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American Express Co (NYSE:AXP), a prominent player in the Consumer Finance industry with a market capitalization of $207.2 billion, reported on Monday its delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member loans held for investment for the months ending May 31, April 30, and March 31, 2025. According to InvestingPro data, the company maintains strong financial health with a current ratio of 1.57, indicating liquid assets exceed short-term obligations. The company also announced a reclassification of approximately $1.6 billion in Card Member loans related to its Amazon (NASDAQ:AMZN) small business cobrand portfolio to loans held for sale, effective June 1, 2025. This reclassification will exclude these loans from future investment loan reports starting in June.
The disclosed statistics provide insights into the credit performance of American Express’s loan portfolios, including total loans, 30 days past due loans as a percentage of total loans, average loans, and net write-off rates. For instance, as of May 31, 2025, U.S. Consumer Card Member loans stood at $92.0 billion, with a 30 days past due rate of 1.3% and a net write-off rate of 2.1%. U.S. Small Business Card Member loans were reported at $32.0 billion, with a 30 days past due rate of 1.5% and a net write-off rate of 2.4%. These metrics contribute to American Express’s solid revenue of $62.05 billion and net income of $10.14 billion in the last twelve months.
These figures are part of American Express’s regular disclosures and provide additional context beyond the data reported by the American Express Credit Account Master Trust in its monthly SEC filings. The company noted that the credit performance reported by the Lending Trust could differ from month to month due to various factors, including loan mix, vintage, and aging, as well as the mechanics of calculation for the Lending Trust net write-off rate.
This information is based on a press release statement and aims to give investors a clearer understanding of American Express’s loan portfolio performance, which is critical for assessing the company’s financial health and credit risk. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with additional metrics and insights available in the comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.
In other recent news, American Express has announced significant updates to its U.S. Consumer and Business Platinum Cards, marking the company’s largest investment in a card refresh. The updates will enhance travel, dining, and lifestyle benefits, with detailed changes expected to be revealed later this year. Additionally, the company issued €1 billion in notes due in 2032, as part of its ongoing capital management strategy. American Express also disclosed its U.S. Consumer and Small Business Card Member lending portfolios’ performance, reporting a 1.4% delinquency rate for consumer loans and a 1.6% rate for small business loans. In another financial move, the company issued $5 billion in new notes, including several Fixed-to-Floating Rate Notes with varying maturities. Redburn-Atlantic recently upgraded American Express stock to Neutral from Sell, while reducing the price target to $255, citing concerns over the company’s ability to achieve its revenue growth targets. The firm’s reassessment reflects a more balanced view of the risks and rewards associated with investing in the company. American Express continues to expand its global lounge network and dining offerings, further enhancing its cardholder benefits.
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