Goldman Sachs 2015 Annual Report Download - page 14

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
The table below presents our segment operating results.
Year Ended December 1% of 2015
Net
Revenues$ in millions 2015 2014 2013
Investment Banking
Net revenues $ 7,027 $ 6,464 $ 6,004 21%
Operating expenses 3,713 3,688 3,479
Pre-tax earnings $ 3,314 $ 2,776 $ 2,525
Institutional Client Services
Net revenues $15,151 $15,197 $15,721 45%
Operating expenses 213,938 10,880 11,792
Pre-tax earnings $ 1,213 $ 4,317 $ 3,929
Investing & Lending
Net revenues $ 5,436 $ 6,825 $ 7,018 16%
Operating expenses 2,402 2,819 2,686
Pre-tax earnings $ 3,034 $ 4,006 $ 4,332
Investment Management
Net revenues $ 6,206 $ 6,042 $ 5,463 18%
Operating expenses 4,841 4,647 4,357
Pre-tax earnings $ 1,365 $ 1,395 $ 1,106
Total net revenues $33,820 $34,528 $34,206
Total operating expenses 325,042 22,171 22,469
Total pre-tax earnings $ 8,778 $12,357 $11,737
1. Financial information concerning our business segments for 2015, 2014 and
2013 is included in “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and the “Financial Statements and
Supplementary Data,” which are in Part II, Items 7 and 8, respectively, of the
2015 Form 10-K. See Note 25 to the consolidated financial statements in
Part II, Item 8 of the 2015 Form 10-K for a summary of our total net
revenues, pre-tax earnings and net earnings by geographic region.
2. Includes provisions of $3.37 billion recorded during 2015 for the agreement
in principle with the Residential Mortgage-Backed Securities Working Group
of the U.S. Financial Fraud Enforcement Task Force (RMBS Working Group).
See Note 27 to the consolidated financial statements in Part II, Item 8 of the
2015 Form 10-K for further information about this agreement in principle.
3. Includes charitable contributions that have not been allocated to our
segments of $148 million for 2015, $137 million for 2014 and $155 million for
2013.
Investment Banking
Investment Banking serves public and private sector clients
around the world. We provide financial advisory services
and help companies raise capital to strengthen and grow
their businesses. We seek to develop and maintain long-
term relationships with a diverse global group of
institutional clients, including governments, states and
municipalities. Our goal is to deliver to our institutional
clients the entire resources of the firm in a seamless fashion,
with investment banking serving as the main initial point of
contact with Goldman Sachs.
Financial Advisory. Financial Advisory includes strategic
advisory assignments with respect to mergers and
acquisitions, divestitures, corporate defense activities,
restructurings, spin-offs and risk management. In
particular, we help clients execute large, complex
transactions for which we provide multiple services,
including cross-border structuring expertise. Financial
Advisory also includes revenues from derivative
transactions directly related to these client advisory
assignments.
We also assist our clients in managing their asset and
liability exposures and their capital.
Underwriting. The other core activity of Investment
Banking is helping companies raise capital to fund their
businesses. As a financial intermediary, our job is to match
the capital of our investing clients — who aim to grow the
savings of millions of people — with the needs of our public
and private sector clients — who need financing to generate
growth, create jobs and deliver products and services. Our
underwriting activities include public offerings and private
placements, including local and cross-border transactions
and acquisition financing, of a wide range of securities and
other financial instruments. Underwriting also includes
revenues from derivative transactions entered into with
public and private sector clients in connection with our
underwriting activities.
Equity Underwriting.We underwrite common and
preferred stock and convertible and exchangeable
securities. We regularly receive mandates for large, complex
transactions and have held a leading position in worldwide
public common stock offerings and worldwide initial public
offerings for many years.
Debt Underwriting. We underwrite and originate various
types of debt instruments, including investment-grade and
high-yield debt, bank loans and bridge loans, including in
connection with acquisition financing, and emerging- and
growth-market debt, which may be issued by, among
others, corporate, sovereign, municipal and agency issuers.
In addition, we underwrite and originate structured
securities, which include mortgage-related securities and
other asset-backed securities.
2Goldman Sachs 2015 Form 10-K