American Express reports card loan delinquency and write-off rates for Q3

American Express Company (NYSE:AXP), a prominent player in the Consumer Finance industry with a market capitalization of $232.49 billion, released updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans held for investment for the months of July, August, and September 2025, as well as the third quarter ended September 30, 2025, according to a press release statement filed with the SEC. InvestingPro analysis indicates the company maintains strong financial health with a GOOD overall rating.

For U.S. Consumer Card Member loans, total loans stood at $94.1 billion as of September 30, 2025, compared to $94.6 billion at the end of August and $93.7 billion at the end of July. The percentage of loans 30 days past due was 1.4% in September, up from 1.3% in both August and July. The net write-off rate for principal only was 1.9% in September, compared to 2.0% in August and July. With a robust gross profit margin of 64.25% and annual revenue of $63.44 billion, American Express demonstrates strong operational efficiency in its lending business.

For U.S. Small Business Card Member loans, total loans were $30.7 billion at the end of September, $30.9 billion at the end of August, and $30.5 billion at the end of July. The 30 days past due rate remained steady at 1.6% for all three months. The net write-off rate for principal only was 2.5% in September, compared to 2.7% in August and July.

Across both U.S. Consumer and U.S. Small Business Card Member loans held for investment, the combined total was $124.8 billion as of September 30, 2025.

The company also provided data for the American Express Credit Account Master Trust, which reported an ending total principal balance of $25.0 billion as of September 30, 2025. The annualized default rate, net of recoveries, was 1.3% in September, 1.2% in August, and 1.1% in July.

These statistics were disclosed as part of American Express’s Regulation FD disclosure and are preliminary. The data does not include Card Member loans classified as held for sale. All information is based on the company’s press release statement filed with the SEC.

In other recent news, American Express has unveiled its new Amex Ads platform, a digital advertising initiative aimed at connecting brands with its 34 million U.S. Consumer Card Members. The platform will initially launch on AmexTravel.com and expand to other American Express digital properties, building on the success of the Amex Offers program, which facilitated $15 billion in global spend in 2024. Additionally, American Express has declared a regular quarterly dividend of $0.82 per common share, payable on November 10, 2025, to shareholders of record as of October 10, 2025.

In regulatory developments, the Reserve Bank of India fined American Express 3.18 million rupees ($35,818) for not complying with credit and debit card issuance regulations. The penalty was imposed due to the company’s failure to return credit balances to certain cardholders. Furthermore, American Express announced that its vice chairman, Douglas E. Buckminster, will retire in March 2026, continuing in his role until then.

RBC Capital has raised its price target for American Express to $380 from $360, maintaining an Outperform rating, citing the company’s strong customer base, earnings per share growth outlook, and robust credit quality.

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