The new business segments will be included in the last year’s fourth quarter and annual results report to be announced on 15 January
Goldman Sachs headquarters in New York City (Credit: Wikipedia.org/Quantumquark)
Goldman Sachs, the American investment banking giant, announced that it is reorganising its business segments.
The company has included the changes in the form 8K filed with the US Securities and Exchange Commission.
The new four business divisions include global markets, investment banking, asset management and consumer and wealth management.
The bank will include investing and lending results across all the four segments.
The announcement comes before the bank reports its last year’s fourth quarter and annual results, which is scheduled for 15 January.
In a statement, Goldman Sachs said: “The firm believes this new segment presentation, which is part of its ongoing commitment to organizing the firm in a client-centric way, will not only better reflect how the firm is now managed, but also help drive greater accountability for executing its forward strategy.”
Details of new business segments
The investment banking segment will additionally include results from lending to corporate clients including middle-market lending, relationship lending and acquisition financing. Results from the activities were previously reported under the segment investing and lending.
The new segment global markets, will additionally include results from providing warehouse lending and structured financing to institutional clients. The activities were previously reported under investing and lending.
It will also include the results from transactions in derivatives related to client advisory and underwriting assignments, which were previously reported in the investment banking segment.
The asset management segment will now include results from investments in equity security and lending activities related to the company’s asset management business such as investments in debt securities and loans backed by real estate.
The activities were previously reported under the investing and lending segment.
As a new segment, consumer & wealth management will now include management and other fees, incentive fees and results from deposit-taking activities related to the company’s wealth management business. Earlier, results from the activities were reported under investment management segment.
The new segment will include results from providing loans through private bank, unsecured loans and accepting deposits from its digital platform Marcus by Goldman Sachs, offering credit cards. Previously, these activities were reported in the investing and lending segment.