Mike Carrier: (58:53) We began that focus two years ago, and I think we're really getting results from that investment. Equity financing revenues of $742 million declined 14% year over year, driven by tighter spreads, lower average client balances, and weakness in Europe given recent dividends cancellations. David Solomon: (09:20) In asset management we recognize gains from market appreciation and our public investments continued to harvest private equity positions and experienced the partial recovery in our credit portfolio from the first quarter. We expect our GCLA will evolve in the context of client demand for our balance sheet and overall market conditions. Why are they using Goldman Sachs and what’s the opportunity to do more with them? We also provide insight into our $21 billion portfolio of CIEs, primarily comprised of real estate investments, of which $12 billion are financed predominantly by non-recourse debt. While we benefited from lower expenses of approximately $100 million from the temporary reduction in travel, entertainment and advertising expenses due to COVID-19, we also saw an approximately $90 million reduction in litigation and professional fees and a roughly $50 million reduction in double occupancy related cost from our new facilities in London and Bengaluru. In closing, I would like to thank the people of Goldman Sachs who've remained dedicated to serving our clients while managing the firm's risk, liquidity, and capital to ensure our ongoing financial strength and operational resiliency. Everyone’s focused on their businesses and their stakeholders and the shareholders. And I think there's a disconnect between the lumpiness of your capital markets revenues with the annuity-like nature of your customer relationships. Okay. Market deposits now again through the retail channel are at 92 billion, that was up $20 billion in the second quarter. And I think that will continue. We also believe the upcoming U.S. election, the variability of economic growth outlook, and the 2021 global LIBOR transition may bolster client activity across markets. We had different divisions internally. Hey, good morning. We continue to prudently risk manage these portfolios and if moderated growth relative to initial budget estimates. Steven Scherr: (53:45) During this period, we maintained robust levels of liquidity and capital. Hi. We maintain a strong financial profile and remain agile with our balance sheet as we continue to serve our clients. Thanks. Or was there something more going on? But when you look at our vision for what we're trying to do in building a digital consumer platform that marries our strong expertise in wealth, while also providing a digital experience for general banking services for consumers, we're committed to it, we believe in it, but we want to be perfectly clear. Funded consumer loan balances remained stable at $7 billion, of which approximately $4 billion were from Marcus loans and $3 billion from Apple Card. I'm just curious if that implies any focus and shift in the business or just any color around implications there to strategy or how the business is run. We maintain strong liquidity levels with our global core liquid assets averaging a record $290 billion. It’s higher in the consumer portfolio. In FICC intermediation, we saw elevated client flows with all five of our businesses increasing versus last year. One other question is you mentioned the sale of Global Atlantic. In Investment Banking, our corporate clients remained very active in raising debt and equity capital. You've had a focus on growing book value. I think one of the reasons we felt comfortable that we could build a platform and attract clients to it, if we built a good platform, is that we have relationships with all these clients. In Asset Management, strong growth was driven by higher management and other fees, as well as gains from our long-term equity and credit investments, following a more challenged first half of the year. Okay. During the second quarter, the S&P 500 rallied by 20% marking its best quarter since 1998, while broader global equity markets rose a similar amount. By the way, I say that not just simply in the context of an attractive market valuation in which to sell, but equally in the context of the kind of broader, strategic mission we've been on which is to lower the balance sheet intensity and capital intensity of that as we shift to more third-party investing itself. Sure. Just looking at the stock, the price is down $20 year-to-date. I’ll now pass the call over to David. Steven Scherr: (44:03) Maybe sticking with the trading question, Stephen, you gave some pretty interesting color on why think trading revenues could be sustainable into 2021. Thanks, David. All earnings call transcripts on The Goldman Sachs Group, Inc. (GS) stock. So we do that and obviously pay attention to all of these ratios in the context of how we carry ourselves. Steven Chuback: (54:08) And if I’m not mistaken, I think during the Investor Day you guys mentioned, I think it was about 4 billion over a period of three years. And we expect a resume share repurchases, once permitted, consistent with our long-standing capital management policy. Convertibles also had record activity where we ranked number one. Otherwise, please stay safe. We also saw strong activity this quarter in follow-on's and new products, including our participation in 21 private transactions, a high-profile direct listing and a number of SPAC IPOs, providing clients advice and access to capital in various forms. With respect to relationship lending, we also saw a meaningful reversal of corporate commitment draws in the quarter totaling $9 billion in net pay-downs as financing conditions improved, and we helped clients access the capital markets. Equities intermediation net revenues of $2.2 billion rose 91%, aided by robust performance in cash and derivatives amid elevated client volumes. The information contained in this transcript does not constitute a recommendation from any Goldman Sachs entity to the recipient. David Solomon: (01:31) Speaker 2: (01:01:43) The business benefited from expanded market share as investment in the client franchise and our continued strategic commitment to a global business model with scale across asset classes, bolstered performance. Has anything changed there in terms of pricing, market share, and the client’s needs for you? Please go ahead. Thank you. Video created by Goldman Sachs for the course "Fundamentals of Management, with Goldman Sachs 10,000 Women". Read the full transcript here. The history of Goldman Sachs goes back to 1869, when a man by the name of Marcus Goldman set up an office for trading commercial paper in New York City. In the UK, where approximately 15% of our employees are back in office. And Apple Card balances were higher than where we ended the year. Steven Scherr: (52:35) By the way, this is of course for that part of a private portfolio not otherwise marked given other events that are going on. Yeah. David: (38:46) You set long-term initiatives to imply a business shift toward higher multiple areas. We have prepared ourselves in terms of counterparty contracts and the like. While the election is certainly something that I think will get a lot of attention over the next five months, it’s still five months away. But certainly we'd consider inorganic opportunities to grow that if we thought that they were enhancing. And so I think efficiency ratio will be a better indicator of the firm's ability to manage. All of that is subject to self-help, and we are minded to aggressively address that so as to bring the intensity down. And I think the flexibility and the agility that we can take from what we’ve witnessed in the context of the last several months only feeds our confidence in the ability to do that. But I don’t think the election cycle is yet playing a big role in client engagement. We’ve not seen the same level of activity over the course of the last five or six weeks since the beginning of June. Ms. You have a follow-up question from the line of Mike Mayo with Wells Fargo Securities. These losses damaged the bank’s reputation. In most of Europe, we're at around 50%. Our rates franchise also performed well on strong trading and high levels of client activity, as elevated volatility normalized amid coordinated global central bank stimulus. We were there for clients, particularly during the most volatile moments of the second quarter across all asset classes without withdrawing. As we go forward, we remain vigilant about risks in the markets and potential weakness in the broader economy. And when we think about comp ratio, should we think about it net of provision or gross? Glenn Shore: (37:19) I couldn't tell how much of it was actually realized. I would like to welcome everyone to the Goldman Sachs Third Quarter 2020 Earnings Conference Call. Sure. Practice 30 Goldman Sachs Interview Questions with professional interview answer examples with advice on how to answer each question. On the liability side, our total deposits decreased to $261 billion, down $8 billion versus last quarter, driven by planned roll off of higher cost broker deposits and more modest growth in retail deposits. First one, just on the efficiency ratio. Investment Banking produced third quarter net revenues of nearly $2 billion, up 7% versus a year ago. We look forward to speaking with you on our third quarter call in October. Finally, across global markets we continue to invest in technology platforms to enhance user experience and straight through processing. I would say, though, more generally, it's important to focus on the efficiency ratio of the firm over an extended period of time because as I said earlier, comp will be inevitably but one component of a set of operating expenses by which the firm is carrying itself. And one of the concerns we’ve heard from folks is the challenging M&A backdrop could very well persist, just given low levels of CEO confidence and just uncertainty around the election and future tax policy and was hoping you can give some color as to what you’re hearing from the C Suite regarding appetite for M&A and willingness to do deals and maybe what ingredients need to be in place to help reinvigorate the activity here? I hate to say it that way, but does it? Importantly, average client balances rose to near record levels. We further break down these amounts by accounting classification, sector, and geography. But one thing I know for sure is our franchise on a global basis is very well positioned to meet our client’s needs as that occurs. Obviously, at the higher end now is equally a function of volatility from a risk management point of view. Included in the $540 million of impairments was $155 million related to Hertz as the company declared bankruptcy. In Global Markets, client engagement remained high as we gained share during the year and enabled clients to manage risks across asset classes. Thank you. The more we can advance and increase the cadence on the migration to lower capital density investing the better we’ll be. Today we will reference our earnings presentation, which can be found on the investor relations page of our website at www.gs.com. In these turbulent markets, we have seen our underwriting market shares increase as clients have turned to Goldman Sachs, particularly for more complex and innovative financings where execution matters. We have had a handful of significant clients turn operational, which is obviously where the business becomes much more attractive to us. Now, as that continues, we’ll work to protect those share gains, but I’d also highlight, I still think there’s upside for us when I look across the hundred largest players in that business. Christian Bolu: (45:33) And I'm going to ask you a question that's not really your responsibility, but it goes back to the earlier question. I’m just trying to get an understanding of maybe the pace of that strategic shift. And our next question’s from the line of Christian Bolu with Autonomous. Otherwise, on a quarter-on-quarter basis, you see the positional set change, reduced exposure, certain diversification effect, which plays to the positive. We're seeing the announcements come through. While it remains difficult to predict client activity and we do not have insight into the forward opportunity, we take confidence in the market share gains experienced by the business through a deepening set of client relationships, which has been a priority for the Global Markets leadership team. On certain of the electronic platforms that we're seeing, and I would speak specifically about the credit platform, we are seeing an increasing number of our clients come to those platforms, transact on those platforms. At a high level -- Brennan, at a high level, and Stephen may comment on this, too. This impairment was the largest in the quarter, and it was offset by gains on hedges, which served as a risk mitigant. Book value is up about $10. We remain committed to the targets we set out in our Investor Day in January, but it didn't seem as we were entering the pandemic and there was such uncertainty during the bulk of this year that we should be leaning in toward driving those targets. Great. Are they kind of test driving the platform today, but there’s still kind of a huge opportunity of maybe more penetration? The strong issuance market also enabled us to reduce our underwriting commitments in the deals book. Academic Transcripts Mandatory for applicants in the following countries: Germany / Austria / Switzerland - university and high school grade transcripts, letters of reference (Arbeitszeugnisse) Italy - university and high school grade transcripts; Spain / Portugal / Denmark / Sweden / Finland / Norway / Netherlands - university grade transcripts Stephen will then discuss our third quarter results in detail. And maybe this is a question for you, David, on the M&A outlook. Engagement levels were way down, engagement levels are picking up everywhere. So in non-comp expenses, as you suggest ex litigation, our non-comp expenses are up about 9%. We may ask you for recent pay-stubs, personal bank statements, W-2s, and tax transcript among other documents to verify your self-reported income. Gains across these three segments were partly offset by a decline in our asset management segment, given smaller gains on equity investments versus a year ago. Glenn Shore: (42:52) Goldman Sachs (GS) Q2 2020 Earnings Call Transcript, Congressional Testimony & Hearing Transcripts. Good. This reflects our multi-year efforts to leverage our scale and expand while at share. Year to date, we ranked number one globally in equity underwriting as our volumes jumped to over $50 billion across more than 270 deals. We maintained our leading position as a strategic advisor of choice for our investment banking clients and our strong need table positions across underwriting markets with extraordinary volumes in both debt and equity, enabling us to pick up market share. So I think we've brought our CET1 ratio to 14.5%, really to sort of fix ourselves in a competitive position in anticipation, as I said, of the potential for volatility and higher trading over the course of the fourth quarter. We maintained our leading global position in M&A as announcements increased in the quarter from a relatively dormant period earlier in the year. And I look at our share across the hundred largest players and where we’re top three with the hundred largest players while we’ve made progress, I think we still have upside in the medium term if we continue to execute on our strategy to take more wallet share, given the strength and the breadth of our franchise, and we’re going to continue to remain focused on that. This audiocast is copyrighted material of The Goldman Sachs Group, Inc. and may not be duplicated, reproduced or rebroadcast without our consent. The third leg in that stool would obviously be a more mass affluent consumer piece. David: (01:18:14) Good morning, and thanks for taking the questions. So I think the premise of your question, Betsy strikes at the answer, which is we, we do have capital flexibility to elevate our VAR using VAR as a basis or as a metric, if you will, for extending into client needs. You referred to -- I think, Stephen, you referred to it net of provision in your prepared remarks, but in prior times, it was referred to as gross. Christian Bolu: (47:52) I think my question is rooted in my business school class when I read In Search of Excellence and it said [Phonetic] stick to your knitting. Please go ahead. Certainly, the volume levels, I think, at this moment in time are elevated. Then you have shutdowns, and you’re seeing the shutdowns like in California and elsewhere. I'm not sure if you recall that old book, and maybe it's just too ancient. Higher compensation expense reflected year-over-year growth in revenue net of credit provisions. In credit, our performance benefited from broad based client engagement and strength across investment grade, high yield and distressed as well as bank loans and made wider bid-ask margins, tighter credit spreads and high new issue volume. And is it the other geographies that’s leading to the greater engagement, or are you seeing it pick up in the US as well? Mike, an interesting development, just to amplify on David's comment, which is that even in the trading businesses, which one could argue are volatile in the context of the market. I appreciate the question. As M&A announcements declined in the quarter, the headline for investment banking was in underwriting. If we execute, I assume the stock will follow. I would say that I don’t view that four as being in any way, the limit of what we can get done. We also saw a year-over-year revenue growth in our consumer and wealth management segment as we continued to expand our private wealth high net worth and consumer businesses. Good morning, David and Stephen. So the growth in the deposit channels overall has been really, really positive. While we remain attentive to the embedded risk, we continue to be pleased with the credit performance of these portfolios. David Ryan: (01:18:54) Mike Carrier -- Bank of America Merrill Lynch -- Analyst. At a high level, the banking sector and financials broadly are well out of favor. I mean, is this the peak or I guess sufficient reserve for go-forward losses? So our base case based on what we're seeing is that this increase in activity will continue through the rest of the year into 2021. But that's not to ignore the focus and the view into comp as an expense. I watch TV and read the news like everyone else, and I’m sometimes quite surprised by how certain people are. Steven Scherr: (24:12) So the announced transactions and closed over 140 deals for $600 billion of deal volume. It was incorrect. In New York, we've seen a gradual uptick since Labor Day with roughly 2,000 people working in office as of last week. Equity market volatility also remains elevated with the average VIX this quarter more than 60% higher than the third quarter a year ago, though well below levels seen in March and April. Your next question is from the line of Brennan Hawken with UBS. Steven Scherr: (22:21) Speaker 3: (01:12:47) What should you expect? Our reported year to date efficiency ratio was 67%, which was burdened by over 5% points due to litigation. And so we’re executing now, we are in a position having grown back our capital ratio to be within narrow distance of what’s required. 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