Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on August 15, 2022, under Item 7.01 Regulation FD Disclosure. The report provides supplemental delinquency and write-off statistics for the U.S. Consumer Card Member and U.S. Small Business Card Member lending portfolios for the months ended May 31, June 30, and July 31, 2022.
Key Financial Metrics
The filing details credit performance metrics for total loans, delinquency rates, and net write-off rates (principal only) for the specified periods.
| Metric | July 31, 2022 | June 30, 2022 | May 31, 2022 |
|---|---|---|---|
| U.S. Consumer Total Loans ($B) | 65.1 | 63.7 | 62.9 |
| U.S. Consumer 30+ Days Past Due (%) | 0.7% | 0.7% | 0.7% |
| U.S. Consumer Net Write-off Rate (%) | 0.8% | 0.8% | 0.9% |
| U.S. Small Business Total Loans ($B) | 20.0 | 19.4 | 19.0 |
| U.S. Small Business 30+ Days Past Due (%) | 0.6% | 0.6% | 0.6% |
| U.S. Small Business Net Write-off Rate (%) | 0.6% | 0.6% | 0.7% |
| Total Card Member Loans ($B) | 85.2 | 83.1 | 81.9 |
American Express Credit Account Master Trust (Lending Trust) Metrics:
- Ending Principal Balance (July 2022): $25.9 billion
- Annualized Default Rate (July 2022): 0.6% (up from 0.5% in June and 0.7% in May)
- Total 30+ Days Delinquent: $0.1 billion for all three months reported.
Material Changes
From May to July 2022, total Card Member loans increased from $81.9 billion to $85.2 billion. Net write-off rates for both U.S. Consumer and U.S. Small Business portfolios improved slightly, declining from 0.9% and 0.7% respectively in May to 0.8% and 0.6% in July. Delinquency rates (30 days past due) remained stable at 0.7% for consumers and 0.6% for small businesses across the three-month period.
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 (e.g., end-of-period balances vs. average balances).
Investor Verification Checklist
- Verify the trend in net write-off rates against broader economic indicators for the second half of 2022.
- Compare the Lending Trust default rates with the total portfolio rates to assess the impact of securitization on reported credit quality.
- Confirm the stability of the 30+ days past due ratio in subsequent monthly filings to ensure no deterioration in credit quality.
- Review the Form 10-D reports filed by the American Express Credit Account Master Trust for granular data on the securitized portion of the portfolio.