What are the key credit performance indicators presented in this filing?

The filing presents key credit performance indicators including '30 days past due loans as a % of total' and 'Net write-off rate – principal only' for both the U.S. Consumer and U.S. Small Business Card Member lending portfolios. It also provides data for the American Express Credit Account Master Trust, such as 'Annualized default rate, net of recoveries'.

Are the credit metrics showing signs of deterioration?

The presented preliminary credit metrics appear stable and relatively low. For instance, the 30-day delinquency rates are below 1% for both consumer and small business portfolios, and net write-off rates are at 0.4% as of September 2021. This suggests no immediate signs of significant credit deterioration.

How do these figures compare to previous months?

While the 30-day past due rates have remained consistent or slightly increased (from 0.6% to 0.7% for U.S. Consumer), the net write-off rate for U.S. Consumer loans has shown improvement, decreasing from 0.6% in August to 0.4% in September. The U.S. Small Business write-off rate remained stable at 0.4%.

What is the significance of the American Express Credit Account Master Trust data?

The data for the Credit Account Master Trust provides insights into the performance of securitized loans. The consistent annualized default rate of 0.4% for the last three months reported for the Trust aligns with the overall write-off rates for the combined U.S. Consumer and Small Business portfolios, reinforcing the overall credit health picture.

AXP 8-K: Regulation FD — Oct 15, 2021

Summary

This 8-K filing by American Express provides updated preliminary credit performance statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of September 30, 2021, and for the three months then ended. The report indicates stable and relatively low delinquency and write-off rates across both segments, suggesting continued credit quality within the portfolios. Investors can interpret these metrics as a positive sign for the company's risk management and overall loan portfolio health during a period of economic recovery.

Key Highlights

1U.S. Consumer Card Member loans showed a 30-day past due rate of 0.7% and a net write-off rate (principal only) of 0.4% for September 2021.
2U.S. Small Business Card Member loans exhibited a 30-day past due rate of 0.5% and a net write-off rate (principal only) of 0.4% for September 2021.
3Total U.S. Consumer and Small Business Card Member loans stood at $67.5 billion as of September 30, 2021.
4The net write-off rate for U.S. Consumer loans slightly decreased from 0.6% to 0.4% between August and September 2021.
5The filing includes preliminary delinquency and write-off statistics for the months of July, August, and September 2021, as well as the third quarter of 2021.
6Data for the American Express Credit Account Master Trust shows an annualized default rate, net of recoveries, of 0.4% for the month ended September 30, 2021.

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

Summary

Key Highlights

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