What specific credit metrics is American Express providing in this filing?

American Express is providing delinquency rates (specifically, 30 days past due as a percentage of total loans) and net write-off rates (based on principal only) for its U.S. Consumer Services (USCS) and U.S. Small Business operating segments. Data is provided for the months ending March 31, April 30, and May 31, 2016.

How stable were the credit performance metrics during this period?

The credit performance metrics appear stable. For USCS, the 30-day delinquency rate remained at 0.9%-1.0% and the net write-off rate was between 1.5%-1.6%. For U.S. Small Business, the 30-day delinquency rate was consistently 1.0%, and the net write-off rate slightly improved from 1.4% to 1.3%.

Why are some American Express loan portfolios, like the Costco cobrand, not included in these statistics?

The filing states that effective December 1, 2015, Card Member loans related to the Costco cobrand partnership were reclassified as 'Card Member loans held for sale'. Consequently, these loans are not reflected in the presented 'held for investment' statistics, which focus on loans intended to be held on the company's balance sheet for a longer term.

What is the significance of the data provided for the American Express Credit Account Master Trust (Lending Trust)?

The Lending Trust data provides insight into the credit performance of securitized assets, which may have different characteristics than the loans held for investment by the USCS and U.S. Small Business segments. The filing notes that differences in loan mix, vintage, calculation methods, and the inclusion of 'held for sale' loans can cause the Lending Trust's credit performance to differ from the 'held for investment' portfolios.

AXP 8-K: Regulation FD — Jun 15, 2016

Summary

This 8-K filing from American Express (AXP) on June 15, 2016, provides an update on credit performance metrics for its U.S. Consumer Services (USCS) and U.S. Small Business operating segments for the months of March, April, and May 2016. The report highlights that delinquency and write-off rates remained stable and relatively low during this period, suggesting consistent credit quality within these core portfolios. Investors should note that specific loan portfolios, such as those related to the Costco cobrand partnership, were reclassified as "held for sale" effective December 1, 2015, and are therefore not included in the presented "held for investment" statistics. This distinction is important for understanding the scope of the data provided. The filing also includes data for the American Express Credit Account Master Trust, which is an important note for understanding the broader credit performance of securitized assets. While the USCS and U.S. Small Business "held for investment" portfolios showed stable metrics, the Lending Trust's performance was also presented, with its own set of metrics that may differ due to portfolio characteristics and calculation methodologies. Overall, the provided data points to a stable credit environment for AXP's main lending businesses during the first half of 2016.

Key Highlights

1Furnishes delinquency and write-off statistics for U.S. Consumer Services (USCS) and U.S. Small Business segments for March, April, and May 2016.
2USCS 30-day past due loans remained stable at 0.9% - 1.0% across the reported months.
3USCS net write-off rate (principal only) was stable at 1.5% - 1.6% for the period.
4U.S. Small Business 30-day past due loans remained constant at 1.0%.
5U.S. Small Business net write-off rate (principal only) showed a slight improvement, decreasing from 1.4% to 1.3%.
6Total U.S. Consumer and Small Business loans held for investment increased from $50.7 billion to $52.7 billion over the three months.
7Excludes certain loan portfolios (e.g., Costco cobrand) reclassified as 'held for sale' from the 'held for investment' statistics.

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jun 15, 2016)

Summary

Key Highlights

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