Jamie Dimon's Grip On US Credit Card Dominance Grows As JPMorgan Wins Apple Card Business From Goldman Sachs

Core Insights - Apple Inc. has selected JPMorgan Chase as the new issuer of the Apple Card, ending Goldman Sachs' involvement, which significantly alters the consumer finance strategies of all three companies [1][2]. Group 1: JPMorgan Chase's Position - The agreement allows JPMorgan Chase to expand its credit card business, bringing over $20 billion in Apple Card balances to its platform upon completion of the transition [2]. - This deal enhances JPMorgan's competitive stance in the U.S. credit card market and is seen as a strategic win under CEO Jamie Dimon's leadership [4]. Group 2: Goldman Sachs' Transition - The transition marks another step for Goldman Sachs in retreating from consumer banking after experiencing losses and strategic pullbacks [5]. - Goldman Sachs and Apple initially announced their intention to end the partnership in 2023, which began in 2019 [5]. - The Apple Card has struggled to generate sustainable returns for Goldman due to rising costs and regulatory scrutiny in consumer lending [6]. Group 3: Financial Implications - Goldman Sachs anticipates that the transaction will contribute approximately 46 cents per share to its fourth-quarter 2025 earnings, primarily from the release of $2.48 billion in loan-loss reserves [6]. - However, this benefit will be partially offset by a $2.26 billion reduction in net revenue related to the loan portfolio markdown, contract termination costs, and an additional $38 million in expenses [7].