Goldman Sachs Group Inc (NYSE:GS) Q4 2018 Earnings Conference Call - Final Transcript

Jan 16, 2019 • 09:30 am ET


Goldman Sachs Group Inc (NYSE:GS) Q4 2018 Earnings Conference Call - Final Transcript


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Good morning. My name is Dennis, and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs Fourth Quarter 2018 Earnings Conference Call. This call is being recorded today, January 16, 2019.

Thank you. Ms. Miner, you may begin your conference.

Heather Kennedy Miner

Good morning. This is Heather Kennedy Miner, Head of Investor Relations at Goldman Sachs. Welcome to our fourth quarter earnings conference call. Today, we will use a new earnings presentation which can be found on the Investor Relations page of our website at No information on forward-looking statements and non-GAAP measures appear on the earnings release and presentation. (Technical Difficulty) duplicated, reproduced or rebroadcast without our consent.

Today on the call, I'm joined by our Chairman and Chief Executive Officer, David Solomon; and our Chief Financial Officer, Stephen Scherr. As noted, on the agenda, on Page 1 of the presentation, David will provide introductory remarks about our strategic priorities, perspectives on the macro-environment and an update on 1MDB. Then, Stephen will walk through our financial performance. They'll be happy to take your questions after that.

I will now pass the call over to David. David?

David M. Solomon

Thanks, Heather. And thanks to everyone for joining us this morning. I'm very happy to be here with you and I look forward to joining this call on a more regular basis.

I'm going to start off this morning by reiterating that I'm fully committed to an active and ongoing dialogue with our shareholders and our broader stakeholders. I'm excited about our new call format and presentation, which is an initial step as we continue to enhance engagement and disclosure.

As shown on Page 2, it is important to underscore that our overarching priority is to execute our core mission, serving our diverse client franchise which includes corporations and governments, institutions and individuals. Executing on our client-centric model will drive long-term sustainable value creation for shareholders. We remain committed to delivering a full range of services to our clients, including advice, market liquidity, investment management and financing.

As many of you know, John, Stephen and I are conducting a comprehensive front-to-back review across each of our businesses including three-year forward plans to identify opportunities, to strengthen or expand our client footprint and to operate more efficiently. We are also pursuing new ways to deepen our existing relationships and expand our client footprint by developing new products and business platforms.

As our strategic business reviews are progressing, let me highlight some early findings, which is shown on the right side of Page 2. Starting with our market making business in FICC and Equities, we have spent a significant amount of time evaluating all aspects of our businesses including our delivery model with a focus on providing best-in-class client experience and execution. To achieve this, we will continue to invest in automation and platform enhancements. We are also actively engaged in pursuing opportunities to grow our addressable market by broadening client relationships and improving our mix of products, services,