The pending takeover of Credit Suisse by UBS reflects how there could be more wealth management opportunities for Goldman Sachs worldwide, CEO David Solomon said.
In a call with analysts after the megabank disclosed its first-quarter results on April 18, Solomon fielded questions about the UBS-Credit Suisse deal and what it could mean for Goldman's wealth business. Despite a rough day overall for the firm in Wall Street trading after its business failed to meet investors' expectations for its fixed-income trading business, the results offered glimmers of hope in the record assets and management fees for Goldman's wealth unit. Solomon's team sees further potential for the unit internationally, he told analysts.
"I think the interesting thing is, whenever there is consolidation, as we look at very wealthy individuals that are on our private wealth platform, they tend to have multiple providers," Solomon said, according to a transcript by Seeking Alpha. "So, whenever there is consolidation, there are opportunities to talk to people as people then rethink their footprint and the diversification of their footprint. And so our private wealth teams are very focused on that and the way we serve those clients."
For the main takeaways for financial advisors and other wealth management professionals from Goldman's first-quarter earnings, scroll down the slideshow. To see coverage of the megabank's fourth-quarter earnings, click here. And for a look at Goldman's earnings from the third quarter, follow this link.
Note: The company doesn't break out most specific metrics for its wealth management business, including the number of financial advisors and client assets at the former United Capital and the level of custodial holdings in the unit once called Folio Financial. Unless otherwise stated, the metrics below relate to Goldman's Asset & Wealth Management segment.
