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

2 weeks ago

2 minutes read

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

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

The change is expected to take place in January 2028. In new comments this week, Chase revealed why he thinks it will be better to manage Apple Card than Goldman Sachs.

The latest in Apple Card + Chase

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

The main reason for the loss, however, is that the Apple Card has a much higher rate of subprime borrowers than most credit cards. According to the figures quoted by The Wall Street JournalApple Card’s subprime lending rate is 34%, higher than Chase (15%) and Capital One (31%).

This also leads to a higher unreliability rate for the Apple Card at 4% compared to the industry average of 3.05%. Goldman also has a total payout ratio of 2.93%, double that of Chase and Bank Of America.

Reports also say that Goldman Sachs is less aggressive (and less successful) in recovering debt than other banks.

In comments this week at the launch of the Chase Company’s 2026 review, CFO Jeremy Barnum elaborated on the bank’s decision to take on the Apple Card partnership.

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

“Since Apple Card, we’ve had some questions about the very high percentage of subprime 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 grow meaningfully.

“The most important point is that we are no strangers to subprime, so we feel confident that we have the data, experience, and capabilities necessary to successfully assemble a portfolio.”

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

The big question, of course, is what changes Chase might make to Apple Card. There are still a lot of unknowns about this change, so it remains to be seen whether or not Chase will be able to use the Apple Card’s big selling points in an attempt to make a profit.

What are your thoughts on Apple Card’s move to Chase? Are you optimistic about change? Let us know down in the comments.

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