Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on March 17, 2025, under Item 7.01 Regulation FD Disclosure. The report provides delinquency and write-off statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ended February 28, 2025, January 31, 2025, and December 31, 2024.
Effective December 1, 2024, the Company reclassified $758 million of Card Member loans related to its Lowe's small business cobrand portfolio to loans held for sale. These reclassified loans are excluded from the statistics presented in this filing, which reflect only loans held for investment.
Key Financial Metrics
U.S. Consumer Card Member Loans
- Total Loans (Feb 2025): $87.8 billion
- 30+ Days Past Due: 1.4% of total loans (consistent across Jan and Dec 2024)
- Net Write-off Rate (Principal Only): 2.5% (Feb 2025), up from 2.3% (Jan 2025) and 2.1% (Dec 2024)
U.S. Small Business Card Member Loans
- Total Loans (Feb 2025): $30.2 billion
- 30+ Days Past Due: 1.6% of total loans (up from 1.5% in Dec 2024)
- Net Write-off Rate (Principal Only): 2.6% (Feb 2025), up from 2.5% (Jan 2025) and 2.4% (Dec 2024)
Combined U.S. Consumer and Small Business Loans
- Total Loans (Feb 2025): $118.0 billion
American Express Credit Account Master Trust (Lending Trust)
- Ending Principal Balance (Feb 2025): $24.7 billion
- Annualized Default Rate (Net of Recoveries): 1.8% (Feb 2025), up from 1.5% (Jan 2025) and 1.2% (Dec 2024)
- Total 30+ Days Delinquent: $0.2 billion (consistent across all three periods)
Material Changes Versus Prior Period
Credit quality metrics show a slight deterioration in the most recent reporting period compared to the prior two months:
- Write-off Rates: Both U.S. Consumer and U.S. Small Business net write-off rates increased sequentially from December 2024 through February 2025.
- Delinquency: The 30+ days past due ratio for U.S. Small Business loans increased from 1.5% in December 2024 to 1.6% in January and February 2025. U.S. Consumer delinquency remained stable at 1.4%.
- Lending Trust Defaults: The annualized default rate for the Lending Trust rose from 1.2% in December 2024 to 1.8% in February 2025.
- Loan Balances: Total Card Member loans held for investment declined from $122.2 billion in December 2024 to $118.0 billion in February 2025.
Guidance, Outlook, and Risks
This filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the disclosure of credit performance variability.
The Company notes that credit performance statistics may vary month-to-month due to factors including:
- Differences in loan mix, vintage, and aging.
- Calculation mechanics (e.g., end-of-period balances vs. average balances).
- Seasonality, timing of holidays, and the number of days in a month.
- Timing of information received from third parties.
The filing clarifies that the Lending Trust portfolio does not possess identical characteristics to the total Card Member loan portfolios, which include both securitized and non-securitized loans.
Investor Verification Checklist
- Verify the impact of the $758 million Lowe's cobrand portfolio reclassification on total loan balances and credit metrics.
- Monitor the sequential increase in net write-off rates for both Consumer and Small Business segments to assess credit cycle trends.
- Compare the Lending Trust default rates (1.8%) against the broader portfolio write-off rates to understand securitization performance.
- Review subsequent Form 10-D filings for the Lending Trust to track monthly default trends.
- Confirm whether the decline in total loan balances ($122.2B to $118.0B) reflects organic paydowns or further reclassifications.