Summary
This 8-K filing from American Express (AXP) provides updated credit performance statistics for its U.S. Consumer Services (USCS) and U.S. Small Business lending portfolios, as well as for the American Express Credit Account Master Trust. The data covers the periods ending November 30, December 31, 2017, and January 31, 2018. Investors should note the trends in delinquency and write-off rates, which are key indicators of credit quality and potential future losses. Overall, the reported figures suggest stable to slightly improving credit metrics during the period. For the U.S. Consumer Services portfolio, 30-day delinquencies remained at 1.3%-1.4% and the net write-off rate decreased from 2.0% in December to 1.7% in January. Similarly, the U.S. Small Business portfolio showed consistent 30-day delinquency rates around 1.2%-1.3% and a declining net write-off rate from 1.6% to 1.4%. The securitized trust also reported stable annualized default rates. These trends generally indicate manageable credit risk at the close of 2017 and the beginning of 2018.
Key Highlights
- 1Furnishes delinquency and write-off statistics for U.S. Consumer Services and U.S. Small Business lending portfolios for Nov, Dec 2017, and Jan 2018.
- 2U.S. Consumer Services (USCS) 30-day past due rate remained stable at 1.3%-1.4% through January 31, 2018.
- 3USCS net write-off rate improved, decreasing from 2.0% in December 2017 to 1.7% in January 2018.
- 4U.S. Small Business 30-day past due rate remained stable at 1.2%-1.3% through January 31, 2018.
- 5U.S. Small Business net write-off rate improved, decreasing from 1.6% in December 2017 to 1.4% in January 2018.
- 6The American Express Credit Account Master Trust reported stable annualized default rates between 1.3% and 1.4% for the three most recent monthly periods.
- 7Distinguishes between total portfolio data and securitized trust data, noting potential differences in characteristics and reporting mechanics.