EX-99.2 3 exhibit99_2.htm EXHIBIT 99.2
   EXHIBIT 99.2
   
American Express Company
 (Preliminary)
Consolidated Statements of Income
 
(Millions, except percentages and per share amounts)
 

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YOY % change
    
YTD'18
    
YTD'17
    
YOY % change
  
Non-interest revenues
                                                      
Discount revenue
  
$
6,181
    
$
6,194
    
$
5,889
    
$
6,060
    
$
5,700
      
8
    
$
18,264
    
$
16,830
      
9
  
Net card fees
    
870
      
844
      
830
      
785
      
786
      
11
      
2,544
      
2,305
      
10
  
Other fees and commissions
    
798
      
786
      
781
      
778
      
755
      
6
      
2,365
      
2,212
      
7
  
Other
    
334
      
349
      
377
      
345
      
372
      
(10
)
    
1,060
      
1,112
      
(5
)
Total non-interest revenues
    
8,183
      
8,173
      
7,877
      
7,968
      
7,613
      
7
      
24,233
      
22,459
      
8
  
Interest income
                                                                        
Interest on loans
    
2,554
      
2,387
      
2,326
      
2,205
      
2,131
      
20
      
7,267
      
5,943
      
22
  
Interest and dividends on investment securities
    
35
      
27
      
21
      
21
      
22
      
59
      
83
      
68
      
22
  
Deposits with banks and other
    
149
      
126
      
115
      
93
      
92
      
62
      
390
      
233
      
67
  
Total interest income
    
2,738
      
2,540
      
2,462
      
2,319
      
2,245
      
22
      
7,740
      
6,244
      
24
  
Interest expense
                                                                        
Deposits
    
340
      
300
      
270
      
241
      
213
      
60
      
910
      
538
      
69
  
Long-term debt and other
    
437
      
411
      
351
      
339
      
355
      
23
      
1,199
      
994
      
21
  
Total interest expense
    
777
      
711
      
621
      
580
      
568
      
37
      
2,109
      
1,532
      
38
  
Net interest income
    
1,961
      
1,829
      
1,841
      
1,739
      
1,677
      
17
      
5,631
      
4,712
      
20
  
Total revenues net of interest expense
    
10,144
      
10,002
      
9,718
      
9,707
      
9,290
      
9
      
29,864
      
27,171
      
10
  
Provisions for losses
                                                                        
Charge card
    
214
      
245
      
242
      
205
      
214
      
-
      
701
      
590
      
19
  
Card Member loans
    
560
      
528
      
499
      
596
      
531
      
5
      
1,587
      
1,272
      
25
  
Other
    
43
      
33
      
34
      
33
      
25
      
72
      
110
      
64
      
72
  
Total provisions for losses
    
817
      
806
      
775
      
834
      
770
      
6
      
2,398
      
1,926
      
25
  
Total revenues net of interest expense after provisions for losses
    
9,327
      
9,196
      
8,943
      
8,873
      
8,520
      
9
      
27,466
      
25,245
      
9
  
   
Expenses
                                                                        
Marketing and business development (A)
    
1,642
      
1,663
      
1,345
      
1,535
      
1,446
      
14
      
4,650
      
4,187
      
11
  
Card Member rewards
    
2,400
      
2,433
      
2,347
      
2,262
      
2,168
      
11
      
7,180
      
6,425
      
12
  
Card Member services
    
457
      
416
      
409
      
383
      
351
      
30
      
1,282
      
1,009
      
27
  
Salaries and employee benefits
    
1,350
      
1,280
      
1,326
      
1,436
      
1,265
      
7
      
3,956
      
3,822
      
4
  
Professional services
    
489
      
508
      
457
      
534
      
494
      
(1
)
    
1,454
      
1,506
      
(3
)
Occupancy and equipment
    
489
      
484
      
520
      
493
      
567
      
(14
)
    
1,493
      
1,525
      
(2
)
Other, net (A)
    
382
      
321
      
457
      
432
      
398
      
(4
)
    
1,160
      
1,144
      
1
  
Total expenses
    
7,209
      
7,105
      
6,861
      
7,075
      
6,689
      
8
      
21,175
      
19,618
      
8
  
Pretax income
    
2,118
      
2,091
      
2,082
      
1,798
      
1,831
      
16
      
6,291
      
5,627
      
12
  
Income tax provision
    
464
      
468
      
448
      
3,004
      
472
      
(2
)
    
1,380
      
1,673
      
(18
)
Net income (loss)
  
$
1,654
    
$
1,623
    
$
1,634
    
$
(1,206
)
  
$
1,359
      
22
    
$
4,911
    
$
3,954
      
24
  
Net income (loss) attributable to common shareholders (B)
  
$
1,621
    
$
1,591
    
$
1,600
    
$
(1,228
)
  
$
1,327
      
22
    
$
4,812
    
$
3,861
      
25
  
Effective tax rate
    
21.9
%
    
22.4
%
    
21.5
%
    
167.1
%
    
25.8
%
            
21.9
%
    
29.7
%
        
 
                                                                        
Earnings Per Common Share
                                                                        
Basic
                                                                        
Net income (loss) attributable to common shareholders
  
$
1.89
    
$
1.85
    
$
1.86
    
$
(1.42
)
  
$
1.51
      
25
    
$
5.60
    
$
4.34
      
29
  
Average common shares outstanding
    
858
      
860
      
859
      
865
      
878
      
(2
)
    
859
      
889
      
(3
)
Diluted
                                                                        
Net income (loss) attributable to common shareholders
  
$
1.88
    
$
1.84
    
$
1.86
    
$
(1.42
)
  
$
1.51
      
25
    
$
5.59
    
$
4.33
      
29
  
Average common shares outstanding
    
860
      
862
      
861
      
865
      
881
      
(2
)
    
861
      
892
      
(3
)
Cash dividends declared per common share
  
$
0.39
    
$
0.35
    
$
0.35
    
$
0.35
    
$
0.35
      
11
    
$
1.09
    
$
0.99
      
10
  

 
 
See Appendix III for footnote references
 
 
 
-1-
 
 
 
 

American Express Company
(Preliminary)
Consolidated Balance Sheets and Related Statistical Information
 
(Billions, except percentages, per share amounts and where indicated)
 

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YOY % change
  
Assets
                                    
Cash & cash equivalents
  
$
30
    
$
30
    
$
31
    
$
33
    
$
26
      
15
  
Card Member receivables, less reserves
    
55
      
54
      
54
      
54
      
51
      
8
  
Card Member Loans, less reserves
    
76
      
74
      
71
      
72
      
66
      
15
  
Investment securities
    
6
      
5
      
3
      
3
      
3
      
#
  
Other (C)
    
22
      
22
      
21
      
19
      
23
      
(4
)
Total assets
  
$
189
    
$
185
    
$
180
    
$
181
    
$
169
      
12
  
   
Liabilities and Shareholders' Equity
                                                
Customer deposits
  
$
69
    
$
67
    
$
67
    
$
64
    
$
61
      
13
  
Short-term borrowings
    
2
      
2
      
2
      
3
      
2
      
-
  
Long-term debt
    
55
      
56
      
52
      
56
      
49
      
12
  
Other (C)
    
42
      
39
      
39
      
40
      
36
      
17
  
Total liabilities
    
168
      
164
      
160
      
163
      
148
      
14
  
   
Shareholders' Equity
    
21
      
21
      
20
      
18
      
21
      
-
  
Total liabilities and shareholders' equity
  
$
189
    
$
185
    
$
180
    
$
181
    
$
169
      
12
  
   
Return on average equity (D)
    
18.1
%
    
16.7
%
    
15.2
%
    
13.2
%
    
22.6
%
        
Return on average common equity (D)
    
19.0
%
    
17.5
%
    
15.9
%
    
13.7
%
    
23.9
%
        
Book value per common share (dollars)
  
$
23.27
    
$
22.42
    
$
20.96
    
$
19.42
    
$
22.43
      
4
  

# - Denotes a variance of 100 percent or more.
 
  
 
 
 
 
 
 
 
 

 

 
See Appendix III for footnote references

 
-2-

 


American Express Company
(Preliminary)
Consolidated Capital

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
  
Shares Outstanding (in millions)
    
Beginning of period
    
861
      
860
      
859
      
871
      
885
  
Repurchase of common shares
    
(7
)
    
-
      
-
      
(14
)
    
(15
)
Net impact of employee benefit plans and others
    
-
      
1
      
1
      
2
      
1
  
End of period
    
854
      
861
      
860
      
859
      
871
  
   
Risk-Based Capital Ratios - Basel III ($ in billions) (E)
    
Common Equity Tier 1/Risk Weighted Assets (RWA)
     10.8
%
    
10.1
%
    
9.4
%
    
9.0
%
    
11.9
%
Tier 1
     11.8
%
    
11.1
%
    
10.5
%
    
10.1
%
    
13.0
%
Total
     13.4
%
    
12.8
%
    
12.2
%
    
11.8
%
    
14.7
%
   
Common Equity Tier 1
   $ 16.6    
$
15.2
    
$
13.9
    
$
13.2
    
$
16.4
  
Tier 1 Capital
   $ 18.2    
$
16.8
    
$
15.5
    
$
14.7
    
$
17.9
  
Tier 2 Capital
   $ 2.5    
$
2.5
    
$
2.4
    
$
2.4
    
$
2.3
  
Total Capital
   $ 20.7    
$
19.3
    
$
17.9
    
$
17.1
    
$
20.2
  
RWA
   $ 154.7    
$
150.9
    
$
147.4
    
$
145.9
    
$
138.0
  
Tier 1 Leverage
     10.5
%
    
9.7
%
    
8.8
%
    
8.6
%
    
10.9
%
Supplementary Leverage Ratio (SLR) (F)
    
8.6
%
    
8.3
%
    
7.6
%
    
7.4
%
    
9.3
%
Average Total Assets to calculate the Tier 1 Leverage Ratio (G)
   $
173.3
    
$
172.5
    
$
175.0
    
$
171.2
    
$
164.6
  
Total Leverage Exposure to calculate SLR
   $ 210.7    
$
202.4
    
$
204.4
    
$
198.8
    
$
191.7
  


See Appendix III for footnote references

 
-3-



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

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YOY % change
    
YTD'18
    
YTD'17
    
YOY % change
  
Billed business (H)
                                                      
U.S.
  
$
194.6
    
$
195.4
    
$
182.5
    
$
188.9
    
$
176.4
      
10
    
$
572.5
    
$
519.4
      
10
  
Outside the U.S.
    
100.1
      
101.1
      
101.3
      
102.5
      
95.5
      
5
      
302.5
      
274.4
      
10
  
Total
  
$
294.7
    
$
296.5
    
$
283.8
    
$
291.4
    
$
271.9
      
8
    
$
875.0
    
$
793.8
      
10
  
Proprietary
  
$
250.2
    
$
251.1
    
$
236.9
    
$
242.6
    
$
225.3
      
11
    
$
738.2
    
$
658.0
      
12
  
Global Network Services (GNS)
    
44.5
      
45.4
      
46.9
      
48.8
      
46.6
      
(5
)
    
136.8
      
135.8
      
1
  
Total
  
$
294.7
    
$
296.5
    
$
283.8
    
$
291.4
    
$
271.9
      
8
    
$
875.0
    
$
793.8
      
10
  
Cards-in-force (millions) (I)
                                                                        
U.S.
    
53.0
      
51.9
      
51.3
      
50.0
      
49.5
      
7
      
53.0
      
49.5
      
7
  
Outside the U.S.
    
62.1
      
62.4
      
62.9
      
62.8
      
63.4
      
(2
)
    
62.1
      
63.4
      
(2
)
Total
    
115.1
      
114.3
      
114.2
      
112.8
      
112.9
      
2
      
115.1
      
112.9
      
2
  
Proprietary
    
68.5
      
67.4
      
66.4
      
64.6
      
63.9
      
7
      
68.5
      
63.9
      
7
  
GNS
    
46.6
      
46.9
      
47.8
      
48.2
      
49.0
      
(5
)
    
46.6
      
49.0
      
(5
)
Total
    
115.1
      
114.3
      
114.2
      
112.8
      
112.9
      
2
      
115.1
      
112.9
      
2
  
Basic cards-in-force (millions) (I)
                                                                        
U.S.
    
41.7
      
40.9
      
40.4
      
39.4
      
39.0
      
7
      
41.7
      
39.0
      
7
  
Outside the U.S.
    
51.8
      
52.0
      
52.4
      
52.2
      
52.7
      
(2
)
    
51.8
      
52.7
      
(2
)
Total
    
93.5
      
92.9
      
92.8
      
91.6
      
91.7
      
2
      
93.5
      
91.7
      
2
  
Average proprietary basic Card Member spending (dollars)
                                                                        
U.S.
  
$
5,169
    
$
5,275
    
$
5,015
    
$
5,300
    
$
5,018
      
3
    
$
15,462
    
$
15,009
      
3
  
Outside the U.S.
  
$
3,864
    
$
3,909
    
$
3,869
    
$
3,918
    
$
3,598
      
7
    
$
11,647
    
$
10,351
      
13
  
Average
  
$
4,784
    
$
4,871
    
$
4,677
    
$
4,890
    
$
4,596
      
4
    
$
14,336
    
$
13,620
      
5
  
Card Member loans
                                                                        
U.S.
  
$
68.1
    
$
66.3
    
$
63.9
    
$
64.5
    
$
59.9
      
14
    
$
68.1
    
$
59.9
      
14
  
Outside the U.S.
    
9.5
      
9.1
      
8.9
      
8.9
      
8.0
      
19
      
9.5
      
8.0
      
19
  
Total
  
$
77.6
    
$
75.4
    
$
72.8
    
$
73.4
    
$
67.9
      
14
    
$
77.6
    
$
67.9
      
14
  
 
                                                                        
Average discount rate (J)
    
2.38
%
    
2.37
%
    
2.37
%
    
2.37
%
    
2.40
%
            
2.37
%
    
2.42
%
        
Average fee per card (dollars) (K)
  
$
51
    
$
51
    
$
51
    
$
49
    
$
49
      
4
    
$
51
    
$
49
      
4
  


 
See Appendix III for footnote references


-4-




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

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YOY % change
    
YTD'18
    
YTD'17
    
YOY % change
  
Worldwide Card Member loans
                                                      
Total loans
  
$
77.6
    
$
75.4
    
$
72.8
    
$
73.4
    
$
67.9
      
14
    
$
77.6
    
$
67.9
      
14
  
Loss reserves (millions)
                                                                        
Beginning balance
  
$
1,840
    
$
1,786
    
$
1,706
    
$
1,502
    
$
1,320
      
39
    
$
1,706
    
$
1,223
      
39
  
Provisions - principal, interest and fees
    
560
      
528
      
499
      
596
      
531
      
5
      
1,587
      
1,272
      
25
  
Net write-offs - principal less recoveries
    
(393
)
    
(389
)
    
(358
)
    
(325
)
    
(299
)
    
31
      
(1,140
)
    
(856
)
    
33
  
Net write-offs - interest and fees less recoveries
    
(77
)
    
(77
)
    
(71
)
    
(64
)
    
(57
)
    
35
      
(225
)
    
(163
)
    
38
  
Other (L)
    
7
      
(8
)
    
10
      
(3
)
    
7
      
-
      
9
      
26
      
(65
)
Ending balance
  
$
1,937
    
$
1,840
    
$
1,786
    
$
1,706
    
$
1,502
      
29
    
$
1,937
    
$
1,502
      
29
  
Ending reserves - principal
  
$
1,834
    
$
1,737
    
$
1,691
    
$
1,622
    
$
1,427
      
29
    
$
1,834
    
$
1,427
      
29
  
Ending reserves - interest and fees
  
$
103
    
$
103
    
$
95
    
$
84
    
$
75
      
37
    
$
103
    
$
75
      
37
  
% of loans
    
2.5
%
    
2.4
%
    
2.5
%
    
2.3
%
    
2.2
%
            
2.5
%
    
2.2
%
        
% of past due
    
185
%
    
188
%
    
174
%
    
177
%
    
174
%
            
185
%
    
174
%
        
Average loans
  
$
76.4
    
$
74.1
    
$
72.7
    
$
70.1
    
$
67.1
      
14
    
$
74.5
    
$
65.4
      
14
  
Net write-off rate (principal only) (M)
    
2.1
%
    
2.1
%
    
2.0
%
    
1.8
%
    
1.8
%
            
2.0
%
    
1.7
%
        
Net write-off rate (principal, interest and fees) (M)
    
2.5
%
    
2.5
%
    
2.4
%
    
2.2
%
    
2.1
%
            
2.4
%
    
2.1
%
        
30+ days past due loans as a % of total
    
1.3
%
    
1.3
%
    
1.4
%
    
1.3
%
    
1.3
%
            
1.3
%
    
1.3
%
        
   
Net interest income divided by average Card Member loans (N)
    
10.3
%
    
9.9
%
    
10.1
%
    
9.9
%
    
10.0
%
            
10.1
%
    
9.6
%
        
Net interest yield on average Card Member loans (N)
    
10.8
%
    
10.6
%
    
10.8
%
    
10.5
%
    
10.7
%
            
10.7
%
    
10.4
%
        
   
Worldwide Card Member receivables
                                                                        
Total receivables
  
$
55.5
    
$
55.0
    
$
54.2
    
$
54.0
    
$
51.5
      
8
    
$
55.5
    
$
51.5
      
8
  
Loss reserves (millions)
                                                                        
Beginning balance
  
$
558
    
$
565
    
$
521
    
$
512
    
$
475
      
17
    
$
521
    
$
467
      
12
  
Provisions - principal and fees
    
214
      
245
      
242
      
205
      
214
      
-
      
701
      
590
      
19
  
Net write-offs - principal and fees less recoveries
    
(226
)
    
(236
)
    
(199
)
    
(188
)
    
(175
)
    
29
      
(661
)
    
(548
)
    
21
  
Other (L)
    
(2
)
    
(16
)
    
1
      
(8
)
    
(2
)
    
-
      
(17
)
    
3
      
#
  
Ending balance
  
$
544
    
$
558
    
$
565
    
$
521
    
$
512
      
6
    
$
544
    
$
512
      
6
  
% of receivables
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
    
1.0
%
            
1.0
%
    
1.0
%
        
Net write-off rate, excluding Global Corporate Payments (GCP) (principal only) (M)
    
1.7
%
    
1.8
%
    
1.6
%
    
1.5
%
    
1.5
%
            
1.7
%
    
1.6
%
        
Net write-off rate, excluding GCP (principal and fees) (M)
    
1.9
%
    
2.1
%
    
1.8
%
    
1.6
%
    
1.7
%
            
1.9
%
    
1.8
%
        
30+ days past due as a % of total, excluding GCP
    
1.3
%
    
1.3
%
    
1.5
%
    
1.4
%
    
1.3
%
            
1.3
%
    
1.3
%
        
GCP Net loss ratio (as a % of charge volume) (O)
    
0.12
%
    
0.12
%
    
0.10
%
    
0.11
%
    
0.09
%
            
0.11
%
    
0.10
%
        
GCP 90+ days past billing as a % of total (O)
    
0.8
%
    
0.8
%
    
0.8
%
    
0.9
%
    
0.9
%
            
0.8
%
    
0.9
%
        

# - Denotes a variance of 100 percent or more.



See Appendix III for footnote references

 
-5-



American Express Company
 
Selected Income Statement Information by Segment
 
(Millions)
 
 
 

 
  
Global Consumer Services Group
    
Global Commercial Services
    
Global Merchant and Network Services
    
Corporate and Other
    
Consolidated
  
 
  
(GCSG)
    
(GCS)
    
(GMNS)
              
Q3'18
                              
Non-interest revenues
  
$
3,680
    
$
2,980
    
$
1,494
    
$
29
    
$
8,183
  
Interest income
    
2,140
      
416
      
6
      
176
      
2,738
  
Interest expense
    
404
      
218
      
(78
)
    
233
      
777
  
Total revenues net of interest expense
    
5,416
      
3,178
      
1,578
      
(28
)
    
10,144
  
Total provision
    
609
      
201
      
5
      
2
      
817
  
Total revenues net of interest expense after provisions for losses
    
4,807
      
2,977
      
1,573
      
(30
)
    
9,327
  
Marketing, business development, rewards, Card Member services
    
2,711
      
1,469
      
296
      
23
      
4,499
  
Salaries and employee benefits, and other operating expenses
    
1,118
      
734
      
511
      
347
      
2,710
  
Pretax income (loss)
    
978
      
774
      
766
      
(400
)
    
2,118
  
Income tax provision (benefit)
    
199
      
168
      
186
      
(89
)
    
464
  
Net income (loss)
    
779
      
606
      
580
      
(311
)
    
1,654
  
Q3'17
                                        
Non-interest revenues
  
$
3,361
    
$
2,734
    
$
1,491
    
$
27
    
$
7,613
  
Interest income
    
1,781
      
351
      
8
      
105
      
2,245
  
Interest expense
    
281
      
159
      
(48
)
    
176
      
568
  
Total revenues net of interest expense
    
4,861
      
2,926
      
1,547
      
(44
)
    
9,290
  
Total provision
    
568
      
195
      
9
      
(2
)
    
770
  
Total revenues net of interest expense after provisions for losses
    
4,293
      
2,731
      
1,538
      
(42
)
    
8,520
  
Marketing, business development, rewards, Card Member services
    
2,351
      
1,312
      
292
      
10
      
3,965
  
Salaries and employee benefits, and other operating expenses
    
1,026
      
685
      
685
      
328
      
2,724
  
Pretax income (loss)
    
916
      
734
      
561
      
(380
)
    
1,831
  
Income tax provision (benefit)
    
236
      
229
      
141
      
(134
)
    
472
  
Net income (loss)
    
680
      
505
      
420
      
(246
)
    
1,359
  
YOY % change
                                        
Non-interest revenues
    
9
      
9
      
-
      
7
      
7
  
Interest income
    
20
      
19
      
(25
)
    
68
      
22
  
Interest expense
    
44
      
37
      
63
      
32
      
37
  
Total revenues net of interest expense
    
11
      
9
      
2
      
(36
)
    
9
  
Total provision
    
7
      
3
      
(44
)
    
#
      
6
  
Total revenues net of interest expense after provisions for losses
    
12
      
9
      
2
      
(29
)
    
9
  
Marketing, business development, rewards, Card Member services
    
15
      
12
      
1
      
#
      
13
  
Salaries and employee benefits, and other operating expenses
    
9
      
7
      
(25
)
    
6
      
(1
)
Pretax income (loss)
    
7
      
5
      
37
      
5
      
16
  
Income tax provision (benefit)
    
(16
)
    
(27
)
    
32
      
(34
)
    
(2
)
Net income (loss)
    
15
      
20
      
38
      
26
      
22
  
 
                                        

# - Denotes a variance of 100 percent or more.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
See Appendix III for footnote references


-6-




American Express Company
(Preliminary)
Billed Business Growth Trend
    
 
 
 
 

 
  
YOY % change
  
 
  
Reported
    
FX-Adjusted (P)
    
Reported
    
FX-Adjusted (P)
  
 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YTD'18
    
YTD'18
  
Worldwide
                                                                        
Proprietary consumer
    
11
 
    
13
 
    
15
 
    
11
 
    
9
 
    
12
 
    
12
 
    
12
 
    
10
 
    
8
 
    
13
 
    
12
 
Proprietary commercial
    
11
      
12
      
13
      
11
      
10
      
12
      
12
      
11
      
10
      
9
      
12
      
11
  
Total proprietary
    
11
      
12
      
13
      
11
      
9
      
12
      
12
      
11
      
10
      
9
      
12
      
12
  
GNS
    
(5
)
    
(1
)
    
8
      
9
      
4
      
(1
)
    
(3
)
    
3
      
6
      
4
      
1
      
-
  
Total worldwide
    
8
      
10
      
12
      
11
      
8
      
10
      
9
      
10
      
9
      
8
      
10
      
10
  
Airline-related volume (8% of Q3'18 Total)
    
7
      
8
      
10
      
7
      
5
      
9
      
7
      
6
      
4
      
3
      
8
      
7
  
 
                                                                                                
U.S.
                                                                                                
Proprietary consumer
    
10
      
10
      
11
      
8
      
7
      
n/a
      
n/a
      
n/a
      
n/a
      
n/a
      
11
      
n/a
  
Proprietary commercial
    
10
      
10
      
10
      
9
      
9
      
n/a
      
n/a
      
n/a
      
n/a
      
n/a
      
10
      
n/a
  
Total proprietary
    
10
      
10
      
10
      
8
      
8
      
n/a
      
n/a
      
n/a
      
n/a
      
n/a
      
10
      
n/a
  
GNS
    
13
      
6
      
6
      
-
      
(10
)
    
n/a
      
n/a
      
n/a
      
n/a
      
n/a
      
8
      
n/a
  
Total U.S.
    
10
      
10
      
10
      
8
      
7
      
n/a
      
n/a
      
n/a
      
n/a
      
n/a
      
10
      
n/a
  
T&E-related volume (26% of Q3'18 U.S. Total)
    
9
      
8
      
8
      
6
      
3
      
n/a
      
n/a
      
n/a
      
n/a
      
n/a
      
8
      
n/a
  
Non-T&E-related volume (74% of Q3'18 U.S. Total)
    
10
      
10
      
11
      
9
      
8
      
n/a
      
n/a
      
n/a
      
n/a
      
n/a
      
10
      
n/a
  
Airline-related volume (7% of Q3'18 U.S. Total)
    
11
      
7
      
7
      
5
      
2
      
n/a
      
n/a
      
n/a
      
n/a
      
n/a
      
8
      
n/a
  
 
                                                                                                
Outside the U.S.
                                                                                                
Proprietary consumer
    
14
      
20
      
25
      
20
      
15
      
18
      
18
      
16
      
14
      
13
      
20
      
17
  
Proprietary commercial
    
13
      
19
      
23
      
19
      
14
      
18
      
18
      
14
      
13
      
11
      
18
      
16
  
Total proprietary
    
14
      
19
      
24
      
20
      
14
      
18
      
17
      
15
      
13
      
12
      
19
      
17
  
GNS
    
(6
)
    
(2
)
    
8
      
10
      
5
      
(3
)
    
(3
)
    
3
      
6
      
6
      
-
      
(1
)
Total outside the U.S.
    
5
      
10
      
17
      
15
      
10
      
8
      
8
      
9
      
10
      
9
      
10
      
9
  
Japan, Asia Pacific & Australia billed business
    
5
      
9
      
16
      
15
      
8
      
8
      
7
      
10
      
11
      
9
      
10
      
8
  
Latin America & Canada billed business
    
1
      
5
      
12
      
11
      
10
      
12
      
11
      
11
      
8
      
8
      
6
      
11
  
Europe, Middle East & Africa billed business
    
6
      
14
      
20
      
19
      
13
      
8
      
9
      
7
      
10
      
10
      
13
      
8
  

 
 
See Appendix III for footnote references
-7-



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

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YOY % change
    
YTD'18
    
YTD'17
    
YOY % change
  
Non-interest revenues
  
$
3,680
    
$
3,678
    
$
3,491
    
$
3,535
    
$
3,361
      
9
    
$
10,849
    
$
9,843
      
10
  
Interest income
    
2,140
      
1,994
      
1,949
      
1,848
      
1,781
      
20
      
6,083
      
4,941
      
23
  
Interest expense
    
404
      
370
      
327
      
306
      
281
      
44
      
1,101
      
741
      
49
  
Net interest income
    
1,736
      
1,624
      
1,622
      
1,542
      
1,500
      
16
      
4,982
      
4,200
      
19
  
Total revenues net of interest expense
    
5,416
      
5,302
      
5,113
      
5,077
      
4,861
      
11
      
15,831
      
14,043
      
13
  
Provisions for losses
    
609
      
565
      
530
      
641
      
568
      
7
      
1,704
      
1,355
      
26
  
Total revenues net of interest expense after provisions for losses
    
4,807
      
4,737
      
4,583
      
4,436
      
4,293
      
12
      
14,127
      
12,688
      
11
  
Expenses
                                                                        
Marketing, business development, rewards, Card Member services
    
2,711
      
2,695
      
2,446
      
2,479
      
2,351
      
15
      
7,852
      
6,754
      
16
  
Salaries and employee benefits and other operating expenses
    
1,118
      
1,081
      
1,089
      
1,100
      
1,026
      
9
      
3,288
      
3,146
      
5
  
Total expenses
    
3,829
      
3,776
      
3,535
      
3,579
      
3,377
      
13
      
11,140
      
9,900
      
13
  
Pretax segment income
    
978
      
961
      
1,048
      
857
      
916
      
7
      
2,987
      
2,788
      
7
  
Income tax provision
    
199
      
191
      
222
      
233
      
236
      
(16
)
    
612
      
820
      
(25
)
Segment income
  
$
779
    
$
770
    
$
826
    
$
624
    
$
680
      
15
    
$
2,375
    
$
1,968
      
21
  
Effective tax rate
    
20.3
%
    
19.9
%
    
21.2
%
    
27.2
%
    
25.8
%
            
20.5
%
    
29.4
%
        
   
(Billions, except percentages and where indicated)
                                                                        
Proprietary billed business (H)
                                                                        
U.S.
  
$
92.4
    
$
93.6
    
$
86.0
    
$
91.0
    
$
83.7
      
10
    
$
272.0
    
$
245.9
      
11
  
Outside the U.S.
  
$
34.9
    
$
34.6
    
$
33.3
    
$
33.8
    
$
30.5
      
14
    
$
102.8
    
$
86.0
      
20
  
Total
  
$
127.3
    
$
128.2
    
$
119.3
    
$
124.8
    
$
114.2
      
11
    
$
374.8
    
$
331.9
      
13
  
Proprietary cards-in-force (millions) (I)
                                                                        
U.S.
    
37.4
      
36.7
      
36.1
      
34.9
      
34.4
      
9
      
37.4
      
34.4
      
9
  
Outside the U.S.
    
16.7
      
16.5
      
16.2
      
15.8
      
15.7
      
6
      
16.7
      
15.7
      
6
  
Total
    
54.1
      
53.2
      
52.3
      
50.7
      
50.1
      
8
      
54.1
      
50.1
      
8
  
Proprietary basic cards-in-force (millions) (I)
                                                                        
U.S.
    
26.7
      
26.2
      
25.8
      
25.0
      
24.6
      
9
      
26.7
      
24.6
      
9
  
Outside the U.S.
    
11.5
      
11.4
      
11.2
      
10.9
      
10.8
      
6
      
11.5
      
10.8
      
6
  
Total
    
38.3
      
37.6
      
37.0
      
35.9
      
35.4
      
8
      
38.3
      
35.4
      
8
  
Average proprietary basic Card Member spending (dollars)
                                                                        
U.S
  
$
3,491
    
$
3,594
    
$
3,371
    
$
3,672
    
$
3,433
      
2
    
$
10,460
    
$
10,271
      
2
  
Outside the U.S.
  
$
3,038
    
$
3,057
    
$
3,001
    
$
3,106
    
$
2,840
      
7
    
$
9,101
    
$
8,111
      
12
  
Average
  
$
3,354
    
$
3,431
    
$
3,259
    
$
3,499
    
$
3,251
      
3
    
$
10,048
    
$
9,608
      
5
  
 
                                                                        
Segment assets (Q)
  
$
130.9
    
$
126.8
    
$
120.8
    
$
123.5
    
$
117.8
      
11
    
$
130.9
    
$
117.8
      
11
  
 
                                                                        
Card Member loans
                                                                        
Total loans
                                                                        
U.S.
  
$
56.2
    
$
54.7
    
$
52.7
    
$
53.7
    
$
49.3
      
14
    
$
56.2
    
$
49.3
      
14
  
Outside the U.S.
  
$
9.2
    
$
8.8
    
$
8.6
    
$
8.6
    
$
7.8
      
18
    
$
9.2
    
$
7.8
      
18
  
Total
  
$
65.4
    
$
63.5
    
$
61.3
    
$
62.3
    
$
57.1
      
15
    
$
65.4
    
$
57.1
      
15
  
 
                                                                        
Average loans
                                                                        
U.S.
  
$
55.5
    
$
53.7
    
$
52.9
    
$
51.1
    
$
49.0
      
13
    
$
54.1
    
$
48.1
      
12
  
Outside the U.S.
  
$
8.9
    
$
8.8
    
$
8.7
    
$
8.1
    
$
7.5
      
19
    
$
8.8
    
$
7.2
      
22
  
Total
  
$
64.4
    
$
62.5
    
$
61.6
    
$
59.2
    
$
56.5
      
14
    
$
62.9
    
$
55.3
      
14
  
 
                                                                        
Lending Credit Metrics
                                                                        
U.S.
                                                                        
Net write-off rate (principal only) (M)
    
2.1
%
    
2.2
%
    
2.0
%
    
1.9
%
    
1.8
%
            
2.1
%
    
1.7
%
        
Net write-off rate (principal, interest and fees) (M)
    
2.5
%
    
2.6
%
    
2.4
%
    
2.2
%
    
2.1
%
            
2.5
%
    
2.0
%
        
30+ days past due loans as a % of total
    
1.4
%
    
1.3
%
    
1.4
%
    
1.3
%
    
1.3
%
            
1.4
%
    
1.3
%
        
Outside the U.S.
                                                                        
Net write-off rate (principal only) (M)
    
2.2
%
    
2.1
%
    
2.1
%
    
2.0
%
    
2.2
%
            
2.1
%
    
2.1
%
        
Net write-off rate (principal, interest and fees) (M)
    
2.7
%
    
2.6
%
    
2.6
%
    
2.4
%
    
2.7
%
            
2.6
%
    
2.6
%
        
30+ days past due loans as a % of total
    
1.5
%
    
1.5
%
    
1.6
%
    
1.4
%
    
1.6
%
            
1.5
%
    
1.6
%
        
Total
                                                                        
Net write-off rate (principal only) (M)
    
2.1
%
    
2.2
%
    
2.0
%
    
1.9
%
    
1.8
%
            
2.1
%
    
1.8
%
        
Net write-off rate (principal, interest and fees) (M)
    
2.5
%
    
2.6
%
    
2.4
%
    
2.3
%
    
2.2
%
            
2.5
%
    
2.1
%
        
30+ days past due loans as a % of total
    
1.4
%
    
1.3
%
    
1.4
%
    
1.3
%
    
1.3
%
            
1.4
%
    
1.3
%
        
 
                                                                        
Net interest income divided by average Card Member loans (N)
    
10.8
%
    
10.4
%
    
10.5
%
    
10.4
%
    
10.6
%
            
10.6
%
    
10.1
%
        
Net interest yield on average Card Member loans (N)
                                                                        
U.S.
    
10.9
%
    
10.6
%
    
10.7
%
    
10.5
%
    
10.6
%
            
10.7
%
    
10.2
%
        
Outside the U.S.
    
10.6
%
    
10.5
%
    
11.0
%
    
10.8
%
    
11.6
%
            
10.7
%
    
11.2
%
        
Total
    
10.8
%
    
10.6
%
    
10.8
%
    
10.5
%
    
10.7
%
            
10.7
%
    
10.3
%
        
 
                                                                        
Card Member receivables
                                                                        
U.S.
  
$
11.9
    
$
12.0
    
$
11.7
    
$
13.1
    
$
11.2
      
6
    
$
11.9
    
$
11.2
      
6
  
Outside the U.S.
  
$
7.0
    
$
7.0
    
$
7.0
    
$
7.8
    
$
6.5
      
8
    
$
7.0
    
$
6.5
      
8
  
Total receivables
  
$
18.9
    
$
19.0
    
$
18.7
    
$
20.9
    
$
17.7
      
7
    
$
18.9
    
$
17.7
      
7
  
 
                                                                        
Charge Credit Metrics
                                                                        
U.S.
                                                                        
Net write-off rate (principal only) (M)
    
1.3
%
    
1.4
%
    
1.3
%
    
1.3
%
    
1.2
%
            
1.4
%
    
1.3
%
        
Net write-off rate (principal and fees) (M)
    
1.5
%
    
1.5
%
    
1.5
%
    
1.4
%
    
1.3
%
            
1.5
%
    
1.5
%
        
30+ days past due as a % of total
    
1.2
%
    
1.1
%
    
1.3
%
    
1.1
%
    
1.2
%
            
1.2
%
    
1.2
%
        
Outside the U.S.
                                                                        
Net write-off rate (principal only) (M)
    
2.3
%
    
2.1
%
    
2.0
%
    
1.8
%
    
2.2
%
            
2.2
%
    
2.1
%
        
Net write-off rate (principal and fees) (M)
    
2.5
%
    
2.3
%
    
2.2
%
    
1.9
%
    
2.4
%
            
2.3
%
    
2.2
%
        
30+ days past due as a % of total
    
1.4
%
    
1.4
%
    
1.5
%
    
1.3
%
    
1.4
%
            
1.4
%
    
1.4
%
        
Total
                                                                        
Net write-off rate (principal only) (M)
    
1.7
%
    
1.7
%
    
1.6
%
    
1.5
%
    
1.5
%
            
1.7
%
    
1.6
%
        
Net write-off rate (principal and fees) (M)
    
1.9
%
    
1.8
%
    
1.7
%
    
1.6
%
    
1.7
%
            
1.8
%
    
1.7
%
        
30+ days past due as a % of total
    
1.2
%
    
1.2
%
    
1.4
%
    
1.2
%
    
1.3
%
            
1.2
%
    
1.3
%
        
 
                                                                        


 
See Appendix III for footnote references
 
-8-

 



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

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YOY % change
    
YTD'18
    
YTD'17
    
YOY % change
  
Non-interest revenues
  
$
2,980
    
$
2,977
    
$
2,838
    
$
2,866
    
$
2,734
      
9
    
$
8,795
    
$
8,076
      
9
  
Interest income
    
416
      
393
      
377
      
357
      
351
      
19
      
1,186
      
1,004
      
18
  
Interest expense
    
218
      
204
      
171
      
168
      
159
      
37
      
593
      
427
      
39
  
Net interest income
    
198
      
189
      
206
      
189
      
192
      
3
      
593
      
577
      
3
  
Total revenues net of interest expense
    
3,178
      
3,166
      
3,044
      
3,055
      
2,926
      
9
      
9,388
      
8,653
      
8
  
Provisions for losses
    
201
      
235
      
240
      
187
      
195
      
3
      
676
      
556
      
22
  
Total revenues net of interest expense after provisions for losses
    
2,977
      
2,931
      
2,804
      
2,868
      
2,731
      
9
      
8,712
      
8,097
      
8
  
Expenses (Q)
                                                                        
Marketing, business development, rewards, Card Member services
    
1,469
      
1,482
      
1,374
      
1,362
      
1,312
      
12
      
4,325
      
3,949
      
10
  
Salaries and employee benefits and other operating expenses
    
734
      
734
      
722
      
743
      
685
      
7
      
2,190
      
2,068
      
6
  
Total expenses
    
2,203
      
2,216
      
2,096
      
2,105
      
1,997
      
10
      
6,515
      
6,017
      
8
  
Pretax segment income
    
774
      
715
      
708
      
763
      
734
      
5
      
2,197
      
2,080
      
6
  
Income tax provision
    
168
      
151
      
162
      
221
      
229
      
(27
)
    
481
      
693
      
(31
)
Segment income
  
$
606
    
$
564
    
$
546
    
$
542
    
$
505
      
20
    
$
1,716
    
$
1,387
      
24
  
Effective tax rate
    
21.7
%
    
21.1
%
    
22.9
%
    
29.0
%
    
31.2
%
            
21.9
%
    
33.3
%
        
   
(Billions, except percentages and where indicated)
                                                                        
Proprietary billed business (H)
  
$
121.6
    
$
122.0
    
$
115.7
    
$
116.6
    
$
109.7
      
11
    
$
359.3
    
$
321.5
      
12
  
Proprietary cards-in-force (millions) (I)
    
14.4
      
14.3
      
14.1
      
14.0
      
13.9
      
4
      
14.4
      
13.9
      
4
  
Average Card Member spending (dollars)
  
$
8,469
    
$
8,592
    
$
8,233
    
$
8,356
    
$
7,907
      
7
    
$
25,297
    
$
23,364
      
8
  
 
                                                                        
Segment assets (Q)
  
$
54.0
    
$
52.9
    
$
52.1
    
$
49.1
    
$
49.3
      
10
    
$
54.0
    
$
49.3
      
10
  
Card Member loans
  
$
12.2
    
$
11.9
    
$
11.5
    
$
11.1
    
$
10.7
      
14
    
$
12.2
    
$
10.7
      
14
  
Card Member receivables
  
$
36.6
    
$
36.0
    
$
35.5
    
$
33.1
    
$
33.8
      
8
    
$
36.6
    
$
33.8
      
8
  
   
Card Member loans (R)
                                                                        
Total loans - Global Small Business Services (GSBS)
  
$
12.2
    
$
11.8
    
$
11.4
    
$
11.0
    
$
10.7
      
14
    
$
12.2
    
$
10.7
      
14
  
30+ days past due as a % of total - GSBS
    
1.1
%
    
1.2
%
    
1.3
%
    
1.2
%
    
1.1
%
            
1.1
%
    
1.1
%
        
Average loans - GSBS
  
$
11.9
    
$
11.6
    
$
11.1
    
$
10.9
    
$
10.5
      
13
    
$
11.5
    
$
10.1
      
14
  
Net write-off rate (principal only) - GSBS (M)
    
1.7
%
    
1.8
%
    
1.6
%
    
1.6
%
    
1.6
%
            
1.7
%
    
1.6
%
        
Net write-off rate (principal, interest and fees) - GSBS (M)
    
2.0
%
    
2.1
%
    
1.9
%
    
1.9
%
    
1.9
%
            
2.0
%
    
1.9
%
        
   
Net interest income divided by average Card Member loans (N)
    
6.6
%
    
6.5
%
    
7.4
%
    
6.9
%
    
7.3
%
            
6.8
%
    
7.6
%
        
Net interest yield on average Card Member loans (N)
    
10.5
%
    
10.4
%
    
10.7
%
    
10.5
%
    
10.7
%
            
10.6
%
    
10.9
%
        
 
                                                                        
Card Member receivables
                                                                        
Total receivables - GCP  (O)
  
$
19.7
    
$
19.3
    
$
19.3
    
$
17.0
    
$
17.9
      
10
    
$
19.7
    
$
17.9
      
10
  
90+ days past billing as a % of total - GCP (O)
    
0.8
%
    
0.8
%
    
0.8
%
    
0.9
%
    
0.9
%
            
0.8
%
    
0.9
%
        
Net loss ratio (as a % of charge volume) - GCP
    
0.12
%
    
0.12
%
    
0.10
%
    
0.11
%
    
0.09
%
            
0.11
%
    
0.10
%
        
Total receivables - GSBS
  
$
16.9
    
$
16.7
    
$
16.2
    
$
16.1
    
$
15.9
      
6
    
$
16.9
    
$
15.9
      
6
  
30+ days past due as a % of total - GSBS
    
1.4
%
    
1.4
%
    
1.8
%
    
1.6
%
    
1.4
%
            
1.4
%
    
1.4
%
        
Net write-off rate (principal only) - GSBS (M)
    
1.8
%
    
2.1
%
    
1.7
%
    
1.5
%
    
1.5
%
            
1.8
%
    
1.6
%
        
Net write-off rate (principal and fees) - GSBS (M)
    
2.0
%
    
2.3
%
    
1.9
%
    
1.7
%
    
1.7
%
            
2.1
%
    
1.8
%
        
 
                                                                        


 
See Appendix III for footnote references


-9-




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

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YOY % change
    
YTD'18
    
YTD'17
    
YOY % change
  
Non-interest revenues
  
$
1,494
    
$
1,513
    
$
1,532
    
$
1,554
    
$
1,491
      
-
    
$
4,539
    
$
4,471
      
2
  
Interest income
    
6
      
7
      
9
      
10
      
8
      
(25
)
    
22
      
32
      
(31
)
Interest expense
    
(78
)
    
(68
)
    
(59
)
    
(55
)
    
(48
)
    
63
      
(205
)
    
(133
)
    
54
  
Net interest income
    
84
      
75
      
68
      
65
      
56
      
50
      
227
      
165
      
38
  
Total revenues net of interest expense
    
1,578
      
1,588
      
1,600
      
1,619
      
1,547
      
2
      
4,766
      
4,636
      
3
  
Provisions for losses
    
5
      
6
      
5
      
4
      
9
      
(44
)
    
16
      
12
      
33
  
Total revenues net of interest expense after provisions for losses
    
1,573
      
1,582
      
1,595
      
1,615
      
1,538
      
2
      
4,750
      
4,624
      
3
  
Expenses
                                                                        
Marketing, business development, rewards, Card Member services
    
296
      
312
      
267
      
332
      
292
      
1
      
875
      
895
      
(2
)
Salaries and employee benefits and other operating expenses
    
511
      
526
      
620
      
617
      
685
      
(25
)
    
1,657
      
1,750
      
(5
)
Total expenses
    
807
      
838
      
887
      
949
      
977
      
(17
)
    
2,532
      
2,645
      
(4
)
Pretax segment income
    
766
      
744
      
708
      
666
      
561
      
37
      
2,218
      
1,979
      
12
  
Income tax provision
    
186
      
201
      
192
      
207
      
141
      
32
      
579
      
650
      
(11
)
Segment income
  
$
580
    
$
543
    
$
516
    
$
459
    
$
420
      
38
    
$
1,639
    
$
1,329
      
23
  
Effective tax rate
    
24.3
%
    
27.0
%
    
27.1
%
    
31.1
%
    
25.1
%
            
26.1
%
    
32.8
%
        
   
(Billions)
                                                                        
Segment assets (Q)
  
$
31.9
    
$
31.3
    
$
31.0
    
$
30.6
    
$
27.9
      
14
    
$
31.9
    
$
27.9
      
14
  



 
See Appendix III for footnote references

 
-10-




American Express Company
(Preliminary)
Appendix I
 
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE)
(Millions, except percentages)
 

 
  
For the Twelve Months Ended
  
 
  
Sep 30,
    
Jun 30,
    
Mar 31,
    
Dec 31,
    
Sep 30,
  
 
  
2018
    
2018
    
2018
    
2017
    
2017
  
ROE
                              
Net income
  
$
3,705
    
$
3,410
    
$
3,131
    
$
2,748
    
$
4,763
  
Average shareholders' equity
  
$
20,421
    
$
20,393
    
$
20,536
    
$
20,857
    
$
21,038
  
Return on average equity (D)
    
18.1
%
    
16.7
%
    
15.2
%
    
13.2
%
    
22.6
%
   
Reconciliation of ROCE
                                        
Net income
  
$
3,705
    
$
3,410
    
$
3,131
    
$
2,748
    
$
4,763
  
Preferred shares dividends and related accretion
    
81
      
82
      
81
      
81
      
80
  
Earnings allocated to participating share awards and other
    
40
      
38
      
37
      
21
      
38
  
Net income attributable to common shareholders
  
$
3,584
    
$
3,290
    
$
3,013
    
$
2,646
    
$
4,645
  
   
Average shareholders' equity
  
$
20,421
    
$
20,393
    
$
20,536
    
$
20,857
    
$
21,038
  
Average preferred shares
    
1,584
      
1,584
      
1,584
      
1,584
      
1,584
  
Average common shareholders' equity
  
$
18,837
    
$
18,809
    
$
18,952
    
$
19,273
    
$
19,454
  
Return on average common equity (D)
    
19.0
%
    
17.5
%
    
15.9
%
    
13.7
%
    
23.9
%


 
See Appendix III for footnote references

 
-11-

 


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

 
  
Q3'18
    
Q2'18
    
Q1'18
    
Q4'17
    
Q3'17
    
YTD'18
    
YTD'17
  
Consolidated
                                          
Net interest income
  
$
1,961
    
$
1,829
    
$
1,841
    
$
1,739
    
$
1,677
    
$
5,631
    
$
4,712
  
Exclude:
                                                        
Interest expense not attributable to the Company's Card Member loan portfolio (S)
    
390
      
359
      
302
      
297
      
309
      
1,051
      
852
  
Interest income not attributable to the Company's Card Member loan portfolio (T)
    
(274
)
    
(236
)
    
(213
)
    
(177
)
    
(174
)
    
(723
)
    
(460
)
Adjusted net interest income (U)
  
$
2,077
    
$
1,952
    
$
1,930
    
$
1,859
    
$
1,812
    
$
5,959
    
$
5,104
  
Average Card Member loans (billions)
  
$
76.4
    
$
74.1
    
$
72.7
    
$
70.1
    
$
67.1
    
$
74.5
    
$
65.4
  
Net interest income divided by average Card Member loans (V)
    
10.3
%
    
9.9
%
    
10.1
%
    
9.9
%
    
10.0
%
    
10.1
%
    
9.6
%
Net interest yield on average Card Member loans (W)
    
10.8
%
    
10.6
%
    
10.8
%
    
10.5
%
    
10.7
%
    
10.7
%
    
10.4
%
   
U.S.
                                                        
Net interest income
  
$
1,511
    
$
1,410
    
$
1,403
    
$
1,337
    
$
1,293
    
$
4,324
    
$
3,624
  
Exclude:
                                                        
Interest expense not attributable to the Company's Card Member loan portfolio (S)
    
55
    
$
53
    
$
37
    
$
45
    
$
44
      
145
      
119
  
Interest income not attributable to the Company's Card Member loan portfolio (T)
    
(46
)
    
(42
)
    
(39
)
    
(31
)
    
(29
)
    
(127
)
    
(70
)
Adjusted net interest income (U)
  
$
1,520
    
$
1,421
    
$
1,401
    
$
1,351
    
$
1,308
    
$
4,342
    
$
3,673
  
Average Card Member loans (billions)
  
$
55.5
    
$
53.7
    
$
52.9
    
$
51.1
    
$
49.0
    
$
54.1
    
$
48.1
  
Net interest income divided by average Card Member loans (V)
    
10.9
%
    
10.5
%
    
10.6
%
    
10.5
%
    
10.6
%
    
10.7
%
    
10.0
%
Net interest yield on average Card Member loans (W)
    
10.9
%
    
10.6
%
    
10.7
%
    
10.5
%
    
10.6
%
    
10.7
%
    
10.2
%
   
Outside the U.S.
                                                        
Net interest income
  
$
225
    
$
215
    
$
218
    
$
205
    
$
206
    
$
658
    
$
575
  
Exclude:
                                                        
Interest expense not attributable to the Company's Card Member loan portfolio (S)
    
18
      
16
      
18
      
17
      
16
      
52
      
37
  
Interest income not attributable to the Company's Card Member loan portfolio (T)
    
(3
)
    
(2
)
    
(3
)
    
(1
)
    
(3
)
    
(8
)
    
(6
)
Adjusted net interest income (U)
  
$
240
    
$
229
    
$
233
    
$
221
    
$
219
    
$
702
    
$
606
  
Average Card Member loans (billions)
  
$
8.9
    
$
8.8
    
$
8.6
    
$
8.1
    
$
7.5
    
$
8.8
    
$
7.2
  
Net interest income divided by average Card Member loans (V)
    
10.1
%
    
9.8
%
    
10.1
%
    
10.1
%
    
11.0
%
    
10.0
%
    
10.6
%
Net interest yield on average Card Member loans (W)
    
10.6
%
    
10.5
%
    
11.0
%
    
10.8
%
    
11.6
%
    
10.7
%
    
11.2
%
                                                         
Global Consumer Services Group
                                                        
Net interest income
  
$
1,736
    
$
1,624
    
$
1,622
    
$
1,542
    
$
1,499
    
$
4,982
    
$
4,200
  
Exclude:
                                                        
Interest expense not attributable to the Company's Card Member loan portfolio (S)
    
73
    
$
70
    
$
54
    
$
62
    
$
60
      
197
      
156
  
Interest income not attributable to the Company's Card Member loan portfolio (T)
    
(49
)
    
(45
)
    
(41
)
    
(32
)
    
(32
)
    
(135
)
    
(78
)
Adjusted net interest income (U)
  
$
1,760
    
$
1,649
    
$
1,635
    
$
1,572
    
$
1,527
    
$
5,044
    
$
4,278
  
Average Card Member loans (billions)
  
$
64.4
    
$
62.5
    
$
61.6
    
$
59.2
    
$
56.5
    
$
62.9
    
$
55.3
  
Net interest income divided by average Card Member loans (V)
    
10.8
%
    
10.4
%
    
10.5
%
    
10.4
%
    
10.6
%
    
10.6
%
    
10.1
%
Net interest yield on average Card Member loans (W)
    
10.8
%
    
10.6
%
    
10.8
%
    
10.5
%
    
10.7
%
    
10.7
%
    
10.3
%
   
Global Commercial Services
                                                        
Net interest income
  
$
198
    
$
189
    
$
206
    
$
189
    
$
192
    
$
593
    
$
577
  
Exclude:
                                                        
Interest expense not attributable to the Company's Card Member loan portfolio (S)
    
161
      
152
      
126
      
128
      
122
      
439
      
333
  
Interest income not attributable to the Company's Card Member loan portfolio (T)
    
(42
)
    
(38
)
    
(37
)
    
(30
)
    
(29
)
    
(117
)
    
(84
)
Adjusted net interest income (U)
  
$
317
    
$
303
    
$
295
    
$
287
    
$
285
    
$
915
    
$
826
  
Average Card Member loans (billions)
  
$
12.0
    
$
11.7
    
$
11.2
    
$
10.9
    
$
10.5
    
$
11.6
    
$
10.1
  
Net interest income divided by average Card Member loans (V)
    
6.6
%
    
6.5
%
    
7.4
%
    
6.9
%
    
7.3
%
    
6.8
%
    
7.6
%
Net interest yield on average Card Member loans (W)
    
10.5
%
    
10.4
%
    
10.7
%
    
10.5
%
    
10.7
%
    
10.6
%
    
10.9
%

 
 
See Appendix III for footnote references
 
-12-
 
 
 
Appendix III
(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)
 
Effective January 1, 2018, includes reclassification of certain business development expenses from Other expenses to Marketing and business development that are not directly attributable to the adoption of the new revenue recognition guidance.  Prior periods have been conformed to the current period presentation.
(B)
 
Represents net income (loss), less (i) earnings allocated to participating share awards of $13 million, $12 million,  $13 million, $2 million and $11 million in Q3'18, Q2'18, Q1'18, Q4'17 and Q3'17, respectively; and (ii) dividends on preferred shares of $20 million, $20 million, $21 million, $20 million and $21 million in Q3'18, Q2'18, Q1'18, Q4'17 and Q3'17, respectively.
(C)
 
Within assets, "other" includes the following items as presented in the Company’s Consolidated Balance Sheets: Other receivables, Other loans (including merchant financing loans), Premises and equipment and Other assets; and within liabilities, "other" includes the following items: Travelers Cheques and other prepaid products, Accounts payable and Other liabilities.
(D)
 
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.  Refer to Appendix I for components of return on average equity and return on average common equity.
(E)
 
Effective January 1, 2018, we have exited transitional Basel III reporting and our ratios exclude all transitional provisions.  Current ratios represent preliminary estimates as of the date of Third Quarter 2018 Earnings Release and may be revised in the Company’s 2018 Form 10-Q for period ended September 30, 2018.
(F)
 
Supplementary Leverage Ratio is calculated by dividing Tier 1 capital by total leverage exposure under Basel III.  Leverage exposure, which reflects average total consolidated assets with adjustments for Tier 1 capital deductions, average off-balance sheet derivatives exposures, securities purchased under agreements to resell and credit equivalents of undrawn commitments that are both conditionally and unconditionally cancellable.
(G)
 
Presented for the purpose of calculating the Tier 1 Leverage Ratio.
(H)
 
Billed business represents transaction volumes (including cash advances) on cards and other payment products issued by American Express (proprietary billed business) and cards issued under network partnership agreements with banks and other institutions, including joint ventures (GNS billed business).  In-store spending activity within GNS retail cobrand portfolios, from which we earn no revenue, is not included in billed business.  Billed business is reported as United States or outside the United States based on the location of the issuer. 
(I)
 
Cards-in-force represents the number of cards that are issued and outstanding by American Express (proprietary cards-in-force) and cards issued and outstanding under network partnership agreements with banks and other institutions, including joint ventures (GNS cards-in-force) except for GNS retail cobrand cards that have no out of store spend activity during the prior 12 months.
Basic cards-in-force excludes supplemental cards issued on consumer accounts.
(J)
 
This calculation is generally designed to reflect the average pricing at all merchants accepting American Express cards and represents the percentage of proprietary and GNS billed business retained by the Company from merchants it acquires, or from merchants acquired by third parties on its behalf, net of amounts retained by such third parties.  Effective January 1, 2018, the Company began including billed business 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.
(K)
 
Average fee per card is computed based on proprietary basic net card fees divided by average proprietary basic cards-in-force.
(L)
 
Other includes foreign currency impact on balance sheet re-measurement and translation.
(M)
 
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, as 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.
(N)
 
See Appendix II 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 (refer to Footnotes "V" and "W").
(O)
 
GCP reflects global, large and middle market corporate accounts.  GCP delinquency data for periods other than 90 days past billing is not available due to system constraints.  GCP Net loss ratio — Represents the ratio of GCP charge card write-offs, consisting of principal (resulting from authorized transactions) and fee components, less recoveries, on Card Member receivables expressed as a percentage of gross amounts billed to corporate Card Members.
(P)
 
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 Q3'18 apply to the period(s) against which such results are being compared).  The Company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the Company's performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.
(Q)
 
Includes changes in certain corporate allocations that are not directly attributable to our new segment structure.
(R)
 
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.
(S)
 
Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(T)
 
Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.
(U)
 
Adjusted net interest income is 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.
(V)
 
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.
(W)
 
Net interest yield on average Card Member loans is 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 thus not included in the net interest yield calculation.  The Company believes that  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.
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