Goldman Sachs (NYSE:GS) might trim the fiscal goals it set for itself earlier this year due to weaker-than-expected results, according to an article published Monday by Reuters.
Citing “analysts and sources inside the bank,” the article said that the company’s ambitions to pivot its focus toward higher revenue-generating segments have been limited by the coronavirus pandemic. In the company’s Investor Day held in January, it outlined plans to lift its return on equity and reduce expenses.
The strategy sought to ramp up business both in lucrative fields in which it has experience and in relatively new corners of its operations. In the former category are activities such as wealth management, while the latter consists of businesses such as consumer loans.
According to the article’s sources, the economic strain caused by the outbreak has severely limited the scope for its sales force to win new business. As seen at other banks and financial services companies active in lending, demand for fresh credit has weakened substantially.
Goldman has not officially commented on the article; instead, a spokesman referred to its previous announcements on its latest business strategy. Reuters’ sources did not speculate to what degree management might scale back the financial targets it set in January, or how the company might modify its strategy.
The speculation comes two days before Goldman is scheduled to release the results of its third quarter of fiscal 2020. These are to be delivered before market open on Wednesday. They will be followed immediately by a conference call to discuss them in greater detail.
On Monday, investors seemed unconcerned by the news. They traded the company’s stock up by nearly 3.2%, which comfortably exceeded the gains of the wider equities market on the day.