Business Context and Reporting Period
This Form 8-K filing by American Express Company, dated September 17, 2018, serves as a Regulation FD disclosure. It 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 June 30, July 31, and August 31, 2018.
Key Financial Metrics
U.S. Consumer Card Member Loans
- Total Loans (Aug 31, 2018): $55.6 billion
- 30 Days Past Due: 1.3% of total loans (consistent across June, July, and August)
- Net Write-off Rate (Principal Only): 2.2% for July and August 2018; 2.0% for June 2018
U.S. Small Business Card Member Loans
- Total Loans (Aug 31, 2018): $11.8 billion
- 30 Days Past Due: 1.1% for July and August 2018; 1.2% for June 2018
- Net Write-off Rate (Principal Only): 1.7% for August 2018; 2.0% for July 2018; 1.6% for June 2018
Combined U.S. Card Member Loans
- Total Loans (Aug 31, 2018): $67.4 billion
American Express Credit Account Master Trust (Lending Trust)
- Ending Principal Balance (Aug 31, 2018): $23.0 billion
- Annualized Default Rate (Net of Recoveries): 1.5% for July and August 2018; 1.4% for June 2018
- Total 30+ Days Delinquent: $0.2 billion for all three months
Material Changes
From June to August 2018, total U.S. Consumer loans increased from $54.7 billion to $55.6 billion, while U.S. Small Business loans remained relatively stable, fluctuating between $11.6 billion and $11.8 billion. The U.S. Consumer net write-off rate increased slightly from 2.0% in June to 2.2% in July and August. Conversely, the U.S. Small Business net write-off rate improved in August (1.7%) compared to July (2.0%), though it remained higher than the June rate (1.6%). Delinquency rates remained stable for both segments during this period.
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 portfolio statistics 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. Consumer net write-off rates, which rose from 2.0% to 2.2% over the three-month period.
- Confirm the stability of 30-day past due rates at 1.3% for consumers and 1.1% for small businesses in August.
- Review the distinction between the total portfolio statistics and the Lending Trust (securitized) statistics, as calculation methodologies differ.
- Check subsequent filings for any acceleration in delinquency or write-off rates following the August 2018 data.