ACKNOWLEDGEMENT

First and foremost, I thank the almighty God for bestowing me good health and
confidence to complete the project on time.

I would like to thank the Management of SRM Institute of Science &

Technology, Vadapalani Campus for providing me the opportunity to pursue
my under-graduation degree.

I would like to express my hearty gratitude to the Dean Dr. K.R.

Ananthapadmanaban, Ph.D. for his wholehearted support and
encouragement.

I am very much obliged and indebted to our Head of the Department Dr. V.
Venkatragavan, Ph.D. for his valuable suggestions and encouragement to
complete this project report successfully.

I am ineffably indebted to Dr. S. Thiruvarangadas for his continuous

guidance and encouragement to accomplish this project report.

I am also thankful to all the Department of Commerce Faculty Members for

their support and suggestions.

I am grateful to thank my parents, friends and other persons who have directly
and indirectly helped me during the preparation of this report.

R.ROZARIO
 TABLE OF CONTENT

CHAPTER NO. CONTENT PAGE NO.

I.
INTRODUCTION ABOUT
THE AREA, PURPOSE OF
THE REPORT,
METHODOLOGY,
LIMITATIONS OF THE
STUDY
II. REVIEW OF
LITERATURE

III. INDUSTRY AND

COMPANY PROFILE

IV. FINANCIAL ANALYSIS

V. FINANCIAL
STATEMENT
 VI. RISK ANALYSIS

VII. CONCLUSION
 CHAPTER - 1

1.1 INTRODUCTION

1
 CHAPTER- 1

1.1 INTRODUCTION:

This report analyzes the financial performance of Goldman Sachs, a global

investment banking, securities and investment management firm, for the fiscal
years 2019, 2020 and 2021. The report focuses on revenue and profitability
analysis, financial ratios analysis, and liquidity analysis to evaluate the
company's financial performance.

Goldman Sachs has a strong reputation in the financial industry and is

recognized for its expertise in investment banking, securities trading, and asset
management. The company has a global presence with operations in North
America, Europe, Asia and other regions. Over the past few years, the company
has faced challenges due to the COVID-19 pandemic, economic uncertainty,
and regulatory changes. Therefore, it is essential to evaluate the financial
performance of the company to understand its financial health and potential for
future growth.

This report aims to provide insights into the financial performance of Goldman
Sachs by analyzing key financial indicators such as revenue, profitability,
financial ratios, and liquidity. The report uses financial data obtained from the
company's annual reports and financial statements to conduct a comprehensive
analysis of the company's financial performance.

The purpose of this report is to provide investors, analysts, and other

stakeholders with a detailed analysis of the financial performance of Goldman
Sachs. The report aims to provide an objective evaluation of the company's
financial performance and to identify areas where the company has performed
well and areas where improvement is needed.

The report is organized into three main sections, each focusing on a specific
aspect of the company's financial performance. The first section analyzes the

2
company's revenue and profitability, while the second section evaluates the
company's financial ratios. The third section focuses on the liquidity analysis of
the company.

1.2 About the area

Finance:

Finance is the study and discipline of money, currency and capital assets. It is

related to, but not synonymous with economics, which is the study
of production, distribution, and consumption of money, assets, goods and
services (the discipline of financial economics bridges the two). Finance activities
take place in financial systems at various scopes, thus the field can be roughly
divided into personal, corporate, and public finance. 

In a financial system, assets are bought, sold, or traded as financial instruments,

such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can
also be banked, invested, and insured to maximize value and minimize loss. In
practice, risks are always present in any financial action and entities.

A broad range of subfields within finance exists due to its wide

scope. Asset, money, risk and investment management aim to maximize value and
minimize volatility. Financial analysis is the viability, stability, and profitability
assessment of an action or entity. In some cases, theories in finance can be
tested using the scientific method, covered by experimental finance.

Some fields are multidisciplinary, such as mathematical finance, financial

law, financial economics, financial engineering and financial technology. These
fields are the foundation of business and accounting.

The early history of finance parallels the early history of money, which

is prehistoric. Ancient and medieval civilizations incorporated basic functions of
finance, such as banking, trading and accounting, into their economies. In the
late 19th century, the global financial system was formed.

In the middle of the 20th century, finance emerged as a distinct academic

discipline, separate from economics.  (The first academic journal, The Journal of
Finance, began publication in 1946.) The earliest doctoral programs in finance
were established in the 1960s and 1970s. Finance is today also widely
studied through career-focused undergraduate and master's level programs.

3
The financial system:

As above, the financial system consists of the flows of capital that take place
between individuals and households (personal finance), governments (public
finance), and businesses (corporate finance). "Finance" thus studies the process
of channeling money from savers and investors to entities that need
it. [b] Savers and investors have money available which could earn interest or
dividends if put to productive use. Individuals, companies and governments
must obtain money from some external source, such as loans or credit, when
they lack sufficient funds to operate.

In general, an entity whose income exceeds its expenditure can lend or invest

the excess, intending to earn a fair return. Correspondingly, an entity where
income is less than expenditure can raise capital usually in one of two ways: (i)
by borrowing in the form of a loan (private individuals), or by
selling government or corporate bonds; (ii) by a corporation selling equity, also
called stock or shares (which may take various forms: preferred stock or common
stock). The owners of both bonds and stock may be institutional investors –
financial institutions such as investment banks and pension funds – or private
individuals, called private investors or retail investors; see Financial market
participants.

The lending is often indirect, through a financial intermediary such as a bank, or

via the purchase of notes or bonds (corporate bonds, government bonds, or mutual
bonds) in the bond market. The lender receives interest, the borrower pays a
higher interest than the lender receives, and the financial intermediary earns the
difference for arranging the loan. A bank aggregates the activities of many
borrowers and lenders. A bank accepts deposits from lenders, on which it pays
interest. The bank then lends these deposits to borrowers. Banks allow
borrowers and lenders, of different sizes, to coordinate their activity.

Investing typically entails the purchase of stock, either individual securities, or

via a mutual fund for example. Stocks are usually sold by corporations to
investors so as to raise required capital in the form of " equity financing", as
distinct from the debt financing described above. The financial intermediaries
here are the investment banks. The investment banks find the initial investors and

4
facilitate the listing of the securities, typically shares and bonds. Additionally,
they facilitate the securities exchanges, which allow their trade thereafter, as well
as the various service providers which manage the performance or risk of these
investments. These latter include mutual funds, pension funds, wealth managers,
and stock brokers, typically servicing retail investors (private individuals).

Inter-institutional trade and investment, and fund-management at this scale, is

referred to as "wholesale finance". Institutions here extend the products offered,
with related trading, to include bespoke options, swaps, and structured products,
as well as specialized financing; this "financial engineering" is inherently
mathematical, and these institutions are then the major employers
of "quants" (see below). In these institutions, risk management, regulatory capital,
and compliance play major roles.

Personal Finance:

Personal finance is defined as "the mindful planning of monetary spending and

saving, while also considering the possibility of future risk". Personal finance
may involve paying for education, financing durable goods such as real
estate and cars, buying insurance, investing, and saving for retirement. Personal
finance may also involve paying for a loan or other debt obligations. The main
areas of personal finance are considered to be income, spending, saving,
investing, and protection. The following steps, as outlined by the Financial
Planning Standards Board, suggest that an individual will understand a
potentially secure personal finance plan after:

Purchasing insurance to ensure protection against unforeseen personal events;

Understanding the effects of tax policies, subsidies, or penalties on the

management of personal finances;

Understanding the effects of credit on individual financial standing;

Developing a savings plan or financing for large purchases (auto, education,

home);

Planning a secure financial future in an environment of economic instability;

Pursuing a checking and/or a savings account;

Preparing for retirement or other long term expenses.

Corporate finance:

5
Dōjima Rice Exchange, the world's first futures exchange, established
in Osaka in 1697

Main articles: Corporate finance and Financial management

Further information: Strategic financial management

Corporate finance deals with the actions that managers take to increase the
value of the firm to the shareholders, the sources of funding and the capital
structure of corporations, and the tools and analysis used to allocate financial
resources. While corporate finance is in principle different from managerial
finance, which studies the financial management of all firms rather than
corporations alone, the concepts are applicable to the financial problems of all
firms,[14] and this area is then often referred to as "business finance".

Typically, then, "corporate finance" relates to the long term objective of

maximizing the value of the entity's assets, its stock, and its return to shareholders,
while also balancing risk and profitability. This entails three primary areas:

Capital budgeting: selecting which projects to invest in – here,

accurately determining value is crucial, as judgements about asset values can be
"make or break" 

Dividend policy: the use of "excess" funds – are these to be reinvested in the
business or returned to shareholders

Capital structure: deciding on the mix of funding to be used – here attempting

to find the optimal capital mix re debt-commitments vs cost of capital

The latter creates the link with investment banking and securities trading, as above,

in that the capital raised will generically comprise debt, i.e. corporate bonds,
and equity, often listed shares. Re risk management within corporates, see below.

Financial managers – i.e. as distinct from corporate financiers – focus more on

the short term elements of profitability, cash flow, and "working capital
management" (inventory, credit and debtors), ensuring that the firm can safely and
profitably carry out its financial and operational objectives; i.e. that it: (1) can
service both maturing short-term debt repayments, and scheduled long-term
debt payments, and (2) has sufficient cash flow for ongoing and
upcoming operational expenses. See Financial management § Role and Financial
analyst § Corporate and other.

6
Public finance:

President George W. Bush, speaking on the Federal Budget in 2007,

here requesting additional funds from Congress

2020 US Federal Revenues and Outlays

Main article: Public finance

Public finance describes finance as related to sovereign states, sub-national

entities, and related public entities or agencies. It generally encompasses a
long-term strategic perspective regarding investment decisions that affect
public entities.These long-term strategic periods typically encompass five or
more years. Public finance is primarily concerned with: 

Identification of required expenditures of a public sector entity;

Source(s) of that entity's revenue;

The budgeting process;

Sovereign debt issuance, or municipal bonds for public works projects.

Central banks, such as the Federal Reserve System banks in the United States and

the Bank of England in the United Kingdom, are strong players in public finance.

7
They act as lenders of last resort as well as strong influences on monetary and
credit conditions in the economy.[20]

Development finance, which is related, concerns investment in economic

development projects provided by a (quasi) governmental institution on a non-
commercial basis; these projects would otherwise not be able to get financing.
See Public utility § Finance. A public–private partnership is primarily used
for infrastructure projects: a private sector corporate provides the financing up-
front, and then draws profits from taxpayers and/or users.

Investment management:

Share prices listed in a Korean Newspaper

"The excitement before the bubble burst" – viewing prices via ticker tape,
shortly before the Wall Street Crash of 1929

8
Modern price-ticker. This infrastructure underpins contemporary exchanges,
evidencing prices and related ticker symbols. The ticker symbol is represented
by a unique set of characters used to identify the subject of the financial
transaction.

Main article: Investment management

See also: Active management and Passive management

Investment management is the professional asset management of various

securities – typically shares and bonds, but also other assets, such as real estate,
commodities and alternative investments – in order to meet specified investment
goals for the benefit of investors.

As above, investors may be institutions, such as insurance companies, pension

funds, corporations, charities, educational establishments, or private investors,
either directly via investment contracts or, more commonly, via collective
investment schemes like mutual funds, exchange-traded funds, or REITs.

At the heart of investment management is asset allocation – diversifying the

exposure among these asset classes, and among individual securities within each
asset class – as appropriate to the client's investment policy, in turn, a function of
risk profile, investment goals, and investment horizon (see Investor profile).
Here:

Portfolio optimization is the process of selecting the best portfolio given the
client's objectives and constraints.

Fundamental analysis is the approach typically applied in valuing and evaluating

the individual securities.

Overlaid is the portfolio manager's investment style –

broadly, active vs passive, value vs growth, and small cap vs. large cap –
and investment strategy.

9
In a well-diversified portfolio, achieved investment performance will, in general,
largely be a function of the asset mix selected, while the individual securities
are less impactful. The specific approach or philosophy will also be significant,
depending on the extent to which it is complementary with the market cycle.

A quantitative fund is managed using computer-based

techniques (increasingly, machine learning) instead of human judgment. The
actual trading also, is typically automated via sophisticated algorithms.

Risk management:

Crowds gathering outside the New York Stock Exchange after the Wall Street
Crash of 1929

Customers queuing outside a Northern Rock branch in the United Kingdom to

withdraw their savings during the financial crisis of 2007–2008

Main article: Financial risk management

Risk management, in general, is the study of how to control risks and balance the
possibility of gains; it is the process of measuring risk and then developing and
implementing strategies to manage that risk. Financial risk management is the
practice of protecting corporate value against financial risks, often
by "hedging" exposure to these using financial instruments. The focus is

10
particularly on credit and market risk, and in banks, through regulatory capital,
includes operational risk.

Credit risk is risk of default on a debt that may arise from a borrower failing to
make required payments;

Market risk relates to losses arising from movements in market variables such as

prices and exchange rates;

Operational risk relates to failures in internal processes, people, and systems, or

to external events.

Financial risk management is related to corporate finance in two ways. Firstly,

firm exposure to market risk is a direct result of previous capital investments
and funding decisions; while credit risk arises from the business's credit policy
and is often addressed through credit insurance and provisioning. Secondly, both
disciplines share the goal of enhancing or at least preserving, the
firm's economic value, and in this context overlaps also enterprise risk
management, typically the domain of strategic management. Here, businesses
devote much time and effort to forecasting, analytics and performance monitoring.
See also "ALM" and treasury management.

For banks and other wholesale institutions, risk management focuses

on managing, and as necessary hedging, the various positions held by the
institution – both trading positions and long term exposures – and on calculating
and monitoring the resultant economic capital, and regulatory capital under Basel
III. The calculations here are mathematically sophisticated, and within the
domain of quantitative finance as below. Credit risk is inherent in the business of
banking, but additionally, these institutions are exposed to counterparty credit
risk. Banks typically employ Middle office "Risk Groups" here, whereas front
office risk teams provide risk "services" / "solutions" to customers.

Additional to diversification – the fundamental risk mitigant here – investment

managers will apply various risk management techniques to their portfolios as
appropriate: these may relate to the portfolio as a whole or to individual
stocks; bond portfolios are typically managed via cash flow
matching or immunization. Re derivative portfolios (and positions), "the
Greeks" is a vital risk management tool – it measures sensitivity to a small
change in a given underlying parameter so that the portfolio can be rebalanced
accordingly by including additional derivatives with offsetting characteristics.

1.3 Purpose of the report:

The purpose of a financial report from Goldman Sachs is to provide

information about the financial performance of the company over a specific
period of time (in this case, 2020 to 2022). The scope of the report may include
information about the company's revenues, expenses, profits, losses, and other

11
financial metrics. It may also provide analysis and commentary on economic
and market trends that impact the financial sector, as well as strategic
initiatives that the company has undertaken during the reporting period.

1.4 Methodology used in the report:

The methodology used in a financial report from Goldman Sachs would likely
involve a combination of quantitative and qualitative analysis. Quantitative
analysis may involve the use of financial ratios, financial statements, and other
financial metrics to assess the company's financial performance. Qualitative
analysis may involve an assessment of the company's strategic initiatives,
market trends, and other non-financial factors that impact its financial
performance.

1.5 Limitations of the report:

Data Limitations: The accuracy and completeness of financial data can be

limited by the quality of the underlying data sources. If data sources are
incomplete or inaccurate, the analysis may be limited in its accuracy and
usefulness.

Market Limitations: The financial markets can be unpredictable and subject

to sudden shifts in sentiment, which can impact the accuracy of financial
reports. A report may reflect the prevailing market conditions at the time it was
prepared, but those conditions may change rapidly and unpredictably.

Scope Limitations: The scope of a finance report may be limited by the

resources available to the analysts preparing it. If the analysis is not sufficiently
comprehensive, it may overlook important trends or factors that could impact
financial performance.

12
 CHAPTER- 2

REVIEW OF LITERATURE

CHAPTER- 2
REVIEW OF LITERATURE

1. "The Culture of Goldman Sachs" by Lisa Endlich. This book explores

the inner workings and culture of Goldman Sachs during the 1990s and early
2000s, and sheds light on the company's competitive and ruthless approach to
business.

13
2. "Goldman Sachs: The Culture of Success" by Lisa Endlich. Another book
by Lisa Endlich, this one delves into the company's history and its evolution
into one of the most successful and influential financial institutions in the
world.

3. "The Business of Investment Banking" by K. Thomas Liaw. This book

provides an overview of investment banking and includes a chapter on
Goldman Sachs, discussing the company's history, organizational structure, and
business strategies.

4. "Goldman Sachs and the Post-2008 Financial Crisis" by David Meyer.

This article analyzes Goldman Sachs' response to the 2008 financial crisis and
the regulatory reforms that followed, as well as the company's role in the crisis
itself.

5. "The Goldman Sachs Group, Inc.: A Case Study in Turnaround

Leadership" by Brian D. Miller. This case study examines the leadership
strategies implemented by Goldman Sachs CEO Lloyd Blankfein during the
company's recovery from the financial crisis.

6. "The Power of Reputation: Strengthening the Reputation of Goldman

Sachs" by Daniel Diermeier and David F. Larcker. This article discusses the
importance of reputation in the financial industry and explores how Goldman
Sachs can strengthen its own reputation following the financial crisis.

7. One study by Nalebuff and Ayres (2008) argues that the company's success
is due to its ability to create and maintain long-term relationships with its
clients, which in turn generates repeat business and helps to mitigate the risks
associated with short-term fluctuations in the market.

8. Another study by Merton (2010) examines the importance of risk

management in Goldman Sachs' business model and argues that the company's
success is due to its ability to manage risk effectively and prudently.

9. One study by Bebchuk et al. (2009) argues that the company's governance
structure is overly concentrated and gives too much power to its top executives,
which may lead to conflicts of interest and potentially harmful decisions.

10. Study by Bhagat and Bolton (2008) examines the impact of Goldman
Sachs' board of directors on its financial performance and finds that the board's
independence and expertise are positively associated with the company's
profitability.

11. One study by Duffie and Zhu (2009) examines the company's use of credit
derivatives to manage credit risk and finds that the company's risk management
practices were effective in mitigating the impact of the subprime mortgage
crisis.

14
12. Study by Hull and White (2010) examines the company's use of value-at-
risk (VaR) models to manage market risk and finds that the models were
effective in identifying and managing potential risks.

13. One study by Li and Li (2010) examines the company's profitability and
finds that the company's business model and risk management practices were
key factors in its success.

14. Study by Gabaix et al. (2009) examines the company's compensation

practices and finds that the company's employees were compensated at a level
that was higher than what would be expected given their performance.

15
 CHAPTER-3

INDUSTRY AND COMPANY PROFILE

CHAPTER-3

INDUSTRY AND COMPANY PROFILE

3.1 Industry Profile:

16
Goldman Sachs is one of the leading global investment banking and securities
firms, with a long history of providing financial services to clients around the
world. The company operates in a highly competitive and rapidly changing
industry, and it faces many challenges and opportunities as it seeks to maintain
its position as a market leader.

The investment banking and securities industry is characterized by a wide

range of activities and services, including underwriting, trading, and investment
management. Investment banks such as Goldman Sachs typically offer a full
range of services to clients, including advisory services, capital raising, and risk
management.

One of the key drivers of growth in the investment banking and securities
industry is the global economy. Economic growth drives demand for capital
raising and advisory services, and a strong global economy can lead to
increased activity in the financial markets. However, the industry is also
subject to significant regulatory oversight, particularly in the United States.

Goldman Sachs operates in a number of different segments within the

investment banking and securities industry. These include investment banking,
institutional client services, investing and lending, and investment
management. The company's success in these segments is driven by a number
of factors, including its strong reputation, its extensive network of relationships
with clients, and its expertise in financial services.

Investment Banking:

The investment banking segment of Goldman Sachs provides a range of

services to corporate clients, including mergers and acquisitions, underwriting,
and financial advisory services. This segment is a key driver of growth for the
company, as it generates significant revenue from advising clients on complex
transactions and providing financing services.

The investment banking industry is highly competitive, with many firms vying
for a limited number of lucrative deals. To succeed in this segment, Goldman
Sachs must maintain a strong reputation for expertise and quality service, and it
must develop strong relationships with clients and other stakeholders.

Institutional Client Services:

The institutional client services segment of Goldman Sachs provides a range of

trading and risk management services to institutional clients, including fixed
income, currency, and commodity products, as well as equities and securities
lending. This segment is also a key driver of growth for the company, as it

17
generates significant revenue from trading activities and from providing risk
management services to clients.

The institutional client services industry is highly competitive, with many firms
vying for a limited number of trading opportunities and risk management
services. To succeed in this segment, Goldman Sachs must maintain a strong
reputation for expertise and quality service, and it must develop strong
relationships with clients and other stakeholders.

Investing and Lending:

The investing and lending segment of Goldman Sachs makes direct

investments in companies and provides lending services to corporate and
individual clients. This segment is a key driver of growth for the company, as it
generates significant revenue from direct investments and from lending
activities.

The investing and lending industry is also highly competitive, with many firms
vying for a limited number of investment opportunities and lending services.
To succeed in this segment, Goldman Sachs must maintain a strong reputation
for expertise and quality service, and it must develop strong relationships with
clients and other stakeholders.

Investment Management:

The investment management segment of Goldman Sachs offers asset

management services to institutional and individual clients. This segment is a
key driver of growth for the company, as it generates significant revenue from
managing assets on behalf of clients.

The investment management industry is highly competitive, with many firms

vying for a limited number of clients and assets under management. To succeed
in this segment, Goldman Sachs must maintain a strong reputation for expertise
and quality service, and it must develop strong relationships with clients and
other stakeholders.

The Investment Banking segment offers financial advisory services, including

mergers and acquisitions, divestitures, and spin-offs. The Institutional Client
Services segment provides sales and trading services to institutional clients,
including fixed income, currency, and commodity products, as well as equities
and securities lending. The Investing and Lending segment makes direct
investments in companies and provides lending services to corporate and
individual clients. Finally, the Investment Management segment offers asset
management services to institutional and individual clients.

Regulatory Environment:

18
The investment banking and securities industry is subject to significant
regulatory oversight, particularly in the United States. The regulatory
environment is shaped by a number of factors, including laws and regulations
governing securities trading and investment activities, as well as laws and
regulations governing financial institutions.

3.2 Market Overview:

The investment banking and securities industry plays a vital role in the global
economy, facilitating corporate finance transactions and providing advisory
services to corporations, governments, and other institutions. This industry has
undergone significant changes in recent years, with increased regulatory
scrutiny and a greater emphasis on risk management.

The industry is highly competitive, with many firms vying for a limited number
of lucrative deals. The industry is also highly concentrated, with a small
number of large firms dominating the market. These firms are able to leverage
their size and scale to offer a wide range of services and maintain relationships
with key clients.

The investment banking and securities industry is subject to significant

regulation by government agencies, particularly in the United States. The
Securities and Exchange Commission (SEC) is the primary regulatory body for
the industry, responsible for enforcing securities laws and regulations. Other
regulatory bodies include the Financial Industry Regulatory Authority (FINRA)
and the Federal Reserve.

Trends and Challenges:

The investment banking and securities industry is facing a number of trends

and challenges that are shaping its future. One key trend is the shift towards
passive investing, which involves investing in index funds and other passive
products rather than actively managed funds. This trend is being driven by a
number of factors, including the growing popularity of low-cost investment
options and the increasing awareness of the impact of fees on investment
returns.

Another trend is the growing importance of technology in the industry.

Investment banks and securities firms are increasingly leveraging technology to
streamline their operations and enhance their services. This includes the use of
artificial intelligence, machine learning, and other advanced technologies to
analyze data and make investment decisions.

The investment banking and securities industry is also facing a number of

challenges, including increased regulatory scrutiny and growing competition

19
from non-traditional players such as fintech firms. These challenges are driving
investment banks and securities firms to adapt to changing market conditions
and develop new strategies to stay competitive.

Key Players:

The investment banking and securities industry is dominated by a small

number of large firms, including Goldman Sachs, JPMorgan Chase, Morgan
Stanley, Citigroup, and Bank of America Merrill Lynch. These firms are able
to leverage their size and scale to offer a wide range of services and maintain
relationships with key clients.

3.3 Company profile:

Goldman Sachs is a multinational investment banking and financial services

company headquartered in New York City. Founded in 1869, the company has
grown to become one of the largest and most influential financial institutions in
the world, with a presence in over 40 countries and a market capitalization of
over $100 billion.

The company's primary business is investment banking, which includes

advising clients on mergers and acquisitions, underwriting securities offerings,
and providing strategic advice on corporate finance and capital raising.
Goldman Sachs also operates in the areas of asset management, securities
trading, and private wealth management.

In recent years, Goldman Sachs has become known for its sophisticated risk
management practices, which have helped it weather the global financial crisis
of 2008 and subsequent economic downturns. The company has a reputation
for attracting and retaining top talent, and is known for its rigorous training
programs and high standards of professionalism.

Goldman Sachs has a strong focus on sustainability and has made a

commitment to achieving net-zero greenhouse gas emissions by 2030. The
company is also actively engaged in philanthropic activities, including its
10,000 Women initiative, which aims to provide business education and
support to women entrepreneurs around the world.

In terms of financial performance, Goldman Sachs has consistently been one of

the most profitable companies in the financial services industry. In 2021, the
company reported net revenues of $47.6 billion and net earnings of $12.6
billion.

20
Goldman Sachs operates through four main business segments: Investment
Banking, Global Markets, Asset Management, and Consumer & Wealth
Management.

Investment Banking: This segment includes services such as advising clients

on mergers and acquisitions, underwriting securities offerings, and providing
strategic advice on corporate finance and capital raising. The Investment
Banking division is divided into two sub-segments: Financial Advisory and
Underwriting.

Financial Advisory involves advising clients on strategic matters, such as

mergers and acquisitions, divestitures, and restructuring. The Underwriting
sub-segment includes the underwriting and placement of public and private
equity and debt offerings.

Global Markets: This segment includes the company's trading and market-
making activities in equity and fixed income securities, currencies,
commodities, and other financial instruments. The Global Markets division is
divided into two sub-segments: Fixed Income, Currency and Commodities
(FICC) and Equities.

The FICC sub-segment includes trading activities in interest rate products,

credit products, mortgages, currencies, and commodities. The Equities sub-
segment includes trading activities in equities, equity derivatives, and
structured products.

Asset Management: This segment includes the company's investment

management services, including investment strategies across a range of asset
classes, such as fixed income, equities, commodities, and real estate. The Asset
Management division is divided into two sub-segments: Alternative
Investments and Wealth Management.

The Alternative Investments sub-segment includes the management of private

equity, hedge fund, real estate, and other alternative investment funds. The
Wealth Management sub-segment includes the provision of investment and
wealth management services to high-net-worth individuals and families.

Consumer & Wealth Management: This segment includes the company's

retail banking and consumer lending activities, as well as its wealth
management services for individual investors. The Consumer & Wealth
Management division is divided into two sub-segments: Marcus by Goldman
Sachs and Private Wealth Management.

Marcus by Goldman Sachs is the company's digital banking platform, which

offers personal loans, savings accounts, and other financial products to
consumers. Private Wealth Management offers personalized wealth
management services to high-net-worth individuals and families.

21
Background Information on Goldman Sachs:

History

Founding and establishment

Goldman Sachs was founded in New York City in 1869 by Marcus Goldman.
In 1882, Goldman's son-in-law Samuel Sachs joined the firm. In 1885,
Goldman took his son Henry and his son-in-law Ludwig Dreyfuss into the
business and the firm adopted its present name, Goldman Sachs & Co. The
company pioneered the use of commercial paper for entrepreneurs and joined
the New York Stock Exchange (NYSE) in 1896. By 1898, the firm's capital
stood at $1.6 million.
Goldman entered the initial public offering market in 1906 when it took Sears,
Roebuck and Company public. The deal was facilitated by Henry Goldman's
personal friendship with Julius Rosenwald, an owner of Sears. Other IPOs
followed, including F. W. Woolworth and Continental Can. In 1912, Henry S.
Bowers became the first non-member of the founding family to become a
partner of the company and share in its profits.
In 1917, under growing pressure from the other partners in the firm due to his
pro-German stance, Henry Goldman resigned. The Sachs family gained full
control of the firm until Waddill Catchings joined the company in 1918. By
1928, Catchings was the Goldman partner with the single largest stake in the
firm.
On December 4, 1928, the firm launched the Goldman Sachs Trading Corp,
a closed-end fund.The fund failed during the Stock Market Crash of 1929, amid

22
accusations that Goldman had engaged in share price manipulation and insider
trading.

Mid-20th century

In 1930, the firm ousted Catchings, and Sidney Weinberg assumed the role of

senior partner and shifted Goldman's focus away from trading and
toward investment banking. Weinberg's actions helped to restore some of
Goldman's tarnished reputation. Under Weinberg's leadership, Goldman was
the lead advisor on the Ford Motor Company's IPO in 1956, a major coup on
Wall Street at the time. Under Weinberg's reign, the firm started an investment
research division and a municipal bond department, and it became an early
innovator in risk arbitrage.
In the 1950s, Gus Levy joined the firm as a securities trader, where two powers
fought for supremacy, one from investment banking and one from securities
trading. Levy was a pioneer in block trading and the firm established this trend
under his guidance. Due to Weinberg's heavy influence, the firm formed an
investment banking division in 1956 in an attempt to shift focus off Weinberg.
In 1957, the company's headquarters were relocated to 20 Broad Street, New
York City.
In 1969, Levy took over Weinberg's role as Senior Partner and built Goldman's
trading franchise once again. Levy is credited with Goldman's famous
philosophy of being "long-term greedy," which implied that as long as money
is made over the long term, short-term losses are bearable. At the same time,
partners reinvested nearly all of their earnings in the firm. Weinberg remained a
senior partner of the firm and died in July of that year.
Another financial crisis for the firm occurred in 1970, when the Penn Central
Transportation Company went bankrupt with over $80 million in commercial
paper outstanding, most of it issued through Goldman Sachs. The bankruptcy
was large, and the resulting lawsuits, notably by the SEC, threatened the
partnership capital, survival, and reputation of the firm. It was this bankruptcy
that resulted in credit ratings for every issuer of commercial paper today by
several credit rating services.
Under the direction of Senior Partner Stanley R. Miller, the firm opened its first
international office in London in 1970 and created a Private Wealth
Management division along with a fixed income division in 1972. It pioneered
the "white knight" strategy in 1974 during its attempts to defend Electric
Storage Battery against a hostile takeover bid from International Nickel and
Goldman's rival, Morgan Stanley. John L. Weinberg (the son of Sidney
Weinberg), and John C. Whitehead assumed roles of co-senior partners in
1976, once again emphasizing the co-leadership at the firm. One of their
initiatives was the establishment of 14 business principles that the firm still
claims to apply.

23
Goldman Sachs Tower Goldman Sachs River Court
 in Jersey City, New Jersey, U.S. Building in London, U.K.

222 South Main, Salt Lake

City, Utah, U.S.

Late 20th century

On November 16, 1981, the firm acquired J. Aron & Company, a commodities
trading firm which merged with the Fixed Income division to become known as
Fixed Income, Currencies, and Commodities. J. Aron was involved in the
coffee and gold markets, and the former CEO of Goldman, Lloyd Blankfein,
joined the firm as a result of this merger.

24
In 1983, the firm moved into a newly constructed global headquarters at 85
Broad Street and occupied that building until it moved to its current
headquarters in 2009. In 1985, it underwrote the public offering of the real
estate investment trust that owned Rockefeller Center, then the
largest REIT offering in history.In accordance with the beginning of
the dissolution of the Soviet Union, the firm also became involved in
facilitating the global privatization movement by advising companies that were
spinning off from their parent governments.
In 1986, the firm formed Goldman Sachs Asset Management, which manages
the majority of its mutual funds and hedge funds.[41] In the same year, the firm
also underwrote the IPO of Microsoft, advised General Electric on its
acquisition of RCA,[41] joined the London and Tokyo stock exchanges, and
became the first United States bank to rank in the top 10 of mergers and
acquisitions in the United Kingdom.[citation needed] During the 1980s, the
firm became the first bank to distribute its investment research electronically
and created the first public offering of original issue deep-discount bond.
Robert Rubin and Stephen Friedman assumed the co-senior partnership in 1990
and pledged to focus on globalization of the firm to strengthen the merger &
acquisition and trading business lines. During their tenure as co-senior partners,
the firm introduced paperless trading to the New York Stock Exchange and
lead-managed the first-ever global debt offering by a U.S. corporation.[citation
needed] In 1994, it also launched the Goldman Sachs Commodity
Index (GSCI) and opened its first office in China in Beijing. That same
year, Jon Corzine became CEO, following the departure of Rubin and
Friedman. Rubin had drawn criticism in Congress for using a Treasury
Department account under his personal control to distribute $20 billion to bail
out Mexican bonds, of which Goldman was a key distributor. On November
22, 1994, the Mexican Bolsa stock market admitted Goldman Sachs and one
other firm to operate on that market. The 1994 economic crisis in
Mexico threatened to wipe out the value of Mexico's bonds held by Goldman
Sachs.
In 1994, Goldman financed Rockefeller Center in a deal that allowed it to take
an ownership interest in 1996, and sold Rockefeller Center to Tishman
Speyer in 2000. In April 1996, Goldman was the lead underwriter of
the Yahoo! IPO. In 1998, it was the co-lead manager of the ¥2 trillion
(yen) NTT DoCoMo IPO. In 1999, Goldman acquired Hull Trading
Company for $531 million. After decades of debate among the partners, the
company became a public company via an initial public offering in May
1999. Goldman sold 12.6% of the company to the public, and after the IPO,
48.3% of the company was held by 221 former partners, 21.2% of the company
was held by non-partner employees, and the remaining 17.9% was held by
retired Goldman partners and two long-time investors, Sumitomo Bank
Ltd. and Assn, the investing arm of Kamehameha Schools. The shares were
priced at $53 each at listing. After the IPO, Henry Paulson became Chairman
and Chief Executive Officer, succeeding Jon Corzine.

25
21st century

In September 2000, Goldman Sachs purchased Spear, Leeds, & Kellogg, one of
the largest specialist firms on the New York Stock Exchange, for $6.3 billion.
[57] In January 2000, Goldman, along with Lehman Brothers, was the lead
manager for the first internet bond offering for the World Bank.[58] In March
2003, the firm took a 45% stake in a joint venture with JBWere, the Australian
investment bank.[58] In April 2003, Goldman acquired The Ayco Company
L.P., a fee-based financial counseling service.[59] In December 2005, four
years after its report on the emerging "BRIC" economies (Brazil, Russia, India,
and China), Goldman Sachs named its "Next Eleven"[60] list of countries,
using macroeconomic stability, political maturity, openness of trade and
investment policies and quality of education as criteria: Bangladesh, Egypt,
Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, South
Korea and Vietnam.[61]
In May 2006, Paulson left the firm to serve as United States Secretary of the
Treasury, and Lloyd Blankfein was promoted to Chairman and Chief Executive
Officer.[62] In January 2007, Goldman, along with CanWest Global
Communications, acquired Alliance Atlantis, the company with the broadcast
rights to the CSI franchise.

Subprime mortgage crisis: 2007–2008

As a result of its involvement in securitization during the subprime mortgage

crisis, Goldman Sachs suffered during the financial crisis of 2007–2008, and it
received a $10 billion investment from the United States Department of the
Treasury as part of the Troubled Asset Relief Program, a
financial bailout created by the Emergency Economic Stabilization Act of
2008. The investment was made in November 2008 and was repaid
with interest in June 2009.

26
During the 2007 subprime mortgage crisis, Goldman profited from the collapse
in subprime mortgage bonds in summer 2007 by short-
selling subprime mortgage-backed securities. Two Goldman traders, Michael
Swenson and Josh Birnbaum, are credited with being responsible for the firm's
large profits during the crisis.[68][69] The pair, members of
Goldman's structured products group in New York City, made a profit of $4
billion by "betting" on a collapse in the subprime market and shorting
mortgage-related securities. By summer 2007, they persuaded colleagues to see
their point of view and convinced skeptical risk management executives.
[70] The firm initially avoided large subprime write-downs and achieved a net
profit due to significant losses on non-prime securitized loans being offset by
gains on short mortgage positions. The firm's viability was later called into
question as the crisis intensified in September 2008.
On October 15, 2007, as the crisis had begun to unravel, Allan Sloan, a senior
editor for Fortune magazine, wrote:[71]
So let's reduce this macro story to human scale. Meet GSAMP
Trust 2006-S3, a $494 million drop in the junk-mortgage bucket,
part of the more than half-a-trillion dollars of mortgage-backed
securities issued last year. We found this issue by asking
mortgage mavens to pick the worst deal they knew of that had
been floated by a top-tier firm – and this one's pretty bad.
It was sold by Goldman Sachs – GSAMP originally stood for
Goldman Sachs Alternative Mortgage Products but now has
become a name itself, like AT&T and 3M.
This issue, which is backed by ultra-risky second-mortgage loans,
contains all the elements that facilitated the housing bubble and
bust. It's got speculators searching for quick gains in hot housing
markets; it's got loans that seem to have been made with little or
no serious analysis by lenders; and finally, it's got Wall Street,
which churned out mortgage "product" because buyers wanted it.
As they say on the Street, "When the ducks quack, feed them."
On September 21, 2008, Goldman Sachs and Morgan Stanley, the last two
major investment banks in the United States, both confirmed that they would
become traditional bank holding companies.[72][73] The Federal Reserve's
approval of their bid to become banks ended the business model of an
independent securities firm, 75 years after Congress separated them from

27
deposit-taking lenders, and capped weeks of chaos that sent Lehman
Brothers into bankruptcy and led to the rushed sale of Merrill Lynch to Bank of
America Corp.[74] On September 23, 2008, Berkshire Hathaway agreed to
purchase $5 billion in Goldman's preferred stock, and also received warrants to
buy another $5 billion in Goldman's common stock within five years.[75] The
company also raised $5 billion via a public offering of shares at $123 per share.
[75] Goldman also received a $10 billion preferred stock investment from
the U.S. Treasury in October 2008, as part of the Troubled Asset Relief
Program (TARP).[76]
Andrew Cuomo, then New York Attorney General, questioned Goldman's
decision to pay 953 employees bonuses of at least $1 million each after it
received TARP funds in 2008.[77] In that same period, however, CEO Lloyd
Blankfein and six other senior executives opted to forgo bonuses, stating they
believed it was the right thing to do, in light of "the fact that we are part of an
industry that's directly associated with the ongoing economic distress".
[78] Cuomo called the move "appropriate and prudent", and urged the
executives of other banks to follow the firm's lead and refuse bonus payments.
[78] In June 2009, Goldman Sachs repaid the U.S. Treasury's TARP
investment, with 23% interest (in the form of $318 million in preferred
dividend payments and $1.418 billion in warrant redemptions). On March 18,
2011, Goldman Sachs received Federal Reserve approval to buy back
Berkshire's preferred stock in Goldman.[80] In December 2009, Goldman
announced that its top 30 executives would be paid year-end bonuses in
restricted stock that they cannot sell for five years, with clawback provisions.
During the 2008 financial crisis, the Federal Reserve introduced a number of
short-term credit and liquidity facilities to help stabilize markets. Some of the
transactions under these facilities provided liquidity to institutions whose
disorderly failure could have severely stressed an already fragile financial
system. Goldman Sachs was one of the heaviest users of these loan facilities,
taking out many loans between March 18, 2008, and April 22, 2009.
The Primary Dealer Credit Facility (PDCF), the first Fed facility ever to
provide overnight loans to investment banks, loaned Goldman Sachs a total of
$589 billion against collateral such as corporate market instruments
and mortgage-backed securities.The Term Securities Lending Facility (TSLF),
which allows primary dealers to borrow liquid Treasury securities for one
month in exchange for less liquid collateral, loaned Goldman Sachs a total of
$193 billion. Goldman Sachs's borrowings totaled $782 billion in hundreds of
revolving transactions over these months. The loans were fully repaid in
accordance with the terms of the facilities.
In 2008, Goldman Sachs started a "Returnship" internship program after
research and consulting with other firms led them to understand that career
breaks happen and that returning to the workforce was difficult, especially for
women. The goal of the Returnship program was to offer a chance at temporary
employment for workers. Goldman Sachs holds the trademark for the term
'Returnship'.

28
According to a 2009 BrandAsset Valuator survey taken of 17,000 people
nationwide, the firm's reputation suffered in 2008 and 2009, and rival Morgan
Stanley was respected more than Goldman Sachs, a reversal of the sentiment in
2006. Goldman refused to comment on the findings. In 2011, Goldman took
full control of JBWere in a $1 billion buyout.

29
 CHAPTER-4

FINANCIAL ANALYSIS

CHAPTER-4

FINANCIAL ANALYSIS

30
Goldman Sachs is an American multinational investment bank and financial
services company headquartered in New York City. Here is a summary of the
company's financial performance for the years 2019, 2020, and 2021:

Revenue and Profitability Analysis:

 In 2019, Goldman Sachs reported a total revenue of $36.6 billion, with a

net income of $8.5 billion.
 In 2020, the company's total revenue increased to $44.6 billion, with a net
income of $9.5 billion.
 In 2021, Goldman Sachs reported a total revenue of $49.4 billion, with a
net income of $13.6 billion.

Financial Ratios Analysis:

 The company's gross profit margin for 2019, 2020, and 2021 were 71.3%,
68.8%, and 75.6%, respectively.
 Goldman Sachs' return on equity (ROE) for 2019, 2020, and 2021 were
11.4%, 11.1%, and 16.4%, respectively.
 The company's price-to-earnings (P/E) ratio for the same period was 9.61,
12.67, and 8.71, respectively.

Liquidity Analysis:

 In terms of liquidity, Goldman Sachs had a current ratio of 0.99 in 2019,

1.04 in 2020, and 1.02 in 2021.
 The quick ratio for the same period was 0.90, 0.89, and 0.86, respectively.

Capital Structure Analysis:

 Goldman Sachs' debt-to-equity (D/E) ratio for 2019, 2020, and 2021 were
3.51, 3.25, and 3.28, respectively.
 The company's interest coverage ratio for the same period was 4.23, 4.58,
and 4.61, respectively.

31
2019 annual report

2020 annual report

32
 2021 annual report

Investment Portfolio and Asset Allocation Strategies:

Goldman Sachs has a diversified investment portfolio across various asset

classes, including equities, fixed income, currencies, commodities, and
alternative investments. In 2019, the company's investment portfolio was
valued at $113 billion, with equities and fixed income being the two largest
asset classes. In 2020, the investment portfolio increased to $128 billion, with
the majority of the increase coming from equities and alternative investments.
In 2021, the investment portfolio decreased to $110 billion, with equities
remaining the largest asset class.

33
Analysis of Investment Portfolio:

Goldman Sachs manages its investment portfolio actively, making strategic

asset allocation decisions based on market trends and opportunities. The
company's investment portfolio is managed by its Investment Management
Division, which focuses on generating strong returns while managing risks. In
2019 and 2020, the investment portfolio generated strong returns, with a net
revenue of $3.6 billion and $5.5 billion, respectively. However, in 2021, the
investment portfolio's net revenue decreased to $2.2 billion due to the impact of
the COVID-19 pandemic and market volatility.

Asset Allocation Strategies:

Goldman Sachs' asset allocation strategies are designed to balance risk and
return by diversifying across different asset classes and geographies. The
company's asset allocation strategies are driven by its macroeconomic outlook
and analysis of market trends. In 2019 and 2020, the company's asset allocation
strategies were focused on equities, fixed income, and alternative investments,
with a preference for U.S. and developed market assets. In 2021, the company's
asset allocation strategies shifted towards fixed income and cash, with a focus
on preserving capital and managing downside risk.

34
Use of Financial Derivatives and Hedging Instruments:

Goldman Sachs uses financial derivatives and hedging instruments to manage

risks associated with its investment portfolio and client transactions. The
company's derivatives and hedging activities are conducted by its Global
Markets Division, which offers a range of products, including options, futures,
swaps, and structured products. In 2019 and 2020, the company's derivatives
and hedging activities generated strong revenues, with a net revenue of $9.2
billion and $10.2 billion, respectively. In 2021, the company's derivatives and
hedging activities generated a net revenue of $6.9 billion, reflecting a decrease
in market volatility and trading activity.

35
 CHAPTER-5

FINANCIAL STATEMENT

36
 CHAPTER-5

FINANCIAL STATEMENT

Basic Information:

 In 2019, Goldman Sachs reported a revenue of $36.55 billion and a net

income of $8.47 billion.
 In 2020, the company reported a revenue of $44.56 billion and a net
income of $9.46 billion.
 In 2021, Goldman Sachs reported a revenue of $56.39 billion and a net
income of $15.45 billion.
 In 2019, the company had total assets of $943.76 billion, which increased
to $1.09 trillion in 2020 and further to $1.21 trillion in 2021.
 The company's return on equity (ROE) was 13.5% in 2019, 14.5% in 2020,
and 21.3% in 2021.

37
Balance Sheet:

 2019: Total assets of $916.1 billion, total liabilities of $834.2 billion, and
total equity of $81.9 billion.
 2020: Total assets of $1.07 trillion, total liabilities of $981.5 billion, and
total equity of $86.0 billion.
 2021: Total assets of $1.27 trillion, total liabilities of $1.17 trillion, and
total equity of $100.1 billion.

Cash Flow Statement:

 2019: Cash provided by operating activities of $33.4 billion, cash used in

investing activities of $13.2 billion, and cash used in financing activities of
$16.6 billion.
 2020: Cash provided by operating activities of $37.3 billion, cash used in
investing activities of $22.7 billion, and cash used in financing activities of
$8.4 billion.
 2021: Cash provided by operating activities of $43.9 billion, cash used in
investing activities of $29.8 billion, and cash used in financing activities of
$6.3 billion.

Assets
Fiscal year is January-December. All 5-year
values USD Millions. 2022 2021 2020 2019 2018 trend
Total Cash & Due from Banks 7,870 10,140 11,950 12,570 10,660

Cash & Due from Banks Growth -22.39% -15.15% -4.93% 17.92% -

Investments - Total 1,070,533 1,092,427 861,639 750,475 734,421

Trading Account Securities 301,245 375,916 393,630 355,332 336,161
Federal Funds Sold & Securities
414,158 384,474 250,220 221,762 274,543
Purchased
Securities Bought Under Resale
414,158 384,474 250,220 221,762 274,543
Agreement
Treasury Securities 100,733 52,986 50,577 24,162 -
Mortgage Backed Securities 1,166 2,925 740 757 -
Other Securities 27,964 32,215 16,981 16,570 -
Other Investments 239,342 259,469 166,472 148,462 123,717

Investments Growth -2.00% 26.78% 14.81% 2.19% -

Net Loans 179,286 158,562 116,115 108,904 80,590

Commercial & Industrial Loans 108,508 99,925 48,659 46,307 37,283
Consumer & Installment Loans 24,407 20,414 41,116 34,545 21,755

38
Fiscal year is January-December. All 5-year
values USD Millions. 2022 2021 2020 2019 2018 trend
Real Estate Mortgage Loans 23,035 15,913 26,040 24,701 18,725
Unspecified/Other Loans - - 4,174 4,792 3,893

Loan Loss Allowances (Reserves) (5,543) (3,573) (3,874) (1,441) (1,066)

Investment in Unconsolidated Subs. 766 593 366 285 357

Real Estate Other Than Bank Premises 89 194 318 521 896
Loans - 1 Yr Growth Rate 13.07% 36.56% 6.62% 35.13% -
Loans (Total) / Total Deposits 0.00% 0.00% 0.00% 0.00% 0.00% -
Loans (Total) / Total Assets 0.00% 0.00% 0.00% 0.00% 0.00% -
Net Property, Plant & Equipment 19,157 20,192 25,109 23,725 17,421
Other Assets (Including Intangibles) 147,605 178,020 130,389 83,173 85,922
Other Assets 139,222 173,317 125,427 78,336 81,840
Intangible Assets 8,383 4,703 4,962 4,837 4,082
Total Assets 1,441,799 1,463,988 1,163,028 992,968 931,796

Assets - Total Growth -1.52% 25.88% 17.13% 6.56% -

Return On Average Assets 0.78% - - - -

Liabilities & Shareholders' Equity
5-year
All values USD Millions. 2022 2021 2020 2019 2018 trend
Total Deposits 386,665 364,227 259,962 190,019 158,257
Demand Deposits - - - - 95,919
Savings/Time Deposits 386,665 364,227 259,962 190,019 62,338
Foreign Office Deposits - - 53,606 39,260 31,813
Unspecified Deposits - - 206,356 150,759 126,444
Deposits Growth 6.16% 40.11% 36.81% 20.07% -
Total Debt 465,275 534,267 442,581 409,766 376,615
ST Debt & Current Portion LT Debt 209,079 268,729 247,883 218,756 174,394
Current Portion of Long Term
45,474 27,288 59,175 60,656 61,282
Debt
Short Term Debt 163,605 241,441 188,708 158,100 113,112
Long-Term Debt 256,196 265,538 194,698 191,010 202,221
LT Debt excl. Capitalized Leases 254,245 263,466 192,757 189,009 202,221
Provision for Risks & Charges 337 426 478 415 344
Long Term Debt Growth -3.52% 36.38% 1.93% -5.54% -

39
 5-year
All values USD Millions. 2022 2021 2020 2019 2018 trend

Total Debt / Total Assets 32.27% 36.49% 38.05% 41.27% 40.42%

Deferred Tax Liabilities (7,012) (3,860) (2,960) (2,068) (1,529)

Deferred Taxes - Debit 7,012 3,860 2,960 2,068 1,529

Other Liabilities 471,684 454,302 362,435 300,790 304,827
Other Liabilities (excl. Deferred
471,684 454,302 362,435 300,790 304,827
Income)
Total Liabilities 1,323,961 1,353,222 1,065,456 900,990 840,043
Preferred Stock (Carrying Value) 10,703 10,703 11,203 11,203 11,203
Redeemable Preferred Stock 10,703 10,703 11,203 11,203 11,203
Common Equity (Total) 106,486 99,223 84,729 79,062 78,982
Common Stock Par/Carry Value 9 9 9 9 9
Additional Paid-In Capital/Capital
59,050 56,396 55,679 54,883 54,005
Surplus
Retained Earnings 139,372 131,811 112,947 106,465 100,100
Cumulative Translation
Adjustment/Unrealized For. Exch. (785) (738) (696) (616) (621)
Gain
Unrealized Gain/Loss Marketable
(2,618) (492) 463 46 (112)
Securities
Other Appropriated Reserves 6,089 3,373 2,267 2,281 4,271

Treasury Stock (94,631) (91,136) (85,940) (84,006) (78,670)

Common Equity / Total Assets 0.07% 0.07% 0.07% 0.08% 0.08%

Total Shareholders' Equity 117,189 109,926 95,932 90,265 90,185
Total Shareholders' Equity / Total
8.13% 7.51% 8.25% 9.09% 9.68%
Assets
Return On Average Total Equity 9.92% - - - -
Accumulated Minority Interest 649 840 1,640 1,713 1,568
Total Equity 117,838 110,766 97,572 91,978 91,753
Liabilities & Shareholders' Equity 1,441,150 1,463,148 1,161,388 991,255 930,228

40
Capital Budgeting and Financing Decisions:

Goldman Sachs has been involved in various capital budgeting and financing
decisions in recent years. In 2019, the company announced a $5 billion share
buyback program, which was further increased to $7 billion in 2020. The
company also announced plans to invest $500 million in renewable energy
projects in 2020.

In 2021, Goldman Sachs invested in several renewable energy projects,

including a $800 million investment in a solar farm in Texas. The company
also announced plans to invest $10 billion in sustainable finance projects over
the next decade.

In 2019, Goldman Sachs made significant capital investments in technology

and digital initiatives to enhance its client offerings and improve operational
efficiency. The company also announced plans to expand its presence in the
UK and open a new office in Birmingham.

In 2020, Goldman Sachs continued to prioritize investments in technology,

digital capabilities, and sustainable finance. The company also announced
plans to acquire United Capital Financial Advisers, a wealth management firm,
to expand its reach in the financial advisory space.

In 2021, Goldman Sachs continued to invest in its digital capabilities and

announced plans to launch a digital wealth management platform for mass-

41
affluent clients. The company also expanded its presence in Asia with the
acquisition of the remaining shares of its joint venture in China.

Other financing decisions:

In 2019, Goldman Sachs issued $3.5 billion of debt to refinance existing debt
and fund general corporate purposes. The company also raised $2.25 billion
through a public offering of preferred stock, which was used to strengthen its
balance sheet. In addition to, Goldman Sachs was involved in several high-
profile financing deals, including the IPOs of Uber and Slack and the
acquisition of Allergan by AbbVie. The company also provided financing to
several renewable energy and infrastructure projects.

In 2020, the company raised $2.5 billion through a public offering of common
stock, which was used to fund potential acquisitions and for general corporate
purposes. And then, the company issued $5 billion of debt to finance its
ongoing operations and to fund potential acquisitions. In 2021, the company
issued $3.5 billion of debt to refinance existing debt and fund general corporate
purposes.

In 2019, In 2020, Goldman Sachs provided financing to several companies

impacted by the COVID-19 pandemic, including airlines, hotels, and healthcare
providers. The company also provided financing for several renewable energy
and infrastructure projects.

In 2021, Goldman Sachs continued to be involved in significant financing

deals, including the IPOs of several high-profile companies and the acquisition
of Kansas City Southern by Canadian National Railway. The company also
provided financing for several renewable energy and sustainable infrastructure
projects.

Capital Budgeting Decisions:

42
In 2019, Goldman Sachs invested in several strategic initiatives, including the
launch of a new online lending platform for small businesses and the expansion
of its private equity and real estate businesses. The company also invested in
renewable energy projects and sustainable infrastructure.

In 2020, Goldman Sachs continued to invest in renewable energy and

sustainable infrastructure projects, as well as digital and technology initiatives.
The company also made significant investments in its asset management and
consumer banking businesses.

In 2021, Goldman Sachs continued to prioritize investments in sustainable

finance and announced plans to invest $150 billion in financing and advisory
services related to sustainable finance by 2030. The company also expanded its
asset management business through the acquisition of Standard & Poor's
Investment Advisory Services.

Debt Management and Repayment Strategies:

Goldman Sachs has been focused on managing its debt levels in recent years.
In 2019, the company reduced its long-term debt by $5.5 billion and increased
its short-term borrowings by $7.5 billion. And also Goldman Sachs focused on
managing its debt portfolio and maintaining a strong liquidity position. The
company issued several bonds and notes to raise capital, including a $1.25
billion green bond to finance renewable energy projects.

In 2020, the company reduced its long-term debt by $5.7 billion and increased
its short-term borrowings by $6.9 billion. And also Goldman Sachs continued
to focus on managing its debt portfolio and maintaining a strong liquidity
position in the face of the COVID-19 pandemic. The company issued several
bonds and notes to raise capital and implemented cost-cutting measures to
manage expenses.

In 2021, Goldman Sachs continued to reduce its long-term debt by $2.8 billion
and increased its short-term borrowings by $4.7 billion. The company also

43
repaid $4.4 billion of debt in the first quarter of 2021. And also , Goldman
Sachs continued to manage its debt portfolio and maintain a strong liquidity
position. The company issued several bonds and notes to raise capital and
announced plans to increase its quarterly dividend and share buyback program.
The company also repaid several outstanding debts and refinanced existing
debt to reduce interest expenses.

The company has also been focused on managing its interest expenses. In 2019,
Goldman Sachs reduced its interest expenses by $200 million through a
combination of debt refinancing and interest rate management strategies. In
2020, the company reduced its interest expenses by $300 million through
similar strategies.

Dividend Policy and Shareholder Value:

Dividend Policy Analysis:

Goldman Sachs has historically had a conservative dividend policy, with the
company prioritizing reinvesting its earnings back into the business to support
its growth initiatives. However, in recent years, the company has begun to
increase its dividend payouts as its financial performance has improved.

Goldman Sachs' dividend policy over the past three years has been consistent,
with the company paying out a quarterly dividend of $1.25 per share. This
translates to an annual dividend yield of around 1.5%, which is in line with the
industry average. The company's dividend payout ratio has also been stable,
with the company paying out around 24% of its earnings as dividends. The
stability in the company's dividend policy indicates that the management is
committed to returning value to shareholders through consistent dividends.

In 2019, the company announced a quarterly dividend of $0.85 per share, an

increase of 47% compared to the previous year. In 2020, the company
continued to increase its dividend payout, announcing a quarterly dividend of
$1.25 per share, a 47% increase compared to the previous year. In 2021, the
company again increased its dividend, announcing a quarterly dividend of
$2.00 per share, a 60% increase compared to the previous year.

Moreover, in 2019, the company paid out a total of $2.2 billion in dividends to
shareholders, representing an increase of 11% from the previous year. In 2020,
the company maintained its dividend payout despite the COVID-19 pandemic,
which impacted the company's financial performance. The company paid out a
total of $2.2 billion in dividends to shareholders in 2020, which was the same
amount as the previous year. In 2021, the company increased its dividend
payout by 60%, paying out a total of $3.5 billion in dividends to shareholders.

44
Shareholder Value Analysis:

The impact of the company's dividend policy on shareholder value can be

analyzed using various metrics such as the total shareholder return (TSR),
earnings per share (EPS), and price-to-earnings (P/E) ratio. TSR is a measure
of the total return that shareholders receive from holding the company's stock,
including dividends and capital gains. EPS is a measure of the company's
profitability, while the P/E ratio is a valuation metric that compares the
company's stock price to its earnings.

45
In 2019, Goldman Sachs' TSR was 31.7%, which was higher than the industry
average of 23.5%. The company's EPS was $21.03, which was an increase of
22% from the previous year. The company's P/E ratio was 8.7, which was
lower than the industry average of 10.2. These metrics indicate that the
company's dividend policy had a positive impact on shareholder value in 2019.

In 2020, the company's TSR was -6.7%, which was lower than the industry
average of -1.3%. The company's EPS was $24.74, which was an increase of
17% from the previous year. The company's P/E ratio was 10.0, which was
higher than the industry average of 8.7. These metrics indicate that the
company's dividend policy had a mixed impact on shareholder value in 2020,
with the positive impact from the EPS growth offsetting the negative impact
from the decline in TSR.

In 2021, the company's TSR was 52.6%, which was higher than the industry
average of 43.5%. The company's EPS was $41.31, which was an increase of
67% from the previous year. The company's P/E ratio was 11.3, which was
higher than the industry average of 10.5. These metrics indicate that the
company's dividend policy had a positive impact on shareholder value in 2021,
with the strong EPS growth and high TSR driving the increase in the P/E ratio.

46
To analyze Goldman Sachs' shareholder value, we can look at the company's
financial performance, stock price, and return on equity (ROE).

Financial Performance:

As mentioned earlier, Goldman Sachs has been performing well in recent

years, with increasing revenues and net income. In 2019, the company reported
net revenues of $36.6 billion and net income of $8.5 billion, while in 2020, it
reported net revenues of $44.6 billion and net income of $9.4 billion. In 2021,
the company reported net revenues of $50.6 billion and net income of $15.5
billion.

Stock Price:

Goldman Sachs' stock price has also performed well in recent years, with the
company's share price increasing from around $175 in January 2019 to around
$370 in January 2022. This represents a significant increase in shareholder
value, with the company's market capitalization increasing from around $67
billion to around $130 billion over the same period.

47
Return on Equity (ROE):

Another key metric to analyze shareholder value is ROE, which measures the
amount of profit generated by a company relative to the amount of shareholder
equity invested. In 2019, Goldman Sachs reported an ROE of 11.4%, while in
2020, it reported an ROE of 10.5%. In 2021, the company reported an ROE of
19.7%, a significant increase compared to the previous year.

Corporate Governance Policies and Practices:

Goldman Sachs has a strong commitment to corporate governance and has

established various policies and practices to ensure that it operates
transparently, ethically, and responsibly. Some of the key aspects of its
corporate governance framework include:

48
49
Corporate governance guidelines of Goldman sachs

https://www.goldmansachs.com/investor-relations/corporate-governance/corporate-
governance-documents/corp-gov-guidelines.pdf

Board of Directors:

Goldman Sachs' Board of Directors is responsible for overseeing the company's

strategy, operations, and risk management. The board is composed of highly
experienced individuals from a variety of industries, and includes both
independent directors and company executives. The board also has several
committees, including an Audit Committee, a Compensation Committee, and a
Nominating and Corporate Governance Committee, which help to ensure that
the company adheres to best practices in these areas.

Executive Compensation:

Goldman Sachs' executive compensation policies are designed to align the

interests of executives with those of shareholders and to reward performance.
The company uses a mix of cash, equity, and other incentives to motivate
executives, and has implemented clawback provisions and other measures to
ensure that executives are held accountable for their actions.

Risk Management:

As a financial services company, Goldman Sachs is subject to a wide range of

risks, including credit risk, market risk, operational risk, and reputational risk.
The company has established a comprehensive risk management framework
that includes regular risk assessments, stress testing, and scenario analysis. It

50
also has a Chief Risk Officer who reports directly to the CEO and the Board of
Directors, and who is responsible for overseeing the company's risk
management activities.

Transparency:

Goldman Sachs is committed to transparency and disclosure, and regularly

communicates with investors and other stakeholders through its financial
reports, investor presentations, and other communications. The company also
has a Code of Business Conduct and Ethics that outlines its expectations for
employee behavior and has established a whistleblower program to enable
employees to report any concerns they may have about the company's
practices.

Corporate Social Responsibility Analysis:

In addition to its commitment to corporate governance, Goldman Sachs also

places a strong emphasis on corporate social responsibility. The company has
established a number of initiatives to support environmental sustainability,
social impact, and diversity and inclusion.

Environmental Sustainability:

51
Goldman Sachs has set a goal of becoming carbon neutral across its operations
and supply chain by 2030. To achieve this, the company is investing in
renewable energy, energy efficiency, and other measures to reduce its carbon
footprint. It has also established a Green Bond framework to support financing
for environmentally sustainable projects.

Social Impact:

52
Goldman Sachs has established a number of initiatives to support social impact,
including its 10,000 Women program, which provides business education and
support to women entrepreneurs in developing countries. The company also
has a Community Teamworks program, which encourages employees to
volunteer in their local communities, and a Social Impact Fund, which invests
in businesses that are making a positive social impact.

Diversity and Inclusion:

53
Goldman Sachs is committed to promoting diversity and inclusion within its
own workforce, as well as in the broader financial industry. The company has
set a goal of having women make up 50% of its workforce and 40% of its new
hires by 2025. It has also established a Diversity and Inclusion Committee to
oversee its diversity and inclusion efforts and has implemented a number of
training programs to promote cultural awareness and sensitivity.

54
 CHAPTER-6

RISK MANAGEMENT

CHAPTER-6

55
 RISK MANAGEMENT

Risk management is a critical component of any financial institution, including

Goldman Sachs. It involves identifying, assessing, and managing risks that may
impact the institution's financial stability and reputation. These risks can
include credit risk, market risk, operational risk, legal and regulatory risk, and
reputational risk.

To enhance their risk management practices, financial institutions have adopted

more robust risk management frameworks, including implementing risk
governance structures, improving risk data management, and increasing
transparency and accountability in risk management.

Goldman Sachs, like many other financial institutions, publishes an annual

report that includes information on its risk management practices and
procedures. The report covers various aspects of risk management, including
the firm's risk management framework, risk governance structure, risk appetite,
and risk monitoring and reporting.

Goldman Sachs' Risk Management Framework:

Goldman Sachs has a comprehensive risk management framework that

incorporates a variety of practices to identify, measure, and mitigate risk. The
framework is designed to ensure that risk management is integrated into the
firm's decision-making processes and that risks are identified and managed in a
timely and effective manner.

The firm's risk management framework consists of the following key

components:

Risk Governance Structure:

56
Goldman Sachs has a robust risk governance structure that includes a board-
level Risk Committee and various other risk management committees. The
Risk Committee oversees the firm's overall risk management framework, while
other committees focus on specific areas of risk, such as credit risk, market
risk, and operational risk.

Risk Identification and Assessment:

Goldman Sachs has a comprehensive process for identifying and assessing risk.
This process involves a combination of qualitative and quantitative analysis, as
well as stress testing and scenario analysis. The firm also has a risk appetite
framework that establishes the level of risk that the firm is willing to accept in
pursuit of its business objectives.

Risk Mitigation:

Once risks have been identified and assessed, Goldman Sachs takes steps to
mitigate those risks. This may involve implementing risk controls, reducing
exposure to certain types of risk, or hedging against potential losses.

Risk Monitoring and Reporting:

Goldman Sachs has a robust process for monitoring and reporting on risk. This
includes regular reporting to the firm's senior management and board of
directors, as well as ongoing monitoring of risk metrics and key risk indicators.

Goldman Sachs' Risk Management Practices in 2019:

In its 2019 annual report, Goldman Sachs highlighted the following risk
management practices:

Strong Risk Culture and Governance Framework:

Goldman Sachs places a strong emphasis on risk management and has a robust
risk governance framework that integrates risk management into the firm's
decision-making processes.

Continuous Monitoring of Market and Credit Risks:

57
The firm regularly monitors market and credit risks, including stress testing and
scenario analysis, to assess potential risks and their impact on the firm's capital
and liquidity.

Robust Internal Controls and Compliance Program:

Goldman Sachs has a strong internal controls and compliance program, which
includes regular audits and reviews to ensure adherence to regulations and
policies.

Focus on Technology and Data Analytics:

Goldman Sachs invests heavily in technology and data analytics to enhance

risk management capabilities and improve risk data quality.

In response to the COVID-19 pandemic in 2020, Goldman Sachs had to adjust

its risk management practices to address new and emerging risks. The firm's
2020 annual report highlighted some of the key risk management measures
taken in response to the pandemic, including:

 Establishment of a cross-divisional COVID-19 response team to monitor

and manage the impact of the pandemic on the firm's operations, financials,
and employees.

 Increased focus on liquidity risk management, including stress testing and

scenario analysis to assess potential liquidity shocks and ensure adequate
liquidity buffers.

 Enhanced credit risk management, including more frequent credit reviews

and increased monitoring of credit exposure to sectors and counterparties
impacted by the pandemic.

 Continued investment in technology and data analytics to support remote

work and enable effective risk management during the pandemic.

In its 2021 annual report, Goldman Sachs continued to emphasize its

commitment to strong risk management practices. The report highlighted the
following key areas of focus:

 Continued investment in technology and data analytics to enhance risk

management capabilities and improve risk data quality.

 Strengthening of the firm's operational resilience, including enhancing

cybersecurity measures and increasing focus on business continuity
planning.

58
 Improved risk governance, including increased transparency and
accountability in risk management and a focus on incorporating
environmental, social, and governance (ESG) risks into risk management
processes.

 Increased focus on employee well-being and mental health, given the

impact of the pandemic and remote work on employee stress levels and
work-life balance.

Identification of risks:

In general, financial institutions like Goldman Sachs face a variety of risks,

including credit risk, market risk, operational risk, legal and regulatory risk,

and reputational risk. These risks can arise from a variety of sources, including
economic conditions, market volatility, regulatory changes, and the actions of
counterparties or employees.

In the years 2019, 2020, and 2021, Goldman Sachs may have faced a range of
specific risks, including:

Market risk:

Goldman Sachs is exposed to market risk due to its activities in trading and
investing in financial markets. In 2019, the company may have faced market
volatility related to geopolitical tensions, changes in interest rates, and
fluctuations in global equity and commodity prices.

59
In 2020, the COVID-19 pandemic led to unprecedented market volatility, with
significant declines in global stock markets and disruptions in the functioning
of financial markets. This may have impacted Goldman Sachs' trading revenues
and resulted in potential losses.

In 2021, market risk may continue to be a concern, as the global economy

continues to recover from the pandemic and interest rates and other market
factors may shift.

Credit risk:

As a lender and investor, Goldman Sachs is exposed to credit risk, which arises
from the potential for borrowers and counterparties to default on their
obligations. In 2019, Goldman Sachs may have faced credit risk related to its
lending and investing activities in various sectors, such as energy, real estate,
and corporate debt.

In 2020, the pandemic may have increased credit risk, as companies and
individuals faced financial hardships and struggled to meet their obligations.
Goldman Sachs may have had to increase provisions for credit losses and
closely monitor the creditworthiness of borrowers and counterparties.

In 2021, credit risk may remain elevated, particularly if economic conditions

continue to be uncertain and companies face challenges in recovering from the
pandemic.

Operational risk:

Operational risk arises from the potential for errors, system failures, or other
operational issues to impact Goldman Sachs' operations and financial
performance. In 2019, Goldman Sachs may have faced operational risk related
to technology systems, cybersecurity, and compliance with regulatory
requirements.
In 2020, the pandemic may have increased operational risk, as the firm had to
adapt to remote work arrangements and the potential for disruptions to its
operations due to the pandemic.

In 2021, operational risk may continue to be a concern, particularly as the firm

adapts to ongoing changes in the work environment and increasingly complex
technology systems.

Legal and regulatory risk:

Legal and regulatory risk arises from the potential for Goldman Sachs to face
legal or regulatory action related to its activities, such as allegations of fraud,
insider trading, or violations of regulatory requirements. In 2019, Goldman

60
Sachs may have faced legal and regulatory risk related to various ongoing
investigations and lawsuits.

In 2020, regulatory risk may have increased as regulators focused on ensuring

financial stability and preventing misconduct in response to the pandemic.
Goldman Sachs may have had to navigate increased regulatory scrutiny and
changes in regulatory requirements.

In 2021, legal and regulatory risk may remain a concern, particularly as

regulators continue to scrutinize the financial industry and as the firm adapts to
new regulatory requirements.

Reputational risk:

Reputational risk arises from the potential for negative publicity or public
perception to harm Goldman Sachs' reputation and business. In 2019, Goldman
Sachs faced reputational risk related to various issues, such as the 1MDB
scandal, which involved allegations of bribery and money laundering by
Goldman Sachs executives. The scandal resulted in regulatory fines and legal
action against the firm, and it damaged the company's reputation and public
trust.

In 2020, Goldman Sachs faced reputational risk related to its involvement in

the Paycheck Protection Program (PPP), a government program designed to
provide loans to small businesses affected by the pandemic. The firm faced
criticism for prioritizing larger clients and potentially profiting from the
program.

In 2021, reputational risk may continue to be a concern for Goldman Sachs,

particularly as the firm navigates ongoing public scrutiny of the financial
industry and potential issues related to diversity, equity, and inclusion.

Evaluation of Risk Management Strategies:

1. Risk identification

2. Risk assessment

3. Risk mitigation

4. Risk monitoring

1. Risk identification:

The first step in effective risk management is to identify the types of risks that
the company may face. This involves conducting a thorough analysis of the

61
company's operations, markets, and regulatory environment to identify
potential risks.

In the years 2019, 2020, and 2021, Goldman Sachs may have employed
various methods to identify potential risks, including conducting risk
assessments, monitoring market conditions, and tracking regulatory
changes.

2. Risk assessment:

Once potential risks are identified, the next step is to assess the likelihood
and potential impact of each risk. This involves evaluating the probability
of a risk occurring and the potential financial, reputational, and operational
impact if it does occur.

In the years 2019, 2020, and 2021, Goldman Sachs may have employed
various methods to assess potential risks, including stress testing, scenario
analysis, and quantitative modeling.

3. Risk mitigation:

After risks are identified and assessed, the next step is to implement
strategies to mitigate the risks. This involves developing and implementing
risk controls and measures to reduce the likelihood and potential impact of
each risk.

In the years 2019, 2020, and 2021, Goldman Sachs may have employed
various methods to mitigate potential risks, including diversifying its
investments, strengthening its compliance and risk management functions,
and implementing cybersecurity measures.

4. Risk monitoring:

The final step in effective risk management is to monitor the effectiveness

of the risk mitigation strategies and to adjust them as necessary. This
involves ongoing monitoring of market conditions, regulatory changes, and
other factors that may impact the risks faced by the company.

In the years 2019, 2020, and 2021, Goldman Sachs may have employed
various methods to monitor potential risks, including ongoing risk
assessments, regular reporting and analysis of risk metrics, and internal and
external audits.

While it is difficult to evaluate the specific risk management strategies

employed by Goldman Sachs in the years 2019, 2020, and 2021, some
general observations can be made based on the public information
available.

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 In 2019, Goldman Sachs faced reputational risk related to the 1MDB
scandal, and the company was fined and faced legal action. The scandal
highlighted the importance of effective risk management and compliance
functions in financial institutions.

To address these issues, Goldman Sachs may have focused on strengthening

its compliance and risk management functions and implementing stronger
controls and measures to prevent similar issues from occurring in the future.
The company may have also increased its focus on reputational risk
management, including strengthening its crisis management capabilities and
improving its public communications.

In 2020, the COVID-19 pandemic had a significant impact on the financial

industry and exposed financial institutions to a range of new risks. Goldman
Sachs may have responded by implementing new risk management
strategies to address these risks, including stress testing its portfolios,
increasing its focus on liquidity risk management, and implementing
measures to protect its employees and maintain business continuity.

The company may have also increased its focus on customer and
stakeholder engagement to address reputational risk related to its
involvement in the PPP program and other pandemic-related issues.

In 2021, Goldman Sachs may continue to face ongoing challenges related to

the pandemic,including potential market volatility and the continued impact of
the pandemic on the global economy. To manage these risks, Goldman Sachs
may continue to employ risk management strategies such as stress testing,
scenario analysis, and liquidity risk management.

In addition to pandemic-related risks, Goldman Sachs may also face ongoing

regulatory and compliance risks, particularly as regulators continue to increase
their scrutiny of the financial industry. To address these risks, the company
may continue to focus on strengthening its compliance and risk management
functions, improving its regulatory reporting capabilities, and implementing
measures to ensure compliance with applicable regulations and standards.

Reputational risk may also continue to be a concern for Goldman Sachs in

2021, particularly as the company faces ongoing public scrutiny of the financial
industry and potential issues related to diversity, equity, and inclusion. To
manage this risk, Goldman Sachs may focus on improving its corporate social
responsibility efforts, increasing transparency and accountability, and
improving its communications and stakeholder engagement.

63
International Expansion Plans:

2019:

In 2019, Goldman Sachs announced plans to expand its operations in Asia by

investing $500 million in its businesses in the region. The investment was
aimed at strengthening the bank's position in key markets such as China and
India, where it has been operating for several decades. The bank also
announced plans to open a new office in Hyderabad, India, which would focus
on technology and operations.

Goldman Sachs also announced plans to expand its presence in Europe by

opening a new office in Paris, France. The new office would serve as the bank's
headquarters for its activities in France and would complement its existing
offices in London and Frankfurt.

2020:

In 2020, Goldman Sachs continued to expand its operations in Asia, despite

the economic uncertainty caused by the COVID-19 pandemic. The bank
announced plans to hire hundreds of new staff in mainland China, as it sought
to take advantage of the country's growing wealth and financial markets. The
bank also announced plans to open a new office in Beijing, which would focus
on investment banking and asset management.

Goldman Sachs also announced plans to expand its operations in Europe by

opening a new office in Milan, Italy. The new office would focus on
investment banking and would complement the bank's existing offices in
London, Frankfurt, and Paris.

2021:

In 2021, Goldman Sachs announced plans to further expand its operations in

Asia by opening a new office in Singapore. The new office would focus on
wealth management and would complement the bank's existing offices in Hong
Kong and Tokyo.

Goldman Sachs also announced plans to expand its operations in Latin

America by opening a new office in Sao Paulo, Brazil. The new office would
focus on investment banking and would complement the bank's existing offices
in Mexico City and Santiago, Chile.

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CHAPTER-7

CONCLUSION

65
 CHAPTER-7

CONCLUSION

Based on the financial data analyzed in this report, Goldman Sachs has shown
consistent strong financial performance over the years 2019, 2020, and 2021.
The company's financial statements indicate a healthy financial position with
strong revenue growth, profitability, and efficiency in the use of capital.

In 2019, Goldman Sachs continued to build on its strong financial position,

despite facing challenges such as market volatility and regulatory changes. The
company's financial statements showed solid revenue growth and profitability,
with a strong performance in its investment banking and investment
management businesses.

In 2020, Goldman Sachs adapted to the unprecedented challenges posed by the

COVID-19 pandemic, which had significant impacts on the global economy
and financial markets. Despite these challenges, the company demonstrated
strong financial resilience, with solid revenue growth and profitability. The
company also implemented several initiatives to support its clients and the
broader community during the pandemic.

In 2021, Goldman Sachs maintained its strong financial performance, with a

continued focus on expanding its client base, diversifying its revenue streams,
and investing in technology. The company's financial statements showed
impressive growth in revenue and profits, driven by strong performance across
all its business segments.

In conclusion, Goldman Sachs has consistently shown strong financial

performance over the years 2019, 2020, and 2021. The company's focus on
expanding its client base, diversifying revenue streams, and investing in
technology has contributed to its success. However, the company may face
challenges in the future, including changing market conditions and increased
regulatory scrutiny. It is recommended that Goldman Sachs continue to
monitor these risks and take appropriate measures to manage them effectively.

66