8-KRegulation FD

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

Filed August 15, 2024For Securities:AXP

Summary

American Express Company (AXP) filed an 8-K on August 15, 2024, providing updated delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending July 31, June 30, and May 31, 2024. The filing offers insights into the company's credit performance, which is a key indicator for investors assessing risk and the health of the company's loan portfolios. Overall, the data indicates stable credit performance across both segments during the reported period. The 30-day delinquency rates remained consistent at 1.3% for U.S. Consumer and 1.4% for U.S. Small Business loans. Net write-off rates, while slightly decreasing over the period for both segments, remained within a comparable range, suggesting that credit losses are being managed effectively. The filing also provides supplementary data on the American Express Credit Account Master Trust, showing a low annualized default rate net of recoveries, further reinforcing a picture of stable credit quality.

Key Highlights

  • 1U.S. Consumer 30-day past due loans as a percentage of total loans remained stable at 1.3% for May, June, and July 2024.
  • 2U.S. Small Business 30-day past due loans as a percentage of total loans remained stable at 1.4% for May, June, and July 2024.
  • 3Net write-off rate for U.S. Consumer loans decreased from 2.4% in May to 2.1% in July.
  • 4Net write-off rate for U.S. Small Business loans decreased from 2.5% in May to 2.3% in July.
  • 5Total U.S. Consumer and Small Business Card Member loans grew from $112.2 billion in May to $115.1 billion in July.
  • 6The American Express Credit Account Master Trust reported a stable annualized default rate, net of recoveries, between 1.2% and 1.5% for the three months ending July 2024.
  • 7Total 30+ days delinquent amounts for the Lending Trust remained constant at $0.2 billion across the reporting periods.

Frequently Asked Questions

This 8-K reports on the 30-day past due loan rates and net write-off rates for American Express's U.S. Consumer and U.S. Small Business Card Member lending portfolios. It also includes data on total loan balances and, for the American Express Credit Account Master Trust, annualized default rates net of recoveries and 30+ day delinquent amounts.

The credit performance appears stable. The 30-day delinquency rates for both U.S. Consumer and U.S. Small Business portfolios remained consistent throughout the reported period (May-July 2024). Additionally, net write-off rates showed a slight downward trend, suggesting improved credit loss management or reduced defaults.

Yes, total U.S. Card Member loans (Consumer and Small Business combined) show a consistent increase, growing from $112.2 billion in May 2024 to $115.1 billion in July 2024. This indicates portfolio growth.

The Lending Trust data provides a specific view of securitized loan performance, which may differ from the overall portfolio due to loan mix and other factors. The reported stable and low annualized default rates for the Trust further support the general trend of healthy credit quality within American Express's broader loan book.