Summary
This 8-K filing from American Express (AXP) on June 13, 2012, provides an update on key performance indicators presented by Vice Chairman Edward Gilligan at the Morgan Stanley Financials Conference. The report details credit performance metrics for the U.S. Cardmember Loan portfolio in May 2012, showing a net write-off rate of 2.2% and a 30-day past due rate of 1.2%. These figures offer insight into the company's credit risk management and asset quality.
Key Highlights
- 1U.S. Cardmember Loan portfolio net write-off rate was 2.2% in May 2012.
- 2U.S. Cardmember Loan portfolio 30 days past due rate was 1.2% in May 2012.
- 3Worldwide billings growth (FX-adjusted) for the quarter to date (through May 31, 2012) was 9-10%.
- 4U.S. billings growth for the quarter to date (through May 31, 2012) was 9-10%.
- 5Billings growth in Q2 2012 to date was slower than Q1 2012 due to the leap year benefit in Q1.
- 6Billings growth was impacted by difficult year-over-year comparisons.
- 7EMEA billings growth (FX-adjusted) was approximately 5% for the quarter to date through May 31, 2012.
Frequently Asked Questions
As of May 2012, the net write-off rate for the U.S. Cardmember Loan portfolio was 2.2%, and the 30-day past due rate was 1.2%. These represent the company's asset quality for its U.S. credit card segment.
For the quarter to date through May 31, 2012, both worldwide and U.S. billings growth, on a foreign exchange (FX) adjusted basis, were in the range of 9-10%. This is a moderation compared to the first quarter of 2012.
The company noted that billings growth in Q2 2012 to date is slower than Q1 2012 partly due to the absence of the leap year's extra day in Q1 and difficult year-over-year comparisons. Additionally, a strengthening U.S. dollar will negatively impact reported growth rates compared to FX-adjusted rates.
In the EMEA region, billings growth on an FX-adjusted basis was approximately 5% for the quarter to date through May 31, 2012.