Friday, 21 Jun 2024

Goldman tracking ahead of $5 billion revenue goal: CFO

(Reuters) – Goldman Sachs Group Inc (GS.N) is tracking ahead of its goal to generate $5 billion in additional annual revenue by 2020 as growth initiatives bear fruit, and sees opportunities to grow its businesses further, its new finance chief said on Monday.

The initiatives laid out last year have produced $2.5 billion so far in 2018, according to a presentation Chief Financial Officer Stephen Scherr gave at an industry event. He stopped short of increasing the target, but suggested Goldman could still do better.

“This is by no means the limit of the ambition of the firm,” said Scherr, who plans to provide a strategic update in the spring.

The presentation marks the first under a new management team at Goldman Sachs. The bank is now led by a team of longtime dealmakers, including Chief Executive Officer David Solomon, who started on Oct. 1, Chief Operating Officer John Waldron and Scherr, who gave the presentation on his first day in the CFO role.

It showed Goldman making headway on plans to lend more to consumers and big businesses, with its fledgling digital bank, Marcus, now boasting 2 million customers. Goldman wants to grow market share and eventually become a “one-stop shop for financial well-being,” according to Scherr’s presentation.

Goldman is also working to improve core areas such as trading and asset management, and to squeeze more revenue from the investment bank where Solomon and his deputies built their careers.

That business has generated $40 billion in deal volume from new customers since Goldman launched its strategy in 2016.

Goldman shares were little changed on Monday morning, at $229.56, 13 cents down from Friday’s close.

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