What specific credit performance data is American Express disclosing in this 8-K?

American Express is disclosing delinquency and write-off statistics for its U.S. Card Services operating segment. This includes the total loan balance, the percentage of loans 30 days past due, and the net write-off rate (principal only) for the months of September, October, and November 2011. It also provides data for the American Express Credit Account Master Trust for its August, September, and October reporting periods.

Why is American Express providing this information separately from its regular financial reports?

This 8-K filing is furnished to provide investors with more timely information regarding credit performance, supplementing data that may be reported in other SEC filings like Form 10-D. The company notes that the USCS total portfolio characteristics may differ from those of the securitized loans in the Lending Trust.

Are the credit metrics showing signs of significant deterioration?

Based on the data provided, the credit metrics appear relatively stable. The 30-day delinquency rate remained constant at 1.5%. The net write-off rate saw a very slight increase from 2.3% to 2.4% over the three months, which is a modest movement. The Lending Trust data also shows consistent performance with minor fluctuations in the default rate.

What is the difference between the USCS total portfolio data and the Lending Trust data?

The USCS total portfolio data represents the aggregate of both securitized and non-securitized cardmember loans. The Lending Trust data pertains only to securitized loans. The company notes these portfolios may have different characteristics (e.g., mix of loans, small business loan inclusion in non-securitized portions, calculation methodologies for write-offs) which can lead to variations in reported credit performance between the two.

AXP 8-K: Regulation FD — Dec 15, 2011

Summary

American Express Company (AXP) filed an 8-K on December 15, 2011, to provide updated credit performance statistics for its U.S. Card Services (USCS) operating segment. The filing discloses delinquency and write-off rates for the months ending September 30, October 31, and November 30, 2011. This information is furnished to investors to offer a more current view of the company's loan portfolio health, supplementing data reported in other SEC filings.

Key Highlights

1The filing provides key credit metrics for American Express's U.S. Card Services segment for September, October, and November 2011.
2Total loans in the USCS segment showed a slight increase, growing from $49.9 billion to $51.4 billion over the three-month period.
3The 30 days past due loan rate remained stable at 1.5% for the entire period.
4The net write-off rate (principal only) saw a minor increase from 2.3% in September and October to 2.4% in November.
5The filing also includes credit performance data for the American Express Credit Account Master Trust (Lending Trust) for its August, September, and October 2011 reporting periods.
6The Lending Trust reported a stable ending principal balance and consistent defaulted amounts ($0.1 billion) across the reporting periods.
7The Lending Trust's annualized default rate, net of recoveries, fluctuated between 2.2% and 2.6%.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Dec 15, 2011)

Summary

Key Highlights

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