Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on February 18, 2025, under Item 7.01 (Regulation FD Disclosure). The report provides monthly delinquency and write-off statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ended January 31, 2025, December 31, 2024, and November 30, 2024.
Key Financial Metrics
U.S. Consumer Card Member Loans (January 2025):
- Total loans: $89.4 billion
- 30 days past due: 1.4% of total
- Average loans: $91.0 billion
- Net write-off rate (principal only): 2.3%
U.S. Small Business Card Member Loans (January 2025):
- Total loans: $30.1 billion
- 30 days past due: 1.6% of total
- Average loans: $29.9 billion
- Net write-off rate (principal only): 2.5%
Combined U.S. Consumer and Small Business Loans (January 2025):
- Total loans: $119.5 billion
American Express Credit Account Master Trust (January 2025):
- Ending total principal balance: $25.5 billion
- Annualized default rate, net of recoveries: 1.5%
- Total 30+ days delinquent: $0.2 billion
Material Changes Versus Prior Period
Loan Balances: Total U.S. Consumer loans decreased from $92.6 billion in December 2024 to $89.4 billion in January 2025. Total U.S. Small Business loans increased slightly from $29.6 billion to $30.1 billion. Combined total loans declined from $122.2 billion to $119.5 billion.
Credit Quality: Net write-off rates increased for both segments in January 2025 compared to December 2024. U.S. Consumer rates rose from 2.1% to 2.3%, and U.S. Small Business rates rose from 2.4% to 2.5%. The 30 days past due ratio for Small Business loans increased from 1.5% to 1.6%, while Consumer loans remained stable at 1.4%.
Accounting Reclassification: Effective December 1, 2024, the Company reclassified $758 million of Card Member loans related to its Lowe's small business cobrand portfolio to "held for sale." These loans are excluded from the reported statistics for January 2025 and December 2024, which reflect only loans held for investment.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond standard disclosures regarding data variability. The Company notes that credit performance statistics may vary month-to-month due to factors such as the number of days in a month, timing of holidays, seasonality, and third-party data timing. Additionally, the Company highlights that the securitized loans in the Lending Trust do not possess identical characteristics to the total loan portfolios, leading to potential differences in reported performance metrics.
Investor Verification Checklist
- Verify the impact of the $758 million Lowe's portfolio reclassification on year-over-year comparisons.
- Monitor the trend in net write-off rates, which increased in January 2025 for both Consumer and Small Business segments.
- Compare the Lending Trust default rate (1.5%) against the broader portfolio write-off rates to assess securitization performance.
- Review subsequent Form 10-D filings for the Lending Trust to track monthly default trends.