Summary
This 8-K filing from American Express Co. (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 February 28, March 31, and April 30, 2023. The data offers investors a near real-time look at credit performance beyond what is typically reported in standard financial statements, particularly concerning the health of the company's loan book. Overall, the reported metrics show a stable credit environment for American Express during the first four months of 2023. Delinquency rates remained consistent, and while write-off rates saw some fluctuation, they stayed within reasonable historical bounds. The filing also includes separate data for the American Express Credit Account Master Trust, highlighting that while securitized assets have slightly different performance characteristics, the broader trends in credit quality appear to be holding steady.
Key Highlights
- 1Delinquency rates for both U.S. Consumer and U.S. Small Business Card Member loans remained stable at 1.1% for all three reporting periods (February, March, April 2023).
- 2Net write-off rates for U.S. Consumer loans fluctuated between 1.4% and 1.7% during the period.
- 3Net write-off rates for U.S. Small Business loans increased from 1.1% in February to 1.4% in March and April 2023.
- 4Total loans in the U.S. Consumer and U.S. Small Business portfolios show a consistent upward trend, growing from $92.7 billion in February to $97.3 billion in April 2023.
- 5Data for the American Express Credit Account Master Trust shows an annualized default rate, net of recoveries, that remained stable at 1.0% or 1.1% during the reported months.
- 6The filing clarifies that the securitized loans within the Lending Trust may not have identical characteristics to the total loan portfolios, explaining potential differences in reported metrics.