Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on November 15, 2024, under Item 7.01 (Regulation FD Disclosure). The report provides monthly delinquency and write-off statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ended August 31, September 30, and October 31, 2024. It also includes credit performance data for the American Express Credit Account Master Trust (Lending Trust) for the same periods.
Key Financial Metrics
U.S. Consumer Card Member Loans (October 2024):
- Total loans: $88.0 billion
- 30 days past due loans: 1.4% of total
- Average loans: $87.4 billion
- Net write-off rate (principal only): 2.4%
U.S. Small Business Card Member Loans (October 2024):
- Total loans: $30.5 billion
- 30 days past due loans: 1.5% of total
- Average loans: $30.2 billion
- Net write-off rate (principal only): 2.2%
Total Card Member Loans (U.S. Consumer + Small Business):
- October 2024 Total: $118.5 billion
U.S. Credit Account Master Trust (October 2024):
- Ending total principal balance: $25.7 billion
- Defaulted amount: $0.05 billion
- Annualized default rate (net of recoveries): 1.5%
- Total 30+ days delinquent: $0.2 billion
Material Changes Versus Prior Period
U.S. Consumer Portfolio:
- Total loans increased from $86.8 billion in September to $88.0 billion in October.
- 30 days past due ratio remained stable at 1.4% (up from 1.3% in August).
- Net write-off rate increased to 2.4% in October, compared to 1.9% in September and 2.2% in August.
U.S. Small Business Portfolio:
- Total loans increased from $29.9 billion in September to $30.5 billion in October.
- 30 days past due ratio remained stable at 1.5% (up from 1.4% in August).
- Net write-off rate increased slightly to 2.2% in October, compared to 2.1% in September and 2.3% in August.
Lending Trust:
- Ending principal balance remained flat at $25.7 billion compared to August, after a slight dip to $25.5 billion in September.
- Annualized default rate increased to 1.5% in October from 1.3% in September.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond standard disclosures. The document notes that credit performance statistics may vary month-to-month due to factors such as the mix, vintage, and aging of loans, calculation mechanics (end-of-period vs. average balances), seasonality, and timing of information from third parties. It explicitly states that the Lending Trust portfolio does not possess identical characteristics to the total U.S. Consumer or Small Business portfolios.
Investor Verification Checklist
- Verify the trend in net write-off rates for U.S. Consumer loans, which rose to 2.4% in October.
- Confirm the stability of delinquency rates (30 days past due) hovering around 1.4%–1.5% across both consumer and small business segments.
- Review the discrepancy between total portfolio balances ($118.5 billion) and the securitized Lending Trust balance ($25.7 billion) to understand exposure concentration.
- Monitor the Lending Trust's annualized default rate, which increased to 1.5% in October.
- Check subsequent Form 10-D filings for the Lending Trust to track monthly default and delinquency trends.