Goldman Sachs Exits Apple Card Program Expected to Boost Earnings Per Share in Q4

Summary

Goldman Sachs is exiting the Apple Card project, selling $20 billion in balances to JPMorgan Chase at a $1 billion discount, which is expected to increase its Q4 earnings by 46 cents per share TradingView.

Impact Analysis

Goldman Sachs’ decision to exit the Apple Card project and sell the balances to JPMorgan Chase is a clear signal of its strategic pivot away from consumer banking, which has been a costly venture for them. The timing is interesting, as it comes when Goldman is under pressure to improve profitability, and this move is expected to boost their Q4 EPS by 46 cents TradingView. This suggests a refocus on their core competencies in investment banking and asset management. For Apple, the transition to JPMorgan enhances their financial services credibility but is unlikely to significantly impact their stock, as the card’s contribution to revenue is minimal Talkmarkets+ 2. For investors, this move by Goldman could be seen as a positive step towards stabilizing earnings, but it also highlights the challenges in consumer finance. The broader implication is a potential shift in market sentiment towards more traditional banking strengths, possibly affecting sector rotations in financial stocks.