Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on February 18, 2020, pursuant to Regulation FD. 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 January 31, 2020, December 31, 2019, and November 30, 2019.
Key Financial Metrics
The filing details loan balances, delinquency rates, and net write-off rates for specific segments and the associated Lending Trust.
U.S. Consumer Card Member Loans (January 31, 2020)
- Total loans: $60.2 billion
- 30 days past due loans: 1.6% of total
- Average loans: $61.3 billion
- Net write-off rate (principal only): 2.3%
U.S. Small Business Card Member Loans (January 31, 2020)
- Total loans: $13.8 billion
- 30 days past due loans: 1.3% of total
- Average loans: $13.7 billion
- Net write-off rate (principal only): 1.9%
American Express Credit Account Master Trust (January 2020)
- Ending total principal balance: $29.7 billion
- Defaulted amount: $0.05 billion
- Annualized default rate, net of recoveries: 1.6%
- Total 30+ days delinquent: $0.3 billion
Material Changes Versus Prior Period
Comparing January 2020 to December 2019:
- U.S. Consumer Loans: Total loans decreased from $62.4 billion to $60.2 billion. The net write-off rate improved (decreased) from 2.5% to 2.3%. The 30-day delinquency rate remained stable at 1.6%.
- U.S. Small Business Loans: Total loans increased slightly from $13.7 billion to $13.8 billion. The net write-off rate improved from 2.1% to 1.9%. The 30-day delinquency rate remained stable at 1.3%.
- Lending Trust: The ending principal balance decreased from $31.1 billion to $29.7 billion. The annualized default rate improved from 1.7% to 1.6%.
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 portfolios 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 for both Consumer and Small Business segments over the last three months.
- Confirm the stability of 30-day delinquency rates despite fluctuations in total loan balances.
- Review the discrepancy between total portfolio balances ($74.0 billion combined) and the Lending Trust balance ($29.7 billion) to understand securitization exposure.
- Check subsequent Form 10-D filings for the Lending Trust to monitor monthly default rate consistency.