8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jul 15, 2021)

Filed July 15, 2021For Securities:AXP

Summary

This 8-K filing from American Express (AXP) provides an update on key credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of and for the periods ending April 30, May 31, and June 30, 2021. The report highlights preliminary data on delinquency and write-off rates, offering investors a near real-time look at the company's credit quality amidst evolving economic conditions. Overall, the presented data indicates stable to improving credit performance across both consumer and small business segments. The 30-day past due rates and net write-off rates show a downward trend or remain at low levels, suggesting robust credit management and resilient customer repayment behavior. This information is particularly relevant for investors evaluating the company's risk exposure and the health of its loan portfolio.

Key Highlights

  • 1U.S. Consumer Card Member loans saw a decrease in 30 days past due rate from 0.8% in April to 0.6% in June 2021.
  • 2The net write-off rate for U.S. Consumer Card Member loans improved significantly, falling from 1.1% in May and 1.0% in April to 0.7% in June 2021.
  • 3U.S. Small Business Card Member loans maintained a low 30-day past due rate, consistently at 0.4% or 0.5% across the reported months.
  • 4The net write-off rate for U.S. Small Business Card Member loans remained stable, at 0.6% or 0.7% for the period.
  • 5Total U.S. Consumer and U.S. Small Business Card Member loans showed a steady increase, growing from $62.1 billion in April to $66.2 billion by June 2021.
  • 6The American Express Credit Account Master Trust reported a stable annualized default rate, net of recoveries, at 0.6% for June 2021, down from 0.8% in the preceding two months.

Frequently Asked Questions

This filing provides statistics on 30-day past due loan percentages and net write-off rates (principal only) for both the U.S. Consumer and U.S. Small Business Card Member lending portfolios. It also includes data for the American Express Credit Account Master Trust, such as ending total principal balance, defaulted amount, and annualized default rate.

The U.S. Consumer segment shows positive trends. The percentage of loans 30 days past due decreased from April to June 2021 (0.8% to 0.6%), and the net write-off rate improved notably, decreasing from 1.1% in May to 0.7% in June 2021.

The U.S. Small Business segment demonstrates stable credit performance. The 30-day past due rates remained low and consistent (0.4%-0.5%), and the net write-off rates were also stable, hovering around 0.6%-0.7% throughout the reported months.

No, these statistics cover the U.S. Consumer Card Member lending portfolio and the U.S. Small Business Card Member lending portfolio. They include both securitized and non-securitized loans. The filing notes that the American Express Credit Account Master Trust, which is securitized, may have different characteristics and reported credit performance compared to the total portfolios.