The money house showed a profit of 1.07 billion dollars for the months of April to June.
(Photo: Reuters)
new York Goldman Sachs’ quarterly profit fell sharply due to write-downs in the real estate sector and sluggish business in investment banking. The money house reported a profit of $1.07 billion on Wednesday for the months of April through June – less than half of the $2.79 billion in the same period last year.
Write-downs on the GreenSky platform alone, which brokers consumer loans for home renovations, amounted to 504 million dollars. Goldman bought the fintech company for $2.24 billion in stock almost two years ago. As recently as April, bank chief David Solomon said GreenSky was a good deal but Goldman might not be the best owner over the long term.
Goldman had to write off a further 485 million dollars on consolidated real estate investments, as the leading US investment bank further announced. Core business fee income fell by a fifth to $1.43 billion. The slump in the mergers business also messed up the quarter for rivals Morgan Stanley and Citi.