Goldman CEO Says, Asset and Wealth Management will be New Growth Driver for Bank

Goldman Sachs CEO David Solomon stated that asset management and wealth management will be the growth driver of the bank.

Solomon said, “The actual story of opportunity for growth for us in the coming years is around asset management and wealth management. Goldman was already the fifth-biggest active asset manager in the world. There is genuine opportunity across the firm for us to continue to make the firm more durable.”

Solomon acknowledged, “The Company didn’t execute well on parts of consumer push, but management would reflect and learn from the episode.”

Shares of Goldman Sachs declined 3% in midday trading.

Goldman Sachs reiterated its target of a key metric tracked by bank investors for a 15% to 17% return on tangible equity.

Solomon said, “The bank was weighing strategic alternatives for Goldman’s consumer platforms. However, the bank wasn’t seeking to add partnerships beyond the Apple and GM card products.”

Solomon said, “I appreciate that everyone wants more answers on the consumer platforms and their trajectory going forward.”

When asked regarding the timing of strategic alternatives for the consumer unit, Solomon said, “I know that everyone wants answers to things. Clearly, I can’t answer that.”