8-K: American Express Releases Delinquency and Write-Off Statistics for U.S. Consumer and Small Business Card Member Loans

American Express discloses delinquency and write-off rates for its U.S. Consumer and Small Business Card Member lending portfolios for November and December 2024, and January 2025, along with details on the American Express Credit Account Master Trust.

Summary

• American Express has released delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios.
• The data covers the months ended January 31, 2025, December 31, 2024, and November 30, 2024.
• Effective December 1, 2024, $758 million of Card Member loans related to the Lowes small business cobrand portfolio were reclassified as held for sale.
• These loans are excluded from the January 2025 and December 2024 delinquency and write-off statistics.
• For U.S. Consumer Card Member loans in January 2025, total loans were $89.4 billion, with 1.4% being 30 days past due, and a net write-off rate of 2.3%.
• For U.S. Small Business Card Member loans in January 2025, total loans were $30.1 billion, with 1.6% being 30 days past due, and a net write-off rate of 2.5%.
• The total Card Member loans for U.S. Consumer and U.S. Small Business combined were $119.5 billion in January 2025.
• The report also includes credit performance data for the American Express Credit Account Master Trust, including ending total principal balance, defaulted amount, annualized default rate, and total 30+ days delinquent amounts.

Sentiment

Score: 6

Explanation: The sentiment is neutral as the document primarily presents statistical data without expressing strong positive or negative views. The delinquency and write-off rates are slightly elevated, but not alarming.

Industry Context

This announcement provides insight into the credit quality of American Express's card portfolio, which is a key indicator of consumer financial health and spending patterns. Monitoring delinquency and write-off rates is crucial for assessing the overall performance and risk profile of credit card companies in the financial services industry.

Comparison to Industry Standards

• Comparing American Express's delinquency and write-off rates to those of competitors like Visa, Mastercard, and Discover would provide a more comprehensive understanding of its credit portfolio performance.
• Analyzing the trends in these metrics over time, relative to industry averages, can reveal whether American Express is outperforming or underperforming its peers.
• The performance of the American Express Credit Account Master Trust can be compared to similar securitization trusts from other credit card issuers to assess its relative credit quality and risk profile.

Stakeholder Impact

• Shareholders will use this information to assess the credit risk and overall financial health of American Express.
• Creditors will monitor these metrics to evaluate the company's ability to repay its debts.
• Employees may be affected by any changes in lending policies or risk management strategies resulting from these trends.

Key Dates

Keywords

delinquency rates, write-off rates, credit performance, card member loans, american express, finance