$1.2 Billon in loan loss provisions for Apple Card.

Goldman Sachs set aside as much as 1.2 Billion in its balance sheet for loan loss provisions.

Separately, Goldman Sachs laid off up to 3,200 people this past week, a source familiar with the bank told MarketWatch.

The firm’s new Platform Solutions unit houses its credit card businesses for Apple Inc. and General Motors Co., as well as its consumer lending unit GreenSky.

Goldman disclosed about $3 billion in losses in its platform solutions unit since 2020, as initially reported by The Wall Street Journal. The losses include higher operating expenses as well as cash diverted to cover potential losses on loans.

Previously, the only financials Goldman had disclosed in its consumer business showed $1.3 billion in losses from the start through mid-2019. However, executives of Platform Solutions believe the consumer division may break even in 2025, although that target was initially by the end of 2022.

Goldman spent a lot of money to help launch Apple Card and its other consumer services. A report from 2019 revealed the bank spent around $1.3 billion on its consumer services, and reportedly spent roughly $350 to acquire every new Apple Card customer.

Apple Card was launched in the US back in 2019 and it’s unclear exactly how much of the $4 billion in losses have stemmed from it. However, sources close to the matter believe most of the $1 billion loss in 2021 came from Apple Card. And there are another $2 billion in 2022 losses believed to mostly come from Apple Card and one other Goldman lending platform called GreenSky.

All this could definitely explain why Apple hasn’t expanded Appel Card in more than three years since it debuted. A six-year or even longer break-even would be difficult from the perspective of getting Goldman to invest more to expand and even harder for Apple trying to partner with other banks in different countries.

Shares of Goldman Sachs fell 1/2% on Friday amid earnings updates from the big banks.