admired brands?admired brands?  
Banking Sector Overview
Executive SummaryExecutive Summary
Goldman Sachs Group, Inc (NYSE: GS) is an American multinational investment bank with a diversi!ed
business model which consistently ranked among premier !nancial institutions globally
I looked at di"    erent aspects of the !rm to identify the key value drivers for the !rm and in order to
evaluate why Goldman Sachs is one of the world's most admired brands
 Invests substantially in technology driven prospects to further enhance its risk management
culture
Its recruitment strategy always ensures fresh talent acquisition and retention via its expansive
and comprehensive training programs
Highest growth potential and revenue-generation among the largest US banks worldwide despite of 
numerous capital restructuring and regulation
Its expansive network across various key growth drivers expose the business to a wide array of M&A
deals, investment opportunities, strong corporate ties and vast amount of resources to mitigate most
economic downturns and safeguard pro!tability better than peers  
 
 
Credit & Equity MarketCredit & Equity Market Interest rate and equity market volatility has consistently declined since the!nancial
crisis, reducing banks pro!tability from trading
Equity market sentiment has improved consistently since 2011 as shown by S&P500
 
Quarterly S&P 500 and VIX TrendsQuarterly S&P 500 and VIX Trends Steady and stable decline in the market
volatility since 2011
revenues from banks, followed by sharp
decline as volatility increased
gradually to ease short term in$ationary
pressure from increased economic
term cost of borrowing will remain
stable until 2016, rising gradually
thereafter
Investment banks shed 'non-core' business to cut costs
Fixed income, Currencies and Commodities (FICC) trading
revenues face structural pressure
Firms embrace larger roles for risk managers (CFO post
established)
Cyberthreats gain prominence leading to investment in
infrastructure and operations
capital-asset ratio
 
4. Invest substantially in technology and data
5. Client Value Optimisation
Continued transition towards models relying on capital-light and
expertise driven avenue
Collateral management, regulatory reporting and online data
services to increase client transparency
Reassess capital consuming business lines (Fixed Income
trading) already weakened by the Volcker Rule
Shift focus on wealth management in line with LCR
requirement for more stability. IM takes precedence going
forward.
4 & 5. Technology, Data and Client Value Optimisation
Aggregation of risk across departments, investment in analytics
and strengthening risk mindedness.
compensation.
Work closely with companies at the forefront of technology
driven transformation
Investing on 3-D printing, big data solutions and software de!ned
network (SDN) providing new revenue streams to bolster current
pro!t margins
Signi!cant !nancier and advisor in M&A and underwriting
Ranked !rst in both announced and completed global M&A deals
Lead-left bookrunner for nearly twice as many technology IPOs in
the US than the next most active underwriter
2. Institutional Client Services
markets
strategies for clients
provide fundamental research on all major asset classes
 
 
 
Make investments directly and indirectly via internally managed funds
Recently expanded by $50 billion in new assets from acquisition of 
Dwight Asset Management and Deutsche Bank’s stable value business
GS Special Situations Group raised $US 863 million for the purchase of 
Australian !rm Suncorp, biggest distressed lending deal in 2013
4. Investment Management4. Investment Management
Provide customized investment advisory solutions designed to
address clients’ investment needs
The AW mutual fund performance has been above the industry average
for nine consecutive quarters through 2013 with net AUM at $41 billion,
highest since 2007
portfolio management
Text
 
Company PerformanceCompany Performance  1st in global M&A advisor and lead
book runner across major asset
classes 2013,2014
strong growth outlook in investment
banking services o"    er secure and
high growth potential for the future
Most successful foreign investment
investment banking segment, double
 
Figure Source: Deloitte Research, 2014Figure Source: Deloitte Research, 2014
 
5 Year Market Outlook5 Year Market Outlook With growth in US market
performance positive, M&A likely
to do well
technology IPOs favoured to
temporary rather than structural
particularly with asset
management and increased
a"    ected
di%cult in 5 year growth model 
 
of the !rm (8,000 headcount) - larger than many pure tech!rms
A proprietary programming language and database platform, open-source Java
collections library and software development lifecycle
Daily risk calculations use a total of 47,000 CPUs to process more than 10 billion
prices and execute more than 2.5 quintillion 64-bit instructions
Goldman Sachs University - focuses on in house training on advanced
technology, cross cultural management and soft skills training
Its superior proprietary technology systems and research department enable
development of complex!nancial securities that permit them to take on more
risk
EnergyEnergy $40 billion investment into established and emerging energy sectors over next 10
years.
Emphasis on renewable energy sector - Investment of $320 million in Indian wind
energy ReNew Power to harness wind energy
Facilitated a $495 million IPO of NRG Energy, with portion of the proceeds
reinvested into the future of the industry
O"    ers expert advice on investment and !nancing opportunities for shale oil
production
Core business alignment focused on economic growth and community
engagement
Establish networks of nonpro!t and education partners with world class
experience and expertise
Measure results to ensure maximum success
Engage time and talent of people at Goldman Sachs at all levels of the!rm
10,000 women - 5 year, $100 million initiative for women entrepreneurs
10,000 small businesses - $500 million investment active in 15 markets across
the US 
Goldman Sachs Gives - $667 million in 3,600 charities across 35 countries
Community TeamWorks - a volunteering initiative
 
Risk ManagementRisk Management Avoided the large losses its peers su"    ered in 2008 - evidence that its risk based
culture depicts superior performance
Reduced its leverage ratio from 25.2 (2007) to 11 (2014), one of the lowest risk
pro!les among investment banks
The Partnership Heritage, allowed for prudent stewardship of the!rm's capital
(80% partner ownership since 1869)
Investment in risk and quantitative professionals free to debate on risk issues
freely without fear of sanctions since 1980
 First bank to introduce quantitative analysis into risk management models
Establishment of a !rm-wide risk committee in 2007 - meets weekly to discuss
 
greatest assetsgreatest assets Best paying banks for Vice
President positions, 2nd in
the highest employee
recognized every year that the
Great Place to Work Institute has
issued its list since 1984
 
Company Awards and EmployeeCompany Awards and Employee
recognitionrecognition 1st choice for bankers; leads Morgan Stanley (5th) and JP Morgan (9th) in
Glassdoor's 25 Best Banks to Work report, an anonymous website for employee
reviews and ratings
Other notable awards and outstanding employee recognition:
Universum: World's Most Attractive Employer - Global Top 50 and 8th among 
business students
Vault: Top 50 Banking Employers - 1st in US and UK and 2nd overall 
4th in The Chronicle of Philanthropy: 10 Companies that gave the most cash in 2013
(July 2014)
Universum: Top 100 IDEAL Employers:9th overall for US undergraduates and 7th
among undergraduate students in Singapore
1st in eFinancialCareers Top 20 “Ideal” Financial Services Employers
 
 
Statistical Analysis vs PeersStatistical Analysis vs Peers GS has generated the highest
average EPS growth rate, ROE and
BVPS growth
Currently trading at $183.45
are undervalued
 
More Than Just A Bank...More Than Just A Bank... Actively involved in community,
social and cultural aspects of 
people across the globe
The world's renowned "social
corporate ties with governments
Invested substantially in education,
training and venture capital
schemes, enhancing its recruitment