8-KRegulation FD

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

Filed August 15, 2023For Securities:AXP

Summary

This 8-K filing by American Express Co. (AXP) provides updated credit performance statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios, as well as for the American Express Credit Account Master Trust. The information is furnished as of and for the months ended July 31, June 30, and May 31, 2023, offering investors a near real-time look at key credit metrics. Overall, the data indicates stable credit quality across both the U.S. Consumer and U.S. Small Business portfolios for the period. Delinquency rates remained consistent, and net write-off rates showed only minor fluctuations, suggesting that current economic conditions are not significantly impacting the company's loan book. The furnished data supplements information typically reported in the company's 10-D filings, providing a more consolidated view of credit trends for investors monitoring American Express's financial health.

Key Highlights

  • 1U.S. Consumer Card Member loans totaled $77.3 billion as of July 31, 2023.
  • 2U.S. Small Business Card Member loans totaled $24.2 billion as of July 31, 2023.
  • 3The 30-day past due rate for U.S. Consumer loans remained stable at 1.1% for all three reported months.
  • 4The 30-day past due rate for U.S. Small Business loans was stable at 1.2% for June and July, and 1.1% for May.
  • 5Net write-off rate for U.S. Consumer loans was 1.8% for July and June, and 1.6% for May.
  • 6Net write-off rate for U.S. Small Business loans was 1.8% for July, and 1.7% for June and May.
  • 7The American Express Credit Account Master Trust reported an annualized default rate, net of recoveries, of 1.2% for July 2023, up slightly from 1.1% in June and 1.0% in May.

Frequently Asked Questions

The primary purpose of this 8-K filing is to furnish investors with updated delinquency and write-off statistics for American Express's U.S. Consumer and U.S. Small Business Card Member lending portfolios, as well as for the American Express Credit Account Master Trust, for the months ending July 31, June 30, and May 31, 2023. This provides more frequent insight into credit quality trends.

The reported credit metrics for both the U.S. Consumer and U.S. Small Business portfolios appear stable. The 30-day delinquency rates have remained consistent, and net write-off rates have shown minimal fluctuation across the three reported months, indicating steady credit performance in these segments.

The data in this 8-K filing provides statistics for the entire U.S. Consumer and U.S. Small Business Card Member loan portfolios (both securitized and non-securitized). The 10-D filings report on the American Express Credit Account Master Trust, which contains only securitized loans. Differences in loan characteristics, vintage, aging, and calculation methodologies can lead to variations in reported credit performance between the two sources.

Based on the data furnished in this report, there are no immediate signs of significant credit deterioration. The delinquency and write-off rates have remained relatively stable, which suggests that borrowers are generally managing their obligations. However, investors should continue to monitor these trends in future filings.