Summary
This 8-K filing by American Express Company (AXP) provides updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for the months ending October 31, November 30, and December 31, 2014. The data offers investors a glimpse into the credit quality of the company's U.S. card member lending portfolio. The key takeaway is the stability in these credit metrics during the reported period, suggesting a consistent and managed risk environment for AXP's lending operations as 2014 concluded.
Key Highlights
- 1Delinquency rate for 30+ days past due loans remained stable at 1.0% of total loans throughout the reporting period (October, November, December 2014).
- 2Net write-off rate (principal only) for the USCS lending portfolio was also consistent, reported at 1.3% for October and December 2014, and slightly higher at 1.4% in November 2014.
- 3Total card member lending in the USCS segment showed a modest increase, rising from $58.3 billion in October to $62.6 billion by the end of December 2014.
- 4The filing includes data for both the total USCS portfolio and the American Express Credit Account Master Trust (Lending Trust), highlighting potential differences in their credit performance metrics.
- 5Annualized default rates for the Lending Trust mirrored the USCS net write-off rate, fluctuating between 1.3% and 1.4% for the reporting periods ending October 24, November 24, and December 25, 2014.
- 6Total 30+ days delinquent amounts for the Lending Trust remained stable at $0.3 billion across the reported periods.