Apple Explores Alternatives to Goldman Sachs
Goldman Sachs’ Apple Card partnership with Apple might conclude sooner than expected. Although the partnership is officially contracted to run until 2030, Goldman Sachs CEO David Solomon suggested it could end earlier during the company’s quarterly earnings call on January 15.
Solomon noted the partnership’s strain on the firm’s Platform Solutions division, which has adversely impacted Goldman Sachs’ return on equity (ROE) by 75 to 100 basis points. This revelation comes amid reports that Apple is engaging in private talks with Barclays and credit card issuer Synchrony Financial to replace Goldman Sachs. While Reuters cited unnamed sources for this development, neither Apple nor the prospective partners have publicly commented on the matter.
Goldman Sachs Refines Focus Amid Challenges
Despite potential changes with Apple, Goldman Sachs is narrowing its strategic priorities to strengthen its core businesses. In the fourth quarter, the firm closed its GreenSky platform sale, transitioned the General Motors credit card program, and divested its seller financing loan portfolio. These moves align with a broader strategy to streamline operations and enhance profitability.
The firm reported notable gains in its quarterly results, with net revenues climbing across all divisions. Global Banking & Markets led the surge with a 33% year-over-year increase, while Asset & Wealth Management and Platform Solutions saw respective growth of 8% and 16%. According to Solomon, rising CEO confidence and a favorable regulatory climate have fueled a resurgence in deal-making activity, positioning Goldman Sachs to capitalize on emerging opportunities in 2025.
Strong 2024 Performance Sets Positive Momentum
For the full year 2024, Goldman Sachs experienced a 7% rise in total loans, alongside a notable improvement in its annualized net charge-off rate, which dropped to 0.8%. The firm attributed its success in Asset & Wealth Management to higher deposit balances and increased gains from investments in public equities. Meanwhile, Platform Solutions benefited from elevated credit card and deposit balances.
Goldman Sachs emphasized its resilience in generating revenue across diverse market conditions. Solomon pointed to the firm’s diversified franchise as a key factor in its ability to navigate shifting economic environments effectively.
While Goldman Sachs continues to streamline its operations and deliver robust financial results, the uncertainty surrounding its partnership with Apple signals potential shifts in its Platform Solutions division. As discussions with Barclays and Synchrony unfold, the future of the Apple Card partnership remains a focal point for the financial industry.
