- JPMorgan Chase agreed to take over the Apple Card from Goldman Sachs, shifting about US$20 billion in balances after a roughly 24-month, approval-dependent transition.
- Apple says core card features (Mastercard network, rewards, no fees, and app tools) will stay in place during the migration.
- Goldman sells the portfolio at a >US$1 billion discount, expecting a Q4 2025 earnings lift from releasing reserves but also taking markdown and exit costs.
- JPMorgan will book about US$2.2 billion in Q4 2025 credit-loss provisions under a forward-purchase commitment and plans a new Apple-branded savings account with Apple.
Read More
The announced deal to shift Apple’s credit-card issuance from Goldman Sachs to JPMorgan Chase represents a significant realignment in the co-branded credit card landscape. For JPMorgan, this is a strategically valuable acquisition of US$20 billion in card balances, bolstering its credentials in the co-brand and consumer finance sectors. The acquisition also gives it a customer base overlapping with Apple’s high-value users, enhancing cross-selling opportunities and reinforcing Chase’s position under Jamie Dimon, particularly in credit cards where scale matters.
From Goldman Sachs’ standpoint, this deal aligns with its ongoing strategic retreat from consumer-banking ventures. The sale allows it to exit a high-risk portfolio—one burdened by elevated delinquency rates and subprime exposure—while realizing immediate earnings relief through the release of reserves. However, the transaction entails sizable costs: marking down the loan portfolio, contract termination expenses, and preparing for customer migration may introduce transition risk.
For Apple, the continuity of card product features—such as 3% Daily Cash, no fees, Mastercard network, and Apple Card Family—helps mitigate potential customer disruptions. Retaining existing card functionality suggests Apple is emphasizing stability alongside innovation. The planned new savings account with Chase provides Apple a chance to refresh its financial services offering under a new provider, possibly altering yield, pricing, and terms.
Regulatory approvals are likely to be significant and potentially time-consuming; the roughly 24-month transition period signals expected scrutiny over customer protections, data migration, credit risk, and consumer disclosures. The forward purchase commitment and associated loss provisions indicate JPMorgan is assuming material downside risk, even before officially owning the portfolio.
Open questions for stakeholders include: how underwriting criteria will change (especially for the subprime segment); what modifications, if any, will be made to interest rates, fees, and rewards set by Chase; how Apple-branded savings accounts will be structured; how liability and customer service responsibilities are allocated during the transition; and whether this deal presages further strategic shifts by Apple into consumer finance or banking.
Supporting Notes
- The deal will transfer over US$20 billion in Apple Card balances from Goldman Sachs to JPMorgan Chase once the transaction completes.
- JPMorgan expects to take a US$2.2 billion provision for credit losses in Q4 2025 tied to the forward purchase agreement for the portfolio.
- Goldman Sachs is selling the portfolio at a discount exceeding US$1 billion to par; expects to release approximately US$2.48 billion in loan-loss reserves, boosting earnings by about 46 cents per share, but offset by revenue, portfolio markdowns, and costs around US$38 million.
- The transition will take approximately 24 months and is subject to regulatory approvals.
- Current card features—Daily Cash rewards up to 3 %, no fees, Mastercard as network, its spending tools, family features, savings account access—will remain in place during transition.
- Apple and Chase plan to collaborate on a new Apple-branded savings account; existing savings account users with Goldman Sachs will have the choice to stay or move when that product is available.