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): June 15, 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
March 31, April 30 and May 31, 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 March 31, April 30 and May 31, 2009
(Billions, except percentages)
Mar. 31, Apr. 30, May 31,
2009 2009 2009
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Cardmember lending - owned basis (a):
Total Loans $28.2 $27.1 $27.1
30 days past due loans as a % of total 5.1% 4.9% 4.7%
Average loans $28.9 $27.7 $27.1
Net write-off rate 8.6%(c) 10.4% 10.3%(c)
Cardmember lending - managed basis (b):
Total Loans $56.5 $55.4 $54.7
30 days past due loans as a % of total 5.1% 4.9% 4.7%
Average loans $57.1 $55.9 $55.0
Net write-off rate 8.8%(c) 10.1% 10.0%(c)
(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 and May 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 and May 2009 reflect the benefit of the sale
proceeds being treated as a partial recovery of such previously
written-off balances. The Company intends to continue this practice from
time to time as part of its strategy to recover value from written-off
loans.
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.
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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)
Feb. 25, 2009 Mar. 27, 2009 Apr. 27, 2009
through through through
Mar. 26, 2009 Apr. 26, 2009 May 26, 2009
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Ending total principal balance $36.0 $35.5 $34.9
Defaulted amount,
net of recoveries $0.3 $0.3 $0.3
Annualized default rate,
net of recoveries 9.7% 9.9% 10.4%
Total 30+ days delinquent $1.9 $1.8 $1.7
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; 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 ITS 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/ Carol V. Schwartz
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Name: Carol V. Schwartz
Title: Secretary
Date: June 15, 2009
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