American Express 2002 Annual Report Download - page 42

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I40 AXP IFINANCIAL REVIEW
SELECTED STATISTICAL INFORMATION (continued)
(Billions, except percentages and where indicated)
Years Ended December 31, 2002 2001 2000
Charge card receivables:
Total receivables $ 26.3 $ 26.2 $ 29.0
90 days past due as a % of total 2.2% 2.9% 2.3%
Loss reserves (millions) $ 930 $ 1,032 $ 964
% of receivables 3.5% 3.9% 3.3%
% of 90 days past due 162% 136% 142%
Net loss ratio 0.38% 0.42% 0.36%
U.S. Lending —Owned Basis:
Total loans $ 17.1 $ 16.9 $ 17.4
Past due loans as a % of total:
30 – 89 days 2.0% 2.0% 1.7%
90+ days 1.3% 1.3% 0.8%
Loss reserves (millions):
Beginning balance $ 668 $ 553 $ 505
Provision 954 998 663
Net charge-offs/other (824) (883) (615)
Ending balance $ 798 $ 668 $ 553
% of loans 4.7% 3.9% 3.2%
% of past due 143% 120% 124%
Average loans $ 15.3 $ 16.9 $ 14.9
Net write-off rate 5.9% 5.5% 4.4%
U.S. Lending —Managed Basis:
Total loans $ 34.3 $ 32.0 $ 28.7
Past due loans as a % of total:
30 – 89 days 1.9% 2.1% 1.9%
90+ days 1.2% 1.2% 0.9%
Loss reserves (millions):
Beginning balance $ 1,077 $ 820 $ 672
Provision 2,053 1,933 1,258
Net charge-offs/other (1,833) (1,676) (1,110)
Ending balance $ 1,297 $ 1,077 $ 820
% of loans 3.8% 3.4% 2.9%
% of past due 120% 101% 104%
Average loans $ 32.0 $ 30.7 $ 25.8
Net write-off rate 6.0% 5.6% 4.4%
Net interest yield 9.8% 8.8% 7.6%
TRS’ owned portfolio is primarily comprised of cardmember receivables generated by the company’s charge card products,
unsecuritized U.S. cardmember loans, international cardmember loans and unsecuritized equipment leasing receivables.
As discussed more fully in Financing Activities, the company securitizes U.S. cardmember loans as part of its financing
strategy; consequently, the level of unsecuritized U.S. cardmember loans is primarily a function of the company’s financing
requirements. As a portfolio, unsecuritized U.S. cardmember loans tend to be less seasoned than securitized loans, primarily
because of the lead time required to designate and securitize each loan. The company does not securitize international loans.
Delinquency, reserve coverage and net write-off rates have historically been generally comparable between the company’s
owned and managed portfolios.