In an effort to attract investors, Goldman Sachs Group executives had announced a promising outlook for their Main Street business. Executives told investors that the consumer business would break even in 2022.
Fast forward, the consumer business will continue to bleed money. Internal projections show the business losses accelerating by more than $1.2 billion this year. According to AdvisorHub, those familiar with the matter have shared that the loss may increase if the economy forces the firm to take more lending-loss provisions.
That said, Goldman sees the cash burn as a necessary investment to grow the business. Furthermore, Goldman has managed to exceed most of the unit's other metrics. For example, it has secured 13 million customers and grown deposits to more than $100 billion.
However, investors are more interested in profitability than growth metrics. According to Advisor Hub, investors have started complaining about the amount of attention placed on the consumer business.
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