General presentation of Goldman Sachs :
Let's now take a look at Goldman Sachs and its activities so that we can better understand how it generates its revenues and what its growth drivers are.
The Goldman Sachs Group is a US-based investment services firm.
In order to better understand the activities of this group, it is possible to divide them into different divisions according to the share of turnover they generate and in this way :
- Investment services account for 40.5% of the group's turnover, including interventions in the equity, interest rate, foreign exchange and commodities markets.
- This is followed by asset management activities, which generate 24.5% of the company's turnover.
- The investment banking business generates 20.8% of Goldman Sachs' revenues with M&A advisory, equity and other transactions.
- Finally, the granting of loans to individuals and companies represents 14.2% of the group's turnover.
It should be noted that Goldman Sachs is also developing a parallel activity of acquiring stakes in fast-growing technology companies.
It is also interesting to know the geographical distribution of the Goldman Sachs Group's revenues, which generates 60.6% of its turnover in America, 26.7% in Europe, Africa and the Middle East and 12.7% in Asia.
Know the competition of Goldman Sachs shares:
For your analysis of the Goldman Sachs share to be relevant, you must also be familiar with the company's competitors, the main ones being the following:
- Credit Suisse: This Zurich-based banking group focuses on individual customers, small and medium-sized enterprises and government agencies. Its shares are listed on the Swiss market as well as on the New York market and the company currently employs more than 47,000 people worldwide.
- Deutsche Bank: This group is currently the largest banking group in Germany and the eighth largest European bank by capitalization. It is a universal bank with subsidiaries in more than 75 countries.
- ING Group: This Dutch financial institution is an international bancassurance institution which was created in 1991 from the merger between the insurance company Nationale Nederlanden and the network bank NMB Postbank.
- Morgan Stanley: This American bank also operates in 42 different countries and benefits from a network of more than 1,300 offices and 60,000 employees. Morgan Stanley currently manages more than $2 trillion in assets for its clients and has 600 branches in the United States, making it one of the world's largest players in wealth management.
- Citigroup : Finally, the financial company Citigroup is also based in the United States. It results from the merger in 1998 of Citicorp and Travelers Group.
The strategic alliances set up by the Goldman Sachs Group :
In addition to having a good knowledge of Goldman Sachs' main competitors, you must also be familiar with its main allies. We now propose you to discover some recent examples of strategic partnerships that this group has set up.
- Amundi: Goldman Sachs' subsidiary Goldman Sachs Fund Solutions signed a strategic partnership with Amundi Services in 2018 in the quantitative and alternative management sector. More specifically, Amundi Services has been chosen to manage, control and supervise investment vehicles governed by Luxembourg law based on the systematic strategies of Goldman Sachs. The French group will also provide a management service as well as analysis and monitoring of the external managers present on the UCITS platform for alternative funds. The financial management of the systematic funds is also delegated to a team of Amundi Group structural products.
- Amazon: Another important partnership was signed more recently, in June 2020, with online retail giant Amazon. Thanks to this partnership, Goldman Sachs offers a new credit offer for the general public. Let us recall that the group had already collaborated in this sense with Apple for the launch of its bank card in the United States. With this new partnership with Amazon, Goldman Sachs intends to expand its presence in this segment. More specifically, this contract enables Goldman Sachs to offer loan offers to the millions of independent American sellers who use the Amazon platform to sell their stocks. These loans will thus complement the loan offers already offered by Amazon and made available to sellers through a service in partnership with Bank Of America.