Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on December 15, 2023, 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 September 30, October 31, and November 30, 2023. It also includes data for the American Express Credit Account Master Trust (Lending Trust) for the same periods.
Key Financial Metrics
The filing details loan balances, delinquency rates, and net write-off rates for the Company's card member portfolios and the Lending Trust.
| Metric | Nov 2023 | Oct 2023 | Sep 2023 |
|---|---|---|---|
| U.S. Consumer Total Loans ($B) | 81.3 | 79.0 | 77.7 |
| U.S. Consumer 30+ Days Past Due (%) | 1.4% | 1.3% | 1.3% |
| U.S. Consumer Net Write-off Rate (%) | 1.7% | 1.9% | 1.7% |
| U.S. Small Business Total Loans ($B) | 25.9 | 25.6 | 25.2 |
| U.S. Small Business 30+ Days Past Due (%) | 1.3% | 1.3% | 1.2% |
| U.S. Small Business Net Write-off Rate (%) | 2.0% | 2.0% | 1.7% |
| Total Card Member Loans ($B) | 107.2 | 104.6 | 102.9 |
| Lending Trust Ending Principal Balance ($B) | 26.5 | 26.0 | 25.8 |
| Lending Trust Annualized Default Rate (%) | 1.2% | 1.2% | 1.2% |
Note: Net write-off rates are based on principal only, excluding interest and fees.
Material Changes
- Loan Growth: Total Card Member loans increased from $102.9 billion in September to $107.2 billion in November, reflecting steady portfolio expansion.
- Consumer Delinquency: The 30+ days past due rate for U.S. Consumer loans rose slightly to 1.4% in November from 1.3% in the prior two months.
- Consumer Write-offs: The net write-off rate for U.S. Consumer loans improved to 1.7% in November, down from 1.9% in October.
- Small Business Delinquency: The 30+ days past due rate for U.S. Small Business loans increased marginally to 1.3% in November from 1.2% in September.
- Small Business Write-offs: The net write-off rate for U.S. Small Business loans increased to 2.0% in November and October, up from 1.7% in September.
- Lending Trust Stability: The Lending Trust maintained a consistent annualized default rate of 1.2% across all three months.
Guidance, Outlook, and Risks
This 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 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).
Investor Verification Checklist
- Verify the trend in U.S. Small Business net write-off rates, which have risen to 2.0% for two consecutive months.
- Compare the Lending Trust default rate (1.2%) against the broader portfolio write-off rates to assess the impact of securitization on reported credit quality.
- Monitor the slight uptick in 30+ days past due rates for both Consumer (1.4%) and Small Business (1.3%) segments in November.
- Confirm that the reported net write-off rates exclude interest and fees, as stated in the filing footnotes.