Summary
This 8-K filing from American Express (AXP) on August 15, 2018, provides investors with updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending May 31, June 30, and July 31, 2018. The data offers a snapshot of the company's credit performance in these key segments, supplementing information previously reported in the American Express Credit Account Master Trust's 10-D filings. Investors can use this information to assess the current health and risk profile of Amex's loan book. The reported statistics show relatively stable credit metrics across both the U.S. Consumer and U.S. Small Business portfolios. For the U.S. Consumer segment, 30-day delinquencies remained steady at 1.3%, while the net write-off rate saw a slight fluctuation but ended July at 2.2%. In the U.S. Small Business segment, 30-day delinquencies edged slightly lower to 1.1% in July, and the net write-off rate increased to 2.0% from 1.6% in June. The filing also provides data for the securitized Lending Trust, indicating stable annualized default rates and delinquency levels, which generally align with the broader portfolio trends.
Key Highlights
- 1Provides updated delinquency and write-off statistics for U.S. Consumer and U.S. Small Business card member lending portfolios for May, June, and July 2018.
- 2U.S. Consumer 30-day past due rate remained stable at 1.3% through July 2018.
- 3U.S. Consumer net write-off rate was 2.2% for May and July, and 2.0% for June.
- 4U.S. Small Business 30-day past due rate slightly decreased to 1.1% in July after being 1.2% in May and June.
- 5U.S. Small Business net write-off rate increased to 2.0% in July, up from 1.6% in June and 1.9% in May.
- 6Total U.S. Consumer and Small Business card member loans grew from $65.9 billion in May to $66.9 billion in July.
- 7Securitized Lending Trust data shows stable annualized default rates (1.4%-1.5%) and 30+ day delinquencies ($0.2 billion) for the period.