American Express 8-K

Summary

Monthly U.S. card credit-performance disclosure. July delinquency was steady or lower across the two portfolios, while principal-only net write-offs rose for U.S. Consumer vs June and fell for U.S. Small Business. The reported portfolios cover balances held for investment.

Key Figures

• U.S. Consumer: July total balances $113.1B and average balances $113.5B; 30+ days past due was 1.1%, unchanged from June and May. Principal-only net write-off rate was 1.7%, vs 1.4% in June and 2.0% in May.
• U.S. Small Business: July total balances $46.1B and average balances $46.0B; 30+ days past due was 1.3%, vs 1.4% in June and May. Principal-only net write-off rate was 2.6%, vs 2.3% in June and 2.6% in May.
• Combined U.S. Consumer and Small Business balances held for investment were $159.2B in July, vs $159.7B in June and $160.5B in May. June’s sale of previously written-off balances reduced the reported net write-off rates by approximately 0.3 percentage points for Consumer and 0.1 percentage points for Small Business.
• Lending Trust, which covers securitized revolve-eligible balances: July ending principal was $24.9B, defaulted amount $40M, annualized default rate net of recoveries 1.1%, and 30+ days delinquent $0.2B. The default rate was 0.7% in June and 1.2% in May; June reflected proceeds from the card-balance sale.

Investor Takeaways

• Subsequent monthly credit statistics will show whether the Consumer write-off increase vs June and the lower Small Business delinquency rate persist.