JP Morgan Chase saw its Q4 profits drop 7%, largely due to starting the funding process to run the Apple Card. This move follows years of Goldman Sachs' struggles with the card, which led to significant losses. JP Morgan's profit fell to $13 billion, with Apple Card being the primary factor. The bank set aside $2.2 billion to cover potential loan losses, reflecting the risks associated with taking over the card's operations.

The transition from Goldman Sachs to JP Morgan marks a pivotal shift in Apple's financial partnerships. Goldman Sachs had faced challenges due to lower credit scores among Apple Card users, leading to higher default rates. This issue was compounded by its troubles with the General Motors consumer credit card program. JP Morgan's move indicates Apple's strategy to stabilize its financial services arm by partnering with a more robust banking entity.

JP Morgan's decision to absorb the Apple Card's risks is a calculated move, despite the short-term impact on profits. The charge for potential losses pulled down Q4 results by 60 cents per share. Analysts, however, view the overall quarter as strong, with 2025 revenue up 3% to $182.4 billion and profit at $57 billion. This shift may signal a more stable future for Apple Card, benefiting both Apple and its users.