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American Express Co. (NYSE:AXP), a prominent player in the Consumer Finance industry with a market capitalization of $182.11 billion, disclosed its latest U.S. Consumer and Small Business Card Member loan delinquency and write-off statistics today, showcasing stability in its lending portfolios. According to InvestingPro analysis, the company maintains a GOOD overall financial health score, supporting its robust market position.
The data, which encompasses the months ending January 31, February 28, and March 31, 2025, as well as the aggregated first quarter of the year, reveals that the company’s U.S. Consumer Card Member loans stood at $90.1 billion as of March 31. The percentage of loans 30 days past due remained consistent at 1.4% across the reported months. The net write-off rate for principal only was 2.4% for the month of March, showing a slight improvement from February’s 2.5%. This stability aligns with the company’s strong revenue growth of 9.3% and its track record of maintaining dividend payments for 55 consecutive years, as reported by InvestingPro.
For U.S. Small Business Card Member loans, the total loans reached $31.2 billion, with a 1.6% delinquency rate that held steady over the three-month period. The net write-off rate for these loans also remained constant at 2.6%.
The combined total for U.S. Consumer and Small Business Card Member loans amounted to $121.3 billion. These figures do not include loans related to the Lowe’s small business cobrand portfolio, which were reclassified as held for sale starting December 1, 2024.
Additionally, the American Express Credit Account Master Trust, which includes securitized card member loans, reported an annualized default rate net of recoveries at 1.5% for March 2025, with a total ending principal balance of $25.3 billion.
It’s important to note that the performance of the Lending Trust’s securitized loans may vary from that of the total U.S. Consumer or Small Business Card Member loan portfolios due to differences in loan characteristics and calculation methods.
This financial update is based on a press release statement and provides investors with a snapshot of American Express’s credit performance as of the end of the first quarter of 2025. Trading at a P/E ratio of 18.44, InvestingPro analysis suggests the stock is slightly undervalued relative to its Fair Value. For deeper insights into AXP’s valuation and 11 additional exclusive ProTips, investors can access the comprehensive Pro Research Report, available to InvestingPro subscribers.
In other recent news, American Express announced a 17% increase in its quarterly dividend, raising it to $0.82 per common share, effective May 9, 2025. This decision aligns with the company’s strategy and reflects its strong financial performance. Fitch Ratings has affirmed American Express’ long-term rating at ’A’ with a stable outlook, citing the company’s strong earnings, solid liquidity, and risk-adjusted capitalization. The company maintains a moderate risk profile and has shown resilience in economic downturns, supported by a growing card membership and positive operating leverage.
Keefe, Bruyette & Woods reiterated an Outperform rating for American Express, acknowledging potential risks but highlighting the company’s capacity to navigate market volatility. Meanwhile, Visa (NYSE:V) has made a $100 million bid to replace Mastercard (NYSE:MA) as the network for the Apple (NASDAQ:AAPL) credit card, with American Express also vying for a dual role in the deal. In corporate governance, American Express appointed Michael J. Angelakis to its Board of Directors, bringing his extensive experience in corporate finance and strategic investments to the company. These developments underscore American Express’ ongoing efforts to strengthen its market position and deliver value to shareholders.
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