American Express Company Form 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) filed on July 15, 2022, provides Regulation FD disclosure regarding preliminary delinquency and write-off statistics for American Express Company. The data covers the U.S. Consumer Card Member and U.S. Small Business Card Member lending portfolios for the months ended April 30, May 31, and June 30, 2022, as well as the three-month period ended June 30, 2022.
Key Financial Metrics
The filing details credit performance metrics for total loans, delinquency rates, and net write-off rates. It also includes data for the American Express Credit Account Master Trust (Lending Trust).
| Metric | U.S. Consumer (Jun 30, 2022) | U.S. Small Business (Jun 30, 2022) | Total Card Member Loans (Jun 30, 2022) |
|---|---|---|---|
| Total Loans ($ Billions) | $63.7 | $19.4 | $83.1 |
| 30+ Days Past Due (% of Total) | 0.7% | 0.6% | N/A |
| Average Loans ($ Billions) | $63.3 | $19.2 | N/A |
| Net Write-off Rate (Principal Only) | 0.8% | 0.6% | N/A |
Lending Trust Metrics (June 2022):
- Ending Total Principal Balance: $25.8 billion
- Defaulted Amount: $0.02 billion
- Annualized Default Rate (Net of Recoveries): 0.5%
- Total 30+ Days Delinquent: $0.1 billion
Material Changes vs. Prior Period
U.S. Consumer Portfolio:
- Total loans increased from $60.5 billion in April to $63.7 billion in June.
- The 30+ days past due rate remained stable at 0.7% across April, May, and June.
- The net write-off rate improved from 0.9% in April and May to 0.8% in June.
U.S. Small Business Portfolio:
- Total loans grew from $18.6 billion in April to $19.4 billion in June.
- The 30+ days past due rate increased slightly from 0.5% in April to 0.6% in May and June.
- The net write-off rate fluctuated between 0.6% and 0.7%, ending at 0.6% in June.
Lending Trust:
- The annualized default rate improved to 0.5% in June from 0.7% in both April and May.
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 Lending Trust's reported credit performance may differ from the total portfolio statistics due to differences in loan mix, vintage, aging, and calculation mechanics (e.g., end-of-period balances vs. average balances).
Key Facts for Investor Verification
- Verify the trend in net write-off rates for the U.S. Consumer portfolio, which showed improvement in June 2022.
- Confirm the stability of the 30+ days past due rate for U.S. Consumer loans at 0.7% over the three-month period.
- Review the divergence between the Lending Trust's annualized default rate (0.5%) and the broader portfolio net write-off rates.
- Note that the provided statistics are preliminary and exclude interest and fees in write-off calculations.