8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jun 15, 2017)

Filed June 15, 2017For Securities:AXP

Summary

This 8-K filing by American Express Company (AXP) provides updated delinquency and write-off statistics for its U.S. Consumer Services (USCS) and U.S. Small Business Card Member lending portfolios for the months of March, April, and May 2017. The report details key credit performance metrics, including total loans, 30-day past due percentages, and net write-off rates. These figures are presented for both the entire portfolio and for loans held within the American Express Credit Account Master Trust, which is securitized. Investors can use this information to assess the credit quality and risk associated with American Express's lending operations. The data indicates stable, albeit low, delinquency and write-off rates across both consumer and small business segments during the reported period. The filing also clarifies differences in calculation methodologies between the total portfolio and the securitized trust, which can impact month-to-month reported rates.

Key Highlights

  • 1Provides updated credit performance metrics (delinquencies, write-offs) for USCS and U.S. Small Business portfolios for March, April, and May 2017.
  • 2Total loans in the USCS segment increased from $46.7 billion to $48.4 billion over the three months.
  • 3Total loans in the U.S. Small Business segment increased from $9.9 billion to $10.1 billion over the three months.
  • 430-day delinquency rates remained stable, hovering around 1.1%-1.2% for USCS and 1.1%-1.2% for U.S. Small Business.
  • 5Net write-off rates (principal only) were consistent at 1.8% for USCS and 1.5% for U.S. Small Business throughout the period.
  • 6Presents separate data for the securitized American Express Credit Account Master Trust, showing stable annualized default rates (net of recoveries) between 1.3% and 1.5%.
  • 7Explains methodological differences between reporting for the total loan portfolio versus the securitized trust.

Frequently Asked Questions

The filing reports on total loans, the percentage of loans 30 days past due, and net write-off rates (principal only) for both the U.S. Consumer Services (USCS) and U.S. Small Business Card Member lending portfolios, as well as for the securitized American Express Credit Account Master Trust.

The reported rates appear stable. For the USCS portfolio, 30-day past due rates were consistently around 1.1%-1.2%, and net write-off rates were stable at 1.8%. For the U.S. Small Business portfolio, 30-day past due rates were between 1.1% and 1.2%, and net write-off rates remained steady at 1.5% after April. The securitized trust also showed stable annualized default rates.

American Express presents data for its entire USCS and U.S. Small Business loan portfolios, which include both securitized and non-securitized loans. It also provides separate data for loans held within the American Express Credit Account Master Trust (the securitized portion). The filing notes that these two sets of data may not have identical characteristics due to differences in loan mix, vintage, aging, and calculation methodologies, particularly for write-off rates.

The total loan balances are showing a modest increase. For the USCS segment, total loans grew from $46.7 billion in March to $48.4 billion in May 2017. For the U.S. Small Business segment, total loans increased from $9.9 billion to $10.1 billion over the same period.