TL;DR
JPMorgan Chase reported a 7% decline in fourth-quarter 2025 profit after taking a $2.2 billion charge tied to its deal to acquire the Apple Card program from Goldman Sachs. The charge, taken against roughly $20 billion in card balances, reduced results by about $0.60 per share.
What happened
JPMorgan Chase disclosed that its profit fell 7% in the fourth quarter of 2025, a slide the bank attributed in part to a one-time charge related to its agreement to acquire the Apple credit-card program from Goldman Sachs. The bank set aside an additional $2.2 billion to cover possible future loan losses on approximately $20 billion of outstanding Apple Card balances; JPMorgan said the move reduced quarterly results by roughly $0.60 per share. The Wall Street Journal reported the details. Although Apple Card remains a popular consumer product, the program has produced losses for its original issuer, Goldman Sachs. Chase is not scheduled to formally take over the Apple Card program for another two years and has said it is preparing for potential future losses. Apple has said it expects continuity for current card users but has left specific changes largely unspecified.
Why it matters
- A large reserve for loan losses can materially reduce a bank’s reported earnings and shareholder returns.
- The charge highlights the financial risks banks assume when taking on co-branded credit-card portfolios.
- The move signals continued instability in the Apple Card partnership model after challenges at the previous issuer.
- Upcoming operational changes or financial impacts could affect cardholders, investors and competitive dynamics in consumer credit.
Key facts
- JPMorgan Chase reported a 7% drop in profit in Q4 2025.
- The bank took a $2.2 billion charge tied to acquiring the Apple credit-card program from Goldman Sachs.
- The charge covers potential future loan losses on about $20 billion in Apple Card balances.
- JPMorgan said the charge reduced quarterly results by approximately $0.60 per share.
- The Wall Street Journal reported the financial details cited by JPMorgan.
- Goldman Sachs remains the current issuer but has struggled with the Apple Card program.
- Chase is not officially taking over Apple Card for another two years, according to the report.
- Apple has said it expects continuity for existing Apple Card users, with further details to come.
What to watch next
- Apple’s announced plans for any product or policy changes to Apple Card — not confirmed in the source.
- Whether JPMorgan records additional charges or adjustments in future quarters as it prepares for the takeover — not confirmed in the source.
- How Chase intends to integrate or modify the Apple Card program operationally and on rewards — not confirmed in the source.
Quick glossary
- Issuer: A bank or financial institution that provides credit cards and is legally responsible for the card account.
- Charge (accounting): A one-time expense or reserve recorded on a company’s financial statements, often to cover anticipated losses.
- Loan loss reserve: Funds that a lender sets aside to cover potential defaults on loans or credit balances.
- Co-branded credit card: A credit card issued by a bank in partnership with a retailer or brand, offering joint marketing and benefits.
Reader FAQ
Did JPMorgan already take over Apple Card?
Not confirmed in the source; the report says Chase is not officially taking over for another two years.
Why did JPMorgan’s profits fall in Q4 2025?
The bank took a $2.2 billion charge tied to the Apple Card acquisition and also saw a decline in investment banking fees, per the report.
Will Apple Card users see immediate changes?
Apple has emphasized continuity for existing users, but specific changes were not detailed in the source.
Was Apple Card profitable for Goldman Sachs?
The source states the product was not a success for Goldman Sachs and produced significant financial losses.
Report: Apple to fine-tune Gemini independently, no Google branding on Siri, more Marcus Mendes Jan 13 2026 Apple Card is already hurting JPMorgan Chase’s bottom line Ryan Christoffel | Jan 14…
Sources
- Apple Card is already hurting JPMorgan Chase’s bottom line
- JPMorgan Profit Falls on Investment-Banking Miss, Apple …
- JPMorgan earnings miss forecasts on Apple Card costs …
- JPMorgan profit beats estimates on trading boom, shares …
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