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Goldman’s consumer push is growing fast. Deposits on Marcus more than doubled from $24b at the start of 2019 to $60b at the end, and revenues were up 41% from last year. With the increase in investments in consumer, Goldman’s still laggining behind in profitability with JPMorgan, which enjoyed a 15% ROE in 2019 versus Goldman’s 10%.
“I think there’s a strong case for Goldman to evolve more towards the consumer side,” said Devin Ryan, banks analyst at JMP Securities. “It’s obviously going to be a very small business in the very near term but the longer term opportunity [is bigger]. If you look at JPMorgan’s or some of the other incumbents’ results they suggest that each one of these individual units that they’ve launched could represent billions of dollars of revenue.”
https://www.ft.com/content/667cf3f8-37cb-11ea-a6d3-9a26f8c3cba4
