Goldman Sachs’ new fintech unit racked up staggering £2.5bn loss since 2020

Goldman Sachs’ new financial technology unit, Platform Solutions, has lost $3 billion (£2.5 billion) since 2020 according to earnings reports that the bank re-published on Friday.

Platform Solutions — a new unit which includes fintech and a few of Goldman’s consumer products such as Apple Card or Greensky — was announced in October as part of restructuring plans.

Investors can now assess the unit’s performance for the new year by Goldman restating earnings reports that date back to 2020. This reflects its restructuring plans.

The unit reported a loss in the first nine month of 2022. Its losses were increasing each quarter.

It lost $1billion in 2021, while it lost $783m in 2020. Bloomberg reported that Platform Solutions’ total losses since 2020 will exceed $4 billion, including fourth quarter results.

This is the most comprehensive set of information available about the new unit. Although Goldman admitted previously that it was taking losses, it has not published any profit and loss figures.

These numbers will raise concerns about Goldman’s future, which has been aiming at diversifying its operations from its traditional strengths of trading and investment banking.

Marcus, the losing consumer banking arm, was not revealed. It was consolidated into its asset- and wealth management business as part of October’s restructuring plans. Goldman Sachs’ attempt to enter retail banking has not yielded significant returns.

The bank begins a huge cost-cutting campaign. This week Cut 3,200 jobsOne of the most popular repeat programs in its history.

Redundancies and restructuring reflect the desire of CEO David Solomon to secure a higher valuation. Many investors remain concerned about the bank’s main source of income, investment banking and trading.