Despite the impact of equity volatility in a time of mixed economic signals, the wealth management arm of Goldman Sachs is keeping up its growth.
For at least the third period in a row, the megabank’s Consumer & Wealth Management unit reeled in at least 20% higher revenue than the same time a year ago, according to Goldman’s April 14 earnings report for the first quarter. On a call with analysts, CEO David Solomon shared his view of the many questions surrounding the current economic outlook and how the firm is eyeing its next moves in wealth management.
“We continue to be focused on that opportunity,” Solomon said in response to a question about the firm’s wealth business, according to a transcript by the investing website Seeking Alpha. “I’d just highlight that that’s a process that takes time. You add wealth advisors, you add footprint. It’s a slower process if you do it organically. But we see it as a very big opportunity. I think we have an aspirational brand in the wealth space.”
The firm is “off to a good start” but sees “a lot of organic opportunity” through employers who are increasingly seeking out wealth management services for workers, he added.
The firm acquired RIA consolidator and technology firm United Capital in 2019 and custodian Folio Financial in 2020. Its Ayco channel and its private bank have wealth management services as well, and Goldman’s online-only Marcus bank offers high-yield savings accounts and loans within the Consumer & Wealth unit. However, the firm only releases certain metrics relating to its wealth management business and none specific to Goldman Sachs Personal Financial Management, the rebranded former United Capital.
For coverage of Goldman’s earnings from the prior quarter, click here. To see the main wealth management takeaways from the first quarter, scroll down our slideshow.