Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on February 15, 2022, under Item 7.01 Regulation FD Disclosure. The report provides 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 January 31, 2022, December 31, 2021, and November 30, 2021. 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
- Total Loans (Jan 2022): $56.6 billion
- 30+ Days Past Due: 0.8% of total loans
- Average Loans (Jan 2022): $58.2 billion
- Net Write-off Rate (Principal Only): 0.7%
U.S. Small Business Card Member Loans
- Total Loans (Jan 2022): $16.6 billion
- 30+ Days Past Due: 0.5% of total loans
- Average Loans (Jan 2022): $16.8 billion
- Net Write-off Rate (Principal Only): 0.5%
Lending Trust Performance
- Ending Total Principal Balance (Jan 2022): $24.4 billion
- Defaulted Amount: $0.02 billion
- Annualized Default Rate (Net of Recoveries): 0.5%
- Total 30+ Days Delinquent: $0.1 billion
Material Changes Versus Prior Period
- Consumer Portfolio: Total loans decreased from $59.8 billion in December 2021 to $56.6 billion in January 2022. The 30+ days past due ratio increased slightly from 0.7% to 0.8%, and the net write-off rate rose from 0.7% to 0.7% (stable from Dec, up from 0.5% in Nov).
- Small Business Portfolio: Total loans declined from $17.0 billion in December 2021 to $16.6 billion in January 2022. The 30+ days past due ratio remained stable at 0.5%. The net write-off rate improved to 0.5% from 0.6% in December.
- Lending Trust: The ending principal balance decreased from $25.6 billion in December 2021 to $24.4 billion in January 2022. The annualized default rate improved to 0.5% from 0.6% in December.
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 month-to-month 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 the U.S. Consumer net write-off rate, which has increased from 0.5% in November 2021 to 0.7% in January 2022.
- Confirm the decline in total loan balances for both Consumer and Small Business segments between December 2021 and January 2022.
- Review the distinction between the Lending Trust statistics and the total portfolio statistics to understand potential variances in credit quality reporting.
- Check subsequent filings for updated delinquency trends given the slight increase in the Consumer 30+ days past due ratio.