Goldman Sachs considers partial divestment of wealth business
Also Read: SoftBank’s Arm files for IPO that is set to be 2023’s biggest Additionally, Goldman Sachs is also pursuing the sale of its fintech business, GreenSky, and has sold the bulk of its unsecured consumer loans after it halted this category of lending last year, the Reuters report added. The shift in the bank’s strategy comes after CEO David Solomon restructured the company into three distinct units last year.
He also had scaled back ambitions for its consumer business after it lost $3 billion in the last three years. Goldman Sachs’ profit plunged 60% in the second quarter dragged by writedowns on its consumer businesses and real estate investments.
Its wealth business has also been a laggard and underperforming against rivals. The bank plans to grow its core wealth business serving ultra-high-net-worth clients, reiterating aspirations from its investor day in late February.
Other core wealth businesses include workplace financial planning through Ayco and Marcus savings, Goldman said. On Monday, Goldman Sachs share price ended 0.88% lower at $322.06.
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