Goldman Sachs Group achieved strong performance in the second quarter of 2025, with a net income of $14.6 billion, earnings per share of $10.91, and a return on investment of 12.8%. Despite changing market dynamics, Goldman Sachs has maintained its focus on customer service, demonstrating its strong global customer franchise. The investment banking business remains in a leading position, particularly in mergers and acquisitions, and activity in the capital markets is accelerating. Additionally, the financing business achieved record revenues, reflecting Goldman Sachs' success in executing strategic priorities, especially in growing financing and maximizing market share. The asset management and wealth management businesses also performed well. These results reflect Goldman Sachs' exceptional talent, collaborative culture, and differentiated business portfolio.

Goldman Sachs Group showed strong financial performance in the second quarter, achieving a net income of $14.6 billion, earnings per share of $10.91, and a return on equity of 12.8%. Particularly, significant growth was achieved in areas such as global banking and markets, wealth management, and alternative investments, including record $1.7 trillion in client assets under management and $3.3 trillion in total assets under supervision. Goldman Sachs also emphasized progress in the field of artificial intelligence, enhancing work efficiency and software development capabilities through the introduction of AI tools and collaborations. Additionally, the company announced a 33% increase in quarterly dividends, reflecting confidence in future development and shareholder returns. In the face of a complex global environment, Goldman Sachs stated that they will continue to focus on risk management and strategic investments to support clients and create value for shareholders.

In the second quarter, the financial institution's total alternative asset under management reached $35 billion, driving $589 million in management and other fees. Third-party alternative asset fundraising totaled $18 billion, bringing the year-to-date fundraising total to $37 billion. Net interest income was $3.1 billion, with a total loan portfolio of $217 billion. In terms of capital management, $4 billion was returned to shareholders this quarter, including $9.57 billion in common stock dividends and $3 billion in stock repurchase. The Common Equity Tier 1 (CET1) capital ratio is 14.5%, compared to the new CET1 requirement of 10.9%, demonstrating the company's excess capital and active pursuit of capital distribution avenues.

The discussion focused on how banks can effectively utilize available capital to generate value-added returns through client business activities and market opportunities, such as M&A and financing activities. At the same time, banks commit to gradually increasing dividends and continuously seeking ways to return capital based on business sustainability and enhanced confidence in growth.

In the current environment, although asset prices are high, credit markets are improving, and the IPO market is accelerating, the environment for private equity assets has not become very favorable. Despite facing challenges, the company is still committed to gradually reducing its historical principal investments, with progress made since the second quarter, reducing the investment scale to approximately $8 billion. With the continuous improvement of market conditions, more opportunities to reduce such investments are expected to be provided. At the same time, the company has clearly stated that even though the remaining investment portfolio is relatively small, it is committed to actively reducing it, although it may face more challenging investments in the final stages.

During the discussion, it was mentioned that despite the unpredictable nature of environmental changes, the company plans to maintain a buffer of approximately 50 to 100 basis points above the new and applicable regulatory minimum requirements for the Capital Adequacy Ratio (CT1) to address unexpected client activities and regulatory changes. This strategy aims to maintain flexibility and reserves.

The discussion focused on opportunities for capital deployment, particularly considerations for organic and inorganic acquisitions in the field of asset wealth management, as well as their high barriers to entry. In addition, a thorough discussion of the decision-making process regarding dividends was also conducted, including factors to consider and future expectations.

The company promises to continuously and steadily increase dividends. Although they do not expect a growth rate of 33% every year, there is room to further increase dividends with the growth of the company's performance and the optimization of the capital system. In addition, the company is actively investing in AI technology to automate processes, improve efficiency and productivity, which not only helps reduce costs but also increases investment flexibility, driving customer business growth. Cooperation with Cognition Labs accelerates software development, enhances productivity and revenue potential, and brings significant operational efficiency. The widespread application of AI is expected to bring profit growth and efficiency improvement to the entire market.

Despite global uncertainties, Goldman Sachs states that M&A (mergers and acquisitions) activities have significantly increased this quarter, reflecting the company's strengthened confidence in scale and industry consolidation. Goldman Sachs emphasizes that the growth in revenue and endorsement growth in advisory services are clear signs of increased M&A activity, while also pointing out CEOs' focus on scale and industry consolidation globally. Goldman Sachs believes that in times of uncertainty, clients are more inclined to seek their professional advice to seize potential market opportunities.

Goldman Sachs Group is currently focusing on developing its asset wealth management business and considering accelerating growth and scaling in this field through acquisitions. Currently, their asset management platform has reached a size of $3.3 trillion, although it is already large and diversified, there are still opportunities for acceleration and expansion. Goldman Sachs has stated that they are looking for suitable opportunities to further enhance their positioning and scale in their asset management platform.

In the dialogue, senior bank executives discussed the bank's strategy to reduce alternative investments on the balance sheet after the Federal Reserve adjusted capital handling rules. Despite the advantages of alternative investments in capital handling changes, the bank still adheres to its strategic approach of using the balance sheet to support asset management and co-investment with clients, rather than operating a full-scale alternative investment platform. The discussion also touched upon the bank's long-term strategy for reducing Risk Weighted Assets (RWA) density, as well as the progress and sustainability of improving the Capital Adequacy Ratio (CAR). Senior bank executives emphasized the continuity of the strategy and commitment to the co-investment strategy with clients, while also expressing expectations for transparency in the capital handling process.

The dialogue emphasized the importance of transparency in the planning and capital allocation process, pointing out that the current lack of transparency is detrimental to the system. Strategically, a less risk-weighted asset (RWA) intensive strategy is being implemented and flexibility is being maintained to adapt to future changes in capital rules, with more clarity on capital rules expected in the next 12 months.

Through discussion, the importance of utilizing AI technology in customer coverage and service strategies was emphasized, as well as how to increase market share by enhancing customer connectivity and expanding financing business. At the same time, structural changes in coverage strategies and a deeper understanding of customer needs were mentioned, as well as how to apply these strategies to a wider customer base to gain a larger market share.

Senior executives at Goldman Sachs emphasized the importance of customer relationships and capital management in discussions, mentioning the broader customer base beyond the 150 key clients, as well as the continued focus on improving customer relationships and market share. At the same time, discussions also touched upon digital transformation, particularly regarding stablecoins and financial market structures, indicating expectations for regulatory clarity and readiness to use digitalization to create new opportunities. Additionally, the issue of capital buffers was discussed, expressing expectations for increased regulatory transparency and capital management strategies, as well as plans to optimize capital structure through improvements in customer relationships and capital returns.

Discussed were whether the market business can maintain its current strong performance if investment banking activities such as mergers and acquisitions and issuance accelerate, as well as how to capitalize on opportunities for alternative financing in more mainstream retail wealth channels, particularly in the context of incorporating alternative assets into potential retirement accounts.

Bank executives emphasized the importance of building a sustainable revenue model to reduce volatility during discussions, and confirmed the reasonableness of the mid-term target of 15% to 17% return on equity (ROE). They stated that the current regulatory and macroeconomic environment has increased confidence in achieving this goal. Growth is mainly driven by the continuous optimization of asset wealth management businesses and the outstanding performance of global banking sector markets, both of which have collectively contributed to the overall increase in return on equity. Additionally, the excess capital held by the bank provides them with additional flexibility, allowing them to both facilitate transactions with clients and increase returns by reducing the capital base, thus accelerating the achievement of strategic objectives.

During the meeting, after SB raised a question, the organizer expressed gratitude and asked if Chris had any other questions. Chris replied that he only needed to express gratitude.

JPMorgan Chase expressed confidence in the sustainability of its revenue and profitability during the discussion, emphasizing the company's commitment to establishing a more sustainable and continuously growing dividend strategy. At the same time, the company also discussed its strong performance in its advisory business, noting that its advisory business has been a leader for 25 consecutive years and has far surpassed competitors in revenue and expenses this quarter, demonstrating the business's outstanding performance and sustained competitiveness.

During the performance conference call for the second quarter of 2025, Goldman Sachs emphasized its relatively strong performance in the quarter and stated that it will continue to execute its strategy to maintain its leadership position. It was mentioned during the discussion that Goldman Sachs holds high standards for any form of inorganic growth, emphasizing the need to align with strategic goals, cultural fit, and financial analysis. Additionally, despite facing numerous uncertainties and risks, Goldman Sachs stated that it will continue to remain vigilant and focus on risk management to address the fluctuations in global markets.