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

American Express Company (NYSE:AXP), a prominent player in the Consumer Finance industry with a market capitalization of $224.83 billion, released preliminary delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member loans for June, as disclosed in a press release statement filed with the Securities and Exchange Commission. According to InvestingPro data, the company maintains strong financial health with an overall score of "GOOD."

As of June 30, total U.S. Consumer Card Member loans held for investment stood at $92.6 billion. Loans 30 days past due represented 1.3% of total loans, unchanged from May. The net write-off rate for principal only was reported at 2.1%, also matching the prior month. These stable metrics align with the company’s robust financial position, as InvestingPro analysis shows liquid assets exceeding short-term obligations with a healthy current ratio of 1.57.

For U.S. Small Business Card Member loans, the total was $30.1 billion at the end of June. The percentage of loans 30 days past due was 1.6%, compared with 1.5% in May. The net write-off rate for principal only rose to 2.6% in June from 2.4% in May.

Combined, total U.S. Consumer and U.S. Small Business Card Member loans held for investment were $122.7 billion at month-end.

American Express noted that, effective June 1, it reclassified $1.6 billion of Card Member loans related to its Amazon (NASDAQ:AMZN) small business cobrand portfolio to loans held for sale. These amounts are excluded from June’s reported figures.

The company also reported data from the American Express Credit Account Master Trust. For June, the trust’s ending total principal balance was $25.3 billion, with an annualized default rate net of recoveries of 1.3%, which was unchanged from May and April.

These statistics are presented as additional information to the data reported by the Lending Trust in its monthly Form 10-D filings. The company cautioned that the characteristics and performance of the Lending Trust differ from the total loan portfolios due to factors such as loan mix, vintage, and calculation methods.

All information is based on American Express’s SEC filing made Tuesday.

In other recent news, American Express has announced plans for a significant refresh of its U.S. Consumer and Business Platinum Cards, marking the largest investment ever in a card update for the company. The enhancements will focus on travel, dining, and lifestyle benefits, with more details expected to be revealed in the fall of 2025. American Express also disclosed its loan portfolio statistics, reporting U.S. Consumer Card Member loans at $92.0 billion with a delinquency rate of 1.3% and a net write-off rate of 2.1% as of May 31, 2025. In the business sector, U.S. Small Business Card Member loans were $32.0 billion, with a 1.5% delinquency rate and a 2.4% net write-off rate. Additionally, the Federal Reserve has maintained American Express’ Stress Capital Buffer at the minimum 2.5%, effective from October 2025 through September 2026. William Blair reiterated its Outperform rating for American Express, emphasizing the company’s success with younger consumers as a significant growth driver. The firm highlighted American Express’s competitive position in the financial technology sector, referencing recent corporate activities like Ramp’s valuation and Melio’s acquisition. Keefe, Bruyette & Woods also maintained an Outperform rating, noting the Platinum card refresh as a positive development amid competitive pressures.

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