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Live news: Goldman Sachs warns of earnings hit after agreeing deal to sell lender GreenSky

Goldman Sachs has struck a deal to sell its home improvement lending platform GreenSky to a private equity-led consortium in a deal that the investment bank warned will hit its third-quarter earnings.

The sale is a key step in Goldman’s efforts to pare back an ill-fated expansion into retail banking, which included the 2022 acquisition of GreenSky for $1.7bn.

“This transaction demonstrates our continued progress in narrowing the focus of our consumer business,” Goldman chief executive David Solomon said in a statement on Wednesday, but did not disclose a sale price.

Goldman said it would sell GreenSky and its loan book to a consortium led by Sixth Street, KKR, Bayview Asset Management and fintech Cardworks. 

Bond manager Pimco will be participating in the deal by purchasing some GreenSky assets, while Canada’s largest pension fund CPP Investments will provide financing to the deal.

Goldman said it expected the sale would result in a hit of 19 cents to its earnings per share in its upcoming third-quarter results.

Goldman had already recorded a $504mn writedown of GreenSky as it began marketing the fintech platform to private equity buyers.

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