8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Feb 15, 2022)

Filed February 15, 2022For Securities:AXP

Summary

This 8-K filing by American Express Company (AXP) provides updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of January 31, 2022, and for the months ended January 31, December 31, and November 30, 2021. Investors should note that these figures pertain to specific operating segments and are supplementary to data reported by the American Express Credit Account Master Trust (Lending Trust). The disclosed metrics indicate stable credit performance across both consumer and small business portfolios. The 30-day past due rates remained consistent at 0.7% for U.S. Consumer and 0.5% for U.S. Small Business over the reported periods. Net write-off rates also showed relative stability, with the U.S. Consumer portfolio at 0.7% for January 2022 and December 2021, and 0.5% for November 2021. The U.S. Small Business portfolio exhibited a net write-off rate of 0.5% or 0.6% across the periods. These figures suggest a healthy credit environment for AmEx's core lending businesses as of early 2022.

Key Highlights

  • 1Delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios are provided for three recent months ending January 31, 2022.
  • 2U.S. Consumer Card Member 30-day past due rate remained stable at 0.7% for November 2021, December 2021, and January 2022.
  • 3U.S. Small Business Card Member 30-day past due rate remained stable at 0.5% for all three reported months.
  • 4Net write-off rate for U.S. Consumer Card Member loans was 0.5% in November 2021, increasing to 0.7% in December 2021 and holding at 0.7% in January 2022.
  • 5Net write-off rate for U.S. Small Business Card Member loans was 0.5% in November 2021, rose to 0.6% in December 2021, and was 0.5% in January 2022.
  • 6Total Card Member loans (U.S. Consumer and Small Business combined) decreased slightly from $76.9 billion in December 2021 to $73.2 billion in January 2022.
  • 7Information provided is supplementary to the data reported in the American Express Credit Account Master Trust's Form 10-D filings and may differ due to variations in loan characteristics and calculation methodologies.

Frequently Asked Questions

The main purpose of this 8-K filing is to furnish investors with updated delinquency and write-off statistics for American Express's U.S. Consumer Card Member and U.S. Small Business Card Member lending portfolios for the months ending November 30, 2021, December 31, 2021, and January 31, 2022. This information provides a more current view of the company's credit quality.

No, these statistics are additional to the data reported by the American Express Credit Account Master Trust (Lending Trust). The filing explicitly states that the Card Member loans securitized through the Lending Trust may not have identical characteristics to the total portfolios, and different calculation methods are used, which can lead to variations in reported credit performance.

The delinquency rates presented are stable across the reported periods. The 30-day past due rate for U.S. Consumer loans remained at 0.7%, and for U.S. Small Business loans, it stayed at 0.5%. Stable or declining delinquency rates are generally a positive sign, suggesting that borrowers are managing their obligations effectively and that the credit risk within these portfolios is under control as of early 2022.

The net write-off rates have shown relative stability with minor fluctuations. For the U.S. Consumer portfolio, the rate was 0.5% in November 2021, rose to 0.7% in December and January. For the U.S. Small Business portfolio, the rate was 0.5% in November, 0.6% in December, and back to 0.5% in January. These rates are within historical norms and indicate consistent management of credit losses.