AMERICAN EXPRESS CO - FORM 8-K - EX-99.2 - AXP FINANCIALS

Attached files

file	filename
8-K - AXP FORM 8-K DATED APRIL 17, 2013 - AMERICAN EXPRESS CO	form8k17apr.htm
EX-99.3 - AXP EARNINGS SUPPLEMENT - AMERICAN EXPRESS CO	ex99_3supplement17apr.htm
EX-99.1 - AXP PRESS RELEASE DATED APRIL 17, 2013 - AMERICAN EXPRESS CO	ex99_1pressrelease17apr.htm

Exhibit 99.2

All information in the following tables is presented on a basis prepared in accordance with U.S. generally accepted accounting principles (GAAP), unless otherwise indicated. Certain reclassifications of prior period amounts have been made to conform to the current period presentation.

(Preliminary)

American Express Company

Consolidated Statements of Income

(Millions)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Revenues
Non-interest revenues
Discount revenue	$	4,438		$	4,257			4	%
Net card fees		653			610			7
Travel commissions and fees		437			451			(3	)
Other commissions and fees		573			583			(2	)
Other		537			553			(3	)
Total non-interest revenues		6,638			6,454			3
Interest income
Interest on loans		1,683			1,611			4
Interest and dividends on investment securities		53			66			(20	)
Deposits with banks and other		26			30			(13	)
Total interest income		1,762			1,707			3
Interest expense
Deposits		114			129			(12	)
Long-term debt and other		405			445			(9	)
Total interest expense		519			574			(10	)
Net interest income		1,243			1,133			10
Total revenues net of interest expense		7,881			7,587			4
Provisions for losses
Charge card		195			178			10
Cardmember loans		275			212			30
Other		27			22			23
Total provisions for losses		497			412			21
Total revenues net of interest expense after provisions for losses		7,384			7,175			3

Expenses
Marketing and promotion		621			631			(2	)
Cardmember rewards		1,520			1,467			4
Cardmember services		189			194			(3	)
Salaries and employee benefits		1,615			1,635			(1	)
Professional services		716			691			4
Occupancy and equipment		472			438			8
Communications		96			96			-
Other, net		246			250			(2	)
Total		5,475			5,402			1
Pretax income		1,909			1,773			8
Income tax provision		629			517			22
Net income	$	1,280		$	1,256			2
Net income attributable to common shareholders (A)	$	1,269		$	1,242			2
Effective tax rate		32.9	%		29.2	%

(A) Represents net income, less earnings allocated to participating share awards of $11 million and $14 million for the three months ended March 31, 2013 and 2012, respectively.

(Preliminary)

American Express Company

Condensed Consolidated Balance Sheets

(Billions)

	March 31, 2013		December 31, 2012

Assets
Cash & cash equivalents	$	28	$	22
Accounts receivable		46		46
Investment securities		6		6
Loans		61		64
Other assets		16		15
Total assets	$	157	$	153

Liabilities and Shareholders' Equity
Customer deposits	$	41	$	40
Short-term borrowings		3		3
Long-term debt		56		59
Other liabilities		38		32
Total liabilities		138		134

Shareholders' Equity		19		19
Total liabilities and shareholders' equity	$	157	$	153

(Preliminary)

American Express Company

Financial Summary

(Millions)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Total revenues net of interest expense
U.S. Card Services	$	4,082		$	3,884			5	%
International Card Services		1,317			1,299			1
Global Commercial Services		1,163			1,157			1
Global Network & Merchant Services		1,303			1,248			4
		7,865			7,588			4
Corporate & Other		16			(1	)		#

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	7,881		$	7,587			4

Pretax income (loss)
U.S. Card Services	$	1,270		$	1,180			8
International Card Services		193			196			(2	)
Global Commercial Services		283			244			16
Global Network & Merchant Services		582			539			8
		2,328			2,159			8
Corporate & Other		(419	)		(386	)		9

PRETAX INCOME	$	1,909		$	1,773			8

Net income (loss)
U.S. Card Services	$	804		$	752			7
International Card Services		178			197			(10	)
Global Commercial Services		191			177			8
Global Network & Merchant Services		373			357			4
		1,546			1,483			4
Corporate & Other		(266	)		(227	)		17

NET INCOME	$	1,280		$	1,256			2

# - Denotes a variance of more than 100%.

(Preliminary)

American Express Company

Financial Summary (continued)

	Quarters Ended March 31,				Percentage
	2013		2012		Inc/(Dec)
EARNINGS PER COMMON SHARE

BASIC
Net income attributable to common shareholders	$	1.15	$	1.07		7	%

Average common shares outstanding (millions)		1,099		1,160		(5	) %

DILUTED
Net income attributable to common shareholders	$	1.15	$	1.07		7	%

Average common shares outstanding (millions)		1,106		1,166		(5	) %

Cash dividends declared per common share	$	0.20	$	0.20		-	%

Selected Statistical Information

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Return on average equity (A)		23.2	%		27.1	%
Return on average common equity (A)		23.0	%		26.8	%
Return on average tangible common equity (A)		29.3	%		35.0	%
Common shares outstanding (millions)		1,098			1,166			(6	)%
Book value per common share	$	17.56		$	17.08			3	%
Shareholders' equity (billions)	$	19.3		$	19.9			(3	)%

(A) Refer to Appendix I for components of return on average equity, return on average common equity and return on average tangible common equity, a non-GAAP measure.

(Preliminary)

American Express Company

Selected Statistical Information

(Millions, except percentages and where indicated)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)
Card billed business (billions) (A):
United States	$	150.0		$	139.6			7	%
Outside the United States		74.5			71.6			4
Total	$	224.5		$	211.2			6
Total cards-in-force (B):
United States		52.1			50.9			2	%
Outside the United States		51.1			47.8			7
Total		103.2			98.7			5
Basic cards-in-force (B):
United States		40.5			39.6			2	%
Outside the United States		41.1			38.2			8
Total		81.6			77.8			5

Average discount rate (C)		2.52	%		2.53	%
Average basic cardmember spending (dollars) (D)	$	3,905		$	3,772			4	%
Average fee per card (dollars) (D)	$	40		$	38			5	%
Average fee per card adjusted (dollars) (D)	$	44		$	42			5	%

(A) Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements (non-proprietary billed business), and certain insurance fees charged on proprietary cards. In-store spend activity within retail co-brand portfolios in Global Network Services, from which the Company earns no revenue, is not included in non-proprietary billed business. Card billed business is reflected in the United States or outside the United States based on where the cardmember is domiciled.

(B) Total cards-in-force represents the number of cards that are issued and outstanding. Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include additional supplemental cards issued on that account. Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee cardmembers. Non-proprietary cards-in-force includes all cards that are issued and outstanding under network partnership agreements, except for retail co-brand cardmember accounts that have no out-of-store spend activity during the prior 12 month period.

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

(D) Average basic card member spending and average fee per card are computed from proprietary card activities only. Average fee per card is computed based on net card fees, including the amortization of deferred direct acquisition costs divided by average worldwide proprietary cards-in-force. The adjusted average fee per card, which is a non-GAAP measure, is computed in the same manner, but excludes amortization of deferred direct acquisition costs. The amount of amortization excluded was $65 million for both the quarters ended March 31, 2013 and 2012. The Company presents adjusted average fee per card because the Company believes this metric presents a useful indicator of card fees pricing across a range of its proprietary card products.

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)
Worldwide cardmember receivables:
Total receivables	$	43.4		$	41.5			5	%
Loss reserves (millions):
Beginning balance	$	428		$	438			(2	) %
Provisions (A)		154			149			3
Other additions (B)		41			29			41
Net write-offs (C)		(178	)		(182	)		(2	)
Other deductions (D)		(35	)		(10	)		#
Ending balance	$	410		$	424			(3	)
% of receivables		0.9	%		1.0	%
Net write-off rate (principal only) - USCS (E)		2.0	%		2.3	%
Net write-off rate (principal and fees) - USCS (E)		2.2	%		2.5	%
30 days past due as a % of total - USCS		1.9	%		1.9	%
Net loss ratio (as a % of charge volume) - ICS/GCS		0.12	%		0.11	%
90 days past billing as a % of total - ICS/GCS		0.8	%		0.7	%

Worldwide cardmember loans:
Total loans	$	62.3		$	60.1			4	%
Loss reserves (millions):
Beginning balance	$	1,471		$	1,874			(22	)%
Provisions (A)		243			185			31
Other additions (B)		32			27			19
Net write-offs - principal (C)		(304	)		(349	)		(13	)
Net write-offs - interest and fees (C)		(38	)		(44	)		(14	)
Other deductions (D)		(37	)		(13	)		#
Ending balance	$	1,367		$	1,680			(19	)
Ending reserves - principal	$	1,316		$	1,622			(19	)
Ending reserves - interest and fees	$	51		$	58			(12	)
% of loans		2.2	%		2.8	%
% of past due		170	%		201	%
Average loans	$	62.8		$	60.7			3	%
Net write-off rate (principal only) (E)		1.9	%		2.3	%
Net write-off rate (principal, interest and fees) (E)		2.2	%		2.6	%
30 days past due loans as a % of total		1.3	%		1.4	%
Net interest income divided by average loans (F)		8.0	%		7.5	%
Net interest yield on cardmember loans (F)		9.5	%		9.2	%

# - Denotes a variance of more than 100%.

(A) Provisions for principal (resulting from authorized transactions) and fee reserve components.

(B) Provisions for unauthorized transactions.

(D) For cardmember receivables, includes net write-offs resulting from unauthorized transactions of $(40) million and $(33) million for the three months ended March 31, 2013 and 2012, respectively; foreign currency translation adjustments of $(2) million and $3 million for the three months ended March 31, 2013 and 2012, respectively; reclassified cardmember bankruptcy reserves of $18 million for the three months ended March 31, 2012 only (cardmember bankruptcy reserves were classified as other liabilities in periods prior to March 31, 2012); and other items of $7 million and $2 million for the three months ended March 31, 2013 and 2012, respectively. For cardmember loans, includes net write-offs resulting from unauthorized transactions of $(32) million and $(28) million for the three months ended March 31, 2013 and 2012, respectively; foreign currency translation adjustments of $(1) million and $10 million for the three months ended March 31, 2013 and 2012, respectively; reclassified cardmember bankruptcy reserves of $4 million for the three months ended March 31, 2012 only (cardmember bankruptcy reserves were classified as other liabilities in periods prior to March 31, 2012); and other items of $(4) million and $1 million for the three months ended March 31, 2013 and 2012, respectively.

(E) 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.

(F) See Appendix III for calculations of net interest yield on cardmember loans, a non-GAAP measure, and net interest income divided by average loans, a GAAP measure, and the Company's rationale for presenting net interest yield on cardmember loans.

(Preliminary)

American Express Company

Consolidated Statements of Income

(Millions)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Revenues
Non-interest revenues
Discount revenue	$	4,438		$	4,575		$	4,425		$	4,482		$	4,257
Net card fees		653			648			633			615			610
Travel commissions and fees		437			503			465			521			451
Other commissions and fees		573			578			581			575			583
Other		537			644			577			651			553
Total non-interest revenues		6,638			6,948			6,681			6,844			6,454
Interest income
Interest on loans		1,683			1,660			1,658			1,582			1,611
Interest and dividends on investment securities		53			53			60			67			66
Deposits with banks and other		26			24			21			22			30
Total interest income		1,762			1,737			1,739			1,671			1,707
Interest expense
Deposits		114			118			118			115			129
Long-term debt and other		405			426			440			435			445
Total interest expense		519			544			558			550			574
Net interest income		1,243			1,193			1,181			1,121			1,133
Total revenues net of interest expense		7,881			8,141			7,862			7,965			7,587
Provisions for losses
Charge card		195			211			190			163			178
Cardmember loans		275			396			264			277			212
Other		27			31			25			21			22
Total provisions for losses		497			638			479			461			412
Total revenues net of interest expense after provisions for losses		7,384			7,503			7,383			7,504			7,175

Expenses
Marketing and promotion		621			722			764			773			631
Cardmember rewards		1,520			1,857			1,496			1,462			1,467
Cardmember services		189			197			201			180			194
Salaries and employee benefits		1,615			1,910			1,516			1,536			1,635
Professional services		716			871			690			711			691
Occupancy and equipment		472			486			453			446			438
Communications		96			99			93			95			96
Other, net		246			432			300			422			250
Total		5,475			6,574			5,513			5,625			5,402
Pretax income		1,909			929			1,870			1,879			1,773
Income tax provision		629			292			620			540			517
Net income	$	1,280		$	637		$	1,250		$	1,339		$	1,256
Net income attributable to common shareholders (A)	$	1,269		$	630		$	1,236		$	1,325		$	1,242
Effective tax rate		32.9	%		31.4	%		33.2	%		28.7	%		29.2	%

(A) Represents net income, less earnings allocated to participating share awards of $11 million for the quarter ended March 31, 2013, $7 million for the quarter ended December 31, 2012, $14 million for the quarter ended September 30, 2012, $14 million for the quarter ended June 30, 2012, and $14 million for the quarter ended March 31, 2012.

(Preliminary)

American Express Company

Financial Summary

(Millions)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Total revenues net of interest expense
U.S. Card Services	$	4,082		$	4,070		$	4,055		$	4,037		$	3,884
International Card Services		1,317			1,397			1,313			1,297			1,299
Global Commercial Services		1,163			1,215			1,156			1,221			1,157
Global Network & Merchant Services		1,303			1,390			1,310			1,323			1,248
		7,865			8,072			7,834			7,878			7,588
Corporate & Other		16			69			28			87			(1	)

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	7,881		$	8,141		$	7,862		$	7,965		$	7,587

Pretax income (loss)
U.S. Card Services	$	1,270		$	612		$	1,128		$	1,149		$	1,180
International Card Services		193			110			207			146			196
Global Commercial Services		283			142			275			299			244
Global Network & Merchant Services		582			557			561			562			539
		2,328			1,421			2,171			2,156			2,159
Corporate & Other		(419	)		(492	)		(301	)		(277	)		(386	)

PRETAX INCOME	$	1,909		$	929		$	1,870		$	1,879		$	1,773

Net income (loss)
U.S. Card Services	$	804		$	423		$	699		$	718		$	752
International Card Services		178			95			164			178			197
Global Commercial Services		191			65			183			219			177
Global Network & Merchant Services		373			354			360			372			357
		1,546			937			1,406			1,487			1,483
Corporate & Other		(266	)		(300	)		(156	)		(148	)		(227	)

NET INCOME	$	1,280		$	637		$	1,250		$	1,339		$	1,256

(Preliminary)

American Express Company

Financial Summary (continued)

	Quarters Ended
	March 31, 2013		December 31, 2012		September 30, 2012		June 30, 2012		March 31, 2012
EARNINGS PER COMMON SHARE

BASIC
Net income attributable to common shareholders	$	1.15	$	0.57	$	1.10	$	1.16	$	1.07

Average common shares outstanding (millions)		1,099		1,110		1,126		1,145		1,160

DILUTED
Net income attributable to common shareholders	$	1.15	$	0.56	$	1.09	$	1.15	$	1.07

Average common shares outstanding (millions)		1,106		1,116		1,132		1,152		1,166

Cash dividends declared per common share	$	0.20	$	0.20	$	0.20	$	0.20	$	0.20

Selected Statistical Information

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Return on average equity (A)		23.2	%		23.1	%		26.3	%		26.6	%		27.1	%
Return on average common equity (A)		23.0	%		22.8	%		26.0	%		26.3	%		26.8	%
Return on average tangible common equity (A)		29.3	%		29.2	%		33.5	%		34.1	%		35.0	%
Common shares outstanding (millions)		1,098			1,105			1,122			1,139			1,166
Book value per common share	$	17.56		$	17.09		$	17.37		$	16.92		$	17.08
Shareholders' equity (billions)	$	19.3		$	18.9		$	19.5		$	19.3		$	19.9

(A) Refer to Appendix I for components of return on average equity, return on average common equity and return on average tangible common equity, a non-GAAP measure.

(Preliminary)

American Express Company

Selected Statistical Information

(Millions, except percentages and where indicated)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Card billed business (billions) (A):
United States	$	150.0		$	155.5		$	146.9		$	148.7		$	139.6
Outside the United States		74.5			80.0			73.2			72.9			71.6
Total	$	224.5		$	235.5		$	220.1		$	221.6		$	211.2
Total cards-in-force (B):
United States		52.1			52.0			51.8			51.2			50.9
Outside the United States		51.1			50.4			49.6			48.9			47.8
Total		103.2			102.4			101.4			100.1			98.7
Basic cards-in-force (B):
United States		40.5			40.3			40.2			39.8			39.6
Outside the United States		41.1			40.5			39.8			39.2			38.2
Total		81.6			80.8			80.0			79.0			77.8

Average discount rate (C)		2.52	%		2.49	%		2.53	%		2.54	%		2.53	%
Average basic cardmember spending (dollars) (D)	$	3,905		$	4,113		$	3,885		$	3,948		$	3,772
Average fee per card (dollars) (D)	$	40		$	40		$	39		$	39		$	38
Average fee per card adjusted (dollars) (D)	$	44		$	44		$	44		$	43		$	42

(D) Average basic card member spending and average fee per card are computed from proprietary card activities only. Average fee per card is computed based on net card fees, including the amortization of deferred direct acquisition costs divided by average worldwide proprietary cards-in-force. The adjusted average fee per card, which is a non-GAAP measure, is computed in the same manner, but excludes amortization of deferred direct acquisition costs. The amount of amortization excluded for these periods was $65 million for the quarter ended March 31 2013, $63 million for the quarter ended December 31, 2012, $65 million for the quarter ended September 30, 2012, $64 million for the quarter ended June 30, 2012 and $65 million for the quarter ended March 31, 2012. The Company presents adjusted average fee per card because the Company believes this metric presents a useful indicator of card fee pricing across a range of its proprietary card products.

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Worldwide cardmember receivables:
Total receivables	$	43.4		$	42.8		$	42.3		$	41.5		$	41.5
Loss reserves (millions):
Beginning balance	$	428		$	409		$	392		$	424		$	438
Provisions (A)		154			167			151			134			149
Other additions (B)		41			44			39			29			29
Net write-offs (C)		(178	)		(153	)		(141	)		(164	)		(182	)
Other deductions (D)		(35	)		(39	)		(32	)		(31	)		(10	)
Ending balance	$	410		$	428		$	409		$	392		$	424
% of receivables		0.9	%		1.0	%		1.0	%		0.9	%		1.0	%
Net write-off rate (principal only) - USCS (E)		2.0	%		1.8	%		1.6	%		2.0	%		2.3	%
Net write-off rate (principal and fees) - USCS (E)		2.2	%		1.9	%		1.7	%		2.2	%		2.5	%
30 days past due as a % of total - USCS		1.9	%		1.8	%		1.8	%		1.7	%		1.9	%
Net loss ratio (as a % of charge volume) - ICS/GCS		0.12	%		0.09	%		0.10	%		0.10	%		0.11	%
90 days past billing as a % of total - ICS/GCS		0.8	%		0.9	%		0.7	%		0.7	%		0.7	%

Worldwide cardmember loans:
Total loans	$	62.3		$	65.2		$	61.8		$	61.0		$	60.1
Loss reserves (millions):
Beginning balance	$	1,471		$	1,459		$	1,547		$	1,680		$	1,874
Provisions (A)		243			362			231			253			185
Other additions (B)		32			34			33			24			27
Net write-offs - principal (C)		(304	)		(310	)		(292	)		(329	)		(349	)
Net write-offs - interest and fees (C)		(38	)		(36	)		(36	)		(41	)		(44	)
Other deductions (D)		(37	)		(38	)		(24	)		(40	)		(13	)
Ending balance	$	1,367		$	1,471		$	1,459		$	1,547		$	1,680
Ending reserves - principal	$	1,316		$	1,423		$	1,411		$	1,492		$	1,622
Ending reserves - interest and fees	$	51		$	48		$	48		$	55		$	58
% of loans		2.2	%		2.3	%		2.4	%		2.5	%		2.8	%
% of past due		170	%		182	%		182	%		202	%		201	%
Average loans	$	62.8		$	62.9		$	61.4		$	60.6		$	60.7
Net write-off rate (principal only) (E)		1.9	%		2.0	%		1.9	%		2.2	%		2.3	%
Net write-off rate (principal, interest and fees) (E)		2.2	%		2.2	%		2.1	%		2.4	%		2.6	%
30 days past due loans as a % of total		1.3	%		1.2	%		1.3	%		1.3	%		1.4	%
Net interest income divided by average loans (F)		8.0	%		7.5	%		7.7	%		7.4	%		7.5	%
Net interest yield on cardmember loans (F)		9.5	%		9.1	%		9.3	%		9.0	%		9.2	%

(A) Provisions for principal (resulting from authorized transactions) and fee reserve components.

(B) Provisions for unauthorized transactions.

(D) For cardmember receivables, includes net write-offs resulting from unauthorized transactions of $(40) million for the three months ended March 31, 2013, $(41) million for the three months ended December 31, 2012, $(37) million for the three months ended September 30, 2012, $(30) million for the three months ended June 30, 2012 and $(33) million for the three months ended March 31, 2012; foreign currency translation adjustments of $(2) million for the three months ended March 31, 2013, $(2) million for the three months ended December 31, 2012, $6 million for the three months ended September 30, 2012, $(5) million for the three months ended June 30, 2012 and $3 million for the three months ended March 31, 2012; reclassified cardmember bankruptcy reserves of $18 million for the three months ended March 31, 2012 only (cardmember bankruptcy reserves were classified as other liabilities in prior periods); and other items of $7 million for the three months ended March 31, 2013, $4 million for the three months ended December 31, 2012, $(1) million for the three months ended September 30, 2012, $4 million for the three months ended June 30, 2012 and $2 million for the three months ended March 31, 2012. For cardmember loans, includes net write-offs resulting from unauthorized transactions of $(32) million for the three months ended March 31, 2013, $(32) million for the three months ended December 31, 2012, $(31) million for the three months ended September 30, 2012, $(25) million for the three months ended June 30, 2012 and $(28) million for the three months ended March 31, 2012; foreign currency translation adjustments of $(1) million for the three months ended March 31, 2013, $(2) million for the three months ended December 31, 2012, $10 million for the three months ended September 30, 2012, $(11) million for the three months ended June 30, 2012 and $10 million for the three months ended March 31, 2012; reclassified cardmember bankruptcy reserves of $4 million for the three months ended March 31, 2012 only (cardmember bankruptcy reserves were classified as other liabilities in prior periods); and other items of $(4) million for the three months ended March 31, 2013, $(4) million for the three months ended December 31, 2012, $(3) million for the three months ended September 30, 2012, $(4) million for the three months ended June 30, 2012 and $1 million for the three months ended March 31, 2012.

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	2,878		$	2,754			5	%
Interest income		1,386			1,314			5
Interest expense		182			184			(1	)
Net interest income		1,204			1,130			7
Total revenues net of interest expense		4,082			3,884			5
Provisions for losses		338			301			12
Total revenues net of interest expense after provisions for losses		3,744			3,583			4
Expenses
Marketing, promotion, rewards and cardmember services		1,545			1,472			5
Salaries and employee benefits and other operating expenses		929			931			-
Total		2,474			2,403			3
Pretax segment income		1,270			1,180			8
Income tax provision		466			428			9
Segment income	$	804		$	752			7
Effective tax rate		36.7	%		36.3	%

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Card billed business	$	116.7		$	107.7			8	%
Total cards-in-force (millions)		42.5			41.2			3	%
Basic cards-in-force (millions)		31.7			30.6			4	%
Average basic cardmember spending (dollars)	$	3,709		$	3,529			5	%

U.S. Consumer Travel:
Travel sales (millions)	$	1,044		$	1,023			2	%
Travel commissions and fees/sales		6.4	%		7.4	%

Total segment assets	$	97.8		$	90.7			8	%
Segment capital (millions) (A)	$	9,073		$	9,350			(3	) %
Return on average segment capital (B)		29.2	%		33.8	%
Return on average tangible segment capital (B)		30.4	%		35.5	%

Cardmember receivables:
Total receivables	$	20.4		$	19.3			6	%
30 days past due as a % of total		1.9	%		1.9	%
Average receivables	$	20.0		$	19.6			2	%
Net write-off rate (principal only) (C)		2.0	%		2.3	%
Net write-off rate (principal and fees) (C)		2.2	%		2.5	%

Cardmember loans:
Total loans	$	53.6		$	51.4			4	%
30 days past due loans as a % of total		1.2	%		1.3	%
Average loans	$	54.0		$	51.9			4	%
Net write-off rate (principal only) (C)		2.0	%		2.3	%
Net write-off rate (principal, interest and fees) (C)		2.2	%		2.6	%
Net interest income divided by average loans (D)		9.0	%		8.8	%
Net interest yield on cardmember loans (D)		9.4	%		9.1	%

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

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(C) 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.

(D) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure, and net interest income divided by average loans, a GAAP measure, and the Company's rationale for presenting net interest yield on cardmember loans.

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Revenues
Discount revenue, net card fees and other	$	2,878		$	2,903		$	2,887		$	2,925		$	2,754
Interest income		1,386			1,364			1,362			1,302			1,314
Interest expense		182			197			194			190			184
Net interest income		1,204			1,167			1,168			1,112			1,130
Total revenues net of interest expense		4,082			4,070			4,055			4,037			3,884
Provisions for losses		338			477			339			312			301
Total revenues net of interest expense after provisions for losses		3,744			3,593			3,716			3,725			3,583
Expenses
Marketing, promotion, rewards and cardmember services		1,545			1,888			1,626			1,566			1,472
Salaries and employee benefits and other operating expenses		929			1,093			962			1,010			931
Total		2,474			2,981			2,588			2,576			2,403
Pretax segment income		1,270			612			1,128			1,149			1,180
Income tax provision		466			189			429			431			428
Segment income	$	804		$	423		$	699		$	718		$	752
Effective tax rate		36.7	%		30.9	%		38.0	%		37.5	%		36.3	%

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Card billed business	$	116.7		$	123.3		$	115.3		$	116.0		$	107.7
Total cards-in-force (millions)		42.5			42.2			41.8			41.5			41.2
Basic cards-in-force (millions)		31.7			31.3			31.1			30.8			30.6
Average basic cardmember spending (dollars)	$	3,709		$	3,952		$	3,725		$	3,776		$	3,529

U.S. Consumer Travel:
Travel sales	$	1.0		$	0.9		$	1.0		$	1.1		$	1.0
Travel commissions and fees/sales		6.4	%		7.8	%		7.6	%		7.7	%		7.4	%

Total segment assets	$	97.8		$	98.3		$	96.3		$	95.5		$	90.7
Segment capital (A)	$	9.1		$	8.7		$	9.1		$	9.0		$	9.3
Return on average segment capital (B)		29.2	%		28.8	%		32.5	%		33.6	%		33.8	%
Return on average tangible segment capital (B)		30.4	%		30.1	%		34.0	%		35.3	%		35.5	%

Cardmember receivables:
Total receivables	$	20.4		$	21.1		$	19.5		$	19.6		$	19.3
30 days past due as a % of total		1.9	%		1.8	%		1.8	%		1.7	%		1.9	%
Average receivables	$	20.0		$	20.1		$	19.4		$	19.8		$	19.6
Net write-off rate (principal only) (C)		2.0	%		1.8	%		1.6	%		2.0	%		2.3	%
Net write-off rate (principal and fees) (C)		2.2	%		1.9	%		1.7	%		2.2	%		2.5	%

Cardmember loans:
Total loans	$	53.6		$	56.0		$	52.9		$	52.5		$	51.4
30 days past due loans as a % of total		1.2	%		1.2	%		1.3	%		1.2	%		1.3	%
Average loans	$	54.0		$	53.9		$	52.8		$	52.1		$	51.9
Net write-off rate (principal only) (C)		2.0	%		2.0	%		1.9	%		2.2	%		2.3	%
Net write-off rate (principal, interest and fees) (C)		2.2	%		2.2	%		2.1	%		2.4	%		2.6	%
Net interest income divided by average loans (D)		9.0	%		8.6	%		8.8	%		8.6	%		8.8	%
Net interest yield on cardmember loans (D)		9.4	%		9.0	%		9.2	%		9.0	%		9.1	%

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

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(Preliminary)

International Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	1,124		$	1,106			2	%
Interest income		290			293			(1	)
Interest expense		97			100			(3	)
Net interest income		193			193			-
Total revenues net of interest expense		1,317			1,299			1
Provisions for losses		95			54			76
Total revenues net of interest expense after provisions for losses		1,222			1,245			(2	)
Expenses
Marketing, promotion, rewards and cardmember services		452			461			(2	)
Salaries and employee benefits and other operating expenses		577			588			(2	)
Total		1,029			1,049			(2	)
Pretax segment income		193			196			(2	)
Income tax provision/(benefit)		15			(1	)		#
Segment income	$	178		$	197			(10	)
Effective tax rate		7.8	%		-0.5	%

# - Denotes a variance of more than 100%.

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Card billed business	$	31.3		$	30.7			2	%
Total cards-in-force (millions)		15.6			15.4			1	%
Basic cards-in-force (millions)		10.6			10.5			1	%
Average basic cardmember spending (dollars)	$	2,961		$	2,927			1	%

International Consumer Travel:
Travel sales (millions)	$	340		$	345			(1	) %
Travel commissions and fees/sales		6.8	%		7.2	%

Total segment assets	$	31.1		$	30.9			1	%
Segment capital (millions) (A)	$	2,981		$	3,023			(1	) %
Return on average segment capital (B)		20.9	%		24.7	%
Return on average tangible segment capital (B)		40.3	%		50.0	%

Cardmember receivables:
Total receivables	$	7.1		$	6.7			6	%
90 days past billing as a % of total		1.1	%		1.0	%
Net loss ratio (as a % of charge volume)		0.18	%		0.15	%

Cardmember loans:
Total loans	$	8.6		$	8.6			-	%
30 days past due loans as a % of total		1.7	%		1.8	%
Average loans	$	8.8		$	8.8			-	%
Net write-off rate (principal only) (C)		1.8	%		2.1	%
Net write-off rate (principal, interest and fees) (C)		2.3	%		2.7	%
Net interest income divided by average loans (D)		8.9	%		8.8	%
Net interest yield on cardmember loans (D)		10.0	%		9.8	%

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

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(Preliminary)

International Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Revenues
Discount revenue, net card fees and other	$	1,124		$	1,210		$	1,126		$	1,119		$	1,106
Interest income		290			289			289			276			293
Interest expense		97			102			102			98			100
Net interest income		193			187			187			178			193
Total revenues net of interest expense		1,317			1,397			1,313			1,297			1,299
Provisions for losses		95			99			83			94			54
Total revenues net of interest expense after provisions for losses		1,222			1,298			1,230			1,203			1,245
Expenses
Marketing, promotion, rewards and cardmember services		452			525			466			475			461
Salaries and employee benefits and other operating expenses		577			663			557			582			588
Total		1,029			1,188			1,023			1,057			1,049
Pretax segment income		193			110			207			146			196
Income tax provision/(benefit)		15			15			43			(32	)		(1	)
Segment income	$	178		$	95		$	164		$	178		$	197
Effective tax rate		7.8	%		13.6	%		20.8	%		-21.9	%		-0.5	%

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Card billed business	$	31.3		$	34.7		$	31.9		$	31.5		$	30.7
Total cards-in-force (millions)		15.6			15.6			15.5			15.5			15.4
Basic cards-in-force (millions)		10.6			10.6			10.6			10.6			10.5
Average basic cardmember spending (dollars)	$	2,961		$	3,280		$	3,026		$	2,985		$	2,927

International Consumer Travel:
Travel sales	$	0.3		$	0.4		$	0.3		$	0.3		$	0.3
Travel commissions and fees/sales		6.8	%		7.4	%		7.1	%		7.1	%		7.2	%

Total segment assets	$	31.1		$	31.8		$	30.6		$	29.3		$	30.9
Segment capital (A)	$	3.0		$	2.9		$	3.0		$	2.8		$	3.0
Return on average segment capital (B)		20.9	%		21.8	%		23.7	%		25.5	%		24.7	%
Return on average tangible segment capital (B)		40.3	%		43.0	%		46.9	%		51.1	%		50.0	%

Cardmember receivables:
Total receivables	$	7.1		$	7.8		$	7.2		$	6.8		$	6.7
90 days past billing as a % of total		1.1	%		0.9	%		0.9	%		1.0	%		1.0	%
Net loss ratio (as a % of charge volume)		0.18	%		0.16	%		0.17	%		0.16	%		0.15	%

Cardmember loans:
Total loans	$	8.6		$	9.2		$	8.9		$	8.4		$	8.6
30 days past due loans as a % of total		1.7	%		1.5	%		1.6	%		1.7	%		1.8	%
Average loans	$	8.8		$	8.9		$	8.6		$	8.5		$	8.8
Net write-off rate (principal only) (C)		1.8	%		1.8	%		1.6	%		2.0	%		2.1	%
Net write-off rate (principal, interest and fees) (C)		2.3	%		2.3	%		2.2	%		2.6	%		2.7	%
Net interest income divided by average loans (D)		8.9	%		8.3	%		8.7	%		8.4	%		8.8	%
Net interest yield on cardmember loans (D)		10.0	%		9.6	%		9.8	%		9.5	%		9.8	%

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

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(Preliminary)

Global Commercial Services

Selected Income Statement Data

(Millions)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	1,220		$	1,216			-	%
Interest income		3			3			-
Interest expense		60			62			(3	)
Net interest expense		(57	)		(59	)		(3	)
Total revenues net of interest expense		1,163			1,157			1
Provisions for losses		37			35			6
Total revenues net of interest expense after provisions for losses		1,126			1,122			-
Expenses
Marketing, promotion, rewards and cardmember services		150			154			(3	)
Salaries and employee benefits and other operating expenses		693			724			(4	)
Total		843			878			(4	)
Pretax segment income		283			244			16
Income tax provision		92			67			37
Segment income	$	191		$	177			8
Effective tax rate		32.5	%		27.5	%

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Card billed business	$	42.8		$	41.4			3	%
Total cards-in-force (millions)		7.0			7.0			-
Basic cards-in-force (millions)		7.0			7.0			-
Average basic cardmember spending (dollars)	$	6,105		$	5,920			3	%

Global Corporate Travel:
Travel sales (millions)	$	4,653		$	4,845			(4	) %
Travel commissions and fees/sales		7.4	%		7.2	%

Total segment assets	$	20.5		$	21.9			(6	) %
Segment capital (millions) (A)	$	3,636		$	3,800			(4	) %
Return on average segment capital (B)		18.0	%		20.0	%
Return on average tangible segment capital (B)		35.2	%		40.6	%

Cardmember receivables:
Total receivables	$	15.7		$	15.3			3	%
90 days past billing as a % of total		0.7	%		0.6	%
Net loss ratio (as a % of charge volume)		0.08	%		0.08	%

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

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(Preliminary)

Global Commercial Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Revenues
Discount revenue, net card fees and other	$	1,220		$	1,277		$	1,218		$	1,284		$	1,216
Interest income		3			3			3			2			3
Interest expense		60			65			65			65			62
Net interest expense		(57	)		(62	)		(62	)		(63	)		(59	)
Total revenues net of interest expense		1,163			1,215			1,156			1,221			1,157
Provisions for losses		37			33			32			36			35
Total revenues net of interest expense after provisions for losses		1,126			1,182			1,124			1,185			1,122
Expenses
Marketing, promotion, rewards and cardmember services		150			148			139			138			154
Salaries and employee benefits and other operating expenses		693			892			710			748			724
Total		843			1,040			849			886			878
Pretax segment income		283			142			275			299			244
Income tax provision		92			77			92			80			67
Segment income	$	191		$	65		$	183		$	219		$	177
Effective tax rate		32.5	%		54.2	%		33.5	%		26.8	%		27.5	%

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Card billed business	$	42.8		$	41.9		$	40.6		$	42.3		$	41.4
Total cards-in-force (millions)		7.0			7.0			7.0			7.0			7.0
Basic cards-in-force (millions)		7.0			7.0			7.0			7.0			7.0
Average basic cardmember spending (dollars)	$	6,105		$	5,978		$	5,798		$	6,042		$	5,920

Global Corporate Travel:
Travel sales	$	4.7		$	4.6		$	4.4		$	5.1		$	4.8
Travel commissions and fees/sales		7.4	%		8.7	%		8.4	%		8.1	%		7.2	%

Total segment assets	$	20.5		$	18.9		$	20.4		$	20.0		$	21.9
Segment capital (A)	$	3.6		$	3.6		$	3.6		$	3.6		$	3.8
Return on average segment capital (B)		18.0	%		17.6	%		20.9	%		21.1	%		20.0	%
Return on average tangible segment capital (B)		35.2	%		35.1	%		41.9	%		42.3	%		40.6	%

Cardmember receivables:
Total receivables	$	15.7		$	13.7		$	15.4		$	15.0		$	15.3
90 days past billing as a % of total		0.7	%		0.8	%		0.7	%		0.6	%		0.6	%
Net loss ratio (as a % of charge volume)		0.08	%		0.06	%		0.05	%		0.06	%		0.08	%

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

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)
Revenues
Discount revenue, fees and other	$	1,234		$	1,186			4	%
Interest income		7			4			75
Interest expense		(62	)		(58	)		7
Net interest income		69			62			11
Total revenues net of interest expense		1,303			1,248			4
Provisions for losses		20			18			11
Total revenues net of interest expense after provisions for losses		1,283			1,230			4
Expenses
Marketing, promotion, rewards and cardmember services		158			172			(8	)
Salaries and employee benefits and other operating expenses		543			519			5
Total		701			691			1
Pretax segment income		582			539			8
Income tax provision		209			182			15
Segment income	$	373		$	357			4
Effective tax rate		35.9	%		33.8	%

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended March 31,						Percentage
	2013			2012			Inc/(Dec)

Global Card billed business (A)	$	224.5		$	211.2			6	%

Global Network & Merchant Services:
Total segment assets	$	22.0		$	20.1			9	%
Segment capital (millions) (B)	$	2,068		$	2,141			(3	)%
Return on average segment capital (C)		69.1	%		67.1	%
Return on average tangible segment capital (C)		76.4	%		74.9	%

Global Network Services:
Card billed business	$	33.2		$	30.4			9	%
Total cards-in-force (millions)		38.1			35.1			9	%

(A) Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements (non-proprietary billed business), and certain insurance fees charged on proprietary cards. In-store spend activity within retail co-brand portfolios in Global Network Services, from which the Company earns no revenue, is not included in non-proprietary billed business.

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

(C) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Revenues
Discount revenue, fees and other	$	1,234		$	1,322		$	1,238		$	1,259		$	1,186
Interest income		7			7			7			5			4
Interest expense		(62	)		(61	)		(65	)		(59	)		(58	)
Net interest income		69			68			72			64			62
Total revenues net of interest expense		1,303			1,390			1,310			1,323			1,248
Provisions for losses		20			21			18			17			18
Total revenues net of interest expense after provisions for losses		1,283			1,369			1,292			1,306			1,230
Expenses
Marketing, promotion, rewards and cardmember services		158			180			192			200			172
Salaries and employee benefits and other operating expenses		543			632			539			544			519
Total		701			812			731			744			691
Pretax segment income		582			557			561			562			539
Income tax provision		209			203			201			190			182
Segment income	$	373		$	354		$	360		$	372		$	357
Effective tax rate		35.9	%		36.4	%		35.8	%		33.8	%		33.8	%

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Global Card billed business (A)	$	224.5		$	235.5		$	220.1		$	221.6		$	211.2

Global Network & Merchant Services:
Total segment assets	$	22.0		$	16.5		$	21.4		$	19.8		$	20.1
Segment capital (B)	$	2.1		$	2.0		$	2.1		$	2.2		$	2.1
Return on average segment capital (C)		69.1	%		68.6	%		67.6	%		67.4	%		67.1	%
Return on average tangible segment capital (C)		76.4	%		75.9	%		75.0	%		74.9	%		74.9	%

Global Network Services:
Card billed business	$	33.2		$	35.1		$	32.0		$	31.3		$	30.4
Total cards-in-force (millions)		38.1			37.6			37.1			36.1			35.1

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

(C) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(Preliminary)

American Express Company

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

and Return on Average Tangible Common Equity (ROTCE)

Appendix I

(Millions)

	For the Twelve Months Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

ROE

Net income	$	4,506		$	4,482		$	5,037		$	5,022		$	5,014
Average shareholders' equity	$	19,426		$	19,425		$	19,145		$	18,887		$	18,525
Return on average equity (A)		23.2	%		23.1	%		26.3	%		26.6	%		27.1	%

Reconciliation of ROCE and ROTCE

Net income	$	4,506		$	4,482		$	5,037		$	5,022		$	5,014
Earnings allocated to participating share awards and other		46			49			56			57			58
Net income attributable to common shareholders	$	4,460		$	4,433		$	4,981		$	4,965		$	4,956

Average shareholders' equity	$	19,426		$	19,425		$	19,145		$	18,887		$	18,525
Average common shareholders' equity	$	19,426		$	19,425		$	19,145		$	18,887		$	18,525
Average goodwill and other intangibles		4,181			4,232			4,272			4,330			4,380
Average tangible common shareholders' equity	$	15,245		$	15,193		$	14,873		$	14,557		$	14,145
Return on average common equity (A)		23.0	%		22.8	%		26.0	%		26.3	%		26.8	%
Return on average tangible common equity (B)		29.3	%		29.2	%		33.5	%		34.1	%		35.0	%

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

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

(Preliminary)

American Express Company

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

Appendix II

(Millions)

	For the Twelve Months Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

U.S. Card Services
Segment income	$	2,644		$	2,592		$	2,896		$	2,930		$	2,877
Average segment capital	$	9,053		$	8,999		$	8,903		$	8,714		$	8,508
Average goodwill and other intangibles		368			379			391			403			414
Average tangible segment capital	$	8,685		$	8,620		$	8,512		$	8,311		$	8,094
Return on average segment capital (A)		29.2	%		28.8	%		32.5	%		33.6	%		33.8	%
Return on average tangible segment capital (A)		30.4	%		30.1	%		34.0	%		35.3	%		35.5	%

International Card Services
Segment income	$	615		$	634		$	691		$	748		$	731
Average segment capital	$	2,937		$	2,909		$	2,919		$	2,936		$	2,962
Average goodwill and other intangibles		1,412			1,433			1,446			1,472			1,500
Average tangible segment capital	$	1,525		$	1,476		$	1,473		$	1,464		$	1,462
Return on average segment capital (A)		20.9	%		21.8	%		23.7	%		25.5	%		24.7	%
Return on average tangible segment capital (A)		40.3	%		43.0	%		46.9	%		51.1	%		50.0	%

Global Commercial Services
Segment income	$	658		$	644		$	759		$	773		$	731
Average segment capital	$	3,663		$	3,649		$	3,629		$	3,661		$	3,649
Average goodwill and other intangibles		1,796			1,812			1,819			1,833			1,847
Average tangible segment capital	$	1,867		$	1,837		$	1,810		$	1,828		$	1,802
Return on average segment capital (A)		18.0	%		17.6	%		20.9	%		21.1	%		20.0	%
Return on average tangible segment capital (A)		35.2	%		35.1	%		41.9	%		42.3	%		40.6	%

Global Network & Merchant Services
Segment income	$	1,459		$	1,443		$	1,413		$	1,385		$	1,337
Average segment capital	$	2,110		$	2,104		$	2,090		$	2,056		$	1,993
Average goodwill and other intangibles		201			203			205			207			209
Average tangible segment capital	$	1,909		$	1,901		$	1,885		$	1,849		$	1,784
Return on average segment capital (A)		69.1	%		68.6	%		67.6	%		67.4	%		67.1	%
Return on average tangible segment capital (A)		76.4	%		75.9	%		75.0	%		74.9	%		74.9	%

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

(Preliminary)

American Express Company

Net Interest Yield on Cardmember Loans

Appendix III

(Millions)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012

Net interest income	$	1,243		$	1,193		$	1,181		$	1,121		$	1,133

Exclude:
Interest expense not attributable to the Company's cardmember loan portfolio	$	311		$	324		$	338		$	341		$	364

Interest income not attributable to the Company's cardmember loan portfolio	$	(95	)	$	(91	)	$	(97	)	$	(104	)	$	(109	)


Adjusted net interest income (A)	$	1,459		$	1,426		$	1,422		$	1,358		$	1,388

Average loans (billions)	$	62.8		$	62.9		$	61.4		$	60.6		$	60.7

Exclude:
Unamortized deferred card fees, net of direct acquisition costs of cardmember loans, and other (billions)	$	(0.3	)	$	(0.2	)	$	(0.2	)	$	(0.2	)	$	(0.2	)

Adjusted average loans (billions) (B)	$	62.5		$	62.7		$	61.2		$	60.4		$	60.5

Net interest income divided by average loans (C)		8.0	%		7.5	%		7.7	%		7.4	%		7.5	%
Net interest yield on cardmember loans (D)		9.5	%		9.1	%		9.3	%		9.0	%		9.2	%

(A) Adjusted net interest income, a non-GAAP measure, represents net interest income allocated to the Company's cardmember loan portfolio excluding the impact of interest expense and interest income not attributable to the Company's cardmember loan portfolio. The Company believes adjusted net interest income is useful to investors because it is a component of net interest yield on cardmember loans.

(B) Adjusted average loans, a non-GAAP measure, represents average cardmember loans excluding the impact of deferred card fees, net of deferred direct acquisition costs of cardmember loans, and other. The Company believes adjusted average loans is useful to investors because it is a component of net interest yield on cardmember loans.

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

(D) Net interest yield on cardmember loans, a non-GAAP measure, is computed by dividing adjusted net interest income by adjusted average loans, computed on an annualized basis. The calculation of net interest yield on cardmember loans includes interest that is deemed uncollectible. For all presentations of net interest yield on cardmember loans, reserves and net write-offs related to uncollectible interest are recorded through provisions for losses - cardmember loans; therefore, such reserves and net write-offs are not included in the net interest yield calculation. The Company believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company's cardmember loan portfolio.

(Preliminary)

U. S. Card Services and International Card Services

Net Interest Yield on Cardmember Loans

Appendix IV

(Millions)

	Quarters Ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
USCS:
Net interest income	$	1,204		$	1,167		$	1,168		$	1,112		$	1,130

Exclude:
Interest expense not attributable to the Company's cardmember loan portfolio	$	48		$	51		$	51		$	51		$	51

Interest income not attributable to the Company's cardmember loan portfolio	$	(2	)	$	(2	)	$	(3	)	$	(2	)	$	(2	)

Adjusted net interest income (A)	$	1,250		$	1,216		$	1,216		$	1,161		$	1,179

Average loans (billions)	$	54.0		$	53.9		$	52.8		$	52.1		$	51.9

Exclude:
Unamortized deferred card fees, net of direct acquisition costs of cardmember loans (billions)	$	-		$	-		$	-		$	-		$	-

Adjusted average loans (billions) (B)	$	54.0		$	53.9		$	52.8		$	52.1		$	51.9

Net interest income divided by average loans (C)		9.0	%		8.6	%		8.8	%		8.6	%		8.8	%
Net interest yield on cardmember loans (D)		9.4	%		9.0	%		9.2	%		9.0	%		9.1	%

ICS:
Net interest income	$	193		$	187		$	187		$	178		$	193

Exclude:
Interest expense not attributable to the Company's cardmember loan portfolio	$	23		$	27		$	26		$	26		$	25

Interest income not attributable to the Company's cardmember loan portfolio	$	(7	)	$	(3	)	$	(7	)	$	(7	)	$	(9	)

Adjusted net interest income (A)	$	209		$	211		$	206		$	197		$	209

Average loans (billions)	$	8.8		$	8.9		$	8.6		$	8.5		$	8.8

Exclude:
Unamortized deferred card fees, net of direct acquisition costs of cardmember loans, and other (billions)	$	(0.3	)	$	(0.2	)	$	(0.2	)	$	(0.2	)	$	(0.2	)

Adjusted average loans (billions) (B)	$	8.5		$	8.7		$	8.4		$	8.3		$	8.6

Net interest income divided by average loans (C)		8.9	%		8.3	%		8.7	%		8.4	%		8.8	%
Net interest yield on cardmember loans (D)		10.0	%		9.6	%		9.8	%		9.5	%		9.8	%

AMERICAN EXPRESS CO - FORM 8-K - EX-99.2 - AXP FINANCIALS - April 17, 2013

Attached files

AMERICAN EXPRESS CO Reports