How are the delinquency and write-off rates trending for U.S. Consumer loans?

For U.S. Consumer loans, the 30-day past due rate remained consistent at 1.4% for September and October, up slightly from 1.3% in August. The net write-off rate for principal only showed some fluctuation, increasing to 2.4% in October from 1.9% in September and 2.2% in August. This suggests a slight uptick in write-offs in the most recent month.

What do the credit metrics indicate for U.S. Small Business loans?

For U.S. Small Business loans, the 30-day past due rate increased marginally from 1.4% in August to 1.5% in September and October. The net write-off rate for principal only has been relatively stable, fluctuating between 2.1% and 2.3%, with a rate of 2.2% reported for October. This indicates a steady, though slightly elevated, level of credit risk for this segment.

What is the difference between the portfolio data and the Lending Trust data provided?

The filing explicitly states that the U.S. Consumer and U.S. Small Business Card Member loan portfolio data includes both securitized and non-securitized loans, whereas the American Express Credit Account Master Trust (Lending Trust) data pertains only to securitized loans. Differences in loan characteristics, vintage, aging, and calculation methodologies (e.g., use of average vs. end-of-period balances for write-offs) mean that the credit performance of the Lending Trust may not be identical to the overall portfolio performance.

AXP 8-K: Regulation FD — Nov 15, 2024

Q: What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to provide investors with updated statistics on delinquency and net write-off rates for American Express's U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending August 31, September 30, and October 31, 2024. This information helps investors assess the credit quality of the company's loan assets.

Summary

This 8-K filing from American Express (AXP) provides updated delinquency and net write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending August 31, September 30, and October 31, 2024. The data offers a look into the credit quality of AXP's loan books, which is a key indicator of its risk management and the overall health of its customer base. Investors closely monitor these metrics for potential impacts on future earnings and loan loss provisions. Overall, the reported figures show relatively stable credit performance across the three months. Delinquency rates remained consistent, and net write-off rates, while experiencing some fluctuation, stayed within a range that suggests manageable credit risk. This information is provided in addition to the data reported by the American Express Credit Account Master Trust (Lending Trust), with clear distinctions made regarding the methodologies and scope of each report. Investors should note these differences when comparing the portfolio-level data with the securitized trust data.

Key Highlights

1Provides updated U.S. Consumer and U.S. Small Business Card Member loan delinquency and write-off statistics for August, September, and October 2024.
2U.S. Consumer 30-day past due rate remained stable at 1.4% for September and October, slightly increasing from 1.3% in August.
3U.S. Consumer net write-off rate for principal only fluctuated, standing at 2.4% in October, compared to 1.9% in September and 2.2% in August.
4U.S. Small Business 30-day past due rate saw a slight increase from 1.4% in August to 1.5% in September and October.
5U.S. Small Business net write-off rate for principal only was relatively stable, ranging from 2.1% to 2.3% over the three months, with a 2.2% rate in October.
6Total U.S. Card Member loans (Consumer and Small Business) grew from $116.7 billion in September to $118.5 billion in October.
7Includes comparative data for the American Express Credit Account Master Trust, highlighting differences in calculation methodologies and loan portfolio characteristics.

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

Summary

Key Highlights

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