JPMorgan profit takes a hit as it builds $2.2B reserves for Apple card deal

Published: Tuesday, January 13, 2026 at 1:47 pm

JPMorgan Profit Dips Amid Apple Card Deal Preparations

JPMorgan Chase reported a decrease in its quarterly profit, primarily due to a $2.2 billion reserve established in connection with its agreement to take over the Apple credit card partnership. The bank's earnings for the fourth quarter of last year reached $13 billion, or $4.63 per share, a decrease from $14 billion, or $4.81 per share, recorded in the same period the previous year.

However, excluding the impact of the Apple card deal, JPMorgan's quarterly profit actually increased to $14.7 billion, or $5.23 per share, driven by strong trading performance. Shares of the bank saw a modest rise before the market opened.

CEO Jamie Dimon noted the resilience of the U.S. economy, citing a softening labor market that has not yet worsened, sustained consumer spending, and the general health of businesses. He attributed these conditions to ongoing fiscal stimulus, deregulation, and the Federal Reserve's monetary policy. Despite this positive outlook, Dimon expressed caution, highlighting potential risks from complex geopolitical conditions, persistent inflation, and elevated asset prices.

The bank's executives have observed that consumers, supported by a robust job market and rising wages, have maintained borrower demand and kept loan payments stable. Market revenue at JPMorgan experienced a significant increase in the fourth quarter, with fixed income up 7% and equity surging 40%.

The $2.2 billion reserve is intended to act as a safety net to cover potential losses from the influx of new credit card customers from Apple. This move reflects a cautious approach to the new portfolio. The deal comes at a critical time for the credit card industry, which could face significant changes if a proposal to cap interest rates at 10% moves forward.

BNN's Perspective: While the dip in profit is noteworthy, the underlying strength of JPMorgan's trading performance and the overall economic resilience, as highlighted by the CEO, offer a balanced perspective. The bank's proactive approach to managing risk, particularly in the context of the Apple card deal, demonstrates a responsible approach to navigating potential challenges in the credit card market. The uncertainty surrounding interest rate caps adds a layer of complexity that the bank is clearly preparing for.

Keywords: JPMorgan, Apple Card, Credit Card, Profit, Earnings, Reserve, Economy, Market, Trading, Interest Rates, Jamie Dimon

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