THE GOLDMAN SACHS GROUP, INC. Item 8.01 Other Events.
The Goldman Sachs Group, Inc. (together with its consolidated subsidiaries, the firm) has made certain changes to its business segments, consistent with its organizational changes, commencing with the fourth quarter of 2022.
Prior to the fourth quarter of 2022, the firm had four business segments: Investment Banking, Global Markets, Asset Management and Consumer & Wealth Management.
Beginning with the fourth quarter of 2022, the firm will report its results in the following three business segments: Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The business segments and their revenue sources are presented below: Structure [[Image Removed: LOGO]]
Prior results beginning with the firm's 2020 fiscal year are presented on a comparable basis in the tables on pages 4 - 5.
The changes to the firm's business segments have no effect on the firm's
historical total net revenues, total provision for credit losses, total
operating expenses and total pre-tax earnings in the consolidated statements of
earnings. Prior period segment results have been conformed to the new business
segments.
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The primary changes made were as follows:
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• Global Banking & Markets is a new segment that includes the results
previously reported in Investment Banking and Global Markets, and
additionally includes the results from equity and debt investments related to
the firm's global banking and markets activities, previously reported in
Asset Management.
• Asset & Wealth Management is a new segment that includes the results
previously reported in Asset Management and Wealth Management (previously
included in Consumer & Wealth Management), and additionally includes the
results from the firm's direct-to-consumer banking business, which includes
lending, deposit-taking and investing, previously reported in Consumer &
Wealth Management, as well as the results from middle-market lending related
to the firm's asset management activities, previously reported in Investment
Banking.
• Platform Solutions is a new segment that includes the results from the firm's
consumer platforms, such as partnerships offering credit cards and
point-of-sale financing, previously reported in Consumer & Wealth Management,
and the results from the firm's transaction banking business, previously
reported in Investment Banking.
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The firm's three business segments are as follows:
Global Banking & Markets, which is comprised of:
• Investment banking fees, which includes:
• Advisory, which includes strategic advisory assignments with respect to
mergers and acquisitions, divestitures, corporate defense activities,
restructurings and spin-offs.
• Equity underwriting, which includes offerings of common stock, preferred
stock, convertible securities and exchangeable securities.
• Debt underwriting, which includes investment-grade and high-yield debt
offerings, bank and bridge loans, and structuring of asset-backed
securities.
• Fixed Income, Currency and Commodities (FICC), which includes:
• FICC intermediation, which includes client execution activities related
to making markets in interest rate products, credit products, mortgages,
currencies and commodities.
• FICC financing, which includes providing financing to clients through
warehouse loans (backed by mortgages, corporate loans and consumer
loans), structured credit, asset-backed lending and repurchase
agreements.
• Equities, which includes:
• Equities intermediation, which includes client execution activities
related to making markets in equity products, as well as commissions and
fees from executing and clearing institutional client transactions.
• Equities financing, which includes prime brokerage and other equitiesfinancing activities, including securities lending, margin lending and
swaps.
• Other, which includes relationship lending and acquisition financing (and
related hedges), and investing activities related to the firm's global
banking and markets activities.
Asset & Wealth Management, which is comprised of:
• Activities related to managing client assets across traditional and
alternative assets classes, as well as providing investing and wealth
advisory solutions, providing financial planning and counseling services, and
executing brokerage transactions for wealth management clients. These
activities generate:
• Management and other fees.
• Incentive fees.
• Private banking and lending, which includes lending and deposit-taking
activities for the firm's wealth management clients, including the
direct-to-consumer banking business.
• Equity investments, which includes investing activities related to the firm's
asset management activities, primarily related to public and private equity
investments in corporate, real estate and infrastructure entities, as well as
making investments through consolidated investment entities, substantially
all of which are engaged in real estate investment activities.
• Debt investments, which includes lending activities related to the firm's
asset management activities, including investing in corporate debt, lending
to middle-market clients and providing financing for real estate and other
assets.
Platform Solutions, which is comprised of:
• Consumer platforms, which includes partnerships offering credit cards and
point-of-sale financing.
• Transaction banking and other, which includes cash management services, such
as deposit-taking and payment solutions for corporate and institutional
clients.
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Segment Operating Results (unaudited)
$ in millions
THREE MONTHS ENDED
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31,
2022 2022 2022 2021
GLOBAL BANKING & MARKETS
Advisory $ 972 $ 1,197 $ 1,127 $ 1,631
Equity underwriting 244 145 276 1,023
Debt underwriting
328 457 741 947
Investment banking fees 1,544 1,799 2,144 3,601
FICC intermediation 2,896 2,921 4,099 1,313
FICC financing
721 721 631 555
FICC 3,617 3,642 4,730 1,868
Equities intermediation 1,608 1,767 2,178 1,343
Equities financing
1,124 1,177 1,061 837
Equities 2,732 2,944 3,239 2,180
Other
(329) (43) (51) (59)
Net revenues
7,564 8,342 10,062 7,590
Provision for credit losses 63 208 191 (16)
Operating expenses
4,224 4,431 4,973 4,090
Pre-tax earnings
$ 3,277 $ 3,703 $ 4,898 $ 3,516
ASSET & WEALTH MANAGEMENT
Management and other fees $ 2,255 $ 2,243 $ 2,035 $ 2,047
Incentive fees 56 185 79 235
Private banking and lending 675 538 492 426
Equity investments 721 (104) (294) 1,447
Debt investments
326 317 291 705
Net revenues 4,033 3,179 2,603 4,860
Provision for credit losses (13) 149 203 72
Operating expenses
2,955 2,823 2,409 2,876
Pre-tax earnings / (loss) $ 1,091 $ 207 $ (9) $ 1,912
PLATFORM SOLUTIONS
Consumer platforms $ 290 $ 252 $ 201 $ 125 Transaction banking and other
88 91 67 64
Net revenues 378 343 268 189
Provision for credit losses 465 310 167 288
Operating expenses
525 399 334 304
Pre-tax earnings / (loss) $ (612) $ (366) $ (233) $ (403)
TOTAL
Net revenues
$ 11,975 $ 11,864 $ 12,933 $ 12,639
Provision for credit losses 515 667 561 344
Operating expenses
7,704 7,653 7,716 7,270
Pre-tax earnings
$ 3,756 $ 3,544 $ 4,656 $ 5,025
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Segment Operating Results (unaudited)
$ in millions
NINE MONTHS ENDED YEAR ENDED
SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
2022 2021 2020
GLOBAL BANKING & MARKETS
Advisory $ 3,296 $ 5,654 $ 3,064
Equity underwriting 665 4,985 3,376
Debt underwriting
1,526 3,497 2,660
Investment banking fees 5,487 14,136 9,100
FICC intermediation 9,916 8,714 10,106
FICC financing
2,073 1,897 1,347
FICC 11,989 10,611 11,453
Equities intermediation 5,553 7,707 7,069
Equities financing
3,362 4,015 2,815
Equities 8,915 11,722 9,884
Other
(423) 265 32
Net revenues
25,968 36,734 30,469
Provision for credit losses 462 (171) 1,216
Operating expenses
13,628 19,542 18,884
Pre-tax earnings $ 11,878 $ 17,363 $ 10,369
ASSET & WEALTH MANAGEMENT
Management and other fees $ 6,533 $ 7,750 $ 6,750
Incentive fees 320 616 401
Private banking and lending 1,705 1,661 1,372
Equity investments 323 8,794 3,902
Debt investments
934 3,144 1,332
Net revenues
9,815 21,965 13,757
Provision for credit losses 339 (169) 1,395
Operating expenses
8,187 11,406 9,469
Pre-tax earnings
$ 1,289 $ 10,728 $ 2,893
PLATFORM SOLUTIONS
Consumer platforms $ 743 $ 424 $ 188
Transaction banking and other 246 216 146
Net revenues
989 640 334
Provision for credit losses 942 697 487
Operating expenses
1,258 990 630
Pre-tax earnings / (loss) $ (1,211) $ (1,047) $ (783)
TOTAL
Net revenues
$ 36,772 $ 59,339 $ 44,560
Provision for credit losses 1,743 357 3,098
Operating expenses
23,073 31,938 28,983
Pre-tax earnings
$ 11,956 $ 27,044 $ 12,479
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