Summary
This 8-K filing from American Express Company (AXP) provides updated preliminary credit performance statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending January 31, February 28, and March 31, 2021, as well as the three months ended March 31, 2021. The report details delinquency rates and net write-off rates, offering investors a near real-time view of credit quality trends. These figures are supplementary to data reported in the company's securitization trust filings (Form 10-D). Key takeaways indicate a generally stable to improving credit environment for AmEx's U.S. card portfolios during the first quarter of 2021. The 30-day past due percentages remained low, and net write-off rates showed a downward trend, particularly in the U.S. Small Business segment. This suggests effective credit risk management and a resilient customer base, which are positive signals for investors concerned about potential loan losses.
Key Highlights
- 1U.S. Consumer Card Member 30-day delinquency rate remained stable at 0.9%-1.0% through Q1 2021.
- 2U.S. Small Business Card Member 30-day delinquency rate was low, at 0.6%-0.7% through Q1 2021.
- 3Net write-off rate for U.S. Consumer loans decreased from 1.4% in February to 1.1% in March 2021, with a Q1 average of 1.3%.
- 4Net write-off rate for U.S. Small Business loans showed a significant improvement, declining from 1.4% in January to 0.7% in March 2021, with a Q1 average of 1.0%.
- 5Total Card Member loans for U.S. Consumer and Small Business combined remained consistent, around $61.6 billion.
- 6The filing also provides credit performance data for the American Express Credit Account Master Trust, showing a stable annualized default rate (net of recoveries) of 0.9%-1.2%.