American Express Company Form 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) was filed by American Express Company on September 15, 2022, pursuant to Item 7.01 (Regulation FD Disclosure). The filing 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 June 30, July 31, and August 31, 2022. 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 (August 31, 2022):
- Total loans: $65.9 billion
- Average loans: $65.5 billion
- 30 days past due loans: 0.8% of total
- Net write-off rate (principal only): 0.8%
U.S. Small Business Card Member Loans (August 31, 2022):
- Total loans: $20.2 billion
- Average loans: $20.1 billion
- 30 days past due loans: 0.7% of total
- Net write-off rate (principal only): 0.7%
Total Card Member Loans (U.S. Consumer and Small Business):
- Total loans: $86.1 billion
U.S. Credit Account Master Trust (August 2022):
- Ending total principal balance: $25.8 billion
- Defaulted amount: $0.03 billion
- Annualized default rate (net of recoveries): 0.5%
- Total 30+ days delinquent: $0.1 billion
Material Changes Versus Prior Periods
U.S. Consumer Portfolio:
- Total loans increased from $63.7 billion (June) to $65.9 billion (August).
- 30 days past due percentage increased from 0.7% (June/July) to 0.8% (August).
- Net write-off rate remained stable at 0.8% across all three months.
U.S. Small Business Portfolio:
- Total loans increased from $19.4 billion (June) to $20.2 billion (August).
- 30 days past due percentage increased from 0.6% (June/July) to 0.7% (August).
- Net write-off rate increased from 0.6% (June/July) to 0.7% (August).
Lending Trust:
- Ending principal balance remained relatively flat, ranging between $25.8 billion and $25.9 billion.
- Annualized default rate fluctuated between 0.5% and 0.6%.
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 delinquency rates (30 days past due) which rose slightly for both Consumer and Small Business segments in August 2022.
- Confirm the stability of net write-off rates, which held steady for Consumer loans but ticked up slightly for Small Business loans in August.
- Review the distinction between the total portfolio statistics and the Lending Trust statistics, as the latter may not be directly comparable due to calculation differences.
- Monitor the growth in total loan balances, which increased sequentially for both Consumer and Small Business segments through August 2022.