Goldman Sachs Group Inc. revamped the way it breaks down results by division to highlight growth in its consumer business and get more credit from investors.
[More: Why we sold to Goldman Sachs]
The firm created a consumer and wealth-management unit that houses the Marcus online lending business and Goldman’s credit-card venture with Apple Inc. The company eliminated its investing and lending segment, a division investors often discounted because profits were difficult to predict.
The moves, outlined in a filing Tuesday, will spread the interest income Goldman receives from its lending efforts across all four of the new segments and make the firm’s divisions more comparable to its competitors. The changes may help with the bank’s effort to show off areas of growth as a long slump in its biggest business — trading — has weighed on shares.
Equity investments made with the firm’s own capital will be housed in a renamed asset-management unit. The bank, which is hosting its first investor day on Jan. 29, has said it’s looking to move away from taking stakes with its own money and is trying to raise more client funds.
[More: Goldman Sachs acquires United Capital]
“The presentation is more consistent with the way the business is run and the way it is presented by peers,” Mike Mayo, an analyst at Wells Fargo & Co., said in a note. “While we view management as focused more on long-term value, this attitude shows that management is aware of an underperforming stock price.”
Goldman climbed 1% at 8:18 a.m. in early New York trading. The stock jumped 38% last year, but it still trades at a lower multiple of its book value than most major U.S. banks.
A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.
Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.
After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.
The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.
An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.