Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on July 15, 2024, under Item 7.01 (Regulation FD Disclosure). The report provides preliminary delinquency and write-off statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ended April 30, May 31, and June 30, 2024, as well as the three-month period ended June 30, 2024.
Key Financial Metrics
U.S. Consumer Card Member Loans
- Total Loans (June 30, 2024): $85.0 billion
- Average Loans (Q2 2024): $83.5 billion
- 30+ Days Past Due (June 30, 2024): 1.3% of total loans
- Net Write-off Rate (Q2 2024): 2.4% (principal only)
U.S. Small Business Card Member Loans
- Total Loans (June 30, 2024): $28.6 billion
- Average Loans (Q2 2024): $28.0 billion
- 30+ Days Past Due (June 30, 2024): 1.4% of total loans
- Net Write-off Rate (Q2 2024): 2.3% (principal only)
Combined U.S. Card Member Loans
- Total Loans (June 30, 2024): $113.6 billion
American Express Credit Account Master Trust (Lending Trust)
- Ending Principal Balance (June 30, 2024): $25.8 billion
- Annualized Default Rate (June 2024): 1.5% (net of recoveries)
- Total 30+ Days Delinquent (June 2024): $0.2 billion
Material Changes vs. Prior Period
- Loan Growth: Total U.S. Consumer loans increased from $82.6 billion in April to $85.0 billion in June. Total U.S. Small Business loans grew from $27.7 billion in April to $28.6 billion in June.
- Delinquency Trends: The 30+ days past due rate for U.S. Consumer loans improved slightly from 1.4% in April to 1.3% in June. The rate for U.S. Small Business loans remained stable at 1.4% across all three months.
- Write-off Trends: The U.S. Consumer net write-off rate improved from 2.5% in April to 2.3% in June. The U.S. Small Business net write-off rate fluctuated, moving from 2.2% in April to 2.5% in May, then settling at 2.4% in June.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the disclosure of credit performance statistics. The document notes that the credit performance of the Lending Trust may differ from the total portfolio due to differences in loan mix, vintage, aging, and calculation mechanics (e.g., end-of-period balances vs. average balances).
Investor Verification Checklist
- Verify the trend in net write-off rates for both Consumer and Small Business segments against the company's historical averages and peer benchmarks.
- Confirm the stability of the 30+ days past due ratios, noting the slight improvement in the Consumer segment.
- Review the distinction between the total portfolio statistics and the Lending Trust statistics to understand the impact of securitization on reported credit metrics.
- Monitor subsequent Form 10-D filings from the Lending Trust for updated default rates and delinquency balances.