JPMorgan Takes Over as New Apple Card Issuer from Goldman Sachs

On January 7, JPMorgan Chase & Co. (JPM.N) and Apple (AAPL.O) announced their agreement for JPMorgan to assume the role of issuer for the Apple Card, thereby replacing Goldman Sachs (GS.N). This strategic move further enhances JPMorgan's credit card franchise, solidifying its position in the market under the leadership of CEO Jamie Dimon, who has steered the bank toward becoming a leader in both retail and investment banking. Once finalized, the agreement is projected to transfer over $20 billion in card balances to Chase. In anticipation of this transition, JPMorgan expects to allocate a $2.2 billion provision for credit losses in the fourth quarter of 2025 due to its commitment to purchase the existing portfolio. While regulatory approvals are required, the deal is not expected to be concluded for approximately two years, with Mastercard continuing as the payment network for the Apple Card. This transition also signals a step back for Goldman Sachs from its consumer banking ambitions, as noted by CEO David Solomon, who mentioned that this deal largely completes the refocusing of their consumer business strategy. Goldman anticipates that this transaction will add around 46 cents per share to its fourth-quarter 2025 earnings, thanks to the release of $2.48 billion in loan-loss reserves, although it will also experience a $2.26 billion decline in net revenue due to loan portfolio write-downs and termination costs, as well as an additional $38 million in expenses. The partnership between Goldman and Apple originally began in 2019, offering features like no fees and cashback, but Goldman Sachs has since reassessed its strategy in consumer banking. JPMorgan Chase will commence the earnings season for banks on January 13, followed by Goldman Sachs on January 15. Reporting by Prakhar Srivastava in Bengaluru; Editing by Shilpi Majumdar and Alan Barona.