Summary
This 8-K filing by American Express Company (AXP) provides updated delinquency and write-off statistics for its U.S. Consumer Services (USCS) and U.S. Small Business Card Member lending portfolios for the months of March, April, and May 2017. The report details key credit performance metrics, including total loans, 30-day past due percentages, and net write-off rates. These figures are presented for both the entire portfolio and for loans held within the American Express Credit Account Master Trust, which is securitized. Investors can use this information to assess the credit quality and risk associated with American Express's lending operations. The data indicates stable, albeit low, delinquency and write-off rates across both consumer and small business segments during the reported period. The filing also clarifies differences in calculation methodologies between the total portfolio and the securitized trust, which can impact month-to-month reported rates.
Key Highlights
- 1Provides updated credit performance metrics (delinquencies, write-offs) for USCS and U.S. Small Business portfolios for March, April, and May 2017.
- 2Total loans in the USCS segment increased from $46.7 billion to $48.4 billion over the three months.
- 3Total loans in the U.S. Small Business segment increased from $9.9 billion to $10.1 billion over the three months.
- 430-day delinquency rates remained stable, hovering around 1.1%-1.2% for USCS and 1.1%-1.2% for U.S. Small Business.
- 5Net write-off rates (principal only) were consistent at 1.8% for USCS and 1.5% for U.S. Small Business throughout the period.
- 6Presents separate data for the securitized American Express Credit Account Master Trust, showing stable annualized default rates (net of recoveries) between 1.3% and 1.5%.
- 7Explains methodological differences between reporting for the total loan portfolio versus the securitized trust.