Goldman Sachs Group Inc (NYSE: GS) just warned of a notable hit to its third-quarter earnings. Its shares are down nearly 1.0% at writing.
Goldman Sachs has agreed to sell Greensky
The investment bank has signed an agreement with a group of institutional investors to sell Greensky – a deal that is expected to lower its per-share earnings in the third quarter by 19 cents, as per the press release on Wednesday.
Goldman Sachs did not, however, reveal what the consortium led by Sixth Street is paying for its fintech lending platform and associated loan assets. According to David Solomon – its Chief Executive:
This transaction demonstrates our continued progress in narrowing the focus of our consumer business.
Shares of the financial services behemoth are down 17% versus their year-to-date high at writing.
Goldman Sachs will report earnings next week
Goldman Sachs is scheduled to report its third-quarter financial results on the coming Tuesday. So far, it was expected to earn $5.61 a share in the three months through September versus $8.25 per share a year ago.
The investment bank had spent $1.7 billion on buying Greensky last year. The announcement is part of its broader commitment to moving away from consumer finance. At one point this year, the New York listed firm even wanted to hand over its Apple Card operations to American Express. Watch here: https://www.youtube.com/embed/xweFDbjIwV8?feature=oembed
Goldman Sachs has recently unloaded a wealth management unit to Creative Planning as well (find out more). Wall Street currently has a consensus “overweight” rating on Goldman Sachs Group Inc.
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