Goldman Sachs CFO: Q3 performance is impressive but warns of AI bubble, launching "Goldman Sachs 3.0" model to strengthen core business

According to the Zhitong Finance APP, as multiple institutions on Wall Street warn of potential bubble risks, Goldman Sachs Group (GS.US) Chief Financial Officer Denis Coleman stated that the bank has adopted an "extra vigilant" management approach regarding the risks posed by artificial intelligence (AI) driving the rise of the U.S. stock market. Additionally, during yesterday's third-quarter earnings call, Coleman emphasized the need to recognize the essential differences between two types of companies during a technology-driven market boom—namely, which companies can truly achieve sustainable growth and which will struggle once the hype subsides. "Stepping back, it is clear that current investor sentiment is undoubtedly quite euphoric," he pointed out. "While I am generally optimistic about the future outlook, market operations follow cyclical patterns, and disciplined risk management is crucial." In the third-quarter earnings reports released at the same time, JP Morgan and Citigroup also issued similar warnings about the risks posed by potentially overvalued markets. Q3 Revenue and Profit Both Increase, Investment Banking Becomes Core Driver Goldman Sachs' third-quarter financial data shows that net revenue for the period reached $15.18 billion, with net profit at $4.1 billion, a significant increase of 37% compared to the same period last year. In terms of specific business segment performance, Goldman Sachs' Global Banking and Markets business reported Q3 net revenue of $10.1 billion, an 18% increase compared to the same period in 2024, remaining stable compared to the second quarter of 2025. Investment banking fee income was $2.66 billion, a year-on-year increase of 42%. The growth was primarily driven by a substantial increase in net revenue from advisory services, reflecting a significant rise in completed merger and acquisition transactions and debt underwriting activities. Driven by a surge in leveraged financing activities, Q3 debt underwriting income also increased; equity underwriting income similarly rose, mainly driven by the active initial public offering (IPO) market. Launch of AI-Driven "Goldman Sachs 3.0" Model, Adhering to Core Business Strategy In the earnings report, Goldman Sachs also disclosed a key strategic initiative—launching the AI-supported, more centralized operational model "Goldman Sachs 3.0." The bank stated that this is a multi-year key project, with core objectives including optimizing the client account opening process, enhancing business profitability, and improving operational efficiency. Updates on the next phase of this model's advancement are expected to be announced in the first quarter of 2026. Additionally, during the earnings call, analysts asked Goldman Sachs about two market concerns, specifically regarding the bankrupt subprime auto loan company Tricolor Holdings and the auto parts supplier First Brands Group. In response, Goldman Sachs clearly stated that the bank has no "direct risk exposure" to either of these companies. Goldman Sachs 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 and strengthening wealth management services for high-net-worth clients. Notably, in September of this year, Goldman Sachs reached a partnership with T. Rowe Price to jointly launch retirement planning and wealth investment products, which will include private market investment channels to enrich asset allocation options for high-net-worth clients