8-KRegulation FD

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

Filed November 15, 2021For Securities:AXP

Summary

This 8-K filing from American Express (AXP) provides updated credit performance statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of and for the months ending October 31, September 30, and August 31, 2021. The report details loan balances, delinquency rates (30 days past due), and net write-off rates for both segments. Investors can use this data to monitor the company's credit risk and the health of its loan portfolios, which is crucial given the current economic environment. The filing also includes specific credit performance data for the American Express Credit Account Master Trust, which holds securitized loans. While the reported statistics for the total portfolios are intended to supplement the trust's filings, it's important to note that the characteristics and reporting methodologies for the total portfolios and the securitized trust may differ. Overall, the presented data indicates stable credit performance across both consumer and small business segments during the observed periods, with consistently low delinquency and write-off rates.

Key Highlights

  • 1Provides monthly credit performance data (delinquency and write-off rates) for U.S. Consumer and U.S. Small Business Card Member loan portfolios for August, September, and October 2021.
  • 2U.S. Consumer Card Member loans totaled $54.8 billion as of October 31, 2021, with a 30-day delinquency rate of 0.7% and a net write-off rate of 0.6% for October.
  • 3U.S. Small Business Card Member loans totaled $15.6 billion as of October 31, 2021, with a 30-day delinquency rate of 0.5% and a net write-off rate of 0.5% for October.
  • 4Total combined U.S. Card Member loans across consumer and small business segments reached $70.4 billion by October 31, 2021.
  • 5The filing includes separate credit performance statistics for the American Express Credit Account Master Trust, which holds securitized loans.
  • 6Annualized default rate for the securitized trust, net of recoveries, remained low, at 0.5% for October 2021.
  • 7The data suggests stable credit quality and contained credit losses in both the consumer and small business lending segments during the reported months.

Frequently Asked Questions

The main purpose of this 8-K filing is to provide investors with timely updates on the credit performance of American Express's U.S. Consumer and U.S. Small Business Card Member lending portfolios. It includes key metrics like loan balances, delinquency rates, and net write-off rates for the months of August, September, and October 2021, supplementing information typically found in other SEC filings.

The filing notes that the characteristics and reporting methodologies for the total U.S. Consumer and U.S. Small Business Card Member loan portfolios may differ from those of the American Express Credit Account Master Trust. The trust holds securitized loans, and its reporting might vary due to differences in loan mix, vintage, aging, and the calculation methods for write-off rates (e.g., using end-of-period principal balances for the trust versus average balances for the total portfolios).

Based on the data provided for the months ending August, September, and October 2021, the credit performance appears stable. The 30-day past due percentages for both consumer and small business portfolios remained consistently low, and net write-off rates were also within manageable levels, suggesting no immediate increase in credit risk during this period.

'Net write-off rate – principal only' refers to the rate at which loans are written off as uncollectible, considering only the principal amount of the loan. It excludes any interest or fees that may have been due but not collected. This provides a focused view on the core loan principal losses.