Recently, it was confirmed that Apple was going to partner with JPMorgan Chase on the Apple Card as its partnership with Goldman Sachs is coming to an end. Now, reportedly, Chase's Q4 profits had dropped by 7% as the firm has begun putting funds into the transition to back the Apple Card.
JPMorgan Chase profits take a dip as it prepares to take over Apple Card
Reportedly, Goldman Sachs was losing money on the Apple Card, and this could be one of the reasons the firm has decided to back out of the project. Now that JPMorgan Chase is going to take over, at least initially, it seems to look like this firm is also, somewhat, taking a hit.
A Wall Street Journal report (via AppleInsider) indicates that Chase's profits dropped 7% to $13 billion (still massive, if you ask me) for the fourth quarter of last year. Reasons included an unexpected fall in investment banking fees and other things; however, the single biggest issue identified was reportedly... Apple Card.
Image Credit – Apple
Before you get concerned, though, we are not talking here about the issues that plagued the Apple and Goldman Sachs partnership. Instead, it seems like taking on Apple Card had cost the firm $2.2 billion. Technically, it didn't lose this money, but instead, prepped for potential loses.
Recommended For You
Apparently, it's money, set aside in order to cover Apple Card loans that the firm expects are not going to be paid by customers. A financial cushion for Chase, of sorts.
This could be due to the claim that Goldman Sachs took on customers with lower credit scores. Apparently, this is said about the Apple Card, as well as about Sachs' other consumer credit card program with General Motors.
Apparently, back in 2024, rumor had it that the unpaid Apple Card balances at the time were amounting only to $17 billion, while unpaid balances on the General Motors card were $2 billion.
Would you trust your Apple Card with a new bank partner?
Yes, as long as features stay the same
38.46%
Maybe, I’d watch how it goes first
7.69%
No, I prefer the old setup
7.69%
I don’t use Apple Card
46.15%
JPMorgan Chase and the Apple Card
Obviously, the drop in profits affected JPMorgan Chase somewhat. This Apple Card-related charge had caused the Q4 results of the firm to drop 60 cents per share. The company also reportedly misjudged its estimate for investment bank fees. It reportedly said this is because some deals had taken longer to close than the first anticipated.
Despite all of this, though, the quarter was reportedly strong for Chase. On top of that, for the whole 2025, Chase's revenue was up 3%.
The Apple Card is a credit card built into the Apple Wallet that gives users up to 3 % unlimited Daily Cash back on purchases (especially when using Apple Pay), no fees like annual or foreign‑transaction charges, and simple tools to track spending and manage payments right on your iPhone or Apple Watch.
It also supports Apple Card Family for sharing accounts with others, a high‑yield savings account, and interest‑free monthly installments on Apple products — all designed to be easy and transparent for everyday use.
While JPMorgan Chase is taking over issuing the card from Goldman Sachs over the next couple of years, Apple says core features and rewards won't change immediately as the transition happens.
JPMorgan Chase takes over Apple Card, and yes, this is a big move
Honestly, I think this makes sense for Apple. The Cupertino giant wants to keep the Apple Card growing. And JPMorgan Chase is huge, so it can handle the risks better. For users, it shouldn't really change how the card works, which is nice, at least for now – you still get the same Daily Cash, no fees, and easy tracking on your iPhone.
At the same time, all of this is a reminder that even big banks have to plan carefully when offering credit cards. $2.2 billion in potential loan losses is huge. However, this move shows that JPMorgan is serious about taking care of customers while keeping the card safe. I'm curious to see how smoothly the transition goes, but for now, it feels like a solid move for everyone involved.
Izzy, a tech enthusiast and a key part of the PhoneArena team, specializes in delivering the latest mobile tech news and finding the best tech deals. Her interests extend to cybersecurity, phone design innovations, and camera capabilities. Outside her professional life, Izzy, a literature master's degree holder, enjoys reading, painting, and learning languages. She's also a personal growth advocate, believing in the power of experience and gratitude. Whether it's walking her Chihuahua or singing her heart out, Izzy embraces life with passion and curiosity.
A discussion is a place, where people can voice their opinion, no matter if it
is positive, neutral or negative. However, when posting, one must stay true to the topic, and not just share some
random thoughts, which are not directly related to the matter.
Things that are NOT allowed:
Off-topic talk - you must stick to the subject of discussion
Offensive, hate speech - if you want to say something, say it politely
Spam/Advertisements - these posts are deleted
Multiple accounts - one person can have only one account
Impersonations and offensive nicknames - these accounts get banned
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts:
New accounts created within the last 24 hours may experience restrictions on how frequently they can
post or comment.
These limits are in place as a precaution and will automatically lift.
Moderation is done by humans. We try to be as objective as possible and moderate with zero bias. If you think a
post should be moderated - please, report it.
Have a question about the rules or why you have been moderated/limited/banned? Please,
contact us.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: