FICC: The Older DeskNarrow moat

Goldman Sachs (GS) — moat facet

Goldman's old bond desk still earns $14.5 billion, but the growth now comes from lending against bonds rather than trading them.

Fixed income, currencies and commodities built Goldman's trading reputation, and the desk is still large even if equities has passed it. FICC net revenues were $12,150 million in 2023, $13,342 million in 2024 and $14,522 million in 20251, about 20% growth in two years2.

FICC intermediation vs financing ($M)9,318Intermed. 202310,271Intermed. 20252,832Financing 20234,251Financing 2025Goldman Sachs Form 10-K FY2025, restated basis
Financing up 50%, intermediation up 10%.

Inside the line, the growth came from lending. FICC intermediation rose from $9,318 million to $10,271 million across those two years and FICC financing from $2,832 million to $4,251 million3. The restatement at the end of 2025 moved primary loan syndication and structured letters of credit into FICC financing4, so part of that line is newly classified rather than newly earned.

By line item, FICC market making earned $7,240 million in 2025, other principal transactions $966 million and net interest income $6,316 million5. That last figure is the financing book at work.

The desk is the firm's biggest carrier of interest-rate risk. Of the $120 million average daily value-at-risk in the second quarter of 2026, interest rates accounted for $82 million before diversification, against $30 million for commodities and $19 million for currencies6.

By quarter, FICC earned $3,487 million in the second quarter of 2025, $4,011 million in the first quarter of 2026 and $4,592 million in the second7. FICC intermediation rose 39% from a year earlier, to $3,376 million8. The desk had a better 2026 than its five-year record suggests.

The second quarter showed the desk still growing: FICC revenue of $4,592 million, up 32%, including record FICC financing of $1,216 million910. Keep an eye on FICC intermediation. Below $9 billion for a year, the classic bond-trading franchise would be shrinking underneath the financing growth.

Moat trajectory: Holding steady

FICC $12.2bn (2023) to $14.5bn (2025), led by financing.

The number that tests this moat
Reported
FICC net revenues, latest quarter
$4,592M (Q2 2026, +32%)

The bond, currency and commodity franchise; a year-on-year decline in intermediation would mean the classic desk was shrinking.

Source: Goldman Sachs Q2 2026 earnings results ↗
⚠ Threats to the moat
⚠ THREAT 01
Interest Rates Carry Most of the Risk
Interest rates are the biggest single risk on Goldman's trading books, larger than equities.
References
  1. ReportedFICC net revenues were $12,150 million in 2023, $13,342 million in 2024 and $14,522 million in 2025, about 20% growth in two years.
    Goldman Sachs Form 10-K for fiscal 2025 - segment results on the basis restated in the fourth quarter of 2025: net revenues by line, pre-tax earnings, return on equity, average common equity, loans and assets by segment for 2023-2025 - Global Banking & Markets segment results. — FY2023-FY2025 · publ. 25 February 2026 · source ↗
  2. Moat Explorer calcFICC net revenues were $12,150 million in 2023, $13,342 million in 2024 and $14,522 million in 2025, about 20% growth in two years.
    Moat Explorer calculation from Goldman Sachs' reported figures ($ millions unless stated; calendar years). Growth: net revenues 2025 58,283 / 53,512 - 1 = 8.9%, about 9%; 2022 47,365 / 59,339 - 1 = -20.2%; net earnings 2022 11,261 / 21,635 - 1 = -47.9%, nearly half; pre-tax earnings 21,852 / 10,739 = 2.03 times, about double; compensation 18,906 / 16,706 - 1 = 13.2%; total operating expenses 37,544 / 33,767 - 1 = 11.2%; preferred dividends 876 / 751 - 1 = 16.6%; CEO pay 47 / 39 - 1 = 20.5%; equities 16,535 / 11,549 - 1 = 43.2%; FICC 14,522 / 12,150 - 1 = 19.5%; FICC intermediation 10,271 / 9,318 - 1 = 10.2%; FICC financing 4,251 / 2,832 - 1 = 50.1%; Global Banking & Markets 41,453 / 29,994 - 1 = 38.2%; GBM pre-tax 17,574 / 11,000 - 1 = 59.8%; advisory 4,726 / 3,299 - 1 = 43.3%; underwriting (1,784 + 2,829) / (1,153 + 1,763) = 4,613 / 2,916 - 1 = 58.2%; investment banking fees 9,339 / 6,215 - 1 = 50.3%; 9,339 - 6,215 = 3,124, about $3.1 billion; Q2 2026 pace 3,395 x 4 = 13,580, 13,580 / 9,339 = 1.45; financing 11.45 / 6.03 = 1.90, close to double; intermediation best/worst 19.6 / 15.8 = 1.24; equity underwriting Q2 985 / 428 - 1 = 130%; H1 2026 equities 12,742 / 8,493 - 1 = 50%. Assets under supervision: 4,041 / 3,606 - 1 = 12.1% (six months); 3,606 / 3,137 - 1 = 15.0%; Q2 2026 rise 4,041 - 3,650 = 391 = inflows 230 + appreciation 161; management and other fees 11,538 / 10,415 - 1 = 10.8%; historical principal investments 9.4 - 6.0 = 3.4 billion; alternatives target 750 - 459 = 291 billion, 291 / 4.5 = 64.7, about 65 a year; 291 x 0.58% = 1.69 billion, about 1.7 billion; Shell mandate 40 / 4,041 = 1.0%; AWM ROE 12.5 + 2.3 = 14.8, near 15%. Shares of revenue: GBM 15,520 / 20,338 = 76.3% (Q2 2026), 41,453 / 58,283 = 71.1% (2025), 29,994 / 46,254 = 64.8% (2023); AWM 16,679 / 58,283 = 28.6% (2025), 16,316 / 53,512 = 30.5% (2024), 14,202 / 46,254 = 30.7% (2023), 4,597 / 20,338 = 22.6% (Q2 2026); equities 7,416 / 15,520 = 47.8% of the segment in Q2 2026; advisory 4,726 / 58,283 = 8.1%; GBM pre-tax 17,574 / 21,852 = 80.4%; FICC plus equities 14,522 + 16,535 = 31,057; Q2 2026 financing 1,216 + 3,259 = 4,475; durable revenues 26.3 / 58.283 = 45.1% (2025), 12.2 / 36.546 = 33.4% (2019); GBM assets 1,582,670 / 1,809,320 = 87.5%; brokered and sweep deposits (47 + 34) / 501 = 16.2%; compensation 18,906 / 37,544 = 50.4% of operating expenses; preferred dividends 876 / 17,176 = 5.1% of net earnings; financing against alternatives fees 11.45 / 2.37 = 4.8, about five times. Margins: GBM pre-tax margin 17,574 / 41,453 = 42.4% (2025), 11,000 / 29,994 = 36.7% (2023); AWM 4,127 / 16,679 = 24.7% (2025), 4,865 / 16,316 = 29.8% (2024), 1,763 / 14,202 = 12.4% (2023). Balance sheet and capital: total assets 2,128 / 1,675.972 - 1 = 27.0% (end-2024 to June 2026); equity 121,996 to about 123,000, almost unchanged; deposits 558 / 433 - 1 = 28.9%, about 29%; loans to deposits 261 / 558 = 46.8%, about 47%; JPMorgan deposits 2,559,320 / 501,000 = 5.1 times; CET1 headroom 12.9 - 11.4 = 1.5 points, about 150 basis points; a repeat of the first-half fall 12.9 - (14.3 - 12.9) = 11.5%; basic shares 298.4 / 322.9 - 1 = -7.6%, about 8% fewer; TBVPS 335.49 / 316.02 - 1 = 6.2%; buyback price 935.45 / 984.57 - 1 = -5.0%; first-half ROE 21.7 - 1.7 = 20.0%; Platform Solutions pre-tax losses 783 + 1,047 + 1,989 + 2,175 + 1,075 = 7,069, about $7.1 billion. Valuation: trailing twelve months to June 2026 net revenues 58,283 - 29,645 + 37,565 = 66,203; net earnings 17,176 - 8,461 + 12,258 = 20,973; diluted EPS 51.32 - 25.07 + 38.51 = 64.76; P/E 283,220 / 20,973 = 13.5; P/S 283,220 / 66,203 = 4.28; year-end P/E 263.64 / 17.176 = 15.35 (2025), 179.75 / 14.276 = 12.59 (2024), 125.80 / 8.516 = 14.77 (2023), 128.08 / 21.635 = 5.92 (2021); 52-week high 935.45 / 1,153.99 - 1 = -18.9%, about 19% below; Morgan Stanley gap 308.32 - 283.22 = 25.1 billion; market value on basic shares 298.4 x 935.45 = 279.1 billion. Further: Platform Solutions provisions against revenue (old basis) 1,728 / 1,502 = 115% (2022), 1,135 / 2,378 = 47.7%, about 48% (2023), 1,540 / 2,427 = 63.5%, about 63% (2024); 2021 to 2022 revenue fall 59,339 - 47,365 = 11,974, about $12 billion; Q2 2026 equities less Q1 7,416 - 5,326 = 2,090; AWM revenue 2025 16,679 / 16,316 - 1 = 2.2%; liquidity products 1,065 / 4,041 = 26.4%, about a quarter; AUS year on year 4,041 / 3,293 - 1 = 22.7%, about 23%; alternatives 459 / 2,976 = 15.4% of long-term AUS; private banking and lending H1 2026 638 + 689 = 1,327, x 2 = 2,654, near $2.7 billion; VaR factors before diversification 82 + 65 + 19 + 30 = 196; GBM Q1 2026 12,738 / 17,227 = 73.9%, about 74%; transaction banking and private bank deposits (70 + 101) / 501 = 34.1%, about a third; GBM assets share 87.5%, nearly nine-tenths; EMEA 2025 14,155 / 12,250 - 1 = 15.6%, about 16%; unsecured long-term borrowings 285,500 / 242,634 - 1 = 17.7%, about 18%; JPMorgan deposits 2,559,320 / 2,406,032 - 1 = 6.4%; Goldman deposits 501 / 433 - 1 = 15.7%, about 16%; H1 2026 financing 2,278 + 5,867 = 8,145; Q2 2026 compensation 6,104 / 4,685 - 1 = 30.3%; diluted shares 321.4 / 306.5 - 1 = 4.9%, about 5%; advisory 2025 4,726 / 3,534 - 1 = 33.7%, about 34%; underwriting 2025 (1,784 + 2,829) / (1,677 + 2,521) = 4,613 / 4,198 - 1 = 9.9%, about 10%; debt share of underwriting 2,829 / 4,613 = 61.3%, about three-fifths; wealth channel 1,041 / 862 - 1 = 20.8%, about 21%; CET1 ratio 101,657 / 790,640 = 12.86%; 101,657 / 800,640 = 12.70%, so 10 billion of RWAs costs about 16 basis points; GBM pre-tax Q2 2026 7,499 / 4,075 - 1 = 84.0%; market value 2025 263.64 / 179.75 - 1 = 46.7% - Global Banking & Markets arithmetic: growth rates, revenue shares and margins. — FY2019-Q2 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Goldman Sachs' Forms 10-K and 10-Q, its earnings releases and presentations, JPMorgan's Form 10-K and market data; operands shown in the source line.
  3. ReportedFICC intermediation rose from $9,318 million to $10,271 million across those two years and FICC financing from $2,832 million to $4,251 million.
    Goldman Sachs Form 10-K for fiscal 2025 - segment results on the basis restated in the fourth quarter of 2025: net revenues by line, pre-tax earnings, return on equity, average common equity, loans and assets by segment for 2023-2025 - Global Banking & Markets segment results. — FY2023-FY2025 · publ. 25 February 2026 · source ↗
  4. ReportedThe restatement at the end of 2025 moved primary loan syndication and structured letters of credit into FICC financing, so part of that line is newly classified rather than newly earned.
    Goldman Sachs Form 10-K for fiscal 2025 - segment results on the basis restated in the fourth quarter of 2025: net revenues by line, pre-tax earnings, return on equity, average common equity, loans and assets by segment for 2023-2025 - Global Banking & Markets segment results. — FY2023-FY2025 · publ. 25 February 2026 · source ↗
  5. ReportedBy line item, FICC market making earned $7,240 million in 2025, other principal transactions $966 million and net interest income $6,316 million.
    Goldman Sachs Form 10-K for fiscal 2025 - segment results on the basis restated in the fourth quarter of 2025: net revenues by line, pre-tax earnings, return on equity, average common equity, loans and assets by segment for 2023-2025 - Global Banking & Markets segment results. — FY2023-FY2025 · publ. 25 February 2026 · source ↗
  6. ReportedOf the $120 million average daily value-at-risk in the second quarter of 2026, interest rates accounted for $82 million before diversification, against $30 million for commodities and $19 million for currencies.
    Goldman Sachs second-quarter 2026 earnings results, Form 8-K exhibit 99.1 - segment and line revenues for the quarter and half, earnings, balance sheet, capital, VaR, assets under supervision and the dividend increase - balance sheet, capital, risk, provisions, headcount and capital returned. — Q2 2026 · publ. 14 July 2026 · source ↗
  7. ReportedBy quarter, FICC earned $3,487 million in the second quarter of 2025, $4,011 million in the first quarter of 2026 and $4,592 million in the second.
    Goldman Sachs second-quarter 2026 earnings results, Form 8-K exhibit 99.1 - segment and line revenues for the quarter and half, earnings, balance sheet, capital, VaR, assets under supervision and the dividend increase - Global Banking & Markets revenue by line for the quarter and half. — Q2 2026 · publ. 14 July 2026 · source ↗
  8. ReportedFICC intermediation rose 39% from a year earlier, to $3,376 million.
    Goldman Sachs second-quarter 2026 earnings results, Form 8-K exhibit 99.1 - segment and line revenues for the quarter and half, earnings, balance sheet, capital, VaR, assets under supervision and the dividend increase - Global Banking & Markets revenue by line for the quarter and half. — Q2 2026 · publ. 14 July 2026 · source ↗
  9. ReportedThe second quarter showed the desk still growing: FICC revenue of $4,592 million, up 32%, including record FICC financing of $1,216 million.
    Goldman Sachs second-quarter 2026 earnings results, Form 8-K exhibit 99.1 - segment and line revenues for the quarter and half, earnings, balance sheet, capital, VaR, assets under supervision and the dividend increase - Global Banking & Markets revenue by line for the quarter and half. — Q2 2026 · publ. 14 July 2026 · source ↗
  10. ReportedThe second quarter showed the desk still growing: FICC revenue of $4,592 million, up 32%, including record FICC financing of $1,216 million.
    Goldman Sachs second-quarter 2026 earnings presentation, Form 8-K exhibit 99.2 - ROE, ROTE, efficiency ratio, Dealogic rankings, AUS by channel, alternatives fundraising and wealth figures. — Q2 2026 · publ. 14 July 2026 · source ↗
Sources
Generated September 28, 2026