Summary
This 8-K filing from American Express (AXP) provides an update on credit performance metrics for its U.S. Card Services (USCS) operating segment as of August 31, 2013, and also includes data for its American Express Credit Account Master Trust. The information offered is primarily statistical, detailing delinquency and write-off rates for the lending portfolio. Investors should note that the USCS portfolio showed a slight improvement in credit quality during the period, with both the 30-day delinquency rate and the net write-off rate decreasing in August. The total loan balance in USCS also saw a modest increase. The filing also offers comparative data from the securitized Lending Trust, highlighting that while generally aligned, the two datasets can have differing characteristics and reporting periods, which may lead to month-to-month variations.
Key Highlights
- 1American Express is providing updated delinquency and write-off statistics for its U.S. Card Services (USCS) segment for June, July, and August 2013.
- 2For the USCS total portfolio, the 30-day past due loan rate improved, decreasing from 1.1% in June/July to 1.0% in August 2013.
- 3The net write-off rate (principal only) for USCS also showed a positive trend, declining from 1.9% in June to 1.7% in August 2013.
- 4Total cardmember lending in the USCS segment increased slightly from $54.6 billion in June/July to $55.0 billion by the end of August 2013.
- 5The filing also presents data for the American Express Credit Account Master Trust (Lending Trust), indicating a steady annualized default rate of 1.8% to 2.0% and a consistent 30+ days delinquent amount of $0.3 billion for the reporting periods ending in June, July, and August 2013.
- 6The company clarifies that the USCS total portfolio data and the Lending Trust data may not be directly comparable due to differences in loan mix, securitization characteristics, and reporting methodologies.