Summary
This 8-K filing from American Express Co. (AXP) provides updated credit performance statistics for its U.S. Consumer and U.S. Small Business card member lending portfolios as of and for the months ended November 30, October 31, and September 30, 2022. Investors should note that the reported delinquency and write-off rates remain stable and at low levels across both consumer and small business segments. The total loans outstanding in these portfolios have shown a consistent increase over the three-month period, indicating growth in the underlying loan book. The filing also includes data for the American Express Credit Account Master Trust, which holds securitized loans. While this data is presented separately and may have different characteristics than the overall portfolio, it generally mirrors the stable credit performance observed in the broader lending segments. Overall, the presented data suggests continued credit quality strength for American Express within its U.S. card member lending operations as of late 2022.
Key Highlights
- 1U.S. Consumer and U.S. Small Business loan portfolios show stable delinquency rates (30+ days past due) at or below 0.9% across all reported months.
- 2Net write-off rates for U.S. Consumer loans increased slightly from 0.8% in September to 1.0% in November, while U.S. Small Business write-off rates also saw a modest rise from 0.7% to 0.9% over the same period.
- 3Total U.S. Consumer Card Member loans increased from $66.3 billion in September to $70.4 billion in November.
- 4Total U.S. Small Business Card Member loans increased from $20.7 billion in September to $21.4 billion in November.
- 5Total combined U.S. Consumer and Small Business Card Member loans grew from $87.0 billion to $91.8 billion over the three months.
- 6The American Express Credit Account Master Trust reports a stable and low annualized default rate, net of recoveries, ranging from 0.6% to 0.8%.
- 7Delinquency and write-off statistics are furnished in addition to data reported in the monthly Form 10-D, with specific note on potential differences in loan characteristics and calculation methodologies between the overall portfolio and securitized trust data.