David Solomon, CEO of Goldman Sachs, during an interview on an episode of “The David Rubenstein Show: Conversations Among Peers” in New York on August 6, 2024.
Gina Moon | Bloomberg | Getty Images
Goldman Sachs The U.S. financial services company is expected to report a pretax loss of $400 million in its third-quarter results as the bank continues to divest its struggling consumer business.
The sale of Goldman's GM Card business, as well as a separate portfolio of loans, would negatively impact revenue when it reports results next month, Chief Executive David Solomon said on a conference call Monday.
It’s the latest turmoil linked to Solomon’s push into consumer retail. In late 2022, Goldman began shifting away from its nascent consumer operations, embarking on a series of writedowns related to selling off parts of the business. Goldman’s credit card business, particularly the Apple Card, has allowed for rapid growth in retail lending but has also led to losses and friction with regulators.
Instead, Goldman is focusing on asset and wealth management to help drive growth. The bank has been in talks to sell its GM Card platform to BarclaysAs The Wall Street Journal reported in April.
Soliman also said on Monday that trading revenue for the quarter was heading for a 10% decline due to difficult year-over-year comparisons and tough trading conditions in August for fixed income markets.
