(Reuters) -Goldman Sachs Group Inc said on Tuesday it was reorganizing its business into three units, as the Wall Street giant undertakes another overhaul in less than three years, while also reporting a drop in third-quarter profit.
The bank will now have three operating segments – asset and wealth management, global banking and markets and platform solutions. Goldman did not give details about the executives who will lead the units.
Shares rose 2.5% to $314.50 in premarket trading.
The reshuffle comes as the investment bank seeks to boost its income from fee-based businesses at a time when rising interest rates have dented valuations and deal-making and follows a round of global job cuts in September.
“It’s time to be cautious,” Chief Executive David Solomon said in an interview to CNBC while referring to the state of the economy.
The bank rounds out a mixed quarter for big U.S. banks, in which choppy capital markets and slowing economic growth weakened investment banking.
Dealmaking slowed in the quarter, casting a pall over some of Goldman’s most lucrative businesses. However, rising borrowing costs boosted net interest income to cushion the blow, with the net interest margin rising 31%.
Profit applicable to common shareholders fell to $2.96 billion, or $8.25 per share, in the quarter ended Sept. 30, from $5.28 billion, or $14.93 per share, a year ago.
Analysts had expected a profit of $7.69 per share, according to Refinitiv data. It was not immediately clear if the reported numbers were comparable to estimates.
Total revenue fell 12% to $11.98 billion in the quarter.
In the face of aggressive Federal Reserve rate increases and the war in Ukraine, investors, however, boosted trading activity, helping the bank’s fixed income, currency and commodities division.
Goldman on Tuesday did not disclose plans for Marcus, its consumer banking unit. Reuters reported on Monday citing sources that Marcus, the brainchild of CEO Solomon in his pursuit for steadier revenue streams, will be part of the merged asset and wealth management unit.
(Reporting by Niket Nishant and Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur)