American Express reports card portfolio performance

Published 15/05/2025, 17:14
© Reuters.

American Express Co (NYSE:AXP), a prominent player in the Consumer Finance industry with a market capitalization of $209.62 billion, disclosed its U.S. Consumer and Small Business Card Member lending portfolios’ delinquency and write-off statistics for April, March, and February of 2025, according to an 8-K filing with the Securities and Exchange Commission. The data, which does not include loans held for sale, shows delinquency rates and net write-off rates for the mentioned periods. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, supported by strong liquidity metrics.

As of April 30, 2025, American Express reported total U.S. Consumer Card Member loans of $90.7 billion, with a 1.4% delinquency rate for loans 30 days past due. The net write-off rate for principal only was 2.0%. For U.S. Small Business Card Member loans, the total stood at $31.6 billion, with a 1.6% delinquency rate and a net write-off rate of 2.4%. These metrics reflect the company’s robust risk management, contributing to its 9.05% revenue growth and maintaining its 55-year streak of consistent dividend payments. For deeper insights into AXP’s valuation and growth metrics, explore the comprehensive analysis available on InvestingPro.

The company also provided information on the credit performance of the American Express Credit Account Master Trust for the same periods. The ending total principal balance for the trust as of April 30, 2025, was $25.2 billion, with an annualized default rate, net of recoveries, of 1.3%.

The statistics offer additional insight beyond what is reported by the Lending Trust in its monthly Form 10-D reports to the SEC. Differences in reported credit performance may arise due to various factors such as the mix and aging of loans, calculation methodologies, and the timing of information received from third parties.

This disclosure is in line with the company’s commitment to providing transparent information regarding its financial performance and the quality of its credit assets. The data is based on a press release statement and is intended to inform investors and stakeholders of American Express’s current lending portfolio status.

In other recent news, American Express reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $3.64, which surpassed analyst expectations of $3.48. The company’s revenue matched forecasts at $17 billion, marking an 8% increase from the previous year. Despite this earnings beat, the stock experienced a decline in pre-market trading. Concurrently, American Express has issued $5 billion in new notes, a move aligned with its capital management strategy. On the analyst front, Redburn-Atlantic upgraded American Express from Sell to Neutral, while adjusting the price target to $255 from $270, citing a more balanced risk-reward profile following the stock’s recent decline. Citi maintained a Neutral rating with a price target of $300, noting concerns about consumer spending and lower fees impacting earnings. American Express continues to focus on long-term growth, maintaining its full-year revenue growth guidance of 8-10%.

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