Card Member Receivables and Loans

6 Months Ended

Jun. 30, 2015

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.

The net volume of Card Member receivables purchased during the six months ended June 30, 2015 and 2014 was approximately $110 billion and $111 billion, respectively. As of June 30, 2015 and December 31, 2014, Credco Receivables Corporation (CRC) owned approximately $4.8 billion and $2.8 billion, respectively, of participation interests in Card Member receivables purchased without recourse from Receivables Financing Corporation VIII LLC (RFC VIII).

Card Member receivables as of June 30, 2015 and December 31, 2014 consisted of:

(Millions)		2015		2014
U.S. Card Services	$	4,800	$	2,755
International Card Services^(a)(b)		2,113		1,316
Global Commercial Services^(b)		11,856		10,436
Card Member receivables^(c)		18,769		14,507
Less: Reserve for losses		106		94
Card Member receivables, net^(d)	$	18,663	$	14,413

International is comprised of consumer and small business services.
In the first quarter of 2015, Credco restructured its Australian and New Zealand funding, resulting in an increase in Card Member receivables and related reserves with a corresponding decline in loans to affiliates.
Net of deferred discount revenue totaling $26 million and $16 million as of June 30, 2015 and December 31, 2014, respectively.
Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

The net volume of Card Member loans purchased during the six months ended June 30, 2015 and 2014 was $1.9 billion and $2.1 billion, respectively.

Card Member loans as of June 30, 2015 and December 31, 2014 consisted of:

(Millions)		2015		2014
International Card Services	$	417	$	401
Less: Reserve for losses		4		3
Card Member loans, net^(a)	$	413	$	398

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 June 30, 2015 and December 31, 2014:

					30-59		60-89
					Days		Days		90+ Days
2015 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Card Services	$	4,762	$	17	$	8	$	13	$	4,800
	International Card Services		2,088		9		6		10		2,113
	Global Commercial Services^(a)		(b)		(b)		(b)		86		11,856
Card Member Loans:
	International Card Services	$	414	$	1	$	1	$	1	$	417

					30-59		60-89
					Days		Days		90+ Days
2014 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Card Services	$	2,729	$	12	$	5	$	9	$	2,755
	International Card Services		1,296		8		4		8		1,316
	Global Commercial Services^(a)		(b)		(b)		(b)		89		10,436
Card Member Loans:
	International Card Services	$	399	$	1	$	―	$	1	$	401

For Card Member receivables in Global Commercial Services (GCS), 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 six months ended June 30:

		2015				2014
				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. Card Services	0.99	%	0.79	%	1.16	%	0.97	%
	International Card Services	1.68	%	1.18	%	1.94	%	1.58	%
Card Member Loans:
	International Card Services	1.03	%	0.72	%	1.19	%	1.57	%

		2015				2014
		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 Commercial Services	0.07	%	0.73	%	0.07	%	0.69	%

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.