Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on September 16, 2024, under Item 7.01 Regulation FD Disclosure. 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 June 30, July 31, and August 31, 2024. It also includes data for the American Express Credit Account Master Trust (Lending Trust) for the same periods.
Key Financial Metrics
U.S. Consumer Card Member Loans
- Total Loans (Aug 31, 2024): $87.3 billion
- Average Loans (Aug 31, 2024): $86.6 billion
- 30+ Days Past Due: 1.3% (consistent across June, July, and August 2024)
- Net Write-off Rate (Principal Only): 2.2% (August), 2.1% (July), 2.3% (June)
U.S. Small Business Card Member Loans
- Total Loans (Aug 31, 2024): $30.1 billion
- Average Loans (Aug 31, 2024): $29.6 billion
- 30+ Days Past Due: 1.4% (consistent across June, July, and August 2024)
- Net Write-off Rate (Principal Only): 2.3% (August and July), 2.4% (June)
Total Card Member Loans (Consumer + Small Business)
- Total Loans (Aug 31, 2024): $117.4 billion
Lending Trust (Securitized Portfolio)
- Ending Principal Balance (Aug 31, 2024): $25.7 billion
- Annualized Default Rate (Net of Recoveries): 1.4% (August), 1.2% (July), 1.5% (June)
- Total 30+ Days Delinquent: $0.2 billion (consistent across all three months)
Material Changes vs. Prior Period
Loan Growth: Total Card Member loans increased from $113.6 billion in June to $117.4 billion in August 2024, reflecting steady portfolio expansion.
Credit Quality Stability: Delinquency rates (30+ days past due) remained flat at 1.3% for Consumer and 1.4% for Small Business across all three months.
Write-off Trends: Net write-off rates for both Consumer and Small Business segments showed slight improvement or stabilization in August compared to June, with Consumer rates dropping from 2.3% to 2.2% and Small Business rates dropping from 2.4% to 2.3%.
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 Lending Trust's credit performance may differ from the total portfolio due to differences in loan mix, vintage, aging, and calculation mechanics (end-of-period balances vs. average balances).
Investor Verification Checklist
- Verify the consistency of the 1.3% and 1.4% delinquency rates against broader economic indicators for the third quarter of 2024.
- Compare the reported net write-off rates (2.2% and 2.3%) with the company's historical averages and peer benchmarks.
- Review the Lending Trust's Form 10-D filings to understand the specific mechanics causing the divergence between the Trust's default rate (1.4%) and the broader portfolio write-off rates.
- Confirm the total loan balance growth trajectory ($117.4B) aligns with the company's stated strategic lending targets.