01—Abstract
Summary
Summary of the 8-K filed June 16, 2025. Cited figures are marked; the original filing is the authoritative source.
This 8-K filing from American Express provides an update on credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member loans held for investment, as well as data for the American Express Credit Account Master Trust.
The Company has reclassified approximately $1.6 billiona of Card Member loans related to its Amazon small business cobrand portfolio from 'held for investment' to 'held for sale' effective June 1, 2025, which will impact future reporting periods. This reclassification means these loans will no longer be reflected in the "held for investment" statistics going forward. Overall, the reported delinquency and net write-off rates for the U.S. Consumer and U.S. Small Business segments remained relatively stable across the first five months of 2025, showing slight fluctuations.
The Lending Trust data also indicates consistent credit performance, with low annualized default rates. Investors should monitor how the reclassification of the Amazon portfolio impacts the composition and reported metrics of the 'held for investment' portfolio in subsequent filings.
02—Key points
Key Highlights
- Reclassification of $1.6 billion Amazon cobrand portfolio from 'held for investment' to 'held for sale' effective June 1, 2025.
- U.S. Consumer 30+ days past due rate remained stable, ranging from 1.3% to 1.4% for the months ended March, April, and May 2025.
- U.S. Consumer net write-off rate showed slight variation, from 2.0% to 2.4% over the reporting periods.
- U.S. Small Business 30+ days past due rate was also stable, between 1.5% and 1.6% for the reported months.
- U.S. Small Business net write-off rate was consistent at 2.4% for April and May, and 2.6% for March.
- Total Card Member loans held for investment across both segments reached $124.0 billion by May 31, 2025.
- American Express Credit Account Master Trust reported low annualized default rates (1.3% - 1.5%) and consistent 30+ days delinquency.
03—Questions
Frequently Asked Questions
What is the impact of the reclassification of the Amazon small business cobrand portfolio?
Effective June 1, 2025, approximately $1.6 billion of these loans have been moved from 'held for investment' to 'held for sale'. This means these loans will no longer be included in the delinquency and write-off statistics reported for the 'held for investment' portfolio in future filings. Investors should note this change in portfolio composition.
Are credit quality metrics deteriorating based on these statistics?
The reported delinquency and write-off rates for both U.S. Consumer and U.S. Small Business card member loans held for investment have remained relatively stable with minor fluctuations during the first five months of 2025. The American Express Credit Account Master Trust also shows consistent, low default rates. While some variation exists, the overall trend does not indicate a significant deterioration in credit quality for the reported portfolios.
What is the difference between the 'held for investment' portfolio and the Lending Trust data?
The 'held for investment' portfolio represents the Company's total U.S. Consumer and U.S. Small Business Card Member loans not designated for sale. The American Express Credit Account Master Trust is a specific securitization trust whose loans may have different characteristics (mix, vintage, aging) and are reported separately. The calculation methodologies for delinquency and write-off rates can also differ between the total portfolio and the securitized trust, leading to potential variations in reported metrics.
What are the key credit performance indicators to watch?
Investors should continue to monitor the 30+ days past due rates and the net write-off rates for both the U.S. Consumer and U.S. Small Business segments. Additionally, observing any changes in the total loan balances and the impact of the Amazon portfolio reclassification on future 'held for investment' metrics will be important for assessing ongoing credit risk management and portfolio health.
04—Continue