8-K
GOLDMAN SACHS GROUP INC Depositary Shares, Each Representing 1/1,000th Interest in a Share of 5.50% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series J Depositary Shares, Each Representing 1/1,000th Interest in a Share of 6.375% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K 5.793% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital II NY false 0000886982 0000886982 2023-01-12 2023-01-12 0000886982 us-gaap:CommonStockMember 2023-01-12 2023-01-12 0000886982 gs:SeriesAFloatingRatePreferredStockMember 2023-01-12 2023-01-12 0000886982 gs:SeriesCFloatingRatePreferredStockMember 2023-01-12 2023-01-12 0000886982 gs:SeriesDFloatingRatePreferredStockMember 2023-01-12 2023-01-12 0000886982 gs:SeriesJFivePointFiveZeroPercentageFixedToFloatingRatePreferredStockMember 2023-01-12 2023-01-12 0000886982 gs:SeriesKSixPointThreeSevenFivePercentageFixedToFloatingRatePreferredStockMember 2023-01-12 2023-01-12 0000886982 gs:FivePointSevenNineThreePercentageFixedToFloatingRateNormalApexMember 2023-01-12 2023-01-12 0000886982 gs:FloatingRateNormalApexMember 2023-01-12 2023-01-12 0000886982 gs:SeriesFMediumTermNotesCallableFixedAndFloatingRateNotesDueMarch2031OfGSFinanceCorpMember 2023-01-12 2023-01-12 0000886982 gs:SeriesFMediumTermNotesCallableFixedAndFloatingRateNotesDueMay2031OfGSFinanceCorpMember 2023-01-12 2023-01-12

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

                      

   

CURRENT REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

  

Date of Report (Date of earliest event reported): January 12, 2023

The Goldman Sachs Group, Inc.

(Exact name of registrant as specified in its charter)

Commission File Number: 001-14965

 

Delaware   13-4019460

(State or other jurisdiction of

incorporation or organization)

  

(IRS Employer

Identification No.)

200 West Street, New York, N.Y.   10282
(Address of principal executive offices)   (Zip Code)

(212) 902-1000

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading
Symbol		  

Exchange

on which

registered

Common stock, par value $.01 per share   GS   NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series A   GS PrA   NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series C   GS PrC   NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of Floating Rate Non-Cumulative Preferred Stock, Series D   GS PrD   NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 5.50% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series J   GS PrJ   NYSE
Depositary Shares, Each Representing 1/1,000th Interest in a Share of 6.375% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K   GS PrK   NYSE
5.793% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital II   GS/43PE   NYSE
Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital III   GS/43PF   NYSE
Medium-Term Notes, Series F, Callable Fixed and Floating Rate Notes due March 2031 of GS Finance Corp.   GS/31B   NYSE
Medium-Term Notes, Series F, Callable Fixed and Floating Rate Notes due May 2031 of GS Finance Corp.   GS/31X   NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

TABLE OF CONTENTS

 

Item 8.01 Other Events

  

SIGNATURE

  

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

 

 

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.

 

1

The primary changes made were as follows:

 

LOGO

 

  •  

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.

 

2

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 equities financing 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.

 

3

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Operating Results (unaudited)

$ in millions

   
     THREE MONTHS ENDED                                                           
   
    

 SEPTEMBER 30, 

2022

    

 JUNE 30, 

2022

    

 MARCH 31, 

2022

    

 DECEMBER 31, 

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          

 

4

The Goldman Sachs Group, Inc. and Subsidiaries

Segment Operating Results (unaudited)

$ in millions

     
     NINE MONTHS ENDED     YEAR ENDED                    
   
    

 SEPTEMBER 30, 

2022

    

 DECEMBER 31, 

2021

    

 DECEMBER 31, 

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          

 

5

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

THE GOLDMAN SACHS GROUP, INC.

  
     

          (Registrant)

  

Date: January 12, 2023

  

By:

  

/s/ Denis P. Coleman III

  
                                                                                                        

Name:  Denis P. Coleman III

  
   

Title:    Chief Financial Officer