Goldman Sachs Group Inc. revised its business segments beginning with the fourth quarter of 2019.
The company changed its four business segments to investment banking, global markets, asset management, and consumer and wealth management. Its former segments were investment banking, institutional client services, investment and lending, and investment management.
Under the revamped divisions, investment banking will include financial advisory, underwriting and corporate lending.
Global markets, previously called institutional client services, will be composed of fixed income, currency and commodities, and equities.
Asset management, which was renamed from investment management, will consist of activities related to managing institutional and third-party distribution assets across traditional and alternative asset classes, equity investments and lending.
Its new segment, consumer and wealth management, will consist of wealth management and consumer banking including lending and deposit-taking activities through the company's digital platform, Marcus.
The changes will align Goldman Sachs' presentation of its business segments with its peers, Bloomberg News reported, citing a comment from Wells Fargo & Co. analyst Mike Mayo. The changes will also highlight the growth of Goldman Sachs' lending businesses, which generate steadier net interest income revenue streams than the more volatile trading fees, according to a Bloomberg Intelligence report cited by the news outlet.