Goldman Sachs nearing a deal to transfer GM credit card business to Barclays, source says

NEW YORK (Reuters) – Goldman Sachs is close to finalizing a deal to transfer its General Motors credit card business to Barclays, a source familiar with the matter said on Tuesday.

The exit from the business partnership with GM, with about $2 billion of outstanding balances, is part of Goldman Sachs’ move to narrow its focus on consumer services.

The companies are still involved in final negotiations, said the source, who asked not to be identified because the talks are private.

Goldman Sachs and Barclays declined to comment.

The Wall Street bank is expected to take a hit on the business in the third quarter.

Goldman Sachs CEO David Solomon said on Monday at a conference the sale of loans to small and medium sized retail businesses, and its plans to exit the GM credit card partnership will likely mean a pretax charge.

“The combination of those things this quarter will likely have an approximately $400 million pre-tax impact, largely showing up in revenues,” Solomon said.

Goldman Sachs had planned to scrap its co-branded credit cards with GM last November. The credit card program, issued by Mastercard through Goldman Sachs, was launched in 2022 to let customers earn more points to put towards buying or leasing Buicks, Cadillacs and other GM cars.

(Reporting by Saeed Azhar; Editing by Lananh Nguyen and Richard Chang)