Goldman Sachs extends $10B in Apple Card credit over first month
According to regulatory filings made public this week, Apple Card financial partner Goldman Sachs said it doled out about $10 billion in credit lines for the Apple branded credit card in a little over one month.
Considering the fast pace at which Goldman is issuing credit for Apple Card, the present tally is likely much higher.
Apple Card's customer base carried a collective $736 million in loan balances at the end of the reporting period. As noted in today's report, calculating a card's success on loan figures is a difficult task, as competing issuers rarely break out performance on a per-card basis. That said, Goldman in October declared Apple Card to be the "most successful credit card launch ever."
"Since August, we've been pleased to see a high level of consumer demand for the product," David Solomon, CEO of Goldman Sachs, said of Apple Card at the time.
Apple CEO Tim Cook echoed Solomon's plaudits in an earnings conference call on Wednesday, but added a caveat, saying the launch was the most successful in U.S. history.
Significant capital layouts went into the development and debut of Apple Card, which marks not only the first card for Apple, but also Goldman's Marcus consumer banking division. Analysts in August estimated the bank is spending some $350 to acquire each Apple Card user.
Prior to launch, Goldman CFO Stephen Scherr said the company was intentionally slowing growth of unsecured personal loans under the Marcus brand to protect against exposure from Apple Card. The bank earmarked reserves representing 2.7% of existing credit card loans as it feels out customer behavior, the report said.
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