Goldman Sachs announced a definitive agreement to transfer its Apple Card program to JPMorgan Chase, a deal that will move approximately $20 billion of consumer‑credit balances off Goldman’s books. The transaction includes a discount of more than $1 billion, reflecting Goldman’s eagerness to exit a loss‑making portfolio. The transfer is expected to take roughly 24 months and is subject to regulatory approval, meaning the final completion will occur around early 2028.
The sale removes a long‑running loss center that has weighed on Goldman’s profitability since the program’s launch in 2019. Management estimates the transaction will lift Q4 2025 earnings per share by $0.46 and release $2.48 billion of loan‑loss reserves, offsetting the $2.2 billion provision that JPMorgan will record for credit losses on the acquired portfolio. By shedding the Apple Card, Goldman can reallocate capital and talent to its higher‑margin investment banking and wealth‑management businesses.
JPMorgan’s rationale for acquiring the portfolio is to expand its U.S. credit‑card footprint and deepen its partnership with Apple. The portfolio’s higher subprime exposure and delinquency rates mean JPMorgan will need to set aside a significant credit‑loss provision, but the scale of the acquisition aligns with its strategy to grow its consumer‑lending business and leverage its existing technology infrastructure.
Regulatory scrutiny has followed the program’s history. In October 2024, the Consumer Financial Protection Bureau fined Goldman $90 million for account‑management practices related to the Apple Card. The transition to JPMorgan will involve a 24‑month handover period, during which both banks will coordinate on customer communication, data migration, and compliance oversight.
David Solomon, Goldman’s chairman and CEO, said the transaction “substantially completes the narrowing of our focus in our consumer business” and that the firm will continue to support customers through the transition while concentrating on its core franchises in global banking and asset management. The deal signals a decisive shift away from consumer lending and a renewed emphasis on the high‑margin segments that drive Goldman’s long‑term growth.
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