SKN | JPMorgan Replaces Goldman as Apple Card Issuer, Reshaping U.S. Credit Card Power Balance

Key Takeaways

• JPMorgan Chase will become the new issuer of the Apple Card, replacing Goldman Sachs and adding more than $20 billion in card balances over time.

• The deal deepens JPMorgan’s dominance in U.S. consumer credit while marking a strategic retreat for Goldman from mass-market banking.

• Credit provisioning and accounting impacts are front-loaded, but long-term economics favor JPMorgan’s scale and risk infrastructure.

A Strategic Win for JPMorgan’s Consumer Franchise

JPMorgan Chase and Apple confirmed that the largest U.S. bank will take over as issuer of the Apple Card, a move that materially strengthens JPMorgan’s already formidable credit card business. Once fully integrated, the portfolio is expected to transfer more than $20 billion in card balances to Chase’s platform.

For JPMorgan, the transaction reinforces its position as the dominant player in U.S. consumer finance. Under CEO Jamie Dimon, the bank has consistently prioritized scale, underwriting discipline, and ecosystem integration — all areas where Apple Card fits naturally alongside Chase’s existing card, payments, and digital banking infrastructure.

Credit Costs Now, Earnings Power Later

JPMorgan expects to record a $2.2 billion provision for credit losses in the fourth quarter of 2025, reflecting the forward purchase commitment tied to the portfolio. While significant, the provision underscores the bank’s conservative approach to balance sheet management and its willingness to absorb near-term costs to secure long-duration customer relationships.

The deal is subject to regulatory approval and is not expected to close for roughly two years, meaning financial impacts will be phased rather than immediate. Mastercard will remain the payment network, preserving continuity for Apple Card users.

Goldman’s Consumer Retreat Becomes Definitive

For Goldman Sachs, the handover represents another clear step away from consumer banking ambitions that once sat at the center of its growth narrative. CEO David Solomon described the transaction as substantially completing the narrowing of the firm’s consumer focus.

The accounting impact reflects that transition. Goldman expects the deal to add roughly $0.46 per share to fourth-quarter 2025 earnings through the release of $2.48 billion in loan-loss reserves. That benefit will be largely offset by a $2.26 billion reduction in net revenue tied to portfolio markdowns and contract termination costs, plus additional expenses.

In effect, Goldman is choosing clarity and capital redeployment over scale in consumer credit — a trade-off that aligns the firm more closely with its traditional strengths in investment banking, trading, and wealth management.

Why This Matters for the Banking Landscape

The Apple Card migration highlights a broader realignment within U.S. banking. Scale, funding advantages, and operational depth are increasingly decisive in consumer finance, particularly as regulators scrutinize risk management and profitability. JPMorgan’s balance sheet and systems make it a natural long-term home for a mass-market product like Apple Card.

Goldman’s exit, by contrast, underscores the difficulty of competing in consumer banking without legacy infrastructure or deposit scale.

Forward View

As earnings season approaches — with JPMorgan reporting on January 13 and Goldman on January 15 — investors are likely to view this deal as emblematic of each bank’s strategic direction. For JPMorgan, it reinforces steady expansion and dominance. For Goldman, it closes a chapter and sharpens focus.

The Apple Card transition is less about disruption and more about consolidation — and in that environment, scale continues to win.

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