8-KRegulation FD

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

Filed November 15, 2017For Securities:AXP

Summary

This 8-K filing by American Express (AXP) provides updated credit performance statistics for its U.S. Consumer Services (USCS) and U.S. Small Business Card Member lending portfolios, as well as for the American Express Credit Account Master Trust. The data covers the months ending August 31, September 30, and October 31, 2017. Investors can use this information to gauge the credit quality and potential risk within Amex's loan portfolios. The key takeaway from the provided data is that delinquency and write-off rates remained relatively stable and at manageable levels during the reporting period. The company is furnishing this information to provide additional insights beyond its regular SEC filings, allowing for a more granular view of credit trends.

Key Highlights

  • 1Delinquency rates for U.S. Consumer Services loans remained steady at 1.3% for September and October 2017.
  • 2Net write-off rate for U.S. Consumer Services loans was 1.6% in September and increased slightly to 1.8% in October.
  • 3U.S. Small Business Card Member loans showed consistent 30-day delinquency at 1.1% for the three months reported.
  • 4Net write-off rate for U.S. Small Business Card Member loans was 1.4% in September, returning to 1.6% in October.
  • 5Total U.S. Consumer and Small Business Card Member loans combined stood at $60.6 billion by October 31, 2017.
  • 6The American Express Credit Account Master Trust reported a stable annualized default rate, net of recoveries, at 1.4% for September and October.
  • 7The company clarifies that securitized loans within the Lending Trust may have different characteristics than the total loan portfolios, potentially impacting reported credit performance differences.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with updated, timely information on the credit performance of American Express's key lending portfolios, specifically the U.S. Consumer Services and U.S. Small Business segments, as well as the securitized loans in the American Express Credit Account Master Trust. This information is furnished in addition to their regular SEC reports.

Based on the data provided for August, September, and October 2017, the delinquency and write-off rates appear to be stable and within historical norms for a company of American Express's scale. While there was a slight uptick in the consumer net write-off rate in October, it remains at a level that suggests robust credit management. Investors should continue to monitor these trends in future filings.

The filing notes that the Card Member loans securitized through the Lending Trust do not have identical characteristics to the total USCS or U.S. Small Business Card Member loan portfolios. Differences can arise from the mix, vintage, and aging of loans, as well as calculation methodologies for write-off statistics (e.g., using average loan balances for USCS/Small Business vs. end-of-period principal for the Trust). This means their reported credit performance may vary.