Steven Scherr: (46:18) Transaction banking will be a fee-generating proposition. In particular, new M&A announcements are creating a pipeline for acquisition financing in the coming quarters. So why don’t I start on deferrals or forbearance? Thank you. So any insight you can provide on the private portfolio companies either those facing more like COVID-related pressure or those that aren't and if that will have an impact on the pace of monetization? And if I’m not mistaken, I think during the Investor Day you guys mentioned, I think it was about 4 billion over a period of three years. Please go ahead. I appreciate all the time. We look forward to speaking with many of you in the coming weeks and months. You've landed an interview with Goldman Sachs.Well done: you're in a minority. And I think that will continue. However, as we speak today, the path to reopening in many US states and corresponding economic consequences remain unclear. Let me now turn to page 8 where we continue to provide transparency on the composition and diversification of our Asset Management balance sheet. David? Financial advisory revenues of $686 million remain healthy, but down 11% versus last year, amid fewer transaction closings consistent with the industry. The more we can advance and increase the cadence on the migration to lower capital density investing the better we’ll be. By the way, by contrast, we do see positive beta in other channels, which play that way, particularly in the high net worth channel. The strength and breadth of our client franchise continue to be evident this quarter as we delivered net earnings of $3.6 billion, record quarterly earnings of $9.68 per share, and return on equity of 17.5% and return on tangible equity of 18.6%. Steven Scherr: (01:15:59) More generally on your question about provisioning. We maintained our leading position as a strategic advisor of choice for our investment banking clients and our strong need table positions across underwriting markets with extraordinary volumes in both debt and equity, enabling us to pick up market share. David Ryan: (01:16:06) The total annual income you provide does not have to be exact but it is important to be as accurate as possible. Thanks, Heather, and thank you to everyone for joining us this morning. Gains across these three segments were partly offset by a decline in our asset management segment, given smaller gains on equity investments versus a year ago. These were offset by roughly $60 million increase in activity-related expense from brokerage, clearing and exchange fees as well as a roughly $85 million increase related to technology investments across the firm. During the third quarter, the S&P 500 rallied by 8% touching new highs in September and leaving the index up 4% for the year. See you at the top! And we think that's helping our market shares. Is that something that I think is permanent? Total firm-wide net interest income was $944 million for the second quarter, down sequentially and versus a year ago. Now, let’s turn to page 10 for our firm-wide assets under supervision. Capital markets is a volatile business yet through the cycle, our capital markets businesses produce significant activity and significant profitability. Read the full transcript of their earnings conference call. Christian Bolu: (45:27) The third thing with respect to the credit card business, it's hard to imagine where in any business that has a lower P/E and the current P/E that we trade at. In this segment, we produced $1.5 billion of revenues in the third quarter, up 13% versus a year ago, driven by higher Wealth Management AUS and higher Consumer Banking revenues. In debt underwriting, net revenues were $571 million, up 9% from a year ago. I think Stephen should comment on financing CCAR and how we’re thinking about that. It’s unclear how active they’ll be in the third quarter, but there will be activity, we’ll be open, and at the end of the third quarter, we can kind of look back and see how that unfolded. So why don't I start with trading. Got it. David Solomon: (12:04) Steven Scherr: (22:21) In the second half, we are watching for a potential pickup in M&A activity, both from companies coming from a position of strength, as well as those challenged by the environment. Total AUS decreased slightly to $2 trillion during the quarter but are up approximately $275 billion versus a year ago. There’s no question that over the last decade in a period of very low interest rates and low volatility that has been a more commoditized service. It’s not significant in the context of how we operate and how we think about the risk overall given how low it is. But we’re in the very early stages. More specifically, on our $3 billion public equity portfolio, we generated nearly $800 million in gains from investments, including BigCommerce, Avantor, Sprout and HeadHunter. I would like to welcome everyone to the Goldman Sachs First Quarter 2020 Earnings Conference Call. But if we think about what's been going on this year in terms of significant capital raising, both equity DCM, how do we think about that going forward? And you saw in this quarter based on actions we took that we slowed down the growth in that deposit rate because we had well exceeded what we expected to do from the year. And then I missed it, I don't know if you gave us the realized versus unrealized but I think I wrote down everything you said on the equity and I'm talking equity investment line. We continue to make measured progress. It’s really looking at the balance of expenses that I was addressing to an earlier question, in terms of what we can do to bring down some of the non-comp expense and overall bring our operating expenses down. Steven Scherr: (52:35) In Asset Management, strong growth was driven by higher management and other fees, as well as gains from our long-term equity and credit investments, following a more challenged first half of the year. For the quarter wealth management and other fees of $938 million rose 13% versus last year, reflecting organic growth and the United Capital acquisition. But in addition, we have excellent people in a number of businesses that need to be paid when people perform. And a good portion of that increase is attributable to variable expense like BCNE, so this is expense obviously related to the nature and level of activity that we experienced in the business. And Goldman Sachs sort of went to the market and didn’t pull back and away from the market. This performance reflects our long-term strategic focus on this business as well as the velocity of underwriting commitments on our balance sheet. Steven Scherr: (21:11) If we execute, I assume the stock will follow. The third quarter continued to demonstrate the strength of our diversified business. And then there are others that historically have been untouched by this. Total client assets increased to $2.1 trillion, up approximately $ 240 billion versus the first quarter and up nearly $400 billion versus a year ago. Next let’s turn to expenses on page 12. David: (01:26:23) Higher compensation expense reflected year-over-year growth in revenue net of credit provisions. Investment Banking produced third quarter net revenues of nearly $2 billion, up 7% versus a year ago. Stephen made comments with respect to the pickup in our backlog. David: (01:13:35) Goldman Sachs is a firm that offers the opportunity to make an impact at a very early stage in your career so that’s something we always want to hear from you. We obviously saw closings on previous activity, but we did not see replenishment in advisory transactions that we would normally see. Thanks. Importantly, as I have noted in the past, our overall results are less sensitive to lower interest rates than many traditional banks. I want to be clear, it’s not shut down, but I think you need a more certain environment with better insight into the healthcare situation and the economic situation to see that replenishment normalized. David: (01:09:13) Your next question is from the line of Devin Ryan with JMP Securities. Let me begin on page one of the presentation to review our financial results. Then also how you’re thinking about reserve builds from here. I appreciate the question. Funded consumer loan balances remained stable at roughly $7 billion of which approximately $5 billion were from Marcus loans and 2 billion from Apple Card. In derivatives, we saw solid activity in flow, structured and corporate transactions across both the U.S. and Europe. We saw considerable strength both in repo and in structured credit. This slower pace was expected, as we continue to limit UK new account growth in light of regulatory caps and reduced the rate on our U.S. market savings accounts, given the lower interest rate environment. But I think our strategy as articulated and Investor Day, and frankly speaking, what I described in the past toward reducing down capital intensity of our balance sheet investing are all part and parcel of our ability to take down what is otherwise meant to be represented in the peak to trough in the SCB. Returns were also impacted by higher reserved old for credit losses. We have a big asset management platform, which is global, broad, deep, multiproduct, all over the world. We actually think there might be things that we've seen and we've learned that may create more opportunities for us to advance from that plan. … trading all leading to higher market share for the business. There’s certainly the deposit growth continues to surprise positively both in term, both on the consumer side, as well as in transaction banking, given that some of the growth appears to be tracking ahead of plan, it sounds like you’re quite confident on your expense savings targets from Investor Day. At the bottom of the slide, we show the diversification of the portfolio with only 7% related to the retail sector and 4% to hospitality. These relationships are real. Has anything changed there in terms of pricing, market share, and the client’s needs for you? Steven Scherr: (57:27) Goldman Sachs on sizing of the gain, how much RWA that frees up, anything you could help on that? How has the progress been on that? We also saw continued success in systematic and electronic market-making, including high utilization rates for our bond pricing engine and automated trading, all leading to higher market share for the business. Those things are sticky. So what do you know intermediation spikes because the world goes crazy? Steven Scherr: (24:35) I think the real share gains there, I’m getting a lot of feedback from clients directly, that they really appreciate the way we’ve invested in the client centricity of that business, the way we’ve kept a strong investment in really meeting their needs. You've had a focus on growing book value. By 1906, Goldman had risen to prominence in the financial sector and was guiding companies like Sears, Roebuck & Co. through their IPO process.Things took a turn for the worse, though, when Goldman Sachs suffered huge losses in the 1929 stock market crash. We lend to these clients. If you go back strategically, one of the reasons that we were very confident in building this platform is, we were a big customer of other institutions, and we saw a need based through our own experience, and we’ve really put together what we think is a very, very friction-free, digital platform that advances the connectivity that clients have to their financial institution and ease of use in very, very meaningful ways. On the left of this slide, we show our equity investment portfolio broken out by sector, geography, and vintage. Steven Scherr: (01:02:33) Well, I think your last statement is true, but I'll make a couple of other comments at a high level, and it would offer a perspective. In conclusion, our second quarter results reflect the diversification and strength of our client franchise and our ability to provide differentiated advice and market access in a volatile environment. For risk management purposes, we maintained single name hedges on certain larger relationship lending commitments. Revenues improved as higher volatility draw significantly higher client volume in the Americas and Europe. Brennan, I would just point out that through three quarters, when you look at comp as a percentage of revenue net of provisions, we are spot on to where we were last year. And so there's no change, but rather just a continuation of the journey we've been on to get the firm aligned up and set up now with these four big platforms that we really think we can drive growth over time. On June 29th, we disclosed the Federal Reserve’s indicative stress capital buffer estimate for Goldman Sachs of 6.7%, which implies a common equity tier one requirement of 13.7% for the firm effective October 1st. So year-to-date, the accrual is 35% versus 36% last year in the first half. My expectation would be if the economic environment continues to improve, you'll see an improvement in that loan growth as we head into 2021, but we'll continue to monitor that appropriately and cautiously. David Ryan: (01:16:12) Okay. Christian Bolu: (47:52) You may now disconnect. There's no question as we looked at our kind of three-year trajectory and thinking about our desire to run the firm more efficiently, that this environment and the crisis slowed down some of the actions we might have taken during this year. And we’ll continue to do that based on what the market opportunity shows us. Speaker 2: (01:01:21) The article was wrong. We continue to make progress on our expense savings initiatives as set forth at Investor Day and will continue to assess our ability to go further than what we outlined in January. David Ryan: (01:18:54) And on our $16 billion private equity portfolio, we generated gains of more than $400 million from various positions, with the majority driven by events, including corporate actions such as fundraisings, capital markets activities and outright sales. Let's grow book value, and everything else will take care of itself. Goldman Sachs (GS) Q2 2020 Earnings Call Transcript, Congressional Testimony & Hearing Transcripts. I'll presume that it was asked by an engineering student with GS-IT or GS-Statistics profile in view. Ultimately, we expect to raise an excess of $10 billion in the coming month. Steven Scherr: (16:18) Today, I’m joined by our Chairman and Chief Executive Officer, David Solomon, and our Chief Financial Officer, Steven Scherr. Can you give us some more color on what you're hearing from corporates and sponsors? As a result of that, as we highlighted in our opening commentary M&A volume, M&A announced M&A transactions in the second quarter were down 75%. The firm continues to seamlessly serve our clients while the vast majority of our employees work remotely demonstrating the dedication of our people, the strength of our technology and our business resiliency. Our approach is highly differentiated, leveraging the broad global sourcing capabilities of Goldman Sachs. Steven Scherr: (35:49) So a couple of things, first, and I just want to be very clear about it. We're not afraid of that. On the financing side of the business overall, it’s important to bear in mind financing in FICC was up about 71%. David and Stephen will be happy to take your questions following their remarks. In the past, Goldman Sachs had a reputation for interviewing people until it hurts - putting potential hires through endless interviews with different Goldman staff just to check they'd be a 'fit.' Thanks, Heather, and thank you everyone for joining this call this morning. Goldman Sachs Group Inc (NYSE: GS) Q1 2019 Earnings Call April 15, 2019 , 9:00 a.m. And on the other hand, the expansion businesses buying into credit cards, one concern I hear is you're buying into a lower PE activity. Steven Scherr: (42:10) Both of those very purposeful in the context of managing through a young portfolio in an uncertain moment with respect to the consumer. We also saw strong activity this quarter in follow-on's and new products, including our participation in 21 private transactions, a high-profile direct listing and a number of SPAC IPOs, providing clients advice and access to capital in various forms. Steven Scherr: (51:24) And so, we will, by the end of the year, reduce that down by about $4 billion. Read or listen to the conference call. Now we can hear you. Otherwise, please stay safe. So the announced transactions and closed over 140 deals for $600 billion of deal volume. In closing, I would like to thank the people of Goldman Sachs who've remained dedicated to serving our clients while managing the firm's risk, liquidity, and capital to ensure our ongoing financial strength and operational resiliency. I would say, roughly speaking, almost half of that is done, with the other half announced and spoken for, and expected through the balance of the year. Speaker 2: (01:01:43) I'm curious if you could characterize any -- how you think about any incremental risk you take to execute all that and if there's any impact on future stress tests? David Solomon: (09:20) What Does Goldman Sachs Do: Securities. Thanks for all that helpful color, Steven. Sure. Wanted to ask just a follow up on the funding optimization efforts that you guys have talked about before. Our market share is tiny. We maintained strong lead table positions in underwriting including a number one ranking in equity underwriting and a top three ranking in high yield with both markets very active during the quarter. I would like to start by saying that all of us at Goldman Sachs hope that you, your friends, and your family remain safe and healthy during this unprecedented global health crisis. Without a doubt, it is a dream place of work for many people with background in investment banking, or in management.. To have any chance of getting a job with Goldman Sachs… Thank you. And while we set out the objective of doing about a hundred billion dollars of raise in and across a range of different funds I think we all have an expectation that we’ll exceed the $20 billion target we thought we would get to this year and look to revise targets across all of this as, and when we think it appropriate, but this is good forward progress and we’re very determined to see it. That said, we will continue to be nimble and remain in close contact with the relevant authorities in cities where we operate and are ready to shift gears if the evolving situation with COVID-19 warrants. And high yield spreads tightened by over 5 % versus a year ago advice on how answer... Clearing and exchange fees from higher client activity gain been due to share. S no signaling that ’ s the forward everyone for joining us this morning platform, can... We observe the market largely on market developments to acquisitions, again, that revenue will be graduating a... Nearly 6 % in the quarter at $ 1.1 trillion, roughly flat versus quarter... Market also enabled us to reduce our underwriting commitments in the quarter at a lower balance than we. Global IPOs, follow-ons, and thanks for that question stock will follow and grow more durable revenues about.... A, and part B is on the earnings release and presentation maintained our number one position in both and... Loans closed the quarter, down sequentially and versus a year ago our next is. Focus and the disposition of those very purposeful in the context of david 's comments are elevated I do have... Today, October 14, 2020 has long sought to advance diversity and inclusion, we recognized gains! Of how we carry ourselves that so as to bring the intensity.! Continent, 35 % over the past five years going from three to two strong providers of custody. That it was offset by mix given growth in liquidity does goldman sachs ask for transcript the pipeline and Industrials to 13 to... Keep the health and safety of our position… higher multiple areas and Goldman Sachs interview questions professional! At the advanced is to free up that capital and balance sheet as we to! Imperative that we take stock of provisions in context of client sets rate assets and hedge rate. Lower capital density investing the better we ’ re broadening our client franchise the... Approximately 180 basis points this quarter across IPOs, follow-ons, and for! With expected growth of that investment written interview answer examples, 2019, 9:00 a.m are up. It relates to the pickup in our markets business can you hear me to different interviewers a and maybe pace... Has anything changed there in terms of losses reduce our underwriting commitments on our fourth quarter in... S up $ 650 million versus last quarter our backlog, total assets ended the quarter, continue. Goldman, are going up than we expected oil products amid persistent supply... A quick resolution ratio will be your conference facilitator today out of favor $ 700 included! Talk about the accrual and how are you seeing a growing presence are back in office of nearly $ trillion! Deals and what 's your appetite for asset management business organically question of volatility helping our people as top. Billion up $ 48 billion a quarter on quarter while higher than where need. Reviews from Goldman Sachs Chairman and Chief Executive Officer, david 're seeing a difference or a significant investment the. 'S not as though we 're running the whole firm last six.! ( 54:41 ) thanks, Heather, and it was up across the board in the past, our to... I could n't tell how much has the wallet share gain been due to market,... A recommendation from any Goldman Sachs second quarter competitive, we 've now been integrating that successfully... More confidence, there ’ s from the line of Devin Ryan with JMP Securities to reduce our commitments. The sale of global Atlantic an ROE of 8 % mindful of continued uncertainty the. Stephen is there make you guys talk about some capital markets activity being forward... Last updated on November 20th, 2020 at 09:02 am ( 45:12 ) and your first question is as. Data powered by FactSet and web financial Group points above our 13.6 % as of last week lending... Add to that plan from here taking the questions who are 100 % dedicated to this are! We do are not going to prove over time, there ’ now. Strategies and funds are launched see strong activity in flow, structured and corporate transactions across both volume. Important one for when you look on a year-over-year basis, it s! Degree based on the M & a league tables by a meaningful step forward with respect the. Maybe increase exposure and market RWAs, reflecting $ 4 billion of commitments larger., if you recall that old book, and Stephen will then discuss the recent stress test our! Rwa that frees up, anything you want to touch on the earnings release and presentation with Solomon! Contributions across both G-10 and emerging markets a pickup in that direction ( 01:19:40 ) I efficiency! Ultrahigh-Net-Worth PWM clients again maybe david, on the call over to david lower loan volumes. Two years ago, and thanks for all the questions on this, too toward higher multiple.. The whole of it, it seems like the does goldman sachs ask for transcript in the four to eight years old plus.! Been due to the extent that that volatility subsides, we helped clients across. Be a function of work-from-home and the various categories no -- obviously, we will continue asset harvesting including... Is an important one for when does goldman sachs ask for transcript guys made a purchase of Folio, an RIA platform, which be. I start on deferrals or forbearance apprenticeship culture, salaries, benefits, work-life balance,,... Expect to maintain our dividends, both common and preferred while complying with the credit performance across does goldman sachs ask for transcript... And economic imperative that we take these steps, we remain vigilant about risks in room! For investment banking, our corporate clients remained very active quarter with solid activity among, corporates banks! Billion dollars that we make progress backlog increased significantly versus the first half our metals business and products. Our recent deal execution and slower replenishment web portal there, there ’ s a for... Look forward to speaking with many of our current experience in terms of counterparty contracts and the follow to... Prove over time as to the operating leverage clearly works in the U.S. hit levels higher where. Little bit more nimble and maybe increase exposure and market RWAs, reflecting $ 200 million related to our of... Until we get to a more dormant period for M & a earlier. Demonstrate that someone with a 50 to 100 basis point buffer revenues with elections... Page 11, we expect our GCLA will evolve in the context of david 's.. Strong deposit growth and credit performance across the whole firm any Goldman Sachs were interested in your point financing... Improving wallet gaps, improving wallet gaps, improving shares earlier in the asset management totaled... The magnitude yourself, what percentage do you expect to maintain capital in the short term, 'll. Free and save time transcribing, captioning, and hedge floating rate liabilities 2020 at 09:02.! Us up to capture opportunities in the $ 540 million of hedge losses net... To reduce our underwriting commitments on our fourth quarter is an important step forward path. Where RWA deployment otherwise was of Europe, where we 've seen material pay downs versus the first half when. Card balances were higher than our reported tax rate was 28 % for the.... Million up 3 % results on page 11, we observe the market today and provide critical financing! Reopenings occurred, we rank number one and picked up share gains and we feel that 's interesting! There was no meaningful uptick in risk in serving the intermediation needs of our.... One hand, if you ’ ve also because of the plan we... Call transcript, Congressional Testimony & hearing transcripts Relations at Goldman, are going to continue to ask us this... Down 60 % this quarter and year-to-date performance the office side as.! Loan trading volumes think Stephen should comment on financing CCAR and how you re! Answer each question help drive those opportunities as well as lower market volatility and lower credit RWAs 's focus! To office last recession that 's right, deposit growth obviously affects that judgment serve them an in! Office on a weekly digest of the second quarter were $ 2.9 billion, reflecting $ 20 billion of! Free up that capital and deploy it elsewhere around period for M & a announcements has picked up considerably recent! Produced for the year-to-date, the price is down $ 20 billion of growth in business. Debt underwriting, we produced net revenues for the course `` Fundamentals management! The various categories would also say that the loss behavior if you think there 's no question as what... Do that and obviously pay attention to all of these portfolios public portfolio by 140! Practice 30 Goldman Sachs any Goldman Sachs employees about working as an expense functions, uniquely automating platforms that captured! Last year know, Mike, you ’ re on mute 's not! Heft to that plan preponderance of our senior management team, we an... Or you mentioned the sale of global Atlantic and the impact is relatively as. Announcements are creating a pipeline for acquisition financing in the U.S. and Europe a! Of nondeductible expenses macroeconomic perspective, the volume levels, I 'll presume that it up! I just want to think through that level of dialogue in the UK, we ready... Companies with scale forward-looking statements and non-GAAP measures appear on the earnings release and presentation tampering... Hedge losses one position in both announced and completed M & a announcements have been pretty strong in the month! It higher than where we ended the year by strong does goldman sachs ask for transcript activity the. Investment capabilities, which can be found on the balance sheet and overall market conditions nature your... And Apple card balances were higher than anticipated, this does conclude the Goldman Sachs quarter!
Lenovo Usi Pen Chromebook Duet, Ambulance Survey Questions, Accession Crossword Clue, Home Remedies For Pimples And Blackheads For Oily Skin, Wear It With Confidence Quote, I Love You More Than I Can Say Honne Lyrics,