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 for the months ending January 31, 2023, December 31, 2022, and November 30, 2022. Investors should note that these figures represent the total portfolios, which include both securitized and non-securitized loans, and may differ from the credit performance reported by the American Express Credit Account Master Trust (Lending Trust) due to various factors, including loan mix and calculation methodologies. The reported data shows relatively stable credit performance across the observed periods. The 30-day delinquency rates for both U.S. Consumer and U.S. Small Business portfolios remained at or slightly increased to 1.0% by the end of January 2023. Net write-off rates, while showing a slight uptick in January 2023 compared to prior months, remain at manageable levels for the Consumer segment (1.5%) and also show a modest increase for the Small Business segment (1.2%). These metrics suggest a consistent, albeit slightly increasing, trend in credit risk within the company's core lending portfolios.
Key Highlights
- 1Provides updated delinquency and write-off rates for U.S. Consumer and U.S. Small Business lending portfolios as of January 31, 2023, and prior months.
- 2U.S. Consumer Card Member loans had total loans of $71.3 billion as of January 31, 2023.
- 3U.S. Small Business Card Member loans had total loans of $21.9 billion as of January 31, 2023.
- 430-day past due rates remained stable at 1.0% for both U.S. Consumer and U.S. Small Business portfolios in January 2023.
- 5Net write-off rates (principal only) increased slightly in January 2023 to 1.5% for U.S. Consumer and 1.2% for U.S. Small Business portfolios.
- 6Credit performance of the total portfolios may differ from the securitized loans reported by the American Express Credit Account Master Trust.
- 7American Express Credit Account Master Trust reported an ending total principal balance of $26.1 billion as of January 31, 2023, with a net annualized default rate of 0.9%.