8-K: American Express Card Delinquency & Write-Offs Stable

American Express Company reports stable U.S. Consumer and Small Business card delinquency and write-off rates for the months ending May, June, and July 2026, with a minor boost in June from a sale of previously written-off balances.

Summary

• American Express Company (AXP) has released its delinquency and write-off statistics for U.S. Consumer and U.S. Small Business card balances held for investment for May, June, and July 2026.
• Total U.S. Consumer card balances were $113.1 billion in July, with 30-day delinquencies at 1.1% and a net write-off rate of 1.7%.
• Total U.S. Small Business card balances were $46.1 billion in July, with 30-day delinquencies at 1.3% and a net write-off rate of 2.6%.
• The overall U.S. Consumer and Small Business card balances held for investment totaled $159.2 billion as of July 31, 2026.
• June 2026 saw a reduction in net write-off rates due to the sale of certain previously written-off card balances, which lowered the rates by approximately 0.3% for U.S. Consumer and 0.1% for U.S. Small Business portfolios.
• Statistics for the American Express Credit Account Master Trust (Lending Trust) show an ending principal balance of $24.9 billion in July, with an annualized default rate, net of recoveries, of 1.1%.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, as it provides current delinquency and write-off statistics that appear stable, with a minor positive impact from a sale of written-off balances in June.

Positives

• Delinquency rates for U.S. Consumer cards remained stable at 1.1% for the three months reported.
• Delinquency rates for U.S. Small Business cards showed a slight improvement from 1.4% in May and June to 1.3% in July.
• The sale of previously written-off balances in June provided a one-time positive impact, reducing net write-off rates for that month.
• The Lending Trust's annualized default rate, net of recoveries, was 1.1% in July, down from 1.2% in May, indicating stable performance in securitized assets.

Negatives

• The net write-off rate for U.S. Consumer card principal only was 1.7% in July, up from 1.4% in June, though this is within a historical context.
• The net write-off rate for U.S. Small Business card principal only was 2.6% in July, consistent with May's rate and higher than June's rate.

Risks

• The filing does not explicitly detail new risks, but the presented statistics are subject to variability due to factors like the number of days in a month, seasonality, and timing of information from third parties.
• Differences in calculation methodologies between the company's reported statistics and the Lending Trust's Form 10-D report can lead to month-to-month variability in reported credit performance.

Future Outlook

The filing does not contain specific forward-looking statements or guidance. It presents historical delinquency and write-off data.

Industry Context

StockSavvy.ai notes that the provided statistics offer a snapshot of credit quality within American Express's core U.S. card portfolios. Stable delinquency and write-off rates are generally expected in a mature credit card market, but any upward trend could signal increasing economic pressure on consumers and small businesses. The sale of written-off balances in June is a common practice to improve balance sheet metrics.

Comparison to Industry Standards

• Industry benchmarks for credit card delinquency and write-off rates vary significantly based on economic conditions, issuer risk appetite, and portfolio mix. However, for large, established issuers like American Express, maintaining 30-day delinquency rates below 2% and net write-off rates below 3% for consumer portfolios is generally considered a sign of healthy credit management.
• The reported 1.1% 30-day delinquency for U.S. Consumer cards and 1.3% for U.S. Small Business cards in July 2026 appear to be within or below typical industry ranges for prime credit portfolios.
• The net write-off rates of 1.7% for U.S. Consumer and 2.6% for U.S. Small Business in July 2026 are also within a reasonable range for a large credit card issuer, especially considering the sale of charged-off debt in June which can artificially lower the rate.
• Competitors such as Visa, Mastercard, Discover, and major bank card issuers (e.g., JPMorgan Chase, Bank of America, Citigroup) also report similar credit metrics, and American Express's performance here would be compared against their trends.

Stakeholder Impact

• Shareholders: Stable credit metrics generally support investor confidence in the company's risk management and profitability.
• Creditors: Consistent performance in loan portfolios reduces perceived risk for debt holders.
• Customers: Stable delinquency rates suggest that the majority of cardholders are managing their accounts responsibly, though a slight increase in write-offs could indicate some financial strain for a segment of customers.

Next Steps

• Continue to monitor delinquency and write-off statistics in future filings.
• Observe trends in the Lending Trust's credit performance.

Key Dates

Recommendation

The filing provides routine updates on credit performance metrics that are largely stable and expected. There are no significant positive or negative surprises that would warrant a change in investment recommendation. The data suggests continued stable operation rather than a catalyst for significant stock price movement.

Keywords

delinquency rates, write-off rates, credit performance, card balances, consumer credit, small business credit, securitization, loan portfolio