Denis Coleman: Sure. So, we continue to focus on market share. Market share data lags, but through the third quarter of last year, it shows that we continued to grow market share in those businesses, sales and trading. So, that remains a very, very core focus of the firm. We continue to make progress, and we think we can make incremental progress. One of the attractive things about that business for us is that we have a number of different business lines, which have enabled us to perform across a variety of environments. The last year, given what happened with rate normalization and energy markets around the world, were a particular tailwind to the interest rate products business, the commodities business. Meanwhile, we had softer performance in credit, mortgages and some of the equity intermediation activities.
Certainly, if the new issue debt underwriting markets come back online as early indications on the investment-grade side of things suggest and if the equity underwriting activities are to open up, there is a lot of activity that takes place with investors as they position in advance of and after new offerings that we should be able to capture, given the investment that we have made in the client franchise. So, I can’t predict exactly where activity will come from 2023. Certainly, some of it may be a continuation of those areas that were active in 2022. But it’s quite possible that certain activities that were softer in €˜22 could rotate and become more relevant in 2023.
Operator: Thank you. We will take our next question from Matt O’Connor with Deutsche Bank.
Matt O’Connor: Good morning. You mentioned continued interest in asset and wealth management deals, kind of over time. It sounds more like bolt-on, but I guess just are you more open-minded towards maybe a transformational deal as we think out, not necessarily this year, but just in the next couple of years. I mean to-date, you have €“ what I would characterize, I think most people had characterized, you have piece-mailed some deals. You have done some organic expansion and mixed results in different areas. But just thoughts on maybe more openness to something transformational down the road.
David Solomon: I think we have been asked this question. I appreciate the question. We have been asked it a bunch over time. I think in certain businesses like asset and wealth management, there are significant things that could meaningfully accelerate the platform. We have the fifth largest active asset manager in the world now that we have stood up all the businesses inside Goldman Sachs. And so that scale is real. And there certainly could be opportunities to increase that scale. And certainly, there are opportunities in wealth for us to do things that are more significant. I would say that the bar to do those things is extraordinarily high. There are not a lot of opportunities out there necessarily to do it. Certainly, over the last 5 years, the prices have been eye-popping, maybe we are in a different environment where well, that will normalize.
But we are always open to things that we think can strengthen Goldman Sachs, but also as somebody that’s been an M&A banker for a significant part of my career, I know the barter do that, the cultural issues, the integration issues, the bar has to be very, very high. So, I would say we are always open. But at the moment, our focus is on executing on the plate of opportunities we have in front of us, and we think we can drive good returns, good book value growth, good performance for our shareholders as we look forward in the coming few years with what we have on our plate.
Matt O’Connor: Okay. That was clear. Thank you very much.
Operator: Thank you. We will take our next question from Gerard Cassidy with RBC.
Gerard Cassidy: Thank you. Good morning. David, in your opening comments, you gave us your three priorities of growing management fees in the Asset & Wealth Management business, maximizing the wallet share and growing financing activities in global banking and markets and then scaling the platform. In your €“ in the number two, maximizing the wallet share, can you share with us where are you today with the wallet share, both in investment banking and markets? And how are you pursuing to grow that over the next couple of years?
David Solomon: Yes. So, we €“ you can take a look at our performance in these businesses. And you can see that the performance is quite strong. A couple of things I will point to even in this quarter’s performance. You can look at our relative M&A revenue performance. You can look at our relative FICC performance and even our equities performance in what’s been a tough quarter, the relatives look pretty good. We set out 3 years ago, and this was a big structural change. We had never really thought about client market shares in our markets business. We had always thought about them in our investment banking business. And we really €“ we brought that ethos into the markets business. And I know everyone on this call has heard us talk about how 3 years ago, we set out to say there are 100 clients that contribute meaningfully to our FICC and equities businesses.
And we are top three with only 44 of them. We are now top three with 77 of those top 100. And now we have shifted the focus to really look at okay, top three, but why aren’t we wanted to, what are the number of clients that we can be number one and two with, and we think there is more room that we can drive on wallet share by really focusing and ticking equities on that number one and number two position. In banking, the wallet share has really come from footprint growth. That footprint grows candidly has been a little bit expensive when there has been zero capital markets revenue because that footprint growth does tilt toward capital markets activity, but we think that will serve us well if you take a 3-year or a 5-year view looking forward.
So, again, there is a lot of attention paid to some of the things that we are investing in. The core of the firm is very strong. Those wallet shares are strong, but we still see more opportunity and we are laser-focused on continuing to execute on it. And I don’t think there is any business in investment banking and markets that is as strong and powerful as this business, so we will continue to focus on strengthening it as we move forward.
Gerard Cassidy: Very good. And then as a follow-up on the shift in strategy in the consumer business, you have been very clear, obviously, on how you are positioning this going forward. I may have missed this, so I apologize. But what went wrong? When you go back to when you guys started to move into these businesses 3 years ago or so, I know Marcus deposits has been around longer than that. But when you look back on what you were hoping to do and how it turned out, what went wrong?
David Solomon: Well, I think there are a bunch of things that went right, and there were some things that did not go well. I think we executed well on some things that we didn’t execute on others. But the simple thing that I would phrase, Gerard, and I think it’s a fair question, is we tried to do too much too quickly. And of course, in the environment that we are in, it’s hard to go back when we started in that strategy 6 years ago. We obviously built the deposit business, the loan business, and we talked about a much broader platform. And I think we came to the conclusion that there were some changes. One of the big changes that affect the pace of the ability to do this and it’s different in scaling things like this is CECL is a big change.
CECL changed the curve on growing these lending businesses at scale from scratch. So, we have had to adjust to that. The regulatory environment has also changed over the course of the last couple of years. But I think it became clear to us early in 2022 that we were doing too much, was affecting our execution. I think we probably, in some places, haven’t had all the talent that we have needed to execute the way we have wanted. We are making adjustments on that, but by narrowing down the three core things that we are going to focus on that we actually think are good businesses that can be accretive to the firm. I think we have got it in a place now where we can create a more cogent path forward. And so that’s what we are doing. And I €“ the takeaway I would like investors to understand is when we see things, we look at things and we pivot.
We are not married to things. We are willing to change. I think when I go back to our 2020 Investor Day, and I look at what we laid out during that period of time, we have accomplished and have executed on the vast majority of things we have laid out. That doesn’t mean there is not more work to do. But you know what, we didn’t execute perfectly on some. So, we have taken a hard look at those and you make adjustments. And that’s kind of the ethos of the nimbleness of Goldman Sachs that I want to amplify. We are always willing to make changes. We are always going to be focused on shareholders. And even though everything has not gone perfectly, again, I would point to our 40% book value growth since our Investor Day, and I map that out. Our book value per share growth, I believe it’s more than double the next nearest competitor.
And so we are going to continue to stay focused on the medium and long-term. I think we are good at nimbly making adjustments, and we will always be very clear to have when we get things right or we get things wrong.
