- JPMorgan Chase will replace Goldman Sachs as Apple Card issuer, taking on about $20B of balances in a transfer expected to take roughly two years pending regulatory approval.
- JPMorgan expects a $2.2B credit-loss provision in Q4 2025 tied to the forward purchase, while Goldman will release $2.48B in reserves but take markdowns and costs for a net +$0.46 EPS impact in Q4 2025.
- The portfolio is being sold at more than a $1B discount to par due to elevated delinquencies and subprime exposure, with Mastercard remaining the network.
- The deal accelerates Goldman’s retreat from consumer banking and gives JPMorgan deeper control of the Apple Card customer relationship within Apple’s services ecosystem.
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The announced deal marks a major transition in the co-branded credit card landscape. With Goldman stepping back from its foray into consumer finance, the transfer of the Apple Card to JPMorgan—already the largest card issuer in the U.S.—represents both risk-shifting and opportunity-taking. Goldman offloads a high-loss portfolio at a discount, freeing capital and management bandwidth. The projected $0.46 earnings‐per‐share boost for Goldman in Q4 2025, triggered by releasing reserves, comes with near‐term expenses and revenue hit; its long‐term gain hinges on how cleanly it exits consumer lending.
For JPMorgan, absorbing ~ $20B in balances—some of which is subprime and delinquent under Goldman’s lenient underwriting—means it must provision heavily ($2.2B) and assume credit risk. But because Mastercard remains the payment network, cards’ technical infrastructure stays intact while JPM gains control of customer relationships. This gives Chase leverage to cross-sell other financial products via Apple’s platform, possibly expanding savings account offerings already mentioned.
From Apple’s vantage, working with JPMorgan can signal stability and tighter risk management; but the user-facing experience is unlikely to change immediately. Over time, Chase may adjust underwriting, fees, rewards or service terms—especially if delinquency stays high. Key operational considerations include regulatory approvals (which could be significant given credit risk, partnerships with Apple, consumer protections), and structuring of savings and other co‐branded services base.
Strategically, the broader financial sector will watch this as a case study in exit cost vs. brand alignment: Goldman pays the price for underestimating consumer credit performance; JPMorgan bets that its data scale and discipline will make it profitable. Apple doubles down on services ecosystem, emphasizing control over brand experience even if the issuing partner changes. The market impact, including net revenue recognition, reserve release timing, and earnings volatility, will be distinct for both banks in upcoming earnings.
Open questions: how JPMorgan will manage delinquent exposures and non‐fee revenue gaps (e.g., no late fees in current structure); whether Apple will change product economics for consumer customers over time; what regulatory hurdles loom, particularly around disclosures, credit fairness and data sharing; and how Goldman redeploys capital from this exit.
Supporting Notes
- Deal value: JPMorgan to take over Apple Card portfolio from Goldman, replacing Goldman as issuer; portfolio estimated at over $20 billion in card balances.
- Timeframe and conditions: expected to take ~ two years and subject to regulatory approvals.
- Financial for JPMorgan: provision of ~$2.2B in Q4 2025 for credit losses linked to the portfolio’s forward purchase commitment.
- Financial for Goldman: releasing $2.48B in loan-loss reserves; absorbing ~$2.26B net revenue hit from marking down the portfolio plus $38M in expenses; net effect of about +$0.46 per share in Q4 2025 earnings.
- Sale terms: portfolio to be acquired at more than $1B discount to par, reflecting delinquency and subprime exposure under Goldman’s underwriting standards.
- Operational/partnership continuity: Mastercard remains payment network; Apple and JPMorgan will collaborate on a savings account; existing Apple savings customers at Goldman can choose whether to move.
- Goldman’s strategy shift: transaction seen as completing narrowing of its consumer business focus; exit from other consumer partnerships (e.g. GM credit card) previously reported.