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Can Private Credit Unlock More Growth for JPMorgan's Card Business?
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Key Takeaways
JPMorgan could let private-credit firms fund select card applicants rejected under its underwriting standards.
The model could boost co-brand card approvals while helping JPMorgan maintain disciplined credit standards.
JPMorgan has approached more than a dozen firms, but says it currently has no plans to launch the program.
JPMorgan (JPM - Free Report) may have found a new lever to push card growth without taking on proportionately more credit risk. Per an article in PYMNTS citing the Wall Street Journal, the banking giant is reportedly exploring a “second-look” model under which private credit firms could fund select applicants rejected under JPMorgan’s underwriting standards. Such an arrangement could expand approval rates across its co-brand card portfolio while limiting the bank’s exposure to higher-risk borrowers.
JPMorgan reportedly approached more than a dozen firms, including Blackstone, KKR, Blue Owl Capital and Sixth Street. However, the bank has said it currently has no plans to launch the program, making the initiative an exploratory option rather than a near-term earnings catalyst.
The potential model is particularly relevant as JPMorgan continues to expand its card franchise. The company is already the largest U.S. credit-card issuer by purchase volume, while its pending acquisition of the roughly $20 billion Apple Card portfolio is set to increase its scale. Meanwhile, co-brand partners such as United Airlines have an incentive to maximize customer approvals and card adoption.
Private credit could help JPMorgan balance those partner-growth objectives with disciplined underwriting. By allowing third-party lenders to serve borrowers outside its risk appetite, the bank could potentially increase card penetration and strengthen its co-brand relationships without materially loosening its own credit standards.
The concept offers an incremental avenue for card growth rather than an immediate financial catalyst. If eventually implemented at scale, it could support franchise expansion and partner economics while allowing JPMorgan to retain a disciplined approach to credit risk.
How Do JPMorgan’s Peers Plan to Expand Their Card Business?
Bank of America plans to expand its card business through organic customer acquisition, digital distribution and deeper co-brand partnerships. Bank of America opened more than 1 million new card accounts in second-quarter 2026 and is strengthening its Alaska Airlines partnership, including premium cards and broader Atmos Rewards integration.
Citigroup plans to expand its card business by accelerating customer acquisitions, increasing the mix of higher-value general-purpose cards and deepening co-brand partnerships. Citigroup is also investing in premium products like Strata, scaling relationships with American Airlines and Costco, adding select partners and expanding installment lending.
JPMorgan’s Price Performance, Valuation and Estimates
JPM’s shares have gained 14.2% over the past six months.
Image Source: Zacks Investment Research
From a valuation standpoint, JPMorgan trades at a 12-month trailing price-to-tangible book (P/TB) of 3.14X, slightly below the industry average.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan's 2026 earnings suggests a 22.7% year-over-year rise, while 2027 earnings are expected to grow 0.4%. In the past 30 days, earnings estimates for 2026 and 2027 have moved marginally upward to $24.95 and $25.04, respectively.
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Can Private Credit Unlock More Growth for JPMorgan's Card Business?
Key Takeaways
JPMorgan (JPM - Free Report) may have found a new lever to push card growth without taking on proportionately more credit risk. Per an article in PYMNTS citing the Wall Street Journal, the banking giant is reportedly exploring a “second-look” model under which private credit firms could fund select applicants rejected under JPMorgan’s underwriting standards. Such an arrangement could expand approval rates across its co-brand card portfolio while limiting the bank’s exposure to higher-risk borrowers.
JPMorgan reportedly approached more than a dozen firms, including Blackstone, KKR, Blue Owl Capital and Sixth Street. However, the bank has said it currently has no plans to launch the program, making the initiative an exploratory option rather than a near-term earnings catalyst.
The potential model is particularly relevant as JPMorgan continues to expand its card franchise. The company is already the largest U.S. credit-card issuer by purchase volume, while its pending acquisition of the roughly $20 billion Apple Card portfolio is set to increase its scale. Meanwhile, co-brand partners such as United Airlines have an incentive to maximize customer approvals and card adoption.
Private credit could help JPMorgan balance those partner-growth objectives with disciplined underwriting. By allowing third-party lenders to serve borrowers outside its risk appetite, the bank could potentially increase card penetration and strengthen its co-brand relationships without materially loosening its own credit standards.
The concept offers an incremental avenue for card growth rather than an immediate financial catalyst. If eventually implemented at scale, it could support franchise expansion and partner economics while allowing JPMorgan to retain a disciplined approach to credit risk.
How Do JPMorgan’s Peers Plan to Expand Their Card Business?
Two close peers of JPMorgan are Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Bank of America plans to expand its card business through organic customer acquisition, digital distribution and deeper co-brand partnerships. Bank of America opened more than 1 million new card accounts in second-quarter 2026 and is strengthening its Alaska Airlines partnership, including premium cards and broader Atmos Rewards integration.
Citigroup plans to expand its card business by accelerating customer acquisitions, increasing the mix of higher-value general-purpose cards and deepening co-brand partnerships. Citigroup is also investing in premium products like Strata, scaling relationships with American Airlines and Costco, adding select partners and expanding installment lending.
JPMorgan’s Price Performance, Valuation and Estimates
JPM’s shares have gained 14.2% over the past six months.
Image Source: Zacks Investment Research
From a valuation standpoint, JPMorgan trades at a 12-month trailing price-to-tangible book (P/TB) of 3.14X, slightly below the industry average.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan's 2026 earnings suggests a 22.7% year-over-year rise, while 2027 earnings are expected to grow 0.4%. In the past 30 days, earnings estimates for 2026 and 2027 have moved marginally upward to $24.95 and $25.04, respectively.
Image Source: Zacks Investment Research
JPMorgan currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.