Goldman Sachs Will Likely Fall Short of Its Return on Equity Target for Several Years

Goldman Sachs is refocusing the initiatives it’s been working on the previous several years. At its 2023 investor day, it emphasized three priorities. In its investment banking and trading business, it wants to maximize client wallet share and grow its financing business. In asset and wealth management, it wants to grow its management fees, including in wealth management and raising third-party capital for its alternatives business. In its new platforms business, it wants to scale and achieve profitability. The third priority is a bit more interesting than the first two, as management also mentioned it’s considering “strategic alternatives” for its consumer platforms, which often means restructuring or sale of the business.