Business Context and Reporting Period
This Form 8-K, filed on July 15, 2014, by American Express Company, provides Regulation FD disclosure regarding delinquency and write-off statistics for the U.S. Card Services (USCS) operating segment. The data covers the months ended April 30, May 31, and June 30, 2014, as well as the three-month period ended June 30, 2014.
Key Financial Metrics
U.S. Card Services (USCS) Total Portfolio
| Metric | April 30, 2014 | May 31, 2014 | June 30, 2014 (Preliminary) | Three Months Ended June 30, 2014 |
|---|---|---|---|---|
| Total Loans ($ Billions) | 56.3 | 57.5 | 57.7 | 57.7 |
| Average Loans ($ Billions) | 56.1 | 56.9 | 57.6 | 56.8 |
| 30+ Days Past Due (% of Total) | 1.0% | 1.0% | 0.9% | 0.9% |
| Net Write-off Rate (Principal Only) | 1.6% | 1.6% | 1.5% | 1.6% |
American Express Credit Account Master Trust (Lending Trust)
| Metric | Mar 26 - Apr 24, 2014 | Apr 25 - May 25, 2014 | May 26 - Jun 24, 2014 |
|---|---|---|---|
| Ending Total Principal Balance ($ Billions) | 28.1 | 28.5 | 28.3 |
| Defaulted Amount, Net of Recoveries ($ Billions) | 0.1 | 0.1 | 0.1 |
| Annualized Default Rate, Net of Recoveries | 1.7% | 1.7% | 1.6% |
| Total 30+ Days Delinquent ($ Billions) | 0.3 | 0.3 | 0.3 |
Material Changes and Comparisons
For the USCS total portfolio, total loans increased from $56.3 billion in April to $57.7 billion in June. The 30+ days past due ratio improved slightly from 1.0% in April and May to 0.9% in June. The net write-off rate remained stable at 1.6% for the quarter, with a slight dip to 1.5% in June alone.
The filing notes that credit performance statistics for the Lending Trust may differ from the total USCS portfolio due to differences in loan mix (including a larger proportion of small business loans in the non-securitized portion), vintage, and calculation mechanics (e.g., end-of-period balances vs. average balances).
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the disclosure of credit performance statistics. It explicitly states that the data is additional to the monthly Form 10-D reports filed by the Lending Trust.
Investor Verification Checklist
- Verify the distinction between the USCS total portfolio (securitized and non-securitized) and the Lending Trust portfolio when analyzing credit metrics.
- Confirm that net write-off rates are calculated based on principal only, excluding interest and fees.
- Review the corresponding Form 10-D filings for the Lending Trust to compare reporting periods and calculation methodologies.
- Note that June 2014 data for the USCS total portfolio is marked as preliminary.