Summary
This 8-K filing from American Express (AXP) on February 18, 2020, provides investors with updated delinquency and write-off statistics for key U.S. lending portfolios. The report focuses on the U.S. Consumer Card Member lending portfolio within the Global Consumer Services Group and the U.S. Small Business Card Member lending portfolio within Global Commercial Services, covering the months of November 2019, December 2019, and January 2020. The disclosed data indicates stable credit performance across these portfolios. Delinquency rates for both consumer and small business segments remained consistent at 1.6% and 1.3%, respectively. Net write-off rates also showed only minor fluctuations, suggesting a controlled credit environment for American Express during this period. The filing also provides supplementary information on the American Express Credit Account Master Trust, a securitized portfolio, noting differences in reporting metrics compared to the total loan portfolios.
Key Highlights
- 1Stable 30-day delinquency rates: U.S. Consumer at 1.6% and U.S. Small Business at 1.3% for all reported months.
- 2Slightly declining net write-off rates: U.S. Consumer from 2.5% to 2.3%, and U.S. Small Business from 2.1% to 1.9% between December 2019 and January 2020.
- 3Total Card Member loans (U.S. Consumer and Small Business) were $74.0 billion as of January 31, 2020, down slightly from $76.0 billion as of December 31, 2019.
- 4The filing provides data for both securitized and non-securitized loan portfolios, offering a comprehensive view.
- 5Information on the American Express Credit Account Master Trust (securitized portfolio) shows consistent annualized default rates (net of recoveries) around 1.6%-1.7%.
- 6Total loans in the U.S. Consumer segment decreased from $62.4 billion (Dec 2019) to $60.2 billion (Jan 2020).
- 7Total loans in the U.S. Small Business segment remained stable around $13.7-$13.8 billion.