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): May 15, 2009
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
New York 1-7657 13-4922250
----------------------------- ------------------------ -------------------
(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
--------------------------------------------------- ----------
(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 February 28, March 31 and April 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. The results reported
below for April 2009 are consistent with the Company's estimate that the U.S.
lending write-off rate on a managed basis for the second quarter of 2009 is
expected to increase between 200 and 250 basis points over the first quarter
rate of 8.5%, which estimate the Company previously reported in its Quarterly
Report on Form 10-Q for the three months ended March 31, 2009.
AMERICAN EXPRESS COMPANY
U.S. CARD SERVICES
DELINQUENCY AND WRITE-OFF STATISTICS
As of and for the months ended February 28, March 31 and April 30, 2009
(Billions, except percentages)
Feb. 28, Mar. 31, Apr. 30,
2009 2009 2009
--------- -------- ----------
Cardmember lending - owned basis (A):
Total loans $29.5 $28.2 $27.1
30 days past due loans as a % of total 5.3% 5.1% 4.9%
Average loans $29.9 $28.9 $27.7
Net write-off rate 8.7% 8.6%(C) 10.4%
Cardmember lending - managed basis (B):
Total loans $57.8 $56.5 $55.4
30 days past due loans as a % of total 5.3% 5.1% 4.9%
Average loans $58.6 $57.1 $55.9
Net write-off rate 8.6% 8.8%(C) 10.1%
(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.
(C) During March 2009 the Company sold to third parties certain
cardmember loans that had been previously written-off. The net
write-off rates reported above for March 2009 reflect the benefit of
the sale proceeds being treated as a partial recovery of such
previously written-off balances.
-2-
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, 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 to each such period.
AMERICAN EXPRESS CREDIT ACCOUNT MASTER TRUST
(Billions, except percentages)
Jan. 26, 2009 Feb. 25, 2009 Mar. 27, 2009
through through through
Feb. 24, 2009 Mar. 26, 2009 Apr. 26, 2009
------------- ------------- -------------
Ending total principal balance $37.2 $36.0 $35.5
Defaulted amount,
net of recoveries $ 0.3 $ 0.3 $ 0.3
Annualized default rate,
net of recoveries 9.3% 9.7% 9.9%
Total 30+ Days delinquent $ 2.0 $ 1.9 $ 1.8
-3-
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: 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; the
Company's write-off rates for May and June 2009, which will depend in part on
changes in the level of the Company's loan balances, delinquency rates of
cardmembers and unemployment and bankruptcy rates; 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, its Quarterly Report on Form 10-Q for the three months
ended March 31, 2009, and the Company's other reports filed with the SEC.
-4-
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: May 15, 2009
-5-