How stable were the delinquency and write-off rates in the reported periods?

The rates remained largely stable. For the U.S. Consumer portfolio, the 30-day past due rate was consistently 1.4%, and the net write-off rate for the quarter was 2.3%. For the U.S. Small Business portfolio, the 30-day past due rate was 1.3%, and the quarterly net write-off rate was 1.8%.

Are these figures different from what is reported in the Lending Trust's 10-D filings?

Yes, these statistics provide additional information beyond the Lending Trust's 10-D reports. The 10-D reports focus on securitized loans, whereas this filing covers both securitized and non-securitized loans for the overall U.S. Consumer and U.S. Small Business portfolios. Differences in loan characteristics and calculation methodologies can lead to variations between the two sets of data.

What does the 'Net write-off rate – principal only' mean?

This metric represents the rate at which loans are written off as uncollectible, calculated based solely on the principal amount of the loan. It excludes any interest or fees that might have been owed, providing a cleaner view of the principal loss.

AXP 8-K: Regulation FD — Jul 15, 2019

Q: What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to furnish preliminary credit performance statistics for American Express's U.S. Consumer and U.S. Small Business Card Member lending portfolios for the periods ending June 30, 2019. This provides investors with timely insights into delinquency and write-off trends.

Summary

This 8-K filing from American Express (AXP) provides preliminary credit performance statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of and for the periods ending June 30, 2019. The report highlights delinquency and write-off rates, offering investors a glimpse into the health of Amex's loan books beyond what is disclosed in its standard SEC filings. Overall, the data indicates stable credit quality across both consumer and small business segments during the reported months and the second quarter of 2019. Key metrics such as 30-day past due percentages and net write-off rates remained largely consistent, suggesting a resilient borrower base despite the detailed disclosure. The filing also provides comparative data for the American Express Credit Account Master Trust, which is backed by securitized loans, noting that while the securitized portfolio's performance might differ due to various factors, the overall disclosed portfolio metrics reflect a steady credit environment for American Express during this period.

Key Highlights

1Preliminary credit performance data for U.S. Consumer and U.S. Small Business Card Member lending portfolios as of June 30, 2019.
2U.S. Consumer loans totaled $59.5 billion, with a 30-day past due rate of 1.4% and a net write-off rate of 2.2% for the three months ended June 30, 2019.
3U.S. Small Business loans totaled $13.2 billion, with a 30-day past due rate of 1.3% and a net write-off rate of 1.8% for the three months ended June 30, 2019.
4Overall credit metrics for both segments showed relative stability across April, May, and June 2019.
5Total Card Member loans for U.S. Consumer and Small Business combined reached $72.6 billion as of June 30, 2019.
6Provides supplementary information to the Lending Trust's Form 10-D reports, detailing credit performance for both securitized and non-securitized portfolios.
7The American Express Credit Account Master Trust showed a stable annualized default rate, net of recoveries, around 1.5%-1.6% for the three months ended June 30, 2019.

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

Summary

Key Highlights

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