What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to furnish investors with updated, preliminary statistics on delinquency and write-off rates for American Express's U.S. Card Services lending portfolio for the months of July, August, and September 2013. This provides timely insights into the credit quality of their loan book.

Are these credit statistics good or bad for American Express?

The reported statistics suggest stable credit performance. The 30-day delinquency rate remained low at 1.0%-1.1%, and the net write-off rate was consistent at 1.7%-1.8%. These figures indicate that, as of September 30, 2013, the company was not experiencing a significant deterioration in credit quality within its U.S. Card Services portfolio.

Why does this filing include data for both the total USCS portfolio and the Lending Trust?

The filing presents data for the total U.S. Card Services (USCS) portfolio, which includes both securitized and non-securitized loans. It also provides data for the American Express Credit Account Master Trust (Lending Trust), which represents only the securitized portion. This distinction is important because the two datasets may have different characteristics and reporting methodologies. Providing both offers investors a more comprehensive understanding of the company's overall credit risk.

What does 'net write-off rate – principal only' mean?

The 'net write-off rate – principal only' refers to the percentage of loans that have been deemed uncollectible and written off, after accounting for any recoveries, specifically based on the original principal amount of the loan. It excludes any interest or fees that may have been due but not collected, providing a focused view on the loss of the principal investment.

AXP 8-K: Regulation FD — Oct 15, 2013

Summary

This 8-K filing from American Express (AXP) provides an update on credit performance metrics for its U.S. Card Services (USCS) segment as of and for the three months ended September 30, 2013. The company is furnishing preliminary delinquency and write-off statistics, offering investors a timely look into the health of its loan portfolio. The data indicates stable credit quality during the period, with key metrics showing little fluctuation. This information is supplementary to previously reported data from the American Express Credit Account Master Trust, providing a more comprehensive view of the overall USCS lending portfolio, including both securitized and non-securitized loans.

Key Highlights

1American Express is providing updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for July, August, and September 2013.
2The total loans in the USCS lending portfolio remained relatively stable, hovering around $54.5 - $55.0 billion.
3The 30-day past due loan rate for the USCS portfolio was consistently at 1.0% or 1.1% for the reported months.
4The net write-off rate (principal only) for the USCS portfolio remained steady at 1.7% for August and September 2013, and was 1.8% for July.
5The filing clarifies that these statistics cover the total USCS portfolio, including both securitized and non-securitized cardmember loans, offering a broader perspective than data solely from the Lending Trust.
6Data for the American Express Credit Account Master Trust shows a consistent annualized default rate of 1.8% for the three most recent monthly reporting periods ending in July, August, and September 2013.

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

Summary

Key Highlights

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