8-K: American Express Q1 2026 Delinquency and Write-off Data

American Express Company has released preliminary delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans for the first quarter of 2026.

Summary

• American Express provided preliminary delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans held for investment for the months of January, February, and March 2026, and for the first quarter ended March 31, 2026.
• For U.S. Consumer Card Member loans, total loans were $97.5 billion as of March 31, 2026. The 30-day past due rate remained stable at 1.4% throughout the period. The net write-off rate (principal only) increased from 1.9% in January to 2.2% in March, averaging 2.0% for the quarter.
• For U.S. Small Business Card Member loans, total loans were $32.2 billion as of March 31, 2026. The 30-day past due rate was consistently 1.7%. The net write-off rate (principal only) saw a slight increase from 2.8% in January and February to 2.9% in March, averaging 2.8% for the quarter.
• Total Card Member loans held for investment for both segments combined were $129.7 billion as of March 31, 2026.
• The filing also includes preliminary data for the American Express Credit Account Master Trust, showing ending principal balances and default rates for the three months ended March 31, 2026.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing. While there are slight increases in write-off rates, they remain within manageable historical ranges, and delinquency rates are stable. The preliminary nature of the data also tempers definitive conclusions.

Positives

• The 30-day delinquency rate for U.S. Consumer Card Member loans remained stable at 1.4% for the first quarter of 2026.
• The 30-day delinquency rate for U.S. Small Business Card Member loans remained stable at 1.7% for the first quarter of 2026.
• The net write-off rate for U.S. Consumer loans, while increasing slightly, averaged 2.0% for the quarter, which is a manageable level for a credit card portfolio.
• The net write-off rate for U.S. Small Business loans, while increasing slightly, averaged 2.8% for the quarter, also within a reasonable range.

Negatives

• The net write-off rate for U.S. Consumer Card Member loans increased from 1.9% in January to 2.2% in March 2026.
• The net write-off rate for U.S. Small Business Card Member loans increased from 2.8% in January/February to 2.9% in March 2026.

Risks

• Potential for further increases in delinquency and write-off rates, particularly in the U.S. Small Business segment, could impact profitability.
• Economic downturns or increased unemployment could lead to higher default rates across both consumer and small business portfolios.
• Changes in loan portfolio mix, vintage, or aging could affect reported credit performance metrics.

Future Outlook

The filing does not contain specific forward-looking statements or guidance, but the presented statistics provide insight into the current credit environment for American Express's loan portfolios.

Industry Context

StockSavvy.ai notes that the slight uptick in write-off rates for American Express, while still within historical norms, warrants close monitoring given the current macroeconomic environment. Competitors in the credit card industry are also likely experiencing similar pressures on credit quality.

Comparison to Industry Standards

• While specific comparable companies are not named in the filing, the reported 30-day delinquency rates of 1.4% (Consumer) and 1.7% (Small Business) are generally considered healthy for the credit card industry, especially in a stable economic period.
• The net write-off rates of 2.2% (Consumer) and 2.9% (Small Business) for the quarter are also within typical ranges for credit card issuers, though the upward trend requires attention.
• The American Express Credit Account Master Trust's annualized default rate, net of recoveries, ranged from 1.1% to 1.3%, which is also in line with industry expectations for securitized credit card assets.

Stakeholder Impact

• Shareholders: The reported credit metrics are a key indicator of the company's risk management and profitability. A sustained increase in write-offs could negatively impact earnings.
• Creditors: Stable delinquency rates are positive for creditors, indicating a lower risk of default on outstanding balances.
• Customers: While not directly impacted by this filing, the company's management of credit risk influences its lending policies and product offerings.

Next Steps

• Monitor future filings (Form 10-D) for more detailed and finalized credit performance data.
• Observe trends in delinquency and write-off rates in subsequent quarters to assess the sustainability of the current credit environment.

Key Dates

Recommendation

The filing presents preliminary credit performance data showing a slight increase in write-off rates but stable delinquency rates. This suggests a normalization of credit conditions rather than a significant deterioration. While not a strong positive signal, it does not indicate a material negative event that would warrant a sell recommendation. Therefore, a 'hold' stance is appropriate pending further data and broader economic context.

Keywords

American Express, 8-K, Delinquency Rates, Write-off Rates, Credit Performance, Card Member Loans, U.S. Consumer, U.S. Small Business