Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on November 15, 2021, 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 August 31, September 30, and October 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 | Oct 31, 2021 | Sep 30, 2021 | Aug 31, 2021 |
|---|---|---|---|
| U.S. Consumer Total Loans ($B) | 54.8 | 52.6 | 52.5 |
| Consumer 30+ Days Past Due (%) | 0.7% | 0.7% | 0.6% |
| Consumer Net Write-off Rate (%) | 0.6% | 0.4% | 0.6% |
| U.S. Small Business Total Loans ($B) | 15.6 | 14.8 | 14.6 |
| Small Business 30+ Days Past Due (%) | 0.5% | 0.5% | 0.5% |
| Small Business Net Write-off Rate (%) | 0.5% | 0.4% | 0.5% |
| Total Card Member Loans ($B) | 70.4 | 67.5 | 67.1 |
Lending Trust Data (Securitized Loans): For the period ending October 31, 2021, the American Express Credit Account Master Trust reported an ending total principal balance of $24.5 billion, with an annualized default rate (net of recoveries) of 0.5%.
Material Changes
- Loan Growth: Total Card Member loans increased from $67.1 billion in August to $70.4 billion in October 2021.
- Delinquency: The U.S. Consumer 30+ days past due rate rose slightly from 0.6% in August to 0.7% in September and remained at 0.7% in October. Small Business delinquency remained stable at 0.5% across all three months.
- Write-offs: Net write-off rates for both Consumer and Small Business segments increased from 0.4% in September to 0.6% and 0.5% respectively in October, matching August levels.
Outlook, Risks, and Contingencies
The filing notes that the credit performance of the securitized 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). No specific forward-looking guidance or management commentary regarding future economic conditions is provided in this specific disclosure.
Investor Verification Checklist
- Verify the trend of the U.S. Consumer net write-off rate, which fluctuated between 0.4% and 0.6% over the three-month period.
- Confirm the distinction between total portfolio statistics and the securitized Lending Trust data, as calculation methodologies differ.
- Monitor the slight increase in U.S. Consumer delinquency rates (0.6% to 0.7%) for potential credit quality deterioration.
- Review the corresponding Form 10-D filings for the Lending Trust for granular data on defaulted amounts and recoveries.