Card Member Receivables and Loans

9 Months Ended

Sep. 30, 2016

Card Member Receivables and Loans [Abstract]

2. Card Member Receivables and Loans

American Express’ charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively. This Note is presented excluding amounts associated with the Card Member receivables HFS as of December 31, 2015; Credco did not have any Card Member receivables HFS as of September 30, 2016.

The net volume of Card Member receivables purchased during the nine months ended September 30, 2016 and 2015 was approximately $161 billion and $167 billion, respectively. As of September 30, 2016 and December 31, 2015, Credco Receivables Corporation (CRC) owned approximately $1.6 billion and $4.1 billion, respectively, of participation interests in Card Member receivables purchased without recourse from RFC VIII.

Card Member receivables as of September 30, 2016 and December 31, 2015 consisted of

(Millions)		2016		2015
U.S. Consumer Services	$	1,307	$	3,393
International Consumer and Network Services^(a)		1,482		1,484
Global Commercial Services^(b)		13,307		12,730
Card Member receivables^(c)		16,096		17,607
Less: Reserve for losses		106		114
Card Member receivables, net^(d)	$	15,990	$	17,493

Comprised of International consumer card business.
Comprised of Corporate and Small Business Services.
Net of deferred discount revenue totaling $25 million and $22 million as of September 30, 2016 and December 31, 2015, respectively.
Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

The net volume of Card Member loans purchased during the nine months ended September 30, 2016 and 2015 was $3.0 billion and $2.9 billion, respectively.

Card Member loans as of September 30, 2016 and December 31, 2015 consisted of:

(Millions)		2016		2015
International Consumer and Network Services^(a)	$	431	$	435
Less: Reserve for losses		4		4
Card Member loans, net^(b)	$	427	$	431

Comprised of International consumer card business.
Card Member loans modified in a TDR program were immaterial.

Card Member Receivables and Loans Aging

Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member receivables and Card Member loans as of September 30, 2016 and December 31, 2015:

					30-59		60-89
					Days		Days		90+ Days
2016(Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer Services	$	1,298	$	4	$	2	$	3	$	1,307
	International Consumer and Network Services		1,462		7		4		9		1,482
	Global Commercial Services
	Global Small Business Services		1,050		4		1		3		1,058
	Global Corporate Payments^(a)		(b)		(b)		(b)		94		12,249
Card Member Loans:
	International Consumer and Network Services	$	428	$	1	$	1	$	1	$	431

					30-59		60-89
					Days		Days		90+ Days
2015(Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer Services	$	3,371	$	9	$	4	$	9	$	3,393
	International Consumer and Network Services		1,462		8		4		10		1,484
	Global Commercial Services
	Global Small Business Services		1,380		5		3		6		1,394
	Global Corporate Payments^(a)		(b)		(b)		(b)		93		11,336
Card Member Loans:
	International Consumer and Network Services	$	432	$	1	$	1	$	1	$	435

For Global Corporate Payments Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if collection procedures are initiated on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes.
Delinquency data for periods other than 90 days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

Credit Quality Indicators for Card Member Receivables and Loans

The following tables present the key credit quality indicators as of or for the nine months ended September 30:

		2016				2015
				30+ Days				30+ Days
		Net		Past Due		Net		Past Due
		Write-off		as a % of		Write-off		as a % of
		Rate	^(a)	Total		Rate	^(a)	Total
Card Member Receivables:
	U.S. Consumer Services	0.59	%	0.69	%	0.81	%	0.83	%
	International Consumer and Network Services	1.95	%	1.35	%	1.76	%	1.67	%
	Global Small Business Services	1.01	%	0.76	%	1.00	%	1.06	%
Card Member Loans:
	International Consumer and Network Services	1.24	%	0.70	%	1.03	%	0.51	%

		2016				2015
		Net Loss		90+ Days		Net Loss		90+ Days
		Ratio as a		Past		Ratio as a		Past
		% of		Billing		% of		Billing
		Charge		as a % of		Charge		as a % of
		Volume	^(b)	Receivables		Volume	^(b)	Receivables
Card Member Receivables:
	Global Corporate Payments	0.06	%	0.77	%	0.07	%	0.71	%

Represents the amount of Card Member receivables or Card Member loans owned by Credco that is written off, net of recoveries, expressed as a percentage of the average Card Member receivables or Card Member loans balances in each of the periods presented.
Represents the amount of Card Member receivables owned by Credco that is written off, net of recoveries, expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods presented.