AmEx June Write-Offs Hit 1.4% Consumer, 2.3% Small Business
AXP sits 26% above its 52-week low of $288.34 on light trading volume (0.3× avg).
Summary
American Express disclosed June credit metrics showing U.S. Consumer net write-offs at 1.4% and Small Business at 2.3%, with the consumer rate benefiting ~0.3% from a sale of previously written-off balances. Without that sale, the underlying consumer write-off rate would be closer to 1.7%, indicating modest deterioration. The preliminary U.S. Small Business card 30 days past due rate was 1.4% as of June 30. This follows the May 8-K that showed stabilizing trends, but the June figures suggest a slight uptick in losses. The three-month rates of 1.8% consumer and 2.4% small business provide a broader view of credit normalization. Traders will weigh this against the strong Q1 earnings and the recent $1.75B debt offering.
At the time of this announcement, AXP was trading at $362.28 on NYSE in the Finance sector, with a market capitalization of approximately $247.2B. The 52-week trading range was $288.34 to $387.49. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.