Goldman Sachs has announced plans to sell its consumer lending platform, GreenSky, and the associated loans to a consortium led by Sixth Street Partners in the first quarter of 2024. The transaction is expected to negatively impact Goldman's third quarter 2023 earnings by approximately 19 cents per share. This aligns with an InvestingPro Tip, which indicates a declining trend in Goldman Sachs' earnings per share.
The consortium buying GreenSky consists of several significant financial entities, including KKR & Co., Bayview Asset Management, and CardWorks. These firms are financially supported by PIMCO through asset acquisition and CPP Investments providing strategic financing. Until the deal's closure, Goldman Sachs will continue to manage the platform.
This planned divestment aligns with Goldman Sachs' restructuring initiative to focus on its core areas. CEO David Solomon has indicated that this move is part of a broader strategy for the banking giant. According to InvestingPro data, Goldman Sachs has a market cap of 107.58B USD and a P/E ratio of 13.04, indicating a healthy financial status despite the planned divestment.
Sixth Street CEO Alan Waxman has expressed his intent to maintain GreenSky's growth trajectory following the acquisition. Waxman plans to leverage technological advancements and enhance user experiences to sustain this growth.
Despite the sale, Goldman Sachs has shown strong financial resilience. As per InvestingPro Tips, the company has raised its dividend for 11 consecutive years and maintained dividend payments for 25 consecutive years. This is further corroborated by InvestingPro data, which shows a dividend yield of 3.51% and a dividend growth of 37.5% in the last twelve months leading up to Q2 2023.
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