Goldman Sachs (GS.N) reported its first revenue decline in two years, driven by mounting losses from the Apple Card partnership that has cost the bank over 3 billion.
The losses highlight risks for traditional banks entering consumer credit markets without sufficient expertise in retail lending operations.
Key Takeaways
- Apple Card losses contributed to Goldman’s first revenue drop since 2022
- Platform Solutions division lost 3.03 billion over nearly three years
- Bank reduced credit loss provisions by 2.48 billion after partnership changes
Market Context and Performance
Goldman Sachs joins other major banks facing headwinds in consumer lending, though its Apple Card exposure represents an outsized risk compared to peers like JPMorgan Chase (JPM.N) and Bank of America (BAC.N). The investment bank’s consumer credit division lost 1.2 billion in nine months during 2022, primarily due to the Apple Card partnership 1.
The bank’s Platform Solutions division, which houses the Apple Card business, has accumulated 3.03 billion in losses over nearly three years of operations 2. This represents a significant drag on Goldman’s traditionally strong investment banking and trading revenues.
Apple Card Partnership Challenges
The Apple Card program suffered from higher-than-normal exposure to subprime borrowers, forcing Goldman to set aside more revenue for potential losses 3. The partnership’s structure created operational challenges for Goldman, which lacked extensive experience in mass-market consumer lending.
Despite the substantial losses, Goldman’s decision to modify or exit portions of the Apple Card business led to a 2.48 billion reduction in provisions for credit losses 4. This suggests the bank is taking steps to limit future exposure to the problematic partnership.
Industry Implications
The Apple Card losses underscore the difficulties traditional investment banks face when expanding into consumer credit markets. Goldman’s experience serves as a cautionary tale for other investment banks considering similar partnerships with technology companies.
The partnership’s unraveling also raises questions about Apple’s strategy for financial services offerings and whether the tech giant will seek alternative banking partners for its credit card program.
Financial Impact and Outlook
Beyond the Apple Card losses, Goldman’s Platform Solutions division has consistently underperformed expectations since launch. The 667 million loss reported in July 2023 added to the mounting costs of the consumer banking experiment 5.
Analysts view Goldman’s pullback from consumer lending as a necessary step to refocus on its core investment banking and wealth management businesses, where the firm maintains stronger competitive advantages and higher profit margins.
Not investment advice. For informational purposes only.
References
1(Jan 13, 2023). “Goldman Sachs lost 1.2 billion in 2022 mostly because of Apple Card”. AppleInsider. Retrieved January 15, 2026.
2(Jan 14, 2023). “Apple Card Has Cost Goldman Sachs Over 1 Billion in Losses”. PC Mag UK. Retrieved January 15, 2026.
3(1 day ago). “Behind the Unraveling of Apple’s Credit-Card Partnership”. Reddit. Retrieved January 15, 2026.
4“Goldman Sachs’ Revenue Fell for First Time in 2 Years”. Moomoo. Retrieved January 15, 2026.
5(Jul 19, 2023). “Apple Card contributes to another 667 million loss for Goldman”. 9to5Mac. Retrieved January 15, 2026.