Wednesday, October 8, 2025

Latest

Goldman Sachs Posts Over $1 Billion in Apple Card Losses from January to September 2022

Goldman Sachs (NYSE: GS) lost $3.03 billion from January 2020 to September 2022 on its Platform Solutions division, the collection of businesses that includes Apple Card, according to filings submitted on Friday. 

Bloomberg reports that $1.2 billion in pretax losses from just the first three quarters of 2022 are attributed to the digital credit card partnership with Apple, Inc (Nasdaq: AAPL). The losses are believed to be largely due to loan-loss provisions for the Apple Card. These are the funds that a bank allots to cover loans — or in this case, credit card debt — that it deems are unlikely to be repaid.

When it was launched in 2019, the Apple Card was the bank’s golden entry into the consumer industry. CEO David Solomon called it “the most successful credit launch ever.” The original forecast was that the company’s consumer division as a whole would break even by the end of 2022, but that forecast has been delayed to 2025, with a final target yet to be set.

The card is offered with an array of ‘no fees’ benefits, e.g. no late fees, annual fees, international fees, and over-limit fees, further affecting the cash flow with fewer ways to pump up revenue. And while it’s great news for consumers, its “competitive” interest rate has also contributed to the deficit.

The New York-based firm, led by Solomon, is seeking ways to cut costs elsewhere. The firm is joining the trend of mass layoffs seen in major companies since 2022. They have moved to cut 3,200 jobs, one of its biggest rounds of cuts ever, in the second week of January. About one-third of the cuts will impact its core trading and banking units.


Information for this story was found via Bloomberg, Phone Arena, and the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Views expressed within are solely that of the author. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Goldman Sachs Aggressively Upgrades Fed Rate Hike Forecast Following Jaw-Dropping CPI Print

Following what has been yet another eye-watering CPI print showing consumer prices at the highest...

Monday, February 14, 2022, 11:14:00 AM

Goldman Sachs Projects Strong US Economy In 2021, But Notes Significant Obstacles Ahead

As the US continues to battle its second, significantly more severe wave of the coronavirus...

Friday, November 13, 2020, 12:06:38 PM

Goldman Sachs Under Investigation Over SVB Collapse

The Federal Reserve and the Securities and Exchange Commission are currently probing the involvement of...

Saturday, June 17, 2023, 07:18:00 AM

Copper, Gold To See ‘Immediate Price Boost’ From Potential Rate Cuts

Analysts at Goldman Sachs are projecting potential interest rate cuts by the US Federal Reserve...

Thursday, February 22, 2024, 02:14:00 PM

Customers Report Difficulties Accessing Funds From Apple’s New Savings Account

Apple (NASDAQ: AAPL) customers are encountering difficulties with accessing their funds from the company’s savings...

Friday, June 2, 2023, 02:19:00 PM