Business Context and Reporting Period
This Form 8-K is a current report filed by American Express Company on July 15, 2019. The filing provides Regulation FD disclosure regarding delinquency and write-off statistics for the U.S. Consumer Card Member and U.S. Small Business Card Member lending portfolios. The data covers the months ended April 30, May 31, and June 30, 2019, as well as the three-month period ended June 30, 2019.
Key Financial Metrics
The filing details credit performance metrics for the U.S. Consumer and Small Business segments, as well as the American Express Credit Account Master Trust (Lending Trust).
U.S. Consumer Card Member Loans (Three Months Ended June 30, 2019)
- Total Loans: $59.5 billion
- Average Loans: $58.8 billion
- 30 Days Past Due: 1.4% of total loans
- Net Write-off Rate (Principal Only): 2.3%
U.S. Small Business Card Member Loans (Three Months Ended June 30, 2019)
- Total Loans: $13.2 billion
- Average Loans: $12.9 billion
- 30 Days Past Due: 1.3% of total loans
- Net Write-off Rate (Principal Only): 1.8%
Combined U.S. Card Member Loans
- Total Loans: $72.6 billion
American Express Credit Account Master Trust (June 2019)
- Ending Total Principal Balance: $30.6 billion
- Defaulted Amount: $0.05 billion
- Annualized Default Rate (Net of Recoveries): 1.5%
- Total 30+ Days Delinquent: $0.3 billion
Material Changes Versus Prior Period
Comparing the month ended June 30, 2019, to May 31, 2019:
- U.S. Consumer Net Write-off Rate: Improved from 2.5% in May to 2.2% in June.
- U.S. Small Business Net Write-off Rate: Improved from 2.0% in May to 1.7% in June.
- Lending Trust Default Rate: Improved from 1.6% in May to 1.5% in June.
- Delinquency Rates: Remained stable at 1.4% for Consumer and 1.3% for Small Business across April, May, and June.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure context. However, the text notes that credit performance statistics for 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).
Important Facts for Investor Verification
- Verify the trend in net write-off rates, which showed improvement in June 2019 for both Consumer and Small Business segments compared to May.
- Note the distinction between the total portfolio statistics and the Lending Trust statistics, as the latter may not reflect identical loan characteristics.
- Confirm that the reported write-off rates are based on principal only, excluding interest and fees.
- Observe that 30-day delinquency rates remained flat at 1.4% (Consumer) and 1.3% (Small Business) for three consecutive months.