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JPMorgan’s Apple Card Takeover Spurs $2.2 Billion Provision and Two-Year Migration

The bank expects elevated credit risk in the portfolio it is set to acquire from Goldman.

Overview

  • Apple has confirmed JPMorgan Chase will replace Goldman Sachs as Apple Card issuer, with a roughly 24‑month migration during which Apple says features will remain unchanged for customers.
  • JPMorgan reported a 7% decline in Q4 2025 profit after booking a $2.2 billion charge for potential losses on about $20 billion in Apple Card balances, reducing earnings by 60 cents per share.
  • A Wall Street Journal account describes Apple and Goldman’s partnership as an “unhappy marriage,” with Apple’s push to approve most applicants contributing to more than 30% of balances sitting below typical prime credit scores.
  • Chase negotiated protections in its agreement, including the right to walk away before closing and safeguards if delinquencies rise, with reporting indicating a December 8 call between Jamie Dimon and David Solomon revived stalled talks.
  • Reporting also says the portfolio is changing hands at roughly a 7% discount, implying a loss exceeding $1 billion for Goldman as it exits the program during the protracted handover.