Summary
This 8-K filing by American Express Company (AXP) on September 15, 2015, provides updated delinquency and write-off statistics for its U.S. Card Services (USCS) operating segment for the months of June, July, and August 2015. The key takeaway for investors is the consistent and stable credit performance across its lending portfolio during this period. The data indicates a steady total loan balance and, more importantly, consistent and low rates for 30-day delinquencies and net write-offs.
Key Highlights
- 1Consistent credit performance: Delinquency and write-off rates remained stable for the USCS lending portfolio over the three-month period (June-August 2015).
- 2Low delinquency rate: The 30-day past due loan rate for the total USCS portfolio remained constant at 0.9%.
- 3Stable net write-off rate: The net write-off rate (principal only) for the USCS portfolio was consistently 1.3%.
- 4Growing loan portfolio: Total card member loans in the USCS segment showed a modest increase from $61.7 billion in June to $62.6 billion in August 2015.
- 5Securitized trust performance: Data for the American Express Credit Account Master Trust shows generally stable or slightly improving credit metrics, with annualized default rates net of recoveries at 1.1% or 1.2%.
- 6Disclosure context: The filing clarifies 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, vintage, and calculation methodologies.