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 February 28, 2021, and for the months ended February 28, January 31, 2021, and December 31, 2020. The data indicates stable credit performance across both segments, with 30-day delinquency rates holding steady at 1.0% for U.S. Consumer and 0.6%-0.7% for U.S. Small Business portfolios. Net write-off rates also remained within recent historical ranges, showing slight decreases or stability in February. This information is furnished in addition to data reported in the Credit Account Master Trust's Form 10-D filings.
Key Highlights
- 1U.S. Consumer Card Member loans showed a total loan balance of $47.5 billion as of February 28, 2021, with a 30-day delinquency rate of 1.0%.
- 2The net write-off rate for U.S. Consumer loans was 1.4% for February 2021, down from 1.6% in December 2020.
- 3U.S. Small Business Card Member loans totaled $12.8 billion as of February 28, 2021, with a 30-day delinquency rate of 0.6%.
- 4The net write-off rate for U.S. Small Business loans improved to 1.0% in February 2021, down from 1.5% in December 2020.
- 5Overall Card Member loans for U.S. Consumer and Small Business combined stood at $60.4 billion at the end of February 2021.
- 6The American Express Credit Account Master Trust reported an ending principal balance of $22.6 billion as of February 1, 2021.
- 7The Lending Trust's annualized default rate, net of recoveries, was 1.2% for February 2021, consistent with prior months.
Frequently Asked Questions
Based on the data provided, the credit health of American Express's U.S. Consumer and Small Business card portfolios appears stable. Delinquency rates have remained consistent, and net write-off rates have either decreased or remained stable in early 2021 compared to late 2020, suggesting manageable credit risk.
The U.S. Consumer portfolio consistently shows a higher 30-day delinquency rate (1.0%) compared to the U.S. Small Business portfolio (0.6%-0.7%) across the reported periods. However, both remain at relatively low levels.
The Credit Account Master Trust data provides insights into the performance of securitized loans. While it's reported separately and may have different characteristics (mix, vintage, calculation methods) than the total portfolio, it generally shows consistent default and delinquency trends, reinforcing the overall stable credit performance observed in the broader portfolios.
The total loan balances for both U.S. Consumer and U.S. Small Business portfolios have shown a slight decreasing trend from December 2020 to February 2021. For instance, U.S. Consumer loans decreased from $51.3 billion to $47.5 billion, and U.S. Small Business loans remained relatively stable around $12.8-$12.9 billion.