What are the key credit performance indicators reported in this filing?

The filing reports key credit performance indicators such as total loans, 30-day past due loan percentages, average loan balances, and net write-off rates (principal only) for both the U.S. Consumer and U.S. Small Business Card Member lending portfolios. It also provides data on defaulted amounts and annualized default rates for the American Express Credit Account Master Trust.

Are the credit metrics showing significant deterioration?

The reported metrics indicate a slight uptick in net write-off rates and 30-day delinquencies in some segments for the three months ended June 30, 2023, compared to earlier months in the period. However, the overall levels, particularly the 30-day past due rates, appear stable or are showing only modest increases, suggesting that the credit quality is currently being managed within expected parameters, though close monitoring is warranted.

What is the difference between the reported U.S. Consumer/Small Business portfolio data and the Lending Trust data?

The U.S. Consumer and U.S. Small Business Card Member loan portfolios include both securitized and non-securitized loans. The American Express Credit Account Master Trust data pertains specifically to securitized loans. The filing notes that these two datasets may not have identical characteristics or calculation methodologies (e.g., use of average vs. end-of-period balances for write-offs), which can lead to month-to-month variations in reported credit performance.

Does this filing provide updated financial results for American Express?

No, this 8-K filing is primarily a Regulation FD disclosure providing specific credit performance statistics. It does not contain comprehensive financial statements or guidance on overall financial results. Investors looking for detailed financial performance should refer to the company's quarterly earnings reports (10-Q) or annual reports (10-K).

AXP 8-K: Regulation FD — Jul 17, 2023

Summary

This 8-K filing by American Express (AXP) provides an update on credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios, along with data for the American Express Credit Account Master Trust. The report covers preliminary statistics for the months of April, May, and June 2023, and the three months ended June 30, 2023. Investors can use this information to gauge the company's credit risk and the health of its loan portfolios. The data indicates stable to slightly increasing delinquency and net write-off rates across both consumer and small business segments. While the overall loan balances have grown, the key credit metrics remain at levels that management likely views as manageable. The inclusion of data for the securitized Lending Trust provides a more comprehensive view, though it's important to note the differences in calculation methodologies compared to the total loan portfolios.

Key Highlights

1U.S. Consumer loan portfolio grew to $75.6 billion by June 30, 2023.
2U.S. Small Business loan portfolio stood at $23.8 billion by June 30, 2023.
330-day past due rates for U.S. Consumer loans remained steady at 1.1% for the three months ended June 30, 2023.
430-day past due rates for U.S. Small Business loans saw a slight increase to 1.2% for the three months ended June 30, 2023.
5Net write-off rate (principal only) for U.S. Consumer loans increased to 1.7% for the three months ended June 30, 2023, from 1.5% in April 2023.
6Net write-off rate (principal only) for U.S. Small Business loans also increased to 1.6% for the three months ended June 30, 2023, from 1.4% in April 2023.
7The American Express Credit Account Master Trust reported stable annualized default rates, net of recoveries, around 1.0% to 1.1% during the period.

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

Summary

Key Highlights

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