8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (May 15, 2024)

Filed May 15, 2024For Securities:AXP

Summary

This 8-K filing by American Express (AXP) provides an update on the credit performance of its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending February 29, March 31, and April 30, 2024. The data furnished is supplementary to the information reported in the company's Lending Trust's Form 10-D filings and includes key metrics such as total loans, 30-day delinquency rates, and net write-off rates. Overall, the presented statistics indicate a stable to slightly improving credit environment for American Express's U.S. card member portfolios during the first four months of 2024. Delinquency rates remained consistent, and while net write-off rates saw minor fluctuations, they stayed within a comparable range across the reported periods. Investors will find this information useful for assessing the company's credit risk management and the underlying health of its loan portfolios, which are critical to its profitability.

Key Highlights

  • 1Furnishes delinquency and write-off statistics for U.S. Consumer and U.S. Small Business Card Member lending portfolios for February, March, and April 2024.
  • 2U.S. Consumer total loans increased from $80.4 billion in February to $82.6 billion in April.
  • 3U.S. Consumer 30-day past due loans as a percentage of total loans remained stable at 1.4% in March and April, slightly down from 1.5% in February.
  • 4U.S. Consumer net write-off rate (principal only) was 2.5% in April, up slightly from 2.3% in March but comparable to 2.4% in February.
  • 5U.S. Small Business total loans grew from $26.5 billion in February to $27.7 billion in April.
  • 6U.S. Small Business 30-day past due loans as a percentage of total loans showed minor fluctuations, ending at 1.4% in April, down from 1.5% in March and February.
  • 7U.S. Small Business net write-off rate (principal only) decreased to 2.2% in April from 2.4% in March and 2.3% in February.

Frequently Asked Questions

This filing provides statistics on total loans, 30-day past due loans as a percentage of total loans, and net write-off rates (based on principal only) for both the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending February 29, March 31, and April 30, 2024. It also includes data for the American Express Credit Account Master Trust.

For the U.S. Consumer portfolio, 30-day delinquency rates were stable at 1.4% for March and April, a slight improvement from 1.5% in February. The net write-off rate saw a slight increase to 2.5% in April from 2.3% in March. For the U.S. Small Business portfolio, 30-day delinquency rates remained consistent around 1.4%-1.5%, and the net write-off rate showed a modest improvement, decreasing to 2.2% in April.

American Express is furnishing these statistics to provide additional information beyond what is reported in the Lending Trust's monthly Form 10-D. This allows investors to have a more comprehensive view of the credit performance of the broader U.S. Consumer and U.S. Small Business Card Member loan portfolios, which include both securitized and non-securitized loans.

The filing notes that the Card Member loans securitized through the Lending Trust may not have identical characteristics to the total portfolios. Differences in loan mix, vintage, aging, and calculation methodologies (e.g., average vs. end-of-period balances for write-offs) mean that the reported credit performance of the Lending Trust might differ from the overall portfolio statistics presented here on a month-to-month basis.