Goldman Sachs Group Inc offered new tidbits about its sweeping operational overh...
- Goldman Sachs Group Inc offered new tidbits about its sweeping operational overhaul when reporting first-quarter results on Monday, but investors focused on revenue declines across nearly all its main businesses, sending shares lower.
But regulations imposed after the 2007-2009 financial crisis, combined with changing market trends, put some of its core businesses in peril. Management is now putting in place the conclusions of that review, and plans to offer bank-wide performance targets early next year, Goldman said in an earnings presentation on Monday.But analysts said the bank is taking too long to turn around slumping businesses and set broad, operational goals.
The executives described Goldman’s performance as relatively strong during a quarter where markets were tame and businesses were hurt by exogenous factors, like the U.S. government shutdown. Goldman aims to boost retail deposits by at least $10 billion a year over the next few years, management said. The bank also plans to move more businesses into regulated bank entities, which can obtain cheaper funding.Management is shifting about 7,500 people from operations and engineering directly into business units, consolidating technology platforms and pushing staff to be more productive.
The bank's profit fell 20 percent to $2.2 billion, or $5.71 per share, from $2.7 billion, or $6.95 per share, in the year-ago period. A main driver of the profit beat was a sharp drop in compensation costs, which helped cut operating expenses by 11 percent.
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