8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Oct 17, 2022)

Filed October 17, 2022For Securities:AXP

Summary

This 8-K filing from American Express (AXP) provides updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business card member lending portfolios as of and for the months ending July, August, and September 2022. The data is presented as preliminary for the three months ended September 30, 2022. Investors can use this information to monitor the credit quality of AXP's loan portfolios. The report indicates relatively stable credit performance across both consumer and small business segments. Delinquency rates remained low, with 30-day past due percentages hovering around 0.9% for U.S. Consumer and 0.7% for U.S. Small Business loans. Net write-off rates for principal only were also stable, at 0.8% for consumer and 0.7% for small business loans. The company also provided data for its American Express Credit Account Master Trust, showing consistent annualized default rates and low levels of 30+ day delinquencies.

Key Highlights

  • 1Preliminary credit performance data for U.S. Consumer and U.S. Small Business card member lending portfolios provided for July, August, and September 2022.
  • 2U.S. Consumer 30-day past due loans remained low, at 0.9% of total loans as of September 30, 2022.
  • 3U.S. Small Business 30-day past due loans were also stable at 0.7% of total loans as of September 30, 2022.
  • 4Net write-off rates (principal only) for U.S. Consumer loans were consistently 0.8% for the period.
  • 5Net write-off rates (principal only) for U.S. Small Business loans were consistent at 0.7% for the period.
  • 6American Express Credit Account Master Trust reported stable annualized default rates, ranging from 0.5% to 0.6%, and low 30+ day delinquencies.

Frequently Asked Questions

The key takeaway is that American Express's U.S. Consumer and U.S. Small Business lending portfolios demonstrated stable and low delinquency and write-off rates for the periods presented (July-September 2022). This suggests resilient credit quality in the face of potential economic headwinds.

The filing presents data for July, August, and September 2022, showing a slight increase in 30-day delinquencies for U.S. Consumer loans from 0.7% in July to 0.9% in September, and for U.S. Small Business loans from 0.6% to 0.7%. However, these rates remain at very low levels, indicating consistent credit performance.

The data for the Master Trust provides a look at a securitized portion of American Express's loan portfolio. The consistent and low annualized default rates and delinquency figures for the Trust reinforce the overall stable credit performance observed in the broader U.S. Consumer and Small Business portfolios.

The statistics for the months ending September 30, August 31, and July 31, 2022, are presented as preliminary, particularly the data for the three months ended September 30, 2022. This means that these figures could be subject to minor adjustments in future reporting.