creditstatfeb2010.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  February 16, 2010

AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)



 
New York
1-7657
13-4922250
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(State or other jurisdiction
of incorporation or organization)
(Commission File Number)
(IRS Employer Identification No.)
 

 
200 Vesey Street, World Financial Center
New York, New York
 
10285
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(Address of principal executive offices)
(Zip Code)

 

Registrant's telephone number, including area code: (212) 640-2000


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(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 


Item 7.01
Regulation FD Disclosure

American Express Company (the “Company”) is hereby furnishing below delinquency and write-off statistics for the lending portfolio of its U.S. Card Services (“USCS”) operating segment for the months ended November 30 and December 31, 2009, and January 31, 2010.

American Express Company
U.S. Card Services
Delinquency and Write-off Statistics

As of and for the months ended November 30 and December 31, 2009, and January 31, 2010

(Billions, except percentages)

 
   
Nov. 30,
    
Dec. 31,
    
Jan. 31,
    
   
2009
    
2009
    
2010
    
Cardmember lending – Total portfolio (A):
                    
   Total Loans
  
$
51.5
    
$
52.6
    
$
50.9
    
   30 days past due loans as a % of total
    
3.9
%
    
3.7
%
    
3.6
%
  
   Average loans
  
$
51.4
    
$
52.0
    
$
51.7
    
   Net write-off rate
    
7.6
%
    
7.1
%
    
7.0
%
  
                           
Cardmember lending – Non-securitized portfolio (B):
                          
   Total Loans
  
$
22.4
    
$
23.5
    
 
      
   30 days past due loans as a % of total
    
3.9
%
    
3.7
%
          
   Average loans
  
$
22.3
    
$
23.0
    
 
      
   Net write-off rate
    
8.1
%
    
7.4
%
          

 
 
(A)  
“Total portfolio” is a GAAP basis measurement as of January 1, 2010, and reflects all cardmember loans, including non-securitized cardmember loans and securitized cardmember loans.  Prior to the consolidation of securitized loans in the Company’s balance sheets on January 1, 2010, the Company referred to the total portfolio as the “managed basis” presentation.

(B)  
“Non-securitized portfolio” reflects cardmember loans that have not been securitized through the American Express Credit Account Master Trust.  Prior to January 1, 2010, the non-securitized portfolio, which the Company formerly referred to as the “owned basis” presentation, reflected GAAP for purposes of financial reporting.  Generally, the Company will no longer report metrics relating to the non-securitized portfolio commencing with information being reported for January 2010 and thereafter.

The statistics presented above provide information that is additional to the data reported by the American Express Credit Account Master Trust (the “Lending Trust”) in its monthly Form 10-D report filed with the Commission.  The loans that have been securitized through the Lending Trust do not possess identical characteristics with those of the total portfolio of USCS loans, which reflects the aggregate of securitized and non-securitized loans.  Thus, the reported credit performance of the Lending Trust may, on a month-to-month basis, be better or worse than the credit performance of the total portfolio.  Reported differences may arise as a result of, among other things, differences in the mix and vintage of loans between the Lending Trust and the total portfolio (including, among other things, the larger proportion of small business loans in the non-securitized portion of the total portfolio), the number of days in the reporting period covered by the Form 10-D being filed by the Lending Trust, the use of end-of-period principal loan balances to calculate write-off statistics in the Lending Trust compared to the use of average loan balances over the reporting period used in the total portfolio statistics, as well as other mechanics of the calculation for the total portfolio net write-off rate, which is impacted by the additions, issuances and maturities relating to the securitization trust within a particular period.  In addition, the reporting period for the total portfolio is based on a calendar month, as compared to the reporting period covered by the Form 10-D reports for the Lending Trust, which is generally based on a monthly period beginning on or around the 25th day of each calendar month.

Set forth below is certain information regarding the credit performance of the Lending Trust for its three most recent monthly reporting periods, as reported in its Form 10-D report filed with respect to each such period.

American Express Credit Account Master Trust

(Billions, except percentages)
 

   
Oct. 26, 2009
    
Nov. 25, 2009
    
Dec. 25, 2009
  
   
through
    
through
    
through
  
   
Nov. 24, 2009
    
Dec. 24, 2009
    
Jan. 25, 2010
  
                   
Ending total principal balance
   $ 34.3     $ 35.5     $ 34.3  
Defaulted amount, net of recoveries
   $ 0.2     $ 0.2     $ 0.2  
Annualized default rate, net of recoveries
     7.5 %     6.9 %     6.8 %
Total 30+ days delinquent
   $ 1.4     $ 1.4     $ 1.3  


 
 
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SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 

 
AMERICAN EXPRESS COMPANY
(REGISTRANT)
 
 
By:  /s/ Carol V. Schwartz
       Name:  Carol V. Schwartz
       Title:    Secretary
 



Date:  February 16, 2010

 
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