Goldman Sachs CEO David Solomon said Tuesday that asset management and wealth management would be the growth engine for the bank after his efforts in consumer finance went awry.
“The real story of opportunity for growth for us in the coming years is around asset management and wealth management,” Solomon told CNBC’s Andrew Ross Sorkin. Solomon added that Goldman was already the fifth-biggest active asset manager in the world.
“There’s real opportunity across the firm for us to continue to make the firm more durable,” Solomon said.
He also acknowledged that the company didn’t “execute well” on parts of his consumer push, but added that management would reflect and learn from the episode.
Goldman was scheduled to hold its second-ever investor day later Tuesday. The firm released a slideshow for the event online, in which it gave updated targets for growth in its asset and wealth management division and a 2025 break-even target for its money-losing platform solutions division.
It also reiterated its target for 15% to 17% return on tangible equity, a key metric tracked by bank investors.
During opening remarks for his investor conference, Solomon said the bank was weighing “strategic alternatives” for Goldman’s consumer platforms.
That could mean a further retrenchment from retail banking if Goldman decides to sell its GreenSky lending business, which it acquired just last year for $2.24 billion, or restructure its card agreements with Apple or General Motors.
It could also decide to do nothing amid efforts to make the division profitable, said a person with knowledge of the matter.
Goldman is also planning to find buyers for a portfolio of consumer loans created by the now-shuttered Marcus loans business, said Marc Nachmann, Goldman’s global head of asset and wealth management.
This story is developing. Please check back for updates.
