Summary
This 8-K filing from American Express (AXP) provides updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending August 31, September 30, and October 31, 2018. The report aims to offer a more granular view of credit performance beyond the data reported for the American Express Credit Account Master Trust. Investors should note that these presented statistics cover both securitized and non-securitized loans, and thus may not perfectly align with the Lending Trust's reported figures due to differences in loan characteristics and calculation methodologies. Overall, the data suggests stable, or slightly improving, credit quality across both the Consumer and Small Business portfolios during the period. While 30-day delinquencies remained relatively consistent, net write-off rates showed a slight decline or stabilization, particularly in the U.S. Consumer segment. The filing also provides specific data for the American Express Credit Account Master Trust, indicating a decreasing annualized default rate, net of recoveries, for the trust.
Key Highlights
- 1Furnishes delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios for August, September, and October 2018.
- 2U.S. Consumer Card Member loans: Total loans grew from $55.6B to $56.9B over the period. 30-day delinquencies were stable at 1.3%-1.4%. Net write-off rate (principal only) decreased slightly from 2.2% to 2.0%.
- 3U.S. Small Business Card Member loans: Total loans increased from $11.8B to $12.1B. 30-day delinquencies remained low, at 1.1%-1.2%. Net write-off rate (principal only) improved from 1.7% to 1.5%.
- 4Total U.S. Consumer and Small Business Card Member loans combined reached $69.0B by October 31, 2018.
- 5Provides specific data for the American Express Credit Account Master Trust, including ending principal balance, defaulted amount, and annualized default rate.
- 6The Lending Trust's annualized default rate, net of recoveries, decreased from 1.5% in August to 1.0% in October.
- 7Explicitly states that the presented statistics may differ from the Lending Trust's Form 10-D reports due to variations in loan characteristics and calculation methods.