Back in January, we learned that Apple Card has been responsible for
more than a billion dollars in losses for Goldman Sachs in recent years. Now amid rumors that
Apple is looking to leave Goldman for Amex, the former has reported its Q2 earnings and the results aren’t pretty.
The exact amount of losses Goldman Sachs has seen with its Apple partnership isn’t quite clear, but since 2020 it’s somewhere in the ballpark of $1-3 billion.
Earlier this year we learned those consumer banking losses have come mostly from Apple Card and a Goldman acquisition called GreenSky.
As for why Goldman is seeing such a tough time with its nascent consumer banking offerings, the company says the primary cause is loan-loss provisions which are when a bank has to compensate for greater than expected unpaid credit card balances and loans.