American Express (AXP) Jumps On Better-Than-Expected Write-Off Data

American Express (NYSE: AXP) jumped nearly 12% higher today after write-off data was slightly better-than-expected. The company benefiting from selling some cardmember loans that had been previously written-off.

American Express said, on an owned basis, the write-off rate in March was 8.6% in March. This down from 8.7% in February, but up from 8.3% in January. Accounts that were 30 days past due, on an owned basis, was 5.1% in March, versus 5.3% in February and 5.1% in January.

On a managed basis, the write-off rate in March was 8.8% in March. This compared to 8.6% in February and 8.1% in January. Accounts that were 30 days past due, on a managed basis, were 5.1% in March, versus 5.3% in February and 5.1% in January.

For the three months ended Mar. 31 2009 accounts that were 30 days past due was 5.1% and the net write-off rate was 8.5%, on both a manged and owned basis. American Express has $28.2 billion in total loans on an owned basis and $56.5 billion on a managed basis.

During March 2009, American Express sold to third parties certain cardmember loans that had been previously written-off. The net write-off rates reported for March 2009 and the three months ended March 31, 2009, reflect the benefit of the sale proceeds being treated as a partial recovery of such previously written-off balances.

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