Solomon, 56, has been Goldman’s president and co-chief operating officer since 2016. Before that, he served as the global co-head of the investment banking division. He will officially assume the new title from Blankfein in early October.
In a statement, Solomon said he is “honored” and “humbled” to lead Goldman Sachs. "I appreciate the confidence Lloyd and the board of directors have placed in me,” he said.
Blankfein will retire from Goldman and as its board’s chairman at the end of the year, at which time he will be granted the title of senior chairman.
“David is the right person to lead Goldman Sachs," said Blankfein in a statement. "He has demonstrated a proven ability to build and grow businesses, identified creative ways to enhance our culture and has put clients at the center of our strategy."
The official dispatch on Solomon’s promotion came as the Wall Street bank exceeded analysts’ expectations by posting earnings of US$5.98 per share on revenue of US$9.4bn in the second quarter.
Despite the impressive quarterly performance, Goldman shares fell in line with the broader market, shedding 1.4% in late morning trade to US$227.95.