The Goldman Sachs Group, Inc.

- David M. Solomon notes that the financing environment pulled forward some financing that might not have occurred without the current market conditions, leading to elevated financing levels recently. - He expects that if things normalize, the velocity of financing seen in 2021 will not continue at the same pace. - The company has replenished its pipeline for capital markets activity. - There is a balance ("yin and yang") between M&A picking up and capital raising potentially coming down, suggesting no significant net growth in banking volume from capital raising. - Overall, they see a big franchise and opportunity to serve clients through capital markets and will capture market opportunities as they arise. - No specific plans for new debt or equity fundraising were mentioned, but activity is closely tied to market conditions and client needs.

- The firm continues to make investments to grow the asset management business organically, focusing on alternatives and mix shifts within that segment (Page 7). - There is an ongoing commitment to building a digital consumer platform, including credit cards, aimed at providing a long-term accretive growth path (Page 6). - Strategic initiatives include creating more durable fee-based revenue streams, lowering capital and balance sheet intensity, and reducing stress loss intensity across the business (Page 7). - Automation remains a priority across the firm to drive efficiency, especially in new businesses like Transaction Banking and Consumer, to reduce human intensity and associated costs (Page 4). - The firm is attentive to capital management, targeting a CET1 ratio of around 13%, adjusting buffers as market volatility dictates, and seeking to optimize capital efficiency over time (Page 5 and 7). - While open to inorganic growth, there are no current plans for significant acquisition deals unless they substantially enhance the franchise (Page 4 and 7).

- The firm expects continued growth in capital markets activity, driven by a client-centric, one-firm approach that has improved market share over the past two years. - M&A activity is picking up with increasing dialogues and improved CEO confidence; growth is anticipated to continue into 2021 barring unforeseen pandemic or economic disruptions. - Gains in wallet share, especially in legacy capital markets businesses, are viewed as strategic and sustainable. - The digital consumer platform, including credit cards, is seen as a long-term growth area, aiming for accretive value over time despite skepticism about near-term P/E multiples. - Initiatives in alternatives and transaction banking are expected to reduce capital intensity and increase durable fee-based revenue streams. - Overall, the firm envisions steady earnings growth driven by a combination of trading, advisory, capital raising, and expanding client franchises.

- The leadership team believes consistent medium- to long-term execution of strategic initiatives will drive shareholder value and EPS growth (Page 6). - Focus on building durable fee-based revenues, reducing stress loss intensity, and lowering capital intensity supports earnings growth (Pages 3, 8). - Market share gains, particularly in Global Markets and M&A advisory, are expected to contribute to revenue growth (Pages 5, 6, 8). - Expansion into digital consumer platforms (e.g., credit cards) is a long-term investment expected to be accretive over time (Page 6). - Efficiency improvements and operating leverage from strategy execution should enhance profitability (Pages 3, 6). - Management targets a CET1 ratio of about 13%-13.5%, balancing capital management with growth investments (Pages 3, 5, 8). - Management sees normalized capital markets activity over a multi-year horizon as a stable earnings contributor (Page 8).

- M&A backlog has strengthened during the quarter but is not back to all-time highs. - There has been an increase in M&A activity and announcements, as well as more client dialogues. - CEO confidence has improved meaningfully but is still below pre-pandemic levels. - The base case expectation is that M&A activity will continue to increase through the rest of the year and into 2021. - Market conditions remain uncertain; a shift in the pandemic or economic trajectory could slow activity. - Capital markets financing levels had been elevated due to pulled-forward financings related to the pandemic. - If markets normalize, financing velocity in 2021 is expected to be lower than 2020 but should remain a significant business. - The firm sees large opportunities ahead driven by normal corporate activities over multi-year horizons.