Goldman Sachs has been called a number of things over its 146-year history, but boring isn't one of them. Now the firm is touting what it describes as its less volatile, more stable business model.
In a presentation at the Credit Suisse 2015 Financial Services Forum, Chairman and CEO Lloyd Blankfein—who once famously said the firm was doing "God's work"—made the case that while Goldman may not have been engaged in a high-profile restructuring over the last few years, it has been undergoing a transformation that has improved its financial position.
He also highlighted the advantage of its small size and persistent focus on institutional clients that has allowed it to generate strong organic revenue growth and a higher return on equity than most of its peers.
Vining Sparks analyst Marty Mosby, who rates Goldman an "outperform." said the investment bank has not been as aggressive about telling the story of this transformation as rival Morgan Stanley, which has been building its wealth management business to offset the volatility in its trading arm and investment bank.
Mosby said Goldman has undergone a similar transformation, to de-risk its businesses and provide steadier results, though it has been doing so through all its businesses and not just asset management