Summary
This 8-K filing from American Express Company (AXP) provides an update on the credit performance of its U.S. Card Services (USCS) operating segment for the period ending September 30, 2015. The report furnishes delinquency and write-off statistics for both the total USCS card member lending portfolio and the American Express Credit Account Master Trust. For the USCS portfolio, total loans remained relatively stable, with 30-day delinquencies holding steady at 0.9% to 1.0% and net write-off rates for principal only remaining between 1.2% and 1.3% for the three months ended September 30, 2015. This indicates a stable credit environment for the company's core lending operations during this period. The filing also details the credit performance of the securitized portfolio within the American Express Credit Account Master Trust. This trust experienced a consistent annualized default rate, net of recoveries, of 1.0% to 1.1% for the three months ended September 30, 2015, with total 30+ day delinquencies remaining at $0.2 billion. While providing a snapshot of credit health, investors should note that the USCS total portfolio includes both securitized and non-securitized loans, and thus may exhibit different credit performance characteristics compared to the securitized trust alone.
Key Highlights
- 1Furnishes delinquency and write-off statistics for U.S. Card Services (USCS) for July, August, and September 2015.
- 2USCS total loans remained stable, around $61.8-$62.6 billion for the reported months.
- 330-day past due loans as a percentage of total loans for USCS were consistent, ranging from 0.9% to 1.0%.
- 4Net write-off rate (principal only) for USCS was stable, between 1.2% and 1.3% for the three months ended September 30, 2015.
- 5Reports credit performance for the American Express Credit Account Master Trust, which represents the securitized portion of loans.
- 6The securitized trust showed a consistent annualized default rate (net of recoveries) of 1.0% to 1.1%.
- 7Highlights that the USCS total portfolio includes both securitized and non-securitized loans, which can lead to different performance metrics than the securitized trust alone.