JPMorgan to Acquire Apple Card Portfolio From Goldman Sachs
The deal will see JPMorgan take on roughly $20 billion in credit card balances, marking a decisive exit for Goldman from its high-profile but troubled consumer banking venture.
JPMorgan Chase has reached an agreement to acquire the Apple Card credit card portfolio from Goldman Sachs, a landmark deal that reshapes the landscape of consumer finance and technology partnerships. The move will transfer a portfolio with approximately $20 billion in outstanding balances to the nation's largest bank, solidifying its dominance in the credit card market.
The deal marks the culmination of Goldman Sachs’s strategic retreat from its consumer banking ambitions, a venture that proved costly for the Wall Street investment giant. For JPMorgan, the acquisition represents a significant strategic victory, adding a premier, tech-forward brand and a valuable, high-spending customer base to its already massive card business. While financial terms were not immediately disclosed, the agreement concludes a multi-year effort by Goldman to offload the partnership.
Shares of JPMorgan Chase (NYSE: JPM) traded around $327 late Wednesday, while Goldman Sachs (NYSE: GS) was near $941.
Goldman's Retreat from Main Street
The Apple Card, launched with much fanfare in 2019, was the centerpiece of Goldman Sachs's push to build a mainstream consumer business under its Marcus brand. However, the high-profile partnership with Apple quickly became a financial drain. The venture reportedly accumulated over $1 billion in losses for Goldman due to higher-than-expected loan loss provisions and the high costs of servicing the portfolio.
The exit allows Goldman Sachs to refocus on its traditional strengths in investment banking, trading, and asset management, a strategic pivot accelerated under CEO David Solomon. Investors had grown increasingly skeptical of the consumer strategy, and the divestiture is likely to be viewed as a prudent step to shore up the firm's profitability and end a period of strategic uncertainty.
A Strategic Victory for JPMorgan
For JPMorgan, a financial institution with a market capitalization exceeding $900 billion, the acquisition is a calculated expansion of its core strengths. As the largest credit card issuer in the United States, JPMorgan possesses the scale, underwriting expertise, and risk management infrastructure that Goldman lacked. The deal was first reported by The Wall Street Journal, signaling a major win for the bank.
Adding the Apple Card brings 5 to 12 million cardholders into the JPMorgan ecosystem, presenting substantial opportunities for cross-selling other products, from mortgages and auto loans to wealth management services. The deal also deepens JPMorgan’s relationship with Apple, one of the world's most valuable companies, potentially paving the way for future collaborations in the evolving fintech space.
"JPMorgan Chase is taking over Apple's embattled card program and savings accounts," noted one report, highlighting the comprehensive nature of the handover.
Apple Secures a Stable Partner
From Apple's perspective, the transition to JPMorgan ensures the stability and long-term viability of its flagship financial product. The partnership with Goldman had reportedly become strained amid the program's financial struggles. By partnering with a seasoned and deeply capitalized institution like JPMorgan, Apple secures a robust platform for the future growth of the Apple Card and its associated high-yield savings account.
The shift to JPMorgan, a bank with decades of experience in co-brand partnerships, provides Apple with a reliable operator capable of managing the complex credit and regulatory demands of a large-scale card portfolio. This move allows Apple to continue expanding its services division, a key growth driver for the tech giant, without the distraction of a struggling banking partner.
The transition of the Apple Card program from a Wall Street upstart to an established banking behemoth underscores the immense challenges and capital requirements of consumer lending. As confirmed by reports in Bloomberg, the takeover positions JPMorgan to leverage its scale where Goldman could not, bringing the chapter of Goldman's ambitious foray into consumer credit to a definitive close.