The Goldman Sachs Group, Inc.

- David M. Solomon discussed capital raising and M&A in response to a question from James Mitchell (Seaport Global): - The firm has replenished some pipeline for capital markets activity. - There is uncertainty whether increased M&A will offset capital raising, leading to a "yin and yang" effect rather than growth. - Financing levels have been elevated due to pulled-forward demand in the pandemic environment. - The CEO expects normalized financing velocity in 2021 compared to elevated 2020 levels. - The firm remains well-positioned to serve clients as market normalizes. - No explicit announcement of new fundraising through debt or equity was made. - The CFO noted strategic initiatives aimed at reducing stress loss intensity and capital usage, targeting improved capital ratios in the medium term. Summary: The firm anticipates normalized capital markets activity with no immediate new debt or equity fundraising planned but remains flexible to market conditions.

- The firm is committed to investing in building a digital consumer platform, focusing on long-term growth rather than short-term returns. - Ongoing investments in automation and efficiency improvements across the firm are prioritized to create operating leverage. - There is a focus on strategic value locations and automating control functions and client platforms. - The firm continues to make investments organically in asset management, particularly in alternatives, reflecting a strategy to shift the business mix. - While open to inorganic growth through acquisitions if they align with strategic goals and enhance the franchise, the firm currently sees no right opportunities. - Overall, strategic initiatives are geared toward reducing capital and balance sheet intensity, lowering stress loss intensity, and building a more durable revenue base.

- The firm expects continued growth in capital markets and trading businesses driven by strong client engagement and increased market share, particularly in credit electronic platforms. - M&A activity is anticipated to rise into 2021, supported by improving CEO confidence and a robust backlog, although timing remains uncertain due to pandemic-related factors. - Growth in transaction banking and alternatives businesses aims to generate more durable, fee-based revenue with lower capital intensity. - Expansion into digital consumer platforms, including credit cards, is a long-term strategic priority, expected to build value over time despite shorter-term skepticism. - The firm is focused on deepening client relationships and expanding footprint into emerging mid-market companies, presenting revenue growth opportunities. - Overall, management expects normalized corporate activity over 3 to 10 years, capturing consistent market share and growing book value and earnings.

- The leadership team expects continued medium- to long-term earnings growth driven by execution of strategic initiatives (Page 7). - Growth fueled by gains in wallet and market share in capital markets and M&A advisory (Page 7). - Expansion of the digital consumer banking platform anticipated to be accretive over a very long period, similar to the asset management franchise (Page 7). - Building more durable fee-based revenues and reducing stress loss intensity aimed at improving overall profitability and returns (Pages 3, 8). - Efficiency ratio viewed as a key metric, and operating leverage expected as new businesses mature and automation advances (Page 6). - Improved credit behavior and underwriting strategies in consumer credit indicate better risk profiles supporting stable earnings (Page 6). - Future capital management aims to maintain CET1 ratio targets facilitating growth and capital returns to shareholders (Pages 5–8).

- M&A backlog has strengthened during the quarter but is not yet back to pre-pandemic or all-time high levels. - There has been an increase in both M&A activity announcements and dialogues with clients. - CEO confidence has improved meaningfully compared to earlier in the year, although it is not yet fully restored. - The base case expectation is that M&A activity will continue to increase through the rest of the year and into 2021. - The environment remains uncertain, so flexibility is required if changes occur due to the pandemic or economic shifts. - Capital markets activity has experienced an elevated volume recently, partly due to the pandemic and market volatility. - There is a replenishment in the pipeline for capital raising, either equity or debt capital markets.