American Express Reports June Card Loan Delinquency and Write-Off Rates
American Express reports June card loan delinquency and write-off rates, reflecting credit quality trends amid economic shifts. #AmericanExpress #CreditRisk
Executive Summary
American Express Company (American Express), a global leader in payment and travel services, has released its June data on card loan delinquency and write-off rates. These metrics provide critical insights into the credit quality of its consumer and commercial card portfolios amid evolving economic conditions.
Company Overview
Founded in 1850 and headquartered in New York City, American Express operates a diversified business model encompassing charge and credit card products, merchant acquiring, and travel-related services. The company is publicly traded on the NYSE under the ticker symbol AXP.
June 2025 Delinquency and Write-Off Rates
| Metric | June 2025 | May 2025 | June 2024 |
|---|---|---|---|
| 30+ Days Delinquency Rate (Consumer Cards) | 1.45% | 1.40% | 1.20% |
| 30+ Days Delinquency Rate (Commercial Cards) | 0.85% | 0.80% | 0.75% |
| Net Charge-Off Rate (Consumer Cards) | 2.10% | 2.05% | 1.90% |
| Net Charge-Off Rate (Commercial Cards) | 1.25% | 1.20% | 1.10% |
Analysis of Credit Quality Trends
The slight increase in delinquency and write-off rates compared to May 2025 suggests a modest softening in credit performance, potentially influenced by macroeconomic factors such as inflationary pressures and interest rate hikes. However, year-over-year comparisons indicate that credit quality remains relatively stable.
Strategic Implications
American Express continues to employ rigorous credit risk management practices, including enhanced underwriting standards and proactive customer engagement, to mitigate potential losses. The company’s diversified portfolio and strong brand loyalty support resilience in credit performance.
Risks and Considerations
- Economic downturns impacting consumer and business repayment capacity.
- Rising interest rates increasing credit costs.
- Competitive pressures affecting customer acquisition and retention.
Conclusion
American Express’s June 2025 card loan delinquency and write-off rates reflect cautious optimism amid economic uncertainties. Ongoing monitoring of credit trends will be essential for stakeholders assessing the company’s financial health.