0000004962-18-000079.txt : 20180620 0000004962-18-000079.hdr.sgml : 20180620 20180620163248 ACCESSION NUMBER: 0000004962-18-000079 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180620 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20180620 DATE AS OF CHANGE: 20180620 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN EXPRESS CO CENTRAL INDEX KEY: 0000004962 STANDARD INDUSTRIAL CLASSIFICATION: FINANCE SERVICES [6199] IRS NUMBER: 134922250 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07657 FILM NUMBER: 18909779 BUSINESS ADDRESS: STREET 1: 200 VESEY STREET STREET 2: 50TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 BUSINESS PHONE: 2126402000 MAIL ADDRESS: STREET 1: 200 VESEY STREET STREET 2: 50TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 8-K 1 axpresegmentation.htm FORM 8-K OF AMERICAN EXPRESS COMPANY

 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  June 20, 2018
 
 
  
 
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
 
 
New York
 
1-7657
 
13-4922250
(State or other jurisdiction
of incorporation or organization)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
 
 
 200 Vesey Street
 
 
  New York, New York
 
 10285
 (Address of principal executive offices)
 
 (Zip Code)
 
 
Registrant's telephone number, including area code: (212) 640-2000
 
 
 Not Applicable
 (Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 
  
 
 
Item 7.01
Regulation FD Disclosure

 
 
The following information is furnished under Item 7.01 - Regulation FD Disclosure:

During the first quarter of 2018, we announced organizational changes that combined our U.S. and International consumer businesses into a global consumer services organization, and combined our merchant and network-related businesses, among other changes. Our financial disclosures will reflect these organizational changes starting in the second quarter of 2018, which is consistent with when our executives began to review financial information aligned to the new segments. Our new reportable operating segments are as follows:

§
Global Consumer Services Group (GCSG), which primarily issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel services and non-card financing products, and manages certain international joint ventures and our partnership agreements in China.

§
Global Merchant and Network Services (GMNS), which operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS enters into partnership agreements with third-party card issuers and acquirers, licensing the American Express brand and extending the reach of the global network. GMNS also manages loyalty coalition businesses in certain countries around the world and our reloadable prepaid and gift card businesses.

§
Global Commercial Services (GCS), which primarily issues a wide range of proprietary corporate and small business cards and provides payment and expense management services globally. In addition, GCS provides commercial financing products.

Certain preliminary financial and other information reflecting the realignment of our segments is attached to this report as Exhibit 99.1 and is incorporated herein by reference. Such information is being furnished in order to assist investors in understanding how our business segment results would historically have been presented had such results been reported to reflect the manner in which our business segments are managed effective for the second quarter of 2018. Such information does not represent a restatement of previously-issued consolidated financial statements, but rather represents a reclassification among our segments, and does not affect reported net income, earnings per share, total assets, stockholders' equity or regulatory capital for any of the previously reported periods.

EXHIBIT



 
-2-
 
 



 
SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 



 
 
 
 
 
AMERICAN EXPRESS COMPANY
(REGISTRANT)
 
 
 
By:
/s/ Tangela S. Richter
 
 
 
Name: Tangela S. Richter
 
 
 
Title: Corporate Secretary
 
 
 
 
 
 



Date:  June 20, 2018
 
 



 
-3-



 EX-99.1 2 exhibit99_1.htm EXHIBIT 99.1
EXHIBIT 99.1
 
Global Consumer Services Group
 (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
  

 
  
Q1'18
    
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
3,491
    
$
3,535
    
$
3,361
    
$
3,345
    
$
3,137
    
$
3,215
    
$
3,146
    
$
3,373
    
$
3,259
  
Interest income
    
1,949
      
1,848
      
1,781
      
1,616
      
1,544
      
1,466
      
1,409
      
1,511
      
1,619
  
Interest expense
    
327
      
306
      
281
      
247
      
213
      
201
      
203
      
213
      
211
  
Net interest income
    
1,622
      
1,542
      
1,500
      
1,369
      
1,331
      
1,265
      
1,206
      
1,298
      
1,408
  
Total revenues net of interest expense
    
5,113
      
5,077
      
4,861
      
4,714
      
4,468
      
4,480
      
4,352
      
4,671
      
4,667
  
Provisions for losses
    
530
      
641
      
568
      
428
      
359
      
454
      
359
      
315
      
262
  
Total revenues net of interest expense after provisions for losses
    
4,583
      
4,436
      
4,293
      
4,286
      
4,109
      
4,026
      
3,993
      
4,356
      
4,405
  
Expenses
                                                                        
Marketing, business development, rewards, Card Member services
    
2,446
      
2,479
      
2,351
      
2,322
      
2,081
      
2,353
      
2,104
      
2,163
      
2,094
  
Salaries and employee benefits and other operating expenses
    
1,089
      
1,100
      
1,026
      
1,066
      
1,054
      
1,191
      
1,091
      
287
      
989
  
Total expenses
    
3,535
      
3,579
      
3,377
      
3,388
      
3,135
      
3,544
      
3,195
      
2,450
      
3,083
  
Pretax segment income
    
1,048
      
857
      
916
      
898
      
974
      
482
      
798
      
1,906
      
1,322
  
Income tax provision
    
222
      
233
      
236
      
283
      
301
      
100
      
261
      
654
      
454
  
Segment income
  
$
826
    
$
624
    
$
680
    
$
615
    
$
673
    
$
382
    
$
537
    
$
1,252
    
$
868
  
Effective tax rate
    
21.2
%
    
27.2
%
    
25.8
%
    
31.5
%
    
30.9
%
    
20.7
%
    
32.7
%
    
34.3
%
    
34.3
%
   
(Billions, except percentages and where indicated)
                                                                        
Proprietary card billed business (A)
                                                                        
US
  
$
86.0
    
$
91.0
    
$
83.7
    
$
84.8
    
$
77.5
    
$
84.2
    
$
78.6
    
$
93.4
    
$
89.0
  
Outside the United States
  
$
33.3
    
$
33.8
    
$
30.5
    
$
28.8
    
$
26.6
    
$
28.1
    
$
26.5
    
$
26.6
    
$
24.7
  
Total
  
$
119.3
    
$
124.8
    
$
114.2
    
$
113.6
    
$
104.1
    
$
112.3
    
$
105.1
    
$
120.0
    
$
113.7
  
Proprietary cards-in-force (millions) (B)
                                                                        
US
    
36.1
      
34.9
      
34.4
      
33.8
      
33.2
      
32.7
      
32.3
      
31.8
      
40.9
  
Outside the United States
    
16.2
      
15.8
      
15.7
      
15.5
      
15.3
      
15.1
      
14.9
      
15.0
      
14.8
  
Total
    
52.3
      
50.7
      
50.1
      
49.3
      
48.5
      
47.8
      
47.2
      
46.8
      
55.7
  
Proprietary basic cards-in-force (millions) (B)
                                                                        
US
    
25.8
      
25.0
      
24.6
      
24.2
      
23.7
      
23.3
      
22.9
      
22.6
      
28.8
  
Outside the United States
    
11.2
      
10.9
      
10.8
      
10.7
      
10.6
      
10.4
      
10.3
      
10.2
      
10.1
  
Total
    
37.0
      
35.9
      
35.4
      
34.9
      
34.3
      
33.7
      
33.2
      
32.8
      
38.9
  
 
                                                                        
Average proprietary basic Card Member spending (dollars)
      
US
  
$
3,371
    
$
3,672
    
$
3,433
    
$
3,538
    
$
3,297
    
$
3,643
    
$
3,452
    
$
3,417
    
$
3,092
  
Outside the United States
  
$
3,001
    
$
3,106
    
$
2,840
    
$
2,726
    
$
2,542
    
$
2,720
    
$
2,596
    
$
2,609
    
$
2,455
  
Total
  
$
3,259
    
$
3,499
    
$
3,251
    
$
3,289
    
$
3,064
    
$
3,358
    
$
3,186
    
$
3,197
    
$
2,927
  
 
                                                                        
Segment assets (C)
  
$
120.9
    
$
123.6
    
$
117.9
    
$
112.8
    
$
110.1
    
$
114.1
    
$
105.0
    
$
106.1
    
$
111.8
  
 
                                                                        
Card Member loans:
                                                                        
Total loans
                                                                        
US
  
$
52.7
    
$
53.7
    
$
49.3
    
$
48.3
    
$
46.7
    
$
48.8
    
$
44.9
    
$
44.6
    
$
42.4
  
Outside the United States
  
$
8.6
    
$
8.6
    
$
7.8
    
$
7.3
    
$
6.8
    
$
6.9
    
$
6.7
    
$
6.6
    
$
6.7
  
Total
  
$
61.3
    
$
62.3
    
$
57.1
    
$
55.6
    
$
53.5
    
$
55.7
    
$
51.6
    
$
51.2
    
$
49.1
  
 
                                                                        
Average loans
                                                                        
US
  
$
52.9
    
$
51.1
    
$
49.0
    
$
47.7
    
$
47.3
    
$
46.5
    
$
44.8
    
$
43.5
    
$
42.5
  
Outside the United States
  
$
8.7
    
$
8.1
    
$
7.5
    
$
7.1
    
$
6.9
    
$
6.8
    
$
6.7
    
$
6.8
    
$
6.8
  
Total
  
$
61.6
    
$
59.2
    
$
56.5
    
$
54.8
    
$
54.2
    
$
53.3
    
$
51.5
    
$
50.3
    
$
49.3
  
 
                                                                        
Lending Credit Metrics
                                                                        
US
                                                                        
Net write-off rate (principal only) (D)
    
2.0
%
    
1.9
%
    
1.8
%
    
1.8
%
    
1.7
%
    
1.5
%
    
1.6
%
    
1.5
%
    
1.5
%
Net write-off rate (principal, interest and fees) (D)
    
2.4
%
    
2.2
%
    
2.1
%
    
2.1
%
    
2.0
%
    
1.8
%
    
1.9
%
    
1.7
%
    
1.7
%
30+ days past due loans as a % of total
    
1.4
%
    
1.3
%
    
1.3
%
    
1.1
%
    
1.2
%
    
1.1
%
    
1.1
%
    
1.1
%
    
1.0
%
Outside the United States
                                                                        
Net write-off rate (principal only) (D)
    
2.1
%
    
2.0
%
    
2.2
%
    
2.0
%
    
2.0
%
    
2.0
%
    
2.1
%
    
2.1
%
    
1.9
%
Net write-off rate (principal, interest and fees) (D)
    
2.6
%
    
2.4
%
    
2.7
%
    
2.5
%
    
2.5
%
    
2.5
%
    
2.6
%
    
2.5
%
    
2.4
%
30+ days past due loans as a % of total
    
1.6
%
    
1.4
%
    
1.6
%
    
1.7
%
    
1.7
%
    
1.6
%
    
1.7
%
    
1.7
%
    
1.8
%
Total
                                                                        
Net write-off rate (principal only) (D)
    
2.0
%
    
1.9
%
    
1.8
%
    
1.8
%
    
1.7
%
    
1.6
%
    
1.7
%
    
1.5
%
    
1.5
%
Net write-off rate (principal, interest and fees) (D)
    
2.4
%
    
2.3
%
    
2.2
%
    
2.1
%
    
2.1
%
    
1.9
%
    
2.0
%
    
1.8
%
    
1.8
%
30+ days past due loans as a % of total
    
1.4
%
    
1.3
%
    
1.3
%
    
1.2
%
    
1.3
%
    
1.2
%
    
1.2
%
    
1.1
%
    
1.1
%
 
                                                                        
Net interest income divided by average Card Member loans (E)
    
10.5
%
    
10.4
%
    
10.6
%
    
10.0
%
    
9.8
%
    
9.5
%
    
9.4
%
    
9.0
%
    
9.3
%
Net interest yield on average Card Member loans (E)
    
10.8
%
    
10.5
%
    
10.7
%
    
10.2
%
    
10.1
%
    
9.7
%
    
9.7
%
    
9.3
%
    
9.6
%
US
    
10.7
%
    
10.5
%
    
10.6
%
    
10.1
%
    
10.0
%
    
9.5
%
    
9.4
%
    
9.1
%
    
9.4
%
Outside the United States
    
11.0
%
    
10.8
%
    
11.6
%
    
11.2
%
    
11.1
%
    
11.0
%
    
11.2
%
    
10.8
%
    
10.8
%
 
                                                                        
Card Member receivables:
                                                                        
US
  
$
11.7
    
$
13.1
    
$
11.2
    
$
11.3
    
$
10.9
    
$
12.3
    
$
10.1
    
$
10.6
    
$
10.3
  
Outside the United States
  
$
7.0
    
$
7.8
    
$
6.5
    
$
6.0
    
$
5.6
    
$
6.0
    
$
5.6
    
$
5.6
    
$
5.6
  
Total receivables
  
$
18.7
    
$
20.9
    
$
17.7
    
$
17.3
    
$
16.5
    
$
18.3
    
$
15.7
    
$
16.2
    
$
15.9
  
Credit Metrics
                                                                        
US
                                                                        
Net write-off rate (principal only) (D)
    
1.3
%
    
1.3
%
    
1.2
%
    
1.2
%
    
1.5
%
    
1.3
%
    
1.1
%
    
1.3
%
    
1.8
%
Net write-off rate (principal and fees) (D)
    
1.5
%
    
1.4
%
    
1.3
%
    
1.4
%
    
1.7
%
    
1.5
%
    
1.3
%
    
1.6
%
    
2.0
%
30+ days past due loans as a % of total
    
1.3
%
    
1.1
%
    
1.2
%
    
1.1
%
    
1.3
%
    
1.2
%
    
1.4
%
    
1.2
%
    
1.4
%
Outside the United States
                                                                        
Net write-off rate (principal only) (D)
    
2.0
%
    
1.8
%
    
2.2
%
    
1.9
%
    
2.1
%
    
1.8
%
    
2.0
%
    
2.2
%
    
2.2
%
Net write-off rate (principal and fees) (D)
    
2.2
%
    
1.9
%
    
2.4
%
    
2.0
%
    
2.3
%
    
1.9
%
    
2.2
%
    
2.3
%
    
2.4
%
30+ days past due as a % of total
    
1.5
%
    
1.3
%
    
1.4
%
    
1.4
%
    
1.5
%
    
1.3
%
    
1.5
%
    
1.4
%
    
1.5
%
Total
                                                                        
Net write-off rate (principal only) (D)
    
1.6
%
    
1.5
%
    
1.5
%
    
1.5
%
    
1.7
%
    
1.4
%
    
1.5
%
    
1.6
%
    
1.9
%
Net write-off rate (principal and fees) (D)
    
1.7
%
    
1.6
%
    
1.7
%
    
1.6
%
    
1.9
%
    
1.6
%
    
1.6
%
    
1.8
%
    
2.1
%
30+ days past due as a % of total
    
1.4
%
    
1.2
%
    
1.3
%
    
1.2
%
    
1.3
%
    
1.2
%
    
1.4
%
    
1.3
%
    
1.4
%

 
 
Please see Appendix V for footnote references


-1-

 


Global Commercial Services
 (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
 
 
 
 
 
 

 
  
Q1'18
    
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
2,838
    
$
2,866
    
$
2,734
    
$
2,738
    
$
2,604
    
$
2,654
    
$
2,573
    
$
2,635
    
$
2,511
  
Interest income
    
377
      
357
      
351
      
334
      
319
      
296
      
282
      
310
      
321
  
Interest expense
    
171
      
168
      
159
      
145
      
123
      
120
      
117
      
123
      
112
  
Net interest income
    
206
      
189
      
192
      
189
      
196
      
176
      
165
      
187
      
209
  
Total revenues net of interest expense
    
3,044
      
3,055
      
2,926
      
2,927
      
2,800
      
2,830
      
2,738
      
2,822
      
2,720
  
Provisions for losses
    
240
      
187
      
195
      
152
      
209
      
170
      
135
      
140
      
159
  
Total revenues net of interest expense after provisions for losses
    
2,804
      
2,868
      
2,731
      
2,775
      
2,591
      
2,660
      
2,603
      
2,682
      
2,561
  
Expenses (C)
                                                                        
Marketing, business development, rewards, Card Member services
    
1,374
      
1,362
      
1,312
      
1,347
      
1,290
      
1,383
      
1,165
      
1,213
      
1,105
  
Salaries and employee benefits and other operating expenses
    
722
      
743
      
685
      
692
      
691
      
763
      
692
      
551
      
701
  
Total expenses
    
2,096
      
2,105
      
1,997
      
2,039
      
1,981
      
2,146
      
1,857
      
1,764
      
1,806
  
Pretax segment income
    
708
      
763
      
734
      
736
      
610
      
514
      
746
      
918
      
755
  
Income tax provision
    
162
      
221
      
229
      
259
      
205
      
152
      
270
      
337
      
273
  
Segment income
  
$
546
    
$
542
    
$
505
    
$
477
    
$
405
    
$
362
    
$
476
    
$
581
    
$
482
  
Effective tax rate
    
22.9
%
    
29.0
%
    
31.2
%
    
35.2
%
    
33.6
%
    
29.6
%
    
36.2
%
    
36.7
%
    
36.2
%
   
(Billions, except percentages and where indicated)
                                                                        
Proprietary card billed business (A)
  
$
115.7
    
$
116.6
    
$
109.7
    
$
109.0
    
$
102.8
    
$
105.1
    
$
100.1
    
$
104.3
    
$
98.5
  
Proprietary cards-in-force (millions) (B)
    
14.1
      
14.0
      
13.9
      
13.8
      
13.7
      
13.6
      
13.6
      
13.4
      
15.2
  
Average basic Card Member spending (dollars)
  
$
8,233
    
$
8,356
    
$
7,907
    
$
7,920
    
$
7,533
    
$
7,729
    
$
7,386
    
$
7,060
    
$
6,509
  
 
                                                                        
Segment assets (C)
  
$
52.1
    
$
49.1
    
$
49.3
    
$
47.3
    
$
46.0
    
$
43.3
    
$
43.3
    
$
42.6
    
$
43.8
  
Card Member loans
  
$
11.5
    
$
11.1
    
$
10.7
    
$
10.4
    
$
10.0
    
$
9.5
    
$
9.1
    
$
8.7
    
$
8.3
  
Card Member receivables
  
$
35.5
    
$
33.1
    
$
33.8
    
$
32.1
    
$
31.2
    
$
29.0
    
$
29.6
    
$
29.1
    
$
28.6
  
 
                                                                        
Card Member loans (F):
                                                                        
Total loans - Global Small Business Services (GSBS)
  
$
11.4
    
$
11.0
    
$
10.7
    
$
10.3
    
$
10.0
    
$
9.5
    
$
9.0
    
$
8.6
    
$
8.3
  
30+ days past due as a % of total - GSBS
    
1.3
%
    
1.2
%
    
1.1
%
    
1.1
%
    
1.2
%
    
1.1
%
    
1.1
%
    
1.1
%
    
1.0
%
Average loans - GSBS
  
$
11.1
    
$
10.9
    
$
10.5
    
$
10.1
    
$
9.6
    
$
9.3
    
$
8.8
    
$
8.5
    
$
8.1
  
Net write-off rate (principal only) - GSBS (D)
    
1.6
%
    
1.6
%
    
1.6
%
    
1.5
%
    
1.6
%
    
1.4
%
    
1.5
%
    
1.3
%
    
1.4
%
Net write-off rate (principal, interest and fees) - GSBS (D)
    
1.9
%
    
1.9
%
    
1.9
%
    
1.8
%
    
1.8
%
    
1.7
%
    
1.8
%
    
1.6
%
    
1.6
%
   
Net interest income divided by average Card Member loans (E)
    
7.4
%
    
6.9
%
    
7.3
%
    
7.4
%
    
8.1
%
    
7.6
%
    
7.5
%
    
7.5
%
    
8.1
%
Net interest yield on average Card Member loans (E)
    
10.7
%
    
10.4
%
    
10.7
%
    
10.8
%
    
11.0
%
    
10.5
%
    
10.5
%
    
10.2
%
    
10.5
%
   
Card Member receivables:
                                                                        
Total receivables - Global Commercial Payments (GCP) (G)
  
$
19.3
    
$
17.0
    
$
17.9
    
$
16.9
    
$
16.6
    
$
14.8
    
$
15.8
    
$
15.3
    
$
15.4
  
90+ days past billing as a % of total - GCP
    
0.8
%
    
0.9
%
    
0.9
%
    
0.8
%
    
0.7
%
    
0.9
%
    
0.8
%
    
0.7
%
    
0.7
%
Net loss ratio (as a % of charge volume) - GCP
    
0.10
%
    
0.11
%
    
0.09
%
    
0.10
%
    
0.11
%
    
0.10
%
    
0.11
%
    
0.09
%
    
0.08
%
Total receivables - GSBS
  
$
16.2
    
$
16.1
    
$
15.9
    
$
15.2
    
$
14.6
    
$
14.3
    
$
13.8
    
$
13.7
    
$
13.2
  
30+ days past due as a % of total - GSBS
    
1.8
%
    
1.6
%
    
1.4
%
    
1.4
%
    
1.6
%
    
1.6
%
    
1.5
%
    
1.4
%
    
1.6
%
Net write-off rate (principal only) - GSBS (D)
    
1.7
%
    
1.5
%
    
1.5
%
    
1.6
%
    
1.8
%
    
1.2
%
    
1.3
%
    
1.6
%
    
1.8
%
Net write-off rate (principal and fees) - GSBS (D)
    
1.9
%
    
1.7
%
    
1.7
%
    
1.8
%
    
2.0
%
    
1.4
%
    
1.5
%
    
1.9
%
    
2.1
%
 
                                                                        

 
Please see Appendix V for footnote references

-2-


Global Merchant & Network Services
 (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
 
 
 
 
 
 

 
  
Q1'18
    
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
1,532
    
$
1,554
    
$
1,491
    
$
1,518
    
$
1,462
    
$
1,523
    
$
1,478
    
$
1,575
    
$
1,517
  
Interest income
    
9
      
10
      
8
      
9
      
15
      
10
      
9
      
5
      
13
  
Interest expense
    
(59
)
    
(55
)
    
(48
)
    
(47
)
    
(38
)
    
(31
)
    
(32
)
    
(36
)
    
(34
)
Net interest income
    
68
      
65
      
56
      
56
      
53
      
41
      
41
      
41
      
47
  
Total revenues net of interest expense
    
1,600
      
1,619
      
1,547
      
1,574
      
1,515
      
1,564
      
1,519
      
1,616
      
1,564
  
Provisions for losses
    
5
      
4
      
9
      
1
      
2
      
2
      
10
      
(2
)
    
14
  
Total revenues net of interest expense after provisions for losses
    
1,595
      
1,615
      
1,538
      
1,573
      
1,513
      
1,562
      
1,509
      
1,618
      
1,550
  
Expenses
                                                                        
Marketing, business development, rewards, Card Member services
    
267
      
332
      
292
      
314
      
289
      
422
      
361
      
397
      
369
  
Salaries and employee benefits and other operating expenses
    
620
      
617
      
685
      
515
      
550
      
606
      
548
      
573
      
572
  
Total expenses
    
887
      
949
      
977
      
829
      
839
      
1,028
      
909
      
970
      
941
  
Pretax segment income
    
708
      
666
      
561
      
744
      
674
      
534
      
600
      
648
      
609
  
Income tax provision
    
192
      
207
      
141
      
268
      
241
      
175
      
220
      
240
      
226
  
Segment income
  
$
516
    
$
459
    
$
420
    
$
476
    
$
433
    
$
359
    
$
380
    
$
408
    
$
383
  
Effective tax rate
    
27.1
%
    
31.1
%
    
25.1
%
    
36.0
%
    
35.8
%
    
32.8
%
    
36.7
%
    
37.0
%
    
37.1
%
 
                                                                        
Loyalty Coalition Revenue
  
$
111
    
$
121
    
$
115
    
$
114
    
$
102
    
$
105
    
$
106
    
$
104
    
$
94
  
   
(Billions, except percentages and where indicated)
                                                                        
   
Average discount rate (H)
    
2.37
%
    
2.37
%
    
2.40
%
    
2.42
%
    
2.43
%
    
2.42
%
    
2.45
%
    
2.41
%
    
2.42
%
Segment assets (C)
  
$
30.9
    
$
30.5
    
$
27.8
    
$
26.7
    
$
25.9
    
$
25.8
    
$
24.3
    
$
25.2
    
$
25.3
  

 
Please see Appendix V for footnote references

-3-




American Express Company *
 (Preliminary)
Appendix I
Consolidated Statements of Income
 
(Millions, except percentages and per share amounts)
 

 
  
Q1'18
    
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
                                                      
Discount revenue
  
$
5,889
    
$
6,060
    
$
5,700
    
$
5,743
    
$
5,387
    
$
5,640
    
$
5,408
    
$
5,801
    
$
5,528
  
Net card fees
    
830
      
785
      
786
      
771
      
748
      
725
      
747
      
715
      
699
  
Other fees and commissions
    
781
      
778
      
755
      
746
      
711
      
663
      
686
      
691
      
678
  
Other
    
377
      
345
      
372
      
379
      
361
      
421
      
409
      
421
      
427
  
Total non-interest revenues
    
7,877
      
7,968
      
7,613
      
7,639
      
7,207
      
7,449
      
7,250
      
7,628
      
7,332
  
Interest income
                                                                        
Interest on loans
    
2,326
      
2,205
      
2,131
      
1,950
      
1,862
      
1,762
      
1,692
      
1,820
      
1,940
  
Interest and dividends on investment securities
    
21
      
21
      
22
      
23
      
23
      
27
      
34
      
34
      
36
  
Deposits with banks and other
    
115
      
93
      
92
      
81
      
60
      
35
      
40
      
33
      
31
  
Total interest income
    
2,462
      
2,319
      
2,245
      
2,054
      
1,945
      
1,824
      
1,766
      
1,887
      
2,007
  
Interest expense
                                                                        
Deposits
    
270
      
241
      
213
      
176
      
149
      
148
      
150
      
150
      
150
  
Long-term debt and other
    
351
      
339
      
355
      
345
      
294
      
266
      
280
      
286
      
275
  
Total interest expense
    
621
      
580
      
568
      
521
      
443
      
414
      
430
      
436
      
425
  
Net interest income
    
1,841
      
1,739
      
1,677
      
1,533
      
1,502
      
1,410
      
1,336
      
1,451
      
1,582
  
Total revenues net of interest expense
    
9,718
      
9,707
      
9,290
      
9,172
      
8,709
      
8,859
      
8,586
      
9,079
      
8,914
  
Provisions for losses
                                                                        
Charge card
    
242
      
205
      
214
      
163
      
213
      
200
      
174
      
153
      
169
  
Card Member loans
    
499
      
596
      
531
      
404
      
337
      
404
      
319
      
285
      
227
  
Other
    
34
      
33
      
25
      
16
      
23
      
22
      
11
      
24
      
39
  
Total provisions for losses
    
775
      
834
      
770
      
583
      
573
      
626
      
504
      
462
      
435
  
Total revenues net of interest expense after provisions for losses
    
8,943
      
8,873
      
8,520
      
8,589
      
8,136
      
8,233
      
8,082
      
8,617
      
8,479
  
   
Expenses
                                                                        
Marketing and business development
    
1,345
      
1,535
      
1,446
      
1,456
      
1,285
      
1,859
      
1,548
      
1,481
      
1,361
  
Card Member rewards
    
2,347
      
2,262
      
2,168
      
2,196
      
2,061
      
2,034
      
1,816
      
2,032
      
1,937
  
Card Member services
    
409
      
383
      
351
      
341
      
317
      
279
      
274
      
272
      
275
  
Salaries and employee benefits
    
1,326
      
1,436
      
1,265
      
1,293
      
1,264
      
1,207
      
1,263
      
1,451
      
1,338
  
Professional services
    
457
      
534
      
494
      
511
      
501
      
703
      
614
      
607
      
584
  
Occupancy and equipment
    
520
      
493
      
567
      
484
      
474
      
506
      
429
      
437
      
465
  
Other, net
    
457
      
432
      
398
      
351
      
395
      
512
      
402
      
(630
)
    
313
  
Total expenses
    
6,861
      
7,075
      
6,689
      
6,632
      
6,297
      
7,100
      
6,346
      
5,650
      
6,273
  
Pretax income
    
2,082
      
1,798
      
1,831
      
1,957
      
1,839
      
1,133
      
1,736
      
2,967
      
2,206
  
Income tax provision
    
448
      
3,004
      
472
      
613
      
588
      
324
      
594
      
982
      
767
  
Net income (loss)
  
$
1,634
    
$
(1,206
)
  
$
1,359
    
$
1,344
    
$
1,251
    
$
809
    
$
1,142
    
$
1,985
    
$
1,439
  
Net income (loss) attributable to common shareholders (I)
  
$
1,600
    
$
(1,228
)
  
$
1,327
    
$
1,314
    
$
1,220
    
$
784
    
$
1,112
    
$
1,949
    
$
1,407
  
Effective tax rate
    
21.5
%
    
167.1
%
    
25.8
%
    
31.3
%
    
32.0
%
    
28.6
%
    
34.2
%
    
33.1
%
    
34.8
%
 
                                                                        
Earnings Per Common Share
                                                                        
Basic
                                                                        
Net income (loss) attributable to common shareholders
  
$
1.86
    
$
(1.42
)
  
$
1.51
    
$
1.48
    
$
1.36
    
$
0.86
    
$
1.21
    
$
2.08
    
$
1.46
  
Average common shares outstanding
    
859
      
865
      
878
      
890
      
899
      
910
      
920
      
938
      
961
  
Diluted
                                                                        
Net income (loss) attributable to common shareholders
  
$
1.86
    
$
(1.42
)
  
$
1.51
    
$
1.47
    
$
1.35
    
$
0.86
    
$
1.21
    
$
2.07
    
$
1.46
  
Average common shares outstanding
    
861
      
865
      
881
      
893
      
903
      
913
      
923
      
941
      
963
  
Cash dividends declared per common share
  
$
0.35
    
$
0.35
    
$
0.35
    
$
0.32
    
$
0.32
    
$
0.32
    
$
0.32
    
$
0.29
    
$
0.29
  
   
* The Company's Consolidated Statements of Income have not been affected by the previously mentioned segment and allocation changes.
  
 

 
Please see Appendix V for footnote references
 
-4-





American Express Company
 
 (Preliminary)
Appendix II
Selected Statistical Information
 
 
(Billions, except percentages and where indicated)
 
 

 
 
  
Q1'18
    
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Card billed business (A)
                                                      
United States
  
$
182.5
    
$
188.9
    
$
176.4
    
$
177.6
    
$
165.4
    
$
174.4
    
$
164.6
    
$
185.1
    
$
176.3
  
Outside the United States
    
101.3
      
102.5
      
95.5
      
92.0
      
86.9
      
88.8
      
86.6
      
84.2
      
77.5
  
Total
  
$
283.8
    
$
291.4
    
$
271.9
    
$
269.6
    
$
252.3
    
$
263.2
    
$
251.2
    
$
269.3
    
$
253.8
  
Proprietary
  
$
236.9
    
$
242.6
    
$
225.3
    
$
223.8
    
$
208.9
    
$
218.6
    
$
206.4
    
$
225.5
    
$
213.3
  
Global Network Services (GNS)
    
46.9
      
48.8
      
46.6
      
45.8
      
43.4
      
44.6
      
44.8
      
43.8
      
40.5
  
Total
  
$
283.8
    
$
291.4
    
$
271.9
    
$
269.6
    
$
252.3
    
$
263.2
    
$
251.2
    
$
269.3
    
$
253.8
  
Cards-in-force (millions) (B)
                                                                        
United States
    
51.3
      
50.0
      
49.5
      
48.9
      
48.2
      
47.5
      
47.1
      
47.0
      
57.9
  
Outside the United States
    
62.9
      
62.8
      
63.4
      
63.3
      
63.0
      
62.4
      
61.7
      
61.2
      
60.7
  
Total
    
114.2
      
112.8
      
112.9
      
112.2
      
111.2
      
109.9
      
108.8
      
108.2
      
118.6
  
Proprietary
    
66.4
      
64.6
      
63.9
      
63.0
      
62.2
      
61.3
      
60.7
      
60.2
      
70.9
  
GNS
    
47.8
      
48.2
      
49.0
      
49.2
      
49.0
      
48.6
      
48.1
      
48.0
      
47.7
  
Total
    
114.2
      
112.8
      
112.9
      
112.2
      
111.2
      
109.9
      
108.8
      
108.2
      
118.6
  
Basic cards-in-force (millions) (B)
                                                                        
United States
    
40.4
      
39.4
      
39.0
      
38.6
      
38.1
      
37.4
      
37.0
      
37.0
      
45.1
  
Outside the United States
    
52.4
      
52.2
      
52.7
      
52.6
      
52.2
      
51.7
      
51.1
      
50.5
      
50.0
  
Total
    
92.8
      
91.6
      
91.7
      
91.2
      
90.3
      
89.1
      
88.1
      
87.5
      
95.1
  
Average proprietary basic Card Member spending (dollars)
                                                                        
United States
  
$
5,015
    
$
5,300
    
$
5,018
    
$
5,128
    
$
4,859
    
$
5,181
    
$
4,937
    
$
4,672
    
$
4,249
  
Outside the United States
  
$
3,869
    
$
3,918
    
$
3,598
    
$
3,468
    
$
3,283
    
$
3,401
    
$
3,264
    
$
3,319
    
$
3,082
  
Total
  
$
4,677
    
$
4,890
    
$
4,596
    
$
4,633
    
$
4,387
    
$
4,647
    
$
4,433
    
$
4,313
    
$
3,952
  
Card Member loans
                                                                        
United States
  
$
63.9
    
$
64.5
    
$
59.9
    
$
58.5
    
$
56.6
    
$
58.3
    
$
53.9
    
$
53.2
    
$
50.7
  
Outside the United States
    
8.9
      
8.9
      
8.0
      
7.5
      
7.0
      
7.0
      
6.7
      
6.7
      
6.7
  
Total
  
$
72.8
    
$
73.4
    
$
67.9
    
$
66.0
    
$
63.6
    
$
65.3
    
$
60.6
    
$
59.9
    
$
57.4
  
 
                                                                        
Average discount rate (H)
    
2.37
%
    
2.37
%
    
2.40
%
    
2.42
%
    
2.43
%
    
2.42
%
    
2.45
%
    
2.41
%
    
2.42
%
Average fee per card (dollars) (J)
  
$
51
    
$
49
    
$
49
    
$
49
    
$
48
    
$
47
    
$
49
    
$
42
    
$
40
  
 
                                                                        
Worldwide Card Member loans:
                                                                        
Total loans
  
$
72.8
    
$
73.4
    
$
67.9
    
$
66.0
    
$
63.6
    
$
65.3
    
$
60.6
    
$
59.9
    
$
57.4
  
Loss reserves (millions):
                                                                        
Beginning balance
  
$
1,706
    
$
1,502
    
$
1,320
    
$
1,248
    
$
1,223
    
$
1,114
    
$
1,091
    
$
1,012
    
$
1,028
  
Provisions - principal, interest and fees
    
499
      
596
      
531
      
404
      
337
      
404
      
319
      
285
      
227
  
Net write-offs - principal less recoveries
    
(358
)
    
(325
)
    
(299
)
    
(285
)
    
(272
)
    
(243
)
    
(250
)
    
(223
)
    
(214
)
Net write-offs - interest and fees less recoveries
    
(71
)
    
(64
)
    
(57
)
    
(55
)
    
(51
)
    
(47
)
    
(48
)
    
(40
)
    
(40
)
Other (K)
    
10
      
(3
)
    
7
      
8
      
11
      
(5
)
    
2
      
57
      
11
  
Ending balance
  
$
1,786
    
$
1,706
    
$
1,502
    
$
1,320
    
$
1,248
    
$
1,223
    
$
1,114
    
$
1,091
    
$
1,012
  
Ending reserves - principal
  
$
1,691
    
$
1,622
    
$
1,427
    
$
1,247
    
$
1,179
    
$
1,160
    
$
1,050
    
$
1,037
    
$
959
  
Ending reserves - interest and fees
  
$
95
    
$
84
    
$
75
    
$
73
    
$
69
    
$
63
    
$
64
    
$
54
    
$
53
  
% of loans
    
2.5
%
    
2.3
%
    
2.2
%
    
2.0
%
    
2.0
%
    
1.9
%
    
1.8
%
    
1.8
%
    
1.8
%
% of past due
    
174
%
    
177
%
    
174
%
    
167
%
    
158
%
    
161
%
    
160
%
    
160
%
    
161
%
Average loans
  
$
72.7
    
$
70.1
    
$
67.1
    
$
65.1
    
$
63.9
    
$
62.6
    
$
60.3
    
$
58.8
    
$
57.4
  
Net write-off rate (principal only) (D)
    
2.0
%
    
1.8
%
    
1.8
%
    
1.8
%
    
1.7
%
    
1.6
%
    
1.7
%
    
1.5
%
    
1.5
%
Net write-off rate (principal, interest and fees) (D)
    
2.4
%
    
2.2
%
    
2.1
%
    
2.1
%
    
2.0
%
    
1.9
%
    
2.0
%
    
1.8
%
    
1.8
%
30+ days past due loans as a % of total
    
1.4
%
    
1.3
%
    
1.3
%
    
1.2
%
    
1.2
%
    
1.2
%
    
1.1
%
    
1.1
%
    
1.1
%
 
                                                                        
Net interest income divided by average Card Member loans (E)
    
10.1
%
    
9.9
%
    
10.0
%
    
9.4
%
    
9.4
%
    
9.0
%
    
8.9
%
    
8.6
%
    
8.9
%
Net interest yield on average Card Member loans (E)
    
10.8
%
    
10.5
%
    
10.7
%
    
10.3
%
    
10.3
%
    
9.8
%
    
9.8
%
    
9.4
%
    
9.7
%
 
                                                                        
Worldwide Card Member receivables:
                                                                        
Total receivables
  
$
54.2
    
$
54.0
    
$
51.5
    
$
49.4
    
$
47.6
    
$
47.3
    
$
45.3
    
$
45.2
    
$
44.5
  
Loss reserves (millions):
                                                                        
Beginning balance
  
$
521
    
$
512
    
$
475
    
$
491
    
$
467
    
$
437
    
$
423
    
$
446
    
$
462
  
Provisions - principal
    
242
      
205
      
214
      
163
      
213
      
200
      
174
      
153
      
169
  
Net write-offs - principal less recoveries
    
(199
)
    
(188
)
    
(175
)
    
(179
)
    
(194
)
    
(156
)
    
(159
)
    
(173
)
    
(186
)
Other (K)
    
1
      
(8
)
    
(2
)
    
-
      
5
      
(14
)
    
(1
)
    
(3
)
    
1
  
Ending balance
  
$
565
    
$
521
    
$
512
    
$
475
    
$
491
    
$
467
    
$
437
    
$
423
    
$
446
  
% of receivables
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
0.9
%
    
1.0
%
Net write-off rate, excluding Global Corporate Payments (GCP) (principal only) (D)
    
1.6
%
    
1.5
%
    
1.5
%
    
1.5
%
    
1.7
%
    
1.3
%
    
1.4
%
    
1.6
%
    
1.9
%
Net write-off rate, excluding GCP (principal and fees) (D)
    
1.8
%
    
1.6
%
    
1.7
%
    
1.7
%
    
2.0
%
    
1.5
%
    
1.6
%
    
1.8
%
    
2.1
%
30+ days past due as a % of total, excluding GCP
    
1.5
%
    
1.4
%
    
1.3
%
    
1.3
%
    
1.5
%
    
1.4
%
    
1.4
%
    
1.3
%
    
1.5
%
GCP Net loss ratio (as a % of charge volume) (G)
    
0.10
%
    
0.11
%
    
0.09
%
    
0.10
%
    
0.11
%
    
0.10
%
    
0.11
%
    
0.09
%
    
0.08
%
GCP 90+ days past billing as a % of total (G)
    
0.8
%
    
0.9
%
    
0.9
%
    
0.8
%
    
0.7
%
    
0.9
%
    
0.8
%
    
0.7
%
    
0.7
%


 
Please see Appendix V for footnote references

-5-





American Express Company
(Preliminary)
Appendix III
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Billed Business Growth Trend
  
 
 
 
 
 
 
 
 
 
 
YOY % change
 
Reported
 
 
FX-Adjusted (L)
 
Q1'18
 
Q4'17
 
Q3'17
 
Q2'17
 
Q1'17
 
Q4'16
 
Q3'16
 
Q2'16
 
Q1'16
 
 
Q1'18
 
Q4'17
 
Q3'17
 
Q2'17
 
Q1'17
 
Q4'16
 
Q3'16
 
Q2'16
 
Q1'16
Worldwide (M)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Billed Business
12%
 
11%
 
8%
 
-
 
(1%)
 
(4%)
 
(3%)
 
3%
 
3%
 
 
10%
 
9%
 
8%
 
1%
 
-
 
(3%)
 
(3%)
 
4%
 
6%
Proprietary billed business
13
 
11
 
9
 
(1)
 
(2)
 
(5)
 
(5)
 
2
 
3
 
 
11
 
10
 
9
 
-
 
(2)
 
(4)
 
(5)
 
3
 
4
GNS
8
 
9
 
4
 
5
 
7
 
3
 
10
 
5
 
5
 
 
3
 
6
 
4
 
5
 
6
 
4
 
10
 
11
 
13
Airline-related volume (9% of Q1'18 worldwide billed business)
10
 
7
 
5
 
1
 
1
 
(3)
 
(6)
 
(4)
 
(4)
 
 
6
 
4
 
3
 
1
 
2
 
(1)
 
(5)
 
(3)
 
(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States (M)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Billed Business
10
 
8
 
7
 
(4)
 
(6)
 
(8)
 
(9)
 
2
 
4
 
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
Proprietary consumer card billed business (N)
11
 
8
 
7
 
(9)
 
(13)
 
(14)
 
(15)
 
-
 
4
 
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
Proprietary small business and corporate services billed business (O)
10
 
9
 
9
 
4
 
2
 
1
 
(1)
 
4
 
5
 
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
T&E-related volume (27% of Q1'18 U.S. billed business)
8
 
6
 
3
 
(3)
 
(5)
 
(6)
 
(7)
 
(1)
 
1
 
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
Non-T&E-related volume (73% of Q1'18 U.S. billed business)
11
 
9
 
8
 
(4)
 
(7)
 
(9)
 
(9)
 
3
 
5
 
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
Airline-related volume (8% of Q1'18 U.S. billed business)
7
 
5
 
2
 
(1)
 
(4)
 
(6)
 
(11)
 
(8)
 
(5)
 
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
n/a
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outside the United States (M)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Billed Business
17
 
15
 
10
 
9
 
12
 
7
 
10
 
5
 
2
 
 
9
 
10
 
9
 
11
 
13
 
11
 
11
 
10
 
9
Japan, Asia Pacific & Australia ("JAPA") billed business
16
 
15
 
8
 
12
 
16
 
14
 
22
 
12
 
8
 
 
10
 
11
 
9
 
13
 
14
 
13
 
16
 
13
 
13
Latin America & Canada ("LACC") billed business
12
 
11
 
10
 
8
 
10
 
1
 
-
 
(9)
 
(14)
 
 
11
 
8
 
8
 
9
 
9
 
7
 
7
 
6
 
5
Europe, Middle East & Africa ("EMEA") billed business
20
 
19
 
13
 
7
 
7
 
1
 
2
 
3
 
3
 
 
7
 
10
 
10
 
10
 
12
 
9
 
7
 
6
 
8
Proprietary consumer card billed business (N)
25
 
20
 
15
 
9
 
8
 
4
 
6
 
4
 
1
 
 
16
 
14
 
13
 
12
 
11
 
10
 
8
 
8
 
8
Proprietary small business and corporate services billed business  (O)
23
 
19
 
14
 
8
 
13
 
7
 
6
 
3
 
(3)
 
 
14
 
13
 
11
 
10
 
14
 
11
 
6
 
6
 
4
 
 
 
Please see Appendix V for footnote references
 
-6-

 

American Express Company
(Preliminary)
Appendix IV
  
 
Net Interest Yield on Average Card Member Loans
  
 
(Millions, except percentages and where indicated)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  
Q1'18
    
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Consolidated
                                                      
Net interest income
  
$
1,841
    
$
1,739
    
$
1,677
    
$
1,533
    
$
1,502
    
$
1,410
    
$
1,336
    
$
1,451
    
$
1,582
  
Exclude:
                                                                        
Interest expense not attributable to the Company's Card Member loan portfolio (P)
    
302
      
297
      
309
      
295
      
247
      
231
      
255
      
238
      
230
  
Interest income not attributable to the Company's Card Member loan portfolio (Q)
    
(213
)
    
(177
)
    
(174
)
    
(156
)
    
(131
)
    
(94
)
    
(105
)
    
(103
)
    
(104
)
Adjusted net interest income (R)
  
$
1,930
    
$
1,859
    
$
1,812
    
$
1,672
    
$
1,618
    
$
1,547
    
$
1,486
    
$
1,586
    
$
1,708
  
Average Card Member loans (billions)
  
$
72.7
    
$
70.1
    
$
67.1
    
$
65.1
    
$
63.9
    
$
62.6
    
$
60.3
    
$
67.6
    
$
70.8
  
Net interest income divided by average Card Member loans (S)
    
10.1
%
    
9.9
%
    
10.0
%
    
9.4
%
    
9.4
%
    
9.0
%
    
8.9
%
    
8.6
%
    
8.9
%
Net interest yield on average Card Member loans (T)
    
10.8
%
    
10.5
%
    
10.7
%
    
10.3
%
    
10.3
%
    
9.8
%
    
9.8
%
    
9.4
%
    
9.7
%
   
Global Consumer Services Group
                                                                        
Net interest income
  
$
1,622
    
$
1,542
    
$
1,499
    
$
1,369
    
$
1,331
    
$
1,265
    
$
1,206
    
$
1,298
    
$
1,408
  
Exclude:
                                                                        
Interest expense not attributable to the Company's Card Member loan portfolio (P)
  
$
54
    
$
62
    
$
60
    
$
53
    
$
43
    
$
42
    
$
48
    
$
40
      
40
  
Interest income not attributable to the Company's Card Member loan portfolio (Q)
    
(41
)
    
(32
)
    
(32
)
    
(25
)
    
(20
)
    
(5
)
    
(2
)
    
(7
)
    
(8
)
Adjusted net interest income (R)
  
$
1,635
    
$
1,572
    
$
1,527
    
$
1,397
    
$
1,354
    
$
1,302
    
$
1,252
    
$
1,331
    
$
1,440
  
Average Card Member loans (billions)
  
$
61.6
    
$
59.2
    
$
56.5
    
$
54.8
    
$
54.2
    
$
53.3
    
$
51.5
    
$
57.5
    
$
60.6
  
Net interest income divided by average Card Member loans (S)
    
10.5
%
    
10.4
%
    
10.6
%
    
10.0
%
    
9.8
%
    
9.5
%
    
9.4
%
    
9.0
%
    
9.3
%
Net interest yield on average Card Member loans (T)
    
10.8
%
    
10.5
%
    
10.7
%
    
10.2
%
    
10.1
%
    
9.7
%
    
9.7
%
    
9.3
%
    
9.6
%
   
Global Commercial Services
                                                                        
Net interest income
  
$
206
    
$
189
    
$
192
    
$
189
    
$
196
    
$
176
    
$
165
    
$
187
    
$
209
  
Exclude:
                                                                        
Interest expense not attributable to the Company's Card Member loan portfolio (P)
    
126
      
128
      
122
      
114
      
96
      
97
      
97
      
97
      
89
  
Interest income not attributable to the Company's Card Member loan portfolio (Q)
    
(37
)
    
(30
)
    
(29
)
    
(28
)
    
(28
)
    
(28
)
    
(28
)
    
(29
)
    
(30
)
Adjusted net interest income (R)
  
$
295
    
$
287
    
$
285
    
$
275
    
$
264
    
$
245
    
$
234
    
$
255
    
$
268
  
Average Card Member loans (billions)
  
$
11.2
    
$
10.9
    
$
10.5
    
$
10.2
    
$
9.7
    
$
9.3
    
$
8.8
    
$
10.0
    
$
10.3
  
Net interest income divided by average Card Member loans (S)
    
7.4
%
    
6.9
%
    
7.3
%
    
7.4
%
    
8.1
%
    
7.6
%
    
7.5
%
    
7.5
%
    
8.1
%
Net interest yield on average Card Member loans (T)
    
10.7
%
    
10.4
%
    
10.7
%
    
10.8
%
    
11.0
%
    
10.5
%
    
10.5
%
    
10.2
%
    
10.5
%


 
Please see Appendix V for footnote references
 
-7-




Appendix V
(Preliminary)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

All Information in the preceding tables is presented on a basis prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), unless otherwise indicated.  Certain reclassifications of prior period amounts have been made to conform to the current period presentation. 
 
(A)
 
Card billed business includes activities (including cash advances) related to cards and other payment products issued by American Express ("proprietary card billed business") and cards issued under network partnership agreements with banks and other institutions, including joint ventures ("GNS card billed business").  Card billed business is reflected in the United States or outside the United States based on where the issuer is located.
(B)
 
Cards-in-force represents the number of cards that are issued and outstanding, except for retail cobrand cards that have no out-of-store spend activity during the prior 12-month period.
 - Basic cards-in-force represents proprietary and GNS consumer cards issued to primary account owners (i.e., not including additional supplemental cards issued on accounts), and all small business and corporate cards.
(C)
 
Includes changes in certain corporate allocations that are not directly attributable to our new segment structure.
(D)
 
The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention.  In addition, because the Company's practice is to include uncollectible interest and/or fees as part of its total provision for losses, a net write-off rate including principal, interest and/or fees is also presented.
(E)
 
See Appendix IV for calculations of net interest yield on average Card Member loans, a non-GAAP measure, and net interest income divided by average Card Member loans, a GAAP measure, and the Company's rationale for presenting net interest yield on average Card Member loans.
(F)
 
Effective Q3'17, GSBS loans and associated metrics reflect worldwide small business services loans.  Prior to Q3'17, due to certain system limitations, small business services loans outside the U.S. and associated credit metrics are reflected within GCSG, and were not significant to either GCSG or GCS.
(G)
 
GCP reflects global, large and middle market corporate accounts.
(H)
 
This calculation is generally designed to reflect pricing at merchants accepting general-purpose American Express cards.  It represents the percentage of billed business (generated from both proprietary and GNS Card Member spending) retained by the Company from merchants it acquires, or for merchants acquired by a third party on its behalf, net of amounts retained by such third party.  Effective January 1, 2018, the Company began including billings volumes related to certain business-to-business products in the calculation of the average discount rate to reflect our expanding business-to-business product offerings.  Prior periods have been conformed to the current period presentation.
(I)
 
Represents net income (loss), less (i) earnings allocated to participating share awards of $13 million, $2 million, $11 million, $11 million, $10 million, $6 million, $9 million, $17 million and $11 million in Q1'18, Q4'17, Q3'17, Q2'17, Q1'17, Q4'16, Q3'16, Q2'16 and Q1'16, respectively; and (ii) dividends on preferred shares of $21 million, $20 million, $21 million, $19 million, $21 million, $19 million, $21 million, $19 million and $21 million in Q1'18, Q4'17, Q3'17, Q2'17, Q1'17, Q4'16, Q3'16, Q2'16 and Q1'16, respectively.
(J)
 
Average fee per card is computed based on proprietary basic net card fees divided by average worldwide proprietary basic cards-in-force.
(K)
 
Other includes foreign currency translation adjustments.
(L)
 
FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for Q1'18 apply to the period(s) against which such results are being compared).
(M)
 
Captions not designated as “proprietary” or “GNS” include both proprietary and GNS data.
(N)
 
Included in GCSG.
(O)
 
Included in GCS.
(P)
 
Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(Q)
 
Primarily represents interest income attributable to Other loans, interest-bearing deposits and our Travelers Cheque and other stored-value investment portfolios.
(R)
 
Adjusted net interest income, a non-GAAP measure that represents net interest income attributable to our Card Member loans (which includes, on a GAAP basis, interest that is deemed uncollectible), excluding the impact of interest expense and interest income not attributable to our Card Member loans.  The Company believes adjusted net interest income is useful to investors because it represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio.
(S)
 
Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans.
(T)
 
Net interest yield on average Card Member loans, a non-GAAP measure that is computed by dividing adjusted net interest income by average Card Member loans, computed on an annualized basis.  Reserves and net write-offs related to uncollectible interest are recorded through provisions for losses and are thus not included in the net interest yield calculation.  The Company believes net interest yield on average Card Member loans is useful to investors because it provides a measure of profitability of the Company's Card Member loan portfolio.
 
 
 
 
-8-