American Express 2015 Annual Report Download - page 71

TABLE 7: SELECTED STATISTICAL INFORMATION
As of or for the Years Ended December 31,
(Millions, except percentages and where indicated) 2015 2014 2013 Change 2015 vs. 2014 Change 2014 vs. 2013
Worldwide Card Member receivables (a)
Total receivables (billions) .......................... $ 44.1 $ 44.9 $ 44.2 (2)% 2%
Loss reserves:
Beginning balance ................................. 465 386 428 20 (10)
Provisions (b) .................................... 737 792 648 (7) 22
Net write-offs(c) ................................. (713) (683) (669) 4 2
Other (d) ........................................ (27) (30) (21) (10) 43
Ending balance ................................... $ 462 $ 465 $ 386 (1)% 20%
% of receivables .................................. 1.0% 1.0% 0.9%
Net write-off rate — principal only — USCS/ICS (f) ..... 1.8% 1.7 (e)
Net write-off rate — principal and fees — USCS/ICS (f) .... 2.0% 1.9 (e)
30+ days past due as a % of total — USCS/ICS ........ 1.5% 1.6 (e)
Net loss ratio as a % of charge volume — GCS ......... 0.09% 0.09% 0.08%
90+ days past billing as a % of total — GCS ........... 0.9% 0.8% 0.9%
Worldwide Card Member loans (a)
Total loans (billions) ............................... $ 58.6 $ 70.4 $ 67.2 (17)% 5%
Loss reserves:
Beginning balance ................................. 1,201 1,261 1,471 (5) (14)
Provisions (b) .................................... 1,190 1,138 1,115 5 2
Net write-offs — principal only (c) .................. (967) (1,023) (1,141) (5) (10)
Net write-offs — interest and fees (c) ............... (162) (164) (150) (1) 9
Transfer of reserves on HFS loan portfolios ......... (224) —— — —
Other .......................................... (10) (11) (34) (9) (68)
Ending balance ................................... $1,028 $ 1,201 $ 1,261 (14) (5)
Ending reserves — principal ........................ $ 975 $ 1,149 $ 1,212 (15) (5)
Ending reserves — interest and fees ................. $53$52$49 2 6
% of loans ........................................ 1.8% 1.7% 1.9%
% of past due ..................................... 164% 167% 169%
Average loans (billions)(a) .......................... $ 67.9 $ 66.0 $ 63.3 3% 4%
Net write-off rate — principal only (f) ................. 1.4% 1.5% 1.8%
Net write-off rate — principal, interest and fees (f) ...... 1.7% 1.8% 2.0%
30+ days past due as a % of total .................... 1.1% 1.0% 1.1%
(a) Effective December 1, 2015, does not reflect the HFS portfolios.
(b) Provisions on principal and fee reserve components on Card Member receivables and provisions for principal, interest and/or fees on Card
Member loans.
(c) Write-offs, less recoveries.
(d) 2015 includes the impact of the transfer of the HFS receivables portfolio, which was not significant.
(e) Historically, net loss ratio as a % of charge volume and 90 days past billing as a % of receivables were presented for ICS. Beginning in the first
quarter 2014, as a result of system enhancements, 30 days past due as a % of total, net write-off rate (principal only) and net write-off rate
(principal and fees) have been presented.
(f) We present 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 we consider uncollectible interest and/or fees in our reserves for credit losses, a net write-off rate including principal, interest
and/or fees is also presented. The twelve months ended December 31, 2015 reflect the impact of a change in the timing of charge-offs for Card
Member receivables and loans in certain modification programs from 180 days past due to 120 days past due.
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