8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jan 18, 2022)

Filed January 18, 2022For Securities:AXP

Summary

This 8-K filing from American Express (AXP) provides preliminary delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the periods ending October 31, November 30, and December 31, 2021, as well as the three months ended December 31, 2021. The data indicates stable credit performance across both portfolios, with 30-day delinquency rates holding steady at 0.7% for consumers and 0.5% for small businesses. Net write-off rates also remained relatively consistent and low, suggesting robust credit management during this period. Furthermore, the report includes comparable data for the American Express Credit Account Master Trust, which comprises securitized loans. While the overall loan portfolios are growing, the credit metrics presented for both the total portfolios and the securitized trust remain at healthy levels. Investors should note that these are preliminary figures and the methodology for calculating write-off rates differs slightly between the total portfolios and the securitized trust, which can lead to month-to-month variations.

Key Highlights

  • 1Preliminary credit performance data for U.S. Consumer and U.S. Small Business Card Member lending portfolios as of October, November, and December 2021.
  • 2Total Card Member loans (U.S. Consumer and Small Business) grew from $70.4 billion in October to $76.9 billion by December 2021.
  • 3U.S. Consumer Card Member loans increased to $59.8 billion by December 2021, with 30 days past due loans remaining stable at 0.7%.
  • 4U.S. Small Business Card Member loans reached $17.0 billion by December 2021, with 30 days past due loans holding steady at 0.5%.
  • 5Net write-off rates for U.S. Consumer loans were 0.7% for December 2021, and for U.S. Small Business loans were 0.6% for December 2021, indicating stable credit quality.
  • 6The American Express Credit Account Master Trust (securitized loans) reported stable annualized default rates, net of recoveries, at 0.5% for October and November, and 0.6% for December 2021.
  • 7The filing clarifies differences in calculation methodologies between total loan portfolios and the securitized trust, which can impact month-to-month comparisons of write-off rates.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with preliminary, up-to-date statistics on the credit performance of American Express's U.S. Consumer and U.S. Small Business Card Member loan portfolios. This includes data on delinquencies and net write-off rates for the months ending October 31, November 30, and December 31, 2021.

No, the preliminary data presented indicates stable and healthy credit performance. The 30-day past due rates for both consumer and small business portfolios remained consistent, and net write-off rates were also within a stable range, suggesting that loan quality is being well-managed.

The 'Total Card Member loans' represent the company's entire U.S. Consumer and U.S. Small Business loan portfolios, which include both securitized and non-securitized loans. The 'American Express Credit Account Master Trust' data specifically pertains to the loans that have been securitized and sold into the trust. While related, they can have different characteristics and reporting metrics.

These statistics are considered preliminary because they are being furnished outside of the company's regular SEC reporting cycles (like the 10-Q or 10-K) to provide timely information. Final, audited credit performance figures are typically included in the company's quarterly and annual financial statements.