8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jan 15, 2013)

Filed January 15, 2013For Securities:AXP

Summary

This 8-K filing from American Express Co. (AXP) on January 15, 2013, provides investors with updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for the months of October, November, and December 2012, as well as the fourth quarter of 2012. The filing offers a more granular view of credit performance beyond standard reporting. It details total loans, 30-day delinquency rates, and net write-off rates for the USCS portfolio, along with similar metrics for the American Express Credit Account Master Trust. This information is valuable for assessing the company's credit risk management and the health of its loan portfolio, particularly as it pertains to the economic environment of late 2012.

Key Highlights

  • 1American Express (AXP) is providing updated delinquency and write-off statistics for its U.S. Card Services (USCS) segment for October, November, and December 2012.
  • 2The total loan portfolio for USCS grew from $53.3 billion in October to $56.0 billion in December 2012.
  • 3The 30-day past due loan rate for USCS remained stable at 1.2% for November and December 2012, down from 1.3% in October.
  • 4The net write-off rate (principal only) for USCS increased slightly from 1.9% in October to 2.1% in December 2012, averaging 2.0% for the fourth quarter.
  • 5The filing also includes data for the American Express Credit Account Master Trust, showing a stable ending principal balance and a slight fluctuation in annualized default rates.
  • 6The default rate for the Master Trust was 1.9% for the period ending October 25, 2012, and 2.1% for the period ending December 25, 2012.
  • 7These statistics are furnished to provide additional information beyond regular SEC filings like the Form 10-D.

Frequently Asked Questions

This filing provides delinquency and write-off statistics for the months ended October 31, November 30, and December 31, 2012, and also for the three months ended December 31, 2012 (the fourth quarter of 2012).

The USCS data represents the entire portfolio of cardmember loans for American Express's U.S. Card Services segment, including both securitized and non-securitized loans. The Master Trust data pertains specifically to loans that have been securitized through the Lending Trust. The characteristics and credit performance of these two sets of loans may differ due to factors such as loan mix, vintage, and specific calculation methodologies.

This metric indicates the rate at which loans are being written off as unrecoverable, based solely on the principal amount of the loan and excluding any accrued interest or fees. An increase in this rate could signal higher credit losses.

For December 31, 2012, the statistics are noted as 'Preliminary'.