What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to provide investors with updated, preliminary credit performance statistics for American Express's U.S. Consumer and U.S. Small Business card portfolios for the months of April, May, and June 2020. This includes data on loan balances, delinquency rates, and net write-off rates.

How did the COVID-19 pandemic impact the reported delinquency rates?

American Express implemented a Customer Pandemic Relief Program which temporarily paused the aging of delinquency for affected customers. This program, closed to new enrollments in June 2020, likely influenced the reported delinquency figures. Investors should note that delinquency status was generally frozen for participants, which may have masked a true increase in delinquencies during that period.

Are the reported credit statistics for all of American Express's U.S. card portfolios?

No, the statistics presented are for the U.S. Consumer Card Member lending portfolio of its Global Consumer Services Group and the U.S. Small Business Card Member lending portfolio of its Global Commercial Services operating segment. These portfolios include both securitized and non-securitized loans. The filing notes that the credit performance of the American Express Credit Account Master Trust (which holds securitized loans) may differ due to various factors.

What are the trends in write-off rates for American Express's U.S. card portfolios?

For the U.S. Consumer segment, the net write-off rate for the three months ended June 30, 2020, was 2.8%, showing a slight decrease from the previous two months. For the U.S. Small Business segment, the net write-off rate for the same period was 2.3%, which was an improvement from the prior two months.

AXP 8-K: Regulation FD — Jul 15, 2020

Summary

This 8-K filing from American Express (AXP) provides an update on key credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of and for the periods ending April, May, and June 2020. The report includes delinquency rates and net write-off rates, offering investors a glimpse into the company's credit risk exposure during the early stages of the COVID-19 pandemic. Notably, the filing indicates a slight decrease in 30-day past due rates for the U.S. Consumer portfolio in June compared to prior months, a trend that may be influenced by the company's Customer Pandemic Relief Program. While the program offered temporary relief to affected customers and was closed to new enrollees in June 2020, its impact on reported delinquency figures warrants investor attention. The data for both consumer and small business segments, including total loan balances and write-off rates, should be considered alongside the company's overall financial health and economic outlook.

Key Highlights

1American Express is providing preliminary delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business card portfolios for April, May, and June 2020.
2The U.S. Consumer Card Member 30-day delinquency rate decreased to 1.5% as of June 30, 2020, down from 1.6% in May and 1.7% in April.
3The U.S. Consumer Card Member net write-off rate was 2.6% for the three months ended June 30, 2020, down from 3.0% in May and 2.7% in April.
4The U.S. Small Business Card Member 30-day delinquency rate remained stable at 1.6% across the reported months.
5The U.S. Small Business Card Member net write-off rate for the three months ended June 30, 2020, was 2.3%, an improvement from 2.5% in May and 2.0% in April.
6American Express implemented a Customer Pandemic Relief Program for COVID-19 impacted customers, which generally froze delinquency status. This program was closed to new enrollees in June 2020.
7The filing also includes credit performance data for the American Express Credit Account Master Trust, showing an annualized default rate, net of recoveries, of 1.8% as of June 1, 2020.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jul 15, 2020)

Summary

Key Highlights

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