The Goldman Sachs Group, Inc (NYSE:GS), a financial institution, provides range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through four segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management.
Goldman Sachs generates $4.5 billion in net earnings in the fourth quarter, a huge increase over the fourth quarter of 2019. Net revenue was $11.7 billion in the quarter, an 18% year-over-year increase. The company’s revenue is $44.5 billion, a 22% year-over-year increase. Goldman Sachs grows all of its business lines, led by investment banking. This segment generates a record $9.42 billion in revenue for the full year, driven by a record level of equity underwriting and the second-highest level ever of debt underwriting. It has the most completed mergers and acquisitions (M&A) of any firm last year. The M&A expects to increase in 2021.
Investment banking only represents about 21% of Goldman Sachs’ revenue. Global markets, the fixed income and equity trading arm, makes up 48%, while asset management accounts for 18% and consumer and wealth management represents 13%..
With market-leading positions in two segments, investment banking and global markets, and a focus on growing its banking business, Goldman Sachs will continue to grow over the long term. It has a great balance sheet with plenty of cash, about $155 billion and excellent return on equity (ROE). Goldman Sachs is the best value stock in the financial service sector.