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JPM to Take Over Apple Card, Plans to Record a $2.2B Provision in Q4
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Key Takeaways
JPMorgan will acquire the Apple Card portfolio, totaling over $20B in card balances.
The transition is expected to take ~24 months, pending regulatory approvals.
The deal strengthens JPM's co-brand card business and deepens its Apple partnership.
JPMorgan Chase & Co. (JPM - Free Report) and Apple Inc. (AAPL - Free Report) recently announced that JPM will become the new issuer of Apple Card, replacing Goldman Sachs (GS - Free Report) . The transition is expected to be completed in approximately 24 months, subject to customary regulatory approvals.
JPM expects to recognize a $2.2 billion provision for credit losses in the fourth quarter of 2025 related to the forward purchase commitment of the Apple Card portfolio. While the transaction will not close for roughly two years, the provision reflects prudent balance sheet positioning ahead of the portfolio transfer.
Under the terms of the agreement, the company will acquire the Apple Card loan portfolio, which is estimated to bring over $20 billion in card balances onto the JPMorgan Chase platform once the transition is finalized.
Background of the Apple Card Transition
Apple Card was introduced in 2019 in partnership with Goldman Sachs, marking the latter’s entry into the consumer credit card space. In 2023, GS signaled its intention to exit the partnership amid mounting losses in its consumer banking business.
In late 2023, AAPL reportedly explored options to transition the program to a new issuer, with JPMorgan emerging as a natural successor given its existing relationship with Apple through Apple Pay and its large transaction presence at Apple retail outlets. As part of its broader strategic shift to scale back consumer banking operations, GS has since agreed to transition the Apple Card program to JPMorgan.
Rationale Behind JPMorgan’s Apple Card Agreement
The agreement strengthens JPM’s position in the U.S. credit card market by expanding its co-brand portfolio and adding scale to its consumer payments business. By onboarding a large, established cardholder base, the company is expected to accelerate card transaction volumes and expand its U.S. consumer reach.
Allison Beer, chief executive officer of Card & Connected Commerce at JPMorgan Chase, stated, “Apple is an iconic brand recognized globally for its innovation, design excellence and commitment to delivering exceptional customer experiences.” Beer further added, “We share a commitment to supporting consumer financial health, and we’re proud to deepen our relationship by welcoming them as the newest partner in our industry-leading co-brand credit card program. We’re excited to innovate together in the future.”
JPMorgan’s card segment has been witnessing steady growth over the past few years, adding millions of new accounts annually, increasing customer engagement and broadening product offerings across consumer and business segments. In the first nine months of 2025, card sales volume increased 7.6% year over year. The addition of the Apple Card portfolio further enhances this momentum, bringing a sizable and strategically valuable base of customers and balances that reinforce the company’s long-term growth trajectory in cards.
JPM’s Zacks Rank & Price Performance
Over the past six months, shares of JPMorgan have gained 15.6% compared with the industry’s 22.6% growth.
Image: Bigstock
JPM to Take Over Apple Card, Plans to Record a $2.2B Provision in Q4
Key Takeaways
JPMorgan Chase & Co. (JPM - Free Report) and Apple Inc. (AAPL - Free Report) recently announced that JPM will become the new issuer of Apple Card, replacing Goldman Sachs (GS - Free Report) . The transition is expected to be completed in approximately 24 months, subject to customary regulatory approvals.
JPM expects to recognize a $2.2 billion provision for credit losses in the fourth quarter of 2025 related to the forward purchase commitment of the Apple Card portfolio. While the transaction will not close for roughly two years, the provision reflects prudent balance sheet positioning ahead of the portfolio transfer.
Under the terms of the agreement, the company will acquire the Apple Card loan portfolio, which is estimated to bring over $20 billion in card balances onto the JPMorgan Chase platform once the transition is finalized.
Background of the Apple Card Transition
Apple Card was introduced in 2019 in partnership with Goldman Sachs, marking the latter’s entry into the consumer credit card space. In 2023, GS signaled its intention to exit the partnership amid mounting losses in its consumer banking business.
In late 2023, AAPL reportedly explored options to transition the program to a new issuer, with JPMorgan emerging as a natural successor given its existing relationship with Apple through Apple Pay and its large transaction presence at Apple retail outlets. As part of its broader strategic shift to scale back consumer banking operations, GS has since agreed to transition the Apple Card program to JPMorgan.
Rationale Behind JPMorgan’s Apple Card Agreement
The agreement strengthens JPM’s position in the U.S. credit card market by expanding its co-brand portfolio and adding scale to its consumer payments business. By onboarding a large, established cardholder base, the company is expected to accelerate card transaction volumes and expand its U.S. consumer reach.
Allison Beer, chief executive officer of Card & Connected Commerce at JPMorgan Chase, stated, “Apple is an iconic brand recognized globally for its innovation, design excellence and commitment to delivering exceptional customer experiences.” Beer further added, “We share a commitment to supporting consumer financial health, and we’re proud to deepen our relationship by welcoming them as the newest partner in our industry-leading co-brand credit card program. We’re excited to innovate together in the future.”
JPMorgan’s card segment has been witnessing steady growth over the past few years, adding millions of new accounts annually, increasing customer engagement and broadening product offerings across consumer and business segments. In the first nine months of 2025, card sales volume increased 7.6% year over year. The addition of the Apple Card portfolio further enhances this momentum, bringing a sizable and strategically valuable base of customers and balances that reinforce the company’s long-term growth trajectory in cards.
JPM’s Zacks Rank & Price Performance
Over the past six months, shares of JPMorgan have gained 15.6% compared with the industry’s 22.6% growth.
Currently, JPM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.