Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on June 15, 2022, under Item 7.01 Regulation FD Disclosure. The report provides monthly 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 March 31, April 30, and May 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 | May 31, 2022 | April 30, 2022 | March 31, 2022 |
|---|---|---|---|
| U.S. Consumer Card Member Loans | |||
| Total Loans ($ Billions) | $62.9 | $60.5 | $59.1 |
| 30+ Days Past Due (%) | 0.7% | 0.7% | 0.8% |
| Net Write-off Rate (%) | 0.9% | 0.9% | 0.8% |
| U.S. Small Business Card Member Loans | |||
| Total Loans ($ Billions) | $19.0 | $18.6 | $18.1 |
| 30+ Days Past Due (%) | 0.6% | 0.5% | 0.6% |
| Net Write-off Rate (%) | 0.7% | 0.6% | 0.7% |
| Total Card Member Loans (Consumer + Small Business) | |||
| Total Loans ($ Billions) | $81.9 | $79.2 | $77.2 |
American Express Credit Account Master Trust (Lending Trust) Metrics:
- Ending Principal Balance (May 2022): $25.9 Billion
- Annualized Default Rate (May 2022): 0.7%
- Total 30+ Days Delinquent (May 2022): $0.1 Billion
Material Changes Versus Prior Period
- Loan Growth: Total Card Member loans increased from $77.2 billion in March to $81.9 billion in May 2022.
- Consumer Delinquency: The 30+ days past due rate for U.S. Consumer loans improved slightly from 0.8% in March to 0.7% in April and May.
- Consumer Write-offs: The net write-off rate for U.S. Consumer loans rose from 0.8% in March to 0.9% in April and May.
- Small Business Delinquency: The 30+ days past due rate for U.S. Small Business loans fluctuated between 0.5% and 0.6% across the three months.
- Small Business Write-offs: The net write-off rate for U.S. Small Business loans increased from 0.6% in April to 0.7% in 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. However, the text notes that the credit performance of the Lending Trust 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 U.S. Consumer loans, which increased to 0.9% in the most recent two months reported.
- Confirm the stability of the 30+ days past due rate for U.S. Consumer loans at 0.7% for April and May 2022.
- Review the distinction between the reported portfolio statistics and the Lending Trust (Form 10-D) data, as the latter may not reflect the total portfolio characteristics.
- Note that the filing covers only credit performance metrics and does not include revenue, profit, or cash flow data.