Summary
This 8-K filing from American Express (AXP) provides an update on delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of February 29, 2020, and January 31, 2020, compared to December 31, 2019. The report aims to offer additional insights beyond the data typically reported through the American Express Credit Account Master Trust. Overall, the statistics indicate stable credit performance across both consumer and small business segments during the reported periods, with slight fluctuations in total loan balances but consistent delinquency and write-off rates. This information is particularly relevant for investors to assess the company's credit risk management in the period leading up to the onset of widespread economic uncertainty.
Key Highlights
- 1U.S. Consumer Card Member loans saw total loan balances decrease from $62.4 billion in December 2019 to $59.1 billion in February 2020.
- 2The 30 days past due rate for U.S. Consumer Card Member loans remained stable at 1.6% across all reported periods.
- 3The net write-off rate for U.S. Consumer Card Member loans increased slightly from 2.3% in January 2020 to 2.6% in February 2020, but was lower than 2.5% in December 2019.
- 4U.S. Small Business Card Member loans showed a modest increase in total loan balances from $13.7 billion in December 2019 to $14.0 billion in February 2020.
- 5The 30 days past due rate for U.S. Small Business Card Member loans remained consistent at 1.3% throughout the reported periods.
- 6The net write-off rate for U.S. Small Business Card Member loans was stable at 1.9% for January and February 2020, down from 2.1% in December 2019.
- 7Data for the American Express Credit Account Master Trust shows a slight decrease in the ending total principal balance and a marginal increase in the annualized default rate, net of recoveries, in February 2020 compared to January 2020.