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.”
That 100,000-point bonus can’t be long for this world. Don’t cry for Chase, though:
JPMorgan is expected to post about $5 billion in profit this quarter, according to the average estimate of analysts in a Bloomberg survey.