Goldman Sachs Dismantles Consumer Ambitions, Sells Apple Card to JPMorgan
The sale of its $20 billion-plus credit card portfolio marks a definitive retreat from retail banking for the Wall Street giant, bolstering JPMorgan's industry dominance.
Goldman Sachs is officially ending its ambitious and turbulent foray into consumer credit, agreeing to transfer its Apple Card partnership to JPMorgan Chase. The deal will see JPMorgan, the nation’s largest bank, absorb a portfolio with more than $20 billion in balances, cementing its leadership in the U.S. credit card market.
The move concludes a costly chapter for Goldman Sachs, which has been systematically dismantling its retail banking operations to refocus on its traditional strengths in investment banking and asset management. Shares of Goldman Sachs traded down approximately 1.5% in recent activity, reflecting investor processing of the strategic shift.
Launched with great fanfare in 2019, the Apple Card was the flagship product of Goldman's consumer-facing brand, Marcus. It was designed to disrupt the credit card industry by integrating seamlessly with the Apple iPhone and eliminating common fees. However, the partnership proved to be a financial drain. The bank reportedly struggled with higher-than-anticipated loan losses from subprime borrowers and the significant costs of servicing the portfolio, which weighed on the profitability of its Platforms Solutions division.
This sale represents the most decisive step yet in Chief Executive David Solomon's campaign to pivot the storied firm back to its institutional roots. After a brief and expensive experiment aimed at capturing a Main Street audience, Goldman is returning its focus to the more predictable and lucrative businesses that have defined it for over a century.
As reported by MarketWatch, the end of the Apple Card saga has been widely anticipated by Wall Street. The bank had publicly signaled its intent to exit the partnership for months, making the official transfer to a rival a matter of when, not if. For Apple, the transition provides a stable, experienced banking partner in JPMorgan, which runs one of the world's largest credit card businesses, including popular co-branded cards with Amazon and Southwest Airlines.
The strategic implications are stark for both Wall Street titans. For JPMorgan, it's an opportunistic expansion. The acquisition further tightens CEO Jamie Dimon's grip on U.S. consumer credit, adding a high-profile, digitally integrated product to its already formidable lineup. For Goldman, it marks the end of a bruising effort to build a business that was, in the end, ill-suited to its culture and risk profile.
From a market perspective, Goldman Sachs, with a market capitalization of approximately $289 billion, has been navigating a complex environment. The stock has traded in a wide range over the past year, from a low of $432 to a high near $961. The current analyst consensus is largely neutral, with 15 of 25 analysts rating the stock a "Hold," suggesting that investors may be waiting for more clarity on the firm's post-consumer strategy before turning more bullish.
With the Apple Card off its books, Goldman can now devote its resources to its core advisory, trading, and wealth management franchises. The fate of the remaining pieces of its Marcus brand, primarily its online savings accounts and personal loans, remains a key question for investors as the bank completes its strategic unwinding.