Goldman Sachs may lose money on the Apple Card in the next recession


My new Apple Card

Todd Haselton | CNBC

Goldman Sachs may get stung by rising loan losses on the Apple Card in the next economic downturn, according to Nomura analysts.

The much-hyped credit card, which Goldman began to make available last week, has no fees, the industry’s lowest interest rate range for comparable cards, and a mandate to approve as many iPhone users as possible, according to a report Wednesday from analysts led by Bill Carcache.

That leads Carcache to one conclusion: “The Apple Card portfolio may generate lower revenues and face higher loss content relative to the industry average.” 

In his analysis, which assumes that Goldman spends $350 to acquire each new user, the bank…


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