Goldman Sachs Group Inc has announced that it is considering the sale of Greensky, its fintech business that facilitates home improvement loans to consumers.
The announcement comes as part of Goldman’s efforts to scale down its retail ambitions and shift its focus to other strategic priorities.
Goldman had acquired Greensky in September 2021 in a $2.24 billion stock deal, with the expectation of significant growth by combining its products with those offered by its Marcus digital bank. However, in a recent earnings call, Goldman CEO David Solomon stated that Greensky is a good business that is performing well, but the bank may not be the best long-term holder of the business.
Goldman’s decision to sell Greensky comes after the bank booked a $470 million loss on the sale of some Marcus loans, which dragged down its first-quarter results. The bank had previously announced its intentions to sell parts of Marcus at an investor day in February.
Despite the losses, Goldman’s newly-formed Platform Solutions unit, which includes Greensky, posted revenue of $564 million in the first quarter, more than doubling from a year earlier. However, it also posted a net loss of $248 million as it set aside more money to cover losses from credit cards.
Goldman’s move to sell Greensky is a reflection of the bank’s efforts to focus on its core businesses and reduce its exposure to the consumer business. While Greensky is a valuable asset, Goldman has decided that it may be better served in the hands of another company that is better suited to its long-term growth prospects.
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