8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Feb 15, 2023)

Filed February 15, 2023For 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 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%.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with updated statistical information regarding the delinquency and net write-off rates for American Express's 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.

No, the filing specifies that these statistics pertain to the U.S. Consumer and U.S. Small Business Card Member lending portfolios. It also clarifies that these figures include both securitized and non-securitized loans, and may differ from the credit performance reported by the American Express Credit Account Master Trust (which only covers securitized loans) due to various factors.

The data shows relatively stable credit performance. While 30-day past due rates are holding steady at 1.0% for both segments, the net write-off rates saw a slight increase in January 2023 to 1.5% for U.S. Consumer and 1.2% for U.S. Small Business. These increases are modest and indicate a controlled level of credit risk for these portfolios.

The filing explicitly states that the performance of the total portfolios may differ from the securitized loans in the Lending Trust. For example, as of January 31, 2023, the total U.S. Consumer and Small Business portfolios were $93.2 billion, while the Lending Trust had an ending principal balance of $26.1 billion. The Lending Trust's annualized net default rate was 0.9%, which is lower than the net write-off rates reported for the overall portfolios.