8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Dec 16, 2024)

Filed December 16, 2024For Securities:AXP

Summary

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% 30-day past due rate and the U.S. Small Business portfolio at 1.5%.

Key Highlights

  • 1Delinquency rates for U.S. Consumer loans remained stable at 1.4% for the three months ending September 30, October 31, and November 30, 2024.
  • 2Delinquency rates for U.S. Small Business loans were consistently 1.5% for the same three-month period.
  • 3Net write-off rates for U.S. Consumer loans fluctuated, showing 1.9% in September, 2.4% in October, and 2.0% in November.
  • 4Net 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.
  • 5Total U.S. Card Member loans (Consumer and Small Business combined) grew from $116.7 billion in September to $120.0 billion in November.
  • 6The 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%.

Frequently Asked Questions

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.

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.

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.

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.