Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on June 16, 2025, under Item 7.01 Regulation FD Disclosure. The report provides monthly delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member loans held for investment for the periods ended March 31, April 30, and May 31, 2025.
Key Financial Metrics
U.S. Consumer Card Member Loans (Held for Investment)
- Total Loans (May 31, 2025): $92.0 billion
- 30+ Days Past Due: 1.3% (down from 1.4% in April and March)
- Net Write-off Rate (Principal Only): 2.1% (up from 2.0% in April, down from 2.4% in March)
U.S. Small Business Card Member Loans (Held for Investment)
- Total Loans (May 31, 2025): $32.0 billion
- 30+ Days Past Due: 1.5% (down from 1.6% in April and March)
- Net Write-off Rate (Principal Only): 2.4% (flat vs. April, down from 2.6% in March)
Total Card Member Loans Held for Investment: $124.0 billion as of May 31, 2025.
Securitized Portfolio (Lending Trust):
- Ending Principal Balance (May 2025): $25.4 billion
- Annualized Default Rate (Net of Recoveries): 1.3%
Material Changes and Reclassifications
Effective June 1, 2025, the Company reclassified approximately $1.6 billion in 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 "held for investment" statistics beginning with the June monthly reporting period.
Delinquency rates for both Consumer and Small Business segments improved slightly in May 2025 compared to the prior two months. Net write-off rates for both segments decreased in May compared to March 2025, though the Consumer rate ticked up slightly from April.
Management Commentary and Risks
The filing notes that credit performance statistics for the Lending Trust (securitized loans) may differ from the total portfolio due to differences in loan mix, vintage, aging, and calculation mechanics (end-of-period balances vs. average balances). Variability in monthly statistics may also result from the number of days in a month, holiday timing, seasonality, and third-party data timing.
The filing does not provide specific forward-looking guidance, revenue projections, or liquidity metrics beyond the credit performance data presented.
Investor Verification Checklist
- Verify the impact of the $1.6 billion reclassification of Amazon small business loans on future "held for investment" portfolio metrics.
- Monitor the trend of net write-off rates, which fluctuated between 2.0% and 2.6% over the three-month period.
- Compare the Lending Trust default rate (1.3%) against the broader portfolio write-off rates to assess securitization performance.
- Review subsequent monthly reports to confirm the stabilization of delinquency rates following the portfolio reclassification.