Second-quarter profit fell 58% to $1.22 billion, or $3.08 a share, due to steep declines in trading and investment banking and losses related to GreenSky and legacy investments that shaved about $3.95 from earnings a share. Revenue fell 8% to $10.9 billion.
Goldman Sachs on Wednesday cut its economic growth forecast for 2023, citing a drop in lending by small and medium-sized banks amid turmoil in the broader financial system.
The change in tone this week came as a steady flow of data has shown the economy continued to run hot in January. Despite high-profile layoffs at big technology firms like Meta and Microsoft, employers in the United States continued to hire at a rapid clip, consumers kept spending and prices continued to rise briskly at the start of the year across an array of goods and services.
Goldman Sachs has dropped plans to develop a Goldman-branded credit card for retail customers, another casualty of the firm’s strategic pivot.
Goldman Sachs CEO David Solomon said Tuesday that the US economy appears more likely to avoid a deep recession this year.
