8-K: Amex Card Delinquency & Write-Offs Stable

American Express reports stable U.S. Consumer and Small Business card delinquency and write-off rates for August 2026, with minor impacts from a June asset sale.

Summary

• American Express Company (AXP) has provided an 8-K filing detailing delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card balances held for investment.
• Data is presented for the months ending June 30, July 31, and August 31, 2026.
• Total U.S. Consumer and Small Business Card balances held for investment were $160.3 billion as of August 31, 2026, up from $159.2 billion in July and $159.7 billion in June.
• U.S. Consumer 30-day delinquencies remained stable at 1.1% for July and August, slightly down from 1.1% in June.
• U.S. Consumer net write-off rates (principal only) were 1.7% for July and August, up from 1.4% in June.
• U.S. Small Business 30-day delinquencies were 1.3% for July and August, down from 1.4% in June.
• U.S. Small Business net write-off rates (principal only) were 2.2% for August and 2.3% for June, with a higher 2.6% in July.
• A sale of previously written-off balances in June 2026 reduced the reported net write-off rates for that month by approximately 0.3% for U.S. Consumer and 0.1% for U.S. Small Business.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, as delinquency and write-off rates remain stable and low, indicating consistent credit performance despite some one-time impacts from asset sales.

Positives

• U.S. Consumer 30-day delinquency rates remained stable at 1.1% for August and July.
• U.S. Small Business 30-day delinquency rates decreased to 1.3% in August and July from 1.4% in June.
• Total card balances held for investment showed a slight increase to $160.3 billion by August 31, 2026, indicating continued portfolio growth.
• The net write-off rate for U.S. Consumer cards, excluding the impact of the June sale, remained consistent at 1.7% for August and July.

Negatives

• The net write-off rate for U.S. Consumer cards increased to 1.7% in August and July from 1.4% in June (before accounting for the June sale's impact).
• The net write-off rate for U.S. Small Business cards was 2.2% in August and 2.6% in July, higher than the 2.3% in June (before accounting for the June sale's impact).

Risks

• Potential for increased net write-off rates in the U.S. Small Business portfolio, which stood at 2.2% in August.
• Variability in credit performance statistics due to factors like the number of days in a month, holidays, seasonality, and timing of information from third parties.
• The impact of the June 2026 sale of written-off balances on reported write-off rates, making direct month-over-month comparisons potentially misleading without adjustment.

Future Outlook

No specific forward-looking statements or guidance were provided in this filing, which focuses on historical delinquency and write-off statistics.

Industry Context

StockSavvy.ai notes that stable delinquency and write-off rates are crucial for credit card companies like American Express, especially in the current economic climate. These metrics directly impact profitability and investor confidence in the company's risk management capabilities.

Comparison to Industry Standards

• Industry benchmarks for credit card delinquency rates vary significantly by economic conditions and consumer segment. However, for a prime issuer like American Express, maintaining 30-day delinquency rates below 1.5% for both consumer and small business segments is generally considered strong performance.
• Net write-off rates are also closely watched. For the U.S. Consumer segment, a rate of 1.7% is within a typical range for a healthy portfolio, though any upward trend warrants attention.
• For the U.S. Small Business segment, a write-off rate of 2.2% is also within a plausible range, but it is higher than the consumer segment and warrants monitoring for any further increases.
• Competitors such as Visa and Mastercard, while primarily payment networks, also have exposure to credit risk through their issuing partners. Their overall credit performance, though reported differently, is a key indicator of the health of the broader credit ecosystem.

Stakeholder Impact

• Shareholders: Stable credit performance supports continued profitability and investor confidence.
• Creditors: Low delinquency and write-off rates indicate a lower risk profile for the company's loan portfolio.
• Customers: Consistent credit availability and management of risk suggest a stable lending environment.

Next Steps

• Continue to monitor U.S. Consumer and U.S. Small Business Card delinquency and write-off rates in subsequent filings.
• Observe any trends in net write-off rates, particularly for the U.S. Small Business segment.

Key Dates

Recommendation

The filing presents stable credit metrics with no significant negative surprises. While the write-off rates are not declining, they are not deteriorating substantially either, suggesting a steady state for the company's credit risk management. This warrants a 'hold' recommendation as the information does not provide a strong catalyst for significant upward or downward price movement.

Keywords

delinquency rates, write-off rates, credit performance, card balances, U.S. Consumer, U.S. Small Business, asset sale, loan portfolio