The Wall Street Journal reported on 17 July that the New York securities firm is increasing its private banking activities and that the new unit will also lend more directly to companies.
Bank executives have set a goal of $100bn in loans, up from $12 billion at the end of March, the WSJ said.
Due to new regulations, market turmoil and a slow global economy Goldman Sachs has seen its traditional trading and investment banking operations suffer.
The WSJ reported that the new bank is part of its new, more cautious strategy to reshape its business.
To date, Goldman Sachs’s banking unit has about $100bn in assets, or nearly 10% of Goldman’s total assets, according to the WSJ.
Goldman’s plans to boost its in-house private bank were reported before the firm released its second quarter figures showing its net profits more than halved in the past three months.
Net income fell to $962m in the three months to 30 June, down from $2.1bn in the first quarter.
Goldman Sachs blamed a drop in its investment banking activities and deteriorating market conditions.
Goldman Sachs had assets under management of $227bn as of 31 December 2011.
The US bank had not responded to a request for comment at the time this story was posted.
Source: Private Banker International