Goldman Sachs (GS) is poised to enter an ‘exploratory phase’ around a possible sale of its FinTech unit GreenSky after the investment bank reported a $470 million loss on the partial sale of its consumer loan portfolio.

GS acquired GreenSky last March in a takeover deal valued at around $2 billion, with the bank’s chief executive David Solomon stating that it would become a “key component of its offering”.

According to Reuters, Solomon recently told analysts that while GreenSky is performing well – with first quarter originations in its core home improvement loans up over 25 per cent year-over-year – Goldman may not be the best long-term holder of the business due to its “current strategic priorities”.

News of a possible sale follow recent first quarter losses reported by the bank. In the three months to March 31, GS recorded a five per cent decline in sales to $12.2 billion, with net earnings falling by 19 per cent to $3.9 billion.

Of the results, Solomon said: “The events of the first quarter acted as another real-life stress test, demonstrating the resilience of Goldman Sachs,” adding that the bank was operating from “a position of strength”.

During a turbulent few months in the global banking sector, which began with the collapse of Silicon Valley Bank and the ensuing takeover of crises-stricken Credit Suisse by rival UBS, this potential sale from GS could indicate further consolidation in the market as banks look to cut costs.

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