Summary
This 8-K filing from American Express (AXP) provides an update on credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of and for the months ending October 31, November 30, and December 31, 2018. The report offers preliminary data for December 2018 and the fourth quarter of 2018. Investors are provided with key figures such as total loans, delinquency rates (30 days past due), and net write-off rates. The data indicates stable credit performance across both segments. The U.S. Consumer Card Member loans saw total loans grow to $59.9 billion by December 31, 2018, with a consistent 30-day delinquency rate of 1.4% and a net write-off rate of 2.2% for the quarter. The U.S. Small Business segment also showed steady performance, with total loans at $12.1 billion and a 30-day delinquency rate of 1.3%, and a net write-off rate of 1.6% for the quarter. The filing also includes supplementary data from the American Express Credit Account Master Trust, which generally reflects consistent, low annualized default rates.
Key Highlights
- 1Preliminary U.S. Consumer Card Member loan balances reached $59.9 billion by December 31, 2018, showing growth from prior months.
- 2U.S. Consumer segment maintained a consistent 1.4% 30-day past due rate across the reported periods.
- 3Net write-off rate for U.S. Consumer loans was 2.2% for the three months ended December 31, 2018.
- 4U.S. Small Business Card Member loan balances remained stable around $12.1 billion.
- 5U.S. Small Business segment experienced a 30-day past due rate of 1.3% for the fourth quarter of 2018.
- 6Net write-off rate for U.S. Small Business loans was 1.6% for the three months ended December 31, 2018.
- 7The American Express Credit Account Master Trust reported consistent annualized default rates, generally around 1.0-1.1%.