8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Nov 16, 2015)

Filed November 16, 2015For Securities:AXP

Summary

This 8-K filing by American Express Company (AXP) on November 16, 2015, provides updated credit performance statistics for its U.S. Card Services (USCS) operating segment for the months of August, September, and October 2015. Investors are provided with key metrics on loan delinquencies and net write-off rates for the total USCS portfolio and the American Express Credit Account Master Trust (Lending Trust). The data indicates a relatively stable credit environment during this period. For the USCS segment, 30-day past due loan rates remained at 0.9% or 1.0%, while the net write-off rate (principal only) fluctuated slightly between 1.2% and 1.3%. Similarly, the Lending Trust reported stable annualized default rates and delinquency figures. These filings offer transparency into American Express's credit risk management and portfolio health.

Key Highlights

  • 1Provides updated delinquency and write-off statistics for the U.S. Card Services (USCS) segment for August, September, and October 2015.
  • 2USCS total loans averaged between $62.1 billion and $62.7 billion during the period.
  • 330 days past due loans as a percentage of total USCS loans remained low, at 0.9% in August and 1.0% in September and October.
  • 4The net write-off rate for USCS (principal only) was 1.3% in August, 1.2% in September, and 1.3% in October.
  • 5Data for the American Express Credit Account Master Trust shows stable annualized default rates (net of recoveries) at 1.1% in August and October, and 1.0% in September.
  • 6The Lending Trust reported total 30+ days delinquent balances of $0.2 billion across the three months.
  • 7The filing clarifies that USCS total portfolio statistics include both securitized and non-securitized loans, while the Lending Trust data pertains only to securitized loans, explaining potential differences.

Frequently Asked Questions

The main purpose of this 8-K filing is to furnish updated credit performance data for American Express's U.S. Card Services (USCS) operating segment, specifically focusing on delinquency and write-off rates for August, September, and October 2015. This provides investors with timely insights into the company's credit risk management.

The credit metrics for the USCS segment appear stable during the reported period. The 30-day past due loan rate was consistently low, at 0.9% or 1.0%. The net write-off rate (principal only) remained in a narrow range of 1.2% to 1.3%.

The USCS total portfolio statistics represent all Card Member loans within that segment, including both securitized and non-securitized loans. The Lending Trust data, on the other hand, pertains only to the loans that have been securitized through the American Express Credit Account Master Trust. Differences can arise due to variations in loan characteristics, mix, and calculation methodologies.

Based on the data provided for August, September, and October 2015, there are no immediate signs of significant credit deterioration. The delinquency and write-off rates remained within stable, relatively low levels for both the overall USCS portfolio and the securitized Lending Trust.