Goldman Sachs on Thursday upgraded its key profitability target and set new goals for its asset management, transaction banking and consumer businesses as it laid out its strategy for the next three years.

Wall Street's premier investment bank is reshaping itself after a turbulent decade during which profit at its core trading businesses was crimped by tougher regulations brought in after the 2007-09 financial crisis.

Chief Executive David Solomon pointed to progress made over the past two years and said the bank would build on that over the next three years despite headwinds such as inflation and an anticipated slowdown in investment banking and trading activity.

Get Skeptical Investors on Board

"We believe we have the right plan in place that will enable us to serve clients, drive returns and unlock significant value for our shareholders," Solomon said in a presentation at the Credit Suisse Financial Services Forum in Florida.

Despite the bank achieving record profit in 2021, Solomon is still trying to win over some analysts and investors who are skeptical about whether it can sustain its strong performance when market conditions normalize.

The bank has benefited from the Federal Reserve pumping trillions of dollars into financial markets, leading to a deal making boom and rising asset prices, which helped Goldman's investment banking and trading businesses.

Goldman shares were down 0.1% in early trading.

They currently trade at 1.3 times the value of the bank's assets while rivals Morgan Stanley and JPMorgan trade at close to 2 times their book value.

The bank said it expects to a achieve a return on tangible equity (RoTE) of 15-17% over the next three years compared with its previous mid-term guidance of 14%. It expects a return on equity of 14-16% compared with 13% previously.

Goldman also reiterated its efficiency ratio goal of 60%, which effectively means it is running the business at a 40% operating margin.

New Goals for Consumer Banking

The bank set new deposit and revenue goals for transaction and consumer banking.

It expects transaction banking deposits of more than $100 billion by 2024 compared with $54 billion last year. Transaction banking revenues are expected to rise to $750 million by 2024 from $226 last year, the bank said.

Consumer banking deposits are expected to grow to more than $150 billion by 2024 compared with $110 billion last year, the bank said. Consumer banking revenues are expected to rise to more than $4 billion by 2024 from $1.5 billion last year.