Summary
This 8-K filing by American Express Company (AXP) on September 15, 2011, provides investors with updated credit performance metrics for its U.S. Card Services (USCS) operating segment for the months of June, July, and August 2011. The report details delinquency and write-off rates for its cardmember lending portfolio, offering insights into the credit quality of its loan book. Key data points include total loans, 30-day past due percentages, and net write-off rates. Additionally, the filing provides comparative data from the American Express Credit Account Master Trust, highlighting potential differences in reporting methodologies and portfolio composition. Investors should note that the USCS total portfolio figures encompass both securitized and non-securitized loans, while the Lending Trust data pertains specifically to securitized assets.
Key Highlights
- 1American Express is voluntarily providing updated delinquency and write-off statistics for its U.S. Card Services (USCS) segment.
- 2Total cardmember loans in the USCS portfolio remained relatively stable, growing slightly from $49.9 billion in June to $50.6 billion in August 2011.
- 3The 30-day past due loan rate for the USCS total portfolio was consistently low, at 1.5% for June and July, and slightly improved to 1.4% in August 2011.
- 4The net write-off rate for the USCS total portfolio, on a principal-only basis, was also stable, hovering around 2.7% to 2.8% during the reported months.
- 5The filing clarifies that the USCS total portfolio includes both securitized and non-securitized loans, offering a broader view of credit performance than the Lending Trust data alone.
- 6Data for the American Express Credit Account Master Trust shows an annualized default rate of 2.8% to 2.9% and a 30+ day delinquent amount of $0.5 billion across the reporting periods.
- 7Differences in reporting periods and loan characteristics between the USCS total portfolio and the Lending Trust are noted, impacting direct month-to-month comparisons.