Goldman Sachs Hints at Early Exit from Apple Card Partnership
Goldman Sachs CEO David Solomon hinted at an early exit from the company's partnership with Apple for the Apple Card during an earnings call today.In response to a question from Morgan Stanley's Betsy Graseck, Solomon acknowledged that the Apple Card is a significant part of Goldman's Platform Solutions unit, which has been a financial drag on the firm, bringing down return on equity by 75 to 100 basis points in 2024. Although the performance of the Apple Card is improving, he also said there is a possibility the partnership might not continue until the end of its term in 2030.---Betsy Graseck (Morgan Stanley)Hi. I did just want to follow up on one thing here regarding the point you were making on Platform Solutions. It's a drag right now, 75 bps to 100 bps on ROE, but '25 and '26, that will improve. So could you just step us through -- I mean, we know what your plans are for Platform Solutions. But I'm wondering what's happening in '25 and '26 that will drive the reduction of the drag in this year and next, if you could speak through that.Continue ReadingShare Article:Facebook, Twitter, LinkedIn, Reddit, EmailFollow iClarified:Facebook, Twitter, LinkedIn, Newsletter, App Store, YouTube
Goldman Sachs CEO David Solomon hinted at an early exit from the company's partnership with Apple for the Apple Card during an earnings call today.
In response to a question from Morgan Stanley's Betsy Graseck, Solomon acknowledged that the Apple Card is a significant part of Goldman's Platform Solutions unit, which has been a financial drag on the firm, bringing down return on equity by 75 to 100 basis points in 2024. Although the performance of the Apple Card is improving, he also said there is a possibility the partnership might not continue until the end of its term in 2030.
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Betsy Graseck (Morgan Stanley)
Hi. I did just want to follow up on one thing here regarding the point you were making on Platform Solutions. It's a drag right now, 75 bps to 100 bps on ROE, but '25 and '26, that will improve. So could you just step us through -- I mean, we know what your plans are for Platform Solutions. But I'm wondering what's happening in '25 and '26 that will drive the reduction of the drag in this year and next, if you could speak through that.
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In response to a question from Morgan Stanley's Betsy Graseck, Solomon acknowledged that the Apple Card is a significant part of Goldman's Platform Solutions unit, which has been a financial drag on the firm, bringing down return on equity by 75 to 100 basis points in 2024. Although the performance of the Apple Card is improving, he also said there is a possibility the partnership might not continue until the end of its term in 2030.
---
Betsy Graseck (Morgan Stanley)
Hi. I did just want to follow up on one thing here regarding the point you were making on Platform Solutions. It's a drag right now, 75 bps to 100 bps on ROE, but '25 and '26, that will improve. So could you just step us through -- I mean, we know what your plans are for Platform Solutions. But I'm wondering what's happening in '25 and '26 that will drive the reduction of the drag in this year and next, if you could speak through that.
Continue Reading
Share Article:
Facebook, Twitter, LinkedIn, Reddit, Email
Follow iClarified:
Facebook, Twitter, LinkedIn, Newsletter, App Store, YouTube
