EXHIBIT 99.2

All information in the following tables is presented on a basis prepared in accordance with U.S. generally accepted accounting principles (GAAP), unless otherwise indicated.

(Preliminary)

American Express Company

Consolidated Statements of Income

(Millions)

	Quarters Ended								Six Months Ended
	June 30,					Percentage			June 30,					Percentage
	2010		2009			Inc/(Dec)			2010		2009			Inc/(Dec)
Revenues
Non-interest revenues
Discount revenue	$	3,734	$	3,305			13	%	$	7,200	$	6,371			13	%
Net card fees		520		532			(2	)		1,041		1,064			(2	)
Travel commissions and fees		434		407			7			820		772			6
Other commissions and fees		497		439			13			997		892			12
Securitization income, net (A)		N/A		(2	)		—			N/A		139			—
Other		485		670			(28	)		911		1,120			(19	)
Total non-interest revenues		5,670		5,351			6			10,969		10,358			6
Interest income
Interest and fees on loans		1,657		1,081			53			3,432		2,373			45
Interest and dividends on investment securities		125		196			(36	)		242		350			(31	)
Deposits with banks and other		16		11			45			29		39			(26	)
Total interest income		1,798		1,288			40			3,703		2,762			34
Interest expense
Deposits		137		105			30			265		190			39
Short-term borrowings		1		7			(86	)		2		34			(94	)
Long-term debt and other		472		435			9			941		878			7
Total interest expense		610		547			12			1,208		1,102			10
Net interest income		1,188		741			60			2,495		1,660			50
Total revenues net of interest expense		6,858		6,092			13			13,464		12,018			12
Provisions for losses
Charge card		96		237			(59	)		323		573			(44	)
Cardmember loans		540		1,303			(59	)		1,228		2,717			(55	)
Other		16		44			(64	)		44		97			(55	)
Total provisions for losses		652		1,584			(59	)		1,595		3,387			(53	)
Total revenues net of interest expense after provisions for losses		6,206		4,508			38			11,869		8,631			38
Expenses
Marketing and promotion		802		352			#			1,397		697			100
Cardmember rewards		1,198		1,029			16			2,416		1,875			29
Cardmember services		122		131			(7	)		271		242			12
Salaries and employee benefits		1,315		1,370			(4	)		2,642		2,623			1
Professional services		636		599			6			1,197		1,118			7
Occupancy and equipment		379		392			(3	)		763		750			2
Communications		97		106			(8	)		192		210			(9	)
Other, net		62		111			(44	)		144		154			(6	)
Total		4,611		4,090			13			9,022		7,669			18
Pretax income from continuing operations		1,595		418			#			2,847		962			#
Income tax provision		578		76			#			945		177			#
Income from continuing operations		1,017		342			#			1,902		785			#
Loss from discontinued operations, net of tax		—		(5	)		#			—		(11	)		#
Net income	$	1,017	$	337			#		$	1,902	$	774			#
Income from continuing operations attributable to common shareholders (B)	$	1,004	$	107			#		$	1,877	$	474			#
Net income attributable to common shareholders (B)	$	1,004	$	102			#		$	1,877	$	463			#

# - Denotes a variance of more than 100%.

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(B) Represents income from continuing operations or net income, as applicable, less (i) accelerated preferred dividend accretion of $212 million for the three and six months ended June 30, 2009 due to the repurchase of $3.39 billion of preferred shares issued as part of the Capital Purchase Program (CPP), (ii) preferred shares dividends and related accretion of $22 million and $94 million for the three and six months ended June 30, 2009, and (iii) earnings allocated to participating share awards and other items of $13 million and $1 million for the three months ended June 30, 2010 and 2009, respectively, and $25 million and $5 million for the six months ended June 30, 2010 and 2009, respectively.

-1-

(Preliminary)

American Express Company

Condensed Consolidated Balance Sheets

(Billions)

	June 30,		December 31,
	2010		2009
Assets
Cash	$	21	$	16
Accounts receivable		37		38
Investment securities		17		24
Loans		53		30
Other assets		16		16
Total assets	$	144	$	124
Liabilities and Shareholders’ Equity
Customer deposits	$	28	$	26
Short-term borrowings		3		2
Long-term debt		69		52
Other liabilities		29		30
Total liabilities		129		110
Shareholders’ equity		15		14
Total liabilities and shareholders’ equity	$	144	$	124

-2-

(Preliminary)

American Express Company

Financial Summary

(Millions)

	Quarters Ended									Six Months Ended
	June 30,						Percentage			June 30,						Percentage
	2010			2009			Inc/(Dec)			2010			2009			Inc/(Dec)
Total revenues net of interest expense
U.S. Card Services	$	3,645		$	2,881			27	%	$	7,183		$	5,983			20	%
International Card Services		1,108			1,113			—			2,247			2,157			4
Global Commercial Services		1,084			998			9			2,106			1,936			9
Global Network & Merchant Services		1,068			916			17			2,065			1,773			16
		6,905			5,908			17			13,601			11,849			15
Corporate & Other, including adjustments and eliminations		(47	)		184			#			(137	)		169			#
CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	6,858		$	6,092			13		$	13,464		$	12,018			12
Pretax income (loss) from continuing operations
U.S. Card Services	$	828		$	(256	)		#		$	1,505		$	(278	)		#
International Card Services		201			71			#			385			100			#
Global Commercial Services		240			94			#			376			216			74
Global Network & Merchant Services		417			366			14			832			752			11
		1,686			275			#			3,098			790			#
Corporate & Other		(91	)		143			#			(251	)		172			#
PRETAX INCOME FROM CONTINUING OPERATIONS	$	1,595		$	418			#		$	2,847		$	962			#
Net income (loss)
U.S. Card Services	$	522		$	(153	)		#		$	950		$	(160	)		#
International Card Services		160			78			#			311			130			#
Global Commercial Services		117			67			75			209			148			41
Global Network & Merchant Services		269			239			13			536			489			10
		1,068			231			#			2,006			607			#
Corporate & Other		(51	)		111			#			(104	)		178			#
Income from continuing operations		1,017			342			#			1,902			785			#
Loss from discontinued operations, net of tax		—			(5	)		#			—			(11	)		#
NET INCOME	$	1,017		$	337			#		$	1,902		$	774			#

# - Denotes a variance of more than 100%.

-3-

(Preliminary)

American Express Company

Financial Summary (continued)

	Quarters Ended							Six Months Ended
	June 30,				Percentage			June 30,					Percentage
	2010		2009		Inc/(Dec)			2010		2009			Inc/(Dec)
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations attributable to common shareholders	$	0.84	$	0.09		#	%	$	1.58	$	0.41			#	%
Loss from discontinued operations		—		—		—			—		(0.01	)		#
Net income attributable to common shareholders	$	0.84	$	0.09		#	%	$	1.58	$	0.40			#	%
Average common shares outstanding (millions)		1,190		1,162		2	%		1,188		1,159			3	%
DILUTED
Income from continuing operations attributable to common shareholders	$	0.84	$	0.09		#	%	$	1.57	$	0.41			#	%
Loss from discontinued operations		—		—		—			—		(0.01	)		#
Net income attributable to common shareholders	$	0.84	$	0.09		#	%	$	1.57	$	0.40			#	%
Average common shares outstanding (millions)		1,197		1,165		3	%		1,194		1,161			3	%
Cash dividends declared per common share	$	0.18	$	0.18		—	%	$	0.36	$	0.36			—	%

Selected Statistical Information

	Quarters Ended									Six Months Ended
	June 30,						Percentage			June 30,						Percentage
	2010			2009			Inc/(Dec)			2010			2009			Inc/(Dec)
Return on average equity (A)		23.5	%		13.2	%					23.5	%		13.2	%
Return on average common equity (A)		23.2	%		12.0	%					23.2	%		12.0	%
Return on average tangible common equity (A)		30.0	%		15.6	%					30.0	%		15.6	%
Common shares outstanding (millions)		1,202			1,189			1	%		1,202			1,189			1	%
Book value per common share	$	12.08		$	11.28			7	%	$	12.08		$	11.28			7	%
Shareholders’ equity (billions)	$	14.5		$	13.4			8	%	$	14.5		$	13.4			8	%

# - Denotes a variance of more than 100%.

(A) Refer to Appendix I for components of return on average equity, return on average common equity and return on average tangible common equity.

-4-

(Preliminary)

American Express Company

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2010			2009			Inc/(Dec)
Card billed business (A):
United States	$	119.7		$	104.8			14	%
Outside the United States		55.6			46.6			19
Total	$	175.3		$	151.4			16
Total cards-in-force (millions) (B):
United States		49.0			49.8			(2	)%
Outside the United States		39.9			38.7			3
Total		88.9			88.5			—
Basic cards-in-force (millions) (B):
United States		38.1			38.7			(2	)%
Outside the United States		35.2			33.9			4
Total		73.3			72.6			1
Average discount rate (C)		2.56	%		2.55	%
Average basic cardmember spending (dollars) (D)	$	3,288		$	2,712			21	%
Average fee per card (dollars) (D)	$	37		$	35			6	%
Average fee per card adjusted (dollars) (D)	$	41		$	39			5	%

(A)  Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on proprietary cards.  Card billed business is reflected in the United States or outside the United States based on where the cardmember is domiciled.

(B) Total cards-in-force represents the number of cards that are issued and outstanding.  Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include additional supplemental cards issued on that account.  Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee cardmembers.  Non-proprietary basic cards-in-force includes all cards that are issued and outstanding under network partnership agreements.

(C)  This calculation is designed to reflect pricing at merchants accepting general purpose American Express cards.  It represents the percentage of billed business (both proprietary and Global Network Services) retained by the Company from merchants it acquires, prior to payments to third parties unrelated to merchant acceptance.

(D)  Average basic cardmember spending and average fee per card are computed from proprietary card activities only.  Average fee per card is computed based on net card fees, including the amortization of deferred direct acquisition costs, plus card fees included in interest and fees on loans (including related amortization of deferred direct acquisition costs), divided by average worldwide proprietary cards-in-force.  The card fees related to cardmember loans included in interest and fees on loans were $48 million and $45 million for the quarters ended June 30, 2010 and 2009, respectively. The adjusted average fee per card is computed in the same manner, but excludes amortization of deferred direct acquisition costs (a portion of which is charge card related and included in net card fees and a portion of which is lending related and included in interest and fees on loans).  The amount of amortization excluded was $56 million and $62 million for the quarters ended June 30, 2010 and 2009, respectively.  The Company presents adjusted average fee per card because management believes that this metric presents a useful indicator of card fee pricing across a range of its proprietary card products.

-5-

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2010			2009			Inc/(Dec)
Worldwide cardmember receivables:
Total receivables	$	34.6		$	31.4			10	%
Loss reserves (millions):
Beginning balance	$	498		$	810			(39	)%
Provisions for losses on authorized transactions (A)		55			221			(75	)
Net write-offs		(121	)		(340	)		(64	)
Other		8			23			(65	)
Ending balance	$	440		$	714			(38	)
% of receivables		1.3	%		2.3	%
Net write-off rate - USCS		1.6	%		5.2	%
30 days past due as a % of total - USCS		1.5	%		2.6	%
Net loss ratio (as a % of charge volume) - ICS/GCS		0.10	%		0.27	%
90 days past billing as a % of total - ICS/GCS		1.0	%		2.3	%
Worldwide cardmember loans - (GAAP basis portfolio) (B):
Total loans	$	57.3		$	32.5			76	%
30 days past due loans as a % of total		2.8	%		4.3	%
Loss reserves (millions):
Beginning balance	$	5,314		$	3,013			76	%
Adoption of new GAAP consolidation standard		N/A			N/A
Provisions for losses on authorized transactions		520			1,291			(60	)
Net write-offs - principal		(867	)		(847	)		2
Net write-offs - interest and fees		(92	)		(131	)		(30	)
Other		(9	)		(107	)		(92	)
Ending balance	$	4,866		$	3,219			51
Ending Reserves - principal	$	4,743		$	3,035			56
Ending Reserves - interest and fees	$	123		$	184			(33	)
% of loans		8.5	%		9.9	%
% of past due		307	%		230	%
Average loans	$	57.5		$	35.2			63	%
Net write-off rate		6.0	%		9.6	%
Net interest income divided by average loans (C) (D)		8.3	%		8.4	%
Net interest yield on cardmember loans (C)		9.6	%		9.7	%
Worldwide cardmember loans - (managed basis portfolio) (E):
Total loans	$	57.3		$	62.9			(9	)%
30 days past due loans as a % of total		2.8	%		4.3	%
Net write-offs - principal (millions)	$	867		$	1,541			(44	)
Average loans	$	57.5		$	63.9			(10	)%
Net write-off rate		6.0	%		9.7	%
Net interest yield on cardmember loans (C)		9.6	%		10.1	%

# - Denotes a variance of more than 100%.

(A)  Represents loss provisions for cardmember receivables consisting of principal (resulting from authorized transactions) and fee reserve components. Adjustments to cardmember receivables resulting from unauthorized transactions have been reclassified from this line to “Other” for all periods presented.

(B) For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the “owned” basis presentation.  The information presented on a GAAP basis for the quarter ended June 30, 2009 includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of GAAP governing the accounting for transfers of financial assets and consolidation of variable interest entities (the “new GAAP”). Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 20 for a discussion of  GAAP basis information.

(C)  See Appendix III for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. The Company believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(D)  This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

(E)  For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans.  The adoption of new GAAP on January 1, 2010  resulted in accounting for both the Company’s securitized and non-securitized cardmember loans in the consolidated financial statements.  As a result, the Company’s 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable.  Refer to page 20 for a discussion of managed basis information.

-6-

(Preliminary)

American Express Company

Consolidated Statements of Income

(Millions)

	Quarters Ended
	June 30,		March 31,		December 31,		September 30,			June 30,
	2010		2010		2009		2009			2009
Revenues
Non-interest revenues
Discount revenue	$	3,734	$	3,466	$	3,645	$	3,373		$	3,305
Net card fees		520		521		549		538			532
Travel commissions and fees		434		386		439		383			407
Other commissions and fees		497		500		438		448			439
Securitization income, net (A)		N/A		N/A		190		71			(2	)
Other		485		426		518		449			670
Total non-interest revenues		5,670		5,299		5,779		5,262			5,351
Interest income
Interest and fees on loans		1,657		1,775		1,036		1,059			1,081
Interest and dividends on investment securities		125		117		225		229			196
Deposits with banks and other		16		13		11		9			11
Total interest income		1,798		1,905		1,272		1,297			1,288
Interest expense
Deposits		137		128		126		109			105
Short-term borrowings		1		1		1		2			7
Long-term debt and other		472		469		435		432			435
Total interest expense		610		598		562		543			547
Net interest income		1,188		1,307		710		754			741
Total revenues net of interest expense		6,858		6,606		6,489		6,016			6,092
Provisions for losses
Charge card		96		227		141		143			237
Cardmember loans		540		688		560		989			1,303
Other		16		28		47		46			44
Total provisions for losses		652		943		748		1,178			1,584
Total revenues net of interest expense after provision for losses		6,206		5,663		5,741		4,838			4,508
Expenses
Marketing and promotion		802		595		713		504			352
Cardmember rewards		1,198		1,218		1,178		983			1,029
Cardmember services		122		149		143		132			131
Salaries and employee benefits		1,315		1,327		1,196		1,261			1,370
Professional services		636		561		715		575			599
Occupancy and equipment		379		384		495		374			392
Communications		97		95		99		105			106
Other, net		62		82		241		(14	)		111
Total		4,611		4,411		4,780		3,920			4,090
Pretax income from continuing operations		1,595		1,252		961		918			418
Income tax provision		578		367		251		276			76
Income from continuing operations		1,017		885		710		642			342
Income (Loss) from discontinued operations, net of tax		—		—		6		(2	)		(5	)
Net income	$	1,017	$	885	$	716	$	640		$	337
Income from continuing operations attributable to common shareholders (B)	$	1,004	$	873	$	701	$	634		$	107
Net income attributable to common shareholders (B)	$	1,004	$	873	$	707	$	632		$	102

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(B) Represents income from continuing operations or net income, as applicable, less (i) accelerated preferred dividend accretion of $212 million for the quarter ended June 30, 2009 due to the repurchase of $3.39 billion of preferred shares issued as part of the Capital Purchase Program (CPP), (ii) preferred shares dividends and related accretion of $22 million for the quarter ended June 30, 2009 and (iii) earnings allocated to participating share awards and other items of $13 million for the quarter ended June 30, 2010, $12 million for the quarter ended March 31, 2010, $9 million for the quarter ended December 31, 2009, $8 million for the quarter ended September 30, 2009, and $1 million for the quarter ended June 30, 2009, respectively.

-7-

(Preliminary)

American Express Company

Financial Summary

(Millions)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Total revenues net of interest expense
U.S. Card Services	$	3,645		$	3,538		$	3,188		$	2,982		$	2,881
International Card Services		1,108			1,139			1,215			1,157			1,113
Global Commercial Services		1,084			1,022			1,072			975			998
Global Network & Merchant Services		1,068			997			1,031			976			916
		6,905			6,696			6,506			6,090			5,908
Corporate & Other, including adjustments and eliminations		(47	)		(90	)		(17	)		(74	)		184
CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	6,858		$	6,606		$	6,489		$	6,016		$	6,092
Pretax income (loss) from continuing operations
U.S. Card Services	$	828		$	677		$	646		$	218		$	(256	)
International Card Services		201			184			40			136			71
Global Commercial Services		240			136			141			148			94
Global Network & Merchant Services		417			415			322			371			366
		1,686			1,412			1,149			873			275
Corporate & Other		(91	)		(160	)		(188	)		45			143
PRETAX INCOME FROM CONTINUING OPERATIONS	$	1,595		$	1,252		$	961		$	918		$	418
Net income (loss)
U.S. Card Services	$	522		$	428		$	413		$	158		$	(153	)
International Card Services		160			151			69			133			78
Global Commercial Services		117			92			100			102			67
Global Network & Merchant Services		269			267			200			248			239
		1,068			938			782			641			231
Corporate & Other		(51	)		(53	)		(72	)		1			111
Income from continuing operations		1,017			885			710			642			342
Income (Loss) from discontinued operations, net of tax		—			—			6			(2	)		(5	)
NET INCOME	$	1,017		$	885		$	716		$	640		$	337

-8-

(Preliminary)

American Express Company

Financial Summary (continued)

	Quarters Ended
	June 30,		March 31,		December 31,		September 30,			June 30,
	2010		2010		2009		2009			2009
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations attributable to common shareholders	$	0.84	$	0.74	$	0.59	$	0.54		$	0.09
Income from discontinued operations		—		—		0.01		—			—
Net income attributable to common shareholders	$	0.84	$	0.74	$	0.60	$	0.54		$	0.09
Average common shares outstanding (millions)		1,190		1,185		1,179		1,178			1,162
DILUTED
Income from continuing operations attributable to common shareholders	$	0.84	$	0.73	$	0.59	$	0.54		$	0.09
Income (Loss) from discontinued operations		—		—		0.01		(0.01	)		—
Net income attributable to common shareholders	$	0.84	$	0.73	$	0.60	$	0.53		$	0.09
Average common shares outstanding (millions)		1,197		1,191		1,184		1,181			1,165
Cash dividends declared per common share	$	0.18	$	0.18	$	0.18	$	0.18		$	0.18

Selected Statistical Information

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Return on average equity (A)		23.5	%		18.0	%		14.6	%		11.7	%		13.2	%
Return on average common equity (A)		23.2	%		17.1	%		13.6	%		10.4	%		12.0	%
Return on average tangible common equity (A)		30.0	%		22.2	%		17.6	%		13.5	%		15.6	%
Common shares outstanding (millions)		1,202			1,198			1,192			1,189			1,189
Book value per common share	$	12.08		$	11.21		$	12.08		$	11.72		$	11.28
Shareholders’ equity (billions)	$	14.5		$	13.4		$	14.4		$	13.9		$	13.4

(A) Refer to Appendix I for components of return on average equity, return on average common equity and return on average tangible common equity.

-9-

(Preliminary)

American Express Company

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Card billed business (A):
United States	$	119.7		$	108.0		$	115.0		$	106.5		$	104.8
Outside the United States		55.6			53.0			57.6			50.1			46.6
Total	$	175.3		$	161.0		$	172.6		$	156.6		$	151.4
Total cards-in-force (millions) (B):
United States		49.0			48.8			48.9			49.4			49.8
Outside the United States		39.9			39.2			39.0			39.0			38.7
Total		88.9			88.0			87.9			88.4			88.5
Basic cards-in-force (millions) (B):
United States		38.1			38.1			38.2			38.6			38.7
Outside the United States		35.2			34.4			34.3			34.3			33.9
Total		73.3			72.5			72.5			72.9			72.6
Average discount rate (C)		2.56	%		2.55	%		2.51	%		2.54	%		2.55	%
Average basic cardmember spending (dollars) (D)	$	3,288		$	3,012		$	3,209		$	2,898		$	2,712
Average fee per card (dollars) (D)	$	37		$	37		$	39		$	37		$	35
Average fee per card adjusted (dollars) (D)	$	41		$	40		$	42		$	41		$	39

(A)  Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on proprietary cards.  Card billed business is reflected in the United States or outside the United States based on where the cardmember is domiciled.

(B) Total cards-in-force represents the number of cards that are issued and outstanding.  Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include additional supplemental cards issued on that account.  Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee cardmembers.  Non-proprietary basic cards-in-force includes all cards that are issued and outstanding under network partnership agreements.

(C)  This calculation is designed to reflect pricing at merchants accepting general purpose American Express cards.  It represents the percentage of billed business (both proprietary and Global Network Services) retained by the Company from merchants it acquires, prior to payments to third parties unrelated to merchant acceptance.

(D)  Average basic cardmember spending and average fee per card are computed from proprietary card activities only.  Average fee per card is computed based on net card fees, including the amortization of deferred direct acquisition costs, plus card fees included in interest and fees on loans (including related amortization of deferred direct acquisition costs), divided by average worldwide proprietary cards-in-force.  The card fees related to cardmember loans included in interest and fees on loans were $48 million for the quarter ended June 30, 2010, $51 million for the quarter ended March 31, 2010, $54 million for the quarter ended December 31, 2009, $47 million for the quarter ended September 30, 2009, and $45 million for the quarter ended June 30, 2009, respectively.  The adjusted average fee per card is computed in the same manner, but excludes amortization of deferred direct acquisition costs (a portion of which is charge card related and included in net card fees and a portion of which is lending related and included in interest and fees on loans).  The amount of amortization excluded for these periods was $56 million for the quarter ended June 30, 2010, $51 million for the quarter ended March 31, 2010, $54 million for the quarter ended December 31, 2009, $57 million for the quarter ended September 30, 2009, and $62 million for the quarter ended June 30, 2009, respectively.  The Company presents adjusted average fee per card because management believes that this metric presents a useful indicator of card fee pricing across a range of its proprietary card products.

-10-

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Worldwide cardmember receivables:
Total receivables	$	34.6		$	33.7		$	33.7		$	32.1		$	31.4
Loss reserves (millions):
Beginning balance	$	498		$	546		$	599		$	714		$	810
Provisions for losses on authorized transactions (A)		55			184			116			118			221
Net write-offs (B)		(121	)		(244	)		(194	)		(265	)		(340	)
Other		8			12			25			32			23
Ending balance	$	440		$	498		$	546		$	599		$	714
% of receivables		1.3	%		1.5	%		1.6	%		1.9	%		2.3	%
Net write-off rate - USCS		1.6	%		1.7	%		1.9	%		3.2	%		5.2	%
30 days past due as a % of total - USCS		1.5	%		1.9	%		1.8	%		2.2	%		2.6	%
Net loss ratio (as a % of charge volume) - ICS/GCS (B) (C)		0.10	%		0.38	%		0.22	%		0.28	%		0.27	%
90 days past billing as a % of total - ICS/GCS (B)		1.0	%		0.9	%		1.6	%		1.9	%		2.3	%
Worldwide cardmember loans - (GAAP basis portfolio) (D):
Total loans	$	57.3		$	57.6		$	32.8		$	31.5		$	32.5
30 days past due loans as a % of total		2.8	%		3.3	%		3.6	%		4.0	%		4.3	%
Loss reserves (millions):
Beginning balance	$	5,314		$	3,268		$	3,359		$	3,219		$	3,013
Adoption of new GAAP consolidation standard (E)		N/A		$	2,531			N/A			N/A			N/A
Provisions for losses on authorized transactions		520			670			544			973			1,291
Net write-offs - principal		(867	)		(1,035	)		(589	)		(731	)		(847	)
Net write-offs - interest and fees		(92	)		(114	)		(72	)		(90	)		(131	)
Other		(9	)		(6	)		26			(12	)		(107	)
Ending balance	$	4,866		$	5,314		$	3,268		$	3,359		$	3,219
Ending Reserves - principal	$	4,743		$	5,161		$	3,172		$	3,246		$	3,035
Ending Reserves - interest and fees	$	123		$	153		$	96		$	113		$	184
% of loans		8.5	%		9.2	%		10.0	%		10.7	%		9.9	%
% of past due		307	%		277	%		279	%		264	%		230	%
Average loans	$	57.5		$	59.3		$	31.8		$	32.3		$	35.2
Net write-off rate		6.0	%		7.0	%		7.4	%		9.1	%		9.6	%
Net interest income divided by average loans (F) (G)		8.3	%		8.9	%		8.9	%		9.3	%		8.4	%
Net interest yield on cardmember loans (F)		9.6	%		10.3	%		10.0	%		10.2	%		9.7	%
Worldwide cardmember loans - (managed basis portfolio) (H):
Total loans	$	57.3		$	57.6		$	61.8		$	60.7		$	62.9
30 days past due loans as a % of total		2.8	%		3.3	%		3.6	%		4.0	%		4.3	%
Net write-offs - principal (millions)	$	867		$	1,035		$	1,106		$	1,327		$	1,541
Average loans	$	57.5		$	59.3		$	60.9		$	61.8		$	63.9
Net write-off rate		6.0	%		7.0	%		7.3	%		8.6	%		9.7	%
Net interest yield on cardmember loans (F)		9.6	%		10.3	%		10.3	%		10.2	%		10.1	%

(A)  Represents loss provisions for cardmember receivables consisting of principal (resulting from authorized transactions) and fee reserve components. Adjustments to cardmember receivables resulting from unauthorized transactions have been reclassified from this line to “Other” for all periods presented.

(B)  Effective January 1, 2010, the Company revised the time period in which past due cardmember receivables in International Card Services and Global Commercial Services are written off when they are 180 days past due or earlier, consistent with applicable bank regulatory guidance and the write-off methodology adopted for U.S. Card Services in the fourth quarter of 2008. Previously, receivables were written off when they were 360 days past billing or earlier. Therefore, the net write-offs for the first quarter of 2010 include net write-offs of approximately $60 million for International Card Services and approximately $48 million for Global Commercial Services resulting from this write-off methodology change, which increased the net loss ratios and decreased the 90 days past billing metrics for these segments, but did not have a substantial impact on provisions for losses. If these amounts had been excluded from net write-offs, the combined net loss ratio for International Card Services/Global Commercial Services for the first quarter of 2010 would have been 0.13%.

(C)  Beginning with the first quarter of 2010, the Company has revised the net loss ratio to exclude net write-offs related to unauthorized transactions, consistent with the methodology for calculation of the net write-off rate for U.S. Card Services. The metrics for prior periods have not been restated for this change as it was deemed immaterial.

(D)  For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the “owned” basis presentation. The information presented on a GAAP basis for such periods includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans . Refer to page 20 for a discussion of  GAAP basis information.

(E)  Reflects the new GAAP effective January 1, 2010, which resulted in the consolidation of the American Express Credit Account Master Trust (the Lending Trust), reflecting $29.0 billion of additional cardmember loans along with a $2.5 billion loan loss reserve on the Company’s balance sheets.

(F)  See Appendix III for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. The Company believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(G)  This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

(H)  For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans. The adoption of new GAAP on January 1, 2010  resulted in accounting for both the Company’s securitized and non-securitized cardmember loans in the consolidated financial statements. As a result, the Company’s 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable.  Refer to page 20 for a discussion of managed basis information.

-11-

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,					Percentage
	2010		2009			Inc/(Dec)
Revenues
Discount revenue, net card fees and other	$	2,534	$	2,271			12	%
Securitization income, net (A)		N/A		(2	)		—
Interest income		1,315		758			73
Interest expense		204		146			40
Net interest income		1,111		612			82
Total revenues net of interest expense		3,645		2,881			27
Provisions for losses		519		1,190			(56	)
Total revenues net of interest expense after provisions for losses		3,126		1,691			85
Expenses
Marketing, promotion, rewards and cardmember services		1,386		1,021			36
Salaries and employee benefits and other operating expenses		912		926			(2	)
Total		2,298		1,947			18
Pretax segment income (loss)		828		(256	)		#
Income tax provision (benefit)		306		(103	)		#
Segment income (loss)	$	522	$	(153	)		#

# - Denotes a variance of more than 100%.

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

-12-

(Preliminary)

U.S. Card Services

Selected Financial Information

Managed Basis Presentation

The following table sets forth portfolio financial information for the quarters ended June 30, 2010 and June 30, 2009. The June 30, 2010 financial information was determined in accordance with the new GAAP effective January 1, 2010. The June 30, 2009 information includes the GAAP (“owned” basis) presentation, together with the adjustments for securitization activity to arrive at the “managed” (non-GAAP) basis presentation. For additional information, see “Cardmember Loan Portfolio Presentations” below.

(Millions)

	Quarters Ended
	June 30,						Percentage
	2010		2009				Inc/(Dec)
Income Statement Data
Discount revenue, net card fees and other:
Reported for the period (GAAP)	$	2,534	$	2,271				12	%
Securitization adjustments		N/A		79				—
Managed discount revenue, net card fees and other	$	2,534	$	2,350				8
Interest income:
Reported for the period (GAAP)	$	1,315	$	758				73
Securitization adjustments		N/A		771				—
Managed interest income	$	1,315	$	1,529				(14	)
Securitization income, net: (A)
Reported for the period (GAAP)		N/A	$	(2	)			—
Securitization adjustments		N/A		2				—
Managed securitization income, net		N/A	$	—				—
Interest expense:
Reported for the period (GAAP)	$	204	$	146				40
Securitization adjustments		N/A		48				—
Managed interest expense	$	204	$	194				5
Provisions for losses:
Reported for the period (GAAP)	$	519	$	1,190				(56	)
Securitization adjustments		N/A		836		(B)		—
Managed provisions for losses	$	519	$	2,026		(B)		(74	)

# - Denotes a variance of more than 100%.

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(B) Includes provisions for losses for off-balance sheet cardmember loans based on the same methodology as applied to on-balance sheet cardmember loans, except that any quarterly adjustment to reserve levels for on-balance sheet loans to address external environmental factors was not applied to adjust the provision expense for the securitized portfolio. 

Cardmember Loan Portfolio Presentations

For periods ended on or prior to December 31, 2009, the Company’s non-securitized cardmember loans and related debt performance information on a GAAP basis was referred to as the “owned” basis presentation. For such periods, the Company also provided such information on a non-GAAP “managed” basis. Unlike the GAAP basis presentation, the managed basis presentation in such periods assumed there had been no off-balance sheet securitizations for the Company’s U.S. Card Services segment (the Company does not currently securitize its international cardmember loans), resulting in the inclusion of all securitized and non-securitized cardmember loans and related debt in the Company’s performance information.

Under the GAAP basis presentation for periods ended on or prior to December 31, 2009, prior to a securitization, revenues and expenses from cardmember loans and related debt were reflected in the Company’s income statements in other commissions and fees, net interest income and provisions for losses for cardmember loans. At the time of a securitization transaction, the securitized cardmember loans were removed from the Company’s balance sheet, and the resulting gain on sale was reflected in securitization income, net, as well as a reduction to provisions for losses (credit reserves were no longer recorded for the cardmember loans once sold). Over the life of a securitization transaction, the Company recognized the net cash flow from interest and fee collections on interests sold to investors (the investors’ interests) after deducting interest paid on the investors’ certificates, credit losses, contractual service fees, other expenses and changes in the fair value of the interest-only strip (referred to as “excess spread”). These amounts, in addition to servicing fees and the non-credit components of the gains/(losses) from securitization activities were reflected in securitization income, net. The Company also recognized interest income over the life of the securitization transaction related to the interest it retained (i.e., the seller’s interest).

At the maturity of a securitization transaction, cardmember loans on the balance sheet increased, and the impact of the incremental required loss reserves was recorded in provisions for losses.

Under the managed basis presentation for periods ended on or prior to December 31, 2009, revenues and expenses related to securitized cardmember loans and related debt are reflected in other commissions and fees (included in discount revenue, net card fees and other), interest income, interest expense and provisions for losses. In addition, there is no securitization income, net as this presentation assumes no securitization transactions have occurred.

Historically, the Company included U.S. Card Services information on a managed basis, as that was the manner in which the Company’s management viewed and managed the business. Management believed that a full picture of trends in the Company’s cardmember loans business could only be derived by evaluating the performance of both securitized and non-securitized cardmember loans, as the presentation of the entire cardmember loan portfolio was more representative of the economics of the aggregate cardmember relationships and ongoing business performance and related trends over time. The managed basis presentation also provided investors a more comprehensive assessment of the information necessary for the Company and investors to evaluate the Company’s market share.

The adoption of new GAAP on January 1, 2010 resulted in accounting for both the Company’s securitized and non-securitized cardmember loans in the consolidated financial statements.  As a result, the Company’s 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable.

-13-

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2010			2009			Inc/(Dec)
Card billed business	$	94.6		$	84.1			12	%
Total cards-in-force (millions)		39.6			40.2			(1	)%
Basic cards-in-force (millions)		29.5			29.8			(1	)%
Average basic cardmember spending (dollars)	$	3,212		$	2,667			20	%
U.S. Consumer Travel:
Travel sales (millions)	$	840		$	696			21	%
Travel commissions and fees/sales		7.9	%		8.5	%
Total segment assets	$	82.4		$	54.1			52	%
Segment capital (millions) (A)	$	5,997		$	5,501			9	%
Return on average segment capital (B)		26.9	%		4.9	%
Return on average tangible segment capital (B)		29.2	%		5.2	%
Cardmember receivables:
Total receivables	$	17.3		$	15.9			9	%
30 days past due as a % of total		1.5	%		2.6	%
Average receivables	$	17.1		$	15.7			9	%
Net write-off rate		1.6	%		5.2	%
Cardmember loans - (GAAP basis portfolio) (C):
Total loans	$	49.0		$	23.6			#	%
30 days past due loans as a % of total		2.7	%		4.4	%
Average loans	$	49.1		$	26.5			85	%
Net write-off rate		6.2	%		10.3	%
Net interest income divided by average loans (D) (E)		9.1	%		9.3	%
Net interest yield on cardmember loans (D)		9.3	%		8.8	%
Cardmember loans - (managed basis portfolio) (F):
Total loans	$	49.0		$	54.0			(9	)%
30 days past due loans as a % of total		2.7	%		4.4	%
Average loans	$	49.1		$	55.1			(11	)%
Net write-off rate		6.2	%		10.0	%
Net interest yield on cardmember loans (D)		9.3	%		9.7	%

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the “owned” basis presentation. The information presented on a GAAP basis for the quarter ended June 30, 2009 includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 20 for a discussion of  GAAP basis information.

(D) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. The Company believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(E)  This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

(F)  For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans.  The adoption of new GAAP on January 1, 2010  resulted in accounting for both the Company’s securitized and non-securitized cardmember loans in the consolidated financial statements.  As a result, the Company’s 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable.  Refer to page 20 for a discussion of managed basis information.

-14-

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2010		2010		2009		2009		2009
Revenues
Discount revenue, net card fees and other	$	2,534	$	2,317	$	2,377	$	2,262	$	2,271
Securitization income, net (A)		N/A		N/A		190		71		(2	)
Interest income		1,315		1,411		754		776		758
Interest expense		204		190		133		127		146
Net interest income		1,111		1,221		621		649		612
Total revenues net of interest expense		3,645		3,538		3,188		2,982		2,881
Provisions for losses		519		687		346		850		1,190
Total revenues net of interest expense after provisions for losses		3,126		2,851		2,842		2,132		1,691
Expenses
Marketing, promotion, rewards and cardmember services		1,386		1,301		1,306		1,050		1,021
Salaries and employee benefits and other operating expenses		912		873		890		864		926
Total		2,298		2,174		2,196		1,914		1,947
Pretax segment income (loss)		828		677		646		218		(256	)
Income tax provision (benefit)		306		249		233		60		(103	)
Segment income (loss)	$	522	$	428	$	413	$	158	$	(153	)

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

-15-

(Preliminary)

U.S. Card Services

Selected Financial Information

Managed Basis Presentation

The following table sets forth portfolio financial information for the quarters ended June 30, 2010, March 31, 2010, December 31, 2009, September 30, 2009 and June 30, 2009. The June 30, 2010 and March 31, 2010 financial information was determined in accordance with the new GAAP effective January 1, 2010. The December 31, 2009, September 30, 2009 and June 30, 2009 information includes the GAAP (“owned”) basis presentation, together with the adjustments for securitization activity to arrive at the “managed” (non-GAAP) basis presentation. For additional information, please see “Cardmember Loan Portfolio Presentations” discussion on page 20.

(Millions)

	Quarters Ended
	June 30,		March 31,		December 31,				September 30,				June 30,
	2010		2010		2009				2009				2009
Income Statement Data
Discount revenue, net card fees and other:
Reported for the period (GAAP)	$	2,534	$	2,317	$	2,377			$	2,262			$	2,271
Securitization adjustments		N/A		N/A		71				82				79
Managed discount revenue, net card fees and other	$	2,534	$	2,317	$	2,448			$	2,344			$	2,350
Interest income:
Reported for the period (GAAP)	$	1,315	$	1,411	$	754			$	776			$	758
Securitization adjustments		N/A		N/A		726				714				771
Managed interest income	$	1,315	$	1,411	$	1,480			$	1,490			$	1,529
Securitization income, net (A):
Reported for the period (GAAP)		N/A		N/A	$	190			$	71			$	(2		)
Securitization adjustments		N/A		N/A		(190		)		(71		)		2
Managed securitization income, net		N/A		N/A	$	—			$	—			$	—
Interest expense:
Reported for the period (GAAP)	$	204	$	190	$	133			$	127			$	146
Securitization adjustments		N/A		N/A		55				58				48
Managed interest expense	$	204	$	190	$	188			$	185			$	194
Provisions for losses:
Reported for the period (GAAP)	$	519	$	687	$	346			$	850			$	1,190
Securitization adjustments		N/A		N/A		572	(B)			529	(B)			836	(B)
Managed provisions for losses	$	519	$	687	$	918	(B)		$	1,379	(B)		$	2,026	(B)

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(B) Includes provisions for losses for off-balance sheet cardmember loans based on the same methodology as applied to on-balance sheet cardmember loans, except that any quarterly adjustment to reserve levels for on-balance sheet loans to address external environmental factors was not applied to adjust the provision expense for the securitized portfolio.

-16-

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Card billed business	$	94.6		$	84.9		$	92.1		$	85.2		$	84.1
Total cards-in-force (millions)		39.6			39.5			39.5			39.8			40.2
Basic cards-in-force (millions)		29.5			29.4			29.5			29.7			29.8
Average basic cardmember spending (dollars)	$	3,212		$	2,884		$	3,112		$	2,851		$	2,667
U.S. Consumer Travel:
Travel sales	$	0.8		$	0.7		$	0.6		$	0.6		$	0.7
Travel commissions and fees/sales		7.9	%		7.8	%		8.5	%		8.4	%		8.5	%
Total segment assets	$	82.4		$	75.3		$	57.9		$	53.2		$	54.1
Segment capital (A)	$	6.0		$	5.3		$	6.0		$	5.5		$	5.5
Return on average segment capital (B)		26.9	%		15.8	%		8.0	%		2.6	%		4.9	%
Return on average tangible segment capital (B)		29.2	%		17.2	%		8.7	%		2.8	%		5.2	%
Cardmember receivables:
Total receivables	$	17.3		$	16.6		$	17.8		$	15.9		$	15.9
30 days past due as a % of total		1.5	%		1.9	%		1.8	%		2.2	%		2.6	%
Average receivables	$	17.1		$	16.7		$	16.5		$	15.8		$	15.7
Net write-off rate		1.6	%		1.7	%		1.9	%		3.2	%		5.2	%
Cardmember loans - (GAAP basis portfolio) (C):
Total loans	$	49.0		$	49.2		$	23.5		$	22.7		$	23.6
30 days past due loans as a % of total		2.7	%		3.3	%		3.7	%		4.2	%		4.4	%
Average loans	$	49.1		$	50.5		$	22.7		$	23.4		$	26.5
Net write-off rate		6.2	%		7.2	%		8.0	%		9.8	%		10.3	%
Net interest income divided by average loans (D) (E)		9.1	%		9.8	%		10.9	%		11.0	%		9.3	%
Net interest yield on cardmember loans (D)		9.3	%		10.0	%		9.4	%		9.4	%		8.8	%
Cardmember loans - (managed basis portfolio) (F):
Total loans	$	49.0		$	49.2		$	52.6		$	51.9		$	54.0
30 days past due loans as a % of total		2.7	%		3.3	%		3.7	%		4.1	%		4.4	%
Average loans	$	49.1		$	50.5		$	51.8		$	52.9		$	55.1
Net write-off rate		6.2	%		7.2	%		7.5	%		8.9	%		10.0	%
Net interest yield on cardmember loans (D)		9.3	%		10.0	%		10.0	%		9.8	%		9.7	%

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the “owned” basis presentation. The information presented on a GAAP basis for such periods includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 20 for a discussion of  GAAP basis information.

(D) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. The Company believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(E)  This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

(F)  For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans.  The adoption of new GAAP on January 1, 2010  resulted in accounting for both the Company’s securitized and non-securitized cardmember loans in the consolidated financial statements.  As a result, the Company’s 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable.  Refer to page 20 for a discussion of managed basis information.

-17-

(Preliminary)

International Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,					Percentage
	2010		2009			Inc/(Dec)
Revenues
Discount revenue, net card fees and other	$	865	$	838			3	%
Interest income		342		376			(9	)
Interest expense		99		101			(2	)
Net interest income		243		275			(12	)
Total revenues net of interest expense		1,108		1,113			—
Provisions for losses		90		302			(70	)
Total revenues net of interest expense after provisions for losses		1,018		811			26
Expenses
Marketing, promotion, rewards and cardmember services		376		287			31
Salaries and employee benefits and other operating expenses		441		453			(3	)
Total		817		740			10
Pretax segment income		201		71			#
Income tax provision (benefit)		41		(7	)		#
Segment income	$	160	$	78			#

# - Denotes variance of more than 100%.

-18-

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2010			2009			Inc/(Dec)
Card billed business	$	25.5		$	22.7			12	%
Total cards-in-force (millions)		15.0			15.5			(3	)%
Basic cards-in-force (millions)		10.4			10.8			(4	)%
Average basic cardmember spending (dollars)	$	2,449		$	2,083			18	%
International Consumer Travel:
Travel sales (millions)	$	262		$	231			13	%
Travel commissions and fees/sales		8.0	%		8.7	%
Total segment assets	$	20.0		$	19.2			4	%
Segment capital (millions) (A)	$	2,022		$	2,215			(9	)%
Return on average segment capital (B)		23.6	%		9.8	%
Return on average tangible segment capital (B)		31.8	%		13.0	%
Cardmember receivables:
Total receivables	$	5.6		$	5.4			4	%
90 days past billing as a % of total		1.0	%		3.0	%
Net loss ratio (as a % of charge volume)		0.15	%		0.36	%
Cardmember loans:
Total loans	$	8.3		$	8.9			(7	)%
30 days past due loans as a % of total		3.0	%		4.0	%
Average loans	$	8.3		$	8.7			(5	)%
Net write-off rate		4.9	%		7.5	%
Net interest income divided by average loans (C) (D)		11.7	%		12.7	%
Net interest yield on cardmember loans (C)		11.4	%		12.5	%

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. The Company believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(D) This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

-19-

(Preliminary)

International Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,		March 31,		December 31,			September 30,		June 30,
	2010		2010		2009			2009		2009
Revenues
Discount revenue, net card fees and other	$	865	$	882	$	944		$	878	$	838
Interest income		342		363		384			384		376
Interest expense		99		106		113			105		101
Net interest income		243		257		271			279		275
Total revenues net of interest expense		1,108		1,139		1,215			1,157		1,113
Provisions for losses		90		158		324			250		302
Total revenues net of interest expense after provisions for losses		1,018		981		891			907		811
Expenses
Marketing, promotion, rewards and cardmember services		376		350		374			302		287
Salaries and employee benefits and other operating expenses		441		447		477			469		453
Total		817		797		851			771		740
Pretax segment income		201		184		40			136		71
Income tax provision (benefit)		41		33		(29	)		3		(7	)
Segment income	$	160	$	151	$	69		$	133	$	78

-20-

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Card billed business	$	25.5		$	24.4		$	27.5		$	24.2		$	22.7
Total cards-in-force (millions)		15.0			15.0			15.0			15.2			15.5
Basic cards-in-force (millions)		10.4			10.4			10.5			10.6			10.8
Average basic cardmember spending (dollars)	$	2,449		$	2,340		$	2,618		$	2,273		$	2,083
International Consumer Travel:
Travel sales	$	0.3		$	0.3		$	0.3		$	0.3		$	0.2
Travel commissions and fees/sales		8.0	%		7.3	%		9.0	%		8.5	%		8.7	%
Total segment assets	$	20.0		$	19.9		$	20.4		$	19.3		$	19.2
Segment capital (A)	$	2.0		$	2.1		$	2.3		$	2.3		$	2.2
Return on average segment capital (B)		23.6	%		19.7	%		15.1	%		13.2	%		9.8	%
Return on average tangible segment capital (B)		31.8	%		26.5	%		20.1	%		17.6	%		13.0	%
Cardmember receivables:
Total receivables	$	5.6		$	5.5		$	5.9		$	5.6		$	5.4
90 days past billing as a % of total (C)		1.0	%		1.1	%		2.1	%		2.5	%		3.0	%
Net loss ratio (as a % of charge volume) (C) (D)		0.15	%		0.53	%		0.37	%		0.37	%		0.36	%
Cardmember loans:
Total loans	$	8.3		$	8.4		$	9.2		$	8.8		$	8.9
30 days past due loans as a % of total		3.0	%		3.3	%		3.3	%		3.7	%		4.0	%
Average loans	$	8.3		$	8.8		$	9.0		$	8.9		$	8.7
Net write-off rate		4.9	%		5.5	%		6.1	%		7.1	%		7.5	%
Net interest income divided by average loans (E) (F)		11.7	%		11.8	%		11.9	%		12.4	%		12.7	%
Net interest yield on cardmember loans (C)		11.4	%		11.7	%		11.7	%		12.4	%		12.5	%

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) Effective January 1, 2010, the Company revised the time period in which past due cardmember receivables in International Card Services are written off to when they are 180 days past due or earlier, consistent with applicable bank regulatory guidance and the write-off methodology adopted for U.S. Card Services in the fourth quarter of 2008. Previously, receivables were written off when they were 360 days past billing or earlier. Therefore, the net write-offs for the first quarter of 2010 include net write-offs of approximately $60 million for International Card Services resulting from this write-off methodology change, which increased the net loss ratio and decreased the 90 days past billing metric for this segment, but did not have a substantial impact on provisions for losses. If this amount had been excluded from net write-offs, the net loss ratio for International Card Services for the first quarter of 2010 would have been 0.17%.

(D) Beginning with the first quarter of 2010, the Company has revised the net loss ratio to exclude net write-offs related to unauthorized transactions, consistent with the methodology for calculation of the net write-off rate for U.S. Card Services. The metrics for prior periods have not been restated for this change as it was deemed immaterial.

(E) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. The Company believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(F) This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

-21-

(Preliminary)

Global Commercial Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,						Percentage
	2010			2009			Inc/(Dec)
Revenues
Discount revenue, net card fees and other	$	1,138		$	1,039			10	%
Interest income		2			2			—
Interest expense		56			43			30
Net interest expense		(54	)		(41	)		32
Total revenues net of interest expense		1,084			998			9
Provisions for losses		28			53			(47	)
Total revenues net of interest expense after provisions for losses		1,056			945			12
Expenses
Marketing, promotion, rewards and cardmember services		107			74			45
Salaries and employee benefits and other operating expenses		709			777			(9	)
Total		816			851			(4	)
Pretax segment income		240			94			#
Income tax provision		123			27			#
Segment income	$	117		$	67			75

# - Denotes variance of more than 100%.

-22-

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2010			2009			Inc/(Dec)
Card billed business	$	32.9		$	27.2			21	%
Total cards-in-force (millions)		7.0			7.2			(3	)%
Basic cards-in-force (millions)		7.0			7.2			(3	)%
Average basic cardmember spending (dollars)	$	4,712		$	3,746			26	%
Global Corporate Travel:
Travel sales	$	4.6		$	3.6			28	%
Travel commissions and fees/sales		7.6	%		9.1	%
Total segment assets	$	23.5		$	21.1			11	%
Segment capital (millions) (A)	$	3,509		$	3,553			(1	)%
Return on average segment capital (B)		11.5	%		7.0	%
Return on average tangible segment capital (B)		25.0	%		15.1	%
Cardmember receivables:
Total receivables	$	11.5		$	9.9			16	%
90 days past billing as a % of total		1.0	%		1.9	%
Net loss ratio (as a % of charge volume)		0.06	%		0.22	%

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

-23-

(Preliminary)

Global Commercial Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenues
Discount revenue, net card fees and other	$	1,138		$	1,069		$	1,120		$	1,017		$	1,039
Interest income		2			1			1			1			2
Interest expense		56			48			49			43			43
Net interest expense		(54	)		(47	)		(48	)		(42	)		(41	)
Total revenues net of interest expense		1,084			1,022			1,072			975			998
Provisions for losses		28			78			37			40			53
Total revenues net of interest expense after provisions for losses		1,056			944			1,035			935			945
Expenses
Marketing, promotion, rewards and cardmember services		107			113			98			81			74
Salaries and employee benefits and other operating expenses		709			695			796			706			777
Total		816			808			894			787			851
Pretax segment income		240			136			141			148			94
Income tax provision		123			44			41			46			27
Segment income	$	117		$	92		$	100		$	102		$	67

-24-

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Card billed business	$	32.9		$	30.8		$	31.0		$	27.9		$	27.2
Total cards-in-force (millions)		7.0			7.0			7.1			7.1			7.2
Basic cards-in-force (millions)		7.0			7.0			7.1			7.1			7.2
Average basic cardmember spending (dollars)	$	4,712		$	4,400		$	4,357		$	3,907		$	3,746
Global Corporate Travel:
Travel sales	$	4.6		$	4.1		$	4.1		$	3.5		$	3.6
Travel commissions and fees/sales		7.6	%		7.4	%		8.8	%		8.8	%		9.1	%
Total segment assets	$	23.5		$	23.5		$	22.9		$	22.7		$	21.1
Segment capital (A)	$	3.5		$	3.4		$	3.7		$	3.7		$	3.6
Return on average segment capital (B)		11.5	%		10.1	%		9.7	%		6.6	%		7.0	%
Return on average tangible segment capital (B)		25.0	%		21.9	%		20.8	%		14.2	%		15.1	%
Cardmember receivables:
Total receivables	$	11.5		$	11.4		$	9.8		$	10.4		$	9.9
90 days past billing as a % of total (C)		1.0	%		0.8	%		1.4	%		1.5	%		1.9	%
Net loss ratio (as a % of charge volume) (C) (D)		0.06	%		0.28	%		0.14	%		0.23	%		0.22	%

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C)  Effective January 1, 2010, the Company revised the time period in which past due cardmember receivables in Global Commercial Services are written off to when they are 180 days past due or earlier, consistent with applicable bank regulatory guidance and the write-off methodology adopted for U.S. Card Services in the fourth quarter of 2008. Previously, receivables were written off when they were 360 days past billing or earlier. Therefore, the net write-offs for the first quarter of 2010 include net write-offs of approximately $48 million for Global Commercial Services resulting from this write-off methodology change, which increased the net loss ratio and decreased the 90 days past billing metric for this segment, but did not have a substantial impact on provisions for losses. If this amount had been excluded from net write-offs, the net loss ratio for Global Commercial Services for the first quarter of 2010 would have been 0.11%.

(D)  Beginning with the first quarter of 2010, the Company has revised the net loss ratio to exclude net write-offs related to unauthorized transactions, consistent with the methodology for calculation of the net write-off rate for U.S. Card Services. The metrics for prior periods have not been restated for this change as it was deemed immaterial.

-25-

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,						Percentage
	2010			2009			Inc/(Dec)
Revenues
Discount revenue, fees and other	$	1,021		$	872			17	%
Interest income		1			—			—
Interest expense		(46	)		(44	)		5
Net interest income		47			44			7
Total revenues net of interest expense		1,068			916			17
Provisions for losses		12			33			(64	)
Total revenues net of interest expense after provision for losses		1,056			883			20
Expenses
Marketing and promotion		209			94			#
Salaries and employee benefits and other operating expenses		430			423			2
Total		639			517			24
Pretax segment income		417			366			14
Income tax provision		148			127			17
Segment income	$	269		$	239			13

# - Denotes variance of more than 100%.

-26-

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2010			2009			Inc/(Dec)
Global Card billed business (A)	$	175.3		$	151.4			16	%
Global Network & Merchant Services:
Total segment assets	$	11.9		$	10.3			16	%
Segment capital (millions) (B)	$	1,762		$	1,488			18	%
Return on average segment capital (C)		65.2	%		76.7	%
Return on average tangible segment capital (C)		66.8	%		78.8	%
Global Network Services:
Card billed business	$	21.6		$	17.0			27	%
Total cards-in-force (millions)		27.3			25.6			7	%

(A) Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on proprietary cards.

(B) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(C) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

-27-

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Revenues
Discount revenue, fees and other	$	1,021		$	949		$	986		$	937		$	872
Interest income		1			1			1			—			—
Interest expense		(46	)		(47	)		(44	)		(39	)		(44	)
Net interest income		47			48			45			39			44
Total revenues net of interest expense		1,068			997			1,031			976			916
Provisions for losses		12			21			34			33			33
Total revenues net of interest expense after provisions for losses		1,056			976			997			943			883
Expenses
Marketing and promotion		209			166			206			157			94
Salaries and employee benefits and other operating expenses		430			395			469			415			423
Total		639			561			675			572			517
Pretax segment income		417			415			322			371			366
Income tax provision		148			148			122			123			127
Segment income	$	269		$	267		$	200		$	248		$	239

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(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Global Card billed business (A)	$	175.3		$	161.0		$	172.6		$	156.6		$	151.4
Global Network & Merchant Services:
Total segment assets	$	11.9		$	10.8		$	11.1		$	10.4		$	10.3
Segment capital (B)	$	1.8		$	1.4		$	1.4		$	1.5		$	1.5
Return on average segment capital (C)		65.2	%		65.8	%		65.7	%		71.0	%		76.7	%
Return on average tangible segment capital (C)		66.8	%		67.4	%		67.4	%		72.8	%		78.8	%
Global Network Services:
Card billed business	$	21.6		$	20.1		$	21.4		$	18.6		$	17.0
Total cards-in-force (millions)		27.3			26.5			26.3			26.3			25.6

(A) Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on proprietary cards.

(B) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(C) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

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(Preliminary)

American Express Company

Components of Return on Average Equity (ROE), Return on Average Common Equity (ROCE),

and Return on Average Tangible Common Equity (ROTCE)

Appendix I

(Millions)

	For the Twelve Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
ROE
Net income	$	3,258		$	2,578		$	2,130		$	1,654		$	1,829
Average shareholders’ equity	$	13,863		$	14,290		$	14,570		$	14,151		$	13,892
Return on average equity (A)		23.5	%		18.0	%		14.6	%		11.7	%		13.2	%
Reconciliation of ROCE and ROTCE
Net income	$	3,258		$	2,578		$	2,130		$	1,654		$	1,829
Preferred shares dividends and related accretion		—			234			306			306			306
Earnings allocated to participating share awards and other		42			30			22			14			11
Net income attributable to common shareholders	$	3,216		$	2,314		$	1,802		$	1,334		$	1,512
Average shareholders’ equity	$	13,863		$	14,290		$	14,570		$	14,151		$	13,892
Average preferred shares		—			782			1,303			1,303			1,303
Average common shareholders’ equity	$	13,863		$	13,508		$	13,267		$	12,848		$	12,589
Average goodwill and other intangibles		3,157			3,081			3,009			2,944			2,886
Average tangible common shareholders’ equity	$	10,706		$	10,427		$	10,258		$	9,904		$	9,703
Return on average common equity (A)		23.2	%		17.1	%		13.6	%		10.4	%		12.0	%
Return on average tangible common equity (B)		30.0	%		22.2	%		17.6	%		13.5	%		15.6	%

(A) Return on average equity and return on average common equity are calculated by dividing one year period net income/net income attributable to common shareholders by one year average total shareholders’ equity/average common shareholders’ equity, respectively.

(B) Return on average tangible common equity is computed in the same manner as return on average common equity except the computation of average tangible common shareholders’ equity excludes average goodwill and other intangibles.  The Company believes that return on average tangible common equity is a useful measure of the profitability of its business.

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(Preliminary)

American Express Company

Components of Return on Average Segment Capital (ROSC) and Return on Average Tangible Segment Capital (ROTSC)

Appendix II (A)

(Millions)

	For the Twelve Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
U.S. Card Services
Segment income	$	1,521		$	846		$	411		$	124		$	223
Average segment capital	$	5,664		$	5,367		$	5,145		$	4,835		$	4,597
Average goodwill and other intangibles		447			440			432			383			338
Average tangible segment capital	$	5,217		$	4,927		$	4,713		$	4,452		$	4,259
Return on average segment capital (B)		26.9	%		15.8	%		8.0	%		2.6	%		4.9	%
Return on average tangible segment capital (B)		29.2	%		17.2	%		8.7	%		2.8	%		5.2	%
International Card Services
Segment income	$	513		$	431		$	332		$	296		$	219
Average segment capital	$	2,174		$	2,183		$	2,205		$	2,234		$	2,233
Average goodwill and other intangibles		561			554			551			551			546
Average tangible segment capital	$	1,613		$	1,629		$	1,654		$	1,683		$	1,687
Return on average segment capital (B)		23.6	%		19.7	%		15.1	%		13.2	%		9.8	%
Return on average tangible segment capital (B)		31.8	%		26.5	%		20.1	%		17.6	%		13.0	%
Global Commercial Services
Segment income	$	411		$	361		$	350		$	236		$	250
Average segment capital	$	3,571		$	3,581		$	3,623		$	3,603		$	3,587
Average goodwill and other intangibles		1,930			1,936			1,937			1,938			1,933
Average tangible segment capital	$	1,641		$	1,645		$	1,686		$	1,665		$	1,654
Return on average segment capital (B)		11.5	%		10.1	%		9.7	%		6.6	%		7.0	%
Return on average tangible segment capital (B)		25.0	%		21.9	%		20.8	%		14.2	%		15.1	%
Global Network & Merchant Services
Segment income	$	984		$	954		$	937		$	980		$	1,005
Average segment capital	$	1,510		$	1,449		$	1,426		$	1,381		$	1,310
Average goodwill and other intangibles		36			34			36			35			35
Average tangible segment capital	$	1,474		$	1,415		$	1,390		$	1,346		$	1,275
Return on average segment capital (B)		65.2	%		65.8	%		65.7	%		71.0	%		76.7	%
Return on average tangible segment capital (B)		66.8	%		67.4	%		67.4	%		72.8	%		78.8	%

(A) Beginning in the first quarter of 2010, the Company changed the manner in which it allocates interest expense and capital to its reportable operating segments. The change reflects modifications in allocation methodology that the Company believes more accurately reflect funding and capital characteristics of its segments. The segment results, and accordingly, ROSC and ROTSC for periods prior to the first quarter of 2010 have been restated for this change.

(B) Return on average segment capital is calculated by dividing one year period segment income by one year average segment capital.  Return on average tangible segment capital is computed in the same manner as return on average segment capital except the computation of average tangible segment capital excludes average goodwill and other intangibles.  The Company believes that return on average tangible segment capital is a useful measure of the profitability of its business.

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(Preliminary)

American Express Company

Net Interest Yield on Cardmember Loans

Appendix III (A)

(millions)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
Calculation based on 2010 and 2009 GAAP information (B):
Net interest income	$	1,188		$	1,307		$	710		$	754		$	741
Average loans (billions)	$	57.5		$	59.3		$	31.8		$	32.3		$	35.2
Adjusted net interest income (C)	$	1,379		$	1,498		$	807		$	837		$	855
Adjusted average loans (billions) (D)	$	57.4		$	59.2		$	31.9		$	32.4		$	35.4
Net interest income divided by average loans		8.3	%		8.9	%		8.9	%		9.3	%		8.4	%
Net interest yield on cardmember loans (E)		9.6	%		10.3	%		10.0	%		10.2	%		9.7	%
Calculation based on 2010 and 2009 managed information (F):
Net interest income (G)	$	1,188		$	1,307		$	1,381		$	1,410		$	1,464
Average loans (billions)	$	57.5		$	59.3		$	60.9		$	61.8		$	63.9
Adjusted net interest income (C)	$	1,379		$	1,498		$	1,577		$	1,594		$	1,617
Adjusted average loans (billions) (D)	$	57.4		$	59.2		$	61.0		$	62.0		$	64.0
Net interest yield on cardmember loans (E)		9.6	%		10.3	%		10.3	%		10.2	%		10.1	%

(A) Beginning in the first quarter of 2010, the Company changed the manner in which it allocates interest expense and capital to its reportable operating segments.  The change reflects modifications in allocation methodology that the Company believes to more accurately reflect the funding and capital characteristics of its segments. The change to interest allocation impacted the consolidated net interest yield on cardmember loans.  Accordingly, the net interest yields for periods prior to the first quarter of 2010 have been restated for this change.

(B) For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the “owned” basis presentation. The information presented on a GAAP basis for such periods includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 20 for a discussion of GAAP basis information.

(C) Represents net interest income allocated to the Company’s cardmember loans portfolio on a GAAP or managed basis, as applicable, in each case excluding the impact of card fees on loans and balance transfer fees attributable to the Company’s cardmember loans.

(D) Represents average cardmember loans on a GAAP or managed portfolio basis, as applicable, in each case excluding the impact of deferred card fees, net of deferred direct acquisition costs of cardmember loans.

(E) Net interest yield on cardmember loans is a non-GAAP financial measure that represents the net spread earned on cardmember loans.  Net interest yield on cardmember loans is computed by dividing adjusted net interest income by adjusted average loans, computed on an annualized basis.  The calculation of net interest yield on cardmember loans includes interest that is deemed uncollectible. For all presentations of net interest yield on cardmember loans, reserves and net write-offs related to uncollectible interest are recorded through provisions for losses - cardmember loans; therefore, such reserves and net write-offs are not included in the net interest yield calculation.

(F) For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans. The adoption of new GAAP on January 1, 2010 resulted in accounting for both the Company’s securitized and non-securitized cardmember loans in the consolidated financial statements. As a result, the Company’s 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable.  Refer to page 20 for a discussion of managed basis information.

(G) For periods ended on or prior to December 31, 2009, the information presented includes the adjustments to the GAAP “owned” basis presentation for such periods attributable to securitization activity for interest income and interest expense to arrive at the non-GAAP “managed” basis information, which adjustments are set forth under the U.S. Card Services managed basis presentation on page 23.

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(Preliminary)

U. S. Card Services and International Card Services

Net Interest Yield on Cardmember Loans

Appendix IV (A)

(millions)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2010			2010			2009			2009			2009
USCS - Calculation based on 2010 and 2009 GAAP information (B):
Net interest income	$	1,111		$	1,221		$	621		$	649		$	612
Average loans (billions)	$	49.1		$	50.5		$	22.7		$	23.4		$	26.5
Adjusted net interest income (C)	$	1,145		$	1,246		$	537		$	558		$	581
Adjusted average loans (billions) (D)	$	49.2		$	50.5		$	22.8		$	23.5		$	26.6
Net interest income divided by average loans		9.1	%		9.8	%		10.9	%		11.0	%		9.3	%
Net interest yield on cardmember loans (E)		9.3	%		10.0	%		9.4	%		9.4	%		8.8	%
USCS - Calculation based on 2010 and 2009 managed information (F):
Net interest income (G)	$	1,111		$	1,221		$	1,292		$	1,305		$	1,335
Average loans (billions)	$	49.1		$	50.5		$	51.8		$	52.9		$	55.1
Adjusted net interest income (C)	$	1,145		$	1,246		$	1,308		$	1,315		$	1,343
Adjusted average loans (billions) (D)	$	49.2		$	50.5		$	51.9		$	53.0		$	55.2
Net interest yield on cardmember loans (E)		9.3	%		10.0	%		10.0	%		9.8	%		9.7	%
ICS:
Net interest income	$	243		$	257		$	271		$	279		$	275
Average loans (billions)	$	8.3		$	8.8		$	9.0		$	8.9		$	8.7
Adjusted net interest income (C)	$	234		$	253		$	269		$	279		$	274
Adjusted average loans (billions) (D)	$	8.2		$	8.8		$	9.1		$	8.9		$	8.8
Net interest income divided by average loans		11.7	%		11.8	%		11.9	%		12.4	%		12.7	%
Net interest yield on cardmember loans (E)		11.4	%		11.7	%		11.7	%		12.4	%		12.5	%

(A) Beginning in the first quarter of 2010, the Company changed the manner in which it allocates capital and related interest expense to its reportable operating segments to more accurately reflect the funding and capital characteristics of its segments. The change to interest allocation impacted the consolidated net interest yield on cardmember loans.  Accordingly, the net interest yields for periods prior to the first quarter of 2010 have been restated for this change.

(B) For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the “owned” basis presentation. The information presented on a GAAP basis for such periods includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 20 for a discussion of GAAP basis information.

(C) Represents net interest income allocated to the Company’s cardmember loans portfolio on a GAAP or managed basis, as applicable, in each case excluding the impact of card fees on loans and balance transfer fees attributable to the Company’s cardmember loans.

(D) Represents average cardmember loans on a GAAP or managed portfolio basis, as applicable, in each case excluding the impact of deferred card fees, net of deferred direct acquisition costs of cardmember loans.

(E) Net interest yield on cardmember loans is a non-GAAP financial measure that represents the net spread earned on cardmember loans.  Net interest yield on cardmember loans is computed by dividing adjusted net interest income by adjusted average loans, computed on an annualized basis.  The calculation of net interest yield on cardmember loans includes interest that is deemed uncollectible. For all presentations of net interest yield on cardmember loans, reserves and net write-offs related to uncollectible interest are recorded through provisions for losses - cardmember loans; therefore, such reserves and net write-offs are not included in the net interest yield calculation.

(F) For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans. The adoption of new GAAP on January 1, 2010 resulted in accounting for both the Company’s securitized and non-securitized cardmember loans in the consolidated financial statements. As a result, the Company’s 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable.  Refer to page 20 for a discussion of managed basis information.

(G) For periods ended on or prior to December 31, 2009, the information presented includes the adjustments to the GAAP “owned” basis presentation for such periods attributable to securitization activity for interest income and interest expense to arrive at the non-GAAP “managed” basis information, which adjustments are set forth under the U.S. Card Services managed basis presentation on page 23.

-33-