01—Abstract
Summary
Summary of the 8-K filed April 15, 2025. Cited figures are marked; the original filing is the authoritative source.
American Express Company (AXP) has filed an 8-K report providing an update on its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months of January, February, and March 2025, as well as the first quarter of 2025.
The report focuses on delinquency and write-off statistics for loans held for investment, excluding a specific portion of the Lowe's small business cobrand portfolio reclassified as held for sale. Investors should note that these preliminary figures offer a snapshot of credit quality trends within these key portfolios.
02—Key points
Key Highlights
- Total U.S. Consumer and Small Business Card Member loans held for investment stood at $121.3 billion as of March 31, 2025, up from $118.0 billion in February.
- The 30-day past due rate for the U.S. Consumer portfolio remained stable at 1.4% for January, February, and March 2025.
- The U.S. Small Business portfolio also maintained a consistent 1.6% 30-day past due rate across the three months.
- The net write-off rate for the U.S. Consumer portfolio was 2.4% for the first quarter of 2025, a slight improvement from 2.5% in February but consistent with January.
- The net write-off rate for the U.S. Small Business portfolio was 2.6% for the first quarter of 2025, holding steady from the previous two months.
- The report clarifies that the presented figures exclude certain loans reclassified as held for sale, impacting the comparability with securitized loan data from the American Express Credit Account Master Trust.
03—Questions
Frequently Asked Questions
What specific portfolios does this 8-K report cover regarding delinquency and write-off data?
This report covers the U.S. Consumer and U.S. Small Business Card Member lending portfolios that are held for investment. It explicitly excludes Card Member loans related to the Lowe's small business cobrand portfolio that were reclassified to 'held for sale' as of December 1, 2024.
How stable have the delinquency rates been in the U.S. Consumer and Small Business portfolios?
Delinquency rates have been notably stable. The U.S. Consumer portfolio's 30-day past due rate remained constant at 1.4% for January, February, and March 2025. Similarly, the U.S. Small Business portfolio maintained a steady 1.6% 30-day past due rate over the same period.
What is the net write-off rate for the U.S. Consumer and Small Business portfolios for the first quarter of 2025?
For the first quarter of 2025, the net write-off rate for the U.S. Consumer portfolio was 2.4% (principal only), and for the U.S. Small Business portfolio, it was 2.6% (principal only). These figures show minor variations compared to the preceding two months.
How do the figures in this report relate to the data reported by the American Express Credit Account Master Trust?
The statistics in this 8-K are additional to the data reported by the American Express Credit Account Master Trust (Lending Trust). The loans securitized through the Lending Trust may have different characteristics than the total portfolios (which include both securitized and non-securitized loans). Therefore, the reported credit performance of the Lending Trust might differ from the overall portfolio statistics due to various factors such as loan mix, vintage, aging, and calculation methodologies.
04—Continue