| Item 7.01 | Regulation FD Disclosure |
American Express Company (the “Company”) is hereby furnishing below delinquency and write-off statistics for its U.S. Consumer Services (“USCS”) operating segment’s Card Member loans and its U.S. Small Business Card Member loans within its Global Commercial Services operating segment for the months ended August 31, September 30 and October 31, 2016.
Historical Card Member loan, delinquency and write-off statistics for USCS, U.S. Small Business and Card Members loans related to cobrand partnerships with Costco Wholesale Corporation in the U.S. and JetBlue Airways Corporation (the “HFS Portfolios”) are attached as Exhibit 99.1 to this Current Report on Form 8-K and are incorporated herein by reference.
American Express Company
U.S. Consumer Services and U.S. Small Business
Delinquency and Write-off Rate Statistics
As of and for the months ended August 31, September 30 and October 31, 2016
(Billions, except percentages)
| | | August 31, 2016 (b) | | | September 30, 2016 (b) | | | October 31, 2016 (b) | |
| USCS Card Member loans: | | | | | | | | | |
| Total loans | | $ | 45.0 | | | $ | 44.9 | | | $ | 45.5 | |
| 30 days past due loans as a % of total | | | 1.1 | % | | | 1.1 | % | | | 1.1 | % |
| Average loans | | $ | 44.9 | | | $ | 45.0 | | | $ | 45.2 | |
Net write-off rate – principal only (a) | | | 1.6 | % | | | 1.6 | % | | | 1.6 | % |
| | | | | | | | | | | | | |
| U.S. Small Business Card Member loans: | | | | | | | | | | | | |
| Total loans | | $ | 8.8 | | | $ | 9.0 | | | $ | 9.2 | |
| 30 days past due loans as a % of total | | | 1.1 | % | | | 1.1 | % | | | 1.1 | % |
| Average loans | | $ | 8.8 | | | $ | 8.9 | | | $ | 9.1 | |
Net write-off rate – principal only (a) | | | 1.6 | % | | | 1.6 | % | | | 1.5 | % |
| | | | | | | | | | | | | |
| Total U.S. Consumer and Small Business Card Member loans | | $ | 53.8 | | | $ | 53.9 | | | $ | 54.7 | |
(a) | Net write-off rate based on principal only (i.e., excluding interest and /or fees). |
(b) | Reflects the impact of U.S. Consumer and Small Business Card Member loans reclassified as Card Member loans held for investment from Card Member loans held for sale on the Consolidated Balance Sheets, which totaled $184 million, $160 million and $143 million as of August 31, September 30 and October 31, 2016, respectively. Excluding those loans, adjusted 30 days past due loans as a % of total, a non-GAAP measure, was 1.1% and 1.0% for USCS and U.S. Small Business, respectively, as of October 31, 2016 and the adjusted net write-off rate – principal only, a non-GAAP measure, was 1.5% and 1.4% for USCS and U.S. Small Business, respectively, as of October 31, 2016. |
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 Securities and Exchange Commission. The Card Member loans that have been securitized through the Lending Trust do not possess identical characteristics with those of the USCS or U.S. Small Business Card Member loans. The reported credit performance of the Lending Trust may, on a month-to-month basis, be better or worse as a result of, among other things, differences in the mix, vintage and aging of loans, including with respect to the performance of Card Member loans reclassified as Card Member loans held for investment from Card Member loans held for sale on the Consolidated Balance Sheet, 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 statistics of the USCS and U.S. Small Business Card Member loans, as well as other mechanics of the calculation for the Lending Trust net write-off rate, which is impacted by any additions to the Lending Trust within a particular period.
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)
| | | August 1, 2016 through August 31, 2016 | | | September 1, 2016 through September 30, 2016 | | | October 1, 2016 through October 31, 2016 | |
| | | | | | | | | | |
| Ending total principal balance | | $ | 24.4 | | | $ | 24.1 | | | $ | 24.2 | |
| Defaulted amount | | $ | 0.04 | | | $ | 0.03 | | | $ | 0.04 | |
| Annualized default rate, net of recoveries | | | 1.0 | % | | | 1.0 | % | | | 1.1 | % |
| Total 30+ days delinquent | | $ | 0.2 | | | $ | 0.2 | | | $ | 0.2 | |
EXHIBIT
| 99.1 | Historical information relating to Card Member loan, delinquency and write-off statistics for USCS, U.S. Small Business and the HFS Portfolios. |
