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Goldman Sachs reveal losses.

 

Goldman Sachs reveals losses.

The bank said that Goldman Sachs’s newly formed technology and consumer unit made the equivalent of $3bn in pretax losses since 2020.

In its most detailed information to date about losses involved in its push into consumer banking, Goldman has republished the past three years of its financial results to reflect the group’s new divisional structure.

The new units include its Platform Solutions division, which reported losses of $1.2bn for the first nine months of 2022, $1.05bn for the whole year in 2021 and $783mn in 2020. In addition, chief executive David Solomon announced Goldman’s new structure in October to persuade investors to bestow a higher valuation on the bank.

Yesterday’s data release was intended to help them track performance ahead of the bank’s fourth-quarter results next week.

The Platform Solutions unit encompasses the technology Goldman uses to support credit cards for companies such as Apple and General Motors, the online lending business GreenSky, which it acquired last year, and transaction banking services for corporate clients.

The reorganisation also merged Goldman’s crown jewel investment banking and trading businesses into one division and reunited the bank’s asset and wealth management businesses.

The numbers published yesterday also underscore how the merged investment banking and trading business is Goldman’s profit engine, reporting pretax profits for the first nine months of the year of $11.9bn, the vast majority of its $12bn in profits.

Asset and wealth management reported more modest pretax profits of $1.2bn, but, in the long term, Goldman management hopes this business will generate more stable revenues for the bank, boosting its stock market multiple times.

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Comments

  1. Evan15 January 2023 at 13:36

    Considering the effects the pandemic had on everything (almost) these losses are not that surprising. Even giants like Goldman Sachs have suffered and are suffering.

    ReplyDelete
  2. Kaitlyn15 January 2023 at 14:38

    It will probably take another 2-3 years before things are back to the way they were pre-pandemic. And that is IF nothing else bad happens and that's a big IF.

    ReplyDelete

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