How does the data in this filing differ from the information reported by the American Express Credit Account Master Trust (Lending Trust)?

The data in this 8-K covers both securitized and non-securitized Card Member loans for the total U.S. Consumer and U.S. Small Business portfolios. In contrast, the Lending Trust's Form 10-D report typically includes only securitized loans and may use different calculation methodologies (e.g., average loan balances versus end-of-period principal balances for write-off statistics), leading to potential differences in reported credit performance.

What is the general trend in credit quality indicated by these preliminary figures?

The preliminary figures suggest stable to slightly improving credit quality. Delinquency rates have remained consistent, and net write-off rates for the U.S. Consumer portfolio have shown a slight decrease in September. The U.S. Small Business write-off rates have been steady. This indicates that the company's loan portfolios are performing reasonably well from a credit perspective.

Are these reported numbers final or preliminary?

The figures for September 30, 2024, and the three months ended September 30, 2024, are explicitly labeled as 'Preliminary'. The data for the months prior is presented alongside these preliminary figures.

AXP 8-K: Regulation FD — Oct 15, 2024

Q: What specific credit metrics are being disclosed in this 8-K filing?

This filing discloses preliminary delinquency and write-off rate statistics for American Express's U.S. Consumer and U.S. Small Business Card Member lending portfolios. Specifically, it provides '30 days past due loans as a % of total' and 'Net write-off rate – principal only'.

Summary

This 8-K filing from American Express (AXP) provides investors with preliminary, supplemental data on the credit performance of its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending July 31, August 31, and September 30, 2024, along with a three-month aggregate for the period ending September 30, 2024. The report focuses on key metrics such as 30-day delinquency rates and net write-off rates, offering a snapshot of credit quality trends ahead of more comprehensive reporting. This information is furnished under Regulation FD and is separate from data reported by the American Express Credit Account Master Trust (Lending Trust), though it includes both securitized and non-securitized loans. Overall, the presented data indicates stable to slightly improving credit metrics. The 30-day delinquency rates for both U.S. Consumer and U.S. Small Business segments remained relatively consistent, hovering around 1.3%-1.4% for consumers and 1.4%-1.5% for small businesses. Net write-off rates also showed a slight downward trend, particularly for the U.S. Consumer portfolio, decreasing from 2.2% in August to 1.9% in September, with the three-month average at 2.1%. The U.S. Small Business write-off rate remained steady at 2.1%-2.2% over the period. These preliminary figures suggest that American Express's loan portfolios are maintaining a solid credit profile, which is a positive indicator for the company's financial health and risk management.

Key Highlights

1Preliminary credit performance data for U.S. Consumer and U.S. Small Business Card Member lending portfolios is provided for July, August, and September 2024.
230-day past due delinquency rates for U.S. Consumer loans remained stable at 1.3%-1.4%.
330-day past due delinquency rates for U.S. Small Business loans were consistent at 1.4%-1.5%.
4Net write-off rate for U.S. Consumer loans showed improvement, decreasing to 1.9% in September from 2.2% in August.
5Net write-off rate for U.S. Small Business loans remained relatively stable, ranging from 2.1% to 2.3% for the months reported.
6The filing includes aggregate data for the three months ended September 30, 2024, for both loan portfolios.
7Data presented is for both securitized and non-securitized loans, offering a broader view than the Lending Trust's reported data.

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

Summary

Key Highlights

Frequently Asked Questions