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 as of August 31, 2020, and for the months preceding it. The report highlights the impact of the Company's Customer Pandemic Relief Program, which temporarily freezes delinquency status for impacted customers. While loan balances remained relatively stable, there was a noticeable downward trend in 30-day past due percentages and net write-off rates for both consumer and small business portfolios across the reported periods. Specifically, the U.S. Consumer Card Member portfolio saw its 30-day past due rate decrease from 1.5% in June to 1.2% in August, and the net write-off rate remain consistently low at 2.5%-2.6%. The U.S. Small Business portfolio mirrored this trend with a 30-day past due rate declining from 1.6% to 1.2% and a net write-off rate holding steady between 2.4%-2.5%. Additionally, the filing provides performance data for the American Express Credit Account Master Trust, showing stable annualized default rates and a slight decrease in the total 30+ days delinquent amount.
Key Highlights
- 1Disclosure of U.S. Consumer and U.S. Small Business Card Member lending portfolio delinquency and write-off statistics for June, July, and August 2020.
- 2U.S. Consumer 30-day past due rate declined from 1.5% (June 30) to 1.2% (August 31).
- 3U.S. Small Business 30-day past due rate decreased from 1.6% (June 30) to 1.2% (August 31).
- 4Net write-off rate for U.S. Consumer loans remained stable between 2.5% and 2.6% for the period.
- 5Net write-off rate for U.S. Small Business loans remained stable between 2.4% and 2.5% for the period.
- 6The Company's Customer Pandemic Relief Program impacted delinquency calculations; this program closed for new enrollees in June 2020.
- 7American Express Credit Account Master Trust reported stable annualized default rates (1.8%-1.9%) and a slight decrease in 30+ days delinquent amounts.