Summary
This 8-K filing from American Express (AXP) provides updated delinquency and write-off statistics for its U.S. Consumer Card Member and U.S. Small Business Card Member lending portfolios as of July 31, 2022, and for the preceding two months. The data indicates stable credit performance across both segments, with 30-day past due rates remaining consistent. Net write-off rates also showed minimal fluctuation, suggesting resilience in American Express's loan portfolios during the reporting period. This information is supplementary to previously reported data and offers investors a more granular view of the company's credit risk management.
Key Highlights
- 1U.S. Consumer Card Member loans totaled $65.1 billion as of July 31, 2022.
- 230-day delinquency rate for U.S. Consumer Card Member loans remained stable at 0.7% for May, June, and July 2022.
- 3Net write-off rate for U.S. Consumer Card Member loans was 0.8% for June and July, and 0.9% for May.
- 4U.S. Small Business Card Member loans totaled $20.0 billion as of July 31, 2022.
- 530-day delinquency rate for U.S. Small Business Card Member loans remained stable at 0.6% for May, June, and July 2022.
- 6Net write-off rate for U.S. Small Business Card Member loans was 0.6% for June and July, and 0.7% for May.
- 7The filing also provides credit performance data for the American Express Credit Account Master Trust, showing stable annualized default rates and delinquency levels.
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 and U.S. Small Business Card Member lending portfolios for the months ending May 31, June 30, and July 31, 2022. This provides timely insights into the credit quality of the company's loan book.
Based on the provided statistics, credit risk appears to be stable. The 30-day past due rates for both U.S. Consumer and U.S. Small Business Card Member loans remained consistent across the three reported months. Similarly, net write-off rates showed only minor fluctuations, indicating no significant deterioration in loan performance during this period.
The filing notes that the Card Member loans securitized through the Lending Trust may not have identical characteristics to the total U.S. Consumer or U.S. Small Business Card Member loan portfolios (which include both securitized and non-securitized loans). Differences in loan mix, vintage, aging, and calculation methodologies (e.g., using end-of-period vs. average balances for write-off rates) can lead to variations between the reported credit performance of the Lending Trust and the overall company portfolios.
As of July 31, 2022, the total U.S. Consumer Card Member loans stood at $65.1 billion, and the U.S. Small Business Card Member loans totaled $20.0 billion. This brings the combined total for these segments to $85.2 billion.