Goldman Sachs Group, Inc. (GS.US) CFO: Q3 results impressive but warning of AI bubble, launching "Goldman Sachs Group, Inc. 3.0" model to strengthen core business.

As multiple institutions on Wall Street warn of potential bubble risks, Dennis Coleman, Chief Financial Officer of Goldman Sachs Group, Inc. (GS.US), stated that the bank has taken a "particularly vigilant" approach to managing the risks posed by artificial intelligence (AI) driving the rise in the U.S. stock market. Additionally, during yesterday's third quarter earnings call, Coleman emphasized the need to recognize the fundamental differences between two types of companies in a market driven by new technology - which companies can truly achieve sustainable growth, and which companies will struggle once the hype subsides. "Taking a step back, there is undoubtedly a significant level of enthusiasm in current investor sentiment," he pointed out. "Although I am generally optimistic about the future prospects, market operations follow cyclical patterns, and disciplined risk management is crucial." In their third quarter earnings reports released at the same time, JPMorgan Chase and Citigroup also issued similar warnings about the risks of market overvaluation. Q3 Revenue and Profit Growth, Investment Banking as Core Drive Goldman Sachs Group, Inc. released their third quarter financial data, showing a net revenue of $15.18 billion and a net profit of $4.1 billion, a significant increase of 37% from the same period last year. In terms of specific business segments, Goldman Sachs Group, Inc.'s global banking and markets business had a net revenue of $10.1 billion in Q3, an 18% increase from the same period in 2024, remaining stable compared to the second quarter of 2025. Investment banking fee income was $2.66 billion, with a year-on-year growth of 42%. The growth was mainly driven by a significant increase in advisory business net revenue, reflecting the completed mergers and acquisitions deals and a significant increase in debt underwriting business. Debt underwriting revenue grew simultaneously due to increased leverage financing activities; stock underwriting revenue also increased, driven mainly by the active IPO market. Launching AI-driven "Goldman Sachs Group, Inc. 3.0" model, sticking to core business strategy In the earnings report, Goldman Sachs Group, Inc. also disclosed a key strategic initiative - the launch of a more centralized operational model supported by AI technology, called "Goldman Sachs Group, Inc. 3.0". The bank stated that this is a multiyear focus project, with core goals including optimizing customer account opening processes, enhancing business profitability, and operational efficiency. The next round of updates for this model is expected to be announced in the first quarter of 2026. In addition, during the earnings call, analysts asked Goldman Sachs Group, Inc. about two market concerns, which involved the bankrupt subprime auto loan institution Tricolor Holdings and the car parts supplier First Brands Group. In response, Goldman Sachs Group, Inc. clarified that they have no "direct risk exposure" to these two companies. Goldman Sachs Group, Inc. CEO David Solomon reiterated the bank's commitment to its core business strategy during the meeting: focusing on investment banking and trading while further expanding asset management scale and strengthening wealth management services for high-net-worth clients. It is worth noting that in September of this year, Goldman Sachs Group, Inc. partnered with T. Rowe Price to jointly launch retirement planning and wealth investment products, which will include private market investment channels to enhance asset allocation choices for high-net-worth clients.