Summary
This 8-K filing from American Express (AXP) provides an update on credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of October 31, 2020, and for the preceding two months. The report highlights key figures such as total loans, 30-day delinquency rates, and net write-off rates. While offering a snapshot of the company's credit risk exposure during a period of economic uncertainty, investors should note that these figures represent only a portion of the company's overall loan portfolio, as securitized loans in the American Express Credit Account Master Trust have different characteristics.
Key Highlights
- 1Provides delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios for August, September, and October 2020.
- 2U.S. Consumer Card Member loans totaled $49.8 billion as of October 31, 2020, with a 30-day delinquency rate of 1.1% and a net write-off rate of 2.2%.
- 3U.S. Small Business Card Member loans totaled $11.9 billion as of October 31, 2020, with a 30-day delinquency rate of 1.0% and a net write-off rate of 2.1%.
- 4Total Card Member loans for both U.S. Consumer and U.S. Small Business segments combined were $61.6 billion as of October 31, 2020.
- 5The filing also includes credit performance information for the American Express Credit Account Master Trust, which represents securitized loans.
- 6Annualized default rates, net of recoveries, for the securitized trust were 1.6% for October 2020, 1.5% for September 2020, and 1.9% for August 2020.
- 7The company explicitly states that the securitized loan portfolio (Lending Trust) does not have identical characteristics to the total U.S. Consumer or U.S. Small Business portfolios.