American Express 1998 Annual Report Download - page 41

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39
The following table presents changes in Reserves for
Credit Losses related to loans:
NOTE 3 LOANS
NOTE 4 SHORT- AND LONG-TERM DEBT AND BORROWING AGREEMENTS
Loans at December 31 consisted of:
(millions) 1998 1997
Cardmember and Consumer Loans $ 16,765 $ 14,981
Commercial Loans:
Commercial and industrial 2,265 2,793
Mortgage and real estate 516 490
Loans to banks and other institutions 1,649 1,966
Other, principally policyholders’ loans 671 586
21,866 20,816
Less: Reserves for credit losses 812 707
Total $ 21,054 $ 20,109
Note: American Express Financial Advisors (AEFA) mortgage loans of $3.8 billion in 1998 and 1997 are included in Investment Mortgage Loans and are shown in Note 2.
(millions) 1998 1997
Balance, January 1 $707 $601
Provision for credit losses 1,165 837
Write-offs (1,134) (890)
Recoveries of amounts previously written-off 74 159
Balance, December 31 $812 $707
SHORT-TERM DEBT
At December 31, 1998 and 1997, the Company’s total
short-term debt outstanding was $22.6 billion and
$20.6 billion, respectively, with weighted average interest
rates of 5.68% and 6.12%, respectively. At December 31,
1998 and 1997, $0.5 billion and $1.6 billion, respec-
tively, of short-term debt outstanding was covered by
interest rate swaps. The year-end weighted average effec-
tive interest rates were 5.68% and 6.17% for 1998 and
1997, respectively. The Company generally paid float-
ing rates of interest under the terms of interest rate
swaps. Unused lines of credit to support commercial
paper borrowing were approximately $8.2 billion at
December 31, 1998.