Investors are awaiting a roadmap to profits for the bank's fintech unit, called Platform Solutions, formed after Goldman lost billions on its foray into consumer banking and reined in its ambitions. The pullback on costs could help the bank to meet its efficiency targets.
Solomon's performance, and his plans for growth, will be scrutinized by investors and analysts. Observers will also focus on the CEO's plans to decrease Goldman's reliance on trading and investment banking, which can be whipsawed by market volatility. The bank has said it plans to slim down some alternative investments that weighed on profits last year. "Earnings could continue to be subdued for the next year or more, as the economic environment remains uncertain, which should pressure investment banking and asset management revenue," said Michael Wong, an analyst at Morningstar Inc.
After a solid performance in recent years, Goldman's markets
division could weaken in the short to medium term because
"trading is a wild card," he said.
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ANALYSIS-Goldman Sachs CEO, after missteps, to take center stage
at investor day ANALYSIS-Wall Street heavyweights warn of pain ahead despite
market’s recent reprieve ANALYSIS-Goldman Sachs' consumer pivot solves one question, but
makeover raises more ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Saeed Azhar and Lananh Nguyen
Editing by Nick Zieminski)
