AXP

Business Context and Reporting Period

This Form 8-K filing by American Express Company (AXP) was submitted on January 18, 2022, under Item 7.01 Regulation FD Disclosure. The report provides preliminary 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 October 31, November 30, and December 31, 2021, as well as the three-month period ended December 31, 2021.

Key Financial Metrics

The filing focuses on credit performance metrics rather than revenue or profit. Key data points for the three months ended December 31, 2021, include:

• Total U.S. Consumer Card Member Loans: $59.8 billion (ending balance); $56.1 billion (average).
• Total U.S. Small Business Card Member Loans: $17.0 billion (ending balance); $15.9 billion (average).
• Combined Total Card Member Loans: $76.9 billion.
• 30+ Days Past Due (Consumer): 0.7% of total loans.
• 30+ Days Past Due (Small Business): 0.5% of total loans.
• Net Write-off Rate (Consumer): 0.6% (principal only).
• Net Write-off Rate (Small Business): 0.5% (principal only).

For the American Express Credit Account Master Trust (Lending Trust), the ending principal balance was $25.6 billion as of December 31, 2021, with an annualized default rate of 0.6% for the month.

Material Changes Versus Prior Period

Loan balances showed consistent growth across the three-month period:

• Consumer Loans: Increased from $54.8 billion in October to $59.8 billion in December.
• Small Business Loans: Increased from $15.6 billion in October to $17.0 billion in December.
• Delinquency Rates: Remained stable at 0.7% for Consumer and 0.5% for Small Business across October, November, and December.
• Write-off Rates: Consumer net write-off rates fluctuated slightly (0.6% in Oct, 0.5% in Nov, 0.7% in Dec), while Small Business rates remained steady at 0.5% for November and December after 0.5% in October.

Guidance, Outlook, and Risks

The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure of credit performance. The document notes that the credit performance of the Lending Trust may differ from the total portfolio 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 preliminary nature of the December 2021 statistics, as they may be subject to revision in subsequent filings.
• Compare the reported net write-off rates (principal only) against the company's historical full-year averages to assess credit quality trends.
• Review the separate Form 10-D filings for the American Express Credit Account Master Trust to understand the specific performance of securitized assets versus the total portfolio.
• Monitor the stability of the 30+ days past due ratios, which remained flat despite the increase in total loan balances.