said Wednesday that it agreed to sell its fintech lending platform to a group of investors led by private equity firm Sixth Street.
The deal, which includes a book of loans created by Goldman, will result in a 19 cents per share reduction to third-quarter earnings, Goldman said in the . The New York-based bank is scheduled to disclose results Tuesday.
The move is the latest step CEO has taken to retrench from his into retail banking. Under Solomon's direction, Goldman GreenSky last year for $1.7 billion, overruling deputies who felt the home improvement lender was a poor fit. Months later, Solomon decided to for the business amid his broader move away from consumer finance. Goldman also sold a wealth management and was reportedly in talks to offload its Apple Card operations.
"This transaction demonstrates our continued progress in narrowing the focus of our consumer business," Solomon said in the release.
The bank is now focused on its core strengths in investment banking and trading and its push to grow asset and wealth management fees, he added.
Goldman will continue to operate GreenSky until the sale closes in the first quarter of 2024, the bank said.
The expected hit to third-quarter earnings includes expenses tied to a write down of GreenSky intangibles, as well as marks on the loan portfolio and higher taxes, offset by the release of loan reserves tied to the transaction, Goldman said.
It follows a $504 million second-quarter on GreenSky disclosed in July.
The Sixth Street group includes funds managed by KKR, Bayview Asset Management and CardWorks, according to the release.
Private equity groups have played key roles in several of the banking industry's asset divestitures since the start of the year, providing for the PacWest merger with Banc of California, for example.
Read more:
