Business Context and Reporting Period
This Form 8-K filing by American Express Company, dated February 15, 2019, serves as a Regulation FD disclosure. It provides 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) for the months ended January 31, 2019, December 31, 2018, and November 30, 2018.
Key Financial Metrics
U.S. Consumer Card Member Loans
- Total Loans (Jan 2019): $58.3 billion
- 30+ Days Past Due: 1.5% of total loans
- Average Loans (Jan 2019): $59.1 billion
- Net Write-off Rate (Principal Only): 2.2%
U.S. Small Business Card Member Loans
- Total Loans (Jan 2019): $12.2 billion
- 30+ Days Past Due: 1.3% of total loans
- Average Loans (Jan 2019): $12.2 billion
- Net Write-off Rate (Principal Only): 1.8%
Combined U.S. Card Member Loans
- Total Loans (Jan 2019): $70.5 billion
American Express Credit Account Master Trust (Lending Trust)
- Ending Total Principal Balance (Jan 2019): $30.9 billion
- Annualized Default Rate (Net of Recoveries): 1.2%
- Total 30+ Days Delinquent: $0.3 billion
Material Changes Versus Prior Period
Comparing January 2019 to December 2018:
- U.S. Consumer Portfolio: Total loans decreased from $59.9 billion to $58.3 billion. The 30+ days past due ratio increased slightly from 1.4% to 1.5%. The net write-off rate remained stable at 2.2%.
- U.S. Small Business Portfolio: Total loans increased slightly from $12.1 billion to $12.2 billion. The 30+ days past due ratio remained flat at 1.3%. The net write-off rate increased from 1.7% to 1.8%.
- Lending Trust: The ending principal balance decreased from $32.2 billion to $30.9 billion. The annualized default rate increased from 1.1% to 1.2%.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the disclosure of credit performance statistics. The document 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., use of end-of-period balances versus average balances).
Investor Verification Checklist
- Verify the trend in net write-off rates for both Consumer and Small Business segments over the next quarter to confirm if the slight uptick in January 2019 is a seasonal anomaly or a structural shift.
- Compare the Lending Trust default rate (1.2%) against the broader portfolio write-off rates to assess the quality of securitized assets versus retained assets.
- Monitor the total loan balance contraction in the U.S. Consumer segment ($58.3B vs $59.9B) to determine if this reflects a strategic reduction in lending or a decline in demand.
- Review the subsequent Form 10-D filings for the Lending Trust to track the consistency of the $0.3 billion delinquent balance.