American Express Company (AXP, Financial) has released its latest delinquency and write-off statistics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios. The data covers the months ending November 30, October 31, and September 30, 2024. This report provides additional insights beyond the data reported by the American Express Credit Account Master Trust in its monthly Form 10-D filings with the Securities and Exchange Commission.
The statistics reveal that the characteristics of the Card Member loans securitized through the Lending Trust differ from those of the total U.S. Consumer and U.S. Small Business Card Member loan portfolios. These portfolios include both securitized and non-securitized loans. Consequently, the reported credit performance of the Lending Trust may vary on a month-to-month basis due to differences in loan mix, vintage, and aging, as well as the calculation methods used for write-off statistics.
Furthermore, the variability in statistics for any given monthly period can be influenced by several factors, including the number of days in a month, timing of holidays and weekends, seasonality, and the timing of information received from third parties. These factors contribute to the complexity of accurately assessing the credit performance of American Express's lending portfolios.
For value investors and stakeholders, these insights into American Express's credit performance are crucial for understanding the company's financial health and risk management strategies. As the company continues to navigate the evolving economic landscape, these statistics offer a glimpse into its operational resilience and adaptability.
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