JPMorgan Chase reported a 7% drop in profit for the fourth quarter of 2025. The main reason was the bank’s move to take over the Apple Card program from Goldman Sachs. That decision forced JPMorgan to book a large one-time charge, which cut into earnings.
After years of losses at Goldman Sachs, JPMorgan agreed to run Apple Card. The deal brought new business, but it also came with risk. To prepare for possible unpaid loans, JPMorgan set aside a large reserve. That step alone weighed heavily on the quarter.
Apple Card Hit Earnings
According to The Wall Street Journal, JPMorgan’s profit fell to $13 billion for the quarter. While investment banking fees also slipped, the biggest drag came from Apple Card.
The bank recorded a $2.2 billion charge tied to potential future loan losses. In simple terms, JPMorgan put money aside for Apple Card balances it does not expect to collect. This move cut earnings by about 60 cents per share.
The risk stems from the way Goldman Sachs had managed the program. Reports say Goldman approved many customers with lower credit scores, which led to higher defaults. At the time Goldman exited the deal, unpaid Apple Card balances stood near $17 billion.
What Executives Said
JPMorgan said the Apple Card charge accounted for most of the profit decline. At the same time, the bank also missed its own forecast for investment banking fees because some deals did not close as planned.
“Consumers have money, there’s still jobs even though it’s weakened a little bit,” Chief Executive Jamie Dimon said on a call with analysts. We deal with the world we got, not the world we want,” he added, while warning about geopolitical risks.
Even with the weak quarter, JPMorgan’s full-year results remained solid. Revenue for 2025 rose 3% to $182.4 billion, and profit reached $57 billion. That figure came in just below the record $58.5 billion the bank posted in 2024.
In short, Apple Card hurt JPMorgan’s quarterly numbers, but it did not derail the company’s broader performance. The bank now carries the risk Goldman once held. How well it manages those loans will shape future results.
