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That was expected. High initial cost. They'll recoup if people keep the card past one year.
Credit tranches take three years to bake. All the expenses are front loaded (plastic, customer onboarding, customer questions/complaints, chargeoff, etc.). All the money this card makes next year, goes into paying down the expenses of the next tranche. They will show loan loss reserves continue to go up because they are booking all these new reserve accounts. Jamie and his team will be just fine.
Those are some cost metrics. My point was less about the metrics, and more to say that JPM will make a pile of money on the reserve card. I assumed OP was suggesting that the rewards on the reserve card were so good that JPM lost money. I am pointing out that all new credit card tranches cost companies money because they don't have previous tranches to pay for the new ones.
Plot twist: he says this so that people can sign up for the card thinking that it will be cut off soon. And JP earns $200 million.
K1 are those metrics bank use to generate cost?
JPM says it'll take 5.5 to be profitable on this card
They also made $5b profit this past quarter. Relaxxxxxx.