Chase explains why it won’t lose billions on Apple Card

23 hours ago 5 Back

Earlier this year, Apple officially confirmed that JP Morgan Chase will take over Apple Card from Goldman Sachs.

The transition is expected to occur in January 2028. In new comments this week, Chase revealed why it thinks it will fare better at managing Apple Card than Goldman Sachs.

The latest on Apple Card + Chase

As we’ve explained before, Goldman Sachs lost billions of dollars on its Apple Card business. There are several reasons for this, including that Apple Card is a no-fee card with a consumer-friendly software interface.

The primary reason for the losses, however, is that Apple Card has a dramatically higher subprime borrower rate than most credit cards. According to figures cited by The Wall Street Journal, Apple Card’s subprime borrowing rate is 34%, which is higher than Chase (15%) and Capital One (31%).

This also leads to a higher delinquency rate for Apple Card at 4% versus the industry average of 3.05%. Goldman also has a 2.93% net charge-off rate, double that of Chase and Bank Of America.

Reports have also said that Goldman Sachs is less aggressive (and less successful) at recovering charge-off debt than other banks.

In comments this week during Chase’s 2026 Company Update presentation, CFO Jeremy Barnum elaborated on the bank’s decision to take over the Apple Card partnership.

Barnum acknowledged the “relatively higher subprime percentage” in the Apple Card portfolio. Chase, however, is no stranger to this business and believes it has the infrastructure to integrate Apple Card into its portfolio, Barnum said:

“Starting with Apple Card, we’ve received some questions about the relatively higher subprime percentage in that portfolio. This segment already makes up about 15% of our current portfolio, and given the relative size of Apple Card, we don’t expect that number to increase meaningfully.

“The more important point is that we are not strangers to subprime, so we feel confident that we have the data, experience, and capabilities necessary to successfully integrate the portfolio.”

Reading between the lines, this seems like Chase reassuring investors it won’t lose billions on Apple Card like Goldman Sachs.

The biggest question, of course, is what changes Chase might make to Apple Card. There are still a bunch of unknowns about the transition, so it remains to be seen whether Chase might nerf some of biggest selling points of Apple Card in an attempt to turn a profit.

What are your thoughts on Apple Card moving to Chase? Are you optimistic about the transition? Let us know down in the comments.

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