Goldman Sachs’s Apple Card unit loses $1.2 billion in nine months

The Goldman Sachs business which houses Apple’s credit card lost more than $1 billion in its first nine months of 2022.

According to a regulatory filing, the bank’s Platform Solutions unit generated $1.2 billion in pretax losses. Concerningly for Goldman, the filing shows that the drop accelerated each quarter.

The Platform Solutions business initially started life as the bank’s lofty attempt to build a digital bank of the future for the consumer market. However, persistent costs and the challenges of starting new lines of business caused Goldman to scale back its plans.

The filing shows that the unit, whose performance is not currently tracked in Goldman’s quarterly reporting, has been a persistent drain on the bank and has seriously impacted its bottom line.

In total, since the start of 2020 through to the end of September, the unit’s pretax losses added up to $3 billion. This will increase to $4 billion in losses over three years once the latest quarter is factored in.

A deep dive into the filing from Bloomberg noted that the transaction-banking business is “probably the only profitable element”. The report cites sources familiar to the numbers who claim that the division’s $1 billion pretax loss for 2021 was mostly tied to the Apple Card, with $2 billion in 2022 coming from Apple Card and instalment-lending platform GreenSky.

While this consumer-oriented unit was supposed to break even by the end of 2022, Bloomberg’s sources say that executives in the division now are expecting that achievement in 2025.

As it looks to protect its bottom line, Goldman Sachs has begun one of its biggest rounds of job cuts ever. The company is looking to cut around 3,200 staff this year.

    Share Story:

Recent Stories


Data trust in the AI era: Building customer confidence through responsible banking
In the second episode of FStech’s three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech examines the critical relationship between data trust, transparency, and responsible AI implementation in financial services.

Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Building unshakeable operational resilience in financial services
In today's rapidly evolving financial landscape, operational resilience has become a critical focus for institutions worldwide. As regulatory requirements grow more complex and cyber threats, particularly ransomware, become increasingly sophisticated, financial services providers must adapt and strengthen their defences. The intersection of compliance, technology, and security presents both challenges and opportunities.

Unleashing generative AI: A force multiplier for financial crime teams
This FStech webinar, sponsored by NICE Actimize sees industry experts examine the revolutionary impact of generative AI on financial crime operations, and provides actionable insights to enhance your compliance strategies.