Summary
This 8-K filing from American Express Co. (AXP) on August 15, 2012, provides updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for the months ending May 31, June 30, and July 31, 2012. The report aims to offer investors additional insight into the credit quality of the company's lending portfolio, supplementing information provided in the American Express Credit Account Master Trust's Form 10-D filings. The data indicates relative stability in key credit metrics. Total cardmember loans remained largely consistent, hovering around $52.5 billion. Crucially, the 30-day past due delinquency rate held steady at 1.2% across the reported months. Furthermore, the net write-off rate for principal, which excludes interest and fees, showed improvement or stability, decreasing from 2.2% in May to 2.0% in June and remaining at 2.0% in July. These figures suggest that American Express was managing credit risk effectively during this period.
Key Highlights
- 1American Express provided updated delinquency and write-off statistics for its U.S. Card Services segment for May, June, and July 2012.
- 2Total cardmember loans in the USCS segment remained stable, averaging around $52.5 billion across the three months.
- 3The 30-day past due delinquency rate for USCS cardmember loans was consistently 1.2% for May, June, and July 2012.
- 4The net write-off rate (principal only) for USCS cardmember loans improved from 2.2% in May to 2.0% in June and remained at 2.0% in July.
- 5The filing clarifies that these USCS statistics include both securitized and non-securitized loans, offering a broader view than the Lending Trust's data alone.
- 6Data for the American Express Credit Account Master Trust shows annualized default rates (net of recoveries) of 2.2%, 2.2%, and 2.0% for its reporting periods ending May 25, June 24, and July 25, 2012, respectively.
- 7The trust also reported a consistent 30+ days delinquent amount of $0.4 billion across these periods.