Business Context and Reporting Period
This Form 8-K filing by American Express Company, dated May 15, 2018, provides Regulation FD disclosure regarding delinquency and write-off statistics. The report covers the Card Member lending portfolios for the U.S. Consumer Services (USCS) and U.S. Small Business segments for the months ended February 28, March 31, and April 30, 2018. It also includes credit performance data for the American Express Credit Account Master Trust (Lending Trust) for the same periods.
Key Financial Metrics
U.S. Consumer Services (USCS) Card Member Loans:
- Total loans as of April 30, 2018: $53.1 billion.
- 30 days past due loans as a percentage of total: 1.3% (April 2018).
- Net write-off rate (principal only): 2.3% (April 2018).
U.S. Small Business Card Member Loans:
- Total loans as of April 30, 2018: $11.3 billion.
- 30 days past due loans as a percentage of total: 1.2% (April 2018).
- Net write-off rate (principal only): 1.9% (April 2018).
Total Card Member Loans (USCS and Small Business):
- Combined total loans as of April 30, 2018: $64.5 billion.
Lending Trust (Securitized Portfolio):
- Ending total principal balance (April 2018): $23.2 billion.
- Annualized default rate, net of recoveries: 1.7% (April 2018).
- Total 30+ days delinquent: $0.2 billion (April 2018).
Note: This filing does not provide data on revenue, profit, cash flow, margins, debt, or liquidity for the company as a whole.
Material Changes Versus Prior Period
USCS Portfolio:
- Total loans increased from $52.7 billion in March to $53.1 billion in April 2018.
- The 30 days past due ratio improved from 1.4% in March to 1.3% in April 2018.
- The net write-off rate increased slightly from 2.2% in March to 2.3% in April 2018.
Small Business Portfolio:
- Total loans remained stable at $11.3 billion from March to April 2018.
- The 30 days past due ratio improved from 1.3% in March to 1.2% in April 2018.
- The net write-off rate increased from 1.8% in March to 1.9% in April 2018.
Lending Trust:
- The annualized default rate increased from 1.6% in March to 1.7% in April 2018.
- Total 30+ days delinquent amounts remained flat at $0.2 billion from March to April 2018.
Guidance, Outlook, and Risks
This filing contains no forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure of credit statistics. The document notes that the credit performance of the Lending Trust may differ from the total USCS or Small Business portfolios due to differences in loan mix, vintage, aging, and calculation mechanics (e.g., end-of-period balances vs. average balances).
Important Facts for Investor Verification
- Verify the trend in net write-off rates for both USCS and Small Business segments, which showed a slight increase in April 2018 compared to March.
- Confirm the distinction between the total loan portfolio statistics and the securitized Lending Trust statistics, as the filing explicitly states they are not identical.
- Monitor the 30 days past due ratios, which showed improvement in April 2018 for both consumer and small business segments.
- Check subsequent Form 10-D filings for the Lending Trust to track the annualized default rate trend.