What are the key credit metrics reported in this filing?

This filing reports on '30 days past due loans as a % of total' and 'Net write-off rate – principal only' for both the U.S. Consumer and U.S. Small Business Card Member lending portfolios. It also provides data for the American Express Credit Account Master Trust, including 'Ending total principal balance', 'Defaulted amount', and 'Annualized default rate, net of recoveries'.

Are the credit performance metrics for the U.S. Consumer and Small Business portfolios showing improvement or deterioration?

The metrics show relative stability with minor fluctuations. For the U.S. Consumer segment, the 30-day delinquency rate slightly improved from 1.5% to 1.4%, and the write-off rate decreased from 2.5% to 2.4%. For the U.S. Small Business segment, the 30-day delinquency rate held steady at 1.3%, and the write-off rate saw a marginal decrease from 1.9% to 1.8%. This indicates a stable credit environment for these portfolios during the reported period.

Why are there separate statistics for the 'Lending Trust' compared to the overall U.S. portfolios?

The filing clarifies that Card Member loans securitized through the American Express Credit Account Master Trust (the 'Lending Trust') may not have identical characteristics to the total U.S. Consumer or U.S. Small Business loan portfolios, which include both securitized and non-securitized loans. Differences in loan mix, vintage, aging, and calculation methodologies for write-off rates can lead to variations in reported credit performance between the two datasets.

How have the total loan balances changed over this period?

The total loan balances for the combined U.S. Consumer and U.S. Small Business portfolios have shown an increase, growing from $69.2 billion at the end of February 2019 to $71.1 billion at the end of April 2019.

AXP 8-K: Regulation FD — May 15, 2019

Summary

This 8-K filing from American Express (AXP) on May 15, 2019, provides an update on credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios, as well as for the American Express Credit Account Master Trust. The data covers the months ending February 28, March 31, and April 30, 2019. Investors can use this information to gauge the health of the company's loan portfolios and its ability to manage credit risk, which are key drivers of profitability in the credit card industry. Overall, the reported delinquency and write-off rates appear relatively stable across the examined periods. While minor fluctuations exist, the data suggests a consistent credit environment for AXP's U.S. consumer and small business segments. The filing also clarifies distinctions between the broader loan portfolios and those securitized in the Lending Trust, explaining potential differences in reported metrics.

Key Highlights

1Provides delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios for February, March, and April 2019.
2U.S. Consumer 30-day past due rate remained stable at 1.5% in February and March, slightly decreasing to 1.4% by April.
3U.S. Consumer net write-off rate (principal only) was consistently at 2.5% for February and March, moving to 2.4% in April.
4U.S. Small Business 30-day past due rate remained stable at 1.3% across all three months.
5U.S. Small Business net write-off rate (principal only) saw a slight decrease from 1.9% in February to 1.8% in April.
6Total U.S. Consumer and Small Business loans grew from $69.2 billion in February to $71.1 billion in April.
7The filing includes separate credit performance data for the American Express Credit Account Master Trust, showing a stable annualized default rate of 1.6% for March and April.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (May 15, 2019)

Summary

Key Highlights

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