Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on June 17, 2019, 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 March 31, April 30, and May 31, 2019.
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 | May 31, 2019 | April 30, 2019 | March 31, 2019 |
|---|---|---|---|
| U.S. Consumer Card Member Loans | |||
| Total Loans ($ Billions) | $59.1 | $58.4 | $58.0 |
| 30+ Days Past Due (%) | 1.4% | 1.4% | 1.5% |
| Net Write-off Rate (%) | 2.5% | 2.4% | 2.5% |
| U.S. Small Business Card Member Loans | |||
| Total Loans ($ Billions) | $13.0 | $12.7 | $12.7 |
| 30+ Days Past Due (%) | 1.2% | 1.3% | 1.3% |
| Net Write-off Rate (%) | 2.0% | 1.8% | 1.9% |
| Total Card Member Loans (Combined) | |||
| Total Loans ($ Billions) | $72.0 | $71.1 | $70.8 |
American Express Credit Account Master Trust (Lending Trust) Metrics:
- Ending Principal Balance (May 2019): $30.6 Billion
- Annualized Default Rate (Net of Recoveries): 1.6% (consistent across March, April, and May 2019)
- Total 30+ Days Delinquent: $0.3 Billion (consistent across the three months)
Material Changes
From March to May 2019, total U.S. Card Member loans increased from $70.8 billion to $72.0 billion. Delinquency rates for U.S. Consumer loans improved slightly from 1.5% in March to 1.4% in April and May. Conversely, the net write-off rate for U.S. Small Business loans increased from 1.8% in April to 2.0% in May, following a 1.9% rate in March. The Lending Trust maintained a stable annualized default rate of 1.6% throughout the quarter.
Guidance, Outlook, and Risks
This filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the disclosure of credit statistics. The filing 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 trend in U.S. Small Business net write-off rates, which rose to 2.0% in May 2019.
- Confirm the stability of the Lending Trust's annualized default rate at 1.6% over the three-month period.
- Review the distinction between the total portfolio statistics and the securitized Lending Trust statistics to understand potential variances in credit quality reporting.
- Check subsequent filings for any acceleration in delinquency rates following the May 2019 data point.