JPM to Take Over Apple Card, Plans to Record a $2.2B Provision in Q4

Core Insights - JPMorgan Chase & Co. will become the new issuer of Apple Card, replacing Goldman Sachs, with the transition expected to be completed in approximately 24 months, pending regulatory approvals [1][9] - JPMorgan anticipates recognizing a $2.2 billion provision for credit losses in Q4 2025 related to the Apple Card portfolio [2] - The acquisition of the Apple Card loan portfolio is estimated to bring over $20 billion in card balances to JPMorgan Chase [3] Background of the Transition - Apple Card was launched in 2019 in partnership with Goldman Sachs, marking Goldman Sachs' entry into the consumer credit card market [4] - In 2023, Goldman Sachs indicated its intention to exit the partnership due to increasing losses in its consumer banking sector [4] - Apple explored options for a new issuer in late 2023, with JPMorgan being a natural successor due to its existing relationship with Apple and presence in retail [5] Strategic Rationale - The agreement enhances JPMorgan's position in the U.S. credit card market by expanding its co-brand portfolio and increasing scale in consumer payments [6] - The onboarding of a large cardholder base is expected to accelerate transaction volumes and broaden JPMorgan's consumer reach [6] - JPMorgan's card segment has seen steady growth, with a 7.6% year-over-year increase in card sales volume in the first nine months of 2025 [7] Market Performance - Over the past six months, JPMorgan's shares have increased by 15.6%, compared to a 22.6% growth in the industry [8]