Summary
This 8-K filing by American Express (AXP) provides an update on the credit performance of its U.S. Consumer and U.S. Small Business Card Member loan portfolios for the periods ending July 31, August 31, and September 30, 2019, along with a three-month summary for the quarter ended September 30, 2019. The information is furnished to provide additional context beyond the data reported in the company's securitization trusts. Investors should note that the presented statistics are preliminary and cover both securitized and non-securitized loans, which may differ from the performance reported by specific trusts. Overall, the credit metrics presented for both the U.S. Consumer and U.S. Small Business segments appear stable and show only minor fluctuations. The 30-day delinquency rates remain low, and the net write-off rates are within historical norms, suggesting resilient credit quality in American Express's core lending portfolios despite the ongoing economic environment. The filing also includes credit performance data for the American Express Credit Account Master Trust, which generally aligns with the broader portfolio trends.
Key Highlights
- 1Provides preliminary delinquency and write-off rate statistics for U.S. Consumer and U.S. Small Business Card Member loan portfolios as of and for the months ending July, August, and September 2019.
- 2U.S. Consumer Card Member loans: Total loans stood at $59.7 billion as of September 30, 2019, with 30-day past due loans at 1.5% and a net write-off rate of 2.0% for the three months ended September 30, 2019.
- 3U.S. Small Business Card Member loans: Total loans were $13.4 billion as of September 30, 2019, with 30-day past due loans at 1.3% and a net write-off rate of 1.7% for the three months ended September 30, 2019.
- 4Overall U.S. Consumer and Small Business Card Member loans totaled $73.2 billion as of September 30, 2019.
- 5Net write-off rates are based on principal only, excluding interest and/or fees.
- 6Includes credit performance data for the American Express Credit Account Master Trust, showing a stable annualized default rate, net of recoveries, generally around 1.5% to 1.6% for the three months presented.
- 7Highlights that the characteristics of loans within the Lending Trust may differ from the total U.S. Consumer or U.S. Small Business loan portfolios, potentially leading to variations in reported credit performance.