JP Morgan Chase CFO Jeremy Barnum outlined why the bank expects to avoid the billions in losses that Goldman Sachs suffered with Apple Card. The transition from Goldman Sachs to Chase is set for January 2028 after Apple officially confirmed the change earlier this year. Barnum acknowledged Apple Card's 34% subprime borrower rate but expressed confidence in Chase's ability to manage the portfolio.

Goldman Sachs lost significant money on Apple Card due to its high concentration of subprime borrowers and higher delinquency rates compared to industry averages. Apple Card's 4% delinquency rate exceeds the industry average of 3.05%, while its 2.93% net charge-off rate is double that of major competitors like Chase and Bank of America. Reports indicate Goldman was also less aggressive at recovering charge-off debt than other banks.

Chase emphasized it already manages a substantial subprime portfolio, with such borrowers making up about 15% of its current credit card business. The bank believes its infrastructure, data capabilities, and experience in subprime lending position it to successfully integrate Apple Card without significant losses. While Chase appears confident about the financial aspects, questions remain about whether the bank might modify Apple Card's consumer-friendly features to improve profitability.