{"id":66663,"date":"2026-08-17T12:38:10","date_gmt":"2026-08-17T16:38:10","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/american-express-reports-steady-july-delinquencies-and-1-7-charge-off-rate\/66663\/"},"modified":"2026-08-17T12:38:10","modified_gmt":"2026-08-17T16:38:10","slug":"american-express-reports-steady-july-delinquencies-and-1-7-charge-off-rate","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/american-express-reports-steady-july-delinquencies-and-1-7-charge-off-rate\/66663\/","title":{"rendered":"American Express Reports Steady July Delinquencies and 1.7% Charge-Off Rate"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>American Express (<a href=\"\/stock\/AXP\">AXP<\/a>) reported a 30-day delinquency rate of 1.1% for its U.S. Consumer card portfolio in July 2026, remaining steady compared to previous months.<\/strong><\/li>\n<li><strong>The net write-off rate for U.S. Consumer cards rose to 1.7% in July, up from 1.4% in June, though the prior month&#39;s figure was artificially lowered by a portfolio sale.<\/strong><\/li>\n<li><strong>Total U.S. card balances held for investment reached $159.2 billion as of July 31, 2026, comprising $113.1 billion in consumer balances and $46.1 billion in small business balances.<\/strong><\/li>\n<li><strong>U.S. Small Business credit metrics showed slightly higher stress, with a 1.3% delinquency rate and a 2.6% net write-off rate for the month.<\/strong><\/li>\n<\/ul>\n<p>American Express (<a href=\"\/stock\/AXP\">AXP<\/a>) released its monthly credit performance data for July 2026 on Monday, highlighting the continued resilience of its premium borrower base. The company reported that <strong>30-day delinquencies for its U.S. Consumer card portfolio held steady at 1.1%<\/strong>, a figure that has remained remarkably consistent throughout the second quarter and into the third.<\/p>\n<p>The <strong>net write-off rate for U.S. Consumer principal reached 1.7% in July<\/strong>, representing a modest increase from the <strong>1.4% reported in June<\/strong>. However, management noted that the June figure was positively impacted by approximately <strong>0.3% due to the sale of previously written-off card balances<\/strong> to a third party. When adjusted for this one-time event, the underlying credit loss trend appears stable.<\/p>\n<h3>Segment Performance and Balances<\/h3>\n<p>The company&#39;s total U.S. card balances held for investment stood at <strong>$159.2 billion<\/strong> at the end of July. Within this total, the <strong>U.S. Consumer segment accounted for $113.1 billion<\/strong>, while the <strong>U.S. Small Business segment held $46.1 billion<\/strong>. The small business portfolio exhibited slightly higher credit risk, with a <strong>30-day delinquency rate of 1.3%<\/strong> and a <strong>net write-off rate of 2.6%<\/strong>.<\/p>\n<p>For the <strong>American Express Credit Account Master Trust<\/strong>, which tracks a narrower pool of revolve-eligible balances, the <strong>annualized default rate was 1.1%<\/strong> for the July period. The trust ended the month with a <strong>total principal balance of $24.9 billion<\/strong>, with only <strong>$0.2 billion in balances more than 30 days delinquent<\/strong>.<\/p>\n<h3>Market Context and Outlook<\/h3>\n<p>The latest credit data comes as American Express (<a href=\"\/stock\/AXP\">AXP<\/a>) continues to lean into its strategy of targeting high-net-worth individuals and premium millennial consumers. Despite broader economic concerns, the company has maintained a <strong>strong return on equity of 34%<\/strong> and recently reported <strong>trailing twelve-month revenue of over $70 billion<\/strong>.<\/p>\n<p><em>Market analysts view these credit metrics as a sign of continued strength in the high-end consumer segment.<\/em> While some competitors have seen rising delinquency rates as inflation pressures lower-income households, American Express (<a href=\"\/stock\/AXP\">AXP<\/a>)&#39;s focus on affluent cardholders appears to be providing a significant buffer against credit deterioration. The stock opened Monday&#39;s session at <strong>$342.27<\/strong>, trading near its estimated fair value as investors digest the latest performance statistics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways American Express (AXP) reported a 30-day delinquency rate of 1.1% for its U.S. Consumer card portfolio in July 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