American Express Company (AXP) recently disclosed updated delinquency and write-off statistics for its U.S. Consumer and Small Business Card Member lending portfolios as of April 30, 2025, through an 8-K SEC filing (source: https://sec.gov/Archives/edgar/data/4962/000000496225000060/axp-20250515.htm). This disclosure offers a critical insight into the credit health of AXP’s lending portfolios against a backdrop of its broader financial performance in fiscal 2024.
Key quantitative highlights from the report reveal the following for April 2025: - Total U.S. Consumer Card Member loans reached approximately \(90.7 billion, up from \)87.8 billion in February. - The 30-day past due loans rate for the consumer segment remained stable at 1.4%, indicating consistent portfolio quality. - The net write-off rate for consumer loans decreased from 2.5% in February to 2.0% in April, showcasing improving credit performance. - U.S. Small Business Card Member loans rose to \(31.6 billion, while the delinquency rate held steady at 1.6%, with net write-offs reducing slightly to 2.4%. - Overall, combined U.S. Consumer and Small Business Card Member loans totaled \)122.3 billion, reflecting steady expansion.
Contextualizing this data with AXP’s fiscal 2024 financials underscores the positive credit momentum. For FY 2024, American Express reported: - Total revenue of \(74.2 billion. - Operating income of \)12.9 billion. - Net income of \(10.1 billion. - Total assets valued at \)271.5 billion and liabilities at \(241.2 billion, demonstrating strong balance sheet fundamentals. - Operating cash flow was robust at \)14.1 billion, supported by capital expenditures of $1.9 billion.
From recent earnings calls, AXP executives have highlighted continued strong credit performance globally and a strategic focus on premium customers with high credit quality. According to Christophe Le Caillec, CFO, the company now expects write-offs to stabilize around 2.1% for the remainder of 2025, revising earlier expectations of incremental increases. This conservative risk management aligns with their sustained investment in credit quality and portfolio diversification strategies.
This data demonstrates American Express’s resilient credit portfolio that contributes to its broader financial strength amid economic uncertainties. The stable delinquency and improving write-off trends, combined with disciplined risk oversight, position AXP for sustained growth and profitability.
For investors and analysts, these metrics affirm American Express’s proactive credit risk management approach and underscore the importance of monitoring securitized versus held-for-investment loan compositions to fully understand credit performance nuances.
In conclusion, the April 2025 delinquency and write-off statistics reinforce AXP’s thesis of credit portfolio stability and growth. The company’s strategic lending focus, supported by solid fiscal 2024 results and forward-looking financial stewardship, bodes well for mitigating economic headwinds while capitalizing on market expansions.
Source document: https://sec.gov/Archives/edgar/data/4962/000000496225000060/axp-20250515.htm
Tags: AmericanExpressCreditPerformance, CardMemberLoanTrends, U.S.ConsumerLending, SmallBusinessCredit, FinancialRiskManagement