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

Attached files

file	filename
8-K - AXP FORM 8-K - AMERICAN EXPRESS CO	form8k.htm
EX-99.1 - EXHIBIT 99.1 PRESS RELEASE - AMERICAN EXPRESS CO	ex99_1.htm
EX-99.3 - EXHIBIT 99.3 EARNINGS SUPPLEMENT - AMERICAN EXPRESS CO	ex99_3.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									Six Months Ended
	June 30,						Percentage			June 30,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)

Revenues
Non-interest revenues
Discount revenue	$	4,729		$	4,482			6	%	$	9,167		$	8,739			5	%
Net card fees		647			615			5			1,300			1,225			6
Travel commissions and fees		495			521			(5	)		932			972			(4	)
Other commissions and fees		605			575			5			1,178			1,158			2
Other		567			651			(13	)		1,104			1,204			(8	)
Total non-interest revenues		7,043			6,844			3			13,681			13,298			3
Interest income
Interest on loans		1,622			1,582			3			3,305			3,193			4
Interest and dividends on investment securities		52			67			(22	)		105			133			(21	)
Deposits with banks and other		20			22			(9	)		46			52			(12	)
Total interest income		1,694			1,671			1			3,456			3,378			2
Interest expense
Deposits		107			115			(7	)		221			244			(9	)
Long-term debt and other		385			435			(11	)		790			880			(10	)
Total interest expense		492			550			(11	)		1,011			1,124			(10	)
Net interest income		1,202			1,121			7			2,445			2,254			8
Total revenues net of interest expense		8,245			7,965			4			16,126			15,552			4
Provisions for losses
Charge card		201			163			23			396			341			16
Cardmember loans		364			277			31			639			489			31
Other		28			21			33			55			43			28
Total provisions for losses		593			461			29			1,090			873			25
Total revenues net of interest expense after provisions for losses		7,652			7,504			2			15,036			14,679			2

Expenses
Marketing and promotion		786			773			2			1,407			1,404			-
Cardmember rewards		1,601			1,462			10			3,121			2,929			7
Cardmember services		193			180			7			382			374			2
Salaries and employee benefits		1,543			1,536			-			3,158			3,171			-
Professional services		763			711			7			1,479			1,402			5
Occupancy and equipment		460			446			3			932			884			5
Communications		92			95			(3	)		188			191			(2	)
Other, net		219			422			(48	)		465			672			(31	)
Total		5,657			5,625			1			11,132			11,027			1
Pretax income		1,995			1,879			6			3,904			3,652			7
Income tax provision		590			540			9			1,219			1,057			15
Net income	$	1,405		$	1,339			5		$	2,685		$	2,595			3
Net income attributable to common shareholders (A)	$	1,392		$	1,325			5		$	2,661		$	2,567			4
Effective tax rate		29.6	%		28.7	%					31.2	%		28.9	%

(A) Represents net income, less earnings allocated to participating share awards of $13 million and $14 million for the three months ended June 30, 2013 and 2012, respectively, and $24 million and $28 million for the six months ended June 30, 2013 and 2012, respectively.

-1-

(Preliminary)

American Express Company

Condensed Consolidated Balance Sheets

(Billions)

	June 30,		December 31,
	2013		2012

Assets
Cash & cash equivalents	$	23	$	22
Accounts receivable		47		46
Investment securities		5		6
Loans		62		64
Other assets		15		15
Total assets	$	152	$	153

Liabilities and Shareholders' Equity
Customer deposits	$	41	$	40
Short-term borrowings		3		3
Long-term debt		53		59
Other liabilities		36		32
Total liabilities		133		134

Shareholders' Equity		19		19
Total liabilities and shareholders' equity	$	152	$	153

-2-

(Preliminary)

American Express Company

Financial Summary

(Millions)

	Quarters Ended									Six Months Ended
	June 30,						Percentage			June 30,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)

Total revenues net of interest expense
U.S. Card Services	$	4,239		$	4,037			5	%	$	8,321		$	7,921			5	%
International Card Services		1,299			1,297			-			2,616			2,596			1
Global Commercial Services		1,231			1,221			1			2,394			2,378			1
Global Network & Merchant Services		1,384			1,323			5			2,687			2,571			5
		8,153			7,878			3			16,018			15,466			4
Corporate & Other		92			87			6			108			86			26

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	8,245		$	7,965			4		$	16,126		$	15,552			4

Pretax income (loss)
U.S. Card Services	$	1,175		$	1,149			2		$	2,445		$	2,329			5
International Card Services		156			146			7			349			342			2
Global Commercial Services		333			299			11			616			543			13
Global Network & Merchant Services		647			562			15			1,229			1,101			12
		2,311			2,156			7			4,639			4,315			8
Corporate & Other		(316	)		(277	)		14			(735	)		(663	)		11

PRETAX INCOME	$	1,995		$	1,879			6		$	3,904		$	3,652			7

Net income (loss)
U.S. Card Services	$	743		$	718			3		$	1,547		$	1,470			5
International Card Services		208			178			17			386			375			3
Global Commercial Services		226			219			3			417			396			5
Global Network & Merchant Services		412			372			11			785			729			8
		1,589			1,487			7			3,135			2,970			6
Corporate & Other		(184	)		(148	)		24			(450	)		(375	)		20

NET INCOME	$	1,405		$	1,339			5		$	2,685		$	2,595			3

-3-

(Preliminary)

American Express Company

Financial Summary (continued)

	Quarters Ended							Six Months Ended
	June 30,				Percentage			June 30,				Percentage
	2013		2012		Inc/(Dec)			2013		2012		Inc/(Dec)
EARNINGS PER COMMON SHARE

BASIC
Net income attributable to common shareholders	$	1.28	$	1.16		10	%	$	2.43	$	2.23		9	%

Average common shares outstanding (millions)		1,090		1,145		(5	)%		1,094		1,151		(5	)%

DILUTED
Net income attributable to common shareholders	$	1.27	$	1.15		10	%	$	2.42	$	2.22		9	%

Average common shares outstanding (millions)		1,097		1,152		(5	)%		1,101		1,158		(5	)%

Cash dividends declared per common share	$	0.23	$	0.20		15	%	$	0.43	$	0.40		8	%

Selected Statistical Information

	Quarters Ended									Six Months Ended
	June 30,						Percentage			June 30,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)

Return on average equity (A)		23.6	%		26.6	%					23.6	%		26.6	%
Return on average common equity (A)		23.4	%		26.3	%					23.4	%		26.3	%
Return on average tangible common equity (A)		29.7	%		34.1	%					29.7	%		34.1	%
Common shares outstanding (millions)		1,084			1,139			(5	) %		1,084			1,139			(5	) %
Book value per common share	$	17.57		$	16.92			4	%	$	17.57		$	16.92			4	%
Shareholders' equity (billions)	$	19.0		$	19.3			(1	) %	$	19.0		$	19.3			(1	) %

(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.

-4-

(Preliminary)

American Express Company

Selected Statistical Information

(Millions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)
Card billed business (billions) (A):
United States	$	159.7		$	148.7			7	%
Outside the United States		78.0			72.9			7
Total	$	237.7		$	221.6			7
Total cards-in-force (B):
United States		52.5			51.2			3	%
Outside the United States		51.8			48.9			6
Total		104.3			100.1			4
Basic cards-in-force (B):
United States		40.7			39.8			2	%
Outside the United States		41.8			39.2			7
Total		82.5			79.0			4

Average discount rate (C)		2.52	%		2.54	%
Average basic cardmember spending (dollars) (D)	$	4,097		$	3,948			4	%
Average fee per card (dollars) (D)	$	40		$	39			3	%
Average fee per card adjusted (dollars) (D)	$	44		$	43			2	%

(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 $66 million and $64 million for the quarters ended June 30, 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.

-5-

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)
Worldwide cardmember receivables:
Total receivables	$	44.1		$	41.5			6	%
Loss reserves (millions):
Beginning balance	$	410		$	424			(3	) %
Provisions (A)		160			134			19
Other additions (B)		41			29			41
Net write-offs (C)		(180	)		(164	)		10
Other deductions (D)		(45	)		(31	)		45
Ending balance	$	386		$	392			(2	)
% of receivables		0.9	%		0.9	%
Net write-off rate (principal only) - USCS (E)		1.9	%		2.0	%
Net write-off rate (principal and fees) - USCS (E)		2.1	%		2.2	%
30 days past due as a % of total - USCS		1.6	%		1.7	%
Net loss ratio (as a % of charge volume) - ICS/GCS		0.13	%		0.10	%
90 days past billing as a % of total - ICS/GCS		0.8	%		0.7	%

Worldwide cardmember loans:
Total loans	$	63.1		$	61.0			3	%
Loss reserves (millions):
Beginning balance	$	1,367		$	1,680			(19	) %
Provisions (A)		334			253			32
Other additions (B)		30			24			25
Net write-offs - principal (C)		(309	)		(329	)		(6	)
Net write-offs - interest and fees (C)		(39	)		(41	)		(5	)
Other deductions (D)		(41	)		(40	)		3
Ending balance	$	1,342		$	1,547			(13	)
Ending reserves - principal	$	1,290		$	1,492			(14	)
Ending reserves - interest and fees	$	52		$	55			(5	)
% of loans		2.1	%		2.5	%
% of past due		188	%		202	%
Average loans	$	62.5		$	60.6			3	%
Net write-off rate (principal only) (E)		2.0	%		2.2	%
Net write-off rate (principal, interest and fees) (E)		2.2	%		2.4	%
30 days past due loans as a % of total		1.1	%		1.3	%
Net interest income divided by average loans (F)		7.7	%		7.4	%
Net interest yield on cardmember loans (F)		9.1	%		9.0	%

(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 $(30) million for the three months ended June 30, 2013 and 2012, respectively; foreign currency translation adjustments of $(4) million and $(5) million for the three months ended June 30, 2013 and 2012, respectively; and other items of $(1) million and $4 million for the three months ended June 30, 2013 and 2012, respectively. For cardmember loans, includes net write-offs resulting from unauthorized transactions of $(30) million and $(25) million for the three months ended June 30, 2013 and 2012, respectively; foreign currency translation adjustments of $(10) million and $(11) million for the three months ended June 30, 2013 and 2012, respectively; and other items of $(1) million and $(4) million for the three months ended June 30, 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.

-6-

(Preliminary)

American Express Company

Consolidated Statements of Income

(Millions)

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

Revenues
Non-interest revenues
Discount revenue	$	4,729		$	4,438		$	4,575		$	4,425		$	4,482
Net card fees		647			653			648			633			615
Travel commissions and fees		495			437			503			465			521
Other commissions and fees		605			573			578			581			575
Other		567			537			644			577			651
Total non-interest revenues		7,043			6,638			6,948			6,681			6,844
Interest income
Interest on loans		1,622			1,683			1,660			1,658			1,582
Interest and dividends on investment securities		52			53			53			60			67
Deposits with banks and other		20			26			24			21			22
Total interest income		1,694			1,762			1,737			1,739			1,671
Interest expense
Deposits		107			114			118			118			115
Long-term debt and other		385			405			426			440			435
Total interest expense		492			519			544			558			550
Net interest income		1,202			1,243			1,193			1,181			1,121
Total revenues net of interest expense		8,245			7,881			8,141			7,862			7,965
Provisions for losses
Charge card		201			195			211			190			163
Cardmember loans		364			275			396			264			277
Other		28			27			31			25			21
Total provisions for losses		593			497			638			479			461
Total revenues net of interest expense after provisions for losses		7,652			7,384			7,503			7,383			7,504

Expenses
Marketing and promotion		786			621			722			764			773
Cardmember rewards		1,601			1,520			1,857			1,496			1,462
Cardmember services		193			189			197			201			180
Salaries and employee benefits		1,543			1,615			1,910			1,516			1,536
Professional services		763			716			871			690			711
Occupancy and equipment		460			472			486			453			446
Communications		92			96			99			93			95
Other, net		219			246			432			300			422
Total		5,657			5,475			6,574			5,513			5,625
Pretax income		1,995			1,909			929			1,870			1,879
Income tax provision		590			629			292			620			540
Net income	$	1,405		$	1,280		$	637		$	1,250		$	1,339
Net income attributable to common shareholders (A)	$	1,392		$	1,269		$	630		$	1,236		$	1,325
Effective tax rate		29.6	%		32.9	%		31.4	%		33.2	%		28.7	%

(A) Represents net income, less earnings allocated to participating share awards of $13 million for the quarter ended June 30, 2013, $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 and $14 million for the quarter ended June 30, 2012.

-7-

(Preliminary)

American Express Company

Financial Summary

(Millions)

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

Total revenues net of interest expense
U.S. Card Services	$	4,239		$	4,082		$	4,070		$	4,055		$	4,037
International Card Services		1,299			1,317			1,397			1,313			1,297
Global Commercial Services		1,231			1,163			1,215			1,156			1,221
Global Network & Merchant Services		1,384			1,303			1,390			1,310			1,323
		8,153			7,865			8,072			7,834			7,878
Corporate & Other		92			16			69			28			87

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	8,245		$	7,881		$	8,141		$	7,862		$	7,965

Pretax income (loss)
U.S. Card Services	$	1,175		$	1,270		$	612		$	1,128		$	1,149
International Card Services		156			193			110			207			146
Global Commercial Services		333			283			142			275			299
Global Network & Merchant Services		647			582			557			561			562
		2,311			2,328			1,421			2,171			2,156
Corporate & Other		(316	)		(419	)		(492	)		(301	)		(277	)

PRETAX INCOME	$	1,995		$	1,909		$	929		$	1,870		$	1,879

Net income (loss)
U.S. Card Services	$	743		$	804		$	423		$	699		$	718
International Card Services		208			178			95			164			178
Global Commercial Services		226			191			65			183			219
Global Network & Merchant Services		412			373			354			360			372
		1,589			1,546			937			1,406			1,487
Corporate & Other		(184	)		(266	)		(300	)		(156	)		(148	)

NET INCOME	$	1,405		$	1,280		$	637		$	1,250		$	1,339

-8-

(Preliminary)

American Express Company

Financial Summary (continued)

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

BASIC
Net income attributable to common shareholders	$	1.28	$	1.15	$	0.57	$	1.10	$	1.16

Average common shares outstanding (millions)		1,090		1,099		1,110		1,126		1,145

DILUTED
Net income attributable to common shareholders	$	1.27	$	1.15	$	0.56	$	1.09	$	1.15

Average common shares outstanding (millions)		1,097		1,106		1,116		1,132		1,152

Cash dividends declared per common share	$	0.23	$	0.20	$	0.20	$	0.20	$	0.20

Selected Statistical Information

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

Return on average equity (A)		23.6	%		23.2	%		23.1	%		26.3	%		26.6	%
Return on average common equity (A)		23.4	%		23.0	%		22.8	%		26.0	%		26.3	%
Return on average tangible common equity (A)		29.7	%		29.3	%		29.2	%		33.5	%		34.1	%
Common shares outstanding (millions)		1,084			1,098			1,105			1,122			1,139
Book value per common share	$	17.57		$	17.56		$	17.09		$	17.37		$	16.92
Shareholders' equity (billions)	$	19.0		$	19.3		$	18.9		$	19.5		$	19.3

(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.

-9-

(Preliminary)

American Express Company

Selected Statistical Information

(Millions, except percentages and where indicated)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012
Card billed business (billions) (A):
United States	$	159.7		$	150.0		$	155.5		$	146.9		$	148.7
Outside the United States		78.0			74.5			80.0			73.2			72.9
Total	$	237.7		$	224.5		$	235.5		$	220.1		$	221.6
Total cards-in-force (B):
United States		52.5			52.1			52.0			51.8			51.2
Outside the United States		51.8			51.1			50.4			49.6			48.9
Total		104.3			103.2			102.4			101.4			100.1
Basic cards-in-force (B):
United States		40.7			40.5			40.3			40.2			39.8
Outside the United States		41.8			41.1			40.5			39.8			39.2
Total		82.5			81.6			80.8			80.0			79.0

Average discount rate (C)		2.52	%		2.52	%		2.49	%		2.53	%		2.54	%
Average basic cardmember spending (dollars) (D)	$	4,097		$	3,905		$	4,113		$	3,885		$	3,948
Average fee per card (dollars) (D)	$	40		$	40		$	40		$	39		$	39
Average fee per card adjusted (dollars) (D)	$	44		$	44		$	44		$	44		$	43

(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 $66 million for the quarter ended June 30, 2013, $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 and $64 million for the quarter ended June 30, 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.

-10-

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

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

Worldwide cardmember receivables:
Total receivables	$	44.1		$	43.4		$	42.8		$	42.3		$	41.5
Loss reserves (millions):
Beginning balance	$	410		$	428		$	409		$	392		$	424
Provisions (A)		160			154			167			151			134
Other additions (B)		41			41			44			39			29
Net write-offs (C)		(180	)		(178	)		(153	)		(141	)		(164	)
Other deductions (D)		(45	)		(35	)		(39	)		(32	)		(31	)
Ending balance	$	386		$	410		$	428		$	409		$	392
% of receivables		0.9	%		0.9	%		1.0	%		1.0	%		0.9	%
Net write-off rate (principal only) - USCS (E)		1.9	%		2.0	%		1.8	%		1.6	%		2.0	%
Net write-off rate (principal and fees) - USCS (E)		2.1	%		2.2	%		1.9	%		1.7	%		2.2	%
30 days past due as a % of total - USCS		1.6	%		1.9	%		1.8	%		1.8	%		1.7	%
Net loss ratio (as a % of charge volume) - ICS/GCS		0.13	%		0.12	%		0.09	%		0.10	%		0.10	%
90 days past billing as a % of total - ICS/GCS		0.8	%		0.8	%		0.9	%		0.7	%		0.7	%

Worldwide cardmember loans:
Total loans	$	63.1		$	62.3		$	65.2		$	61.8		$	61.0
Loss reserves (millions):
Beginning balance	$	1,367		$	1,471		$	1,459		$	1,547		$	1,680
Provisions (A)		334			243			362			231			253
Other additions (B)		30			32			34			33			24
Net write-offs - principal (C)		(309	)		(304	)		(310	)		(292	)		(329	)
Net write-offs - interest and fees (C)		(39	)		(38	)		(36	)		(36	)		(41	)
Other deductions (D)		(41	)		(37	)		(38	)		(24	)		(40	)
Ending balance	$	1,342		$	1,367		$	1,471		$	1,459		$	1,547
Ending reserves - principal	$	1,290		$	1,316		$	1,423		$	1,411		$	1,492
Ending reserves - interest and fees	$	52		$	51		$	48		$	48		$	55
% of loans		2.1	%		2.2	%		2.3	%		2.4	%		2.5	%
% of past due		188	%		170	%		182	%		182	%		202	%
Average loans	$	62.5		$	62.8		$	62.9		$	61.4		$	60.6
Net write-off rate (principal only) (E)		2.0	%		1.9	%		2.0	%		1.9	%		2.2	%
Net write-off rate (principal, interest and fees) (E)		2.2	%		2.2	%		2.2	%		2.1	%		2.4	%
30 days past due loans as a % of total		1.1	%		1.3	%		1.2	%		1.3	%		1.3	%
Net interest income divided by average loans (F)		7.7	%		8.0	%		7.5	%		7.7	%		7.4	%
Net interest yield on cardmember loans (F)		9.1	%		9.5	%		9.1	%		9.3	%		9.0	%

(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 June 30, 2013, $(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 and $(30) million for the three months ended June 30, 2012; foreign currency translation adjustments of $(4) million for the three months ended June 30, 2013, $(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, and $(5) million for the three months ended June 30, 2012; and other items of $(1) million for the three months ended June 30, 2013, $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 and $4 million for the three months ended June 30, 2012. For cardmember loans, includes net write-offs resulting from unauthorized transactions of $(30) million for the three months ended June 30, 2013, $(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, and $(25) million for the three months ended June 30, 2012; foreign currency translation adjustments of $(10) million for the three months ended June 30, 2013, $(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, and $(11) million for the three months ended June 30, 2012; and other items of $(1) million for the three months ended June 30, 2013, $(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.

-11-

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	3,063		$	2,925			5	%
Interest income		1,354			1,302			4
Interest expense		178			190			(6	)
Net interest income		1,176			1,112			6
Total revenues net of interest expense		4,239			4,037			5
Provisions for losses		402			312			29
Total revenues net of interest expense after provisions for losses		3,837			3,725			3
Expenses
Marketing, promotion, rewards and cardmember services		1,735			1,566			11
Salaries and employee benefits and other operating expenses		927			1,010			(8	)
Total		2,662			2,576			3
Pretax segment income		1,175			1,149			2
Income tax provision		432			431			-
Segment income	$	743		$	718			3
Effective tax rate		36.8	%		37.5	%

-12-

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)

Card billed business	$	125.6		$	116.0			8	%
Total cards-in-force (millions)		42.9			41.5			3	%
Basic cards-in-force (millions)		31.9			30.8			4	%
Average basic cardmember spending (dollars)	$	3,954		$	3,776			5	%

U.S. Consumer Travel:
Travel sales (millions)	$	1,158		$	1,123			3	%
Travel commissions and fees/sales		6.7	%		7.7	%

Total segment assets	$	96.5		$	95.5			1	%
Segment capital (millions) (A)	$	8,694		$	9,027			(4	) %
Return on average segment capital (B)		29.9	%		33.6	%
Return on average tangible segment capital (B)		31.2	%		35.3	%

Cardmember receivables:
Total receivables	$	20.9		$	19.6			7	%
30 days past due as a % of total		1.6	%		1.7	%
Average receivables	$	20.5		$	19.8			4	%
Net write-off rate (principal only) (C)		1.9	%		2.0	%
Net write-off rate (principal and fees) (C)		2.1	%		2.2	%

Cardmember loans:
Total loans	$	54.6		$	52.5			4	%
30 days past due loans as a % of total		1.1	%		1.2	%
Average loans	$	54.0		$	52.1			4	%
Net write-off rate (principal only) (C)		2.0	%		2.2	%
Net write-off rate (principal, interest and fees) (C)		2.2	%		2.4	%
Net interest income divided by average loans (D)		8.7	%		8.6	%
Net interest yield on cardmember loans (D)		9.1	%		9.0	%

(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.

-13-

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

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

Revenues
Discount revenue, net card fees and other	$	3,063		$	2,878		$	2,903		$	2,887		$	2,925
Interest income		1,354			1,386			1,364			1,362			1,302
Interest expense		178			182			197			194			190
Net interest income		1,176			1,204			1,167			1,168			1,112
Total revenues net of interest expense		4,239			4,082			4,070			4,055			4,037
Provisions for losses		402			338			477			339			312
Total revenues net of interest expense after provisions for losses		3,837			3,744			3,593			3,716			3,725
Expenses
Marketing, promotion, rewards and cardmember services		1,735			1,545			1,888			1,626			1,566
Salaries and employee benefits and other operating expenses		927			929			1,093			962			1,010
Total		2,662			2,474			2,981			2,588			2,576
Pretax segment income		1,175			1,270			612			1,128			1,149
Income tax provision		432			466			189			429			431
Segment income	$	743		$	804		$	423		$	699		$	718
Effective tax rate		36.8	%		36.7	%		30.9	%		38.0	%		37.5	%

-14-

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	125.6		$	116.7		$	123.3		$	115.3		$	116.0
Total cards-in-force (millions)		42.9			42.5			42.2			41.8			41.5
Basic cards-in-force (millions)		31.9			31.7			31.3			31.1			30.8
Average basic cardmember spending (dollars)	$	3,954		$	3,709		$	3,952		$	3,725		$	3,776

U.S. Consumer Travel:
Travel sales	$	1.2		$	1.0		$	0.9		$	1.0		$	1.1
Travel commissions and fees/sales		6.7	%		6.4	%		7.8	%		7.6	%		7.7	%

Total segment assets	$	96.5		$	97.8		$	98.3		$	96.3		$	95.5
Segment capital (A)	$	8.7		$	9.1		$	8.7		$	9.1		$	9.0
Return on average segment capital (B)		29.9	%		29.2	%		28.8	%		32.5	%		33.6	%
Return on average tangible segment capital (B)		31.2	%		30.4	%		30.1	%		34.0	%		35.3	%

Cardmember receivables:
Total receivables	$	20.9		$	20.4		$	21.1		$	19.5		$	19.6
30 days past due as a % of total		1.6	%		1.9	%		1.8	%		1.8	%		1.7	%
Average receivables	$	20.5		$	20.0		$	20.1		$	19.4		$	19.8
Net write-off rate (principal only) (C)		1.9	%		2.0	%		1.8	%		1.6	%		2.0	%
Net write-off rate (principal and fees) (C)		2.1	%		2.2	%		1.9	%		1.7	%		2.2	%

Cardmember loans:
Total loans	$	54.6		$	53.6		$	56.0		$	52.9		$	52.5
30 days past due loans as a % of total		1.1	%		1.2	%		1.2	%		1.3	%		1.2	%
Average loans	$	54.0		$	54.0		$	53.9		$	52.8		$	52.1
Net write-off rate (principal only) (C)		2.0	%		2.0	%		2.0	%		1.9	%		2.2	%
Net write-off rate (principal, interest and fees) (C)		2.2	%		2.2	%		2.2	%		2.1	%		2.4	%
Net interest income divided by average loans (D)		8.7	%		9.0	%		8.6	%		8.8	%		8.6	%
Net interest yield on cardmember loans (D)		9.1	%		9.4	%		9.0	%		9.2	%		9.0	%

(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.

-15-

(Preliminary)

International Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	1,130		$	1,119			1	%
Interest income		259			276			(6	)
Interest expense		90			98			(8	)
Net interest income		169			178			(5	)
Total revenues net of interest expense		1,299			1,297			-
Provisions for losses		116			94			23
Total revenues net of interest expense after provisions for losses		1,183			1,203			(2	)
Expenses
Marketing, promotion, rewards and cardmember services		478			475			1
Salaries and employee benefits and other operating expenses		549			582			(6	)
Total		1,027			1,057			(3	)
Pretax segment income		156			146			7
Income tax (benefit)/provision		(52	)		(32	)		63
Segment income	$	208		$	178			17
Effective tax rate		-33.3	%		-21.9	%

-16-

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)

Card billed business	$	32.3		$	31.5			3	%
Total cards-in-force (millions)		15.6			15.5			1	%
Basic cards-in-force (millions)		10.6			10.6			-	%
Average basic cardmember spending (dollars)	$	3,058		$	2,985			2	%

International Consumer Travel:
Travel sales (millions)	$	354		$	336			5	%
Travel commissions and fees/sales		6.8	%		7.1	%

Total segment assets	$	29.7		$	29.3			1	%
Segment capital (millions) (A)	$	3,070		$	2,847			8	%
Return on average segment capital (B)		21.9	%		25.5	%
Return on average tangible segment capital (B)		41.7	%		51.1	%

Cardmember receivables:
Total receivables	$	7.2		$	6.8			6	%
90 days past billing as a % of total		1.1	%		1.0	%
Net loss ratio (as a % of charge volume)		0.21	%		0.16	%

Cardmember loans:
Total loans	$	8.4		$	8.4			-	%
30 days past due loans as a % of total		1.6	%		1.7	%
Average loans	$	8.5		$	8.5			-	%
Net write-off rate (principal only) (C)		1.9	%		2.0	%
Net write-off rate (principal, interest and fees) (C)		2.4	%		2.6	%
Net interest income divided by average loans (D)		8.0	%		8.4	%
Net interest yield on cardmember loans (D)		9.2	%		9.5	%

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

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

-17-

(Preliminary)

International Card Services

Selected Income Statement Data

(Millions)

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

Revenues
Discount revenue, net card fees and other	$	1,130		$	1,124		$	1,210		$	1,126		$	1,119
Interest income		259			290			289			289			276
Interest expense		90			97			102			102			98
Net interest income		169			193			187			187			178
Total revenues net of interest expense		1,299			1,317			1,397			1,313			1,297
Provisions for losses		116			95			99			83			94
Total revenues net of interest expense after provisions for losses		1,183			1,222			1,298			1,230			1,203
Expenses
Marketing, promotion, rewards and cardmember services		478			452			525			466			475
Salaries and employee benefits and other operating expenses		549			577			663			557			582
Total		1,027			1,029			1,188			1,023			1,057
Pretax segment income		156			193			110			207			146
Income tax provision/(benefit)		(52	)		15			15			43			(32	)
Segment income	$	208		$	178		$	95		$	164		$	178
Effective tax rate		-33.3	%		7.8	%		13.6	%		20.8	%		-21.9	%

-18-

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	32.3		$	31.3		$	34.7		$	31.9		$	31.5
Total cards-in-force (millions)		15.6			15.6			15.6			15.5			15.5
Basic cards-in-force (millions)		10.6			10.6			10.6			10.6			10.6
Average basic cardmember spending (dollars)	$	3,058		$	2,961		$	3,280		$	3,026		$	2,985

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

Total segment assets	$	29.7		$	31.1		$	31.8		$	30.6		$	29.3
Segment capital (A)	$	3.1		$	3.0		$	2.9		$	3.0		$	2.8
Return on average segment capital (B)		21.9	%		20.9	%		21.8	%		23.7	%		25.5	%
Return on average tangible segment capital (B)		41.7	%		40.3	%		43.0	%		46.9	%		51.1	%

Cardmember receivables:
Total receivables	$	7.2		$	7.1		$	7.8		$	7.2		$	6.8
90 days past billing as a % of total		1.1	%		1.1	%		0.9	%		0.9	%		1.0	%
Net loss ratio (as a % of charge volume)		0.21	%		0.18	%		0.16	%		0.17	%		0.16	%

Cardmember loans:
Total loans	$	8.4		$	8.6		$	9.2		$	8.9		$	8.4
30 days past due loans as a % of total		1.6	%		1.7	%		1.5	%		1.6	%		1.7	%
Average loans	$	8.5		$	8.8		$	8.9		$	8.6		$	8.5
Net write-off rate (principal only) (C)		1.9	%		1.8	%		1.8	%		1.6	%		2.0	%
Net write-off rate (principal, interest and fees) (C)		2.4	%		2.3	%		2.3	%		2.2	%		2.6	%
Net interest income divided by average loans (D)		8.0	%		8.9	%		8.3	%		8.7	%		8.4	%
Net interest yield on cardmember loans (D)		9.2	%		10.0	%		9.6	%		9.8	%		9.5	%

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

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

-19-

(Preliminary)

Global Commercial Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	1,290		$	1,284			-	%
Interest income		3			2			50
Interest expense		62			65			(5	)
Net interest expense		(59	)		(63	)		(6	)
Total revenues net of interest expense		1,231			1,221			1
Provisions for losses		45			36			25
Total revenues net of interest expense after provisions for losses		1,186			1,185			-
Expenses
Marketing, promotion, rewards and cardmember services		144			138			4
Salaries and employee benefits and other operating expenses		709			748			(5	)
Total		853			886			(4	)
Pretax segment income		333			299			11
Income tax provision		107			80			34
Segment income	$	226		$	219			3
Effective tax rate		32.1	%		26.8	%

-20-

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)

Card billed business	$	44.4		$	42.3			5	%
Total cards-in-force (millions)		7.0			7.0			-
Basic cards-in-force (millions)		7.0			7.0			-
Average basic cardmember spending (dollars)	$	6,317		$	6,042			5	%

Global Corporate Travel:
Travel sales (millions)	$	4,954		$	5,072			(2	)%
Travel commissions and fees/sales		7.9	%		8.1	%

Total segment assets	$	20.5		$	20.0			3	%
Segment capital (millions) (A)	$	3,680		$	3,616			2	%
Return on average segment capital (B)		18.3	%		21.1	%
Return on average tangible segment capital (B)		35.9	%		42.3	%

Cardmember receivables:
Total receivables	$	15.9		$	15.0			6	%
90 days past billing as a % of total		0.7	%		0.6	%
Net loss ratio (as a % of charge volume)		0.08	%		0.06	%

(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.

-21-

(Preliminary)

Global Commercial Services

Selected Income Statement Data

(Millions)

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

Revenues
Discount revenue, net card fees and other	$	1,290		$	1,220		$	1,277		$	1,218		$	1,284
Interest income		3			3			3			3			2
Interest expense		62			60			65			65			65
Net interest expense		(59	)		(57	)		(62	)		(62	)		(63	)
Total revenues net of interest expense		1,231			1,163			1,215			1,156			1,221
Provisions for losses		45			37			33			32			36
Total revenues net of interest expense after provisions for losses		1,186			1,126			1,182			1,124			1,185
Expenses
Marketing, promotion, rewards and cardmember services		144			150			148			139			138
Salaries and employee benefits and other operating expenses		709			693			892			710			748
Total		853			843			1,040			849			886
Pretax segment income		333			283			142			275			299
Income tax provision		107			92			77			92			80
Segment income	$	226		$	191		$	65		$	183		$	219
Effective tax rate		32.1	%		32.5	%		54.2	%		33.5	%		26.8	%

-22-

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	44.4		$	42.8		$	41.9		$	40.6		$	42.3
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)	$	6,317		$	6,105		$	5,978		$	5,798		$	6,042

Global Corporate Travel:
Travel sales	$	5.0		$	4.7		$	4.6		$	4.4		$	5.1
Travel commissions and fees/sales		7.9	%		7.4	%		8.7	%		8.4	%		8.1	%

Total segment assets	$	20.5		$	20.5		$	18.9		$	20.4		$	20.0
Segment capital (A)	$	3.7		$	3.6		$	3.6		$	3.6		$	3.6
Return on average segment capital (B)		18.3	%		18.0	%		17.6	%		20.9	%		21.1	%
Return on average tangible segment capital (B)		35.9	%		35.2	%		35.1	%		41.9	%		42.3	%

Cardmember receivables:
Total receivables	$	15.9		$	15.7		$	13.7		$	15.4		$	15.0
90 days past billing as a % of total		0.7	%		0.7	%		0.8	%		0.7	%		0.6	%
Net loss ratio (as a % of charge volume)		0.08	%		0.08	%		0.06	%		0.05	%		0.06	%

(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.

-23-

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)
Revenues
Discount revenue, fees and other	$	1,313		$	1,259			4	%
Interest income		8			5			60
Interest expense		(63	)		(59	)		7
Net interest income		71			64			11
Total revenues net of interest expense		1,384			1,323			5
Provisions for losses		22			17			29
Total revenues net of interest expense after provisions for losses		1,362			1,306			4
Expenses
Marketing, promotion, rewards and cardmember services		188			200			(6	)
Salaries and employee benefits and other operating expenses		527			544			(3	)
Total		715			744			(4	)
Pretax segment income		647			562			15
Income tax provision		235			190			24
Segment income	$	412		$	372			11
Effective tax rate		36.3	%		33.8	%

-24-

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	June 30,						Percentage
	2013			2012			Inc/(Dec)

Global Card billed business (A)	$	237.7		$	221.6			7	%

Global Network & Merchant Services:
Total segment assets	$	22.6		$	19.8			14	%
Segment capital (millions) (B)	$	2,145		$	2,171			(1	)%
Return on average segment capital (C)		71.0	%		67.4	%
Return on average tangible segment capital (C)		78.4	%		74.9	%

Global Network Services:
Card billed business	$	35.8		$	31.3			14	%
Total cards-in-force (millions)		38.8			36.1			7	%

(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.

-25-

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012
Revenues
Discount revenue, fees and other	$	1,313		$	1,234		$	1,322		$	1,238		$	1,259
Interest income		8			7			7			7			5
Interest expense		(63	)		(62	)		(61	)		(65	)		(59	)
Net interest income		71			69			68			72			64
Total revenues net of interest expense		1,384			1,303			1,390			1,310			1,323
Provisions for losses		22			20			21			18			17
Total revenues net of interest expense after provisions for losses		1,362			1,283			1,369			1,292			1,306
Expenses
Marketing, promotion, rewards and cardmember services		188			158			180			192			200
Salaries and employee benefits and other operating expenses		527			543			632			539			544
Total		715			701			812			731			744
Pretax segment income		647			582			557			561			562
Income tax provision		235			209			203			201			190
Segment income	$	412		$	373		$	354		$	360		$	372
Effective tax rate		36.3	%		35.9	%		36.4	%		35.8	%		33.8	%

-26-

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Global Card billed business (A)	$	237.7		$	224.5		$	235.5		$	220.1		$	221.6

Global Network & Merchant Services:
Total segment assets	$	22.6		$	22.0		$	16.5		$	21.4		$	19.8
Segment capital (B)	$	2.1		$	2.1		$	2.0		$	2.1		$	2.2
Return on average segment capital (C)		71.0	%		69.1	%		68.6	%		67.6	%		67.4	%
Return on average tangible segment capital (C)		78.4	%		76.4	%		75.9	%		75.0	%		74.9	%

Global Network Services:
Card billed business	$	35.8		$	33.2		$	35.1		$	32.0		$	31.3
Total cards-in-force (millions)		38.8			38.1			37.6			37.1			36.1

(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.

-27-

(Preliminary)

American Express Company

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

and Return on Average Tangible Common Equity (ROTCE)

Appendix I

(Millions)

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

ROE

Net income	$	4,572		$	4,506		$	4,482		$	5,037		$	5,022
Average shareholders' equity	$	19,372		$	19,426		$	19,425		$	19,145		$	18,887
Return on average equity (A)		23.6	%		23.2	%		23.1	%		26.3	%		26.6	%

Reconciliation of ROCE and ROTCE

Net income	$	4,572		$	4,506		$	4,482		$	5,037		$	5,022
Earnings allocated to participating share awards and other		45			46			49			56			57
Net income attributable to common shareholders	$	4,527		$	4,460		$	4,433		$	4,981		$	4,965

Average shareholders' equity	$	19,372		$	19,426		$	19,425		$	19,145		$	18,887
Average common shareholders' equity	$	19,372		$	19,426		$	19,425		$	19,145		$	18,887
Average goodwill and other intangibles		4,128			4,181			4,232			4,272			4,330
Average tangible common shareholders' equity	$	15,244		$	15,245		$	15,193		$	14,873		$	14,557
Return on average common equity (A)		23.4	%		23.0	%		22.8	%		26.0	%		26.3	%
Return on average tangible common equity (B)		29.7	%		29.3	%		29.2	%		33.5	%		34.1	%

(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.

-28-

(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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012

U.S. Card Services
Segment income	$	2,669		$	2,644		$	2,592		$	2,896		$	2,930
Average segment capital	$	8,921		$	9,053		$	8,999		$	8,903		$	8,714
Average goodwill and other intangibles		357			368			379			391			403
Average tangible segment capital	$	8,564		$	8,685		$	8,620		$	8,512		$	8,311
Return on average segment capital (A)		29.9	%		29.2	%		28.8	%		32.5	%		33.6	%
Return on average tangible segment capital (A)		31.2	%		30.4	%		30.1	%		34.0	%		35.3	%

International Card Services
Segment income	$	645		$	615		$	634		$	691		$	748
Average segment capital	$	2,946		$	2,937		$	2,909		$	2,919		$	2,936
Average goodwill and other intangibles		1,398			1,412			1,433			1,446			1,472
Average tangible segment capital	$	1,548		$	1,525		$	1,476		$	1,473		$	1,464
Return on average segment capital (A)		21.9	%		20.9	%		21.8	%		23.7	%		25.5	%
Return on average tangible segment capital (A)		41.7	%		40.3	%		43.0	%		46.9	%		51.1	%

Global Commercial Services
Segment income	$	665		$	658		$	644		$	759		$	773
Average segment capital	$	3,639		$	3,663		$	3,649		$	3,629		$	3,661
Average goodwill and other intangibles		1,785			1,796			1,812			1,819			1,833
Average tangible segment capital	$	1,854		$	1,867		$	1,837		$	1,810		$	1,828
Return on average segment capital (A)		18.3	%		18.0	%		17.6	%		20.9	%		21.1	%
Return on average tangible segment capital (A)		35.9	%		35.2	%		35.1	%		41.9	%		42.3	%

Global Network & Merchant Services
Segment income	$	1,499		$	1,459		$	1,443		$	1,413		$	1,385
Average segment capital	$	2,111		$	2,110		$	2,104		$	2,090		$	2,056
Average goodwill and other intangibles		199			201			203			205			207
Average tangible segment capital	$	1,912		$	1,909		$	1,901		$	1,885		$	1,849
Return on average segment capital (A)		71.0	%		69.1	%		68.6	%		67.6	%		67.4	%
Return on average tangible segment capital (A)		78.4	%		76.4	%		75.9	%		75.0	%		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.

-29-

(Preliminary)

American Express Company

Net Interest Yield on Cardmember Loans

Appendix III

(Millions)

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

Net interest income	$	1,202		$	1,243		$	1,193		$	1,181		$	1,121

Exclude:
Interest expense not attributable to the Company's cardmember loan portfolio	$	295		$	311		$	324		$	338		$	341

Interest income not attributable to the Company's cardmember loan portfolio	$	(88	)	$	(95	)	$	(91	)	$	(97	)	$	(104	)

Adjusted net interest income (A)	$	1,409		$	1,459		$	1,426		$	1,422		$	1,358

Average loans (billions)	$	62.5		$	62.8		$	62.9		$	61.4		$	60.6

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

Adjusted average loans (billions) (B)	$	62.2		$	62.5		$	62.7		$	61.2		$	60.4

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

(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.

-30-

(Preliminary)

U. S. Card Services and International Card Services

Net Interest Yield on Cardmember Loans

Appendix IV

(Millions)

	Quarters Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2013			2013			2012			2012			2012
USCS:
Net interest income	$	1,176		$	1,204		$	1,167		$	1,168		$	1,112

Exclude:
Interest expense not attributable to the Company's cardmember loan portfolio	$	47		$	48		$	51		$	51		$	51

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

Adjusted net interest income (A)	$	1,221		$	1,250		$	1,216		$	1,216		$	1,161

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

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

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

Net interest income divided by average loans (C)		8.7	%		9.0	%		8.6	%		8.8	%		8.6	%
Net interest yield on cardmember loans (D)		9.1	%		9.4	%		9.0	%		9.2	%		9.0	%

ICS:
Net interest income	$	169		$	193		$	187		$	187		$	178

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

Interest income not attributable to the Company's cardmember loan portfolio	$	(5	)	$	(7	)	$	(3	)	$	(7	)	$	(7	)

Adjusted net interest income (A)	$	190		$	209		$	211		$	206		$	197

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

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

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

Net interest income divided by average loans (C)		8.0	%		8.9	%		8.3	%		8.7	%		8.4	%
Net interest yield on cardmember loans (D)		9.2	%		10.0	%		9.6	%		9.8	%		9.5	%

-31-

AMERICAN EXPRESS CO - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FINANCIALS - July 17, 2013

Attached files

AMERICAN EXPRESS CO Reports