Goldman Sachs to post $400 million hit to third-quarter results as it unwinds consumer business
Published On Sep 9, 2024, 6:09 PM
Goldman Sachs is set to report a pretax loss of approximately $400 million in its third-quarter results due to a continued unwinding of its consumer business. CEO David Solomon announced that the bank is divesting from its GM Card business and a portfolio of loans, leading to lower revenues. Additionally, trading revenue is expected to decline by about 10% due to challenging market conditions. This decision follows Goldman's struggle to compete in the consumer finance sector, which has resulted in significant losses and regulatory challenges, prompting a shift back to asset and wealth management.
Stock Forecasts
GS
Negative
Goldman Sachs is facing significant headwinds in its consumer business operations, particularly with the divestment and losses incurred. Although the strategy to pivot back to asset and wealth management may eventually stabilize operations, the immediate financial hit and decline in trading revenue suggest further negative sentiment in the short term.
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