The South African who became Europe’s top banker

South African-born Richard Gnodde has climbed his way up the investment banking ladder at Goldman Sachs to become the Vice-Chairman of its international operations. 

Gnodde has also previously won European Investment Banker of the Year for the firm’s strong performance on the continent since it expanded outside the United States. 

Now, after giving up his position as CEO of Goldman Sachs International, the South African is charged with leading the investment bank’s growth worldwide. 

Gnodde was born and educated in South Africa, attending St John’s College in Houghton before moving on to the University of Cape Town (UCT). 

At UCT, Gnodde completed a Bachelor of Commerce degree in the early 1980s and was also a keen rugby player, representing the university’s under-20 team. 

Gnodde said UCT played a significant role in his life by instilling a standard of excellence and yielding him lifelong friendships. 

Despite his love of UCT and South Africa, Gnodde would quickly move overseas to complete a Master’s in Law at the University of Cambridge. 

Gnodde would never look back, moving to London to begin his career in finance at Goldman Sachs in 1987 in the bank’s merger department. 

Over the next decade, Gnodde had stints in Japan, Singapore, and Hong Kong, gaining valuable experience in the bank’s international operations.

Less than ten years after joining Goldman Sachs, he was promoted to managing director and, shortly afterwards, a partner. 

Under his leadership, Goldman was the lead adviser for Indian tycoon Lakshmi Mittal in his purchase of Arcelor to form a steelmaking giant. 

While many Western companies were closely monitoring China’s economic progress, Goldman Sachs was diving in head first to lead dealmaking in Asia.

Leading this charge as first co-head of investment banking in Asia and then President of Goldman Sachs Asia was Gnodde. 

Credited with playing a leading role in expanding Goldman’s expansion into Asia, Gnodde secured the firm vital access to China’s burgeoning equities markets. 

He brokered a landmark deal with Gao Hua Securities, a Chinese banking company, to create a joint venture investment bank in the country in 2004. 

However, while Goldman Sachs’ Asian business flourished, the bank was under increasing pressure in Europe due to its extremely aggressive dealmaking.

The ‘spank from Hank’ – a sharp dressing down from then-CEO Hank Paulson – would reshape Goldman’s international business and thrust Gnodde into the spotlight. 

Charged with repairing the bank’s rough and aggressive image in Europe, Gnodde was promoted to CEO of Goldman’s European business in 2006. 

Gnodde’s well-documented charisma and diplomatic charm were seen as an effective promotion of the bank’s more human side.

At a press conference early on in his European banking career, Gnodde emphasised the role of culture and trust in running a successful bank. 

“A part of winning back trust for the financial sector is showing itself to be of great value, rather than a source of excessive risk,” the Evening Standard reported him as saying. 

Gnodde would not be CEO for long before controversy struck, with Goldman accused of profiting out of the failure of Northern Rock during the Great Financial Crisis (GFC). 

Goldman’s A-team, which included Gnodde, was instead trying to engineer a life-saving package for Northern Rock. 

Detractors claimed Goldman was pocketing £230 million from the deal when it was really netting £30 million. During this period, the bank would inspire fear and loathing in equal measure in Europe, the Evening Standard said. 

Somehow, under Gnodde, the bank had an uncanny ability to cover all the angles and win all ends up. This would result in him winning European Investment Banker of the Year in 2014. 

After his success in navigating the bank’s European operations through the GFC, Gnodde would lead the expansion of the bank’s consumer banking offering across the continent. 

Taking effective control of all the bank’s operations in Europe, the Middle East, and Africa, Gnodde was appointed CEO of Goldman Sachs International in 2016.

However, once again, disruption would come knocking with Brexit, forcing Goldman to relocate some of its operations to the continent and out of its historic heart of London. 

Gnodde would move more than half of Goldman’s investment bankers out of London due to Brexit and placed them in Milan, Paris, and Frankfurt instead. 

After nearly two decades of leading Goldman’s European operations, Gnodde decided to relinquish his duties as CEO and step back from the coalface to be Vica-Chairman. 

“I feel fantastic. For the overall firm, it is a hugely exciting and energising time. We have put in place a set of leaders that can really take this firm forward over the next five to ten years,” Gnodde told Bloomberg in Davos in early 2025. 

“For myself, I have given up my CEO responsibilities, but I am thrilled to have the remit to really operate broadly around the world and spend time without people and our clients. I am really excited.” 

Apart from his success in dealmaking and leading an investment bank, Gnodde is an avid philanthropist and remains heavily involved in the running of UCT. 

Gnodde has served as a member of the Board of Trustees for UCT since 2012 and was one of the pioneer donors to the Distinguishing UCT Campaign at its inception in 2014. 

With his wife Kara, also one of UCT’s alumni, he has championed the value of building strong endowments that enable universities to sustain the pursuit of excellence, the university said. 

Gnodde is particularly passionate about freeing up financial resources so that the university can offer more bursaries and scholarships.

“It is my hope that we are instrumental in producing students who emerge as influential leaders, stimulating and participating in the important debates about our future and making sure the country gets to where it needs to be.”

“If we believe in South Africa and we are passionate about the country succeeding, then we must invest in educational institutions.”

“We need to continue providing an environment where the best and the brightest minds can be challenged and go on to make outstanding contributions in their fields, both in South Africa and all over the world.”