01—Abstract
Summary
Summary of the 8-K filed December 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 the credit performance of its U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ending September 30, October 31, and November 30, 2024.
The report details delinquency and net write-off rates, offering investors insights into the company's risk management and asset quality. The data indicates stable delinquency rates across both segments, with the U.S. Consumer portfolio showing a consistent 1.4%a 30-day past due rate and the U.S. Small Business portfolio at 1.5%.
02—Key points
Key Highlights
- Delinquency rates for U.S. Consumer loans remained stable at 1.4% for the three months ending September 30, October 31, and November 30, 2024.
- Delinquency rates for U.S. Small Business loans were consistently 1.5% for the same three-month period.
- Net write-off rates for U.S. Consumer loans fluctuated, showing 1.9% in September, 2.4% in October, and 2.0% in November.
- Net write-off rates for U.S. Small Business loans increased slightly from 2.1% in September to 2.3% in November, with 2.2% in October.
- Total U.S. Card Member loans (Consumer and Small Business combined) grew from $116.7 billion in September to $120.0 billion in November.
- The filing also provides credit performance data for the American Express Credit Account Master Trust, showing a stable annualized default rate, net of recoveries, at 1.3% or 1.5%.
03—Questions
Frequently Asked Questions
What are the key credit metrics reported in this filing?
This filing reports on delinquency rates (30 days past due as a percentage of total loans) 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 for the American Express Credit Account Master Trust, focusing on defaulted amounts and annualized default rates.
How has the delinquency rate trended for American Express's loan portfolios?
Delinquency rates have remained stable. The U.S. Consumer portfolio consistently showed a 30-day delinquency rate of 1.4%, while the U.S. Small Business portfolio was at 1.5% for the months of September, October, and November 2024.
What is the trend in net write-off rates?
Net write-off rates have shown some fluctuation. For U.S. Consumer loans, the rate was 1.9% in September, increased to 2.4% in October, and then decreased to 2.0% in November. For U.S. Small Business loans, the rates were 2.1% in September, 2.2% in October, and 2.3% in November, indicating a slight upward trend in the latter portfolio.
How does the data for the American Express Credit Account Master Trust compare to the overall portfolios?
The filing notes that loans securitized through the Lending Trust may have different characteristics than the total portfolios. For the reporting periods, the Lending Trust showed a slightly lower or comparable annualized default rate (1.3% or 1.5%) compared to the net write-off rates of the overall portfolios, which are generally higher.
04—Continue