By Lananh Nguyen and Saeed Azhar
NEW YORK (Reuters) - To listen to Goldman Sachs Group Inc chief executive David Solomon, the bank is doing "great," while skeptical investors wonder what comes next.
Days after Goldman reported disappointing profits that sent shares tumbling 6%, and months after it stepped back from a money-losing foray into Main Street banking, Solomon sat for an interview with Reuters in Davos, Switzerland where he highlighted the firm's hits -- and downplayed its misses.
"Good companies should invest and innovate and try new things. And by the way, when you do, you're not going to always get it right," Solomon said at the World Economic Forum's annual gathering last week.
He then reeled off Goldman's growth numbers: average revenues up 44% over a three-year period, a 39% jump in book value per share since 2019 that outpaced peers and a bigger dividend than rivals.
The company is being "prudent" on expenses by laying off thousands, Solomon said. It will also shed some of the $59 billion of alternative investments that weighed on earnings.
But shareholders want to know more about the Wall Street giant's plans after results fell short of expectations and one unit lost $3 billion over three years.
Solomon offered few specifics on future strategy, but those details may come at the company's investor meeting on Feb. 28 in New York.
"Investors remain skeptical," said Joe Rava, an equity analyst at "abrdn, which owns shares in the bank.
David Konrad of Keefe, Bruyette & Woods was one of several analysts who recently cut Goldman's share price target, noting that it suffered from "a perfect storm of declining revenues in a challenging market."
And for UBS analyst Brennan Hawken, who rates Goldman at neutral, the idea of buying the stock on expectations of a higher price-to-earnings ratio "is really, really hard right now."
Still, Goldman shares are up 3.6% over the past year, outperforming the S&P 500 banking index and peers.
Since taking the helm in 2018, Solomon has tried to diversify Goldman beyond its traditional powerhouses of trading -- which languished after the 2008 financial crisis -- and investment banking. But those divisions have become even more dominant, comprising 69% of the firm's revenue at the end of last year, versus 58% the year Solomon took over.
The CEO also championed Marcus, a retail banking business that faltered even as it attracted more than $100 billion in deposits.
Goldman's moves into consumer lending and transaction banking were "head scratchers," said Kush Goel, senior research analyst at asset manager Neuberger Berman, which owns the bank's stock. Instead, it should have followed rival Morgan Stanley, which earns a steady stream of income from wealth-management fees, he said.
Goldman's asset and wealth management unit generated 34% of its revenue in the fourth quarter, while Morgan Stanley derived 63% of its revenue from comparable divisions.
"Goldman Sachs has set a very clear strategic direction," said Tony Fratto, a company spokesman. The bank "is making strong progress on that vision" by bringing in greater fees from asset and wealth management, maximizing its position in banking and markets, and seeking pretax profits for platform solutions, he said.
Goldman's strengths in dealmaking and trading also make it more vulnerable to economic and market volatility than competitors, said Hawken at UBS.
Solomon, who rose to the top job from investment banking, said that division is "doing great," despite fees falling 48% last year as deals dried up. "There's no capital markets opportunity -- that's not permanent," Solomon said.
In October, Goldman scaled back ambitions for Marcus by placing it under the newly-merged asset and wealth division. It also swept parts of the business into a new unit called platform solutions, which houses transaction banking, credit cards and financial technology.
While platform solutions made up only 3% of Goldman's revenue, it accounted for about 64% of the $2.72 billion the bank set aside last year for potential credit losses. The company said it was required to boost provisions to meet accounting standards.
David Wagner, a portfolio manager at Aptus Capital Advisors, said "investors will probably need some hand holding" to see the path to greater profits.
Jim Lebenthal, a partner at Cerity Partners who manages client portfolios including shares of the Wall Street behemoth, said it should play to its strengths.
"Going back to what has made Goldman great for decades will allow the firm to reset and recover," he said.
(Reporting by Lananh Nguyen and Saeed Azhar; Additional reporting by Niket Nishant and Paritosh Bansal; Editing by Anna Driver)
Awesome tips. Kudos!
https://essaywritingserviceahrefs.com best website to buy essays
digoxin 250 mg drug purchase lanoxin order molnunat for saleREPLY
Amazing stuff. Thanks a lot.
buying essays online caught can i pay someone to do my essay paying someone to write an essay
buy digoxin online cheap purchase micardis pills molnupiravir 200mg cheapREPLY
buy amoxicillin 250mg generic stromectol usa ivermectin 1 cream 45gmREPLY
carvedilol 25mg uk amitriptyline 10mg uk buy elavil 10mg for saleREPLY
This is nicely said! .
can i just not do my homework my child refuses to do homework i need motivation to do my homework
buy priligy 60mg sale buy generic priligy domperidone caREPLY
order alendronate generic nitrofurantoin 100 mg canada buy motrin 600mg for saleREPLY
buy indocin 50mg online cheap brand tamsulosin 0.2mg brand cenforce 50mgREPLY
With thanks, Loads of stuff.
book blurb writing service are there any good essay writing services history essay writing service
pamelor without prescription order paxil 10mg online paxil 20mg drugREPLY
With thanks! Loads of postings.
my favorite writer essay custom essay writer how to write an essay about my family
buy doxycycline 100mg pills purchase doxycycline generic methylprednisolone cheapREPLY
Well spoken genuinely! .
i cant write my college essay pay someone to write my essay for me write a essay
pepcid online buy order famotidine pills mirtazapine 30mg usaREPLY
Superb tips. Many thanks.
help with college essay help me essay history essay helper help write an essay
thesis research phd thesis or dissertation thesis statement expository essay write your thesis statement
on writing the college application essay https://essaypromaster.com
Fantastic material. Appreciate it!
pay to write essay best place to buy essays buy essay paper custom research papers for sale
Nicely put. Regards.
easy essay writing best online will writing service best online essay writing service custom essay writing services canada reviews
Wow all kinds of fantastic facts.
research paper helper help on writing a research paper term paper essays research proposal papers
did not do my homework template coursework writers coursework writing services hypnotize me to do my homework
management dissertation https://paperwritingservicecheap.com
cost ropinirole 1mg rocaltrol ca trandate tabletREPLY
You actually suggested this superbly!REPLY
pay someone to write your essay buy essays uk buy an essay essays order
support thesis statement cambridge thesis binding service thesis statement for persuasive essay thesis statement about yourself
effective college essays https://buycheapessaysonline.com
You actually reported it well.REPLY
term papers research study proposal best place to buy a research paper pay for term paper
You actually stated it effectively!REPLY
essay writer no plagiarism best paper writers cheap paper writers order a paper online
college essay thesis descriptive essay thesis statement master thesis writing service india impact of service quality on customer satisfaction thesis
writing a persuasive essay https://domyhomeworkformecheap.com
Whoa loads of wonderful knowledge!
buy essay papers online buy essay online buy a narrative essay how much to pay someone to write an essay
writers at work the essay who can write essay for me what do i write my college essay on write an email for me
best custom essay https://englishessayhelp.com
buy nexium capsules clarithromycin 500mg price lasix 100mg oralREPLY
fenofibrate 160mg canada overnight viagra delivery sildenafil citrateREPLY
Nicely put. Appreciate it.
pay to write papers online research paper writing service reviews of academic paper writing service paper writer services
You said this well.REPLY
write my essay in 1 hour who can write my essay what should i write my this i believe essay on need an essay written for me
Very good postings. Thanks.
pro essay writing service legit essay writing services professional essay writing service top ten essay writing services
help with master thesis thesis research paper phd thesis database find the thesis statement
pay people to write essays https://argumentativethesis.com
Regards, Lots of stuff!
custom business plan writing service essay writing jobs writing a hook for an essay thesis proposal writing service
dissertation writing help uk writing introduction dissertation dissertation writers in delhi dissertation services
reflective writing essay https://bestcheapessaywriters.com
order minocin online oral gabapentin 800mg hytrin oralREPLY
Fantastic postings. Many thanks!
masters dissertation help doctoral dissertation custom dissertation writing uk dissertation results help
buy tadalafil sale Low price cialis sildenafil 100mg genericREPLY
You actually expressed this well.REPLY
dissertation express literature review dissertation help proposal writing companies dissertation paper writing service
You actually stated it superbly!REPLY
can you use i in a thesis statement find the thesis statement philosophy paper thesis thesis on service delivery and customer satisfaction pdf
history essay writer essay online writer write my argumentative essay do my essay for me free
dissertation phrases https://essaywritingservicehelp.com
Whoa all kinds of terrific advice.
i finished my homework what do i do now do my college algebra homework free do my homework for money who wants to do my homework
Truly a good deal of valuable knowledge!
buying papers online college anonymous custom paper writing service buy cheap papers online СЃollege paper writing service reviews
Valuable stuff. Kudos!
college essay buy order admission essay college essays for sale buy an essays
college paper for sale pay someone to do essay buy narrative essays online buy narrative essay
college essay checklist https://topswritingservices.com
glycomet online buy tamoxifen for sale nolvadex orderREPLY
Many thanks! I enjoy it!
what i want to do with my life essay write my program for me writers for essay an app that writes essays for you
tadalafil 20mg cheap buy erection pills best over the counter ed pillsREPLY
You revealed this perfectly.REPLY
writers of the federalist papers write my business paper i need a paper written for me paper writing company
dissertations online writing a doctoral dissertation dissertation research phd thesis helper
how to write college essays https://essaywriting4you.com
You actually suggested it adequately!REPLY
buy essays online reviews buy admission essay order cheap essay pay to do my essay for me
order clomiphene 100mg sale buy atorvastatin sale order prednisolone for saleREPLY
Kudos. I enjoy this!
buy essay writing online safe essay writing service undergraduate dissertation writing service college essay writing help
Valuable facts. Kudos.
online paper writer write my paper in apa format write my paper fast writers of the federalist papers
outline writing service professional resume writing service lafayette la essay writing topics in english psychology essay writing service uk
psychology essay writing https://helpwithdissertationwriting.com
provigil price buy modafinil 200mg for sale order phenergan online cheapREPLY
cheap accutane 20mg order generic ampicillin buy ampicillin 500mg without prescriptionREPLY
brand deltasone 40mg isotretinoin for sale amoxicillin tabletsREPLY
ivermectin for humans buy deltasone online cheap deltasone costREPLY
cheap sildenafil 50mg order pregabalin buy proscar 5mg genericREPLY
buy accutane 20mg buy absorica for sale order zithromax 250mg saleREPLY
ventolin sale buy synthroid 75mcg sale order amoxiclav for saleREPLY
order prednisolone 5mg online buy prednisolone generic furosemide 40mg pillREPLY
You actually explained it perfectly!REPLY
i need someone to write my paper essay writers online write my college papers for me write my apa paper
do my essays how to write an about me for blog can i pay someone to do my essay write my essay online
write the essay https://customthesiswritingservice.com
You have made your stand quite nicely..
custom paper writer someone write my research paper write my college paper for me paper writers online
You actually reported that perfectly!REPLY
help with dissertation need help writing a dissertation help with dissertation writing write a dissertation abstract
Many thanks, A good amount of data!
research paper introduction help prepare a proposal buy college term paper research proposal help
dissertations online writing dissertation help buy dissertation paper help with mba dissertation
fake essay writer https://bestonlinepaperwritingservices.com
provigil 100mg over the counter buy metoprolol 50mg buy lopressor 50mg pillsREPLY
You said that effectively!REPLY
help me write a research paper research paper writing help college term paper research proposal apa
doxycycline 100mg without prescription buy doxycycline order acyclovir genericREPLY
buy dutasteride dutasteride for sale online orlistat pillREPLY
Wow a good deal of superb data.
help on essays cheap essay writing help help with writing an essay help for essay writing
Amazing forum posts. Thanks a lot.
essay writing companies unite will writing service cheapest essay writing service uk essay service reviews
umi dissertation services search dissertation proofreading services cheap dissertation help write your dissertation
average length of college essay https://helpmedomyxyzhomework.com
propranolol canada fluconazole cheap order coreg 6.25mg onlineREPLY
buy ditropan 2.5mg online oxybutynin 2.5mg drug purchase trileptal without prescriptionREPLY
Great information. Thanks a lot!
custom paper writing service writing as a service research paper writing services academic essay writing
ai essay writer write a research paper write my term paper cheap do my papers
college essay paper https://essaywritingserviceahrefs.com
imuran usa micardis 20mg oral purchase naprosyn onlineREPLY
Very good data. Regards.
product service design thesis analytical thesis thesis paper find the thesis statement
Thank you. Excellent stuff!
thesis on service delivery and customer satisfaction synthesis scanner not working thesis correction service thesis paper writing
best paper writing service reviews best college research paper writing service custom research paper writing services buy papers for college online
best college essay ever written https://argumentativethesis.com
Awesome write ups. Appreciate it!
dissertation help services purchase dissertation english dissertation help online dissertation writing service
order zocor 20mg for sale sildenafil for men oral sildalisREPLY
Many thanks. Quite a lot of data.
writing service essay professional paper writing service best assignment writing service expository essay writing service
thesis state thesis on service delivery and customer satisfaction write my thesis statement for me thesiss
umi number https://writingthesistops.com
cefdinir 300mg canada order cefdinir pill pantoprazole 40mg cheapREPLY
Many thanks! Loads of write ups.
write my research papers proposal write custom college term papers order custom term paper
Point certainly taken!!
dissertation abstract help writing the dissertation help with dissertation dissertation methodology
college admissions essay help college essays help essay online help help writing college application essay
how to write evaluation essay https://argumentativethesis.com
Really many of wonderful info!
buy university essays pay to write essay cheap essay papers for sale can i pay someone to write my essay
order dapsone 100 mg pill mesalamine 800mg canada purchase tenormin genericREPLY
You actually said it really well.REPLY
essay writing service reviews best university essay writing service will writing service safe essay writing service
paper writing services best the best paper writing service paper writing service college cheapest academic writers paper writing service
custom essay company https://essaytyperhelp.com