Goldman Sachs (GS) has long been regarded as a leader in the financial services sector. Bloomberg reports that the company is looking to reduce 30% of its Asian Investment Banking (IB) team. GS’s Return on Equity (ROE) can be seen here. They are 1/3rd of those at the peak in FY2007. ROE measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
Looking at other juggernauts Deutsche Bank is awful on any measure. It has been on a long term slide since the blow up during GFC
Even National Australia Bank with its tail up on housing in Australia has not exactly seen ROE improve.
In Japan, Mitsubishi UFJ Financial Group has not set the world on fire.
While central banks keep running the line that things are “pleasing”, financial services companies aren’t feeling the love.