Summary
This 8-K filing from American Express (AXP) provides updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending March 31, April 30, and May 31, 2020. The data is being furnished to provide additional context beyond what is reported in securitized trusts. Notably, the company implemented a Customer Pandemic Relief Program in Q1 2020, which froze delinquency status for affected customers, impacting how delinquency is measured. Overall, the reported statistics show a relatively stable, albeit slightly elevated, trend in delinquencies and write-offs during the early months of the COVID-19 pandemic. While total loan balances decreased from March to May, likely due to reduced consumer spending and proactive portfolio management, the 30-day past due percentages remained largely consistent. The net write-off rates also showed some fluctuation, with a slight uptick in the U.S. Consumer portfolio in May. Investors should note the specific definitions and the impact of the relief program on these metrics.
Key Highlights
- 1American Express is providing enhanced transparency into its U.S. Consumer and U.S. Small Business credit portfolios for March, April, and May 2020.
- 2A Customer Pandemic Relief Program was implemented in Q1 2020, temporarily freezing delinquency aging for impacted customers.
- 3Total U.S. Consumer and Small Business Card Member loans decreased from $69.0 billion in March to $62.5 billion in May 2020.
- 430-day past due rates for U.S. Consumer loans remained stable at 1.6%-1.7% during the period.
- 530-day past due rates for U.S. Small Business loans were 1.4%-1.6%.
- 6Net write-off rates for U.S. Consumer loans increased slightly to 3.0% in May 2020 from 2.7% in April.
- 7Net write-off rates for U.S. Small Business loans increased to 2.5% in May 2020 from 2.0% in prior months.