8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Feb 15, 2012)

Filed February 15, 2012For Securities:AXP

Summary

This 8-K filing from American Express Company (AXP), filed on February 15, 2012, provides updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for the months of November and December 2011, and January 2012. The data offers investors a timely look into the credit quality of AXP's loan portfolio during a period of economic uncertainty. Key metrics, including 30-day past due loan percentages and net write-off rates, are presented for both the total USCS portfolio and the American Express Credit Account Master Trust. Overall, the provided statistics indicate a stable or slightly improving credit performance across the reported periods. The 30-day delinquency rate remained consistently low, and the net write-off rate showed a modest downward trend. While the total USCS portfolio and the securitized trust (Lending Trust) show similar trends, the filing clarifies potential differences in their reporting methodologies and loan characteristics, which investors should consider when interpreting the data. The information is presented to supplement, not replace, data reported in the Lending Trust's 10-D filings.

Key Highlights

  • 1American Express Company (AXP) is furnishing updated credit performance statistics for its U.S. Card Services (USCS) segment.
  • 2The data covers delinquency and write-off rates for the months ending November 30, December 31, 2011, and January 31, 2012.
  • 3For the total USCS portfolio, the 30-day past due loan percentage remained stable at 1.5% in November and decreased to 1.4% in December and January.
  • 4The net write-off rate (principal only) for the USCS portfolio showed a positive trend, decreasing from 2.4% in November to 2.3% in December and 2.2% in January.
  • 5The filing also provides credit performance data for the American Express Credit Account Master Trust, showing a similar downward trend in annualized default rates (2.5% to 2.2%).
  • 6AXP clarifies that the USCS total portfolio includes both securitized and non-securitized loans, and its reporting may differ from the Lending Trust's 10-D filings due to loan mix, vintage, and calculation methodologies.

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