8-KRegulation FD

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

Filed November 15, 2019For Securities:AXP

Summary

This 8-K filing from American Express (AXP) provides updated credit performance statistics for its U.S. Consumer and U.S. Small Business Card Member loan portfolios for the months ending August 31, September 30, and October 31, 2019. The report also includes data for the American Express Credit Account Master Trust. Investors can use this information to gauge the health of American Express's loan portfolios and its risk management. Key metrics presented include total loans, 30-day past due percentages, and net write-off rates for both consumer and small business segments. Additionally, data on the securitized portfolio, such as ending principal balance, defaulted amounts, and annualized default rates, are provided. While overall loan volumes remained relatively stable across the reported months, slight fluctuations in delinquency and write-off rates offer insights into credit quality trends.

Key Highlights

  • 1Furnishes updated delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios for August, September, and October 2019.
  • 2U.S. Consumer Card Member loans totaled approximately $60 billion, with 30-day past due rates ranging from 1.5% to 1.6% and net write-off rates between 2.0% and 2.3%.
  • 3U.S. Small Business Card Member loans totaled approximately $13.4-$13.7 billion, with 30-day past due rates around 1.2%-1.3% and net write-off rates between 1.7% and 1.9%.
  • 4Total combined U.S. Consumer and Small Business Card Member loans were around $73.2-$73.7 billion.
  • 5Provides credit performance data for the American Express Credit Account Master Trust, including ending principal balance, defaulted amounts, and annualized default rates.
  • 6The trust's ending principal balance was stable at approximately $30.1 billion in September and October 2019.
  • 7Annualized default rates for the trust, net of recoveries, were consistent at 1.5%-1.6% for the reported periods.

Frequently Asked Questions

The filing reports on U.S. Consumer and U.S. Small Business Card Member loan portfolios, providing total loans, 30 days past due loans as a percentage of total loans, average loans, and net write-off rates (principal only). It also details metrics for the American Express Credit Account Master Trust, including ending total principal balance, defaulted amount, annualized default rate (net of recoveries), and total 30+ days delinquent amounts.

For the U.S. Consumer Card Member loans, 30-day delinquency remained steady at 1.5%-1.6%, while the net write-off rate saw a slight increase from 2.0% in September to 2.3% in August and October. For U.S. Small Business loans, 30-day delinquency was relatively stable at 1.2%-1.3%, with net write-off rates fluctuating between 1.7% and 1.9%.

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

The total loan balances for both U.S. Consumer Card Member loans (around $60 billion) and U.S. Small Business Card Member loans (around $13.4-$13.7 billion) remained relatively stable across the three months reported (August, September, and October 2019). The ending principal balance for the American Express Credit Account Master Trust was also consistent at approximately $30.1 billion for September and October 2019.