JP Morgan Chase's Q4 profits dropped 7%, chiefly because of it starting the funding process to take over running Apple Card.
After years of Goldman Sachs losing money on the Apple Card, JP Morgan Chase has taken over the deal, and consequently taken a hit to its profits.
According to the Wall Street Journal, JP Morgan Chase's profits fell 7% to $13 billion, for the fourth quarter of 2025. There were reasons including an unexpected fall in investment banking fees, but the single largest issue was Apple Card.
It's not, though, that JP Morgan is now facing the same problems that made for an acrimonious partnership between Apple and Goldman Sachs. Rather, it's that taking on Apple Card involved a $2.2 billion charge.
This charge is for potential future loan losses. It's the company setting aside money to cover Apple Card loans that they expect will not be paid.
That's because Goldman Sachs is said to have taken on customers with lower credit scores, and therefore, more defaults. That was on both the Apple Card and its other failed consumer credit card program with General Motors.
During the initial 2024 negotiations for Goldman Sachs to exit its Apple deal, it was reported that as-yet unpaid Apple Card balances were $17 billion. At the time, the balances outstanding on the GM card were $2 billion.
How this affects JP Morgan Chase
This Apple Card-related charge pulled down the Q4 results by 60 cents per share. JP Morgan Chase also missed its own estimate for investment bank fees, and reports that this is because certain deals were taking longer to close than expected.
Nonetheless, otherwise analysts say that the quarter was strong overall. Over the whole of 2025, revenue was up 3% to $182.4 billion, and profit was $57 billion.
The company had earned more in 2024, though. And that year's figure of $58.5 billion was reportedly a record for any US bank.
