Business Insider recently reported that Goldman Sach lost more than $1.2 billion in 2022 because of the Apple Card.

Goldman Sachs’ consumer credit department had a loss of $1.2 billion last year for nine months, and its Platform Solutions believed that it was due to loan-loss provisions that were connected with the Apple Card. The only data disclosure the company announced was a $1.3 billion loss from the beginning until the middle of 2019.

Platform Solutions executives maintain a level of optimism by saying that the department might break even in the year 2025. Goldman Sachs invested heavily in the launch of the Apple Card and consumer services, with numbers saying that the company spent $1.3 billion and $350 on consumer services and acquiring new Apple Card customers, respectively.

Analysts tag competitive interest rates and the absence of fees as to why Apple Card faces higher losses and lower revenues compared to the industry average.