Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on February 15, 2024, under Item 7.01 (Regulation FD Disclosure). The report provides delinquency and write-off statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the month ended January 31, 2024, alongside comparative data for December 31, 2023, and November 30, 2023.
Key Financial Metrics
U.S. Consumer and Small Business Card Member Loans
| Metric | Jan 31, 2024 | Dec 31, 2023 | Nov 30, 2023 |
|---|---|---|---|
| Total Loans (Billions) | $107.3 | $109.0 | $107.2 |
| 30+ Days Past Due (% of Total) | 1.5% | 1.4% | 1.4% |
| Net Write-off Rate (Principal Only) | 2.1% | 2.5% | 1.7% |
Segment Breakdown:
- U.S. Consumer: Total loans of $81.1 billion; 30+ days past due at 1.5%; Net write-off rate of 2.1%.
- U.S. Small Business: Total loans of $26.2 billion; 30+ days past due at 1.5%; Net write-off rate of 2.1%.
American Express Credit Account Master Trust (Lending Trust)
| Metric | Jan 2024 | Dec 2023 | Nov 2023 |
|---|---|---|---|
| Ending Principal Balance (Billions) | $25.9 | $27.2 | $26.5 |
| Defaulted Amount (Billions) | $0.04 | $0.05 | $0.04 |
| Annualized Default Rate (Net of Recoveries) | 1.3% | 1.5% | 1.2% |
| Total 30+ Days Delinquent (Billions) | $0.2 | $0.2 | $0.2 |
Material Changes and Commentary
Delinquency Trends: The 30+ days past due ratio for both U.S. Consumer and U.S. Small Business portfolios increased slightly to 1.5% in January 2024 from 1.4% in December 2023.
Write-off Volatility: The U.S. Consumer net write-off rate decreased to 2.1% in January 2024 from 2.5% in December 2023. The filing notes that the December 2023 rate was elevated due to the timing of the Thanksgiving holiday, which delayed the receipt of debt settlement agreements. These settlements were operationally processed as write-offs in December 2023.
Lending Trust Performance: The Lending Trust's annualized default rate improved to 1.3% in January 2024 from 1.5% in December 2023. The filing clarifies that Lending Trust statistics may differ from total portfolio statistics due to differences in loan mix, vintage, and calculation mechanics (end-of-period balances vs. average balances).
Investor Verification Checklist
- Verify the impact of the December 2023 holiday timing on debt settlement write-offs to ensure accurate year-over-year comparisons.
- Monitor the divergence between the Lending Trust default rate (1.3%) and the broader U.S. Consumer/Small Business net write-off rate (2.1%).
- Track the sequential increase in 30+ days past due ratios to 1.5% across both consumer and small business segments.
- Review the total loan balance contraction from $109.0 billion in December to $107.3 billion in January.