Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on September 15, 2025, under Item 7.01 Regulation FD Disclosure. The report provides monthly delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member loans held for investment for the months ended June 30, July 31, and August 31, 2025. It also includes credit performance data for the American Express Credit Account Master Trust (Lending Trust) for the same periods.
Key Financial Metrics
The filing focuses on credit quality metrics rather than revenue or profit. Key data points for the month ended August 31, 2025, include:
- U.S. Consumer Loans: Total loans of $94.6 billion with a 30+ days past due rate of 1.3%. The net write-off rate (principal only) was 2.0%.
- U.S. Small Business Loans: Total loans of $30.9 billion with a 30+ days past due rate of 1.6%. The net write-off rate (principal only) was 2.7%.
- Total Card Member Loans: Combined held-for-investment loans totaled $125.5 billion.
- Lending Trust Performance: Ending principal balance of $25.4 billion with an annualized default rate (net of recoveries) of 1.2%.
Material Changes Versus Prior Periods
Credit metrics remained relatively stable across the three-month period:
- Delinquency Rates: The 30+ days past due percentage for both U.S. Consumer (1.3%) and U.S. Small Business (1.6%) segments remained unchanged from June through August 2025.
- Write-off Rates: The U.S. Consumer net write-off rate decreased slightly from 2.1% in June to 2.0% in July and August. The U.S. Small Business net write-off rate increased slightly from 2.6% in June to 2.7% in July and August.
- Lending Trust Defaults: The annualized default rate for the Lending Trust fluctuated between 1.1% and 1.3% over the three months, settling at 1.2% in August.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond standard disclosures. It notes that statistics may vary due to factors such as the number of days in a month, seasonality, and timing of information. The report clarifies that Lending Trust statistics may differ from total portfolio statistics due to differences in loan mix, vintage, and calculation mechanics (e.g., end-of-period balances vs. average balances).
Investor Verification Checklist
- Verify the stability of the 1.3% consumer delinquency rate against broader economic indicators.
- Monitor the slight uptick in Small Business write-off rates (2.7%) compared to the prior month.
- Compare the Lending Trust default rate (1.2%) with the Company's total portfolio write-off rates to assess securitization impact.
- Review the subsequent Form 10-D filings for the Lending Trust to confirm the consistency of the reported defaulted amounts ($0.04 billion).