Goldman Sachs: Marcus deposits $ 97 billion
Echoing trends seen on Wall Street, the fourth quarter results of Goldman Sachs show huge earnings gains from asset trading. But the results also underscored the continued push towards personal banking, and in particular online banking.
In terms of results, the company said numbers that far exceeded expectations. Earnings per share were $ 12.08, while the consensus was $ 7.47. Revenues of $ 11.7 billion were more than the estimated $ 10 billion.
Digging deeper, and echoing what has been seen on the streets, income from stock trading rose 40% year-on-year in the fourth quarter to $ 2.3 billion.
Additional documents reported by the company, credit card loans were $ 4 billion, up from $ 3 billion in the third quarter and $ 2 billion the year before. Installment loans stood at $ 4 billion, roughly unchanged from the third quarter of this year. The company said the net consumer charge rate of 4.2% was down 200 basis points year over year.
In details on Marcus, the company said deposits at the end of the last quarter were $ 97 billion, and Goldman is targeting at least $ 125 billion in deposits by 2024. Loans linked to its cards are expected to reach at least $ 20 billion by 2024, as the bank noted in a update of its strategic plan.
Asked on the conference call with analysts about Marcus’ track record and competitive landscape, management said FinTechs such as Chime have a relatively narrower reach in their offerings than Goldman; CEO David Solomon argued that Goldman has a “more integrated offering” than its competitors. Building a proprietary platform, along with Goldman’s history of strong corporate relationships, opens up the possibility of partnerships for building consumer-centric digital initiatives.
“We continue to receive feedback that the cutting-edge product platform and digital applications that we have are really great across the board,” Solomon said on the call, adding, “we’ll keep going. forward. with this long term strategy.
As noted in this space late last year, Goldman Sachs would have tested a wealth management app for the masses. This effort, in beta testing, was known as Marcus Invest, and Goldman is said to have considered a rollout in 2021.
Management said on the fourth quarter earnings call that in the fourth quarter it had taken an allowance for credit losses of approximately $ 293 million; in that number is a release of around $ 200 million spurred by a better macro environment.
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