This 8-K filing from American Express provides preliminary June 2026 delinquency and net write-off rates for its U.S. Small Business and Consumer Card portfolios. The reported increases in these credit metrics suggest a potential softening in credit quality, which could impact the company's future profitability and loan loss provisions.
American Express filed an 8-K disclosing preliminary June 2026 credit metrics, showing an increase in 30-day past due rates and net write-off rates for both its U.S. Small Business and Consumer Card segments. Specifically, the U.S. Small Business Card 30 Days Past Due Rate rose to 1.4% and the Net Write-off Rate to 2.3%, while the U.S. Consumer Card 30 Days Past Due Rate hit 1.1% and the Net Write-off Rate 1.4%. These figures indicate a potential deterioration in the credit quality of American Express's loan portfolios, which is a key concern for investors. This matters because rising delinquencies and write-offs directly impact a financial institution's profitability by increasing loan loss provisions and reducing net interest income. While these are preliminary figures, a sustained trend could signal broader economic weakness affecting consumers and small businesses. This is a short-term negative for AXP, and potentially for other credit card issuers, as it suggests higher credit costs. The key risk for traders is that these trends continue, leading to downward revisions in earnings estimates for AXP and its peers.