8-KRegulation FD

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

Filed July 15, 2022For Securities:AXP

Summary

American Express Company (AXP) filed an 8-K on July 15, 2022, to provide updated statistics on its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending April 30, May 31, and June 30, 2022, as well as the second quarter of 2022. The filing presents preliminary data on loan balances, delinquency rates, and net write-off rates. This information is furnished to provide additional context beyond the data reported in the American Express Credit Account Master Trust's Form 10-D filings, noting that the securitized loans may have different characteristics than the total loan portfolios. Key takeaways from the furnished data indicate stable credit performance. For the U.S. Consumer Card Member loans, total loans increased to $63.7 billion by June 30, 2022, with 30-day past due rates holding steady at 0.7% and net write-off rates showing a slight decrease to 0.8% for the three months ended June 30, 2022. Similarly, U.S. Small Business Card Member loans saw total loans reach $19.4 billion, with 30-day past due rates remaining low at 0.6% and net write-off rates consistent at 0.6% for the quarter. The overall credit metrics appear robust, suggesting a healthy underlying borrower base.

Key Highlights

  • 1Furnished preliminary delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios for April, May, and June 2022.
  • 2U.S. Consumer Card Member loans grew to $63.7 billion by June 30, 2022.
  • 330-day past due rate for U.S. Consumer Card Member loans remained stable at 0.7% across the reported months.
  • 4Net write-off rate for U.S. Consumer Card Member loans for the three months ended June 30, 2022, was 0.8%.
  • 5U.S. Small Business Card Member loans reached $19.4 billion by June 30, 2022.
  • 630-day past due rate for U.S. Small Business Card Member loans remained consistently at 0.6%.
  • 7Net write-off rate for U.S. Small Business Card Member loans for the three months ended June 30, 2022, was 0.6%.

Frequently Asked Questions

The main purpose of this 8-K filing is to provide investors with additional, preliminary data on the credit performance of American Express's U.S. Consumer and U.S. Small Business Card Member loan portfolios, specifically regarding delinquency and write-off rates for the months of April, May, and June 2022, and the second quarter of 2022. This information supplements the data reported in the company's regular SEC filings.

No, the statistics presented in this 8-K are for the U.S. Consumer Card Member lending portfolio and the U.S. Small Business Card Member lending portfolio. The filing clarifies that these portfolios include both securitized and non-securitized loans, and their characteristics may differ from the loans held within the American Express Credit Account Master Trust, which are reported in separate 10-D filings.

The preliminary data indicates stable and healthy credit quality. For both consumer and small business portfolios, the 30-day past due rates remained low and consistent, and the net write-off rates were also stable and at relatively low levels (0.8% for consumer and 0.6% for small business over the quarter). This suggests that borrowers are generally meeting their payment obligations.

The filing notes that the statistics provided in the 8-K are additional to the data reported in the Lending Trust's 10-D reports. Differences can arise due to variations in loan mix, vintage, aging, and the calculation methodologies (e.g., using average loan balances for the 8-K versus end-of-period balances for write-off rates in the 10-D). The 8-K data aims to give a broader view of the total portfolios.