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American Express Co. Friday reported a net charge-off rate on its U.S. credit cards of 10.1% of managed receivables for April, more than a full percentage point higher than the 8.8% reported for March. AmEx's 30-day delinquency rate, which is trending downward, fell to 4.9% in April from 5.1% a month earlier and from 5.3% in February, according to a company filing with the U.S. Securities and Exchange Commission. The April charge-off rate is in line with company expectations, AmEx stated in the filing. The company anticipates the second quarter charge-off rate to be between 200 and 250 basis points higher than the 8.5% reported for the first quarter ended March 31. Although the credit card industry as a whole likely will continue to be hammered by rising card losses throughout the year, AmEx continues to post "relatively attractive" results, given that its transactions tend to generate higher fees and it relies less on interest-spread income than some of its peers do, Fitch Ratings Inc. stated in a report earlier this month (CardLine, 5/4).
