Goldman Consolidates Asia IB Businesses, Boosts Regional Synergy

The Goldman Sachs Group GS is combining its three separate investment banking (IB) businesses in Asia into a single unit to integrate its regional deal advisory and capital market capabilities, according to a memo reviewed by Reuters.

Details of GS’s Integrated Asian IB Units

Iain Drayto, currently head of investment banking in Asia, excluding Japan, will lead the newly unified Asia Pacific investment banking division, per an internal memo.  In his new role, Drayto will collaborate closely with executives in Japan, Australia, and New Zealand to ensure seamless operations.  

"This structure will enable more holistic client engagement, more effective deployment of global and regional expertise, and increased career opportunities for our people," the company stated in the memo.

GS’s Prior Efforts to Focus on the Strength of IB

Goldman refocuses on its core strengths of IB and trading while scaling back its consumer banking business. In October 2024, the firm finalized an agreement to transfer its GM credit card business to Barclays, with Barclays set to acquire the program’s receivables this year. Additionally, in 2024, Goldman completed the sale of GreenSky, its home-improvement lending platform, to a consortium of investors. These moves demonstrate a well-thought-out exit from consumer finance, allowing Goldman to reallocate capital and attention toward higher-margin, more scalable businesses like IB.

GS’s Zacks Rank & Price Performance

In the last six months, shares of GS have lost 0.2% against the industry’s 0.8% growth.

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Restructuring Efforts by Other Banks

Likewise, major banks worldwide have been restructuring their businesses to optimize operations and enhance efficiency. In March 2025, HSBC Holdings PLC HSBC plans to boost its IB operations in Asia and the Middle East following its exit from key businesses in Europe and the United States, which was confirmed by Georges Elhedery, CEO of HSBC, in an interview with Bloomberg. 

The bank will primarily focus on debt and other financing activities globally, as well as mergers and acquisitions and equity capital markets in Asia and the Middle East. HSBC aims to invest in areas where it holds a stronger competitive edge to generate “quality” revenues.

Similarly, Reuters reported that Barclays PLC BCS intends to axe unrewarding customer relationships and further reduce the proportion of capital allocated to its investment bank as it increases its efforts to deploy capital toward higher revenue-generating businesses. 

This move is part of the three-year plan announced by BCS in February 2024 to save £2 billion from its cost base and redeploy its capital toward domestic businesses.

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