In the latest disclosure detailed in American Express’s 8-K filing dated June 16, 2025, the company presented key performance statistics on its U.S. Consumer and Small Business Card Member loan portfolios. This regulatory update provides crucial insights into delinquency and write-off rates, with significant reclassification of $1.6 billion in Amazon small business cobrand loans to loans held for sale, effective June 1, 2025. This reclassification reflects on the company’s focus on optimizing portfolio management and asset classification strategies.
As of May 31, 2025, the U.S. Consumer Card Member loans totaled \(92.0 billion, showing an increase from \)90.7 billion in April. The 30-day past due loan percentage improved slightly to 1.3% from 1.4% in April. The net write-off rate stabilized at 2.1%, showing minor variation quarter over quarter but remaining significantly below pre-pandemic levels. Similarly, the U.S. Small Business Card Member loans reached $32.0 billion as of May 31, with a 1.5% delinquency rate and a net write-off rate of 2.4%.
Collectively, total Card Member loans held for investment stood at approximately $124.0 billion by the end of May 2025. Key credit metrics illustrate continued strength in credit quality and risk management in a challenging macroeconomic landscape.
Supporting this data, analysis from recent American Express earnings calls reveals consistent growth in loan balances and receivables. For example, loan balances grew year-over-year by 15% in late 2024, outpacing spending growth, with over 70% of revolving loan growth driven by tenured customers. Despite expected normalization, American Express maintains one of the industry’s lowest increases in delinquency and write-off rates. CFO Christophe Le Caillec highlighted in the 2024 earnings call, “The write-off rate is around 2%, which is below pre-pandemic levels, and our credit performance is best-in-class relative to peers.”
From a financial perspective, American Express reported total revenues of \(74.2 billion and a net income of \)10.1 billion for the fiscal year 2024, with a net profit margin of approximately 13.65% and a return on assets of 3.73%. Total liabilities were recorded at $241.2 billion, emphasizing the substantial scale of the firm’s financial operations.
This credit performance update should be viewed in the wider context of American Express’s strategic initiatives to expand its premium customer base and maintain robust credit quality amidst evolving economic conditions. The data underscores resilience and effective risk management practices, positioning American Express for sustained growth in the competitive financial services sector.
For those monitoring macroeconomic and regulatory impacts on the financial sector, this report provides a quantitative benchmark on how a leading credit card lender navigates delinquency, write-offs, and loan portfolio composition.
Source Document: American Express 8-K June 16, 2025