Goldman Sachs CEO sees growth opportunity in ‘asset management’

By:
on Feb 28, 2023
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  • Goldman Sachs held its second-ever investor day on Tuesday.
  • Highlights from CEO David Solomon's interview with CNBC.
  • Goldman Sachs stock is down 2.0% on the intraday chart.

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Goldman Sachs Group Inc (NYSE: GS) opened down today after CEO David Solomon confirmed that the Wall Street bank was considering “strategic alternatives” for its consumer businesses.

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CEO Solomon’s take on asset management

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Speaking with CNBC, the chief executive also added that the next leg of growth for the financial services behemoth was likely to come out of asset management.

The real story of opportunity for growth for us in the coming years is around asset management and wealth management. We’re running the fifth largest active asset manager in the world.

He agreed that the bank failed to execute well in expanding its footprint in consumer finance. Goldman Sachs now plans on searching for buyers to offload a portfolio of consumer loans.

Shares of the multinational are currently up more than 4.0% from its recent low.

Goldman Sachs held investor day on Tuesday

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Goldman Sachs hosted its second-ever investor day today, in which, it reaffirmed the target for return on tangible equity (ROTE) of 15% to 17%.

Last month, the investment bank reported its worst earnings miss in about a decade as Invezz posted HERE. Still, CEO Solomon said:

One of the reasons why our stock on a relative basis has performed reasonably well over the last few years is that we’ve grown the earnings of the firm materially. Our EPS in 2022 was 40% more than before our last investor day.

Wall Street currently recommends buying Goldman Sachs stock as well and sees upside in it to $400 a share on average. In January, the New York-based company also said it will lay off about 3,200 of its worldwide employees.

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