8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Apr 17, 2017)

Filed April 17, 2017For Securities:AXP

Summary

This 8-K filing by American Express Company provides an update on key credit performance metrics for its U.S. Consumer Services (USCS) and U.S. Small Business Card Member lending portfolios for the first quarter of 2017, specifically for the months ending January, February, and March 2017. The report details delinquency rates and net write-off rates, offering insights into the health of American Express's loan portfolios. For investors, the key takeaway is the relative stability in delinquency rates (holding steady at 1.2% for USCS and fluctuating slightly for U.S. Small Business) and a moderate net write-off rate. The USCS portfolio saw a net write-off rate of 1.8% in February and March, while the U.S. Small Business portfolio's write-off rate increased to 1.8% in March after being 1.5% in February. These figures are important for assessing the company's risk management and the potential impact of credit losses on its profitability.

Key Highlights

  • 1Provides preliminary delinquency and write-off statistics for Q1 2017 for U.S. Consumer Services (USCS) and U.S. Small Business portfolios.
  • 2USCS 30-day past due loans remained stable at 1.2% of total loans throughout the period.
  • 3U.S. Small Business 30-day past due loans fluctuated slightly, starting at 1.2%, moving to 1.3%, and returning to 1.2%.
  • 4Net write-off rate for USCS was 1.5% in January and increased to 1.8% for February and March.
  • 5Net write-off rate for U.S. Small Business increased to 1.8% in March, up from 1.5% in February and 1.4% in January.
  • 6Total U.S. Consumer and Small Business loans stood at $56.6 billion at the end of March 2017.
  • 7Information is supplemental to data reported for the American Express Credit Account Master Trust in Form 10-D filings.

Frequently Asked Questions

This filing reports on the 30-day past due loan percentages and net write-off rates (principal only) for American Express's U.S. Consumer Services and U.S. Small Business lending portfolios for the first quarter of 2017.

Delinquencies remained stable for U.S. Consumer Services at 1.2%. For U.S. Small Business, they saw a slight uptick in February to 1.3% before returning to 1.2%. Net write-off rates showed a slight increase for both segments towards the end of the quarter, reaching 1.8% for USCS in February and March, and for U.S. Small Business in March.

The filing notes that the data presented is supplemental and the characteristics of loans within the Credit Account Master Trust may differ from the total portfolios. Consequently, the reported credit performance of the Trust might not be identical to the overall USCS or U.S. Small Business portfolios due to differences in loan mix, vintage, aging, and calculation methodologies.

The total loan volume for U.S. Consumer Services was $46.7 billion as of March 31, 2017. The U.S. Small Business portfolio stood at $9.9 billion as of the same date. Combined, the total U.S. Consumer and Small Business Card Member loans were $56.6 billion.