What is the primary purpose of this 8-K filing?

The primary purpose is to provide investors with timely, preliminary credit performance statistics for American Express's U.S. Consumer and U.S. Small Business card member loan portfolios for the months of April, May, and June 2018, and for the second quarter of 2018. This information is furnished under Regulation FD and supplements other SEC filings.

Are the credit metrics presented in the filing showing improvement or deterioration?

The credit metrics are showing improvement. Delinquency rates have remained stable, while net write-off rates for both the U.S. Consumer and U.S. Small Business portfolios have declined over the reported three-month period. The annualized default rate for the securitized trust also trended downwards.

How do the provided statistics for the total portfolios compare to the securitized loan trust data?

While both sets of data show generally positive trends, they are presented separately because the securitized loan trust may not have identical characteristics to the total portfolios. The company notes differences in loan mix, vintage, aging, and calculation methodologies, though the overall credit performance trends appear consistent during this period.

What are the key figures for loan balances and credit quality as of June 30, 2018?

As of June 30, 2018, total card member loans for U.S. Consumer and U.S. Small Business were $66.3 billion. The 30-day delinquency rate was 1.3% for the consumer segment and 1.2% for the small business segment. The preliminary net write-off rate for the three months ended June 30, 2018, was 2.2% for U.S. Consumer loans and 1.8% for U.S. Small Business loans.

AXP 8-K: Regulation FD — Jul 16, 2018

Summary

This 8-K filing from American Express (AXP) provides an update on key credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of and for the periods ending April 30, May 31, and June 30, 2018. The report is furnished under Regulation FD and offers preliminary data for June 2018 and the second quarter of 2018, supplementing information previously reported for securitized loan pools. Overall, the data indicates stable and improving credit quality. Delinquency rates remained consistent at 1.3% for U.S. Consumer loans and 1.2% for U.S. Small Business loans throughout the reported months. Net write-off rates showed a positive trend, declining for both segments, particularly for the U.S. Small Business portfolio which saw a decrease from 1.9% in April/May to 1.6% in June. This suggests effective credit risk management and a healthy borrower base. The filing also provides comparative data for the American Express Credit Account Master Trust, showing a slight decrease in the annualized default rate, net of recoveries, from 1.7% in April to 1.4% in June. While these securitized pools may have different characteristics than the total portfolios, the trends align, offering further confidence in the company's credit performance during the second quarter of 2018.

Key Highlights

1Stable 30-day delinquency rates for U.S. Consumer (1.3%) and U.S. Small Business (1.2%) card member loans.
2Improving net write-off rates for both segments, with U.S. Consumer decreasing from 2.3% to 2.0% and U.S. Small Business decreasing from 1.9% to 1.6% over the three months.
3Total card member loans for U.S. Consumer and U.S. Small Business grew from $64.5 billion in April to $66.3 billion in June.
4Preliminary data for June 30, 2018, and the three months ended June 30, 2018, are included.
5Securitized loan data from the American Express Credit Account Master Trust shows a declining annualized default rate, from 1.7% in April to 1.4% in June.
6The report clarifies that the securitized loan pool (Lending Trust) may have different characteristics and reporting mechanics compared to the total loan portfolios.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jul 16, 2018)

Summary

Key Highlights

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