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Goldman Sachs: Consumer Business Losses Estimated at $1.2 Billion - Bloomberg

Stock Markets Jun 28, 2022 08:40
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By Senad Karaahmetovic

Goldman Sachs' (NYSE:GS) internal projections show the banking giant is set to lose over $1.2 billion this year, Bloomberg reports.

The number could grow if the company takes more lending-loss provisions. Back in 2020, Goldman’s Marcus venture lost about $1 billion, with the bank saying things should go better from there.

“We would hope and expect that Goldman holds the managers’ feet to the fire in the consumer operation,” said Mike Mayo, an analyst at Wells Fargo & Co. (NYSE:WFC).

High losses in the consumer business unit “could have additional scrutiny if legacy businesses don’t perform as well as in the past couple of years,” Mayo added.

Other analysts note that investors aren’t really in love with Goldman’s consumer push.

“I’ve seen discussions where investors have expressed their distaste and frustration about the level of attention paid to the consumer business,” he said. “They don’t see that as a value-enhancing proposition.”

Yesterday, the banking giant announced plans to increase its common stock dividend from $2.00 to $2.50 per share after passing the stress test.

Goldman Sachs: Consumer Business Losses Estimated at $1.2 Billion - Bloomberg
 

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