Goldman Sachs announces possible end of partnership with Apple

Goldman Sachs’ partnership with Apple, which manages the Apple Card, could end before 2030, David Solomon, CEO of Goldman Sachs, said Wednesday, January 15.

“We have a contract with Apple to manage this partnership through 2030, although it may not continue before that time,” Solomon said during the company’s quarterly earnings conference call.

The Apple Card helped Goldman Sachs’ Platform Solutions business weigh 75 to 100 basis points on the company’s overall return on equity (ROE), Solomon said.

During the fourth quarter, Goldman Sachs continued to refine its strategic direction while making gains in its core businesses, according to a presentation released Wednesday on the call.

The company’s efforts to refine its strategic direction included completing the sale of its GreenSky platform and associated lending assets, signing an agreement to transition the General Motors (GM) credit card program and sale of its financing loan portfolio to sellers, according to the presentation.

Goldman Sachs reported higher net revenues across all segments in the fourth quarter, with year-over-year gains of 33% in global banking and markets, 8% in asset management and heritage and 16% in platform solutions.

The presentation attributes this growth in part to increased net revenues from equity and debt underwriting as well as intermediation and financing in the World Banking and Markets sector.

“There has been a significant shift in CEO confidence, particularly following the U.S. election results,” Solomon said of the case. “Additionally, there is a significant backlog from sponsors and an overall increased appetite for deal-making, supported by an improving regulatory environment. The combination of these conditions should stimulate more activity in 2025.”

In asset and wealth management, growth was driven in part by higher average assets under supervision, higher deposit balances and higher net mark-to-market gains from public equity investments, according to the presentation.

“Given our diversified business, we have consistently demonstrated our ability to generate gains in different market environments, further underscoring the revenue generation capability of our business,” Solomon said.

At Platform Solutions, higher average credit card balances and deposit balances contributed to revenue growth, according to the presentation.

For the full year 2024, Goldman Sachs saw its total loans increase by 7%. Its annualized net charge-off rate for the year was 0.8%, down 10 basis points year-over-year. The rate was 0.1% for wholesale loans and 7.1% for consumer loans.