Summary
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 billion 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.
Key Highlights
- 1Reclassification of $1.6 billion Amazon cobrand portfolio from 'held for investment' to 'held for sale' effective June 1, 2025.
- 2U.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.
- 3U.S. Consumer net write-off rate showed slight variation, from 2.0% to 2.4% over the reporting periods.
- 4U.S. Small Business 30+ days past due rate was also stable, between 1.5% and 1.6% for the reported months.
- 5U.S. Small Business net write-off rate was consistent at 2.4% for April and May, and 2.6% for March.
- 6Total Card Member loans held for investment across both segments reached $124.0 billion by May 31, 2025.
- 7American Express Credit Account Master Trust reported low annualized default rates (1.3% - 1.5%) and consistent 30+ days delinquency.