Summary
This filing provides an update on American Express's U.S. Card Services (USCS) operating segment, specifically focusing on delinquency and write-off statistics for Card Member loans held for investment as of October, November, and December 2015. A significant operational change noted is the reclassification of Card Member loans related to co-brand partnerships with Costco and JetBlue from "held for investment" to "held for sale" effective December 1, 2015. This reclassification impacts the reported loan figures for December 2015, as these portfolios are no longer included in the "held for investment" data. The company also provides an update on the expected timelines for the sale of these portfolios. The sale of the Costco portfolio is anticipated to close mid-year 2016, subject to ongoing discussions, while the JetBlue portfolio sale is expected to be finalized in the first quarter of 2016, pending customary closing conditions. The filing also includes performance data for the American Express Credit Account Master Trust, which may differ from USCS loan performance due to various factors, including loan mix and calculation methodologies.
Key Highlights
- 1Reclassification of Costco and JetBlue co-brand loan portfolios from "held for investment" to "held for sale" as of December 1, 2015.
- 2The Costco portfolio had $14.0 billion and the JetBlue portfolio had $1.1 billion in outstanding balances as of December 31, 2015, prior to their sale inclusion.
- 3The sale of the Costco portfolio is expected to close mid-year 2016, contingent on discussions.
- 4The sale of the JetBlue portfolio is expected to close in Q1 2016, subject to closing conditions.
- 5For USCS Card Member loans held for investment, 30-day past due rates remained stable at 1.0% from October to December 2015.
- 6Net write-off rates for USCS Card Member loans held for investment were 1.3% for October and the three months ended December 2015, and 1.4% for November and December 2015.
- 7The filing distinguishes between the credit performance of USCS loans held for investment and the American Express Credit Account Master Trust, noting potential differences in reporting due to loan characteristics and calculation methods.