American Express U.S. credit card defaults rise
NEW YORK (Reuters) - American Express Co (AXP.N: Quote, Profile, Research) said on Monday that U.S. credit card defaults rose in May the same month that the U.S. jobless rate rose to 9.4 percent, a 26-year high.
The largest U.S. credit card company by sales volume said its net charge-off rate -- the percentage of debt it does not expect to be repaid -- rose to 10.4 percent in May from 9.90 percent in April, according to a regulatory filing based on the performance of credit card loans that were securitized.
But, American Express said its charge-off rate on a managed basis fell to 10 percent in May from 10.1 percent in April, as the company sold some loans that it had already written-off, reflecting a partial recovery of such losses.
American Express shares were down 1.52 percent at $24.69 in afternoon trading on the New York Stock Exchange. The stock is up 35 percent in 2009.
(Reporting by Juan Lagorio, editing by Leslie Gevirtz)
© Thomson Reuters 2009 All rights reserved
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