Goldman Sachs to put up $400M hit in third quarter over shopper enterprise

Goldman Sachs will put up a roughly $400 million pretax hit to third-quarter outcomes because the financial institution continues to unwind its ill-fated shopper enterprise.

CEO David Solomon mentioned Monday at a convention that by unloading Goldman’s GM Card enterprise, in addition to a separate portfolio of loans, the financial institution would put up a success to revenues when it stories outcomes subsequent month.

It’s the newest turbulence associated to Solomon’s push into shopper retail. In late 2022, Goldman started to pivot away from its nascent shopper operations, starting a sequence of write-downs associated to promoting chunks of the enterprise. Goldman’s bank card enterprise, specifically its Apple Card, allowed fast progress in retail lending, but in addition led to losses and friction with regulators.

Goldman is as a substitute specializing in asset and wealth administration to assist drive progress. The financial institution was in talks to promote the GM Card platform to Barclays, The Wall Road Journal reported in April.

Solomon additionally mentioned Monday that buying and selling income for the quarter was headed for a ten% decline due to a troublesome year-over-year comparability and tough buying and selling situations in August for fixed-income markets.