Goldman Sachs (GS) President Harvey Schwartz said on Tuesday the investment bank has a series of growth initiatives designed to drive $5 billion of incremental annual revenues, after two poor trading quarters.
“The initiatives we are outlining today, they are’t hypothetical. They are already underway. We estimate the full impact when we realize in three years,” Schwartz said at Barclays Global Financial Service Conference, according to transcript.
The growth initiative is not dependent on an overall improvement in the market environment and could contribute up to $2.5 billion in pre-tax earnings, he said.
Schwartz said an important growth component is the Fixed Income Currencies Commodities franchise, which has not performed satisfactorily, adding the bank is looking to capture significant opportunities that lay ahead for its five key businesses.
“We have a long-term plan. We are in execution mode,” he said
Goldman shares were 2.2% higher in late trade.