- JPMorgan Chase agreed to take over as Apple Card issuer from Goldman Sachs, moving about $20B in balances over roughly 24 months pending approvals.
- Goldman will sell the portfolio at a >$1B discount, take a $2.26B revenue hit offset by a $2.48B reserve release (about +$0.46 EPS in Q4 2025), while JPMorgan books a ~$2.2B loss provision.
- Customers should see no near-term changes as Mastercard and core perks (Daily Cash, zero fees, Apple Card Family and savings features) remain during the transition.
- The deal advances Goldman’s retreat from consumer banking and strengthens JPMorgan in co-brand cards, with key risks around the portfolio’s above-average subprime and delinquency exposure and any future repricing.
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The newly announced deal between JPMorgan Chase, Apple, and Goldman Sachs involves JPMorgan taking over issuance of the Apple Card, replacing Goldman Sachs Bank USA, over a period of roughly 24 months. The portfolio comprises over USD 20 billion in outstanding balances and will move at a discount exceeding USD 1 billion – marking a rare distressed-pricing of a large co-brand account. Goldman Sachs will absorb a significant revenue concession (USD 2.26 billion hit), partially offset by reserve releases (USD 2.48 billion), resulting in a projected gain for Q4 2025 earnings of approximately USD 0.46 per share. JPMorgan, meanwhile, must anticipate an upfront USD 2.2 billion provision for credit losses risk.
Operationally and for consumers, the transition is structured to preserve continuity: no immediate changes to key benefits, reward structures, fees, or network (Mastercard), though over time Chase may introduce new products, especially in savings. Apple’s involvement appears to continue, with shared vision of innovation and customer experience. The savings account remains an optional component for existing customers.
From a strategic standpoint, this deal is a win for JPMorgan: it significantly increases their card-balance base, reinforces their consumer finance credentials, and deepens the Apple relationship. For Goldman Sachs, this transaction completes a broader pullback from consumer finance due to persistent losses and margin pressures. Apple continues to lean into financial services, particularly co-brands and embedded finance, reinforcing its platform roadmap. But risks are material: the portfolio includes elevated exposure to subprime borrowers and delinquency rates even higher than industry averages, which Chase will need to manage carefully. Pricing, underwriting, collections, and customer behavior will be tested.
Key open questions: Will Chase adjust card APRs or fees long-term given the different risk dynamics? How will they integrate the Apple savings balances? What regulatory hurdles might slow or alter the deal? And how might this reshape competitive dynamics among credit card issuers, especially as Apple seeks to bundle more financial services?
Supporting Notes
- JPMorgan will become the issuer of Apple Card in approx. 24 months, replacing Goldman Sachs.
- The transaction involves over USD 20 billion in card balances moving to Chase.
- Goldman Sachs is selling the portfolio at a discount of more than USD 1 billion.
- JPMorgan expects to take a USD 2.2 billion provision for credit losses in Q4 2025 related to the forward purchase of the portfolio.
- Goldman Sachs will see a USD 2.26 billion hit to net revenue, offset by USD 2.48 billion release in loan-loss reserves, leading to approx. USD 0.46/share earnings accretion in Q4 2025.
- Card benefits such as up to 3% Daily Cash back, Apple Card Family, high-yield savings, zero fees, and Mastercard network will remain unchanged during the transition.
- The portfolio includes a higher share of subprime borrowers and delinquency rates above industry averages.
- Goldman Sachs’ exit is part of its broader strategy to scale back losses in its consumer finance operations.