Goldman Sachs CEO David Solomon mentioned Tuesday that asset administration and wealth administration can be the expansion engine for the financial institution after his foray into client finance failed.
“The true story of development alternative for us over the approaching years is round asset administration and wealth administration,” Solomon informed CNBC’s Andrew Ross Sorkin. Solomon mentioned Goldman was already the world’s fifth-largest lively asset supervisor.
“There’s an actual alternative for us on the agency to make the agency extra sustainable,” Solomon mentioned.
He additionally acknowledged that the corporate didn’t “execute nicely” on components of their client push, however mentioned that administration would mirror and be taught from the episode.
Goldman was scheduled to carry its second ever investor day on Tuesday. The agency launched a slideshow for the net occasion, wherein it gave up to date targets for development in its asset and wealth administration division and a 2025 break-even goal for its money-losing platform options division.
It additionally reiterated its goal of 15% to 17% return on tangible fairness, a key metric tracked by financial institution traders.
Through the opening remarks of his investor convention, Solomon mentioned the financial institution was weighing “strategic choices” for Goldman’s client platforms.
That might imply one other layoff from retail banking if Goldman decides to promote its GreenSky lending enterprise, which it acquired final yr for $2.24 billion, or restructure its card agreements with it. Apple Or Common Motors,
An individual with information of the matter mentioned it might resolve to do nothing amid efforts to make the division worthwhile.
The disclosure seems so as to add extra uncertainty concerning the financial institution’s technique going ahead round its smallest enterprise. When an analyst requested Solomon concerning the strategic relationship between client lending and different operations, the CEO mentioned nothing additional than what he is already mentioned.
“I recognize that everybody needs extra solutions on client platforms and their trajectory going ahead,” Solomon mentioned.
In response to a different query, Solomon mentioned the financial institution was not searching for partnerships past the Apple and GM card merchandise.
Requested by a 3rd analyst concerning the timing of attainable strategic choices for the patron unit, Solomon appeared baffled by the query.
“I do know all people needs solutions to issues,” Solomon mentioned, drawing scattered laughter from the gang. “Clearly I can not reply that.”
Mark Nachman, world head of asset and wealth administration, mentioned Goldman additionally plans to discover a purchaser for the portfolio of client loans created by the now-defunct Marcus Lending enterprise.
Shares of the New York-based firm have been down 2.1% in afternoon buying and selling.
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