Summary
This 8-K filing by American Express Co. (AXP) on June 15, 2018, provides investors with 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 ending March 31, April 30, and May 31, 2018. These figures offer a snapshot of the company's credit quality and risk management for its lending operations. Key metrics presented include total loan balances, 30-day past due percentages, and net write-off rates. The filing also includes comparable data for the American Express Credit Account Master Trust, which is used for securitization. Investors can use this information to assess trends in credit performance and potential impacts on future earnings, as credit quality is a crucial factor for financial institutions like American Express.
Key Highlights
- 1American Express is providing updated credit performance data for its U.S. Consumer Services and U.S. Small Business lending portfolios.
- 2The data covers delinquency and write-off rates for the months of March, April, and May 2018.
- 3For U.S. Consumer Services, 30-day past due rates remained stable at 1.3% in April and May 2018, after being 1.4% in March 2018.
- 4Net write-off rates for U.S. Consumer Services were 2.2% in March and May 2018, with a slight increase to 2.3% in April 2018.
- 5For U.S. Small Business, 30-day past due rates were stable at 1.2% in April and May 2018, down from 1.3% in March 2018.
- 6Net write-off rates for U.S. Small Business were 1.9% in April and May 2018, consistent with March 2018.
- 7Supplemental data for the American Express Credit Account Master Trust (a securitization vehicle) shows annualized default rates generally between 1.5% and 1.7%.