JPMorgan Chase, already the largest credit card issuer in the U.S., is nearing a deal to take over the Apple Card portfolio from Goldman Sachs, people familiar with the matter told CNBC.
The banks declined to comment to CNBC. Apple didn’t immediately return request for comment.
Negotiations between JPMorgan and Apple have progressed as earlier contenders for the card including American Express, Synchrony and Barclays have fallen to the side, said the people, who declined to be identified speaking about the agreement.
A deal for JPMorgan to take over the Apple Card and its huge book of loans would further burnish the bank’s reputation as a leader in American finance. With its stable of JPMorgan-branded and co-branded cards, the Jamie Dimon-led company is the country’s largest issuer by purchase volume.
For Goldman, offloading the Apple Card business would help it move past a rocky chapter for CEO David Solomon. Goldman entered the credit card business with great fanfare in 2019 by beating out other issuers for the Apple Card.
But the high growth rates of the card, coupled with accounting requirements that forced it to front-load reserves for future losses, caught Goldman flat footed. Solomon made the call to divest the business, which was set to run until at least 2029, partly out of concern that loan losses would rise in a recession, according to one of the sources.
The Wall Street Journal first reported on the advanced talks.
This story is developing. Please check back for updates.
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