8-KRegulation FD

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

Filed September 15, 2017For Securities:AXP

Summary

This 8-K filing from American Express (AXP) on September 15, 2017, provides updated credit performance statistics for its U.S. Consumer Services (USCS) and U.S. Small Business Card Member lending portfolios for the months of June, July, and August 2017. The report details key metrics such as total loans, 30-day delinquency rates, and net write-off rates for both consumer and small business segments. Investors can use this information to monitor the credit quality of Amex's loan book. The data indicates relatively stable delinquency and write-off rates across both segments during the reported period, suggesting no significant deterioration in credit risk. The filing also clarifies differences in reporting methodologies between the company's total portfolios and securitized assets held in the American Express Credit Account Master Trust.

Key Highlights

  • 1AXP is providing updated monthly delinquency and write-off statistics for its U.S. Consumer Services and U.S. Small Business lending portfolios.
  • 2For the U.S. Consumer Services segment, 30-day past due rates remained stable at 1.1% in June and increased slightly to 1.2% in July and August.
  • 3Net write-off rates for U.S. Consumer Services increased slightly from 1.7% in June to 1.8% in July and August.
  • 4For the U.S. Small Business segment, 30-day past due rates were consistently 1.1% across the three months.
  • 5Net write-off rates for U.S. Small Business were more variable, starting at 1.6% in June, rising to 1.9% in July, and returning to 1.6% in August.
  • 6Total U.S. Consumer and Small Business Card Member loans grew from $58.5 billion to $59.9 billion over the three-month period.
  • 7The filing includes separate data for the American Express Credit Account Master Trust, showing stable annualized default rates (net of recoveries) between 1.3% and 1.5%.

Frequently Asked Questions

The primary purpose of this 8-K filing is to furnish investors with updated monthly credit performance statistics for American Express's U.S. Consumer Services and U.S. Small Business lending portfolios, specifically focusing on delinquency and write-off rates for June, July, and August 2017.

No, the filing explicitly states that the Card Member loans securitized through the Lending Trust do not have identical characteristics to the total U.S. Consumer Services or U.S. Small Business loan portfolios. Differences in loan mix, vintage, aging, and calculation methodologies (e.g., using average loan balances for company portfolios versus end-of-period balances for the Trust) can lead to variations in reported credit performance between the company's overall portfolios and the securitized assets.

The reported rates show relative stability, particularly for the 30-day past due metric in both segments. While net write-off rates saw some slight increases or fluctuations, they remained within a generally manageable range. For the period reported, there is no indication of significant credit deterioration, suggesting a stable credit environment for American Express's U.S. consumer and small business portfolios.

While both segments show generally stable delinquency, the U.S. Small Business segment exhibited more volatility in its net write-off rate, increasing in July before returning to its June level. The U.S. Consumer Services segment showed a slight, consistent increase in its net write-off rate over the period. Both segments experienced modest growth in total loans.