David Solomon, CEO of Goldman Sachs, during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” on August 6, 2024 in New York.
Jeenah Moon | Bloomberg | Getty Images
Goldman Sachs will report a third-quarter pretax lack of about $400 million because the bank continues to wind down its ill-fated retail business.
CEO David Solomon said at a conference on Monday that the divestiture of Goldman’s GM Card business and a separate loan portfolio will end in revenue losses when results are released next month.
It’s the most recent turmoil surrounding Solomon’s foray into retail banking. In late 2022, Goldman began pivoting away from its fledgling retail banking business and commenced a series of write-downs related to the sale of parts of the business. Goldman’s bank card business, particularly the Apple Card, enabled rapid growth in retail lending, but additionally led to losses and friction with regulators.
Goldman is as a substitute specializing in asset management to drive growth. The bank was in talks to sell the GM Card platform to BarclaysThe Wall Street Journal reported in April.
Solomon also said on Monday that trading revenue for the quarter was headed for a ten% decline as a consequence of a difficult year-on-year comparison and difficult trading conditions within the bond markets in August.
