Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on September 15, 2021, 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 June 30, July 31, and August 31, 2021.
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 | Aug 31, 2021 | Jul 31, 2021 | Jun 30, 2021 |
|---|---|---|---|
| U.S. Consumer Total Loans ($B) | 52.5 | 52.4 | 51.8 |
| U.S. Consumer 30+ Days Past Due (%) | 0.6% | 0.6% | 0.6% |
| U.S. Consumer Net Write-off Rate (%) | 0.6% | 0.7% | 0.7% |
| U.S. Small Business Total Loans ($B) | 14.6 | 14.7 | 14.5 |
| U.S. Small Business 30+ Days Past Due (%) | 0.5% | 0.4% | 0.4% |
| U.S. Small Business Net Write-off Rate (%) | 0.5% | 0.5% | 0.6% |
| Total Card Member Loans ($B) | 67.1 | 67.1 | 66.2 |
American Express Credit Account Master Trust (Lending Trust) Metrics:
- Ending Principal Balance (Aug 2021): $23.9 billion
- Annualized Default Rate (Aug 2021): 0.4% (down from 0.6% in July and June)
- Total 30+ Days Delinquent: $0.1 billion for all three months
Material Changes
- Consumer Portfolio: Total loans increased slightly from $51.8 billion in June to $52.5 billion in August. The net write-off rate improved from 0.7% in June and July to 0.6% in August. Delinquency rates remained stable at 0.6%.
- Small Business Portfolio: Total loans remained relatively flat, ranging between $14.5 billion and $14.7 billion. The 30+ days past due rate increased slightly to 0.5% in August from 0.4% in the prior two months. The net write-off rate improved to 0.5% in August from 0.6% in June.
- Lending Trust: The annualized default rate improved to 0.4% in August from 0.6% in the previous two months, while the ending principal balance decreased slightly to $23.9 billion.
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 statistics. However, the text 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).
Investor Verification Checklist
- Verify the trend in net write-off rates for the U.S. Consumer portfolio, which showed improvement in August.
- Monitor the slight increase in 30+ days past due loans for the U.S. Small Business segment in August.
- Compare the Lending Trust default rates (0.4% in August) against the broader portfolio write-off rates to understand securitization impacts.
- Confirm that the reported loan balances include both securitized and non-securitized loans, as noted in the disclosure.