Goldman Sachs is planning a major reorganization to combine its largest businesses into three divisions, with its investment banking and trading businesses merged into a single unit, a source familiar with the matter told Reuters.
The plans are due to be announced Wednesday along with Goldman’s third-quarter results. Marcus, Goldman’s consumer banking business, will be absorbed into the wealth unit, the source said. A company spokesman declined to comment.
It is the company’s biggest reorganization since the company’s investor day in early 2020, when it outlined plans for four main units: investment banking, global markets, consumer and wealth management, and asset management.
The move comes as the Wall Street titan tries to boost its revenue from commission-based business and reduce its reliance on volatile investment banking and trading income.
The changes also signal that Marcus, the consumer unit, is being sidelined after Chief Executive David Solomon expressed grand ambitions to build a dominant digital bank.
Solomon has said the business could generate revenue of more than $4 billion by the end of 2024.
Net income at the consumer banking unit grew 23% to $1.49 billion in 2021, reflecting rising credit card and deposit balances, the bank said in its annual report.
Marcus offers digital banking products such as loans, savings, and certificates of deposit. It also offers credit cards through a partnership with Apple.
The consumer business serves more than 14 million customers and had more than $100 billion in deposits with more than $16 billion in card and loan balances, the bank has said.