Originally Posted by
mikesyr18
Give me a break. The actual company is JP Morgan, and their stock is up $30 a share this year.
If you want "Chase" to get rid of high end cards, they would have to get rid of both the JP Morgan Reserve and the Sapphire Reserve, which won't happen.
I would say Chase is doing pretty well, even when they've lost money from these cards.
The credit card business only contributes a small portion of the bank's profit if you even read the 10Q and 10K now you are talking about stock price.
JP Morgan Reserve card's customer base is MUCH smaller than the Sapphire Reserve. Chase wants a much bigger piece of the high end market than the JP Morgan Palladium currently has. That is the reason to introduce the Sapphire Reserve because it cannot grow the Palladium meaningfully.
The name change on the Palladium should be a story-telling to you that why Chase wants to introduce the "Reserve" line of cards.
Talk about high end market - just take a look of the AMEX Plat card line-up - you have the generic Plat card, the MB Plat and the card for Ameriprise customers though seems everyone can get it for example But the Schwab's Plat and the Morgan Stanley Plat definitely are only for the folks that actually have a high investment assets in the respective institutions, no less than the JP Morgan Palladium, sorry, the now "Reserve" card.
So the AMEX High End market is a much stronger line up than Chase's JP Morgan Palladium then the new Sapphire Reserve which is not even a year old and already Chase has to think about cut backs.