Goldman Sachs Group Inc (NYSE:GS) Q4 2019 Earnings Conference Call - Final Transcript

Jan 15, 2020 • 09:30 am ET


Goldman Sachs Group Inc (NYSE:GS) Q4 2019 Earnings Conference Call - Final Transcript


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Stephen M. Scherr

long-term borrowings were $207 billion, down $17 billion over the same period.

Over the full year, we refinanced approximately $20 billion of parent vanilla debt maturities, with approximately $5 billion of issuance, relying more significantly on our growth in retail and other deposits, as we continue to diversify our funding sources. This trend toward deposit growth and reduction in unsecured long-term borrowings should continue.

Before taking questions, I would like to spend a moment to discuss the $5 billion organic growth initiative announced in 2017. That initiative comprised a number of important efforts on which we continue to execute, including client expansion in Investment Banking, wallet share growth in Global Markets, consumer loan and deposit growth, lending and financing deployment, and Asset Management growth. As we go forward, we will continue to execute on these initiatives. But our focus and communication will instead reflect more ambitious, firm-wide performance targets to be introduced on Investor Day.

We will not be focused on revenue targets, but rather on returns and efficiency, consistent with our broader long-term strategic plans to drive shareholder value. These targets will also reflect growth opportunities that were not included in the original $5 billion, such as transaction banking and credit cards. We look forward to discussing our new targets in detail at the end of the month.

In conclusion, our fourth quarter was strong, leading to full-year performance that was in line with the evolving macro environment, and reflective of our continued investment in new businesses. We aim to operate more efficiently and drive higher returns in the future and look forward to sharing our medium and long-term objectives at Investor Day in approximately two weeks time.

With that, thanks again for dialing in and we'll now open the line for questions.