At Extreme Investor Network, we strive to provide our readers with unique insights and valuable information in the world of business news. Today, we bring you the latest update on Goldman Sachs, one of the most prominent financial institutions in the world.
Goldman Sachs is set to post a significant pretax hit of around $400 million to its third-quarter results as the bank continues to unwind its consumer business. CEO David Solomon recently announced this development during a conference, revealing that the bank will be unloading its GM Card business along with a separate portfolio of loans, resulting in a hit to revenues when the results are reported next month.
This move is part of Goldman’s strategy to pivot away from its consumer operations, which has been met with turbulence in recent years. The bank’s foray into consumer retail led to write-downs and challenges, especially with its Apple Card credit card business. Now, Goldman is shifting its focus towards asset and wealth management to drive growth.
In addition to the consumer business restructuring, Solomon also mentioned that trading revenue for the quarter is expected to decline by 10% due to a tough year-over-year comparison and challenging trading conditions in the fixed-income markets in August.
Furthermore, Goldman Sachs was reportedly in talks to sell the GM Card platform to Barclays, according to The Wall Street Journal. This potential deal could further streamline Goldman’s operations and refocus its business strategy towards more profitable ventures.
Stay tuned to Extreme Investor Network for more exclusive updates and insights on the ever-evolving world of business and finance. Subscribe to our newsletter to receive the latest news and analysis straight to your inbox.