Card Member Receivables and Loans

3 Months Ended

Mar. 31, 2017

Card Member Receivables and Loans [Abstract]

2. Card Member Receivables and Loans

American Express’ charge and credit 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 March 31, 2016; Credco did not have any Card Member receivables HFS as of March 31, 2017 and December 31, 2016.

The net volume of Card Member receivables purchased during the three months ended March 31, 2017 and 2016 was approximately $61 billion and $57 billion, respectively. As of March 31, 2017 and December 31, 2016, Credco Receivables Corporation (CRC) owned approximately $4.6 billion and $4.0 billion, respectively, of participation interests in Card Member receivables purchased without recourse from RFC VIII.

Card Member receivables as of March 31, 2017 and December 31, 2016 consisted of

(Millions)		2017		2016
U.S. Consumer Services	$	3,968	$	3,518
International Consumer and Network Services^(a)		1,557		1,526
Global Commercial Services^(b)		14,341		13,174
Card Member receivables^(c)		19,866		18,218
Less: Reserve for losses		128		110
Card Member receivables, net^(d)	$	19,738	$	18,108

Comprised of International consumer card business.
Comprised of Corporate and Small Business Services.
Net of deferred discount revenue totaling $30 million and $27 million as of March 31, 2017 and December 31, 2016, respectively.
Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

The net volume of Card Member loans purchased during the three months ended March 31, 2017 and 2016 was $1.1 billion and $1.0 billion, respectively.

Card Member loans as of March 31, 2017 and December 31, 2016 consisted of:

(Millions)		2017		2016
International Consumer and Network Services^(a)	$	460	$	476
Less: Reserve for losses		5		5
Card Member loans, net^(b)	$	455	$	471

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 March 31, 2017 and December 31, 2016:

					30-59		60-89
					Days		Days		90+ Days
2017(Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer Services	$	3,937	$	13	$	7	$	11	$	3,968
	International Consumer and Network Services		1,538		8		3		8		1,557
	Global Commercial Services
	Global Small Business Services		1,345		8		3		5		1,361
	Global Corporate Payments^(a)		(b)		(b)		(b)		96		12,980
Card Member Loans:
	International Consumer and Network Services	$	456	$	1	$	1	$	2	$	460

					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	$	3,501	$	9	$	3	$	5	$	3,518
	International Consumer and Network Services		1,506		6		4		10		1,526
	Global Commercial Services
	Global Small Business Services		1,202		9		2		5		1,218
	Global Corporate Payments^(a)		(b)		(b)		(b)		108		11,956
Card Member Loans:
	International Consumer and Network Services	$	472	$	1	$	1	$	2	$	476

For Global Corporate Payments Card Member receivables in Global Commercial Services, 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 three months ended March 31:

		2017				2016
				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	0.57	%	0.78	%	0.69	%	0.71	%
	International Consumer and Network Services	1.82	%	1.22	%	1.98	%	1.57	%
	Global Small Business Services	0.88	%	1.18	%	1.11	%	1.05	%
Card Member Loans:
	International Consumer and Network Services	0.84	%	0.87	%	0.92	%	0.94	%

		2017				2016
		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	0.08	%	0.74	%	0.05	%	0.72	%

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