Apple Card has cost Goldman Sachs more than $1 billion in losses

Goldman Sachs has lost $3.03 billion in nearly three years to its group of companies, called Platform Solutions, which houses Apple Card. That reports Bloomberg(Opens in a new window) that the credit card was a significant part of those losses.

In a regulatory filing released Friday, Goldman Sachs revealed that from the beginning of 2020 to the end of September 2022, Platform Solutions’ pre-tax losses were $3.03 billion.

Knowledgeable sources told Bloomberg that when last quarter numbers are added, Platform Solutions’ is on track for a total loss of $4 billion over three years, with Apple Card accounting for more than $1 billion of that figure.

Sachs reported a pretax loss for its credit card division of more than $1.2 billion for the first nine months of 2022 and a pretax loss of $1 billion for 2021. Sources told Bloomberg that the losses were “largely related to the Apple Card “. Meanwhile, it was also reported that of the approximately $2 billion in total losses in 2022, most will come from the Apple Card and installment lending fintech platform GreenSky.

The losses stem from the massive investment Goldman Sachs has funneled into Apple Card, estimated at somewhere between $1 and 3 billion, 9to5Mac reports.(Opens in a new window). The bank had hoped that Platform Solutions would break even in 2022, but now that goal has been pushed back to 2025.

Amidst the losses, it has been reported(Opens in a new window) that Goldman Sachs is also willing to cut 3,200 jobs, most of which will come from its trading and banking divisions.

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And all of this comes as The Consumer Financial Protection Bureau (CFPB) investigates Goldman Sachs’ card business(Opens in a new window). According to a regulatory filing filed last August, the CFPB is looking into “applying refunds, crediting non-conforming payments, resolution of billing errors, advertising, and reporting to credit bureaus.”

As CNBC reported(Opens in a new window)those payment issues were due to the rapid use of the Apple Card, which caused Goldman Sachs to struggle with related customer service issues.

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