JPMorgan Chase profits dip after taking on Apple Card business

The handoff of Apple’s credit card business is already leaving a visible mark on bank earnings, underscoring how costly large-scale consumer finance transitions can be. JPMorgan Chase reported a decline in fourth-quarter profits as it absorbed the financial groundwork required to become the new issuer of Apple Card.

According to figures cited by The Wall Street Journal, JPMorgan’s Q4 profit slipped to roughly $13 billion, a year-over-year drop of about 7 percent. While slower deal activity weighed on investment banking revenue, the most significant impact came from a large reserve the bank established in connection with Apple Card.

Rather than reflecting current losses, the charge represents money set aside to cover potential future defaults on Apple Card balances. The move follows JPMorgan’s agreement to take over the program after Goldman Sachs exited a partnership that had struggled to turn profitable. Goldman’s consumer push, which included Apple Card and a separate card program with General Motors, reportedly leaned toward customers with weaker credit profiles, increasing long-term risk.

By the time negotiations began for Goldman to unwind its Apple deal, unpaid Apple Card balances had grown into the tens of billions of dollars, far eclipsing exposure tied to its GM card. JPMorgan’s reserve, estimated at more than $2 billion, reflects that inherited risk and reduced earnings per share for the quarter.

Despite the short-term hit, analysts have largely characterized JPMorgan’s broader performance as solid. Full-year revenue continued to climb, and profits for 2025 remained near historic highs, even if they fell slightly short of the bank’s record-setting results from the prior year.

The episode highlights the financial complexity behind high-profile tech and banking partnerships. While Apple gains a new, more stable banking partner, JPMorgan’s results show that stepping into a massive consumer credit program comes with immediate costs before any long-term benefits can materialize.