Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) is dated July 15, 2026. The report provides Regulation FD disclosure regarding delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card balances held for investment. The data covers the months ended April 30, May 31, and June 30, 2026, as well as the three-month period ended June 30, 2026. The figures are marked as preliminary.
Key Financial Metrics
U.S. Consumer Card Portfolio
- Total Card Balances (June 30, 2026): $113.8 billion
- Average Card Balances (Q2 2026): $112.4 billion
- 30+ Days Past Due (June 30, 2026): 1.1% of total
- Net Write-off Rate (Q2 2026): 1.8% (principal only)
U.S. Small Business Card Portfolio
- Total Card Balances (June 30, 2026): $45.9 billion
- Average Card Balances (Q2 2026): $45.9 billion
- 30+ Days Past Due (June 30, 2026): 1.4% of total
- Net Write-off Rate (Q2 2026): 2.4% (principal only)
Lending Trust (Securitized Balances)
- Ending Total Principal Balance (June 30, 2026): $25.2 billion
- Annualized Default Rate, Net of Recoveries (June 2026): 0.7%
- Total 30+ Days Delinquent (June 2026): $0.2 billion
Material Changes and Unusual Items
Impact of Asset Sale: During June 2026, the Company sold certain previously written-off card balances to a third party. This transaction reduced the reported net write-off rates for June 2026 and the three months ended June 30, 2026, by approximately 0.3% for the U.S. Consumer portfolio and 0.1% for the U.S. Small Business portfolio. The Lending Trust's annualized default rate for June 2026 also reflects proceeds allocable from this sale.
Trend Analysis:
- Delinquency: The 30+ days past due ratio for U.S. Consumer cards remained stable at 1.1% in June, down slightly from 1.2% in April. U.S. Small Business delinquency held steady at 1.4% in June.
- Write-offs: Net write-off rates for both portfolios improved sequentially from April to June 2026, though the June figures are influenced by the aforementioned asset sale.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond standard disclosures regarding statistical 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 differences in calculation mechanics between the Company's internal reporting and the Lending Trust's Form 10-D reports.
Investor Verification Checklist
- Verify the magnitude of the "previously written-off" balances sold in June 2026 to understand the true underlying credit quality without the benefit of the sale proceeds.
- Compare the reported net write-off rates against the Lending Trust's annualized default rate to assess the divergence between held-for-investment and securitized portfolio performance.
- Monitor the stability of the 30+ days past due ratios in subsequent months to determine if the June 2026 levels represent a trend or a seasonal anomaly.
- Review the upcoming Form 10-D filings for the Lending Trust to confirm the consistency of the $0.2 billion delinquent balance reported here.