What is the overall credit quality trend indicated by these statistics?

The statistics suggest a stable and robust credit quality for American Express's U.S. Consumer and U.S. Small Business portfolios through the end of 2022. Delinquency rates remained low and relatively consistent, and while net write-off rates saw a slight uptick, they were within manageable historical levels.

Are the statistics for the U.S. Card Member loan portfolios the same as for the securitized loans in the Lending Trust?

No, the filing explicitly states that the statistics for the U.S. Consumer and U.S. Small Business Card Member loan portfolios (which include both securitized and non-securitized loans) may not have identical characteristics to those reported for the American Express Credit Account Master Trust. Differences in loan mix, vintage, aging, and calculation methodologies (e.g., average vs. end-of-period balances for write-offs) account for potential variations in reported credit performance between the two sets of data.

What are the key metrics reported in this filing?

The key metrics reported include total loan balances, the percentage of loans 30 days past due, average loan balances, and net write-off rates (on a principal-only basis) for both the U.S. Consumer and U.S. Small Business segments. For the securitized trust, the filing reports ending total principal balance, defaulted amounts, and annualized default rates net of recoveries.

Should investors be concerned about the slight increase in net write-off rates?

While net write-off rates increased slightly in Q4 2022 compared to the preceding months, they remained at relatively low percentages (1.2% for Consumer, 0.9% for Small Business). Given the overall economic environment and the company's historical performance, these figures appear to be within expected ranges and do not signal an immediate concern, though continued monitoring is advisable.

AXP 8-K: Regulation FD — Jan 17, 2023

Summary

American Express Company (AXP) has filed an 8-K report providing preliminary 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 ended December 31, 2022, and the three months ended December 31, 2022. The report indicates that credit quality remained stable and robust through the end of 2022, with 30-day past due rates holding at 1.0% for U.S. Consumer and 0.9% for U.S. Small Business portfolios in December 2022. Net write-off rates also showed a modest increase but remained at manageable levels, at 1.2% for U.S. Consumer and 0.9% for U.S. Small Business portfolios for the three months ended December 31, 2022. Additionally, the filing includes performance data for the American Express Credit Account Master Trust, which represents securitized loans. These statistics, while not directly comparable due to different calculation methodologies and loan pools, also suggest stable credit performance. The annualized default rate for the trust, net of recoveries, was 0.7% for December 2022, indicating continued strength in asset quality for the company's loan portfolios.

Key Highlights

1Preliminary delinquency and write-off statistics for U.S. Consumer and U.S. Small Business portfolios provided for October, November, and December 2022.
2U.S. Consumer 30-day past due rate was 1.0% as of December 31, 2022.
3U.S. Small Business 30-day past due rate was 0.9% as of December 31, 2022.
4Net write-off rate (principal only) for U.S. Consumer for Q4 2022 was 1.2%.
5Net write-off rate (principal only) for U.S. Small Business for Q4 2022 was 0.9%.
6Total U.S. Card Member loans (Consumer and Small Business) reached $94.1 billion as of December 31, 2022.
7American Express Credit Account Master Trust shows stable credit performance with an annualized default rate of 0.7% for December 2022.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jan 17, 2023)

Summary

Key Highlights

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