Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on January 16, 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 October 31, November 30, and December 31, 2023, as well as the three-month period ended December 31, 2023.
Key Financial Metrics
U.S. Consumer Card Member Loans
- Total Loans (Dec 31, 2023): $83.2 billion
- Average Loans (Q4 2023): $80.3 billion
- 30+ Days Past Due (Dec 2023): 1.4% of total loans
- Net Write-off Rate (Q4 2023): 2.1% (principal only)
- Monthly Write-off Rates: 2.5% (Dec), 1.7% (Nov), 1.9% (Oct)
U.S. Small Business Card Member Loans
- Total Loans (Dec 31, 2023): $25.8 billion
- Average Loans (Q4 2023): $25.6 billion
- 30+ Days Past Due (Dec 2023): 1.4% of total loans
- Net Write-off Rate (Q4 2023): 2.1% (principal only)
- Monthly Write-off Rates: 2.2% (Dec), 2.0% (Nov), 2.0% (Oct)
Combined U.S. Card Member Loans
- Total Loans (Dec 31, 2023): $109.0 billion
American Express Credit Account Master Trust (Lending Trust)
- Ending Principal Balance (Dec 31, 2023): $27.2 billion
- Annualized Default Rate (Dec 2023): 1.5% (net of recoveries)
- Total 30+ Days Delinquent: $0.2 billion
Material Changes and Commentary
The filing notes a specific operational factor affecting the November 2023 U.S. Consumer write-off rate. Due to the timing of the Thanksgiving holiday, certain debt settlement agreements were received later in the month, resulting in the associated loans being written off in December 2023. This timing difference contributed to the lower November write-off rate (1.7%) compared to December (2.5%).
Delinquency rates for both Consumer and Small Business portfolios remained stable at 1.4% for December 2023, consistent with November levels. The Lending Trust data is presented separately and may differ from the total portfolio statistics due to differences in loan mix, vintage, and calculation methodologies (e.g., end-of-period balances vs. average balances).
Investor Verification Checklist
- Verify the impact of the November holiday timing on the Q4 2023 write-off trend.
- Compare the Lending Trust default rate (1.5%) against the broader portfolio net write-off rates (2.1%) to understand securitization performance.
- Monitor the stability of the 1.4% delinquency rate in the upcoming quarters.
- Review the full Q4 2023 earnings release for context on revenue and profit, as this 8-K focuses solely on credit statistics.