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AMERICAN EXPRESS COMPANY
2013 FINANCIAL REVIEW
TABLE 7: SELECTED STATISTICAL INFORMATION
As of or for the Years Ended December 31,
(Millions, except percentages and where indicated) 2013 2012 2011
Change
2013 vs. 2012
Change
2012 vs. 2011
Worldwide Card Member receivables
Total receivables (billions) $ 44.2 $ 42.8 $ 40.9 3% 5%
Loss reserves:
Beginning balance 428 438 386 (2) 13
Provisions(a) 647 601 603 8 —
Other additions(b) 142 141 167 1 (16)
Net write-offs(c) (669) (640) (560) 5 14
Other deductions(d) (162) (112) (158) 45 (29)
Ending balance $ 386 $ 428 $ 438 (10)% (2)%
% of receivables 0.9% 1.0% 1.1%
Net write-off rate – principal only – USCS(e) 1.7% 1.9% 1.7%
Net write-off rate – principal and fees – USCS(e) 1.9% 2.1% 1.9%
30 days past due as a % of total – USCS 1.6% 1.8% 1.9%
Net loss ratio as a % of charge volume – ICS/GCS 0.12% 0.10% 0.09%
90 days past billing as a % of total – ICS/GCS 1.0% 0.9% 0.9%
Worldwide Card Member loans
Total loans (billions) $ 67.2 $ 65.2 $ 62.6 3% 4%
Loss reserves:
Beginning balance 1,471 1,874 3,646 (22) (49)
Provisions(a) 1,114 1,031 145 8 #
Other additions(b) 115 118 108 (3) 9
Net write-offs – principal only(c) (1,141) (1,280) (1,720) (11) (26)
Net write-offs – interest and fees(c) (150) (157) (201) (4) (22)
Other deductions(d) (148) (115) (104) 29 11
Ending balance $ 1,261 $ 1,471 $ 1,874 (14) (22)
Ending reserves – principal only $ 1,212 $ 1,423 $ 1,818 (15) (22)
Ending reserves – interest and fees $ 49 $ 48 $ 56 2 (14)
% of loans 1.9% 2.3% 3.0%
% of past due 169% 182% 206%
Average loans (billions) $ 63.3 $ 61.5 $ 59.1 3% 4%
Net write-off rate – principal only(e) 1.8% 2.1% 2.9%
Net write-off rate – principal, interest and fees(e) 2.0% 2.3% 3.3%
30 days past due as a % of total 1.1% 1.2% 1.5%
Net interest income divided by average loans(f) 8.0% 7.5% 7.4%
Net interest yield on Card Member loans(f) 9.3% 9.1% 9.1%
# Denotes a variance greater than 100 percent.
(a) Provisions for principal (resulting from authorized transactions), interest and/or fees on Card Member loans and principal (resulting from authorized transactions)
and fee reserve components on Card Member receivables.
(b) Provisions for unauthorized transactions.
(c) Net write-offs, less recoveries.
(d) For Card Member receivables, includes net write-offs resulting from unauthorized transactions of $(160) million, $(141) million and $(161) million for the years ended
December 31, 2013, 2012 and 2011, respectively; foreign currency translation adjustments of $(4) million, $2 million and $(2) million for the years ended
December 31, 2013, 2012 and 2011, respectively; a reclassification of Card Member bankruptcy reserves of $18 million from other liabilities to credit reserves in 2012;
and other items of $2 million, $9 million and $5 million for the years ended December 31, 2013, 2012 and 2011, respectively. For Card Member loans, includes net
write-offs for unauthorized transactions of $(130) million, $(116) million and $(103) million for the years ended December 31, 2013, 2012 and 2011, respectively;
foreign currency translation adjustments of $(12) million, $7 million and $(2) million for the years ended December 31, 2013, 2012 and 2011, respectively; a
reclassification of Card Member bankruptcy reserves of $4 million from other liabilities to credit reserves in 2012; and other items of $(6) million, $(10) million and $1
million for the years ended December 31, 2013, 2012 and 2011, respectively.
(e) The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition,
because the Company’s practice is to include uncollectible interest and/or fees as part of its total provision for losses, a net write-off rate including principal, interest
and/or fees is also presented.
(f) Refer to the following table for the calculation of net interest yield on Card Member loans, a non-GAAP measure, net interest income divided by average loans, a GAAP
measure, and the Company’s rationale for presenting net interest yield on Card Member loans.
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