Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on June 17, 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 March 31, April 30, and May 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 (May 2024): $84.0 billion
- 30+ Days Past Due: 1.3% (May 2024), down from 1.4% in April and March 2024.
- Average Loans (May 2024): $83.3 billion
- Net Write-off Rate (Principal Only): 2.4% (May 2024), up from 2.3% in March but down from 2.5% in April.
U.S. Small Business Card Member Loans
- Total Loans (May 2024): $28.2 billion
- 30+ Days Past Due: 1.4% (May 2024), down from 1.5% in March 2024.
- Average Loans (May 2024): $27.9 billion
- Net Write-off Rate (Principal Only): 2.5% (May 2024), up from 2.2% in April and 2.4% in March.
Combined U.S. Card Member Loans
- Total Loans (May 2024): $112.2 billion
Lending Trust (Securitized Portfolio)
- Ending Principal Balance (May 2024): $25.8 billion
- Annualized Default Rate (Net of Recoveries): 1.4% (May 2024), down from 1.6% in April.
- Total 30+ Days Delinquent: $0.2 billion (consistent across March, April, and May).
Material Changes vs. Prior Period
- Delinquency Trends: Both U.S. Consumer and Small Business portfolios saw a slight improvement in 30+ days past due rates in May 2024 compared to the prior two months.
- Write-off Volatility: Net write-off rates fluctuated month-over-month. The Consumer rate dipped in May after rising in April, while the Small Business rate rose in May after a dip in April.
- Portfolio Growth: Total combined loans increased from $109.9 billion in March to $112.2 billion in May 2024.
Management Commentary and Risks
The filing notes that the reported statistics differ from the Lending Trust's Form 10-D data due to differences in loan mix, vintage, aging, and calculation mechanics (e.g., end-of-period balances vs. average balances). The filing does not provide specific forward-looking guidance, management commentary on future outlook, or detailed risk factors beyond the inherent credit performance data presented.
Investor Verification Checklist
- Verify the trend of net write-off rates for Small Business loans, which increased to 2.5% in May.
- Compare these supplemental statistics with the official Form 10-D filings for the Lending Trust to understand the divergence in reported default rates.
- Monitor the stability of the 30+ days past due rates, which have shown slight improvement but remain elevated compared to historical lows.
- Confirm that the "principal only" write-off metric excludes interest and fees, which may impact total loss severity analysis.