How are the credit performance metrics trending?

Delinquency rates (30 days past due) remained stable at 1.0%. However, the net write-off rate, which reflects actual losses on principal, showed a slight increasing trend, moving from 1.2% to 1.4% over the three-month period. Total loan balances in the USCS segment also grew during this time.

What is the difference between the USCS total portfolio data and the Lending Trust data?

The USCS total portfolio data includes all Card Member loans, both securitized and non-securitized. The Lending Trust data specifically pertains to securitized loans. Differences in loan characteristics, business mix (e.g., small business loans in the non-securitized portion), and calculation methodologies can cause these two sets of data to diverge.

Should investors be concerned about the rising net write-off rate?

While the net write-off rate increased slightly, it remained within a range that may be considered typical for credit card portfolios. Investors should monitor this trend in future filings. The stability of the 30-day past due rate suggests that early-stage delinquencies are under control. Further analysis of the reasons for the write-off increase and the overall economic environment would be prudent.

AXP 8-K: Regulation FD — Dec 15, 2014

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

The main purpose of this filing is to furnish investors with updated delinquency and write-off statistics for American Express's U.S. Card Services operating segment for the months of September, October, and November 2014. This provides more timely credit performance information than typically reported in regular financial statements.

Summary

This 8-K filing by American Express Company (AXP) on December 15, 2014, provides updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for the months of September, October, and November 2014. The company is furnishing this information to offer investors a more comprehensive view of credit performance. While overall loan balances in the USCS segment showed a slight increase, trending from $58.0 billion to $59.9 billion over the three months, key credit metrics remained relatively stable. The 30-day past due rate held consistently at 1.0%, indicating a steady level of early-stage delinquencies. However, the net write-off rate, which excludes interest and fees, saw a modest upward trend, rising from 1.2% to 1.4% during the same period.

Key Highlights

1American Express is providing updated credit performance data for its U.S. Card Services segment for September, October, and November 2014.
2Total Card Member loans in the USCS segment increased from $58.0 billion in September to $59.9 billion in November 2014.
3The 30-day past due rate for Card Member lending remained stable at 1.0% across the reported months.
4The net write-off rate (principal only) for the USCS segment showed a slight upward trend, moving from 1.2% in September to 1.4% in November 2014.
5The filing also includes data for the American Express Credit Account Master Trust, showing consistent annualized default rates and 30+ day delinquency figures.
6The company clarifies that the USCS total portfolio statistics include both securitized and non-securitized loans, which may differ from the Lending Trust data due to various factors such as loan mix and calculation methodologies.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Dec 15, 2014)

Summary

Key Highlights

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