Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) is dated October 15, 2025. The report serves as a Regulation FD disclosure providing preliminary delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member loans held for investment. The data covers the months ended July 31, August 31, and September 30, 2025, as well as the three-month period ended September 30, 2025.
Key Financial Metrics
The filing focuses on credit performance metrics rather than consolidated revenue or profit figures. Key statistics for the three months ended September 30, 2025, include:
- U.S. Consumer Loans: Total loans of $94.1 billion with an average balance of $93.8 billion. The 30+ days past due rate was 1.4%, and the net write-off rate (principal only) was 2.0%.
- U.S. Small Business Loans: Total loans of $30.7 billion with an average balance of $30.5 billion. The 30+ days past due rate was 1.6%, and the net write-off rate (principal only) was 2.6%.
- Total Card Member Loans: Combined total loans held for investment were $124.8 billion.
- Lending Trust Performance: For the month of September 2025, the American Express Credit Account Master Trust reported an ending principal balance of $25.0 billion and an annualized default rate (net of recoveries) of 1.3%.
Material Changes Versus Prior Period
Comparing September 2025 to August 2025:
- Consumer Delinquency: The 30+ days past due rate increased slightly from 1.3% to 1.4%.
- Consumer Write-offs: The net write-off rate improved marginally from 2.0% in August to 1.9% in September.
- Small Business Write-offs: The net write-off rate improved from 2.7% in August to 2.5% in September.
- Lending Trust Defaults: The annualized default rate for the Lending Trust increased from 1.2% in August to 1.3% in September.
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 credit performance statistics may vary month-to-month due to factors such as the mix and vintage of loans, seasonality, timing of holidays, and the number of days in a month. Additionally, the filing clarifies that loans securitized through the Lending Trust do not possess identical characteristics to the total loan portfolios, and their reported performance may differ based on calculation mechanics.
Investor Verification Checklist
- Verify the trend in net write-off rates for both Consumer and Small Business segments over the next quarter to confirm if the September improvement is sustained.
- Monitor the 30+ days past due rate for U.S. Consumer loans, which showed a slight uptick to 1.4%.
- Review the upcoming Form 10-D filings for the American Express Credit Account Master Trust to compare Lending Trust performance against the broader portfolio.
- Confirm that the "preliminary" nature of the data does not result in significant revisions in the subsequent quarterly earnings report.