What are the key takeaways regarding American Express's credit quality from this filing?

The filing indicates generally stable credit quality. While total loan balances are increasing across both U.S. Consumer Services and U.S. Small Business segments, the 30-day delinquency rates remain low and consistent. The net write-off rate for the U.S. Consumer Services segment saw a modest increase, but the U.S. Small Business segment's write-off rate remained stable. The data for the securitized Lending Trust also shows stable delinquency and a slight improvement in the annualized default rate.

Are the credit performance metrics for the Lending Trust identical to the company's overall portfolio?

No, the filing explicitly states that the Card Member loans securitized through the Lending Trust do not possess 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., average vs. end-of-period balances) can lead to variations in reported credit performance between the Lending Trust and the overall company portfolio.

What is the trend in loan growth and write-offs for the U.S. Consumer Services segment?

For the U.S. Consumer Services segment, total loans grew from $49.3 billion in September to $51.5 billion in November 2017. Concurrently, the net write-off rate (principal only) increased from 1.6% in September to 1.8% in October and further to 1.9% in November. The 30-day delinquency rate remained stable at 1.3%.

How does the credit performance of the U.S. Small Business segment compare to the U.S. Consumer Services segment?

The U.S. Small Business segment experienced loan growth from $10.5 billion to $10.8 billion. Its net write-off rate remained stable at 1.6% for October and November, after a slight increase from 1.4% in September. The 30-day delinquency rate for the Small Business segment was slightly lower and more stable than the consumer segment, ranging from 1.1% to 1.2%. Overall, the Small Business segment appears to have slightly more stable write-off performance during this period.

AXP 8-K: Regulation FD — Dec 15, 2017

Summary

American Express Company (AXP) filed an 8-K on December 15, 2017, to provide updated credit performance statistics for its U.S. Consumer Services (USCS) and U.S. Small Business segments for the months ending September 30, October 31, and November 30, 2017. The filing also includes credit performance data for the American Express Credit Account Master Trust. Investors should note that while overall loan balances are increasing, delinquency and write-off rates remain relatively stable, suggesting consistent credit quality in the near term. The provided data indicates a slight uptick in the net write-off rate for the USCS segment from 1.6% to 1.9% over the three months, while the U.S. Small Business segment remained stable at 1.6%. Delinquency rates for both segments stayed low and consistent. The data for the securitized Lending Trust also shows stable delinquency and a slightly declining annualized default rate. This filing offers a granular view of AXP's credit risk management, crucial for assessing the company's asset quality and potential for future loan losses.

Key Highlights

1Furnished updated delinquency and write-off statistics for U.S. Consumer Services (USCS) and U.S. Small Business lending portfolios for September, October, and November 2017.
2USCS total loans grew from $49.3 billion to $51.5 billion, with a slight increase in the net write-off rate from 1.6% to 1.9%.
3U.S. Small Business total loans grew from $10.5 billion to $10.8 billion, with the net write-off rate holding steady at 1.6%.
430-day delinquency rates remained consistently low for both USCS (1.3%) and U.S. Small Business (around 1.1%-1.2%).
5Total U.S. Consumer and Small Business Card Member loans increased from $59.9 billion to $62.3 billion over the period.
6Provided credit performance data for the American Express Credit Account Master Trust, showing stable delinquency and a declining annualized default rate (1.4% to 1.3%).
7Clarified that securitized loans in the Lending Trust may have different characteristics than the total loan portfolios.

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

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