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. 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