JPM to Take Over Apple Card, Plans to Record a $2.2B Provision in Q4

JPMorgan Chase & Co. JPM and Apple Inc. AAPL recently announced that JPM will become the new issuer of Apple Card, replacing Goldman Sachs GS. The transition is expected to be completed in approximately 24 months, subject to customary regulatory approvals.JPM expects to recognize a $2.2 billion provision for credit losses in the fourth quarter of 2025 related to the forward purchase commitment of the Apple Card portfolio. While the transaction will not close for roughly two years, the provision reflects prudent balance sheet positioning ahead of the portfolio transfer.Under the terms of the agreement, the company will acquire the Apple Card loan portfolio, which is estimated to bring over $20 billion in card balances onto the JPMorgan Chase platform once the transition is finalized.Background of the Apple Card TransitionApple Card was introduced in 2019 in partnership with Goldman Sachs, marking the latter’s entry into the consumer credit card space. In 2023, GS signaled its intention to exit the partnership amid mounting losses in its consumer banking business.In late 2023, AAPL reportedly explored options to transition the program to a new issuer, with JPMorgan emerging as a natural successor given its existing relationship with Apple through Apple Pay and its large transaction presence at Apple retail outlets. As part of its broader strategic shift to scale back consumer banking operations, GS has since agreed to transition the Apple Card program to JPMorgan.Rationale Behind JPMorgan’s Apple Card AgreementThe agreement strengthens JPM’s position in the U.S. credit card market by expanding its co-brand portfolio and adding scale to its consumer payments business. By onboarding a large, established cardholder base, the company is expected to accelerate card transaction volumes and expand its U.S. consumer reach.Allison Beer, chief executive officer of Card & Connected Commerce at JPMorgan Chase, stated, “Apple is an iconic brand recognized globally for its innovation, design excellence and commitment to delivering exceptional customer experiences.” Beer further added, “We share a commitment to supporting consumer financial health, and we’re proud to deepen our relationship by welcoming them as the newest partner in our industry-leading co-brand credit card program. We’re excited to innovate together in the future.”JPMorgan’s card segment has been witnessing steady growth over the past few years, adding millions of new accounts annually, increasing customer engagement and broadening product offerings across consumer and business segments. In the first nine months of 2025, card sales volume increased 7.6% year over year. The addition of the Apple Card portfolio further enhances this momentum, bringing a sizable and strategically valuable base of customers and balances that reinforce the company’s long-term growth trajectory in cards.JPM’s Zacks Rank & Price PerformanceOver the past six months, shares of JPMorgan have gained 15.6% compared with the industry’s 22.6% growth.Image Source: Zacks Investment ResearchCurrently, JPM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks