Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on May 16, 2022, under Item 7.01 Regulation FD Disclosure. The report provides monthly delinquency and write-off statistics for the U.S. Consumer Card Member and U.S. Small Business Card Member lending portfolios for the months ended February 28, March 31, and April 30, 2022.
Key Financial Metrics
The filing details credit performance metrics for total loans, delinquency rates, and net write-off rates (principal only) for the specified periods.
| Metric | April 30, 2022 | March 31, 2022 | February 28, 2022 |
|---|---|---|---|
| U.S. Consumer Card Member Loans | |||
| Total Loans ($ Billions) | $60.5 | $59.1 | $56.8 |
| 30+ Days Past Due (%) | 0.7% | 0.8% | 0.8% |
| Net Write-off Rate (%) | 0.9% | 0.8% | 0.9% |
| U.S. Small Business Card Member Loans | |||
| Total Loans ($ Billions) | $18.6 | $18.1 | $16.9 |
| 30+ Days Past Due (%) | 0.5% | 0.6% | 0.6% |
| Net Write-off Rate (%) | 0.6% | 0.7% | 0.6% |
| Total Card Member Loans (Combined) | |||
| Total Loans ($ Billions) | $79.2 | $77.2 | $73.7 |
American Express Credit Account Master Trust (Lending Trust) Metrics:
- Ending Principal Balance (April 2022): $25.3 billion
- Annualized Default Rate (April 2022): 0.7%
- Total 30+ Days Delinquent (April 2022): $0.1 billion
Material Changes
From February to April 2022, total Card Member loans increased from $73.7 billion to $79.2 billion. Delinquency rates for both U.S. Consumer and Small Business segments improved slightly in April compared to the prior two months, with Consumer 30+ days past due dropping to 0.7% and Small Business dropping to 0.5%. Net write-off rates for Consumer loans rose slightly to 0.9% in April from 0.8% in March, while Small Business write-offs decreased to 0.6% from 0.7%.
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 statistics. The document notes that the credit performance of the Lending Trust may differ from the total portfolio statistics 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 net write-off rates for the U.S. Consumer segment, which increased to 0.9% in April.
- Confirm the distinction between the total portfolio statistics and the Lending Trust (securitized) statistics, as calculation methodologies differ.
- Monitor the growth in total loan balances, which increased by $5.5 billion over the three-month period.
- Review subsequent Form 10-D filings for the Lending Trust to track the annualized default rate trend.