Summary
This 8-K filing from American Express (AXP) on April 15, 2016, provides investors with updated statistics on delinquency and write-off rates for its U.S. Consumer Services (USCS) and U.S. Small Business segments for the periods ending January, February, and March 2016. These figures offer a snapshot of credit quality and potential loan losses for the company's core lending portfolios. Notably, the filing clarifies that certain card member loans related to co-brand partnerships with Costco and JetBlue have been reclassified to "held for sale" as of December 1, 2015, and are therefore excluded from the presented "held for investment" statistics. This distinction is important for investors to understand the composition of the reported loan portfolios and how these specific, significant partnerships are being accounted for.
Key Highlights
- 1Provides delinquency and write-off statistics for USCS and U.S. Small Business Card Member loans held for investment for the months of January, February, and March 2016.
- 2Delinquency rates (30+ days past due) for USCS remained stable at 1.0% for the period, while U.S. Small Business saw a slight increase to 1.1% in February before returning to 1.0%.
- 3Net write-off rates for USCS were 1.4% in January and February, increasing to 1.5% in March. U.S. Small Business maintained a consistent 1.4% net write-off rate.
- 4Total loans held for investment in USCS fluctuated slightly but ended March at $42.4 billion.
- 5Total loans held for investment in U.S. Small Business increased to $8.3 billion by March 2016.
- 6Loans related to Costco and JetBlue co-brand partnerships (HFS Portfolios) have been reclassified to 'held for sale' and are excluded from these 'held for investment' statistics.
- 7Includes supplementary information on the American Express Credit Account Master Trust, showing annualized default rates and 30+ days delinquent amounts.