Summary
This 8-K filing from American Express (AXP) on April 15, 2020, provides preliminary credit performance statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the periods ending January 31, February 29, and March 31, 2020. The data reveals a slight increase in delinquency rates and net write-off rates in March 2020, particularly for the U.S. Consumer segment, which could signal early impacts of the evolving economic environment at the time. Despite the uptick in March, the overall credit metrics remain relatively stable when viewed over the three-month period. The filing also includes separate statistics for the American Express Credit Account Master Trust, which are presented to offer additional context, though they may not be directly comparable to the total portfolio due to differences in calculation methodologies and loan characteristics. Investors should monitor these trends closely for any sustained deterioration in credit quality as economic conditions evolve.
Key Highlights
- 1Preliminary credit statistics for U.S. Consumer and U.S. Small Business card member loan portfolios for January, February, and March 2020.
- 2U.S. Consumer 30-day past due loans increased to 1.7% in March 2020 from 1.6% in prior months.
- 3U.S. Consumer net write-off rate increased to 2.8% in March 2020 from 2.6% in February and 2.3% in January.
- 4U.S. Small Business 30-day past due loans remained stable at 1.4% in March 2020, up slightly from 1.3% in prior months.
- 5U.S. Small Business net write-off rate increased to 2.0% in March 2020 from 1.9% in prior months.
- 6Total U.S. Consumer and Small Business card member loans decreased to $69.0 billion in March 2020 from $74.0 billion in January 2020, reflecting a general trend of loan reduction.
- 7Separate data for the American Express Credit Account Master Trust shows a slight increase in the annualized default rate to 2.0% in March 2020, with some fluctuations in prior months.