Summary
This 8-K filing from American Express (AXP) provides investors with an update on the company's U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending August 31, September 30, and October 31, 2023. The report focuses on key credit performance metrics, including delinquency rates and net write-off rates. These figures are furnished to supplement information already reported in the company's securitization trust filings (Form 10-D). For investors, the primary takeaway is the continued stability and resilience in American Express's credit portfolio, even as loan balances have shown a modest upward trend. While there's a slight increase in the net write-off rate for U.S. Consumer loans in October, both delinquency and write-off rates remain at generally low levels, suggesting effective credit risk management. The data also highlights a distinction between the company's overall portfolio and the securitized portion, which is important for understanding the nuances of credit performance reporting.
Key Highlights
- 1American Express furnished updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business card portfolios for August, September, and October 2023.
- 2Total U.S. Card Member loans (Consumer and Small Business combined) increased from $102.2 billion in August to $104.6 billion in October 2023.
- 3U.S. Consumer 30-day past due loans remained stable at 1.3% for September and October, with a slight uptick from 1.2% in August.
- 4The net write-off rate for U.S. Consumer loans increased to 1.9% in October from 1.7% in September and August.
- 5U.S. Small Business 30-day past due loans showed a slight increase from 1.2% in August and September to 1.3% in October.
- 6The net write-off rate for U.S. Small Business loans was 2.0% in October, up from 1.7% in September and 1.8% in August.
- 7Data for the American Express Credit Account Master Trust (securitized portfolio) shows a consistent annualized default rate, net of recoveries, around 1.1-1.2%.