The Goldman Sachs Group, Inc.

- Financing levels have been elevated recently, partly because the environment pulled forward some financing that might not have happened otherwise (Page 7). - It's expected that if things normalize, the velocity of financing in 2021 will not match the high levels seen in 2020 (Page 7). - The firm has replenished its pipeline for capital markets activity (Page 7). - The CEO mentioned it's challenging to predict financing activity with granularity but emphasized being well-positioned to serve clients and capture opportunities (Page 7). - Overall, the balance between M&A and capital raising may present a "yin and yang" effect where gains in one might offset declines in the other (Page 7).

- Goldman Sachs is making strategic investments to grow the asset management business organically, particularly focusing on alternatives and shifting the mix of the business. - The firm is committed to building a broader consumer wealth platform through organic growth, including digital consumer banking and credit card businesses. - Investments are being made to enhance digital platforms, automation, and efficiency across various businesses, including Transaction Banking and Consumer. - They emphasize a "one GS" client-centric strategy driving market share gains, indicating ongoing investments in client service capabilities. - No specific new acquisitions are currently planned, but the firm remains open to inorganic opportunities that would enhance the franchise, particularly in asset management if they align with strategy and add value. - Capital deployment includes maintaining a CET1 ratio around 13% to 13.5%, with ongoing initiatives designed to reduce stress loss intensity and balance sheet intensity over the medium term. - LIBOR transition-related investments have been addressed with dedicated teams and preparations.

- Trading businesses, including credit electronic platforms, are seeing growing and sticky client engagement, likely boosted by work-from-home trends. - M&A activity is expected to continue increasing into 2021, driven by CEO confidence and corporate consolidation efforts to gain scale and efficiency. - Market share gains in Global Markets stem from a client-centric, one-firm approach, expected to support durable revenue growth beyond volatile market conditions. - Capital raising shows a yin-yang pattern with M&A; overall, a normalization in financing velocity is expected after an elevated 2020 driven by pulled-forward activity. - Strategic initiatives focus on increasing fee-based revenues and lowering capital intensity, aiming to reduce stress loss and improve sustainable revenue streams over medium term. - Expansion into digital consumer platforms (e.g., credit cards, digital banking) is a long-term growth play, expected to be accretive over time despite current skepticism.

- Management expects medium to longer-term consistent earnings growth driven by strategic initiatives focused on durable fee-based revenues and capital efficiency. - Capital markets and trading businesses show strong market share gains and resilient client engagement, supporting earnings growth despite volatility. - M&A backlog and capital raising pipelines indicate potential for sustained profitable activity, although near-term levels may normalize post-pandemic. - Digital consumer platform and asset management businesses are viewed as long-term growth drivers that will be accretive over time. - Efficiency improvements and controlled compensation trends expected to support operating leverage. - The firm remains committed to targeted CET1 capital ratios (13%-13.5%) supporting stable capital deployment and earnings. - Focus on growing book value and shareholder value suggests emphasis on sustainable, high-quality earnings rather than short-term earnings spikes.

- M&A backlog strengthened during the quarter, showing an increase in activity and announcements. - However, the M&A backlog is not yet back to pre-pandemic levels or its all-time high. - There has been an increase in dialogues with clients, and CEO confidence has improved meaningfully during the quarter. - Expectation of continued increase in M&A activity through the rest of the year into 2021, contingent on pandemic and economic conditions. - Capital markets activity remains elevated, partly due to the pandemic-driven volatility and work-from-home dynamics. - Pipeline replenished, but the volume might normalize post-2021 compared to the elevated levels seen during the pandemic. - Market share gains in capital markets attributed to client-centric strategy and execution rather than solely elevated market volumes.