JPMorgan Chase & Co.’s new Sapphire Reserve credit card will reduce the
bank’s profit by $200 million to $300 million in the fourth quarter,
according to Chief Executive Officer Jamie Dimon.
“The card has been doing great” and was embraced by consumers before the
bank did any marketing, Dimon said Tuesday at an investor conference in New
York. “Now we have to account for acquisition cost in that business.”
JPMorgan introduced the card in August with a 100,000-point sign-up bonus
for customers who spend $4,000 in the first three months. The points are
worth $1,500 in travel booked through Chase’s website. The cards, which
carry a $450 annual fee, were in such demand shortly after the launch that
the bank temporarily ran out of the metal it uses to make them.
JPMorgan is expected to post about $5 billion in profit this quarter,
according to the average estimate of analysts in a Bloomberg survey.
