Are the provided U.S. loan portfolio statistics the same as those reported in the securitized trust filings?

No, the filing explicitly states that the Card Member loans securitized through the Lending Trust do not possess identical characteristics to the total U.S. Consumer or U.S. Small Business Card Member loan portfolios. The reported statistics include both securitized and non-securitized loans, and methodologies for calculating metrics like write-off rates (e.g., using average loan balances versus end-of-period balances) may differ, potentially leading to variations in reported credit performance between the two sets of data.

What does the trend in delinquency and write-off rates suggest about the health of American Express's loan portfolios?

The trends shown in this filing suggest a stable credit environment for American Express's U.S. loan portfolios during the observed period. Delinquency rates remained largely consistent, and net write-off rates showed only minor fluctuations, indicating that borrowers are generally meeting their payment obligations. This stability is a positive indicator for the company's credit quality.

What is the significance of the data for the American Express Credit Account Master Trust?

The data for the American Express Credit Account Master Trust provides insight into the credit performance of the specific pool of loans that have been securitized. The consistent annualized default rate of 1.6% for the three months ending May 1, 2019, aligns with the overall stable credit performance observed in the broader U.S. Consumer and Small Business portfolios, reinforcing the company's generally sound credit risk management during this period.

AXP 8-K: Regulation FD — Jun 17, 2019

Q: What specific credit metrics is American Express disclosing in this filing?

American Express is disclosing statistics on total loans, 30-day past due loans as a percentage of total loans, and net write-off rates (principal only) for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months of March, April, and May 2019. It also provides data on defaulted amounts and annualized default rates (net of recoveries) for the American Express Credit Account Master Trust.

Summary

This 8-K filing by 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 of March, April, and May 2019. The report also includes related credit performance data for the American Express Credit Account Master Trust. Investors can use this information to assess the company's credit quality and potential risks within its loan portfolios. Overall, the provided data indicates stable, albeit modest, credit performance across both the U.S. Consumer and U.S. Small Business segments. Delinquency rates remained relatively consistent, and write-off rates showed minimal fluctuation. While the data is furnished and distinct from SEC filings related to securitized trust assets (like the 10-D filings), it offers valuable, up-to-date insights into the underlying credit health of American Express's lending business.

Key Highlights

1The filing provides U.S. Consumer Card Member loan portfolio statistics, including total loans, 30-day delinquencies, and net write-off rates for March, April, and May 2019.
2U.S. Small Business Card Member loan portfolio statistics, mirroring the consumer segment, are also presented for the same three-month period.
3Total U.S. Consumer and U.S. Small Business Card Member loans combined stood at $72.0 billion as of May 31, 2019.
4The 30-day past due rate for the U.S. Consumer portfolio remained stable at 1.4% in April and May 2019, with a slight uptick to 1.5% in March.
5The net write-off rate for the U.S. Consumer portfolio was 2.4% in April and 2.5% in March and May.
6The U.S. Small Business 30-day past due rate was stable at 1.3% in March and April, decreasing slightly to 1.2% in May.
7The net write-off rate for the U.S. Small Business portfolio ranged from 1.8% to 2.0% during the reported periods.
8Additional data for the American Express Credit Account Master Trust shows a consistent annualized default rate, net of recoveries, of 1.6% for the three months ending May 1, 2019.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jun 17, 2019)

Summary

Key Highlights

Frequently Asked Questions