Summary
This 8-K filing from American Express provides investors with updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for the months of October, November, and December 2009. The company emphasizes its 'managed basis' presentation, which offers a more comprehensive view of its lending portfolio by including securitized loans as if they were still on the balance sheet, distinguishing it from the 'owned basis' which adheres to GAAP. Investors can observe a trend of improving credit quality within the USCS portfolio during this period, as indicated by declining delinquency and net write-off rates on both owned and managed bases.
Key Highlights
- 1American Express is providing updated credit performance metrics for its U.S. Card Services segment for the period ending December 31, 2009.
- 2The filing includes both 'owned basis' (GAAP) and 'managed basis' data, with the latter offering a broader view by including securitized assets.
- 3There is a positive trend of declining 30-day past due loans as a percentage of total loans on both owned and managed bases, decreasing from 4.1% in October to 3.7% in December 2009.
- 4Net write-off rates also show a downward trend for both bases, with the managed basis net write-off rate decreasing from 7.8% in October to 7.1% in December 2009.
- 5Total loans on the owned basis increased from $22.1 billion in October to $23.5 billion in December 2009.
- 6Total loans on the managed basis also grew from $51.2 billion in October to $52.6 billion in December 2009.
- 7The filing also provides data for the American Express Credit Account Master Trust, showing relatively stable annualized default rates and 30+ days delinquent amounts.