Summary
This 8-K filing by American Express Company provides an update on the credit performance of its U.S. Card Services (USCS) operating segment for the months ending March 31, April 30, and May 31, 2015. The report focuses on key metrics such as total loans, 30-day past due rates, and net write-off rates, offering investors a snapshot of the company's credit portfolio health during this period. The information is particularly relevant for assessing potential credit risk and the effectiveness of American Express's underwriting and collections. The data indicates stable or improving credit quality, with 30-day delinquency rates holding steady at 0.9% or 1.0% and a slight decrease in the net write-off rate from 1.5% to 1.3% over the three months. Additionally, the filing includes similar credit performance data for the American Express Credit Account Master Trust, which represents securitized loans, also showing generally favorable trends in default rates and delinquencies. Investors should note that the USCS total portfolio data includes both securitized and non-securitized loans, and may differ from the Lending Trust data due to variations in loan mix and calculation methodologies.
Key Highlights
- 1American Express furnished delinquency and write-off statistics for its U.S. Card Services (USCS) lending portfolio for March, April, and May 2015.
- 2Total loans in the USCS portfolio grew from $59.9 billion in March to $61.8 billion in May 2015.
- 330-day past due loan rates remained stable, reported at 1.0% in March and decreasing to 0.9% in April and May 2015.
- 4The net write-off rate (principal only) for the USCS portfolio showed a slight improvement, decreasing from 1.5% in March and April to 1.3% in May 2015.
- 5Data for the American Express Credit Account Master Trust (securitized loans) also indicated a downward trend in annualized default rates, from 1.4% to 1.1%, and a decrease in 30+ days delinquent amounts.
- 6The filing clarifies that USCS total portfolio statistics include both securitized and non-securitized loans, and may differ from the Lending Trust's reported figures due to portfolio composition and calculation methods.