The Apple Card saga has taken an unexpected turn, causing a stir in the financial world. Apple's partnership with JPMorgan Chase is already causing a ripple effect on the latter's profits, and it's not a pretty picture.
Last week, Apple confirmed the long-rumored news: Chase is now the new issuer of Apple Card. According to The Wall Street Journal, this move has already impacted JPMorgan Chase's financial health, and it's not the positive kind.
Chase's profits took a hit in Q4 2025, and Apple Card played a part in this decline. Alexander Saeedy, writing for The Wall Street Journal, reported that JPMorgan Chase's profit fell by 7% in the fourth quarter of 2025. This was due to a charge related to the takeover of Apple's credit card program and a surprising drop in investment banking fees.
JPMorgan's acquisition of the Apple credit card program from Goldman Sachs led to an additional $2.2 billion charge for potential future loan losses on approximately $20 billion in balances. This significantly impacted the quarter's results, reducing profits by 60 cents per share, as the bank stated.
Despite its popularity among consumers, Apple Card has been a financial burden for Goldman Sachs, its original and current issuer. The history of the Apple-Goldman Sachs partnership has been a rocky one, with significant financial losses.
Even though Chase's official takeover of Apple Card is still two years away, the bank is already preparing for potential future losses. This proactive approach led to the extra $2.2 billion charge, which contributed to the quarterly loss.
One can't help but question Chase's decision to take on Apple Card, considering the challenges faced by Goldman Sachs. What made Chase believe they could navigate these waters successfully?
Some changes to Apple Card are expected, but Apple has emphasized continuity for existing users. More details are promised to be revealed later.
So, what changes do you anticipate when Chase takes the reins? Share your thoughts and predictions in the comments below.
And while we're on the topic of Apple, here are some of the best iPhone accessories to enhance your experience:
- AirTag 4-pack (now only $65, down from $99) - Keep track of your belongings with these handy trackers.
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- 100W USB-C fast charging power adapter - Charge your devices quickly and efficiently.
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