What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to provide supplementary credit performance statistics for American Express's U.S. Consumer and U.S. Small Business card member lending portfolios for the months ending March 31, April 30, and May 31, 2023. This information is furnished under Regulation FD and offers additional insights beyond the data reported in the Lending Trust's monthly 10-D filings.

Are there any signs of significant credit deterioration in the reported portfolios?

The reported data does not indicate significant credit deterioration. Delinquency rates have remained stable at 1.1% for both segments. While the U.S. Small Business write-off rate saw a slight uptick in May, it remains within a historical range and does not suggest a systemic issue based on this limited update.

How do the reported write-off rates compare between the Consumer and Small Business portfolios?

For the three months ending May 31, 2023, the U.S. Consumer net write-off rates (principal only) ranged from 1.5% to 1.7%, showing relative stability. The U.S. Small Business segment had rates of 1.4% in March and April, rising to 1.7% in May. In May, both segments reported the same 1.7% net write-off rate.

What is the difference between the data in this 8-K and the Lending Trust's 10-D reports?

The 8-K provides credit performance statistics for the entire U.S. Consumer and U.S. Small Business card member loan portfolios, including both securitized and non-securitized loans. The Lending Trust's 10-D reports focus specifically on the securitized assets held within the American Express Credit Account Master Trust, which may have different characteristics and calculation methodologies compared to the total portfolio data presented here.

AXP 8-K: Regulation FD — Jun 15, 2023

Summary

American Express Company (AXP) filed an 8-K on June 15, 2023, providing an update on its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending May 31, April 30, and March 31, 2023. The filing is primarily a Regulation FD disclosure, offering supplementary credit performance statistics beyond what is typically reported in the Lending Trust's 10-D filings. Investors can monitor these metrics for insights into the company's credit risk and loan portfolio health. The data reveals stable delinquency rates across both consumer and small business portfolios, holding at 1.1% for 30 days past due loans. Net write-off rates for U.S. Consumer loans remained relatively consistent, fluctuating between 1.5% and 1.7%. U.S. Small Business write-off rates saw a slight increase in May to 1.7%, up from 1.4% in the prior two months. The total outstanding loan balances for both segments show a steady increase, indicating portfolio growth. The filing also provides details on the American Express Credit Account Master Trust, showing a consistent annualized default rate and a stable 30+ days delinquent amount.

Key Highlights

1Stable 30-day delinquency rates at 1.1% for both U.S. Consumer and U.S. Small Business card member loan portfolios throughout the reported periods.
2U.S. Consumer net write-off rate remained relatively consistent, ranging from 1.5% to 1.7% for principal only.
3U.S. Small Business net write-off rate increased slightly to 1.7% in May 2023, up from 1.4% in March and April 2023.
4Total U.S. Consumer card member loans increased from $71.9 billion in March to $75.5 billion in May 2023.
5Total U.S. Small Business card member loans grew from $23.0 billion in March to $23.7 billion in May 2023.
6The American Express Credit Account Master Trust reported a consistent annualized default rate, net of recoveries, of 1.0% or 1.1% across the three reported months.
7The filing provides additional credit performance data not identical to the Lending Trust's 10-D reports, offering a broader view of the company's loan portfolios.

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

Summary

Key Highlights

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