Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on June 15, 2023, under Item 7.01 Regulation FD Disclosure. The report provides supplemental credit performance statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ended March 31, April 30, and May 31, 2023. It also includes data for the American Express Credit Account Master Trust (Lending Trust) for the same periods.
Key Financial Metrics
The filing focuses on loan balances, delinquency rates, and net write-off rates rather than revenue or profit metrics.
| Metric | May 31, 2023 | April 30, 2023 | March 31, 2023 |
|---|---|---|---|
| U.S. Consumer Total Loans ($B) | 75.5 | 73.8 | 71.9 |
| U.S. Consumer 30+ Days Past Due (%) | 1.1% | 1.1% | 1.1% |
| U.S. Consumer Net Write-off Rate (%) | 1.6% | 1.5% | 1.7% |
| U.S. Small Business Total Loans ($B) | 23.7 | 23.5 | 23.0 |
| U.S. Small Business 30+ Days Past Due (%) | 1.1% | 1.1% | 1.1% |
| U.S. Small Business Net Write-off Rate (%) | 1.7% | 1.4% | 1.4% |
| Total Card Member Loans ($B) | 99.2 | 97.3 | 95.0 |
| Lending Trust Ending Principal Balance ($B) | 26.4 | 26.1 | 25.8 |
| Lending Trust Annualized Default Rate (%) | 1.0% | 1.0% | 1.1% |
Material Changes
- Loan Growth: Total Card Member loans increased from $95.0 billion in March to $99.2 billion in May 2023, reflecting steady portfolio expansion.
- Delinquency Stability: The 30+ days past due rate remained flat at 1.1% for both U.S. Consumer and U.S. Small Business segments across all three months.
- Write-off Trends: The U.S. Consumer net write-off rate fluctuated slightly (1.7% in March, 1.5% in April, 1.6% in May). The U.S. Small Business net write-off rate increased to 1.7% in May from 1.4% in the prior two months.
- Lending Trust Performance: The Lending Trust's annualized default rate improved slightly to 1.0% in May from 1.1% in March.
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 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 (end-of-period balances vs. average balances).
Investor Verification Checklist
- Verify the trend in U.S. Small Business net write-off rates, which rose to 1.7% in May.
- Compare these supplemental statistics with the official Form 10-D reports filed by the American Express Credit Account Master Trust.
- Monitor the stability of the 1.1% delinquency rate in the context of broader economic conditions.
- Confirm that the reported loan balances include both securitized and non-securitized loans, whereas Lending Trust data reflects only securitized assets.