What are the key credit metrics reported in this 8-K filing?

The filing reports preliminary statistics on 30-day past due loan rates and net write-off rates (principal only) for both the U.S. Consumer and U.S. Small Business Card Member lending portfolios. It also includes data on total loans and average loans for these segments, as well as default rates for the securitized American Express Credit Account Master Trust.

How are the delinquency and write-off rates trending?

The trends appear stable to slightly improving. The 30-day delinquency rates for both consumer and small business segments remained consistent across the reported months. The net write-off rates showed a slight decrease or remained steady, indicating stable credit quality and no significant deterioration in the portfolios during the reported periods.

Are these figures final or preliminary?

The statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios, as well as the total loan figures as of June 30, 2024, are stated as preliminary. The data for the American Express Credit Account Master Trust is presented as reported in its monthly Form 10-D filings.

How do the reported statistics differ from the Lending Trust's 10-D reports?

The filing notes that the Card Member loans securitized through the Lending Trust may not have identical characteristics to the total U.S. Consumer or U.S. Small Business loan portfolios. Differences in loan mix, vintage, aging, and the use of end-of-period balances versus average balances for write-off calculations can lead to variations in reported credit performance between the two data sets on a month-to-month basis.

AXP 8-K: Regulation FD — Jul 15, 2024

Summary

American Express Company (AXP) has filed an 8-K report disclosing preliminary delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the periods ending April 30, May 31, and June 30, 2024, along with the three months ended June 30, 2024. The report indicates stable credit performance across both segments during these periods. For the U.S. Consumer portfolio, 30-day delinquencies remained consistent at 1.3% in June, while the net write-off rate saw a slight decrease to 2.3% for the first quarter of 2024, down from 2.4% in May and 2.5% in April. Similarly, the U.S. Small Business portfolio maintained a 1.4% 30-day delinquency rate, with the net write-off rate for the first quarter of 2024 at 2.3%, a marginal improvement from 2.5% in May and 2.2% in April. Additionally, the filing provides credit performance data for the American Express Credit Account Master Trust. This trust, which securitizes a portion of the company's Card Member loans, reported an annualized default rate, net of recoveries, of 1.5% for June 2024, which is within a narrow range observed in the preceding months. While these figures are preliminary and exclude interest/fees in write-off calculations, they suggest continued credit discipline and stable asset quality for AXP's lending portfolios, which is a positive indicator for investors concerned about credit risk in the current economic environment.

Key Highlights

1Preliminary credit performance data for U.S. Consumer and U.S. Small Business Card Member lending portfolios released.
2U.S. Consumer 30-day past due rate stable at 1.3% as of June 30, 2024.
3U.S. Consumer net write-off rate improved slightly to 2.3% for Q1 2024.
4U.S. Small Business 30-day past due rate remained consistent at 1.4% for the periods presented.
5U.S. Small Business net write-off rate for Q1 2024 was 2.3%.
6Total U.S. Consumer and Small Business loans reached $113.6 billion by June 30, 2024.
7American Express Credit Account Master Trust reported a stable annualized default rate of 1.5% for June 2024.

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

Summary

Key Highlights

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