JPMorgan’s profit dips as it preps for Apple card portfolio

• Key insight: JPMorgan would have brought in $5.23 in earnings per share, beating analyst estimates, if it hadn’t logged the credit provision in the fourth quarter.
• What’s at stake: The move comes as the Trump administration has called for credit card issuers to cap interest rates at 10%, a massive shift for the industry.
• Forward look: CEO Jamie Dimon said the economy has been resilient, in part due to deregulation and the Federal Reserve’s monetary policy.

JPMorganChase grew business at a slightly slower pace in the final quarter of 2025, the company announced Tuesday, but CEO Jamie Dimon said that the economy has continued to remain resilient.

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The largest bank in the country reeled in $13 billion in net income during the fourth quarter, or $4.63 in diluted earnings per share, missing the consensus analyst estimate of $4.91. But the miss was largely due to a one-time $2.2 billion provision for credit loss related to JPMorgan’s latest move to tread deeper into the credit card business.

Last week, the company said it will replace Goldman Sachs as the banking platform for Apple’s $20 billion portfolio of credit card offerings.

“We remain committed to investing our capital to drive future growth, and the Apple Card is one example of patient and thoughtful deployment of our excess capital into attractive opportunities,” Dimon said in a prepared statement Tuesday.

The Apple card business equates to about 8% of the company’s total credit card loans at the bank.

JPMorgan said that in connection with the transition, which will take 24 months to complete, it will take the provision for credit losses in the fourth quarter. Excluding the Apple card deal, JPMorgan’s reserve build was flat from the prior quarter, earning $5.23 per share.

But the credit card industry in general is entering a rough patch.

Last week, President Donald Trump called on credit card issuers to cap interest rates at 10%, marking a massive shift to the economics of the business. Most of JPMorgan’s dozens of credit cards offer rates between about 18% and 28%.

JPMorgan reported a net interest income for the quarter of $23.9 billion, beating its own guidance of $25.5 billion. That excess was attributed to higher deposit balances, as well as higher revolving balances in its card business, though offset somewhat by the impact of lower rates.

Dimon painted an overall rosy picture for the bank’s go-forward outlook.

“The U.S. economy has remained resilient,” Dimon said in a prepared statement. “While labor markets have softened, conditions do not appear to be worsening.”

He added that consumers are still spending and businesses “generally remain healthy.”

“These conditions could persist for some time, particularly with ongoing fiscal stimulus, the benefits of deregulation and the Fed’s recent monetary policy,” Dimon said. “However, as usual, we remain vigilant, and markets seem to underappreciate the potential hazards—including from complex geopolitical conditions, the risk of sticky inflation and elevated asset prices.”

While the Trump administration has made moves to make the regulatory environment friendlier — particularly with respect to minimum capital requirements — big banks like JPMorgan have also taken some lumps from the government.

JPMorgan, which has $4.4 trillion of assets, is under investigation for potentially unlawful debanking of customers — part of an executive order President Trump signed last August launching a probe into whether financial institutions offboarded customers based on their political or religious beliefs.

The Office of the Comptroller of the Currency said in December that it had found in a recent investigation that JPMorgan, along with eight other large banks, made “inappropriate distinctions among customers” between 2020 and 2023.

Some bankers and analysts have agreed that debanking is an issue, but have pointed blame to regulatory pressure that has pushed companies out of certain businesses.

And while Dimon noted that monetary policy is moving in a positive direction for JPMorgan, friction between the administration and the Fed entered new ground this week.

The Trump administration launched a criminal investigation into Federal Reserve Chair Jerome Powell over his testimony related to renovations of the Fed’s headquarters. The Justice Department served grand jury subpoenas to the Fed on Friday.

Dimon has previously defended Powell, and the Fed’s independence.

“I think the independence of the Fed is absolutely critical,” Dimon said on a call with journalists last July. “Playing around with the Fed can have adverse consequences, the absolute opposite of what you might be hoping for.”

Powell said in a video statement on Sunday night that he thinks the unprecedented potential indictment is “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”

Trump has repeatedly disparaged Powell, primarily regarding the Fed’s monetary policy. Trump told NBC News on Sunday that he didn’t have advance knowledge of the DOJ’s subpoenas.