JPMorgan Chase Is About to Take Over the Apple Card Business From Goldman Sachs. Here's What Investors Need to Know.

Core Insights - Goldman Sachs is divesting its $20 billion Apple Card portfolio to JPMorgan Chase, marking a significant retreat from consumer banking after struggling since the program's launch in 2019 [1][4] - The transaction is expected to close in 24 months, allowing Goldman Sachs to continue managing the Apple Card until then [1][8] Goldman Sachs - The company faced unexpected high charge-off rates due to looser lending standards, particularly among consumers with FICO scores below 660, which contributed to its challenges in consumer banking [4] - The struggles in consumer banking have been notable, as the company has not successfully penetrated this market segment [9] JPMorgan Chase - The acquisition provides JPMorgan Chase access to over 12 million Apple Card customers, who are generally more affluent and can be targeted for cross-selling various banking products [6][9] - The bank's CFO expressed optimism about the transaction, indicating it is economically compelling despite the integration challenges [7] - The financial impact of the acquisition on JPMorgan Chase is expected to be minimal, as the Apple Card balances represent only 1.3% of its total loan portfolio of $1.5 trillion [8]