AXP · Earnings call · 2026Q3T · Full report

Credit Portfolio Performance

AMERICAN EXPRESS CO · 2026-10-23 · Importance 40 · Surprise 40

Total balances grew 8% year over year, while net interest income increased 10% and write-off dollars rose 3%. The delinquency rate remained at 1.2% or 1.3% for 15 consecutive quarters, and the Q3 provision expense was $985 million, including a $211 million reserve release from CECL model enhancements. Management said the reserve rate was 2.6% and linked improving credit metrics to the increasingly premium portfolio and stronger performance of new vintages.

Key facts

• Total cardmember balances grew 8% year over year, net interest income grew 10%, and write-off dollars grew 3% in Q3.
• American Express said the downside economic scenario used in its CECL modeling assumes peak unemployment in the 8% range.
• American Express said 76% of new accounts joined on fee-paying products, the highest percentage since it began reporting that metric.
• Q3 adjusted EPS included a $0.24 benefit from updates to CECL reserve models.
• Q3 provision expense was $985 million, including a $211 million reserve release driven by enhancements to CECL models.
• The delinquency rate remained 1.2% or 1.3% in each of the last 15 quarters.
• American Express said it does not target a specific NII or AR-balance number.