Business Context and Reporting Period
This Form 8-K filing by American Express Company, dated July 16, 2018, provides Regulation FD disclosure regarding credit performance statistics. The report covers the U.S. Consumer Card Member lending portfolio (Global Consumer Services Group) and the U.S. Small Business Card Member lending portfolio (Global Commercial Services operating segment) for the months ended April 30, May 31, and June 30, 2018, as well as the three-month period ended June 30, 2018.
Key Financial Metrics
The filing presents preliminary delinquency and write-off statistics for Card Member loans. The filing text does not provide data on revenue, profit, cash flow, margins, debt, or liquidity for the company as a whole.
| Metric | U.S. Consumer (June 2018) | U.S. Small Business (June 2018) | Total Card Member Loans (June 2018) |
|---|---|---|---|
| Total Loans ($ Billions) | $54.7 | $11.7 | $66.3 |
| 30+ Days Past Due (% of Total) | 1.3% | 1.2% | N/A |
| Net Write-off Rate (Principal Only) | 2.0% | 1.6% | N/A |
American Express Credit Account Master Trust (Lending Trust) Data for June 2018:
- Ending Total Principal Balance: $23.3 billion
- Defaulted Amount: $0.04 billion
- Annualized Default Rate (Net of Recoveries): 1.4%
- Total 30+ Days Delinquent: $0.2 billion
Material Changes Versus Prior Period
U.S. Consumer Portfolio:
- Total loans increased from $53.1 billion in April to $54.7 billion in June.
- Net write-off rate improved (decreased) from 2.3% in April to 2.0% in June.
- 30+ days past due ratio remained stable at 1.3% across April, May, and June.
U.S. Small Business Portfolio:
- Total loans increased from $11.3 billion in April to $11.7 billion in June.
- Net write-off rate improved (decreased) from 1.9% in April to 1.6% in June.
- 30+ days past due ratio remained stable at 1.2% across April, May, and June.
Lending Trust:
- Annualized default rate improved from 1.7% in April to 1.4% in June.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure context. The document notes that credit performance statistics for the Lending Trust may differ from the total Card Member loan portfolios due to differences in loan mix, vintage, aging, and calculation mechanics (e.g., use of end-of-period balances versus average balances).
Important Facts for Investor Verification
- Verify the trend of improving net write-off rates in both U.S. Consumer and Small Business segments over the three-month period.
- Confirm the distinction between the reported Card Member loan statistics and the securitized Lending Trust statistics, as they utilize different calculation methodologies.
- Note that the data provided is preliminary as of the filing date.
- Check subsequent filings for the finalization of these preliminary statistics and their impact on quarterly earnings.