Goldman Sachs Group Inc at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Goldberg - Barclays - Analyst : Here we go. We just put up the first ARS question which we asked all the companies. But David, I'll go to you. A lot's changed since we last spoke at this conference, a year ago, your strategy probably better understood and appreciated by the market clearly. Maybe just share your perspective on your strategy, what you have accomplished and maybe the key opportunities across both global banking and markets as well as asset and wealth management.

Question: Jason Goldberg - Barclays - Analyst : We're going to unpack a lot that but before we do, I guess, given the market backdrop and ongoing execution of our strategic priorities, maybe what's your latest view on the operating environment and any updates on performance trends this quarter.

Question: Jason Goldberg - Barclays - Analyst : I guess before we move on, maybe a few follow-ups to some of the stuff you just said. So total trading revenues down 10% year on year in the third quarter -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 8:15PM, GS.N - Goldman Sachs Group Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : And led by FICC. I guess what in particular within FICC was challenging.

Question: Jason Goldberg - Barclays - Analyst : And then on the AWM moving more quickly towards the normalized numbers, that specific actions that you're taking.

Question: Jason Goldberg - Barclays - Analyst : And then the $400 million on the GM and so the finance business says at $400 million negative.

Question: Jason Goldberg - Barclays - Analyst : Negative in revenue.

Question: Jason Goldberg - Barclays - Analyst : Got it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 8:15PM, GS.N - Goldman Sachs Group Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : And so we're close to maybe (multiple speakers)

Question: Jason Goldberg - Barclays - Analyst : That's helpful. Maybe let's zoom out and unpack maybe some of the longer-term opportunities across the business segments. Maybe start with AWM and just give us your latest thoughts on the key growth levers in that business.

Question: Jason Goldberg - Barclays - Analyst : I guess wealth management solutions, alternatives, private credit all sound like big opportunities, maybe just unpack and a little bit maybe first on wealth and just where do you see the biggest opportunities within that? What are your competitive edge? You mentioned lending. What's compelling about that?

Question: Jason Goldberg - Barclays - Analyst : And then maybe you talked about solutions, maybe you just talk about what your differentiator and your product set has at times the broader capabilities?

Question: Jason Goldberg - Barclays - Analyst : Got it. And then on alternatives, definitely a scale player, top five, significant growth opportunity. Maybe just unpack what your priorities are in that business, what are your competitive advantage is? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 8:15PM, GS.N - Goldman Sachs Group Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : I guess you mentioned private credit a couple times, obviously, a big area of focus in an alternative space, given both the growth opportunities, but also risks. What do you see from your vantage point?

Question: Jason Goldberg - Barclays - Analyst : And then maybe talk about the investment banking outlook and just give us your thoughts in terms of what you're seeing, the timing of pick up activity, what you're hearing from your clients, particularly the sponsors. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 8:15PM, GS.N - Goldman Sachs Group Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : I'm going to press my luck here. You gave us guidance on trading, AWM, and consumer. You didn't talk about investment banking.

Question: Jason Goldberg - Barclays - Analyst : I guess as my follow-up, what do you think it takes to get the sponsors more?

Question: Jason Goldberg - Barclays - Analyst : Got it. And maybe on FICC and Equities, can you talk to us about the catalyst to stimulate activity from here and maybe talk a bit more about the financing businesses? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2024 / 8:15PM, GS.N - Goldman Sachs Group Inc at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : Got it. I guess, you recently, you're not the one go took the investment banking piece and the trading piece and made this combined global banking and markets unit. Maybe just talk to you how you think about the long-term positioning, growth, return profile of this consolidated business.

Question: Jason Goldberg - Barclays - Analyst : Makes sense. You talk to CEOs on a regular basis across all industries and AI seems to be coming up in everywhere we look. What's the latest on AI in both Goldman's operations, but also with clients, and how do you expect that to translate into efficiencies and productivity improvement?

Question: Jason Goldberg - Barclays - Analyst : And then maybe we could put up the next ARS question. And David, while the audience looks at this, maybe I could ask you. A lot going on with obviously at the moment, I guess we'll get Vice Chairman Barr tomorrow and supposedly 450 pages next week, revising all the stuff we looked at over the last year. But I don't know, I'd love to hear your thoughts. You did get some relief on SCB versus I think what was initially feared. Potential changes to G-SIB. Maybe how you're thinking about capital management or the return file given all that's going on.

Question: Jason Goldberg - Barclays - Analyst : The audience seems to think the Basel III capital impact will be half of what you proposed -- what you thought on the original proposal.

Question: Jason Goldberg - Barclays - Analyst : We had Ritchie Torres this morning speak at House Democrat and made the same point that this was not intended to increase bank capital, so I thought that was interesting. Given these uncertainties, I guess any changes in terms of your thinking around capital management or your return profile?

Question: Jason Goldberg - Barclays - Analyst : Maybe put up the next ARS question for the audience. I guess I would maybe bring together a lot of the stuff we've talked about before and talk about the firm's return targets. How would execution continue on lock shareholder value in the light of recent valuations?

Question: Jason Goldberg - Barclays - Analyst : Valuations.

Question: Jason Goldberg - Barclays - Analyst : Makes sense. We get the answer to this. So the market, while it does expect you to achieve your targets, although it's decent amount expects it to be challenging given the cyclical nature of revenue streams. Very good opportunity to talk about how you, I would say, increase the percentage of revenues that are maybe durable --

Question: Jason Goldberg - Barclays - Analyst : Can we talk to you in that context just how you think about the expense base in a cyclical or ever changing revenue backdrop?

Question: Jason Goldberg - Barclays - Analyst : And my final question, earlier in one of your answers, you alluded to the fact that maybe you'll ask me later about the US outlook and what I'm seeing. So obviously a lot of things going on, changing rain environment, upcoming election, political noise. Can you talk to what are you hearing, seeing, thinking, looking out?

Question: Jason Goldberg - Barclays - Analyst : Great. With that, please join me in thanking David for his time today.

Question: Jason Goldberg - Barclays - Analyst : Thank you.