Summary
This 8-K filing by American Express (AXP) on December 15, 2023, provides updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios as of November 30, 2023, and for the months ended November 30, October 31, and September 30, 2023. Investors can use this information to monitor the credit quality of AXP's loan portfolios and assess potential credit risk. The filing also includes data on the American Express Credit Account Master Trust, offering a more granular view of securitized loan performance. Overall, the data suggests a relatively stable, albeit slightly increasing, trend in delinquencies and write-offs across both U.S. Consumer and U.S. Small Business portfolios in the period presented. Total loan balances in both segments saw a modest increase. While net write-off rates saw some fluctuation, they remained within a manageable range for the reported periods. The provided data on the securitized trust also indicates consistent annualized default rates.
Key Highlights
- 1U.S. Consumer loan balances increased from $77.7 billion (Sept 30) to $81.3 billion (Nov 30).
- 2U.S. Small Business loan balances increased from $25.2 billion (Sept 30) to $25.9 billion (Nov 30).
- 330-day past due rate for U.S. Consumer loans remained steady at 1.3% in Sept/Oct, rising slightly to 1.4% in November.
- 430-day past due rate for U.S. Small Business loans was stable at 1.2%-1.3% across the three months.
- 5Net write-off rate for U.S. Consumer loans fluctuated between 1.7% and 1.9%.
- 6Net write-off rate for U.S. Small Business loans increased from 1.7% in September to 2.0% in October and November.
- 7The American Express Credit Account Master Trust reported a consistent annualized default rate of 1.2% (net of recoveries) across the three months.