Tomahawk, WI 9/16/2013 (BasicsMedia) – Goldman Sachs Group Inc (NYSE:GS) has made a name for itself as a top global investment banking institution. Further to this is the fact that it has established itself as one of the best securities and investment management providers in the world. It has diversified its client base to include individuals whose net worth is very high, governments, financial institutions and corporations. It has been listed by Fortune as the 93rd best company to work for, which is always an indication that employees are fully confident about a company. Is this belief justified?


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GS is the Best Run Investment Bank Globally

It is an accepted norm in the banking industry that GS has some of the smartest bankers. This is because the business brains which are at the helm of the company and run it, are also among the best in the land. This is one reason why the company has recently been awarded the Best Investment Bank by Euromoney. As recently as two years ago, the future looked quite bleak for GS but it owes a large debt of gratitude to its clients who chose to stick with it through thick and thin. One reason why it has received this award is that it is one of the best run investment banks.

Goldman Sachs continues to make new acquisitions which are also improving its position as the leading investment bank in the world. In Q22013, the company has reported $1,552 million in revenues, which is an increase of around 29% compared to the same quarter in 2012. Its underwriting business has benefited a great deal and performed much better based on the latest quarter returns which show an increase of 45%. The lower tax rate and investment gains have played a great role in doubling the profits the company has reported for the latest quarter.

Challenges Goldman Sachs faces

While the financial crisis may have somehow abated, the market is yet to fully respond positively to this. GS together with other major investment banks with a global reach have to still face up to this great challenge. The post crisis world still bears reservations regarding the banking industry and financial market as a whole. However, this hasn’t seriously dented GS’ net income which was reported at $1.86 billion, representing an increase from the $927 million announced in the same quarter in 2012. The net revenue was $8.61 billion, representing a 30% increase.

Factors Contributing to Goldman Sachs’ Increased Revenue

The three major contributors to the bank’s increased revenue include commodities trading, currency trading and fixed income. The improvements in the fixed income sector of the bank is not limited only to GS, but is also experienced in other investment banks such as Citigroup Inc and JPMorgan Chase & Co. These banks owe this development to the improvements which have been noted in the trading and underwriting revenues, especially those which have been reported for the second quarter of 2013.

The revenue growth which Goldman enjoyed can be attributed in large part to its investing and lending division, which witnessed growth from $203 million in 2012 to $1.42 billion in 2013. Its investment banking revenue was reported at $1.55 billion, which is an increase of around 29%. Based on these figures, I must say that the confidence which GS employees have on their company is completely justified.

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