American Express reports July card loan delinquency and write-off rates

Published 15/08/2025, 17:14
© Reuters.

American Express Company (NYSE:AXP), a $212.6 billion market cap financial services giant with a "GOOD" overall financial health score according to InvestingPro, released updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans for the months ended July 31, June 30, and May 31, 2025, according to a press release statement filed with the Securities and Exchange Commission.

As of July 31, 2025, total U.S. Consumer Card Member loans held for investment stood at $93.7 billion. The percentage of loans 30 days past due was 1.3%, unchanged from June and May. The net write-off rate for principal only was 2.0% in July, compared to 2.1% in both June and May. The company maintains strong liquidity with a current ratio of 1.6, and InvestingPro analysis shows liquid assets exceeding short-term obligations.

For U.S. Small Business Card Member loans, the total was $30.5 billion at the end of July. The 30-day delinquency rate was 1.6% for both July and June, and 1.5% in May. The net write-off rate for principal only was 2.7% in July, 2.6% in June, and 2.4% in May.

Combined, total card member loans held for investment for U.S. Consumer and U.S. Small Business segments were $124.2 billion at the end of July, compared to $122.7 billion at the end of June and $124.0 billion at the end of May.

The company also reported statistics for the American Express Credit Account Master Trust, which covers securitized credit card loans. For the period from July 1 to July 31, 2025, the ending total principal balance was $25.4 billion. The annualized default rate, net of recoveries, was 1.1% in July, compared to 1.3% in both June and May. Total balances 30 or more days delinquent were $0.2 billion for each of the three months.

These figures were disclosed as part of American Express’s Regulation FD Disclosure requirements. The company noted that the reported statistics provide additional information to data already reported by the American Express Credit Account Master Trust in its monthly SEC filings.

In other recent news, American Express reported second-quarter earnings that surpassed analyst expectations, with earnings per share (EPS) of $4.08 compared to the consensus estimate of $3.90. The company also slightly exceeded revenue expectations, as noted by Truist Securities, which subsequently raised its price target for American Express from $340 to $348 while maintaining a Buy rating. UBS analyst Erika Najarian reiterated a Neutral rating with a $340 price target, highlighting that investors had positioned negatively prior to the earnings release. Monness, Crespi, Hardt also maintained a Neutral rating, expressing concerns over slowing travel expenditure trends despite American Express’s solid quarterly results. The firm set a fair value estimate of approximately $285, based on future earnings projections. In a strategic move, American Express renewed and expanded its global partnership with AEG, becoming the official payment partner across more than 40 marquee properties worldwide. Additionally, the company announced the appointment of Randal K. Quarles and Noel Wallace to its Board of Directors, effective July 23, 2025, expanding the board to 14 members. These developments reflect American Express’s ongoing efforts to strengthen its market position and governance structure.

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