Goldman Sachs' Platform Solutions Surges to $989M in 2022, Eyes Profit by 2025
Goldman Sachs' Platform Solutions division has seen a significant turnaround in its financial performance. Despite initial losses, the division's net revenues have surged to $989 million in the first nine months of 2022, up from $334 million in 2020. However, this growth has come with increased operating expenses.
The division's operating expenses have roughly doubled, reaching $1.26 billion in 2022 through Sept. 30, compared to $630 million in 2020. Meanwhile, the provision for credit losses related to Platform Services businesses has also increased, from $487 million in 2020 to $942 million in the first nine months of 2022.
Goldman Sachs has reframed its earnings along new divisions, with the Platform Solutions segment losing over $3 billion since 2020. The consumer-banking unit, Marcus, was split between two new divisions in October 2022. The bank has begun a presumed 3,200-person cull in the Marcus unit this week, with details of the job cuts expected to be revealed at its February investor day.
Despite the challenges, Platform Solutions executives now forecast profitability by 2025. The division's net revenues have indeed shown a remarkable increase, jumping from $334 million in 2020 to $989 million in the first nine months of 2022. However, the road to profitability may involve further restructuring and cost-cutting measures.
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