Glenn Schorr

Solomon cited GS DAP, tokenized bonds and funds and the DTCC tokenization launch, framing the trends as TAM-expanding but still small.

Solomon directly denied any succession transition or timeline and said the Board is focused on growing the firm.

Solomon and Coleman both said there was nothing one-off to call out in the quarter's markets results.

Coleman attributed the equities outperformance to multi-year investments in equity financing, talent, risk management, and technology, with a specific push to capture market share in Asia following regulatory capital relief at the turn of the year.

Coleman described a highly diversified client base spanning long-short, quant, and other investor types across the world, and Solomon added that Goldman's global scale and leadership across every region is a distinct advantage in the current environment.

Coleman gave a thorough walkthrough of deployment priorities: equities financing, Asia prime, private wealth lending, corporate/acquisition financing, and record buybacks, all aligned with the strategic update guidance.

Coleman pointed to the 22%+ GBM ROE as evidence that incremental lending is generating attractive returns across the portfolio of activities.

Solomon confirmed sticking with ultra-high-net-worth for direct service while using third-party channels and RIA partnerships for broader distribution.

Solomon said firm averaged 9% ROE in decade before 2020 Investor Day. Now operating mid-teens through cycle with much more durable and diversified revenues.

Solomon said AI enables fresh front-to-back process reimagination. Not about revenue issues but about driving scale, efficiency and capacity for growth investment.

Coleman emphasized SRT is ordinary course portfolio risk management to maintain capacity for ongoing client activity. Practice pretty unchanged.

Coleman noted elevated asset prices and improving IPO markets but PE harvesting still challenging. HPI reduced 10% in quarter to about $8 billion.

Solomon said capital deployment methodology unchanged: client franchise first, then return. Seeing new opportunities from M&A and financing pickup.

Coleman acknowledged prime balances may decline with asset prices but characterized impact as not material or major.

Coleman said deleveraging offset by portfolio repositioning and other client activity. Multiple dynamics at play simultaneously.

Sharon said flows are a mix of new and existing accounts and that IPO recognition depends on the vesting schedule, not instantaneous.

Ted defended the buffer, citing heavy internal client demand for capital and a continued bias toward organic deployment.

Sharon connected Equity Zen acquisition to growing retail IPO demand, noting capabilities across adviser-led and E-TRADE channels for private-to-public market access.

Ted provided strong specifics on the pipeline: $1T+ dry powder, 1,500+ private companies worth $1B+, increased bake-offs, with selection pressure on mid/small-cap IPO quality.

Ted said decision not to raise targets was easy. Secular and cyclical tailwinds remain across all businesses. No view that headwinds are building. Philosophy is to compound earnings through cycles with higher lows. Will revisit targets in time but not overreaching after two strong years.

Ted gave extensive answer covering organic vs inorganic. Dividend sacrosanct, buyback at slightly higher cadence. Best use of capital is internal investment: E-Trade Pro, Zero Hash digital wallet, Carta, bank build-out. Inorganic must pass four-box test: strategy, culture, timing, price. Acknowledged $7-10B of accreted capital but prefers organic build.

Sharon outlined three Parametric growth channels: (1) wealth channel via tax university education, (2) retail distribution channels, (3) new third-party asset manager partnerships. Third-party flows will be lumpier but represent meaningful new distribution avenue.

Sharon declined specific NII guidance. Noted lower rates typically drive sweep inflows as offset. Highlighted lending balance growth and household penetration as forward-looking NII supports.

Ted said IM roll-ups have mixed track records. Focus is on organic builds (Parametric, fixed income) plus hidden-gem tuck-ins like Solium. IM had $11B inflows this quarter.

Sharon confirmed reserves as of 3/31. GDP forecast moved from 1.9% to 1.5%. Other revenue driven by velocity, cleared chunky loan positions during windows, freeing event book capacity.

Sharon explained blanket Fed exam architecture differs from firm-specific stress tests. Ted emphasized MS gained share while maintaining excess capital, financial strength, and buffers.

Ted Pick gave a thorough answer tracing ISG evolution over six years, citing ~100bps wallet share gain to ~15% with disciplined RWA growth and operating leverage.

Fox answered directly, attributing the lower full-year operating leverage to tougher revenue comparisons and normalization, not expense pressure.

Fox highlighted integrated trading solutions adoption as structural driver, with clients offloading middle and back office FX functions on agency basis. O'Grady added swap activity shifted some income from NII to FX line, making underlying activity more consistent than reported.

Fox acknowledged volatility dependence but expects steady upward trend from new client additions and proactive business sourcing beyond just waiting for hedging decisions.

Fox attributed the anomaly to multicurrency deposit mix differences but acknowledged he couldn't explain the specific driver without more granular currency-by-currency analysis.

O'Grady explained 50 South expanded from fund-of-funds to single-fund feeder vehicles for best-of-best managers, leveraging diligence on hundreds of managers. Also highlighted evergreen fund evolution and European LTAP/LTIP vehicle growth.

O'Grady explained ETF lineup currently skews index/other exposures with limited fixed income, and the new launches target client needs across municipal securities and fixed income ladders in efficient vehicle formats.

O'Grady characterized demand as primarily pull-driven by private markets growth, noted $2.5B raised in H1 across alternatives plus ~$1B in advisory, and highlighted client portfolios below 5% allocation to private markets with significant room to grow.

O'Grady described proprietary (50 South Capital) and third-party alternatives expansion, with plans to double fundraising and increase platform fund count.

O'Grady noted each market (UK LTAS, Luxembourg, Ireland, US) requires customized approaches but the core capability exists. Success extending into multiple European structures.

Fox directly addressed deposit growth, acknowledged seasonality, and explained pricing adjustments as part of a broader liquidity management strategy.

O'Grady gave comprehensive overview covering 50 South Capital fund-to-fund, platform expansion, institutional advisory, and European semi-liquid structures.

O'Hanley positioned State Street as an infrastructure provider bridging traditional and digital finance for its investor clients.

John explained NIM is the primary driver for both Q1 and the full-year 2026 guide. Deposit growth is being offset by reduction in short-term wholesale funding (higher-cost, appropriate rotation). Interest-earning asset growth will remain modest.

John explained if markets are flat, fee revenue comes in above midpoint of 4-6% range. Productivity savings of ~$500M largely offset BAU costs, with remaining 3-4% expense growth directed at multiyear strategic investments. Guide implies margins progressing from 29% to ~30%. Ron emphasized deliberate flat market assumption for transparency and noted AI savings will accelerate in 2026-2027.

Ron noted net inflows positive but offset by some institutional outflows around one particular client. Expanding through fixed income (internally) and partnerships (Apollo, Blackstone). SPDR platform operates as open-architecture distributor. Will pursue selective active strategies only where they can add value and generate scalable, repeatable revenues.

John identified multiple macro tailwinds: easing cycle helping deposit levels and mix, potential QT ending as system-level deposit tailwind, and core AUCA-driven deposit growth. US near rate-neutral, non-US rate sensitivity declining. Terminated hedges and portfolio reinvestment as non-rate-dependent recurring tailwinds. Will provide 2026 update in January.

Mark gave comprehensive four-bucket framework: IB deposits up but spike was in lower-spread buckets, NIB deposits down $1B sequentially as expected, loan growth a tailwind, portfolio reinvestment at lower end (~100bps), and non-US central banks cutting more aggressively than expected as headwind. Overall roughly balanced, supporting flat NII guide.

Ron declined to comment on specific rumors. Emphasized recent M&A has focused on capability building (India tech platform, Ethic direct indexing, Envestnet investment). Open to scale-building M&A but current organic position is strong.

Mark confirmed staying short on reinvestment. Acknowledged possible NIM compression as a result of short positioning in current environment.

Ron explained front-loading back-office installation, cross-selling FX and securities finance, and Alpha driving roughly half of wins. Believes they continue to gain share.

Eric explained prime services as integral to multi-manager and hedge fund relationships, generating substantial cross-sell in servicing, FX, and repo business.

Ron attributed inflection to low-cost ETF expansion into retail, pace of product development (about 60 launches), EMEA share gains, and new people in retail intermediary.

Confirmed ongoing investment to fill franchise gaps in equities, rates, FX and commodities.

Alastair argued consumer deposits have found a floor and are beginning to accelerate, with noninterest-bearing ticking up. Loan growth at 3-4% is acceptable given strong consumer backdrop. BofA is deliberately not chasing CDs to preserve rate-paid discipline and core operating client focus.

Brian framed headcount management as a multi-year arc (fewer employees today than pre-Merrill/Countrywide in 2007). 1,300 hires per month to stay neutral; reducing via attrition while shifting into relationship managers. 90 AI installations live across all 200,000 employees. Still early on AI benefits.

Alastair cited expanded coverage in 24 US cities with 200+ middle-market bankers, earlier coverage of tech/healthcare companies, and international expansion. Pipeline strong with 2H 2025 IB fees 25% above 1H.

Brian explained wealth deposits shifted to off-balance-sheet money market alternatives as rates rose, now stabilizing at $280B vs $230-240B pre-pandemic. Consumer core checking growing but wealthy consumers reduced excess balances by 20% from pandemic peaks.

Brian cited headcount reduction from 280,000 to 213,000 over 15 years as evidence AI and applied technology already driving efficiency. Erica handling 2 million consumer interactions daily. Emphasized implementation at scale, not proof of concept.

Brian explained the extra disclosure demonstrates balance sheet strength and reminded that granular stress testing covers various economic downturn scenarios regardless of cause.

Brian emphasized the relentless, sustainable approach to growing market share across categories without the volatility of peers.

Brian emphasized the consistency of 11 straight quarters of S&T growth versus peers with more volatile up-and-down results.

Brian clarified that the 5% unemployment reserve assumption is a weighted methodology, not a forecast, actual expectation is unemployment stays around 4.1-4.3%.

Fraser described scaling prime balances and technology to gain share but gave no quantified equities aspiration.

Luchetti attributed the 5% fee growth to lapping strategic decisions taken a year ago and said drivers and revenue should align once lapped.

Fraser reframed to near/medium-term targets and investment optionality rather than quantifying the split Schorr asked for.

Fraser emphatically shut down any acquisition speculation. Described the 650-branch footprint as aligned with Wealth, covering 40% of ultra-high net worth households. Organic only.

Fraser gave extensive color on Services growth drivers: deepening with existing clients, 40% new mandate growth, tokenization innovation, and Securities Services wins. Comprehensive answer.

Mason explained full-year markets ROTCE was 11.6% with Q4 impacted by tough comp. Capital allocated once at year start with more GSIB capacity and higher-returning balance sheet deployment in financing and securitizations.

Mason confirmed the change, explaining it provides flexibility to invest in the franchise beyond 2026. Emphasized 10-11% ROTCE is the primary target, with expense discipline balanced against investment needs.

Fraser argued tokenized deposits are superior to stablecoins for institutional clients due to less friction. Citi Token Services integrated with 24/7 clearing across 250 banks in 40+ markets. Also considering issuing TrueCity stablecoin.

Fraser confirmed tokenization will extend beyond payments to oil, equities, and broader securities. Regulatory environment now enabling responsible innovation at scale.

Fraser outlined broad product suite for hedging, supply chain reconfiguration, and financing that clients need in trade disruption.