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

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Valued Contributor

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

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

  • The Apple Card from Goldman Sachs will be “highly sensitive” to rising net charge offs, and thanks to thin margins, the bank will start to lose money if losses reach about 8%, according to analysts led by Nomura’s Bill Carcache.
  • “We would expect Goldman Sachs to face its fair share of volatility in the next recession,” Carcache says.
  • Up next for Goldman and Apple could be a joint debit card, the analyst speculates.

















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Message 1 of 7
6 REPLIES 6
Community Leader
Valued Contributor

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

It will be  interesting to see how it goes.  They have been rather generous with giving out cards and "appear" to have very favorable approval odds.

Message 2 of 7
New Contributor

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

For what I have read, or Goldman is pretty desperate trying to grab market share in the credit card market, or it just does not make a lot of sense. The terms are too generous, and taking in count the number of approvals, something does not match here. But if a recession happens soon we can be sure that Goldman will be one of the first to feel it.

Message 3 of 7
Frequent Contributor

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


@Medic981 wrote:

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


I mean, based on the posts in the Approvals forum, they're giving them away like candy. They know that statistically a certain % of people will go into debt with them and if they were smart they factored in our regular recessions. I'm surprised things didn't start declining sooner.


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Message 4 of 7
Regular Contributor

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

Well they're hedging their bets by not accepting me. (Excellent payment and utilization, decently high spenderr, but short history)






Message 5 of 7
New Member

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

it all did seem too good to be true in a way. I haven't gotten the apple card myself but I will definitely be interested to see how it all plays out

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Message 6 of 7
Regular Contributor

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

I wonder if we’ll start seeing limits slashed?
Message 7 of 7
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