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Goldman Sachs fintech unit makes $1.2bn loss in nine months

Goldman Sachs fintech unit makes $1.2bn loss in nine months

Goldman Sachs' newly-created "Platform Solutions" unit, which houses the firm's fintech, credit card and transaction banking operations, made a pre-tax loss of $1.2 billion in the first nine months of 2022.

The division, which was created as part of a major reorganisation at the bank last year, also reported a $1.05 billion loss for 2021 and $783 million for 2020.

While it was widely known that the fintech and consumer businesses were loss-making, this is the first time that Goldman has provided details on the cost of its move into the sector.

The October reorganisation marked a retreat from the consumer market, with the digital unit Marcus hived off from the rest of the operations and folded into an asset and wealth management division.

In contrast to the Platform Solutions unit, the investment banking and trading division made a pre-tax profit of $11.9 billion for the first nine months of the year.

Earlier this week, Goldman confirmed that it is axing 3200 employees, about 6.5% of its workforce.

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