Summary
This 8-K filing from American Express (AXP) provides preliminary credit performance statistics for its U.S. Card Services (USCS) operating segment for the months of October, November, and December 2010, and the fourth quarter of 2010. Investors should note the downward trend in both delinquency rates (30+ days past due) and net write-off rates for the total USCS portfolio during this period, suggesting improving credit quality. The filing also offers supplementary data on the American Express Credit Account Master Trust, a securitized pool of cardmember loans. While this trust's performance is reported separately, the overall USCS portfolio data indicates a positive credit environment as of year-end 2010. The company is providing this information under Regulation FD to offer additional insights beyond its standard SEC filings.
Key Highlights
- 1American Express (AXP) is providing preliminary delinquency and write-off statistics for its U.S. Card Services (USCS) segment for Q4 2010.
- 2Total USCS loans grew from $49.1 billion in October to $51.6 billion by December 2010.
- 3The 30-day delinquency rate for the USCS portfolio showed a declining trend, moving from 2.3% in October to 2.1% by December 2010.
- 4Net write-off rates for the USCS portfolio also improved, decreasing from 4.7% in October to 4.1% in December 2010, with an average of 4.4% for the quarter.
- 5The filing distinguishes between the total USCS portfolio (including securitized and non-securitized loans) and the specific performance of the American Express Credit Account Master Trust.
- 6Data for the Credit Account Master Trust shows a relatively stable annualized default rate (net of recoveries) around 4.2%-4.6% for the period ending in late 2010.
- 7The information is furnished under Regulation FD to provide additional, timely insights into the company's credit portfolio.