Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on March 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 February 28, 2022, January 31, 2022, and December 31, 2021.
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 | Feb 28, 2022 | Jan 31, 2022 | Dec 31, 2021 |
|---|---|---|---|
| U.S. Consumer Total Loans ($B) | 56.8 | 56.6 | 59.8 |
| U.S. Consumer 30+ Days Past Due (%) | 0.8% | 0.8% | 0.7% |
| U.S. Consumer Net Write-off Rate (%) | 0.9% | 0.7% | 0.7% |
| U.S. Small Business Total Loans ($B) | 16.9 | 16.6 | 17.0 |
| U.S. Small Business 30+ Days Past Due (%) | 0.6% | 0.5% | 0.5% |
| U.S. Small Business Net Write-off Rate (%) | 0.6% | 0.5% | 0.6% |
| Total Card Member Loans ($B) | 73.7 | 73.2 | 76.9 |
American Express Credit Account Master Trust (Lending Trust) Metrics:
- Ending Principal Balance (Feb 2022): $24.2 billion
- Annualized Default Rate (Feb 2022): 0.8%
- Total 30+ Days Delinquent (Feb 2022): $0.1 billion
Material Changes
Compared to the prior month (January 2022) and the prior year-end (December 2021), the following trends are observed:
- Loan Balances: Total U.S. Consumer loans decreased from $59.8 billion in December 2021 to $56.8 billion in February 2022. Total Small Business loans remained relatively stable, fluctuating between $16.6 billion and $17.0 billion.
- Delinquency: The 30+ days past due rate for U.S. Consumer loans increased slightly from 0.7% in December 2021 to 0.8% in February 2022. Small Business delinquency rose from 0.5% to 0.6% over the same period.
- Write-offs: The U.S. Consumer net write-off rate increased from 0.7% in January 2022 to 0.9% in February 2022. The Small Business rate increased from 0.5% to 0.6%.
Outlook, Risks, and Contingencies
The filing notes that the statistics provided are additional to data reported by the American Express Credit Account Master Trust (Lending Trust) in its monthly Form 10-D reports. Management highlights that the Lending Trust portfolio does not possess identical characteristics to 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). Consequently, the credit performance of the Lending Trust may vary month-to-month compared to the broader portfolio statistics presented in this filing.
Investor Verification Checklist
- Verify the trend in net write-off rates for U.S. Consumer loans, which rose to 0.9% in February 2022.
- Confirm the decline in total U.S. Consumer loan balances from $59.8 billion (Dec 2021) to $56.8 billion (Feb 2022).
- Review the corresponding Form 10-D filings for the American Express Credit Account Master Trust to compare Lending Trust performance against the broader portfolio metrics.
- Monitor the divergence between the Lending Trust annualized default rate (0.8% in Feb 2022) and the broader portfolio net write-off rates.