American Express Card Late Payments Edge Up To 1.2% In September, Write-Offs Ease
An 8-K shows 30-day delinquencies on U.S. consumer and small-business cards rose a tenth of a point, while net write-off rates fell.
American Express said in an 8-K filed Thursday that 1.2% of U.S. Consumer Card balances were 30 days past due at September 30, up from 1.1% at both August 31 and July 31. Write-off rates moved the other way.
What the 8-K shows
The filing furnishes monthly credit statistics for card balances held for investment. Balances classified as held for sale are excluded.
U.S. Small Business Card balances followed the same pattern on delinquencies: 1.4% were 30 days past due at September 30, versus 1.3% at the end of both August and July.
Net write-off rates, which count principal only and exclude interest and fees, fell. On consumer cards the rate was 1.5% in September, against 1.7% in both August and July, and 1.6% for the three months ended September 30 (preliminary).
Small Business net write-offs eased to 2.1% in September from 2.2% in August and 2.6% in July. For the three months they came to 2.3%.
Balances and the securitization trust
Total U.S. Consumer and Small Business Card balances held for investment were $160.9 billion at September 30, compared with $160.3 billion at August 31 and $159.2 billion at July 31. Consumer balances were $114.3 billion and small-business balances $46.6 billion at September 30.
The filing also repeats figures for the American Express Credit Account Master Trust, which holds only revolve-eligible balances. Its annualized default rate, net of recoveries, was 1.0% in September and August, and 1.1% in July. Total balances 30 or more days delinquent in the trust were $0.2 billion in each of the three months.
The company cautions that monthly figures can vary with the number of days in a month, holidays, weekends and seasonality.
What it changes
Late payments rose a tenth of a percentage point on both card books, while write-off rates declined from July. In Thursday trading, as of 12:16 p.m. ET, American Express shares were about 1% higher at $309.94, from a prior close of $306.95.
The company's next monthly update will show whether the September uptick in delinquencies continues.
The 8-K labels the September and three-month figures preliminary, so they may be revised in later reports.
Sources
- 8-K Filing — AMERICAN EXPRESS CO (AXP) — SEC EDGAR
