01—Abstract
Summary
Summary of the 8-K filed March 15, 2024. Cited figures are marked; the original filing is the authoritative source.
American Express Company (AXP) filed an 8-K on March 14, 2024, to furnish updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the periods ending February 29, 2024, January 31, 2024, and December 31, 2023.
This filing provides investors with a look at the company's credit quality trends in its loan portfolios outside of the securitized trust. The data indicates relatively stable credit performance across both consumer and small business segments.
While total loan balances have seen a slight decrease from December 2023 to February 2024, the 30-day past due rates have remained consistent at 1.5%a for U.S. Consumer and 1.5% for U.S. Small Business. Net write-off rates for the principal only also show modest fluctuations, generally staying within recent historical ranges, suggesting no significant deterioration in credit risk for these portfolios.
02—Key points
Key Highlights
- Furnishes updated delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios.
- Data covers periods ending February 29, 2024, January 31, 2024, and December 31, 2023.
- U.S. Consumer total loans decreased from $83.2B (Dec 2023) to $80.4B (Feb 2024).
- U.S. Small Business total loans increased from $25.8B (Dec 2023) to $26.5B (Feb 2024).
- 30-day past due rates remained stable at 1.5% for both U.S. Consumer and U.S. Small Business portfolios in February 2024.
- Net write-off rates (principal only) for U.S. Consumer were 2.4% in Feb 2024, down from 2.5% in Dec 2023.
- Net write-off rates (principal only) for U.S. Small Business were 2.3% in Feb 2024, up slightly from 2.2% in Dec 2023.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to provide investors with updated statistics on delinquency rates and net write-off rates for American Express's U.S. Consumer and U.S. Small Business Card Member lending portfolios for the most recent fiscal months available. This is supplementary information to what is reported in the company's regular SEC filings.
How has the delinquency rate trended for American Express's card member loans?
The 30-day past due rates have remained stable and consistent across both the U.S. Consumer and U.S. Small Business portfolios. For both segments, the rate was 1.5% as of February 29, 2024, which is unchanged from January 31, 2024, and a slight increase from 1.4% in December 31, 2023.
What do the net write-off rates indicate about credit quality?
The net write-off rates, which exclude interest and fees, show relatively stable credit quality. The U.S. Consumer write-off rate was 2.4% in February 2024, down from 2.5% in December 2023. The U.S. Small Business write-off rate was 2.3% in February 2024, a slight uptick from 2.2% in December 2023 but still within a narrow range. These figures suggest that loan losses remain manageable for these portfolios.
How do the statistics for the Lending Trust differ from the overall portfolio?
The filing notes that the American Express Credit Account Master Trust (Lending Trust) has different characteristics than the total U.S. Consumer or U.S. Small Business Card Member loan portfolios. The reported credit performance of the Lending Trust may vary due to differences in loan mix, vintage, aging, and calculation methodologies, such as using end-of-period balances for write-offs in the trust versus average balances for the overall portfolios.
04—Continue