Summary
This 8-K filing from American Express (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 data covers the periods ending January 31, 2024, December 31, 2023, and November 30, 2023. Investors should focus on the delinquency and write-off rates, as these are key indicators of loan portfolio health and potential future credit losses. The report indicates that while total loan balances fluctuated slightly, the 30-day delinquency rates for both consumer and small business portfolios remained stable and relatively low at 1.4%-1.5%. The net write-off rate for the U.S. Consumer portfolio saw an increase in December 2023 to 2.5% before decreasing in January 2024 to 2.1%, with the Small Business portfolio showing a more stable write-off rate around 2.0%-2.2%. The data for the securitized Lending Trust shows low annualized default rates, generally below 1.5%.
Key Highlights
- 1U.S. Consumer and U.S. Small Business 30-day past due loan rates remained stable, hovering around 1.4%-1.5% across the reported months.
- 2The net write-off rate for the U.S. Consumer portfolio increased to 2.5% in December 2023, potentially due to timing of debt settlements, but decreased to 2.1% by January 2024.
- 3The net write-off rate for U.S. Small Business loans was relatively consistent, ranging from 2.0% to 2.2%.
- 4Total U.S. Consumer and Small Business card member loans stood at $107.3 billion as of January 31, 2024.
- 5The American Express Credit Account Master Trust reported low annualized default rates, net of recoveries, at 1.3% for January 2024, up from 1.2% in November 2023.
- 6The filing clarifies that the Lending Trust's loan pool characteristics may differ from the total portfolio, potentially leading to variations in reported credit performance metrics.