Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on June 15, 2021, 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, 2021.
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, 2021 | April 30, 2021 | March 31, 2021 |
|---|---|---|---|
| U.S. Consumer Card Member Loans | |||
| Total Loans ($ Billions) | $51.0 | $48.5 | $48.3 |
| 30+ Days Past Due (%) | 0.7% | 0.8% | 0.9% |
| Net Write-off Rate (%) | 1.1% | 1.0% | 1.1% |
| U.S. Small Business Card Member Loans | |||
| Total Loans ($ Billions) | $14.2 | $13.6 | $13.3 |
| 30+ Days Past Due (%) | 0.5% | 0.5% | 0.6% |
| Net Write-off Rate (%) | 0.6% | 0.7% | 0.7% |
| Total Card Member Loans (Consumer + Small Business) | |||
| Total Loans ($ Billions) | $65.3 | $62.1 | $61.6 |
American Express Credit Account Master Trust (Lending Trust) Metrics:
- Ending Total Principal Balance (May 2021): $24.1 Billion
- Annualized Default Rate, Net of Recoveries (May 2021): 0.8%
- Total 30+ Days Delinquent (May 2021): $0.1 Billion
Material Changes Versus Prior Period
- Loan Growth: Total Card Member loans increased from $61.6 billion in March to $65.3 billion in May 2021.
- Delinquency Improvement: The 30+ days past due rate for U.S. Consumer loans improved sequentially from 0.9% in March to 0.7% in May. U.S. Small Business delinquency remained stable at 0.5% in April and May after 0.6% in March.
- Write-off Trends: U.S. Consumer net write-off rates fluctuated slightly between 1.0% and 1.1%. U.S. Small Business net write-off rates improved from 0.7% in March/April to 0.6% in May.
- Lending Trust Performance: The annualized default rate for the Lending Trust improved from 0.9% in March to 0.8% in 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. However, the text 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).
Key Facts for Investor Verification
- Verify the sequential improvement in U.S. Consumer delinquency rates (0.9% to 0.7%) over the three-month period.
- Confirm the distinction between the total portfolio statistics and the securitized Lending Trust statistics, as calculation methodologies differ.
- Note that net write-off rates are reported based on principal only, excluding interest and fees.
- Observe the growth in total loan balances across both Consumer and Small Business segments from March to May 2021.