(Reuters) – Goldman Sachs Group Inc offered new tidbits about its sweeping operational overhaul when reporting first-quarter results on Monday, but investors focused on revenue declines across nearly all its main businesses, sending shares lower.
FILE PHOTO: The ticker symbol and logo for Goldman Sachs is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., December 18, 2018. REUTERS/Brendan McDermid
Goldman, the fifth-largest U.S. bank by assets, was once considered a black box of profits, disclosing little about management’s goals or how its core units functioned. Investors and analysts generally accepted that secrecy, since Goldman routinely generated higher returns than peers.
But regulations imposed after the 2007-2009 financial crisis, combined with changing market trends, put some of its core businesses in peril.
The bank embarked on a plan in 2017 to generate $5 billion in additional annual revenue, partly by diving into consumer banking, where it had never previously operated. It also promised to disclose more about its progress.
The bank has doubled down on that strategy under Chief Executive David Solomon, who started a “front-to-back” operational review after taking over as CEO in October.
Management is now putting in place the