The once-promising partnership between Goldman Sachs and Apple Card is now on shaky ground, with signs pointing to an early exit for Goldman Sachs. Despite their deal being set in stone until 2030, the financial giant is considering pulling the plug well in advance, as hinted by Goldman Sachs CEO David Solomon. During a recent earnings call, Solomon revealed that the continuation of their Apple Card collaboration seems increasingly unlikely.
The Apple Card, managed under Goldman Sachs’ platform solutions division, hasn’t exactly been the golden goose they had hoped for. In fact, the division reported a hefty net loss of $859 million in 2024, with the Apple Card contributing significantly to these losses. Solomon acknowledged that the partnership has negatively impacted the bank’s equity returns, dragging them down by 75 to 100 basis points last year, although improvements are anticipated in the coming years.
The relationship has been fraught with challenges, and insiders have shared that there was a sense of regret within Goldman Sachs about the Apple Card venture. The bank reportedly incurred a staggering $1.2 billion in losses in 2022, with an average cost of $350 to onboard each new customer.
As Goldman Sachs considers its exit, Apple is on the lookout for a new banking partner to keep the Apple Card afloat. There are whispers that JPMorgan Chase might step into the role, albeit with certain stipulations—such as paying less than the $17 billion full face value of Apple Card holders’ outstanding balances. While negotiations are likely underway behind closed doors, there’s no official word yet on the outcome. Keep your eyes peeled for updates on this unfolding financial saga, as new developments could emerge at any time.
