06:46 AM EDT, 07/16/2024 (MT Newswires) -- Goldman Sachs ( GS ) plans to "moderate" its stock buybacks in Q3 compared with the previous quarter due to an increased stress capital buffer requirement, CFO Denis Coleman said Monday during a conference call.

"We will dynamically deploy capital to support our client franchise while targeting a prudent buffer above our new requirement," Coleman said.

Coleman said Goldman bought back $3.5 billion in shares in Q2 and although the company is moderating its repurchases it still has "capital flexibility."

CEO David Solomon said Goldman's recent stress test results showed "the year-over-year increase in our stress capital buffer does not seem to reflect the strategic evolution of our business and the continuous progress we've made to reduce our stress loss intensity," and that the company is "engaging with our regulators to better understand its determinations" given to the discrepancy reflected in the stress test results.

Coleman said Goldman will manage its capital to an "appropriate buffer" and that the company is "still certainly in a position to continue to return capital to shareholders."

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