Goldman Sachs (GS) Targets Mid-Teens or Higher Returns Longer Term

January 29, 2020 7:47 AM EST
  • To Announce Medium-Term Target of >13% ROE / >14% ROTE
  • Targets Mid-Teens or Higher Returns Longer Term

The Goldman Sachs Group, Inc. (NYSE: GS) will present today on the firm’s strategic direction and its path to achieve new medium- and longer-term financial targets. The firm believes that by growing and strengthening its existing market-leading businesses, diversifying the products and services offered, and operating more efficiently, Goldman Sachs is positioned to drive long-term growth and shareholder value.

During the event, Chairman and Chief Executive Officer David M. Solomon and the firm’s senior leadership will discuss Goldman Sachs’ core values, differentiated platform and diverse opportunity set. Executives will present on the firm’s competitive advantages and continued investment, which have created a firm that will produce higher and more consistent returns over the long term.

“For more than 150 years, Goldman Sachs has partnered with our clients across the world to advance their success, which is a commitment that has endured through to today,” said Mr. Solomon. “We are resolute in fulfilling our purpose of putting capital and ideas to work to evolve organizations, accelerate global economies and amplify personal prosperity. We believe that this deep commitment, combined with the talent of our people and our risk management culture, positions us to deliver higher, more durable returns for our shareholders over the long term.”

The firm’s financial targets, to be discussed in greater detail today, are designed for the medium term, defined as three years. Those targets are as follows:

>13% ROE / >14% ROTE
~60% efficiency ratio
13-13.5% CET1 Ratio

The path to these targets will be described in detail today across opportunities for increased revenue, optimized funding and enhanced efficiencies, which will be used to fund growth investments.

Longer term, Goldman Sachs will seek to achieve returns in the mid-teens or higher as certain of its newer businesses, such as Transaction Banking and Consumer Banking, mature and the firm expands its third-party Alternatives Investing business and Wealth Management offering.

Mr. Solomon noted, “We are taking real and significant steps to make Goldman Sachs more transparent and easier to understand. This investor day reflects our ongoing commitment to providing the market with a clear articulation of our efforts and objectives, with targets against which we will be held accountable. We are committed to being open and accessible as we seek to evolve our firm, invest for growth and execute to deliver on our financial targets.”

The conference will begin at 8:00 a.m. (ET). Attendance in person is by invitation only. A detailed agenda, presentations and access by the general public to live audio and video via webcast are available on the firm’s website at A replay of the webcast will be available after the event on the same website.

Please direct any questions to Goldman Sachs Investor Relations, via e-mail, at [email protected].

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