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 September 30, October 31, and November 30, 2020. The data offers a snapshot of credit performance during a period of economic uncertainty. Investors can use this information to assess the company's risk management and the health of its loan portfolios. Key trends observed include a slight decrease in 30-day delinquencies for both consumer and small business portfolios by November 2020, alongside fluctuating net write-off rates. The filing also clarifies that these reported statistics are separate from, and may differ from, those reported by the American Express Credit Account Master Trust (Lending Trust), which represents securitized loan assets.
Key Highlights
- 1U.S. Consumer Card Member loans portfolio size grew slightly, from $49.7 billion in September to $50.2 billion in November 2020.
- 2U.S. Small Business Card Member loans portfolio also saw growth, increasing from $11.6 billion in September to $12.2 billion in November 2020.
- 330-day delinquency rates for U.S. Consumer Card Member loans decreased from 1.1% in September/October to 1.0% in November 2020.
- 430-day delinquency rates for U.S. Small Business Card Member loans showed a downward trend, from 1.1% in September to 0.8% in November 2020.
- 5Net write-off rates for U.S. Consumer Card Member loans decreased from 2.2% in October to 1.9% in November 2020.
- 6Net write-off rates for U.S. Small Business Card Member loans increased from 1.8% in September to 2.3% in November 2020.
- 7The filing explicitly states that the provided portfolio statistics may differ from the American Express Credit Account Master Trust's (Lending Trust) reported data due to variations in loan characteristics and calculation methodologies.