Goldman Sachs shakes up business units ahead of quarterly results
Reuters
Published Jan 07, 2020 07:38AM ET
Goldman Sachs shakes up business units ahead of quarterly results
(Reuters) - Goldman Sachs Group Inc (N:GS) has overhauled its main business units ahead of its quarterly results next week, the Wall Street bank said on Tuesday, as it seeks to provide investors with greater transparency into its financial performance.
The latest changes are part of a broader strategic overhaul under Chief Executive Officer David Solomon, who is looking to build a bigger consumer business to shield revenue from wild swings in financial markets that have pressured its trading arm.
The bank said it would report its future earnings, starting with the latest December quarter, under the newly named units - investment banking, global markets, asset management and consumer & wealth management.
Goldman renamed its institutional client services business as global markets, while investment management will now be called asset management. The bank is also doing away with its investing and lending unit, it said in a regulatory filing.
It added a new consumer and wealth management segment that includes management and other fees related to managing assets, providing investing and wealth advisory services. (https://
"The new reporting structure appears more centered around its different client segments and should help drive increased accountability in how it executes on its relatively new strategy," Barclays (LON:BARC) analyst Jason Goldberg said.
"The biggest changes appears to be the elimination of 'Investing & Lending', an area that investors viewed as a low multiple business. Those revenue sources were divided up across its new business units," he added.
Earlier in November, Reuters reported the bank may move away from its earlier goal of finding $5 billion in fresh annual revenue by 2020 to focus on new targets including a broad efficiency ratio and profitability measures.
Goldman is expected to unveil the new targets and metrics in January at its first-ever investor day on Jan. 29. It is expected to report fourth-quarter results on Jan. 15.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.