Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on May 15, 2023, under Item 7.01 (Regulation FD Disclosure). The report provides monthly delinquency and write-off statistics for the U.S. Consumer and U.S. Small Business Card Member lending portfolios for the months ended February 28, March 31, and April 30, 2023. It also includes credit performance data for the American Express Credit Account Master Trust (Lending Trust) for the same periods.
Key Financial Metrics
U.S. Consumer Card Member Loans (April 2023):
- Total loans: $73.8 billion
- 30 days past due: 1.1% of total
- Average loans: $72.9 billion
- Net write-off rate (principal only): 1.5%
U.S. Small Business Card Member Loans (April 2023):
- Total loans: $23.5 billion
- 30 days past due: 1.1% of total
- Average loans: $23.3 billion
- Net write-off rate (principal only): 1.4%
Total Card Member Loans (U.S. Consumer + Small Business):
- April 2023: $97.3 billion
- March 2023: $95.0 billion
- February 2023: $92.7 billion
Lending Trust Performance (April 2023):
- Ending total principal balance: $26.1 billion
- Defaulted amount: $0.03 billion
- Annualized default rate (net of recoveries): 1.0%
- Total 30+ days delinquent: $0.2 billion
Material Changes Versus Prior Period
Loan Balances: Total Card Member loans increased from $92.7 billion in February to $97.3 billion in April, reflecting steady growth in the portfolio.
Delinquency Rates: The 30 days past due rate remained stable at 1.1% for both U.S. Consumer and U.S. Small Business portfolios across all three months reported.
Write-off Rates:
- U.S. Consumer: Net write-off rate increased to 1.5% in April from 1.4% in February, with a peak of 1.7% in March.
- U.S. Small Business: Net write-off rate rose to 1.4% in April and March from 1.1% in February.
Lending Trust: The annualized default rate improved slightly to 1.0% in April from 1.1% in March. The defaulted amount decreased to $0.03 billion in April from $0.04 billion in March.
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 performance 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).
Key Facts for Investor Verification
- Verify the trend in net write-off rates for U.S. Small Business loans, which increased from 1.1% in February to 1.4% in April.
- Confirm the stability of the 30 days past due rate at 1.1% across both consumer and small business segments despite rising write-offs.
- Review the distinction between the total portfolio statistics and the Lending Trust statistics to understand the impact of securitization on reported credit metrics.
- Monitor the growth in total Card Member loans, which expanded by $4.6 billion over the three-month period.