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Goldman Sachs’ Misses the Mark

Goldman Sachs’ Misses the Mark

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  • Goldman Sachs reported its Q1 earnings, which showed a lower revenue than what analysts had predicted, mainly due to a $470 million loss linked to the sale of consumer loans. The bank's profit decreased by 18% to $3.23 billion, or $8.79 per share, however, it exceeded Refinitiv's survey estimates. Revenue dropped by 5% to $12.22 billion, mainly due to the consumer loan loss and less-than-anticipated bond trading results.
  • Goldman Sachs' consumer banking venture had a negative impact on its quarterly performance. The bank reported a loss of around $470 million from the sale of part of its Marcus loans portfolio, and the remaining loans were classified as "held for sale." The CEO announced in February that the company was considering strategic options for its consumer platforms division, including selling off its GreenSky business or divesting its credit-card partnerships with Apple and other companies.

Why it matters

Goldman Sachs heavily relies on trading and investment banking for its revenue, and there were concerns that the March financial turmoil would impact its results. While JPMorgan Chase and Citigroup exceeded expectations due to strong fixed-income trading, Goldman Sachs' traders didn't do as well. Overall, larger banks like JPMorgan Chase and Bank of America outperformed smaller competitors this earnings season.


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