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

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 of June, July, and August 2023.

How do the reported delinquency and write-off rates compare to previous periods?

The filing indicates generally stable credit performance. The 30-day delinquency rates for both consumer and small business portfolios remained consistent, hovering around 1.1%-1.2%. The net write-off rate for the U.S. Consumer portfolio saw a slight decrease to 1.7% in August, while the U.S. Small Business write-off rate remained steady at 1.7%-1.8%.

Are these statistics directly comparable to data in other American Express filings, such as the 10-D report?

The filing explicitly states that these statistics are additional to data reported in the 10-D by the American Express Credit Account Master Trust. Differences in loan characteristics, the inclusion of securitized versus non-securitized loans, and calculation methodologies (e.g., using end-of-period balances vs. average balances) mean that direct month-to-month comparisons might not be perfectly aligned.

What does the data suggest about the credit quality of American Express's loan portfolios?

The data suggests that American Express's U.S. Consumer and Small Business loan portfolios are exhibiting stable credit quality. The consistent delinquency rates and relatively low net write-off rates indicate that the company is effectively managing credit risk in its lending operations during the period presented.

AXP 8-K: Regulation FD — Sep 15, 2023

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 August 31, July 31, and June 30, 2023. The report also includes similar data for the American Express Credit Account Master Trust. Investors should note that these figures are furnished and are additional to data reported in other SEC filings, with potential differences in calculation methodologies and portfolio compositions, particularly concerning securitized versus non-securitized loans. Overall, the provided data indicates a stable credit performance across these key lending segments during the reported period. Delinquency rates remained consistent, and net write-off rates for both U.S. Consumer and U.S. Small Business portfolios stayed within a narrow range. This suggests that American Express is effectively managing credit risk in its lending operations despite the prevailing economic environment. Investors will find this information useful for assessing the company's asset quality and potential credit losses.

Key Highlights

1Furnishes updated U.S. Consumer and U.S. Small Business Card Member delinquency and write-off statistics for June, July, and August 2023.
2Total U.S. Consumer and Small Business Card Member loans grew from $99.4 billion in June to $102.2 billion in August 2023.
3U.S. Consumer 30-day past due loans as a percentage of total loans remained stable at 1.1% to 1.2% over the three months.
4U.S. Consumer net write-off rate (principal only) saw a slight decrease from 1.8% in June/July to 1.7% in August.
5U.S. Small Business 30-day past due loans as a percentage of total loans remained constant at 1.2% over the period.
6U.S. Small Business net write-off rate (principal only) was consistent at 1.7% to 1.8% across the reporting months.
7Provides credit performance data for the American Express Credit Account Master Trust, showing stable annualized default rates (net of recoveries) between 1.1% and 1.2%.

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

Summary

Key Highlights

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