form8k.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): December 15,
2009
AMERICAN
EXPRESS COMPANY
(Exact
name of registrant as specified in its charter)
New York
|
1-7657
|
13-4922250
|
(State
or other jurisdiction of incorporation or organization)
|
(Commission
File Number)
|
Identification
(IRS Employer No.)
|
200
Vesey Street, World Financial Center
|
|
New York, New York
|
10285
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant's
telephone number, including area code: (212) 640-2000
---------------------------------------------------
(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):
[
] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17
CFR 240.14d-2(b))
[ ]
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 owned and managed
basis delinquency and write-off statistics for the lending portfolio of its U.S.
Card Services (“USCS”) operating segment for the months ended September 30,
October 31 and November 30, 2009. As previously stated in its reports
filed with the Securities and Exchange Commission (the “Commission”), the
Company believes that its managed basis presentation provides the Company’s
investors with a more comprehensive portrayal of the key dynamics of the
Company’s U.S. cardmember lending business over time.
American
Express Company
U.S.
Card Services
Delinquency
and Write-off Statistics
As
of and for the months ended September 30, October 31 and November 30,
2009
(Billions,
except percentages)
|
|
Sept.
30,
|
|
|
Oct.
31,
|
|
|
Nov.
30,
|
|
|
|
2009
|
|
|
2009
|
|
|
2009
|
|
Cardmember
lending – owned basis (A):
|
|
|
|
|
|
|
|
|
|
Total
Loans
|
|
$ |
22.7 |
|
|
$ |
22.1 |
|
|
$ |
22.4 |
|
30
days past due loans as a % of total
|
|
|
4.2 |
% |
|
|
4.1 |
% |
|
|
3.9 |
% |
Average
loans
|
|
$ |
23.5 |
|
|
$ |
22.4 |
|
|
$ |
22.3 |
|
Net
write-off rate
|
|
|
9.2 |
% |
|
|
8.6 |
% |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardmember
lending – managed basis (B):
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Loans
|
|
$ |
51.9 |
|
|
$ |
51.2 |
|
|
$ |
51.5 |
|
30
days past due loans as a % of total
|
|
|
4.1 |
% |
|
|
4.1 |
% |
|
|
3.9 |
% |
Average
loans
|
|
$ |
52.4 |
|
|
$ |
51.6 |
|
|
$ |
51.4 |
|
Net
write-off rate
|
|
|
8.4 |
% |
|
|
7.8 |
% |
|
|
7.6 |
% |
(A)
|
“Owned,”
a GAAP basis measurement, reflects only cardmember loans included in the
Company's consolidated balance
sheets.
|
(B)
|
The
managed basis presentation assumes that there have been no off-balance
sheet securitization transactions, i.e., all securitized cardmember loans
and related income effects are reflected as if they were in the Company's
balance sheets and income statements, respectively. The
difference between the “owned basis” (GAAP) information and "managed
basis" information is attributable to the effects of securitization
activities. The Company presents U.S. Card Services information on a
managed basis because that is the way the Company's management views and
manages the business. Management believes that a full picture
of trends in the Company's cardmember lending business can only be derived
by evaluating the performance of both securitized and non-securitized
cardmember loans and that use of a managed basis presentation presents a
more comprehensive portrayal of the key dynamics of the cardmember lending
business over time.
|
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
off-balance sheet Lending Trust do not possess identical characteristics with
those of the total (i.e., managed) portfolio of USCS loans, which reflects the
aggregate of securitized and owned 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 managed 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 managed portfolio
(including, among other things, the larger proportion of small business loans in
the owned 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 managed
statistics, as well as other mechanics of the calculation for the owned 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 managed 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)
|
|
Aug.
26, 2009
|
|
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Sept.
25, 2009
|
|
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Oct.
26, 2009
|
|
|
|
through
|
|
|
through
|
|
|
through
|
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Sept. 24, 2009
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Oct. 25, 2009
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Nov. 24, 2009
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|
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|
|
|
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Ending
total principal balance
|
|
$ |
35.0 |
|
|
$ |
34.6 |
|
|
$ |
34.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defaulted
amount, net of recoveries
|
|
$ |
0.2 |
|
|
$ |
0.2 |
|
|
$ |
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized
default rate, net of recoveries
|
|
|
8.1 |
% |
|
|
7.4 |
% |
|
|
7.5 |
% |
Total
30+ days delinquent
|
|
$ |
1.5 |
|
|
$ |
1.5 |
|
|
$ |
1.4 |
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Forward-Looking
Statements
This
report includes forward-looking statements, which are subject to risks and
uncertainties. Forward-looking statements contain words such as
“believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,”
“will,” “may,” “should,” “could,” “would,” “likely” and similar
expressions. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on which they
are made. The Company undertakes no obligation to update or revise
any forward-looking statements. Factors that could cause actual
results to differ materially from these forward-looking statements include, but
are not limited to, the following: the Company's ability to manage
credit risk related to consumer and small business loans and other credit
trends, which will depend in part on the economic environment, including, among
other things, the housing market, the rates of bankruptcies and unemployment,
which can affect spending on card products and debt payments by individuals and
small business customers, and on the effectiveness of the Company's credit
models; the impact of the Company's efforts to deal with delinquent cardmembers
in the current challenging economic environment, which may affect payment
patterns of cardmembers, the actual level of cardmember delinquencies in the
future and the perception of the Company's services, products and brands; the
Company's near-term write-off rates, including those for the fourth quarter of
2009, which will depend in part on changes in the level of the Company's loan
balances, delinquency rates of cardmembers and bankruptcy filings and
unemployment rates; and the actual amount to be spent by the Company on
marketing, promotion, rewards and cardmember services based on management's
assessment of competitive opportunities and other factors affecting its
judgment, and during the remainder of 2009, the extent of provision benefit, if
any, from lower than expected write offs. A further description of
these and other risks and uncertainties can be found in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2008, its Quarterly Reports
on Form 10-Q for the quarters ended March 31, June 30 and September 30,
2009, and its other reports filed with the SEC.
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
|
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Name: Carol
V. Schwartz
|
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Title:
Secretary
|
Date: December
15, 2009