Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on July 15, 2025, under Item 7.01 Regulation FD Disclosure. The report provides preliminary delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member loans held for investment for the months ended April 30, May 31, and June 30, 2025, as well as the three-month period ended June 30, 2025.
Key Financial Metrics
U.S. Consumer Card Member Loans (as of June 30, 2025):
- Total loans: $92.6 billion
- 30 days past due loans: 1.3% of total
- Average loans: $92.3 billion
- Net write-off rate (principal only): 2.1%
U.S. Small Business Card Member Loans (as of June 30, 2025):
- Total loans: $30.1 billion
- 30 days past due loans: 1.6% of total
- Average loans: $31.1 billion
- Net write-off rate (principal only): 2.6%
Total Card Member Loans Held for Investment: $122.7 billion as of June 30, 2025.
Securitized Portfolio (Lending Trust):
- Ending total principal balance (June 2025): $25.3 billion
- Annualized default rate, net of recoveries: 1.3%
- Total 30+ days delinquent: $0.2 billion
Material Changes and Reclassifications
Effective June 1, 2025, the Company reclassified $1.6 billion of Card Member loans related to its Amazon small business cobrand portfolio from "held for investment" to "held for sale" on the Consolidated Balance Sheets. Consequently, these loans are excluded from the U.S. Small Business statistics for June 2025, contributing to the decline in total Small Business loans from $32.0 billion in May to $30.1 billion in June.
Net write-off rates for U.S. Small Business loans increased slightly from 2.4% in May to 2.6% in June, while U.S. Consumer rates remained stable at 2.1%.
Outlook, Risks, and Contingencies
The filing notes that credit performance statistics may vary month-to-month due to factors such as the mix and vintage of loans, calculation mechanics (end-of-period vs. average balances), seasonality, and the timing of information received from third parties. The report explicitly states that the securitized loans in the Lending Trust do not possess identical characteristics to the total loan portfolios.
No specific forward-looking guidance or management commentary regarding future earnings or strategic shifts is provided in this specific filing.
Investor Verification Checklist
- Verify the impact of the $1.6 billion reclassification of Amazon small business loans on future quarterly loan growth metrics.
- Monitor the divergence between the 2.6% net write-off rate for Small Business loans versus the 2.1% rate for Consumer loans.
- Compare the Lending Trust default rate (1.3%) against the broader portfolio write-off rates to assess securitization risk.
- Review subsequent Form 10-D filings for the Lending Trust to track the stability of the $0.2 billion delinquent balance.