01—Abstract
Summary
Summary of the 8-K filed September 16, 2024. Cited figures are marked; the original filing is the authoritative source.
This 8-K filing from American Express (AXP) provides an update on key credit performance metrics for its U.S. Consumer and U.S. Small Business card member lending portfolios as of August 31, 2024, and for the preceding two months.
The report is furnished to provide additional information beyond the data reported in the company's securitization trust filings. Investors should note that the presented statistics are for the total portfolios, which include both securitized and non-securitized loans, and may differ from the performance of the securitized assets alone. Overall, the presented delinquency and net write-off rates for the U.S. Consumer and U.S. Small Business portfolios remained relatively stable across the reported months.
The 30-day delinquency rate held steady at 1.3%a for U.S. Consumer loans and 1.4% for U.S. Small Business loans. Net write-off rates also showed minimal fluctuation, with the U.S. Consumer portfolio at 2.2% for August and the U.S. Small Business portfolio at 2.3%. The filing also includes data for the American Express Credit Account Master Trust, indicating a stable annualized default rate, net of recoveries, in the 1.2% to 1.5% range for the respective periods.
02—Key points
Key Highlights
- U.S. Consumer 30-day delinquency rate remained stable at 1.3% for August 2024.
- U.S. Small Business 30-day delinquency rate remained stable at 1.4% for August 2024.
- U.S. Consumer net write-off rate was 2.2% for August 2024, with minor fluctuations in prior months.
- U.S. Small Business net write-off rate was 2.3% for August 2024, with minor fluctuations in prior months.
- Total U.S. Consumer and Small Business card member loans stood at $117.4 billion as of August 31, 2024.
- The American Express Credit Account Master Trust reported a stable annualized default rate, net of recoveries, between 1.2% and 1.5% for June, July, and August 2024.
03—Questions
Frequently Asked Questions
What is the primary purpose of this 8-K filing?
The primary purpose of this 8-K filing is to furnish investors with updated delinquency and net write-off statistics for American Express's U.S. Consumer and U.S. Small Business card member lending portfolios for the months ending August 31, July 31, and June 30, 2024. This information provides additional credit performance data beyond what is typically reported in the company's securitization trust filings.
Are the credit metrics presented in this filing the same as those for the securitized loans?
No, the statistics presented are for the entire U.S. Consumer and U.S. Small Business card member loan portfolios, which include both securitized and non-securitized loans. These may differ from the credit performance reported for the American Express Credit Account Master Trust (the securitized assets) due to various factors like loan mix, vintage, aging, and different calculation methodologies for write-off rates.
How stable are the delinquency and write-off rates for American Express's U.S. portfolios?
The reported metrics indicate relative stability. For the U.S. Consumer portfolio, the 30-day delinquency rate remained at 1.3% and the net write-off rate was 2.2% in August, with minimal variation in the preceding months. Similarly, the U.S. Small Business portfolio showed a stable 1.4% 30-day delinquency rate and a 2.3% net write-off rate in August, also with little change from prior periods. The securitized trust also showed a stable default rate.
What is the total loan volume reported for these portfolios?
As of August 31, 2024, the total loans for the U.S. Consumer Card Member portfolio were $87.3 billion, and for the U.S. Small Business Card Member portfolio were $30.1 billion. Combined, the total card member loans for these U.S. portfolios amounted to $117.4 billion.
04—Continue