In a live interview on Squawk Box, Goldman Sachs chairman and CEO David Solomon outlined the firm’s strategic positioning for a stronger growth trajectory over the next three to five years. He highlighted that the bank has increased its technology investments by 25% year-over-year, expanded its workforce in consumer banking by 15%, and fortified its balance sheet to target a return on tangible common equity of 12% by 2025. Solomon pointed to sustained momentum in advisory fees—up 8% in the first quarter—and rising loan originations in the consumer division, which grew by $4.2 billion since the start of the year. He also emphasized the firm’s disciplined cost management, noting that non-interest expenses have been held flat compared with the prior year despite higher compliance and infrastructure spending.

Solomon discussed the current U.S. housing affordability crisis, citing a 30% increase in median home prices over the last two years and mortgage rates hovering near 5%. He emphasized that these factors have prompted Goldman Sachs to accelerate mortgage product innovation and expand its Marcus consumer platform, which has attracted over $8 billion in deposits so far this quarter. On regulatory matters, Solomon weighed in on the proposal to cap credit card rates at 15 percentage points above the federal funds rate, warning that such a limit could shrink available credit lines by more than $10 billion industry-wide and potentially increase non-performing loans. He concluded that while near-term market volatility remains, overall business sentiment at Goldman Sachs has improved, reflected in a 10% uptick in institutional client activity since January.

Goldman Sachs has promoted veteran consumer retail banker Ben Frost to chairman of its investment banking division, according to an internal memo. Frost, who joined the firm in 2014, led the bank’s advisory work on two of last year’s largest consumer sector transactions—a $16 billion retail merger and a $9.5 billion e-commerce acquisition. In his new role, he will oversee more than 1,200 bankers across 25 offices globally and will be responsible for setting strategic priorities, client coverage, and deal execution. The promotion underscores Goldman Sachs’s commitment to integrating consumer insights into its investment banking franchise, and follows a year in which the division generated $4.3 billion in revenue, a 6% increase over the prior period.