The Goldman Sachs Group, Inc. (GS) Presents at Goldman Sachs 2023 US Financial Services Conference (Transcript)

Financial Data and Key Metrics Changes - The macroeconomic outlook is evolving with inflation coming under control globally, leading to less volatility across asset classes and tightening credit spreads [3][4] - Investment banking activity is currently trending below historical averages, but the franchise remains healthy with strong market share in M&A and equity [14][19] Business Line Data and Key Metrics Changes - The equities business is performing better year-on-year, while FICC and equities as a whole are trending nearly flat year-over-year [13] - The advisory business and M&A activity are cyclical, with some recent major merger deals in the natural resources sector indicating renewed client interest [6][7] Market Data and Key Metrics Changes - Non-investment grade debt capital markets have reopened post-summer, but activity is still tempered by macroeconomic conditions [8][11] - Elevated charge-offs are being observed in the credit portfolio, which is expected and modeled [15][16] Company Strategy and Development Direction - The company is focused on growing its two major client franchise businesses: Global Banking and Markets (GBM) and Asset and Wealth Management (AWM) [22][29] - Strategic efforts include reducing historical principal investments in real estate and enhancing the client experience across the portfolio [37] Management's Comments on Operating Environment and Future Outlook - Management acknowledges pockets of uncertainty, particularly geopolitical risks and upcoming elections, but sees opportunities for clients to adjust their portfolios [4][5] - Confidence is building for improved market conditions moving into 2024, with expectations for a clearer runway for transactions [9][12] Other Important Information - The company has made significant progress in managing expenses, with a focus on driving efficiencies and addressing non-compensation costs [20][21] - The firm is actively engaged in discussions regarding Basel III proposals and is preparing for potential changes in capital requirements [38][39] Summary of Q&A Session Question: No formal Q&A for this event - There were no formal questions or answers during this conference call [47]