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 Wulan | Bloomberg Getty Images
Goldman Sachs will post a pretax hit of about $400 million to its third-quarter results as the bank continues to unwind its ill-fated consumer business.
CEO David Solomon said at the conference that by unloading the GM Card Goldman business, as well as a separate portfolio of loans, the bank will deliver a hit to profits when it reports results next month.
It’s the latest in turmoil related to Solomon’s push into consumer stores. At the end of 2022, Goldman began to move away from its new consumer operations, starting a series of declines related to the sale of pieces of the business. Goldman’s credit card business, particularly the Apple Card, has allowed rapid growth in retail credit, but has also led to losses and friction with regulators.
Goldman instead focuses on asset and wealth management to help drive growth. The bank is in talks to sell the GM Card platform to BarclaysThe Wall Street Journal reported in April.
Solomon also said that trading revenue for this quarter is headed for a 10% decline because of the year-over-year comparison is difficult and trading conditions are difficult in August for the fixed income market.
