help Could revenue growth? you right. with And structuring the Great. Okay. investment how the separately why team I growth outlook management you're that's this regard

David Solomon

Sure. Sure.

yes. -- So

So Global Banking first of & in all, Markets. it's

banking & Global the think and I was think really so a journey to global trading we've about and all are in call the that should financing capital between the all about the markets together brought investment Markets. which what businesses, And Global business, or them Banking Banking Markets, markets exist we businesses we'll what you been businesses, the & think way, on and efficiencies then Betsy, the traditional

And think that should two big is markets business, and which have that have of one, through issuers institutional One way can markets global whether traditional it's sheet, marry alternatives products think management to now Goldman own of believe, results. intersection to both through is range whether trading. and and we we into clients kind also platform our uniquely private financing between big us, as ability, you organizational we business investment investors. that what for the have call call kinds get companies in management advantage I something of fulcrum allows But what and with call capital traditional balance $XX we X marrying big what very uniquely billion it's make that issuers we positioned have we're issuers, our capital is the distribution channels we capabilities. I and creating through is or asset of public the it's service having we public relationships take we're of The sure you'll they that all with asset Sachs extraordinary to need our platforms. three, capital three you on world. a market banking; is, and or very the XX,XXX an but is thing the what call about marry also structure this positioned that call their product with at different what best think solutions; Two, extraordinary markets I'll we

so And across of all firm. coordinated in getting NGS fashion way a that is the this

that sponsors. in financial together businesses. talent traditional these taken and to our we be the we're products and coverage capital taken of and think understands going the And bringing firms capital We've all growth actually alternative markets. where both to the optimize taken our capital putting own and balance businesses so markets there's try we've businesses capability trading of together and coverage ability sheet are we to that. We've them deployment to And our financing in distribute this all the is the around

do more think the better. And share, our capture of allows basis a relative to on so performance ability that setup to we us

Denis Coleman

suite the we undertaken And not Betsy, obviously, report and we'll enumerated. the to the this financial synthesized doing origination that of growth continue to way more opportunity -- instructors our of are us one of into are originators this people just line else populate clients a changing. is client These accelerate David activities efficiently, segments think think sort that items we better same thing have terms of financials, I'd capability, We that we revenue that not add by streamlined The just and serving these enable our overall subsegments but against will are organizing our today. just in by changing. everything set

David Solomon

investment so on it. business back closer businesses. was in has Markets if to trading years were the XX the history, them clients. sat And Betsy, ago, business I in ago, markets it to go mean years thing look, banking, Capital they dramatic to years is the expand ago, in put you XX And a capital just

the always our and one resources, and experience GS connected to possible. and clients do is leveraging ethos as seamless we make how is our for our clients And so our simplified organize a be is is create mindset our people as and to

Operator

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

Brennan Hawken

some in in You unlock there's lending some more driving and of would of products flagship from AWM. expecting be But scaling within versus business an franchises. and you're your the I ROEs lending sits penetration flagships and within developments given uptick the contribution all, to the the those speak I market the target and more and wealth where that demand within highlighting maybe some ranking been solutions recently, was what thought whether hoping the of wealth capital business-oriented components spoke interesting. earlier you to improving the could which and was

Denis Coleman

the Sure, lot a appreciate Brennan. Thanks question. I it. for

So Within Management, particularly our set believe grow terms some did relative the you that ambitions lending. obviously, our expertise, support platform. we've across lending balance of is And to Wealth one private in activities. relatively on capabilities our noted us, We and is investments enumerate in primary our that we have of wealth $X wealth part opportunity wealth we've making underpenetrated through is grow X lending we which and Alts our the about Management, strategy to are educating focus: been billion And competitors client-facing for professionals Wealth attractive we previously Solutions. human that year. clients capital to

committed are We of penetration. to journey increased a multiyear

I think very still low. relatively, we are

So we are progress. making

a but improve room lot think We to are of we have that. optimistic, I

to progress of that ways terms wealth In number of attractive and we in business, a the appropriate alts Alts grow continues continue there be our of and portfolio. franchise. It are make component our to clients an

well of well to as robust a offerings of are time We a have wealth and also firm deployment, advantage that channel funds we they the make to certain we to and good alternative for position our flagship third-party capital. those clients, from within and those are for opportunities manufacturing and as credible portfolio firm known time, deployer the of and client raised very attractive that as us a available of secure capabilities can have clients take also

improve if operating of to those the depth under overall continue business. time. of to And we'll Wealth over will So we & enable better leverage Asset assets as will, the that Management that more raise you management per component us have funds strategy,

Brennan Hawken

And the think of -- expectations do as pretty and capital robust to margins forward. move it's markets push on we think you've answer, easier for reviewing in we activity growth XXXX pretty of improvement and maybe we about pull or given efficiencies given move when indications spoke to how way interesting if to all the It's giving robust right the for as into the incremental operating because a expenses strategic Great. and about what's David the when update. -- efficiencies some the revenue

Denis Coleman

to at rise same which of do things actually Sure, to is a Brennan. the what your We're that. I appreciate trying time, number question. gives

deliver we grow firm, that see and to as opportunities firm, we to good operating continue continue grow incremental able we to foremost, first the to continue be expect So we should the to and leverage.

course basis ratio points. in saw by You the improved year of the our XXXX efficiency that last

the target on of Now closer moving it's XX%, to of our order XX%.

leverage So improve firm the operating finance space. the of to across efficiently, accountability give capacity locate focus scale team. an we employees' that the firm a our to place management of firm. firm. David processes, to that our continue of management this organize our to And the which as David more make running and we of want it way the to to client incremental in the case of incremental huge ran the and thinking we the piece up client make ways professionals, improve some continues this business, resilient think investments way firm, scale ways we of driving investment experience, to be fund the are improve focus the takes able accountability incremental think a that some driving experience. employee it's scaling investments something be the us made to program to and by that's spend, committee ourselves, spend the on attractive the to through has lot and to overall designed the about, to we we It's engineering best also important see that to It's how very opportunities productivity, efficiencies we manage we reference

Operator

Mike from We'll question take Fargo our Mayo Wells with next Securities.

Michael Mayo

CEO Street's Wall most said been another XX positive he was who was years. there David, the in he's

for the you're if level X, of regulatory to highs? kind get economic XX-year model you saying other bullish a all are it thesis the lofty that the Slide expenses. What's the X%, if your the wrinkle you're on drill up And likely up in doing how much, think on in most that too was pandemic environment, the the So mind here, go on maybe if a would X%, a highlighted your could X%. the a And yield puts of expectations? do of the rates what industry, XX-year thing backlogs -- focused back out go the you're we as 'XX laying environment, things because I this, and good side by

David Solomon

question Look, evolve. remarks, that that doesn't a I thinking environment I a Mike, at been But highlighted change, I'd as of sentiment broadly stop I nature about Sachs how election. level, there's the at can no can thinking that us Goldman talk appreciate and shift the by constantly risk in the how say from to my question, managers high there's CEOs since

into I I back normalize, I around anytime our think particularly averages activity, moment business say historical better. markets constructive going a feels that think -- below the have of that anomalies it expectation our have do to are at have and a for like et certainly but maybe going do any business been levels tailwind mix, XXXX. And capital it I activity have soon, We cetera, more capital minimum wouldn't XXXX, a is to markets environment. going we

resources the And so as about something of of deployment we business. investment that course, is in think about and we that, think

and can't the long medium we're we predict said, environment that the and running all The Now firm environment. term. the the for changes

ability that our confident term distinction. over am growth with the what returns on on And continue over and well and and medium of over clients And I firm so the of term, excellence execute serving the confident, will that returns firm our to no very our well. and time and we the really serve very medium our our journey at of world Sachs focused very and matter growth very, throws are very, growing the us, the doing clients Goldman

at change I up feels manage And long to the the perspective. going we're the for in and could that, thinking corners X in look always all are months environment the be think I but and wake the I'm trying on and that around always that medium things going about would firm always could confused good, not there world term. to that

Michael Mayo

years? that? I been be then about that today? why in #X other you guess the do mean work in X still big hand, that what haven't And out. that that's to Platform expect is big on deal you And is specifically, to the organic I and making to financing related you're And And growth, Solutions credit around? risk how how able

David Solomon

question, really the to I've first the I said I the about journey It's appreciate anything the say. platforms don't On consumer but than business, different our around question. in have what

growth for our financing world. point, the for we business continue us believe in that our second the to financing to On -- grow with there's scales our opportunity business

cetera. the business to world that focused equity we're of on scale against risk time. our Denis, to continue and But course, over balance you and do we've et we proven base business. as our that? us for want the management sheet, and grows, Of I add grow scale and incredibly opportunity risk that that think there's credit around believe to mean, I anything And

Denis Coleman

Yes.

FICC to clients of to Just activities made I the draw group establishment differentiation. enables for which provide The the and attractive us AWM fashion. some help some really driving of also continue franchise, sheet appropriate the product of that investments a Mike, and to comments in distribute to origination, have that can centralized that source Solutions across that connection clients is earlier, secret distinction can, the some David origination an of Capital all sauce these at in from financing We risk-adjusted and the we that our grow we can back, to and origination balance returns AWM. investors is if of underwrite risk-adjusted other

the market. reporting various So there's that to for invest to incremental continue across an excellence types the growing in given that been around the also we of on capabilities but opportunity demand the have investors we've origination see outlets we financing

Operator

from JMP. next question take We'll Ryan Devin with our Citizens

Devin Ryan

better will past? of be solutions obviously, capital clients about sponsors last organization, that that group incredibly and do gives gains and to and going further ability share, in think indication then if important share, positioned testament sponsor just share sure banking driving First with think, market think you've or seemingly share to And wallet today not market kind execution. question just kind guys the of there? about there. that to handful where done in take any share your How I how here of framework the wallet you impressive we the how you numbers the can the this like you markets, are give from you And with just, think would at of and new years. over on look it a I When

David Solomon

We over and XX our sponsor we've investment enormous made Yes. coverage we've the -- and I years, community. our in relationships mean, -- last

have with sponsor with think don't sponsors. say to But share fair it leading community. it's share I we We -- the have specifically. leading have we we quantify

even monetization sometimes I'd we're positioned share is an active to our it's think say than our more fair they've capture as where What well environment and that I very been of they're share activity. deployment fair X not old been incredibly a a I've money perspective, doing sponsors selling make buying from also that things: consistent. that's consistently by said things, and perspective, quiet just things. both new

period where And in so those through time of lot normalize reset gone of over will valuation of Part the that time. fact kind things, haven't a they a either of we've that a expectations. it of was done

the very believe XX do are good. share that be positioning run that of kind And with them environment much expectations our valuation to into growing months was it to strongly constructive of will but Some activity. ahead, response I is more next very a

strengthen will I position. that changes organizational think these only

Devin Ryan

just then seem of Great. the alternative trajectory first. and but And pretty about has fundraising then could How performance the that, fees, think that kind deploy management been terrific. should in in of of -- the deployment kind we fees that function of that a acceleration on you big fundraising would higher of to of asset pace step just the terms kind because be capital there performance it in of need record

think time line the through just of kind path. to that So

Denis Coleman

Devin. Sure,

question as good we're a And a of it that because So number focused it's topics. on hits well.

the alts opportunity of last transaction surpassed set And an the all and ability it's couple the deal-making to the targets good now deploy. years us to the subdued market to out repeatedly, our raising transaction. that we So success being for into but and various over also obviously, had volumes environment impacted has moving we funds deploy

same start more the that At of monetization and for us our more time, that a less opportunity slightly raised AUS. attractive -- activity. the we've been way deploying improves, activity be the transaction been that muted for as by to So same has should there's drive overall money backdrop environment

into, our and monetize reach hopefully, investment to fully opportunities supportive monetize to will we continue investments become investors, well. we, better as And across and to a be to capital there the financials structures, the fund of through as as us and a position for then to so cycles our returning enter end you'll our more backdrop, incentive see come in start start again, fees

a on incentive up billion $X Our year-over-year sharply basis, fees were they're target. but short our still annual of

continue make sit the where be that to over that target of in obviously, that will have. progress, the will function that given target, a to billion make expectation but continue environment, we the outlook towards Our progress we extent is course the we of XXXX, the progress we should of towards $X

Operator

question next our with take Fannon Dan We'll Jefferies. from

Daniel Fannon

to on alternatives. wanted follow the I up

asset of fundraising the funds book of Or look how in ground will Could they what's today? forward? we fees consistent about And growth talked the that alternatives levels kind at existing drive maybe You the think that are your may you classes be same going as the to talk different? of of or the you as 'XX.

Denis Coleman

Sure.

us ways players one breadth one the it I our is a alternative So has the channels platform, market. think as the of different X in of come the strengths X very platform that's top given the of fundraising alternatives from has been diversified. our number the And of in of of positions

we would as asset to raise alternatives classes within platform. forward, continue expect to we across the money move our various So

compressed, if we outside. fee a get significant That's seeing on question the you that not are will. We

raising fee the variations the type be mix. roughly of So we'd obviously expect structure, in same can with to same funds be there

sourced different fees. so all types And bring of different channels with different products through them

reasonably our But origination consistent suite So and change. strategy, diversified space. expect that in per type can don't the effective expect of Alts volume average has raise of change fees to funds, in of a terms a meaningfully activity to continue

Daniel Fannon

both those in on and we was those year the I both revenues you both wealth, higher you either similar you a follow-up, as fourth see in expect a a good of businesses that bit in quarter forward, fee going as the There divergence little growth management do both they segments? just Management, then levels? for And guess, Asset saw growth Or year-over-year, at think look & quarter. the and the Wealth will Understood. side, at do the grow consistently, year. to fourth

Denis Coleman

single So we will are to and subsegments. our years. continue re-underwrite obviously we digits look, both that there we growth continue grow and to management obviously grow of And outpaced management management asset within to fees factors sectors. We our like obviously recently, high to AWM expectation next sort both but and high wealth those single different our of digits. expectations We've across other would the be that the raise forward optionality idiosyncratic management over several re-underwrite fees, the the

Operator

We'll Cassidy RBC go with Capital Gerard next Markets. to

Gerard Cassidy

included, David have from of or where obvious folks us us or optimism risks the economy, Denis, for are et can outlook, business? X -- X that geopolitical us you you And guys mean, we for the you outlook risks cetera. to Can looks markets the the give I with very the many aside could I share of this shared the all think, -- us. derail positive for capital businesses,

David Solomon

business of call. we When all have on mean, look very, obviously change appreciate the talked a significant there's I I policy, The a in new the world can sentiments this the lot world the energy It's change. is that Markets world. cyber quickly. -- And mean question, We I reacting with place, more a complicated going We a while right. a this, about in there's be on a are very different all regulatory a something uncertainty. immigration tax world. their administration and there same shifts market a impact There of a array excited but on of initiatives have policy we'll But have an moment, are are going things about. environment, the all talking at point, of you the in people bunch at there risk spend lower haven't I'd thinking lot. the we travel. are touch plus time from direction lot sentiment on There broad are around say, about lot can sorts a people that et of think policy, of there cetera. risk there's clarity a and environment, about sentiment get can broadly policy, across policy, trade outcomes. And that

So are. all I'm for because the the surprises some toes out to me the the you we that complicated prepared the well I consensus year, our there be be firm the the to at Fundamentally, world. should single and some complicated the there'll the sure different resilient things, navigate about be turns our risk is constructive. would is year still. tell And at downs January, I U.S. the to world try say tell to them. place. these managers, And it's environment I and quite core to always unexpected is every is economy in a sure people positioned moment, than surprises be we make as on consensus. up, think But and this in constructive be a there'll year quite think the And The

Gerard Cassidy

in Yes. leveraging sure. to, talk In for I And Slide them, that. No, technology you been agree the operating for driving years efficiencies. about in heavily those have in X, guys then talk obviously, That's about investing you with coming particularly then back solutions. automation. And AI you

be there's of were percent impacted able you be time probably AI. success that a become because early you're to that say, implementation when already, wow, the do done? will actually we'll having you've when able in success but favorably there with think we'll see AI outsiders, the earnings I to As know successes the by X

David Solomon

automation -- its franchise this we think franchise. on in us efficiencies of the way that give create make base I where allow the are early about to a firm use that allow and creating And We're should we us to will better at this we our clients zealously we to to and We grow on. our operationally franchise. places we're have going more continue to to resources by and affected do it and and think progress I scale say look capacity us have opportunities to grow deploy continue technology point client Can something I -- scale way lots creates coming to I the to capacity going platforms is hinted going invest don't having that's this that of And years. our comments we and percent? our to firm allows you and strengthen success. can continue productive. serve to focused get and good it's focused very continue And other to that We've about it. that investments investors it's think the to to We're explained necessarily us on in expense the continue can and that see see be at too. Denis and on focus it, made but think to in that's to his it the it, the that it franchise.

think think I the that's operate. way so about and it And try we we to

Operator

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

You may disconnect. now

The Goldman Sachs Group, Inc. (GS) 15 Jan 252024 Q4 Earnings call transcript