8-K: American Express Reports November 2025 Loan Performance

American Express Company disclosed its U.S. Consumer and Small Business Card Member loan delinquency and write-off statistics for the months ended November 30, 2025.

Summary

• U.S. Consumer total loans increased to $97.7 billion in November 2025 from $94.1 billion in September 2025.
• U.S. Small Business total loans increased to $31.4 billion in November 2025 from $30.7 billion in September 2025.
• Total Card Member loans held for investment (U.S. Consumer and Small Business) reached $129.1 billion in November 2025, up from $124.8 billion in September 2025.
• U.S. Consumer 30 days past due loans remained stable at 1.4% for all three months (September, October, November 2025).
• U.S. Small Business 30 days past due loans remained stable at 1.6% for all three months (September, October, November 2025).
• U.S. Consumer net write-off rate decreased slightly to 2.1% in November from 2.2% in October, but is up from 1.9% in September.
• U.S. Small Business net write-off rate showed a consistent upward trend, increasing from 2.5% in September to 2.6% in October and 2.7% in November.
• American Express Credit Account Master Trust's annualized default rate, net of recoveries, was 1.2% in November, down from 1.3% in October and September.
• The Lending Trust's ending total principal balance was $25.7 billion in November, up from $25.0 billion in September.

Sentiment

Score: 6

Explanation: The filing presents a mixed picture with stable delinquency rates but slightly increasing write-off rates for small business loans and an overall increase for consumer loans since September, balanced by a slight improvement in the Lending Trust's default rate. The information is routine monthly disclosure without major surprises, leaning slightly positive due to stable delinquencies and a trust improvement, but tempered by rising write-offs in some segments.

Positives

• U.S. Consumer 30 days past due loans remained stable at 1.4% across the three months ended November 30, 2025.
• U.S. Small Business 30 days past due loans remained stable at 1.6% across the three months ended November 30, 2025.
• U.S. Consumer net write-off rate slightly improved to 2.1% in November from 2.2% in October 2025.
• American Express Credit Account Master Trust's annualized default rate, net of recoveries, decreased to 1.2% in November 2025 from 1.3% in the prior two months.

Negatives

• U.S. Consumer net write-off rate increased to 2.1% in November 2025 from 1.9% in September 2025.
• U.S. Small Business net write-off rate showed a consistent upward trend, increasing from 2.5% in September to 2.7% in November 2025.

Risks

• The credit performance of the American Express Credit Account Master Trust may differ from the total U.S. Consumer or U.S. Small Business Card Member loan portfolios due to differences in the mix, vintage, and aging of loans, as well as calculation mechanics.
• Statistics for U.S. Consumer and U.S. Small Business Card Member loan portfolios and the Lending Trust for any particular monthly period may be subject to variability due to factors including the number of days in a month, timing of holidays and weekends, seasonality, and the timing of information received from third parties.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance regarding future credit performance or business expectations. It provides a disclaimer that reported credit performance statistics may be subject to variability due to various factors including seasonality and timing.

Industry Context

This filing provides a snapshot of American Express's credit quality for its U.S. loan portfolios. In the broader credit card and lending industry, delinquency and write-off rates are key indicators of consumer and small business financial health and can reflect economic trends such as inflation, interest rates, and employment levels. While the filing itself doesn't provide external context, the reported trends for American Express's specific portfolios can be benchmarked against industry averages or competitor disclosures to gauge relative performance. The slight increase in write-off rates for small business loans could indicate growing pressure on this segment, a trend that might be observed across the industry.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results for direct benchmarking.
• The reported delinquency and write-off rates for U.S. Consumer and Small Business Card Member loans, as well as the Lending Trust, can be compared against publicly available data from major credit card issuers like JPMorgan Chase (Chase Card Services), Bank of America (Merrill Lynch Credit Card), Citigroup (Citi Cards), and Discover Financial Services.
• Industry-wide trends published by organizations such as the American Bankers Association (ABA) or TransUnion/Experian on credit card charge-off and delinquency rates would offer a broader context for assessing American Express's performance relative to global benchmarks.
• Without specific competitor data in the filing, a direct assessment of 'better' or 'worse' against industry standards is not possible from this document alone.

Stakeholder Impact

• Shareholders: Provides insight into the credit quality of the company's loan portfolios, which directly impacts profitability and asset quality. Stable delinquency rates are positive, but rising write-offs, particularly in small business, could signal future earnings pressure.
• Creditors: Offers transparency on the health of the underlying loan assets, which is crucial for assessing the company's creditworthiness and ability to service its debts.
• Customers (Card Members): The statistics reflect the financial health and repayment behavior of American Express's customer base.

Key Dates

Recommendation

The filing provides routine monthly credit performance data. While there are some mixed signals, such as stable delinquency rates alongside a slight uptick in write-off rates for certain segments, these movements are generally within expected variability for a large financial institution. There are no significant positive or negative catalysts disclosed that would warrant a strong buy or sell recommendation based solely on this filing. Investors should continue to hold, monitoring future trends in credit quality and broader economic conditions.

Keywords

American Express, AXP, Credit Performance, Delinquency Rates, Write-off Rates, Consumer Loans, Small Business Loans, SEC Filing, 8-K, Financial Metrics, Card Member Loans