JPMorgan Acquires Apple Credit Card Business from Goldman Sachs for Over $20 Billion
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Transaction Completion: JPMorgan will acquire the Apple credit card business for over $20 billion, marking the end of Goldman Sachs' consumer banking experiment that began in 2019, with the deal expected to close in approximately 24 months, further solidifying JPMorgan's leadership in the credit card market.
- Financial Impact: The transaction will require JPMorgan to book a $2.2 billion provision for credit losses in its fourth-quarter earnings; however, the acquisition comes at a discount exceeding $1 billion, showcasing JPMorgan's strategic flexibility in asset acquisition.
- Customer Retention: Customers will retain existing card benefits, and the product will continue to operate on the Mastercard network, which not only helps maintain customer loyalty but also enhances JPMorgan's competitive position in the consumer finance sector.
- Strategic Shift: Goldman Sachs expects a 46-cent per share earnings boost from this transaction, marking the completion of CEO David Solomon's strategic withdrawal from consumer finance that began in 2022, reflecting a renewed focus on core business operations.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
