Business Context and Reporting Period
This Form 8-K filing by American Express Company (the "Company") dated April 15, 2019, serves as a Regulation FD disclosure. It provides preliminary delinquency and write-off statistics for the U.S. Consumer Card Member lending portfolio (Global Consumer Services Group) and the U.S. Small Business Card Member lending portfolio (Global Commercial Services operating segment). The data covers the months ended January 31, February 28, and March 31, 2019, as well as the three-month period ended March 31, 2019.
Key Financial Metrics
The filing details credit performance metrics for total loans, delinquency rates, and net write-off rates (principal only) for both consumer and small business segments.
| Metric | U.S. Consumer (Mar 2019) | U.S. Small Business (Mar 2019) | Total Combined (Mar 2019) |
|---|---|---|---|
| Total Loans ($ Billions) | $58.0 | $12.7 | $70.8 |
| 30+ Days Past Due (%) | 1.5% | 1.3% | N/A |
| Average Loans ($ Billions) | $57.5 | $12.4 | N/A |
| Net Write-off Rate (%) | 2.5% | 1.9% | N/A |
Three-Month Period Ended March 31, 2019:
- U.S. Consumer: Net write-off rate of 2.4% on average loans of $58.3 billion.
- U.S. Small Business: Net write-off rate of 1.8% on average loans of $12.3 billion.
American Express Credit Account Master Trust (Lending Trust) Data:
- Ending Principal Balance (Mar 2019): $30.4 billion.
- Annualized Default Rate (Mar 2019): 1.6% (net of recoveries).
- Total 30+ Days Delinquent: $0.3 billion.
Material Changes Versus Prior Period
U.S. Consumer Portfolio:
- Net Write-off Rate: Increased from 2.2% in January to 2.4% in February, and further to 2.5% in March 2019.
- Delinquency Rate: Remained stable at 1.5% for 30+ days past due across January, February, and March.
- Total Loans: Fluctuated slightly, ending at $58.0 billion in March compared to $58.3 billion in January.
U.S. Small Business Portfolio:
- Net Write-off Rate: Increased from 1.8% in January to 1.9% in February and March 2019.
- Delinquency Rate: Remained stable at 1.3% for 30+ days past due across the three months.
- Total Loans: Increased from $12.2 billion in January and February to $12.7 billion in March.
Lending Trust:
- Annualized Default Rate: Rose sequentially from 1.2% in January to 1.4% in February, and 1.6% in March 2019.
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 context. However, the Company notes that the credit performance of the Lending Trust may differ 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). The statistics provided are preliminary.
Investor Verification Checklist
- Verify the sequential increase in net write-off rates for both U.S. Consumer (2.2% to 2.5%) and Small Business (1.8% to 1.9%) portfolios over the first quarter of 2019.
- Confirm the stability of 30+ day delinquency rates despite rising write-offs.
- Review the Lending Trust's annualized default rate trend (1.2% to 1.6%) to assess securitized asset performance relative to the broader portfolio.
- Check subsequent filings for final, non-preliminary data to confirm these trends.