Goldman Sachs: Goldman Sachs continues to suffer losses from Apple Card tie-up – Times of India

Goldman Sachs has suffered additional losses in its credit card business, mainly due to Apple card. The investment bank recently shared its financial results for Q2 2023, which shows that they are still facing challenges apple card and other portfolios.
The business platform, which also includes the Apple Card, reported revenue of $659 million, representing a 17% increase from the previous quarter and a 92% increase from the same period last year. Despite this growth, the segment reported a net loss of $672 million, primarily due to $544 million in credit loss provisions and $987 million in operating expenses.
goldman Sachs’ “platform solutions” businesses, including Apple Card, are projected to lose $3 billion by 2022. Most of the $1 billion lost in 2021 came from Apple Card, and another $2 billion in 2022 is believed to be lost from Apple Card and GreenSky.
Goldman partnered with Apple in 2019 to provide consumer loans, which included the Apple Card. Recently, both the companies announced a high-yield savings account exclusively for Apple Card users. Additionally, both companies are also offering a “pay later” service to Apple users in the US, which enables users to split purchases into four payments over six weeks without any interest or fees.
Goldman Sachs is reportedly trying to cut its partnership with AppleDespite the CEO David Solomon It was earlier reported to be the most successful credit launch ever. However, in a recent interview with CNBC, Solomon acknowledged that the company’s consumer banking services were not effectively executed.
talks with the bank American Express How about getting the Apple Credit Card and other services that the two companies offer together. As per the Wall Street Journal report, these discussions have been going on for several months and Apple is said to be aware of it.