Goldman Sachs’ partnership with Apple that manages the Apple Card may end before 2030, Goldman Sachs CEO David Solomon said Wednesday (Jan. 15).
“We have a contract with Apple to run that partnership until 2030, although there is some possibility that it won’t continue until that time frame,” Solomon said during the company’s quarterly earnings call.
The Apple Card has contributed to Goldman Sachs’ Platform Solutions business being a 75- to 100-basis point drag on the firm’s overall return on equity (ROE), Solomon said.
During the fourth quarter, Goldman Sachs continued to narrow its strategic focus while making gains in its core businesses, according to a presentation released Wednesday in conjunction with the call.
The company’s efforts to narrow its strategic focus included closing on the sale of its GreenSky platform and associated loan assets, signing an agreement to transition the General Motors (GM) credit card program and selling its seller financing loan portfolio, per the presentation.
Goldman Sachs earned higher net revenues across all segments in the fourth quarter, with year-over-year gains of 33% in Global Banking & Markets, 8% in Asset & Wealth Management and 16% in Platform Solutions.
The presentation attributed the growth in part to higher net revenues in equity underwriting and debt underwriting and in intermediation and financing in the Global Banking & Markets business.
“There has been a meaningful shift in CEO confidence, particularly following the results of the U.S. election,” Solomon said when discussing this business. “Additionally, there is a significant backlog from sponsors and an overall increased appetite for deal-making supported by an improving regulatory backdrop. The combination of these conditions should spur further activity in 2025.”
In Asset & Wealth Management, growth was driven in part by higher average assets under supervision, higher deposit balances and higher mark-to-market net gains from investments in public equities, according to the presentation.
“Given our diversified franchise, we have consistently demonstrated our ability to generate upside across different market environments, which further highlights the revenue-generating power of our firm,” Solomon said.
At Platform Solutions, higher average credit card balances and deposit balances contributed to the growth in revenue, per the presentation.
For the full year 2024, Goldman Sachs saw its total loans increase 7%. Its annualized net charge-off rate for the year was 0.8%, a figure that was down 10 basis points year over year. The rate was 0.1% for wholesale loans and 7.1% for consumer loans.
