8-K: Amex Reports Q4 2025 Loan Delinquency & Write-Offs

American Express released preliminary U.S. Consumer and Small Business Card Member loan delinquency and write-off statistics for the fourth quarter of 2025.

Summary

• U.S. Consumer Card Member loans held for investment totaled $100.2 billion as of December 31, 2025, increasing from $95.2 billion in October 2025.
• The 30 days past due rate for U.S. Consumer loans was 1.3% in December 2025, a slight decrease from 1.4% in October and November 2025.
• The net write-off rate for U.S. Consumer loans remained stable at 2.1% in December and November 2025, down from 2.2% in October 2025.
• U.S. Small Business Card Member loans held for investment were $30.8 billion as of December 31, 2025, a decrease from $31.4 billion in November 2025.
• The 30 days past due rate for U.S. Small Business loans increased to 1.7% in December 2025 from 1.6% in October and November 2025.
• The net write-off rate for U.S. Small Business loans was 2.7% in December and November 2025, up from 2.6% in October 2025.
• Total Card Member loans held for investment (U.S. Consumer and U.S. Small Business) reached $131.0 billion as of December 31, 2025.
• The American Express Credit Account Master Trust reported an ending total principal balance of $26.4 billion for December 2025, with an annualized default rate, net of recoveries, of 1.2%.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. While U.S. Small Business credit metrics showed a slight uptick in delinquency and write-offs, the larger U.S. Consumer segment demonstrated a minor improvement in delinquency rates and stable write-offs. Overall, the data indicates a relatively stable credit environment with some mixed signals, but no significant negative surprises.

Positives

• U.S. Consumer Card Member loans showed a slight improvement in credit quality, with the 30 days past due rate decreasing from 1.4% to 1.3% in December 2025.
• The net write-off rate for U.S. Consumer loans remained stable at 2.1% in December and November 2025, after a slight decrease from 2.2% in October 2025.
• Total U.S. Consumer loans held for investment grew from $95.2 billion in October 2025 to $100.2 billion in December 2025.
• The American Express Credit Account Master Trust's annualized default rate, net of recoveries, slightly decreased from 1.3% in October 2025 to 1.2% in December 2025.

Negatives

• U.S. Small Business Card Member loans experienced a slight deterioration in credit quality, with the 30 days past due rate increasing from 1.6% to 1.7% in December 2025.
• The net write-off rate for U.S. Small Business loans increased from 2.6% in October 2025 to 2.7% in November and December 2025.
• Total U.S. Small Business loans held for investment decreased from $31.4 billion in November 2025 to $30.8 billion in December 2025.

Risks

• The statistics presented are preliminary and subject to change.
• Card Member loans classified as held for sale are not included in the reported statistics, which may present an incomplete picture of the total loan portfolio.
• The characteristics of securitized loans in the American Express Credit Account Master Trust are not identical to the total U.S. Consumer or U.S. Small Business Card Member loan portfolios, leading to potential differences in reported credit performance.
• Variability in Lending Trust performance can occur due to differences in loan mix, vintage, aging, and calculation methodologies (e.g., end-of-period vs. average loan balances).
• Monthly statistics for both the total portfolios and the Lending Trust can be subject to variability due to factors such as 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 provides preliminary historical credit performance data and does not include any explicit forward-looking statements, guidance, or projections regarding future performance.

Industry Context

This filing provides granular insight into American Express's credit quality, a key indicator for financial institutions. The mixed trends, with U.S. Consumer credit showing slight improvement and U.S. Small Business credit showing minor deterioration, reflect a dynamic economic environment. These metrics are crucial for assessing the health of the company's loan portfolios and can signal broader trends in consumer spending and small business resilience, which are closely watched by the financial services industry.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or industry benchmarks to assess the results against global standards. It primarily focuses on internal comparisons between different segments of American Express's loan portfolios and its securitized trust.

Stakeholder Impact

• Shareholders: The credit quality metrics directly impact the company's profitability and risk profile, influencing investor sentiment and valuation.
• Customers (Card Members): Delinquency and write-off rates reflect the financial health of card members, which could indirectly affect future credit offerings and terms.
• Creditors: Investors in the American Express Credit Account Master Trust will monitor the trust's performance metrics, such as default rates, as they relate to the security of their investments.

Key Dates

Recommendation

The filing provides a routine update on credit performance with mixed signals. U.S. Consumer loan quality showed slight improvement in delinquency and stable write-off rates, while U.S. Small Business loans experienced a minor increase in delinquency and write-off rates, alongside a slight decrease in total loans. These trends are not significant enough to warrant a change in investment thesis, suggesting a 'hold' position as the company navigates a dynamic economic environment. Investors should continue to monitor future credit quality reports.

Keywords

American Express, AXP, credit performance, loan delinquency, write-off rates, consumer credit, small business credit, financial metrics, SEC filing, 8-K