Summary
This 8-K filing from American Express (AXP) provides an update on the credit performance of its U.S. Card Services (USCS) operating segment for the periods ending January 31, February 28, and March 31, 2013. The primary focus is on delinquency and write-off rates for the company's cardmember lending portfolio. Investors should note the preliminary nature of the March 2013 data. The report indicates relatively stable credit quality, with 30-day delinquency rates holding at 1.3% for January and February, and slightly decreasing to 1.2% in March. The net write-off rate for principal only remained consistent at 1.9% in January and then ticked up to 2.0% for both February and March, and for the three months ended March 31, 2013. These figures suggest a manageable level of credit risk for the USCS segment during the reported period.
Key Highlights
- 1Disclosure of preliminary delinquency and write-off statistics for American Express's U.S. Card Services (USCS) segment for January, February, and March 2013.
- 2Total cardmember loans in the USCS portfolio were $53.9 billion (January), $52.4 billion (February), and $53.6 billion (March).
- 330 days past due loans as a percentage of total loans remained stable at 1.3% in January and February, declining to 1.2% in March.
- 4The net write-off rate (principal only) was 1.9% in January and increased slightly to 2.0% for February, March, and the first quarter of 2013.
- 5The filing also provides credit performance data for the American Express Credit Account Master Trust, showing annualized default rates ranging from 2.0% to 2.4% over the three most recent reporting periods.
- 6Management notes that the USCS total portfolio statistics may differ from the Lending Trust's reported data due to variations in loan mix, securitization, and calculation methodologies.