Summary
This 8-K filing by American Express Company provides an update on key credit performance metrics for its U.S. Consumer Services (USCS) and U.S. Small Business Card Member lending portfolios for the first quarter of 2017, specifically for the months ending January, February, and March 2017. The report details delinquency rates and net write-off rates, offering insights into the health of American Express's loan portfolios. For investors, the key takeaway is the relative stability in delinquency rates (holding steady at 1.2% for USCS and fluctuating slightly for U.S. Small Business) and a moderate net write-off rate. The USCS portfolio saw a net write-off rate of 1.8% in February and March, while the U.S. Small Business portfolio's write-off rate increased to 1.8% in March after being 1.5% in February. These figures are important for assessing the company's risk management and the potential impact of credit losses on its profitability.
Key Highlights
- 1Provides preliminary delinquency and write-off statistics for Q1 2017 for U.S. Consumer Services (USCS) and U.S. Small Business portfolios.
- 2USCS 30-day past due loans remained stable at 1.2% of total loans throughout the period.
- 3U.S. Small Business 30-day past due loans fluctuated slightly, starting at 1.2%, moving to 1.3%, and returning to 1.2%.
- 4Net write-off rate for USCS was 1.5% in January and increased to 1.8% for February and March.
- 5Net write-off rate for U.S. Small Business increased to 1.8% in March, up from 1.5% in February and 1.4% in January.
- 6Total U.S. Consumer and Small Business loans stood at $56.6 billion at the end of March 2017.
- 7Information is supplemental to data reported for the American Express Credit Account Master Trust in Form 10-D filings.