Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on May 15, 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, March 31, and April 30, 2025. The data reflects loans held for investment, excluding the Lowe's small business cobrand portfolio which was reclassified to loans held for sale effective December 1, 2024.
Key Financial Metrics
U.S. Consumer Card Member Loans
- Total Loans (April 30, 2025): $90.7 billion
- 30 Days Past Due: 1.4% of total loans (consistent across Feb, Mar, Apr 2025)
- Net Write-off Rate (Principal Only): 2.0% (April), 2.4% (March), 2.5% (February)
- Average Loans: $90.4 billion (April), $88.9 billion (March), $88.6 billion (February)
U.S. Small Business Card Member Loans
- Total Loans (April 30, 2025): $31.6 billion
- 30 Days Past Due: 1.6% of total loans (consistent across Feb, Mar, Apr 2025)
- Net Write-off Rate (Principal Only): 2.4% (April), 2.6% (March), 2.6% (February)
- Average Loans: $31.4 billion (April), $30.7 billion (March), $30.2 billion (February)
Combined U.S. Consumer and Small Business
- Total Card Member Loans (April 30, 2025): $122.3 billion
American Express Credit Account Master Trust (Lending Trust)
- Ending Principal Balance (April 30, 2025): $25.2 billion
- Annualized Default Rate (Net of Recoveries): 1.3% (April), 1.5% (March), 1.8% (February)
- Total 30+ Days Delinquent: $0.2 billion (consistent across the three months)
Material Changes Versus Prior Period
From February to April 2025, the Company observed an improvement in credit quality metrics:
- Write-off Rates: Net write-off rates declined for both U.S. Consumer (from 2.5% to 2.0%) and U.S. Small Business (from 2.6% to 2.4%) portfolios.
- Loan Balances: Total loans held for investment increased for both segments, with U.S. Consumer loans rising from $87.8 billion to $90.7 billion and Small Business loans rising from $30.2 billion to $31.6 billion.
- Delinquency: The percentage of loans 30 days past due remained stable at 1.4% for Consumer and 1.6% for Small Business across all three months.
- Lending Trust: The annualized default rate for the securitized portfolio improved from 1.8% in February to 1.3% in April.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond standard disclosures. The text 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 third-party data timing. Additionally, the filing clarifies that the Lending Trust statistics may differ from the total portfolio statistics due to differences in loan mix, vintage, aging, and calculation mechanics (end-of-period balances vs. average balances).
Investor Verification Checklist
- Verify the trend in net write-off rates for U.S. Consumer and Small Business portfolios over the next quarter to confirm the improvement seen in April 2025.
- Review the Form 10-D filings for the American Express Credit Account Master Trust to compare securitized loan performance against the total portfolio metrics.
- Monitor the impact of the December 2024 reclassification of the Lowe's small business cobrand portfolio on future balance sheet reporting.
- Confirm that the stable 30-day delinquency rates (1.4% Consumer, 1.6% Small Business) persist despite the reduction in write-off rates.