Goldman's CEO Admits There's 'More Work To Do' Amid Struggles, Eyes New Strategy To Supercharge Growth

Goldman Sachs Group Inc GS is shifting its focus to asset and wealth management as it expects those areas to be the main drivers of growth in the coming years. 

What To Know: For the first time in about 150 years, Goldman Sachs is hosting an in-person analyst day to give presentations on its different business segments. 

Tuesday on CNBC's "Squawk Box," CEO David Solomon acknowledged that the bank's consumer finance platforms have not been up to par in recent years. 

"I think it's absolutely fair that our execution around the consumer platform hasn't been to the standard we'd like it to be," Solomon said.

"There's still opportunity for us. We have some good platforms that have good technology ... but the real story of opportunity for growth for us in the coming years is around asset management and wealth management."

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Goldman Sachs is the fifth-largest asset management firm in the world. The company set a target to reach $10 billion in asset management fees by 2024. It finished 2022 at $8.8 billion and expects to easily exceed its goals, Solomon said, adding the company has also already blown past its fundraising target of $150 billion.

"There’s real opportunity across the firm for us to continue to make the firm more durable," the Goldman Sachs CEO said.

Solomon told CNBC that consistent earnings growth has helped Goldman's stock outperform. According to Benzinga Pro, GS shares are up nearly 90% over the last three years. 

"Our EPS in 2022 was 40% more than our EPS was before our last investor day, so we're making progress, we've got more work to do," Solomon said. 

The bank is mulling several strategic alternatives for its consumer finance business, while strengthening other areas. 

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Solomon noted that Goldman is partnering with more institutions, but it's also transitioning to an asset-light model. 

"We had always used our balance sheet very extensively and part of the strategy has been to significantly reduce our balance sheet, and we are about halfway through that journey," he said.

"We're going to continue to grow the businesses that we think are important to serve our clients. We've got an interesting ethos around Goldman Sachs, and I think it's working."

GS Price Action: Goldman has a 52-week high of $389.57 and a 52-week low of $277.84.

The stock was down 2.61% at $355.99 at the time of writing, according to Benzinga Pro.

Photo: World Bank Photo Collect on flickr and Shutterstock