Business Context and Reporting Period
This Form 8-K filing by American Express Company (AXP) was submitted on March 15, 2021, under Item 7.01 Regulation FD Disclosure. The report 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 February 28, 2021, January 31, 2021, and December 31, 2020.
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 | Feb 28, 2021 | Jan 31, 2021 | Dec 31, 2020 |
|---|---|---|---|
| U.S. Consumer Total Loans ($B) | 47.5 | 48.7 | 51.3 |
| U.S. Consumer 30+ Days Past Due (%) | 1.0% | 1.0% | 1.0% |
| U.S. Consumer Net Write-off Rate (%) | 1.4% | 1.3% | 1.6% |
| U.S. Small Business Total Loans ($B) | 12.8 | 12.9 | 12.8 |
| U.S. Small Business 30+ Days Past Due (%) | 0.6% | 0.7% | 0.7% |
| U.S. Small Business Net Write-off Rate (%) | 1.0% | 1.4% | 1.5% |
| Total Card Member Loans ($B) | 60.4 | 61.6 | 64.1 |
American Express Credit Account Master Trust (Lending Trust) Metrics:
- Ending Total Principal Balance (Feb 2021): $22.6 billion
- Annualized Default Rate, Net of Recoveries (Feb 2021): 1.2%
- Total 30+ Days Delinquent (Feb 2021): $0.1 billion
Material Changes Versus Prior Period
- Loan Balances: Total U.S. Consumer and Small Business Card Member loans decreased from $64.1 billion in December 2020 to $60.4 billion in February 2021.
- Consumer Write-offs: The net write-off rate for U.S. Consumer loans increased slightly to 1.4% in February 2021 from 1.3% in January 2021, though it remains lower than the 1.6% rate in December 2020.
- Small Business Performance: The net write-off rate for U.S. Small Business loans improved significantly, dropping to 1.0% in February 2021 from 1.4% in January 2021 and 1.5% in December 2020. The 30+ days past due rate also improved to 0.6% from 0.7% in the prior two months.
- Lending Trust: The annualized default rate for the Lending Trust remained stable at 1.2% in February 2021, matching the December 2020 rate and slightly higher than the 1.1% rate in January 2021.
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. 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., end-of-period balances vs. average balances).
Key Facts for Investor Verification
- Verify the trend in U.S. Small Business net write-off rates, which showed improvement in February 2021.
- Confirm the stability of U.S. Consumer delinquency rates at 1.0% across all three reported months.
- Review the discrepancy between total portfolio loan balances ($60.4B) and the Lending Trust principal balance ($22.6B) to understand the securitization mix.
- Note that net write-off rates are calculated based on principal only, excluding interest and fees.