Goldman Sachs is trimming its consumer business in the third quarter, turning its attention to bread-and-butter segments including wealth management, dealmaking and trading. 

“We have been pretty clear with our messaging that we continue to narrow our consumer footprint,” Chief Executive David Solomon said today during the bank’s third-quarter earnings call.

In its most recent move, the $543 billion Goldman Sachs said it would jettison General Motors’ credit card portfolio from its books. Barclays signed an agreement to issue GM cards, according to an Oct. 14 release from GM. 

The deal is expected to close in Q3 2025, Chief Financial Officer Denis Coleman said during the earnings call, adding that Goldman has been losing $50 million to $60 million per quarter on the GM card offering. 

BIGGER PICTURE: Total Q3 operating expense for Goldman Sachs was $8.3 billion, down 8% year over year, driven by a write-down of intangibles related to the sale of consumer home improvement lending arm GreenSky and GM’s credit card portfolio, according to the earnings release. 

Goldman Sachs has been moving away from consumer banking in the past few years with the following divestments:  

• The 2023 sale of GreenSky to investment banking behemoth Sixth Street for an undisclosed amount; and 

• This year’s sale of its retail digital investing arm, Marcus, to fintech Betterment for an undisclosed amount. 

Goldman’s Apple credit card portfolio may also be on the block, with JPMorgan being a frontrunner in acquiring it, according to a September Bloomberg report. 

The bank reported that consumer business lines operations revenue dropped by 2% year over year to $391 million in Q3. 

BY THE NUMBERS: In Q3, Goldman reported: 

• Net revenues of $12.7 billion, up 7% YoY; 

• Headcount of 46,400, up 1% YoY; 

• Tech and communication spend of $498 million, up 6% YoY; 

• Asset and wealth management revenue of $3.8 billion, up 16% YoY; and 

• Efficiency ratio of 65.5%, compared to 64.3% in Q3 2023. 

MARKET REACTION: Shares of Goldman Sachs (NYSE: GS) were down 0.09% from market open to $522.2 as of market close today. Goldman has a market capitalization of $164 billion. 

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