8-K: American Express Delinquency and Write-off Data Released

American Express Company has disclosed preliminary delinquency and write-off statistics for its U.S. Consumer and Small Business Card balances for the periods ending April, May, and June 2026.

Summary

• American Express Company (AXP) has released preliminary delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card balances held for investment.
• For the three months ended June 30, 2026, U.S. Consumer Card balances were $113.8 billion, with 30-day delinquencies at 1.1% and a net write-off rate of 1.8%.
• U.S. Small Business Card balances for the same period were $45.9 billion, with 30-day delinquencies at 1.4% and a net write-off rate of 2.4%.
• The total card balances held for investment for both segments combined were $159.7 billion as of June 30, 2026.
• A sale of previously written-off balances in June 2026 reduced the net write-off rates by approximately 0.3% for U.S. Consumer and 0.1% for U.S. Small Business portfolios.
• Data for the American Express Credit Account Master Trust shows an ending total principal balance of $25.2 billion for June 2026, with an annualized default rate, net of recoveries, of 0.7%.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, as the preliminary credit performance metrics are stable and show improvement in key areas in June, despite the inherent risks in credit portfolios.

Positives

• The net write-off rate for U.S. Consumer Card balances decreased to 1.4% for June 2026, down from 2.0% in May and 2.1% in April.
• The annualized default rate for the American Express Credit Account Master Trust in June 2026 was 0.7%, a significant decrease from 1.2% in May and 1.3% in April.
• The sale of previously written-off balances in June 2026 positively impacted the reported net write-off rates.

Negatives

• The net write-off rate for U.S. Small Business Card balances remained relatively stable, at 2.3% for June 2026, compared to 2.6% in May and 2.4% in April.
• While improving in June, the 30-day past due percentage for U.S. Consumer Card balances was 1.1% for June 2026, consistent with May and slightly down from 1.2% in April.

Risks

• The filing does not explicitly detail future risks, but the presented delinquency and write-off rates are indicators of potential credit risk in the portfolios.
• Variability in credit performance can occur due to factors like the number of days in a month, seasonality, and timing of information from third parties.

Future Outlook

The filing does not contain specific forward-looking statements or guidance. It presents historical delinquency and write-off data.

Industry Context

StockSavvy.ai notes that the release of delinquency and write-off statistics is a standard practice for credit card issuers to provide transparency on portfolio health. These metrics are closely watched by investors as indicators of economic conditions and credit risk management effectiveness.

Comparison to Industry Standards

• Industry benchmarks for credit card delinquency and write-off rates vary significantly by economic cycle and issuer's risk appetite. However, for the period ending June 30, 2026, American Express's reported U.S. Consumer 30-day delinquency rate of 1.1% and net write-off rate of 1.4% (adjusted) appear to be within or below typical ranges for a prime issuer during a stable economic period.
• Competitors like Visa and Mastercard do not directly report these specific portfolio-level delinquency and write-off rates in the same format, as their business models are primarily transaction-based rather than direct lending. However, financial institutions with direct lending portfolios, such as Discover Financial Services or Capital One, would have comparable metrics that investors would use for comparison.

Stakeholder Impact

• Shareholders: The stable credit performance metrics are generally positive for shareholders, indicating sound risk management and a healthy underlying loan portfolio.
• Creditors: The data suggests a low risk of default on outstanding balances, which is favorable for creditors.
• Customers: While not directly impacted by this filing, the company's ability to manage credit risk influences its product offerings and credit availability.

Next Steps

• Investors will continue to monitor future 8-K filings for updated delinquency and write-off statistics.
• Further analysis will be conducted on subsequent Form 10-D reports from the American Express Credit Account Master Trust for more detailed securitized portfolio performance.

Key Dates

Keywords

American Express, AXP, Delinquency Rates, Write-off Rates, Credit Performance, Card Balances, Consumer Credit, Small Business Credit