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): March 16, 2009
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 (Commission File Number) (IRS Employer
of incorporation Identification No.)
or organization)
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):
[ ] 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
December 31, 2008, and January 31 and February 28, 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 for the Company's investors a more accurate picture of the key
dynamics of the Company's U.S. cardmember lending business over time. As the
Company indicated in its 2008 Annual Report to Shareholders, it expects
USCS past-due loans and write-offs to rise in the first and second quarters of
2009 from 2008 levels.
AMERICAN EXPRESS COMPANY
U.S. CARD SERVICES
MONTHLY DELINQUENCY AND WRITE-OFF STATISTICS
As of and for the months ended December 31, 2008, and January 31 and
February 28, 2009
(Billions, except percentages)
Dec. 31, Jan.31, Feb. 28,
2008 2009 2009
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Cardmember lending - owned basis (A):
Total Loans $32.7 $30.4 $29.5
30 days past due loans as a % of total 4.7% 5.1% 5.3%
Average loans $32.6 $31.5 $29.9
Net write-off rate 7.5% 8.3% 8.7%
Cardmember lending - managed basis (B):
Total Loans $62.4 $59.5 $57.8
30 days past due loans as a % of total 4.7% 5.1% 5.3%
Average loans $62.4 $61.0 $58.6
Net write-off rate 7.3% 8.1% 8.6%
(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 accurate picture of the key dynamics of the cardmember lending
business over time.
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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 (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, the number of days in the reporting period covered by the
Form 10-D being filed by the Lending Trust and 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. 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 typically beginning on 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 each such period.
AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
(Billions, except percentages)
Nov. 25, 2008 Dec. 25, 2008 Jan. 26, 2009
through through through
Dec. 24, 2008 Jan. 25, 2009 Feb. 24, 2009
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Ending total principal balance $40.4 $38.6 $37.2
Defaulted amount,
net of recoveries $ 0.2 $ 0.3 $ 0.3
Annualized default rate,
net of recoveries 7.2% 8.3% 9.3%
Total 30+ days delinquent $ 2.0 $ 2.0 $ 2.0
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Forward-Looking Statements
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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: fluctuations in
card lending balances, which depend in part on the economic environment; 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; credit performance for March
2009; and 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. 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, and the Company's other reports
filed with the SEC.
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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/ Stephen P. Norman
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Name: Stephen P. Norman
Title: Secretary
Date: March 16, 2009
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