Summary
This 8-K filing from American Express Company (AXP) provides updated credit performance statistics for its U.S. Card Services (USCS) operating segment for the months ending May, June, and July 2015. The report focuses on delinquency and write-off rates for the Card Member lending portfolio. Investors should note that the presented data offers a more granular view of credit quality than what is typically seen in securitization trust reports, as it encompasses both securitized and non-securitized loans within the total USCS portfolio. Overall, the key metrics presented for the USCS total portfolio remained stable during the reported period. The 30 days past due loans as a percentage of total loans stayed constant at 0.9%, and the net write-off rate (principal only) remained at 1.3%. This stability suggests a consistent credit environment for American Express's U.S. card lending business during the second and third quarters of 2015, which is a positive indicator for asset quality.
Key Highlights
- 1American Express provided updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for May, June, and July 2015.
- 2The total loan balance for USCS Card Member lending remained relatively stable, hovering around $61.7 billion to $61.8 billion.
- 3The 30-day delinquency rate for the USCS portfolio was consistently 0.9% across all three reported months.
- 4The net write-off rate (principal only) for the USCS portfolio remained stable at 1.3% for May, June, and July 2015.
- 5The filing clarifies that these statistics represent the total USCS portfolio, including both securitized and non-securitized loans, providing a broader view than securitization trust reports alone.
- 6Data for the American Express Credit Account Master Trust (Lending Trust) was also provided, showing stable annualized default rates (net of recoveries) between 1.1% and 1.2% for the same periods.