8-K: Amex Reports Stable Loan Delinquencies, Mixed Write-Offs

American Express Company disclosed U.S. Consumer and Small Business Card Member loan delinquency and write-off statistics for the months ended August 31, 2025, showing stable past-due rates and slight shifts in write-off percentages.

Summary

• Total U.S. Consumer Card Member loans held for investment increased to $94.6 billion as of August 31, 2025, from $92.6 billion as of June 30, 2025.
• The 30 days past due loan rate for U.S. Consumer Card Member loans remained stable at 1.3% for the months ended August 31, July 31, and June 30, 2025.
• The net write-off rate (principal only) for U.S. Consumer Card Member loans decreased slightly to 2.0% for August and July 2025, down from 2.1% in June 2025.
• Total U.S. Small Business Card Member loans held for investment increased to $30.9 billion as of August 31, 2025, from $30.1 billion as of June 30, 2025.
• The 30 days past due loan rate for U.S. Small Business Card Member loans remained stable at 1.6% for the months ended August 31, July 31, and June 30, 2025.
• The net write-off rate (principal only) for U.S. Small Business Card Member loans increased slightly to 2.7% for August and July 2025, up from 2.6% in June 2025.
• Total Card Member loans held for investment (U.S. Consumer and U.S. Small Business combined) grew to $125.5 billion as of August 31, 2025, from $122.7 billion as of June 30, 2025.
• The American Express Credit Account Master Trust reported an ending total principal balance of $25.4 billion for August 2025, with an annualized default rate, net of recoveries, of 1.2%.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive to neutral. Stable delinquency rates and continued loan growth are positive indicators, while minor fluctuations in write-off rates are within expected operational variance for a large credit portfolio. No significant negative surprises are present.

Positives

• Total Card Member loans held for investment continue to grow, reaching $125.5 billion by August 31, 2025.
• Delinquency rates (30 days past due) for both U.S. Consumer (1.3%) and U.S. Small Business (1.6%) Card Member loans remained stable across the three-month period.
• The net write-off rate for U.S. Consumer Card Member loans showed a slight improvement, decreasing from 2.1% in June to 2.0% in August 2025.

Negatives

• The net write-off rate for U.S. Small Business Card Member loans saw a slight increase from 2.6% in June to 2.7% in August 2025.

Risks

• The characteristics of securitized Card Member loans in the Lending Trust are not identical to the total U.S. Consumer or U.S. Small Business Card Member loan portfolios, which include both securitized and non-securitized loans.
• The reported credit performance of the Lending Trust may differ from the total portfolios due to differences in the mix, vintage, and aging of loans.
• Variability in statistics can occur due to the use of end-of-period principal loan balances for write-off calculations in the Lending Trust versus average loan balances for the U.S. Consumer and U.S. Small Business portfolios.
• Other calculation mechanics for the Lending Trust net write-off rate, including additions to the Trust within a particular period, can impact reported performance.
• Monthly statistics for both the loan portfolios and the Lending Trust are subject to variability from 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 historical credit performance data and does not include any explicit forward-looking statements or guidance regarding future financial performance or credit quality trends.

Industry Context

This routine disclosure of credit quality metrics is standard for major financial institutions like American Express. The stable delinquency rates and continued loan growth suggest a resilient customer base in the U.S. consumer and small business segments, which is generally positive in the broader financial services industry context. The slight increase in small business write-offs warrants monitoring but is not indicative of a systemic issue based on this filing alone.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to global benchmarks, focusing solely on American Express's internal credit performance data.

Stakeholder Impact

• Shareholders: Stable credit quality and continued loan growth generally support investor confidence in the company's core lending operations.
• Customers (Card Members): Consistent credit policies and performance indicate a stable lending environment for both consumer and small business cardholders.
• Creditors: The performance of the loan portfolios, including the Lending Trust, provides insight into the underlying asset quality supporting the company's debt obligations.

Key Dates

Recommendation

The filing presents routine monthly credit performance data showing stable delinquency rates and minor fluctuations in write-off rates. While loan balances are growing, the credit quality metrics are largely consistent with recent trends, providing no new information that would significantly alter an investment thesis for a seasoned investor. Therefore, a 'hold' recommendation is appropriate as this filing does not present a compelling reason to buy or sell based on these specific disclosures.

Keywords

American Express, AXP, Credit Performance, Loan Delinquency, Write-off Rates, Consumer Loans, Small Business Loans, Financial Services, Credit Cards, Lending Trust, Regulation FD