David Solomon, CEO of Goldman Sachs, during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” in New York on August 6, 2024.
Jeenah Moon | Bloomberg | Getty Images
Goldman Sachs will post a negative pre-tax impact of approximately $400 million on third-quarter results as the bank continues to wind down its ill-fated consumer business.
CEO David Solomon said at a conference on Monday that the bank, by spinning off Goldman’s GM Card business as well as a separate portfolio of loans, would take a hit to earnings when it reports results next month.
It’s the latest turbulence linked to Solomon’s move into consumer retail. In late 2022, Goldman began pivoting away from its nascent consumer business and began a series of writedowns related to the sale of parts of the business. Goldman’s credit card business, especially the Apple Card, enabled rapid growth in retail lending but also led to losses and friction with regulators.
Goldman is instead focusing on asset and wealth management to help drive growth. The bank was in discussions to sell the GM Card platform BarclaysThe Wall Street Journal reported in April.
Solomon also said Monday that trading revenue for the quarter was on track for a 10% decline due to a tough year-over-year comparison and difficult trading conditions in August for fixed income markets.