- JPMorgan Chase will replace Goldman Sachs as Apple Card issuer in a roughly 24-month transition, absorbing more than $20 billion of balances pending approvals.
- Goldman exits a money-losing consumer-credit bet, booking a Q4 2025 reserve release gain but offset by revenue markdowns and transition costs.
- JPM will take a conservative stance on inherited credit risk, including a sizable Q4 2025 provision tied to its forward purchase commitment.
- Apple keeps the Mastercard network and core perks like Daily Cash and savings features, though customers may need to choose where their savings account resides.
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The shift of the Apple Card issuing from Goldman Sachs to JPMorgan Chase marks a definitive end to Goldman’s experiment in large-scale consumer credit following years of financial strain. For Goldman, the deal cleanly unwinds a business that contributed an $859 million loss in its platform solutions unit in 2024 and dragged on return on equity by 75-100 basis points. The accrual of a $2.48 billion release of loan loss reserves to be offset by revenue markdowns and contract liabilities suggests a careful financial engineering to salvage earnings integrity while exiting an underperforming asset base.
On JPMorgan’s side, the acquisition of over $20 billion of balances fits squarely within its strategy to dominate the co-brand credit card ecosystem, leveraging its scale, underwriting discipline, and integration with Apple’s payments and devices ecosystem. The $2.2 billion provisioning commitment reflects a conservative posture ahead of absorbing risk from Apple’s existing borrowers—some of whom likely fall under higher delinquencies or subprime categories—as highlighted in earlier reporting.
Strategically, Apple preserves continuity for customers, retaining current terms (no fees, cashback, network agreements) while shifting backend risk from Goldman to a larger institution. For Apple, this reduces exposure to regulatory, credit, and branding volatility tied to its financial partners. For consumers, most terms remain unchanged, though there is choice in savings account providers and potential subtle shifts in underwriting or credit risk thresholds.
The enterprise implications are broad: Goldman tightening its focus on its core franchises (Global Banking & Markets; Asset & Wealth Management), JPMorgan doubling down on consumer finance scale, and Apple taking a more arms-length role in the financial infrastructure while preserving its product differentiation. Open questions include how JPM will integrate this portfolio operationally, what underwriting criteria may change, how regulatory scrutiny may intensify (especially given past CFPB issues for Apple & Goldman), and whether Apple will expand further into financial services partnerships or products beyond payments and credit.
Supporting Notes
- Goldman released $2.48 billion in loan loss reserves; saw a matching $2.26 billion reduction in net revenues plus $38 million expenses tied to portfolio markdowns and contract terminations.
- JPMorgan expects to provision $2.2 billion in Q4 2025 for credit losses due to its forward purchase commitment.
- The portfolio being transferred represents over $20 billion in outstanding Apple Card balances.
- The transition is expected to take ~24 months and remains subject to regulatory approvals.
- Apple retains Mastercard as the payments network; product features such as up to 3% Daily Cash, Apple Card Family, spending tools, and high-yield savings will continue or be preserved.
- Goldman’s Apple partnership had been contractually set to run until 2030, but CEO David Solomon earlier signaled a possible early end—reflecting underlying financial underperformance.
- Goldman’s consumer platform solutions unit posted an $859 million net loss in 2024; the Apple Card business dragged ROE by 75-100 basis points.