8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Sep 16, 2019)

Filed September 16, 2019For Securities:AXP

Summary

This 8-K filing by American Express (AXP) provides updated credit performance statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending August 31, July 31, and June 30, 2019. The report details delinquency rates and net write-off rates, offering investors insight into the company's credit risk management. While overall loan balances showed a modest increase, the reported delinquency and write-off metrics remained relatively stable, suggesting consistent credit quality within these key segments during the period. The filing also includes specific data for the American Express Credit Account Master Trust, a securitized portfolio. It's important for investors to note that the Lending Trust's statistics may differ from the aggregate portfolio data due to variations in loan characteristics and calculation methodologies. However, the trends in both datasets provide a consistent picture of manageable credit performance for American Express during the observed months.

Key Highlights

  • 1Furnishes delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios.
  • 2Data covers the months ending August 31, July 31, and June 30, 2019.
  • 3U.S. Consumer Card Member loans: 30-day past due rate remained stable at 1.4%-1.5%, and net write-off rate increased slightly from 2.2% to 2.3%.
  • 4U.S. Small Business Card Member loans: 30-day past due rate was stable at 1.2%-1.3%, with net write-off rate increasing slightly from 1.7% to 1.9%.
  • 5Total Card Member loans for these segments grew from $72.6 billion to $73.3 billion over the period.
  • 6Provides separate credit performance data for the American Express Credit Account Master Trust (a securitized portfolio).
  • 7Clarifies that Lending Trust statistics may differ from aggregate portfolio data due to methodology and loan mix variations.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with updated credit performance statistics, specifically delinquency and write-off rates, for American Express's U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months of June, July, and August 2019. This information is furnished under Regulation FD to ensure broad public disclosure.

For the U.S. Consumer Card Member loans, the 30-day past due rate remained stable between 1.4% and 1.5%, while the net write-off rate saw a modest increase from 2.2% to 2.3% by the end of August. For U.S. Small Business Card Member loans, the 30-day past due rate was also stable at 1.2%-1.3%, and the net write-off rate increased slightly from 1.7% to 1.9%.

The American Express Credit Account Master Trust is a securitized portfolio of Card Member loans. Its data is presented separately because it does not possess identical characteristics to the company's 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 between the Lending Trust's reported credit performance and the aggregate portfolio performance.

The reported credit metrics show relative stability with modest increases in write-off rates, which appear manageable given the slight growth in total loan balances. The increases are within historical ranges for credit card portfolios. Investors should continue to monitor these trends in subsequent filings, but at this time, the data suggests consistent credit quality management by American Express.