American Express Co (NYSE:AXP) disclosed its latest U.S. consumer and small business card loan delinquency and write-off statistics in a regulatory filing today. The data, which includes figures for the months ending June 30, May 31, and April 30, as well as aggregate numbers for the second quarter of 2024, provides investors with a snapshot of the company’s credit performance.
As of June 30, 2024, American Express reported that its total U.S. consumer card member loans amounted to $85.0 billion, with a 1.3% rate of loans being 30 days past due. The net write-off rate for principal only was 2.3%. In comparison, U.S. small business card member loans stood at $28.6 billion, with a delinquency rate of 1.4% and a net write-off rate of 2.4% for principal only.
The average loans for the U.S. consumer segment were $84.5 billion for the second quarter, while the average for the U.S. small business segment was $28.4 billion. The combined total for U.S. consumer and small business card member loans reached $113.6 billion.
The filing also compared these statistics with data from the American Express Credit Account Master Trust (Lending Trust), which reports monthly on securitized card member loans. The Lending Trust's ending total principal balance for June was $25.8 billion, with a defaulted amount of $0.04 billion and an annualized default rate, net of recoveries, of 1.5%.
The company explained that the credit performance reported by the Lending Trust may differ from that of the total U.S. consumer or U.S. small business card member loan portfolios due to various factors, including differences in the mix and aging of loans, and the methodologies used to calculate write-off statistics.
Investors typically review such data to assess the credit risk associated with a lender's portfolio. Delinquency and write-off rates can indicate the financial health of borrowers and the potential for future losses due to nonpayment.
This information is based on a press release statement and reflects the company's credit performance as of the most recent reporting period.
In other recent news, American Express has made significant strides in the financial sector. Jefferies has updated their assessment of the company, raising the stock target to $235 from $225, while maintaining a Hold rating. The company is expected to report total revenues net of interest expense at $16.5 billion, marking a 9.8% year-over-year increase. Non-interest revenues are anticipated to rise by 6% year-over-year to $12.7 billion.
American Express has also expanded its presence in the hospitality sector with the acquisition of Tock, a restaurant booking platform for $400 million, and Rooam, a contactless payments platform. These acquisitions are part of the company's strategy to enhance its dining network and provide more targeted services to its premium customers.
Furthermore, the company reported an increase in delinquency rates for its U.S. Consumer and Small Business Card Member loans. Several financial firms, including Barclays, Wells Fargo, and Citi, have provided their analysis of these recent developments. These are the latest updates for American Express.
InvestingPro Insights
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