Goldman Sachs’ consumer credit division lost $1.2 billion in nine months last year due primarily to its Apple Card partnership.
Goldman’s collection of businesses, known as Platform Solutions, lost over $1.2 billion in pre-tax losses in the first nine months of 2022 and was driven mainly by loan-loss provisions. It was mostly tied to the Apple Card, according to Business Insider.
Previously, the only financials Goldman had disclosed in its consumer business showed $1.3 billion in losses from the start through mid-2019. However, executives of Platform Solutions believe the consumer division may break even in 2025, although that target was initially by the end of 2022.
MacDailyNews Take: Invest upfront, profit later. Much of these costs are due to marketing and the high cost of Apple card customer acquisition (roughly $350 on average per customer). Profitability will come down the road.
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Yeah that’s crazy….They’re definitely making money off of me….hehehe