Summary
This 8-K filing by American Express (AXP) provides updated credit performance statistics for its U.S. Consumer Services (USCS) and U.S. Small Business Card Member lending portfolios, as well as for the American Express Credit Account Master Trust. The data covers the months ending August 31, September 30, and October 31, 2017. Investors can use this information to gauge the credit quality and potential risk within Amex's loan portfolios. The key takeaway from the provided data is that delinquency and write-off rates remained relatively stable and at manageable levels during the reporting period. The company is furnishing this information to provide additional insights beyond its regular SEC filings, allowing for a more granular view of credit trends.
Key Highlights
- 1Delinquency rates for U.S. Consumer Services loans remained steady at 1.3% for September and October 2017.
- 2Net write-off rate for U.S. Consumer Services loans was 1.6% in September and increased slightly to 1.8% in October.
- 3U.S. Small Business Card Member loans showed consistent 30-day delinquency at 1.1% for the three months reported.
- 4Net write-off rate for U.S. Small Business Card Member loans was 1.4% in September, returning to 1.6% in October.
- 5Total U.S. Consumer and Small Business Card Member loans combined stood at $60.6 billion by October 31, 2017.
- 6The American Express Credit Account Master Trust reported a stable annualized default rate, net of recoveries, at 1.4% for September and October.
- 7The company clarifies that securitized loans within the Lending Trust may have different characteristics than the total loan portfolios, potentially impacting reported credit performance differences.