Goldman Sachs CEO David Solomon said that the company’s partnership with Apple may end before 2030. The two companies have a contract to run the partnership until 2030, but there is some possibility that it won’t continue.
Reuters reported that Apple is in talks with Barclays and Synchrony Financial to replace Goldman Sachs as the issuer of the Apple Card. This could lead to a significant drag on Goldman Sachs’ overall return on equity (ROE).
However, despite this potential risk, Goldman Sachs saw growth in its Platform Solutions business in the fourth quarter, driven by higher average credit card balances and deposit balances. The company also narrowed its strategic focus, closing on the sale of its GreenSky platform and signing an agreement to transition the General Motors credit card program.
In Asset & Wealth Management, growth was driven by higher average assets under supervision, higher deposit balances, and higher mark-to-market net gains from investments in public equities. Goldman Sachs earned 33% more revenue in Global Banking & Markets, 8% more in Asset & Wealth Management, and 16% more in Platform Solutions compared to the previous year.
CEO Solomon attributed the growth to a shift in CEO confidence following the U.S. election results and an improving regulatory backdrop. He also mentioned that there is a significant backlog of deals and increased appetite for deal-making, which should spur further activity in 2025.
In other news, Target raised its sales guidance for the fourth quarter after record post-Thanksgiving sales. The retailer saw a 1.5% increase in comparable sales and a 2.8% increase in total sales compared to last year. Digital sales rose nearly 9% year over year, and same-day delivery via the company’s Target Circle 360 program grew by more than 30%.
Target also announced leadership changes, including the retirement of its chief stores officer and executive vice president for information technology.
Source: https://www.pymnts.com/earnings/2025/goldman-sachs-reports-possible-end-to-apple-partnership-amid-narrowing-of-strategic-focus