Goldman Leans Away From Revenue Goal Ahead of Debut Investor Day
Goldman Sachs Walks Back 2020 Revenue Target, Reuters Reports
(Bloomberg) -- Goldman Sachs Group Inc. is leaning away from a target of finding $5 billion in extra revenue by next year, people briefed on the matter said.
The Wall Street bank will tout a wider range of financial metrics at an investor day in January, said the people, who asked not to be identified speaking before the event. Executives have already been pushing investors to judge the bank on other measures including its expense ratio.
The $5 billion target was set in 2017 as the Wall Street firm looked to expand a range of businesses separate from its traditional strengths in trading. The bank has been boosting its consumer lending operations and this year partnered with Apple Inc. on a new credit card.
In a presentation in September 2017, Goldman Sachs outlined a series of measures it described as “opportunities for growth” that included making an extra $1 billion from investment management and more than $2 billion from firm-wide lending and financing initiatives over the coming three years.
Goldman Sachs produced $32.4 billion in revenue in 2017. Through the 12 months ended in September, it’s generated $34.7 billion, a jump of $2.3 billion.
Chief Executive Officer David Solomon inherited the target from his predecessor Lloyd Blankfein after taking over as CEO in October 2018. Solomon beat out co-president Harvey Schwartz for the top job, and Schwartz left the firm last year. Schwartz was the one who presented the revenue target in 2017.
A Goldman Sachs spokesman declined to comment. Reuters reported the plans earlier Monday.
--With assistance from Stefania Spezzati and Sridhar Natarajan.
To contact the reporters on this story: Harry Wilson in London at hwilson57@bloomberg.net;Donal Griffin in London at dgriffin10@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Michael J. Moore, Steve Dickson
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