What is the overall credit health of American Express's U.S. Consumer and Small Business loan portfolios based on this filing?

Based on the data for the months ending May 31 through July 31, 2016, the credit health appears relatively stable. 30-day delinquency rates for both U.S. Consumer Services (USCS) and U.S. Small Business remained around 1.1%, and net write-off rates were moderate, indicating no significant deterioration in credit quality during this period.

Are there any significant changes in loan balances reported?

Yes, the total loans held for investment showed a slight increase for both USCS and U.S. Small Business segments from May to July 2016. Specifically, USCS loans grew from $44.2 billion to $44.8 billion, and U.S. Small Business loans increased from $8.5 billion to $8.7 billion.

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 loan portfolios. While it shows a stable annualized default rate of 1.0% for June and July 2016, investors should be cautious as the characteristics and calculation methods differ from the company's held-for-investment portfolios. This means the Lending Trust's performance may not be directly comparable and could be influenced by factors like loan mix, vintage, and different write-off calculation bases.

How should investors interpret the 'adjusted' non-GAAP measures mentioned in the filing?

The filing mentions adjusted 30-day past due and adjusted net write-off rates for July 31, 2016, which exclude the impact of loans reclassified from 'held for sale' to 'held for investment'. These adjusted figures aim to provide a more consistent view of credit performance by removing the effect of portfolio reclassifications. For July 31, 2016, the adjusted 30-day past due rate was 1.0% for both segments, and the adjusted net write-off rates were 1.4% for USCS and 1.2% for U.S. Small Business.

AXP 8-K: Regulation FD — Aug 15, 2016

Summary

American Express Company (AXP) filed an 8-K on August 15, 2016, providing updated delinquency and write-off statistics for its U.S. Consumer Services (USCS) and U.S. Small Business Card Member loan portfolios held for investment, covering the periods ending May 31, June 30, and July 31, 2016. The filing indicates relatively stable credit performance, with 30-day delinquencies hovering around 1.1% for both USCS and U.S. Small Business segments through July 31, 2016. Net write-off rates remained moderate, with USCS at 1.6% and U.S. Small Business at 1.5% for July 31, 2016. The report also furnished information regarding the American Express Credit Account Master Trust (Lending Trust), highlighting a slight decrease in the ending principal balance and a stable annualized default rate of 1.0% for June and July 2016. Investors should note that the data presented for the Lending Trust has different characteristics and calculation methodologies compared to the held-for-investment portfolios, particularly concerning loan mix, vintage, and write-off calculation bases. The filing also mentions the impact of portfolio reclassifications and acquisitions/removals for the Lending Trust in June 2016, including the Costco portfolio sale.

Key Highlights

1Provided updated U.S. Consumer Services (USCS) and U.S. Small Business loan delinquency and write-off statistics for May, June, and July 2016.
230-day delinquency rates for USCS and U.S. Small Business remained stable around 1.1% as of July 31, 2016.
3Net write-off rates for the period ending July 31, 2016, were 1.6% for USCS and 1.5% for U.S. Small Business.
4Reported total loans held for investment grew slightly for both USCS and U.S. Small Business segments.
5Furnished credit performance data for the American Express Credit Account Master Trust (Lending Trust).
6Lending Trust's annualized default rate was stable at 1.0% for June and July 2016.
7Noted differences in data calculation and loan characteristics between Lending Trust and held-for-investment portfolios.

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

Summary

Key Highlights

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