NEW YORK, N.Y. – American Express Co. on Thursday reported a small decrease in the rate its customers defaulted on their cards in November and said late payments narrowly rose.
The New York-based company continues to have significantly lower rates for both measures than the other major credit card issuers, due to its more affluent customer base and tight controls on problem customers.
DEFAULT: American Express wrote off $51.4 million, or 2.4 per cent, of balances on an annualized basis, in November, up from 2.3 per cent in October. The rate is well below the 4.4 per cent charge-off rate a year earlier.
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LATE PAYMENTS: Payments on 1.5 per cent of balances were delinquent, or late by 30 days or more, in November. That’s the same rate as in October and September. In November last year, the delinquency rate was 2.2 per cent.
PEAK RATES: Amex’s worst month for charge-offs came in April 2009, when they hit 10.4 per cent. Card companies typically write off loans after they are six months past due.
Delinquencies reached their highest point in February 2009 at 5.3 per cent. The figure is an indicator for what to expect for defaults in coming months.
Shares of American Express slipped 11 cents to $46.97 in afternoon trading.
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