EX-99.1 8 ex_991.txt EXHIBIT 99.1 EXHIBIT 99.1 The following is a presentation of historical Consolidated Statements of Income for American Express Company and its Travel Related Services (TRS) segment after applying reclassifications related to securitization activity, other revenues and other expenses. Management believes this presentation better emphasizes various revenue and expense impacts to the Company and is more consistent with industry practice. American Express Company Consolidated Statements of Income (Dollars in millions) (Unaudited)
Quarter Ended Quarters Ended Year Ended --------- ------------------------------------------------------ ------------ March 31, March 31, June 30, September 30, December 31, December 31, 2003 2002 2002 2002 2002 2002 (audited) Revenues: Discount revenue $ 1,976 $ 1,845 $ 1,997 $ 1,967 $ 2,122 $ 7,931 Interest and dividends, net 767 758 658 759 816 2,991 Management and distribution fees 520 597 609 551 528 2,285 Cardmember lending net finance charge revenue 508 449 411 380 430 1,670 Net card fees 451 423 429 439 435 1,726 Travel commissions and fees 340 328 369 342 369 1,408 Other commissions and fees(1) 497 453 480 490 505 1,928 Insurance and annuity revenues(2) 314 287 311 303 317 1,218 Securitization income, net(3) 255 231 354 298 324 1,207 Other 395 388 327 378 350 1,443 --------- --------- -------- ------------- ------------ ------------ Total 6,023 5,759 5,945 5,907 6,196 23,807 --------- --------- -------- ------------- ------------ ------------ Expenses: Human resources 1,490 1,478 1,454 1,414 1,379 5,725 Provision for losses and benefits: Annuities and investment certificates 314 299 277 305 336 1,217 Life insurance, international banking and other 257 262 257 258 263 1,040 Charge card 208 252 280 191 237 960 Cardmember lending 331 346 290 319 414 1,369 Marketing, promotion, rewards and cardmember services (4) 775 717 775 805 822 3,119 Professional services 498 392 484 521 624 2,021 Occupancy and equipment 338 369 328 349 412 1,458 Interest 230 271 277 264 270 1,082 Communications 131 124 128 126 136 514 Restructuring charges - (13) (6) (2) 14 (7) Disaster recovery charge - - (7) - - (7) Other 455 404 447 398 340 1,589 --------- --------- -------- ------------- ------------ ------------ Total 5,027 4,901 4,984 4,948 5,247 20,080 --------- --------- -------- ------------- ------------ ------------ Pretax income 996 858 961 959 949 3,727 Income tax provision 304 240 278 272 266 1,056 --------- --------- -------- ------------- ------------ ------------ Net income $ 692 $ 618 $ 683 $ 687 $ 683 $ 2,671 ========= ========= ======== ============= ============ ============
(1) Reduced for fees related to securitization activity previously included in this item, which were netted in cardmember lending net finance charge revenue. (2) Includes insurance and annuity policyholder and contractholder revenues previously included in other revenues. (3) Includes discounts related to securitized loans outstanding previously included in other revenues. (4) Includes rewards and cardmember services expenses previously included in other expenses. 1 American Express Company Consolidated Statements of Income (Dollars in millions) (Unaudited)
Quarters Ended Year Ended -------------------------------------------------- ------------ March 31, June 30, September 30, December 31, December 31, 2001 2001 2001 2001 2001 (audited) Revenues: Discount revenue $ 1,925 $ 2,007 $ 1,870 $ 1,913 $ 7,714 Interest and dividends, net 611 12 736 777 2,137 Management and distribution fees 638 623 595 603 2,458 Cardmember lending net finance charge revenue 364 373 405 435 1,577 Net card fees 422 404 423 426 1,675 Travel commissions and fees 418 427 358 334 1,537 Other commissions and fees(1) 488 486 474 488 1,935 Insurance and annuity revenues(2) 246 254 278 285 1,063 Securitization income, net(3) 217 281 225 250 973 Other 390 401 360 360 1,513 --------- -------- ------------- ------------ ------------ Total 5,719 5,268 5,724 5,871 22,582 --------- -------- ------------- ------------ ------------ Expenses: Human resources 1,668 1,650 1,540 1,412 6,271 Provision for losses and benefits: Annuities and investment certificates 319 352 313 333 1,318 Life insurance, international banking and other 198 193 247 271 909 Charge card 249 319 284 343 1,195 Cardmember lending 287 346 302 383 1,318 Marketing, promotion, rewards and cardmember services (4) 653 686 690 689 2,718 Professional services 375 412 413 451 1,651 Occupancy and equipment 371 395 398 410 1,574 Interest 361 412 385 342 1,501 Communications 130 133 125 140 528 Restructuring charges - - 326 279 605 Disaster recovery charge - - 90 - 90 Other 367 217 257 471 1,308 --------- -------- ------------- ------------ ------------ Total 4,978 5,115 5,370 5,524 20,986 --------- -------- ------------- ------------ ------------ Pretax income 741 153 354 347 1,596 Income tax provision 203 (25) 56 50 285 --------- -------- ------------- ------------ ------------ Net income $ 538 $ 178 $ 298 $ 297 $ 1,311 ========= ======== ============= ============ ============
(1) Reduced for fees related to securitization activity previously included in this item, which were netted in cardmember lending net finance charge revenue. (2) Includes insurance and annuity policyholder and contractholder revenues previously included in other revenues. (3) Includes discounts related to securitized loans outstanding previously included in other revenues. (4) Includes rewards and cardmember services expenses previously included in other expenses. 2 Travel Related Services Consolidated Statements of Income (Dollars in millions) (Unaudited)
Quarter Ended Quarters Ended Year Ended ----------- --------------------------------------------------------- ------------- March 31, March 31, June 30, September 30, December 31, December 31, 2003 2002 2002 2002 2002 2002 (audited) Net Revenues: Discount revenue $ 1,976 $ 1,845 $ 1,997 $ 1,967 $ 2,122 $ 7,931 Net card fees 451 423 429 439 435 1,726 Lending: Finance charge revenue 637 576 538 504 562 2,180 Interest expense 129 127 127 124 132 510 ----------- ----------- ---------- -------------- ----------------------------- Net finance charge revenue 508 449 411 380 430 1,670 Travel commissions and fees 340 328 369 342 369 1,408 Other commissions and fees (1),(2) 464 442 448 467 476 1,833 Travelers Cheque investment income 92 90 95 96 94 375 Securitization income, net (3) 255 231 354 298 324 1,207 Other revenues 400 391 359 406 415 1,571 ----------- ----------- ---------- -------------- ----------------------------- Total net revenues 4,486 4,199 4,462 4,395 4,665 17,721 ----------- ----------- ---------- -------------- ----------------------------- Expenses: Marketing, promotion, rewards and cardmember services (4) 761 681 754 796 796 3,027 Provision for losses and claims: Charge card 208 252 280 191 237 960 Lending 331 346 290 319 414 1,369 Other 31 48 37 38 26 149 ----------- ----------- ---------- -------------- ----------------------------- Total 570 646 607 548 677 2,478 Charge card interest expense 209 244 256 249 252 1,001 Human resources 916 901 879 871 852 3,503 Other operating expenses 1,172 1,074 1,150 1,133 1,279 4,636 Restructuring charges - (13) (6) - 15 (4) ----------- ----------- ---------- -------------- ----------------------------- Total expenses 3,628 3,533 3,640 3,597 3,871 14,641 ----------- ----------- ---------- -------------- ----------------------------- Pretax income 858 666 822 798 794 3,080 Income tax provision 274 199 257 245 244 945 ----------- ----------- ---------- -------------- ----------------------------- Net income $ 584 $ 467 $ 565 $ 553 $ 550 $ 2,135 =========== =========== ========== ============== =============================
(1) Reduced for fees related to securitization activity previously included in this item, which were netted in cardmember lending net finance charge revenue. (2) Represents other commissions and fees previously included in other revenues. (3) Includes discounts related to securitized loans outstanding previously included in other revenues. (4) Includes rewards and cardmember services expenses previously included in other operating expenses. 3 Travel Related Services Consolidated Statements of Income (Dollars in millions) (Unaudited)
Quarters Ended Year Ended -------------------------------------------------------------------- -------------- March 31, June 30, September 30, December 31, December 31, 2001 2001 2001 2001 2001 (audited) Net Revenues: Discount revenue $ 1,925 $ 2,007 $ 1,870 $ 1,913 $ 7,714 Net card fees 422 404 423 426 1,675 Lending: Finance charge revenue 639 631 638 608 2,516 Interest expense 275 258 234 173 939 --------------- --------------- --------------- ------------- -------------- Net finance charge revenue 364 373 404 435 1,577 Travel commissions and fees 418 427 358 334 1,537 Other commissions and fees (1), (2) 450 463 476 472 1,861 Travelers Cheque investment income 98 100 103 94 394 Securitization income, net (3) 217 281 225 250 973 Other revenues 432 441 369 383 1,628 --------------- --------------- --------------- ------------- -------------- Total net revenues 4,326 4,496 4,228 4,307 17,359 --------------- --------------- --------------- ------------- -------------- Expenses: Marketing, promotion, rewards and cardmember services (4) 636 674 677 667 2,654 Provision for losses and claims: Charge card 249 319 284 343 1,195 Lending 287 346 302 381 1,318 Other 24 25 34 81 164 --------------- --------------- --------------- ------------- -------------- Total 560 690 620 805 2,677 Charge card interest expense 349 387 369 339 1,443 Human resources 1,034 1,053 987 918 3,992 Net discount expense 113 (17) - - 96 Other operating expenses 897 979 985 1,163 4,025 Restructuring charges - - 195 219 414 Disaster recovery charges - - 79 - 79 --------------- --------------- --------------- ------------- -------------- Total expenses 3,589 3,766 3,912 4,111 15,380 --------------- --------------- --------------- ------------- -------------- Pretax income 737 730 316 196 1,979 Income tax provision 215 211 68 26 520 --------------- --------------- --------------- ------------- -------------- Net income $ 522 $ 519 $ 248 $ 170 $ 1,459 =============== =============== =============== ============= ==============
(1) Reduced for fees related to securitization activity previously included in this item, which were netted in cardmember lending net finance charge revenue. (2) Represents other commissions and fees previously included in other revenues. (3) Includes discounts related to securitized loans outstanding previously included in other revenues. (4) Includes rewards and cardmember services expenses previously included in other operating expenses. 4