Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on April 15, 2024, under Item 7.01 Regulation FD Disclosure. The report provides preliminary delinquency and write-off statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ended January 31, February 29, and March 31, 2024, as well as the three-month period ended March 31, 2024.
Key Financial Metrics
U.S. Consumer Card Member Loans (as of March 31, 2024):
- Total loans: $82.3 billion
- 30 days past due loans: 1.4% of total
- Average loans (Q1 2024): $81.7 billion
- Net write-off rate (principal only, Q1 2024): 2.3%
U.S. Small Business Card Member Loans (as of March 31, 2024):
- Total loans: $27.6 billion
- 30 days past due loans: 1.5% of total
- Average loans (Q1 2024): $26.6 billion
- Net write-off rate (principal only, Q1 2024): 2.3%
Total Card Member Loans (U.S. Consumer + Small Business):
- Total loans: $109.9 billion
American Express Credit Account Master Trust (Lending Trust) Performance:
- Ending total principal balance (March 2024): $25.9 billion
- Annualized default rate, net of recoveries (March 2024): 1.4%
- Total 30+ days delinquent (March 2024): $0.2 billion
Material Changes Versus Prior Period
U.S. Consumer Portfolio:
- Total loans increased from $80.4 billion in February to $82.3 billion in March 2024.
- The 30-day delinquency rate improved slightly from 1.5% in February to 1.4% in March.
- The net write-off rate decreased from 2.4% in February to 2.3% in March.
U.S. Small Business Portfolio:
- Total loans grew from $26.5 billion in February to $27.6 billion in March 2024.
- The 30-day delinquency rate remained stable at 1.5%.
- The net write-off rate increased from 2.3% in February to 2.4% in March.
Lending Trust:
- The annualized default rate improved to 1.4% in March from 1.7% in February.
Guidance, Outlook, and Risks
This filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure of credit performance statistics. The report notes that the credit performance of the Lending Trust may differ from the total U.S. Consumer or Small Business portfolios due to differences in loan mix, vintage, aging, and calculation mechanics (e.g., end-of-period balances vs. average balances).
Key Facts for Investor Verification
- Verify the trend in net write-off rates for both Consumer and Small Business segments over the next quarter to confirm if the March 2024 figures represent a stabilization or a temporary fluctuation.
- Compare the Lending Trust's annualized default rate (1.4%) against the broader portfolio net write-off rates (2.3%) to understand the impact of securitization on reported credit quality.
- Monitor the 30-day delinquency rates, which remained low (1.4% - 1.5%) despite the increase in total loan balances.
- Confirm that the "preliminary" nature of the data does not require subsequent adjustments in the official 10-Q filing.