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-99.3 - EXHIBIT 99.3 EARNINGS SUPPLEMENT - AMERICAN EXPRESS CO	ex99_3.htm
EX-99.1 - EXHIBIT 99.1 PRESS RELEASE - AMERICAN EXPRESS CO	ex99_1.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									Years Ended
	December 31,						Percentage			December 31,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)

Revenues
Non-interest revenues
Discount revenue	$	4,869		$	4,575			6	%	$	18,695		$	17,739			5	%
Net card fees		673			648			4			2,631			2,506			5
Travel commissions and fees		491			503			(2	)		1,913			1,940			(1	)
Other commissions and fees		626			578			8			2,414			2,317			4
Other		569			644			(12	)		2,274			2,425			(6	)
Total non-interest revenues		7,228			6,948			4			27,927			26,927			4
Interest income
Interest on loans		1,715			1,660			3			6,718			6,511			3
Interest and dividends on investment securities		48			53			(9	)		201			246			(18	)
Deposits with banks and other		19			24			(21	)		86			97			(11	)
Total interest income		1,782			1,737			3			7,005			6,854			2
Interest expense
Deposits		110			118			(7	)		442			480			(8	)
Long-term debt and other		353			426			(17	)		1,516			1,746			(13	)
Total interest expense		463			544			(15	)		1,958			2,226			(12	)
Net interest income		1,319			1,193			11			5,047			4,628			9
Total revenues net of interest expense		8,547			8,141			5			32,974			31,555			4
Provisions for losses
Charge card		199			211			(6	)		789			742			6
Card Member loans		308			396			(22	)		1,229			1,149			7
Other		21			31			(32	)		92			99			(7	)
Total provisions for losses		528			638			(17	)		2,110			1,990			6
Total revenues net of interest expense after provisions for losses		8,019			7,503			7			30,864			29,565			4

Expenses
Marketing and promotion		809			722			12			3,043			2,890			5
Card Member rewards		1,717			1,857			(8	)		6,457			6,282			3
Card Member services		188			197			(5	)		767			772			(1	)
Salaries and employee benefits		1,489			1,910			(22	)		6,191			6,597			(6	)
Professional services		830			871			(5	)		3,102			2,963			5
Occupancy and equipment		510			486			5			1,904			1,823			4
Communications		97			99			(2	)		379			383			(1	)
Other, net		399			432			(8	)		1,133			1,404			(19	)
Total		6,039			6,574			(8	)		22,976			23,114			(1	)
Pretax income		1,980			929			#			7,888			6,451			22
Income tax provision		672			292			#			2,529			1,969			28
Net income	$	1,308		$	637			#		$	5,359		$	4,482			20
Net income attributable to common shareholders (A)	$	1,297		$	630			#		$	5,312		$	4,433			20
Effective tax rate		33.9	%		31.4	%					32.1	%		30.5	%

# - Denotes a variance of more than 100 percent.

(A) Represents net income, less earnings allocated to participating share awards of $11 million and $7 million for the three months ended December 31, 2013 and 2012, respectively, and $47 million and $49 million for the twelve months ended December 31, 2013 and 2012, respectively.

-1-

(Preliminary)

American Express Company

Condensed Consolidated Balance Sheets

(Billions)

	December 31,		December 31,
	2013		2012

Assets
Cash & cash equivalents	$	19	$	22
Accounts receivable		47		46
Investment securities		5		6
Loans		67		64
Other assets		15		15
Total assets	$	153	$	153

Liabilities and Shareholders' Equity
Customer deposits	$	42	$	40
Short-term borrowings		5		3
Long-term debt		55		59
Other liabilities		32		32
Total liabilities		134		134

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

-2-

(Preliminary)

American Express Company

Financial Summary

(Millions)

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

Total revenues net of interest expense
U.S. Card Services	$	4,388		$	4,070			8	%	$	16,995		$	16,046			6	%
International Card Services		1,429			1,397			2			5,401			5,306			2
Global Commercial Services		1,238			1,215			2			4,853			4,749			2
Global Network & Merchant Services		1,447			1,390			4			5,513			5,271			5
		8,502			8,072			5			32,762			31,372			4
Corporate & Other		45			69			(35	)		212			183			16

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	8,547		$	8,141			5		$	32,974		$	31,555			4

Pretax income (loss)
U.S. Card Services	$	1,292		$	612			#		$	4,994		$	4,069			23
International Card Services		108			110			(2	)		643			659			(2	)
Global Commercial Services		287			142			#			1,244			960			30
Global Network & Merchant Services		632			557			13			2,469			2,219			11
		2,319			1,421			63			9,350			7,907			18
Corporate & Other		(339	)		(492	)		(31	)		(1,462	)		(1,456	)		-

PRETAX INCOME	$	1,980		$	929			#		$	7,888		$	6,451			22

Net income (loss)
U.S. Card Services	$	864		$	423			#		$	3,193		$	2,592			23
International Card Services		103			95			8			631			634			-
Global Commercial Services		182			65			#			860			644			34
Global Network & Merchant Services		399			354			13			1,575			1,443			9
		1,548			937			65			6,259			5,313			18
Corporate & Other		(240	)		(300	)		(20	)		(900	)		(831	)		8

NET INCOME	$	1,308		$	637			#		$	5,359		$	4,482			20

# - Denotes a variance of more than 100 percent.

-3-

(Preliminary)

American Express Company

Financial Summary (continued)

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

BASIC
Net income attributable to common shareholders	$	1.22	$	0.57		#		$	4.91	$	3.91		26	%

Average common shares outstanding (millions)		1,067		1,110		(4	)%		1,082		1,135		(5	)%

DILUTED
Net income attributable to common shareholders	$	1.21	$	0.56		#		$	4.88	$	3.89		25	%

Average common shares outstanding (millions)		1,073		1,116		(4	)%		1,089		1,141		(5	)%

Cash dividends declared per common share	$	0.23	$	0.20		15	%	$	0.89	$	0.80		11	%

Selected Statistical Information

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

Return on average equity (A)		27.8	%		23.1	%					27.8	%		23.1	%
Return on average common equity (A)		27.6	%		22.8	%					27.6	%		22.8	%
Return on average tangible common equity (A)		34.9	%		29.2	%					34.9	%		29.2	%
Common shares outstanding (millions)		1,064			1,105			(4	)%		1,064			1,105			(4	)%
Book value per common share	$	18.32		$	17.09			7	%	$	18.32		$	17.09			7	%
Shareholders' equity (billions)	$	19.5		$	18.9			3	%	$	19.5		$	18.9			3	%

# - Denotes a variance of more than 100 percent.

(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									Years Ended
	December 31,						Percentage			December 31,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)
Card billed business (billions) (A):
United States	$	169.1		$	155.5			9	%	$	637.0		$	590.7			8	%
Outside the United States		84.9			80.0			6			315.4			297.7			6
Total	$	254.0		$	235.5			8		$	952.4		$	888.4			7
Total cards-in-force (B):
United States		53.1			52.0			2	%		53.1			52.0			2	%
Outside the United States		54.1			50.4			7			54.1			50.4			7
Total		107.2			102.4			5			107.2			102.4			5
Basic cards-in-force (B):
United States		41.1			40.3			2	%		41.1			40.3			2	%
Outside the United States		44.0			40.5			9			44.0			40.5			9
Total		85.1			80.8			5			85.1			80.8			5

Average discount rate (C)		2.48	%		2.49	%					2.51	%		2.52	%
Average basic Card Member spending (dollars) (D)	$	4,292		$	4,113			4	%	$	16,334		$	15,720			4	%
Average fee per card (dollars) (D)	$	41		$	40			3		$	40		$	39			3
Average fee per card adjusted (dollars) (D)	$	44		$	44			-		$	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 Card Member 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 Card Members. Non-proprietary cards-in-force includes all cards that are issued and outstanding under network partnership agreements, except for retail co-brand Card Member 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 $64 million and $63 million for the quarters ended December 31, 2013 and 2012, respectively. 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									Years Ended
	December 31,						Percentage			December 31,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)
Worldwide Card Member receivables:
Total receivables	$	44.2		$	42.8			3	%	$	44.2		$	42.8			3	%
Loss reserves (millions):
Beginning balance	$	396		$	409			(3	)%	$	428		$	438			(2	)%
Provisions (A)		175			167			5			647			601			8
Other additions (B)		24			44			(45	)		142			141			1
Net write-offs (C)		(162	)		(153	)		6			(669	)		(640	)		5
Other deductions (D)		(47	)		(39	)		21			(162	)		(112	)		45
Ending balance	$	386		$	428			(10	)	$	386		$	428			(10	)
% of receivables		0.9	%		1.0	%					0.9	%		1.0	%
Net write-off rate (principal only) - USCS (E)		1.5	%		1.8	%					1.7	%		1.9	%
Net write-off rate (principal and fees) - USCS (E)		1.7	%		1.9	%					1.9	%		2.1	%
30 days past due as a % of total - USCS		1.6	%		1.8	%					1.6	%		1.8	%
Net loss ratio (as a % of charge volume) - ICS/GCS		0.12	%		0.09	%					0.12	%		0.10	%
90 days past billing as a % of total - ICS/GCS		1.0	%		0.9	%					1.0	%		0.9	%

Worldwide Card Member loans:
Total loans	$	67.2		$	65.2			3	%	$	67.2		$	65.2			3	%
Loss reserves (millions):
Beginning balance	$	1,281		$	1,459			(12	)%	$	1,471		$	1,874			(22	)%
Provisions (A)		290			362			(20	)		1,114			1,031			8
Other additions (B)		18			34			(47	)		115			118			(3	)
Net write-offs - principal (C)		(253	)		(310	)		(18	)		(1,141	)		(1,280	)		(11	)
Net write-offs - interest and fees (C)		(37	)		(36	)		3			(150	)		(157	)		(4	)
Other deductions (D)		(38	)		(38	)		-			(148	)		(115	)		29
Ending balance	$	1,261		$	1,471			(14	)	$	1,261		$	1,471			(14	)
Ending reserves - principal	$	1,212		$	1,423			(15	)	$	1,212		$	1,423			(15	)
Ending reserves - interest and fees	$	49		$	48			2		$	49		$	48			2
% of loans		1.9	%		2.3	%					1.9	%		2.3	%
% of past due		169	%		182	%					169	%		182	%
Average loans	$	64.4		$	62.9			2	%	$	63.3		$	61.5			3	%
Net write-off rate (principal only) (E)		1.6	%		2.0	%					1.8	%		2.1	%
Net write-off rate (principal, interest and fees) (E)		1.8	%		2.2	%					2.0	%		2.3	%
30 days past due loans as a % of total		1.1	%		1.2	%					1.1	%		1.2	%
Net interest income divided by average loans (F)		8.1	%		7.5	%					8.0	%		7.5	%
Net interest yield on Card Member loans (F)		9.3	%		9.1	%					9.3	%		9.1	%

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

(B) Provisions for unauthorized transactions.

(D) For Card Member receivables, includes net write-offs resulting from unauthorized transactions of $(43) million and $(41) million for the three months ended December 31, 2013 and 2012, respectively; foreign currency translation adjustments of $(1) million and $(2) million for the three months ended December 31, 2013 and 2012, respectively; and other items of $(3) million and $4 million for the three months ended December 31, 2013 and 2012, respectively. For Card Member loans, includes net write-offs resulting from unauthorized transactions of $(34) million and $(32) million for the three months ended December 31, 2013 and 2012, respectively; foreign currency translation adjustments of $(4) million and $(2) million for the three months ended December 31, 2013 and 2012, respectively; and other items of nil and $(4) million for the three months ended December 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 Card Member 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 Card Member loans.

-6-

(Preliminary)

American Express Company

Consolidated Statements of Income

(Millions)

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

Revenues
Non-interest revenues
Discount revenue	$	4,869		$	4,659		$	4,729		$	4,438		$	4,575
Net card fees		673			658			647			653			648
Travel commissions and fees		491			490			495			437			503
Other commissions and fees		626			610			605			573			578
Other		569			601			567			537			644
Total non-interest revenues		7,228			7,018			7,043			6,638			6,948
Interest income
Interest on loans		1,715			1,698			1,622			1,683			1,660
Interest and dividends on investment securities		48			48			52			53			53
Deposits with banks and other		19			21			20			26			24
Total interest income		1,782			1,767			1,694			1,762			1,737
Interest expense
Deposits		110			111			107			114			118
Long-term debt and other		353			373			385			405			426
Total interest expense		463			484			492			519			544
Net interest income		1,319			1,283			1,202			1,243			1,193
Total revenues net of interest expense		8,547			8,301			8,245			7,881			8,141
Provisions for losses
Charge card		199			194			201			195			211
Card Member loans		308			282			364			275			396
Other		21			16			28			27			31
Total provisions for losses		528			492			593			497			638
Total revenues net of interest expense after provisions for losses		8,019			7,809			7,652			7,384			7,503

Expenses
Marketing and promotion		809			827			786			621			722
Card Member rewards		1,717			1,619			1,601			1,520			1,857
Card Member services		188			197			193			189			197
Salaries and employee benefits		1,489			1,544			1,543			1,615			1,910
Professional services		830			793			763			716			871
Occupancy and equipment		510			462			460			472			486
Communications		97			94			92			96			99
Other, net		399			269			219			246			432
Total		6,039			5,805			5,657			5,475			6,574
Pretax income		1,980			2,004			1,995			1,909			929
Income tax provision		672			638			590			629			292
Net income	$	1,308		$	1,366		$	1,405		$	1,280		$	637
Net income attributable to common shareholders (A)	$	1,297		$	1,354		$	1,392		$	1,269		$	630
Effective tax rate		33.9	%		31.8	%		29.6	%		32.9	%		31.4	%

(A) Represents net income, less earnings allocated to participating share awards of $11 million for the quarter ended December 31, 2013, $12 million for the quarter ended September 30, 2013, $13 million for the quarter ended June 30, 2013, $11 million for the quarter ended March 31, 2013 and $7 million for the quarter ended December 31, 2012.

-7-

(Preliminary)

American Express Company

Financial Summary

(Millions)

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

Total revenues net of interest expense
U.S. Card Services	$	4,388		$	4,286		$	4,239		$	4,082		$	4,070
International Card Services		1,429			1,356			1,299			1,317			1,397
Global Commercial Services		1,238			1,221			1,231			1,163			1,215
Global Network & Merchant Services		1,447			1,379			1,384			1,303			1,390
		8,502			8,242			8,153			7,865			8,072
Corporate & Other		45			59			92			16			69

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	8,547		$	8,301		$	8,245		$	7,881		$	8,141

Pretax income (loss)
U.S. Card Services	$	1,292		$	1,257		$	1,175		$	1,270		$	612
International Card Services		108			186			156			193			110
Global Commercial Services		287			341			333			283			142
Global Network & Merchant Services		632			608			647			582			557
		2,319			2,392			2,311			2,328			1,421
Corporate & Other		(339	)		(388	)		(316	)		(419	)		(492	)

PRETAX INCOME	$	1,980		$	2,004		$	1,995		$	1,909		$	929

Net income (loss)
U.S. Card Services	$	864		$	782		$	743		$	804		$	423
International Card Services		103			142			208			178			95
Global Commercial Services		182			261			226			191			65
Global Network & Merchant Services		399			391			412			373			354
		1,548			1,576			1,589			1,546			937
Corporate & Other		(240	)		(210	)		(184	)		(266	)		(300	)

NET INCOME	$	1,308		$	1,366		$	1,405		$	1,280		$	637

-8-

(Preliminary)

American Express Company

Financial Summary (continued)

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

BASIC
Net income attributable to common shareholders	$	1.22	$	1.26	$	1.28	$	1.15	$	0.57

Average common shares outstanding (millions)		1,067		1,074		1,090		1,099		1,110

DILUTED
Net income attributable to common shareholders	$	1.21	$	1.25	$	1.27	$	1.15	$	0.56

Average common shares outstanding (millions)		1,073		1,081		1,097		1,106		1,116

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

Selected Statistical Information

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

Return on average equity (A)		27.8	%		24.3	%		23.6	%		23.2	%		23.1	%
Return on average common equity (A)		27.6	%		24.1	%		23.4	%		23.0	%		22.8	%
Return on average tangible common equity (A)		34.9	%		30.6	%		29.7	%		29.3	%		29.2	%
Common shares outstanding (millions)		1,064			1,071			1,084			1,098			1,105
Book value per common share	$	18.32		$	17.94		$	17.57		$	17.56		$	17.09
Shareholders' equity (billions)	$	19.5		$	19.2		$	19.0		$	19.3		$	18.9

(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.

-9-

(Preliminary)

American Express Company

Selected Statistical Information

(Millions, except percentages and where indicated)

	Quarters Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2013			2013			2013			2013			2012
Card billed business (billions) (A):
United States	$	169.1		$	158.2		$	159.7		$	150.0		$	155.5
Outside the United States		84.9			78.0			78.0			74.5			80.0
Total	$	254.0		$	236.2		$	237.7		$	224.5		$	235.5
Total cards-in-force (B):
United States		53.1			52.8			52.5			52.1			52.0
Outside the United States		54.1			52.6			51.8			51.1			50.4
Total		107.2			105.4			104.3			103.2			102.4
Basic cards-in-force (B):
United States		41.1			40.9			40.7			40.5			40.3
Outside the United States		44.0			42.6			41.8			41.1			40.5
Total		85.1			83.5			82.5			81.6			80.8

Average discount rate (C)		2.48	%		2.52	%		2.52	%		2.52	%		2.49	%
Average basic Card Member spending (dollars) (D)	$	4,292		$	4,037		$	4,097		$	3,905		$	4,113
Average fee per card (dollars) (D)	$	41		$	40		$	40		$	40		$	40
Average fee per card adjusted (dollars) (D)	$	44		$	44		$	44		$	44		$	44

(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 $64 million for the quarter ended December 31, 2013, $67 million for the quarter ended September 30, 2013, $66 million for the quarter ended June 30, 2013, $65 million for the quarter ended March 31, 2013 and $63 million for the quarter ended December 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.

-10-

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

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

Worldwide Card Member receivables:
Total receivables	$	44.2		$	43.5		$	44.1		$	43.4		$	42.8
Loss reserves (millions):
Beginning balance	$	396		$	386		$	410		$	428		$	409
Provisions (A)		175			158			160			154			167
Other additions (B)		24			36			41			41			44
Net write-offs (C)		(162	)		(149	)		(180	)		(178	)		(153	)
Other deductions (D)		(47	)		(35	)		(45	)		(35	)		(39	)
Ending balance	$	386		$	396		$	386		$	410		$	428
% of receivables		0.9	%		0.9	%		0.9	%		0.9	%		1.0	%
Net write-off rate (principal only) - USCS (E)		1.5	%		1.4	%		1.9	%		2.0	%		1.8	%
Net write-off rate (principal and fees) - USCS (E)		1.7	%		1.6	%		2.1	%		2.2	%		1.9	%
30 days past due as a % of total - USCS		1.6	%		1.7	%		1.6	%		1.9	%		1.8	%
Net loss ratio (as a % of charge volume) - ICS/GCS		0.12	%		0.11	%		0.13	%		0.12	%		0.09	%
90 days past billing as a % of total - ICS/GCS		1.0	%		0.9	%		0.8	%		0.8	%		0.9	%

Worldwide Card Member loans:
Total loans	$	67.2		$	63.0		$	63.1		$	62.3		$	65.2
Loss reserves (millions):
Beginning balance	$	1,281		$	1,342		$	1,367		$	1,471		$	1,459
Provisions (A)		290			247			334			243			362
Other additions (B)		18			35			30			32			34
Net write-offs - principal (C)		(253	)		(275	)		(309	)		(304	)		(310	)
Net write-offs - interest and fees (C)		(37	)		(36	)		(39	)		(38	)		(36	)
Other deductions (D)		(38	)		(32	)		(41	)		(37	)		(38	)
Ending balance	$	1,261		$	1,281		$	1,342		$	1,367		$	1,471
Ending reserves - principal	$	1,212		$	1,234		$	1,290		$	1,316		$	1,423
Ending reserves - interest and fees	$	49		$	47		$	52		$	51		$	48
% of loans		1.9	%		2.0	%		2.1	%		2.2	%		2.3	%
% of past due		169	%		179	%		188	%		170	%		182	%
Average loans	$	64.4		$	63.0		$	62.5		$	62.8		$	62.9
Net write-off rate (principal only) (E)		1.6	%		1.7	%		2.0	%		1.9	%		2.0	%
Net write-off rate (principal, interest and fees) (E)		1.8	%		2.0	%		2.2	%		2.2	%		2.2	%
30 days past due loans as a % of total		1.1	%		1.1	%		1.1	%		1.3	%		1.2	%
Net interest income divided by average loans (F)		8.1	%		8.1	%		7.7	%		8.0	%		7.5	%
Net interest yield on Card Member loans (F)		9.3	%		9.4	%		9.1	%		9.5	%		9.1	%

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

(B) Provisions for unauthorized transactions.

(D) For Card Member receivables, includes net write-offs resulting from unauthorized transactions of $(43) million for the three months ended December 31, 2013, $(37) million for the three months ended September 30, 2013, $(40) million for the three months ended June 30, 2013, $(40) million for the three months ended March 31, 2013 and $(41) million for the three months ended December 31, 2012; foreign currency translation adjustments of $(1) million for the three months ended December 31, 2013, $3 million for the three months ended September 30, 2013, $(4) million for the three months ended June 30, 2013, $(2) million for the three months ended March 31, 2013 and $(2) million for the three months ended December 31, 2012; and other items of $(3) million for the three months ended December 31, 2013, $(1) million for the three months ended September 30, 2013, $(1) million for the three months ended June 30, 2013, $7 million for the three months ended March 31, 2013 and $4 million for the three months ended December 31, 2012. For Card Member loans, includes net write-offs resulting from unauthorized transactions of $(34) million for the three months ended December 31, 2013, $(34) million for the three months ended September 30, 2013, $(30) million for the three months ended June 30, 2013, $(32) million for the three months ended March 31, 2013 and $(32) million for the three months ended December 31, 2012; foreign currency translation adjustments of $(4) million for the three months ended December 31, 2013, $3 million for the three months ended September 30, 2013, $(10) million for the three months ended June 30, 2013, $(1) million for the three months ended March 31, 2013 and $(2) million for the three months ended December 31, 2012; and other items of nil for the three months ended December 31, 2013, $(1) million for the three months ended September 30, 2013, $(1) million for the three months ended June 30, 2013, $(4) million for the three months ended March 31, 2013 and $(4) million for the three months ended December 31, 2012.

-11-

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

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

Revenues
Discount revenue, net card fees and other	$	3,132		$	2,903			8	%	$	12,123		$	11,469			6	%
Interest income		1,417			1,364			4			5,565			5,342			4
Interest expense		161			197			(18	)		693			765			(9	)
Net interest income		1,256			1,167			8			4,872			4,577			6
Total revenues net of interest expense		4,388			4,070			8			16,995			16,046			6
Provisions for losses		346			477			(27	)		1,417			1,429			(1	)
Total revenues net of interest expense after provisions for losses		4,042			3,593			12			15,578			14,617			7
Expenses
Marketing, promotion, rewards and Card Member services		1,789			1,888			(5	)		6,825			6,552			4
Salaries and employee benefits and other operating expenses		961			1,093			(12	)		3,759			3,996			(6	)
Total		2,750			2,981			(8	)		10,584			10,548			-
Pretax segment income		1,292			612			#			4,994			4,069			23
Income tax provision		428			189			#			1,801			1,477			22
Segment income	$	864		$	423			#		$	3,193		$	2,592			23
Effective tax rate		33.1	%		30.9	%					36.1	%		36.3	%

# - Denotes a variance of more than 100 percent.

-12-

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	134.1		$	123.3			9	%	$	501.0		$	462.3			8	%
Total cards-in-force (millions)		43.7			42.2			4	%		43.7			42.2			4	%
Basic cards-in-force (millions)		32.5			31.3			4	%		32.5			31.3			4	%
Average basic Card Member spending (dollars)	$	4,138		$	3,952			5	%	$	15,689		$	14,986			5	%

U.S. Consumer Travel:
Travel sales (millions)	$	865		$	907			(5	)%	$	3,967		$	4,042			(2	)%
Travel commissions and fees/sales		7.4	%		7.8	%					7.1	%		7.6	%

Total segment assets	$	103.5		$	98.3			5	%	$	103.5		$	98.3			5	%
Segment capital (millions) (A)	$	9,269		$	8,714			6	%	$	9,269		$	8,714			6	%
Return on average segment capital (B)		35.6	%		28.8	%					35.6	%		28.8	%
Return on average tangible segment capital (B)		37.0	%		30.1	%					37.0	%		30.1	%

Card Member receivables:
Total receivables	$	21.8		$	21.1			3	%	$	21.8		$	21.1			3	%
30 days past due as a % of total		1.6	%		1.8	%					1.6	%		1.8	%
Average receivables	$	21.2		$	20.1			5	%	$	20.6		$	19.8			4	%
Net write-off rate (principal only) (C)		1.5	%		1.8	%					1.7	%		1.9	%
Net write-off rate (principal and fees) (C)		1.7	%		1.9	%					1.9	%		2.1	%

Card Member loans:
Total loans	$	58.4		$	56.0			4	%	$	58.4		$	56.0			4	%
30 days past due loans as a % of total		1.1	%		1.2	%					1.1	%		1.2	%
Average loans	$	55.8		$	53.9			4	%	$	54.7		$	52.8			4	%
Net write-off rate (principal only) (C)		1.5	%		2.0	%					1.8	%		2.1	%
Net write-off rate (principal, interest and fees) (C)		1.7	%		2.2	%					2.0	%		2.3	%
Net interest income divided by average loans (D)		8.9	%		8.6	%					8.9	%		8.7	%
Net interest yield on Card Member loans (D)		9.2	%		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.

(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 Card Member 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 Card Member loans.

-13-

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

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

Revenues
Discount revenue, net card fees and other	$	3,132		$	3,050		$	3,063		$	2,878		$	2,903
Interest income		1,417			1,408			1,354			1,386			1,364
Interest expense		161			172			178			182			197
Net interest income		1,256			1,236			1,176			1,204			1,167
Total revenues net of interest expense		4,388			4,286			4,239			4,082			4,070
Provisions for losses		346			331			402			338			477
Total revenues net of interest expense after provisions for losses		4,042			3,955			3,837			3,744			3,593
Expenses
Marketing, promotion, rewards and Card Member services		1,789			1,756			1,735			1,545			1,888
Salaries and employee benefits and other operating expenses		961			942			927			929			1,093
Total		2,750			2,698			2,662			2,474			2,981
Pretax segment income		1,292			1,257			1,175			1,270			612
Income tax provision		428			475			432			466			189
Segment income	$	864		$	782		$	743		$	804		$	423
Effective tax rate		33.1	%		37.8	%		36.8	%		36.7	%		30.9	%

-14-

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	134.1		$	124.6		$	125.6		$	116.7		$	123.3
Total cards-in-force (millions)		43.7			43.4			42.9			42.5			42.2
Basic cards-in-force (millions)		32.5			32.2			31.9			31.7			31.3
Average basic Card Member spending (dollars)	$	4,138		$	3,882		$	3,954		$	3,709		$	3,952

U.S. Consumer Travel:
Travel sales	$	0.9		$	0.9		$	1.2		$	1.0		$	0.9
Travel commissions and fees/sales		7.4	%		7.9	%		6.7	%		6.4	%		7.8	%

Total segment assets	$	103.5		$	95.2		$	96.5		$	97.8		$	98.3
Segment capital (A)	$	9.3		$	9.1		$	8.7		$	9.1		$	8.7
Return on average segment capital (B)		35.6	%		30.8	%		29.9	%		29.2	%		28.8	%
Return on average tangible segment capital (B)		37.0	%		32.0	%		31.2	%		30.4	%		30.1	%

Card Member receivables:
Total receivables	$	21.8		$	20.3		$	20.9		$	20.4		$	21.1
30 days past due as a % of total		1.6	%		1.7	%		1.6	%		1.9	%		1.8	%
Average receivables	$	21.2		$	20.5		$	20.5		$	20.0		$	20.1
Net write-off rate (principal only) (C)		1.5	%		1.4	%		1.9	%		2.0	%		1.8	%
Net write-off rate (principal and fees) (C)		1.7	%		1.6	%		2.1	%		2.2	%		1.9	%

Card Member loans:
Total loans	$	58.4		$	54.5		$	54.6		$	53.6		$	56.0
30 days past due loans as a % of total		1.1	%		1.1	%		1.1	%		1.2	%		1.2	%
Average loans	$	55.8		$	54.7		$	54.0		$	54.0		$	53.9
Net write-off rate (principal only) (C)		1.5	%		1.7	%		2.0	%		2.0	%		2.0	%
Net write-off rate (principal, interest and fees) (C)		1.7	%		1.9	%		2.2	%		2.2	%		2.2	%
Net interest income divided by average loans (D)		8.9	%		9.0	%		8.7	%		9.0	%		8.6	%
Net interest yield on Card Member loans (D)		9.2	%		9.3	%		9.1	%		9.4	%		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									Years Ended
	December 31,						Percentage			December 31,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	1,229		$	1,210			2	%	$	4,644		$	4,561			2	%
Interest income		288			289			-			1,118			1,147			(3	)
Interest expense		88			102			(14	)		361			402			(10	)
Net interest income		200			187			7			757			745			2
Total revenues net of interest expense		1,429			1,397			2			5,401			5,306			2
Provisions for losses		120			99			21			444			330			35
Total revenues net of interest expense after provisions for losses		1,309			1,298			1			4,957			4,976			-
Expenses
Marketing, promotion, rewards and Card Member services		585			525			11			2,013			1,927			4
Salaries and employee benefits and other operating expenses		616			663			(7	)		2,301			2,390			(4	)
Total		1,201			1,188			1			4,314			4,317			-
Pretax segment income		108			110			(2	)		643			659			(2	)
Income tax provision		5			15			(67	)		12			25			(52	)
Segment income	$	103		$	95			8		$	631		$	634			-
Effective tax rate		4.6	%		13.6	%					1.9	%		3.8	%

-16-

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	35.5		$	34.7			2	%	$	131.7		$	128.9			2	%
Total cards-in-force (millions)		15.7			15.6			1	%		15.7			15.6			1	%
Basic cards-in-force (millions)		10.7			10.6			1	%		10.7			10.6			1	%
Average basic Card Member spending (dollars)	$	3,336		$	3,280			2	%	$	12,429		$	12,221			2	%

International Consumer Travel:
Travel sales (millions)	$	367		$	367			-	%	$	1,420		$	1,372			3	%
Travel commissions and fees/sales		7.1	%		7.4	%					6.9	%		7.2	%

Total segment assets	$	31.1		$	31.8			(2	)%	$	31.1		$	31.8			(2	)%
Segment capital (millions) (A)	$	3,132		$	2,875			9	%	$	3,132		$	2,875			9	%
Return on average segment capital (B)		20.9	%		21.8	%					20.9	%		21.8	%
Return on average tangible segment capital (B)		38.8	%		43.0	%					38.8	%		43.0	%

Card Member receivables:
Total receivables	$	7.8		$	7.8			-	%	$	7.8		$	7.8			-	%
90 days past billing as a % of total		1.1	%		0.9	%					1.1	%		0.9	%
Net loss ratio (as a % of charge volume)		0.19	%		0.16	%					0.20	%		0.16	%

Card Member loans:
Total loans	$	8.8		$	9.2			(4	)%	$	8.8		$	9.2			(4	)%
30 days past due loans as a % of total		1.4	%		1.5	%					1.4	%		1.5	%
Average loans	$	8.5		$	8.9			(4	)%	$	8.5		$	8.7			(2	)%
Net write-off rate (principal only) (C)		1.8	%		1.8	%					1.9	%		1.9	%
Net write-off rate (principal, interest and fees) (C)		2.2	%		2.3	%					2.3	%		2.4	%
Net interest income divided by average loans (D)		9.3	%		8.3	%					8.9	%		8.5	%
Net interest yield on Card Member loans (D)		10.0	%		9.6	%					9.9	%		9.6	%

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

Revenues
Discount revenue, net card fees and other	$	1,229		$	1,161		$	1,130		$	1,124		$	1,210
Interest income		288			281			259			290			289
Interest expense		88			86			90			97			102
Net interest income		200			195			169			193			187
Total revenues net of interest expense		1,429			1,356			1,299			1,317			1,397
Provisions for losses		120			113			116			95			99
Total revenues net of interest expense after provisions for losses		1,309			1,243			1,183			1,222			1,298
Expenses
Marketing, promotion, rewards and Card Member services		585			498			478			452			525
Salaries and employee benefits and other operating expenses		616			559			549			577			663
Total		1,201			1,057			1,027			1,029			1,188
Pretax segment income		108			186			156			193			110
Income tax provision/(benefit)		5			44			(52	)		15			15
Segment income	$	103		$	142		$	208		$	178		$	95
Effective tax rate		4.6	%		23.7	%		-33.3	%		7.8	%		13.6	%

-18-

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	35.5		$	32.5		$	32.3		$	31.3		$	34.7
Total cards-in-force (millions)		15.7			15.5			15.6			15.6			15.6
Basic cards-in-force (millions)		10.7			10.6			10.6			10.6			10.6
Average basic Card Member spending (dollars)	$	3,336		$	3,076		$	3,058		$	2,961		$	3,280

International Consumer Travel:
Travel sales	$	0.4		$	0.4		$	0.4		$	0.3		$	0.4
Travel commissions and fees/sales		7.1	%		7.0	%		6.8	%		6.8	%		7.4	%

Total segment assets	$	31.1		$	30.4		$	29.7		$	31.1		$	31.8
Segment capital (A)	$	3.1		$	3.1		$	3.1		$	3.0		$	2.9
Return on average segment capital (B)		20.9	%		20.8	%		21.9	%		20.9	%		21.8	%
Return on average tangible segment capital (B)		38.8	%		39.1	%		41.7	%		40.3	%		43.0	%

Card Member receivables:
Total receivables	$	7.8		$	7.2		$	7.2		$	7.1		$	7.8
90 days past billing as a % of total		1.1	%		1.1	%		1.1	%		1.1	%		0.9	%
Net loss ratio (as a % of charge volume)		0.19	%		0.21	%		0.21	%		0.18	%		0.16	%

Card Member loans:
Total loans	$	8.8		$	8.4		$	8.4		$	8.6		$	9.2
30 days past due loans as a % of total		1.4	%		1.5	%		1.6	%		1.7	%		1.5	%
Average loans	$	8.5		$	8.3		$	8.5		$	8.8		$	8.9
Net write-off rate (principal only) (C)		1.8	%		1.9	%		1.9	%		1.8	%		1.8	%
Net write-off rate (principal, interest and fees) (C)		2.2	%		2.4	%		2.4	%		2.3	%		2.3	%
Net interest income divided by average loans (D)		9.3	%		9.3	%		8.0	%		8.9	%		8.3	%
Net interest yield on Card Member loans (D)		10.0	%		10.4	%		9.2	%		10.0	%		9.6	%

(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									Years Ended
	December 31,						Percentage			December 31,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	1,298		$	1,277			2	%	$	5,085		$	4,995			2	%
Interest income		4			3			33			13			11			18
Interest expense		64			65			(2	)		245			257			(5	)
Net interest expense		(60	)		(62	)		(3	)		(232	)		(246	)		(6	)
Total revenues net of interest expense		1,238			1,215			2			4,853			4,749			2
Provisions for losses		41			33			24			159			136			17
Total revenues net of interest expense after provisions for losses		1,197			1,182			1			4,694			4,613			2
Expenses
Marketing, promotion, rewards and Card Member services		162			148			9			604			579			4
Salaries and employee benefits and other operating expenses		748			892			(16	)		2,846			3,074			(7	)
Total		910			1,040			(13	)		3,450			3,653			(6	)
Pretax segment income		287			142			#			1,244			960			30
Income tax provision		105			77			36			384			316			22
Segment income	$	182		$	65			#		$	860		$	644			34
Effective tax rate		36.6	%		54.2	%					30.9	%		32.9	%

# - Denotes a variance of more than 100 percent.

-20-

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	45.0		$	41.9			7	%	$	175.4		$	166.4			5	%
Total cards-in-force (millions)		7.1			7.0			1			7.1			7.0			1
Basic cards-in-force (millions)		7.1			7.0			1			7.1			7.0			1
Average basic Card Member spending (dollars)	$	6,361		$	5,978			6	%	$	24,924		$	23,737			5	%

Global Corporate Travel:
Travel sales (millions)	$	4,793		$	4,625			4	%	$	18,869		$	18,894			-	%
Travel commissions and fees/sales		8.3	%		8.7	%					8.1	%		8.1	%

Total segment assets	$	19.2		$	18.9			2	%	$	19.2		$	18.9			2	%
Segment capital (millions) (A)	$	3,688		$	3,625			2	%	$	3,688		$	3,625			2	%
Return on average segment capital (B)		23.6	%		17.6	%					23.6	%		17.6	%
Return on average tangible segment capital (B)		45.8	%		35.1	%					45.8	%		35.1	%

Card Member receivables:
Total receivables	$	14.4		$	13.7			5	%	$	14.4		$	13.7			5	%
90 days past billing as a % of total		0.9	%		0.8	%					0.9	%		0.8	%
Net loss ratio (as a % of charge volume)		0.08	%		0.06	%					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
	December 31,			September 30,			June 30,			March 31,			December 31,
	2013			2013			2013			2013			2012

Revenues
Discount revenue, net card fees and other	$	1,298		$	1,277		$	1,290		$	1,220		$	1,277
Interest income		4			3			3			3			3
Interest expense		64			59			62			60			65
Net interest expense		(60	)		(56	)		(59	)		(57	)		(62	)
Total revenues net of interest expense		1,238			1,221			1,231			1,163			1,215
Provisions for losses		41			36			45			37			33
Total revenues net of interest expense after provisions for losses		1,197			1,185			1,186			1,126			1,182
Expenses
Marketing, promotion, rewards and Card Member services		162			148			144			150			148
Salaries and employee benefits and other operating expenses		748			696			709			693			892
Total		910			844			853			843			1,040
Pretax segment income		287			341			333			283			142
Income tax provision		105			80			107			92			77
Segment income	$	182		$	261		$	226		$	191		$	65
Effective tax rate		36.6	%		23.5	%		32.1	%		32.5	%		54.2	%

-22-

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

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

Card billed business	$	45.0		$	43.2		$	44.4		$	42.8		$	41.9
Total cards-in-force (millions)		7.1			7.1			7.0			7.0			7.0
Basic cards-in-force (millions)		7.1			7.1			7.0			7.0			7.0
Average basic Card Member spending (dollars)	$	6,361		$	6,139		$	6,317		$	6,105		$	5,978

Global Corporate Travel:
Travel sales	$	4.8		$	4.5		$	5.0		$	4.7		$	4.6
Travel commissions and fees/sales		8.3	%		8.8	%		7.9	%		7.4	%		8.7	%

Total segment assets	$	19.2		$	20.5		$	20.5		$	20.5		$	18.9
Segment capital (A)	$	3.7		$	3.6		$	3.7		$	3.6		$	3.6
Return on average segment capital (B)		23.6	%		20.4	%		18.3	%		18.0	%		17.6	%
Return on average tangible segment capital (B)		45.8	%		39.9	%		35.9	%		35.2	%		35.1	%

Card Member receivables:
Total receivables	$	14.4		$	15.9		$	15.9		$	15.7		$	13.7
90 days past billing as a % of total		0.9	%		0.8	%		0.7	%		0.7	%		0.8	%
Net loss ratio (as a % of charge volume)		0.08	%		0.06	%		0.08	%		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.

-23-

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended									Years Ended
	December 31,						Percentage			December 31,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)
Revenues
Discount revenue, fees and other	$	1,373		$	1,322			4	%	$	5,229		$	5,005			4	%
Interest income		9			7			29			32			23			39
Interest expense		(65	)		(61	)		7			(252	)		(243	)		4
Net interest income		74			68			9			284			266			7
Total revenues net of interest expense		1,447			1,390			4			5,513			5,271			5
Provisions for losses		14			21			(33	)		69			74			(7	)
Total revenues net of interest expense after provisions for losses		1,433			1,369			5			5,444			5,197			5
Expenses
Marketing, promotion, rewards and Card Member services		158			180			(12	)		704			744			(5	)
Salaries and employee benefits and other operating expenses		643			632			2			2,271			2,234			2
Total		801			812			(1	)		2,975			2,978			-
Pretax segment income		632			557			13			2,469			2,219			11
Income tax provision		233			203			15			894			776			15
Segment income	$	399		$	354			13		$	1,575		$	1,443			9
Effective tax rate		36.9	%		36.4	%					36.2	%		35.0	%

-24-

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)	Quarters Ended									Years Ended
	December 31,						Percentage			December 31,						Percentage
	2013			2012			Inc/(Dec)			2013			2012			Inc/(Dec)

Global Card billed business (A)	$	254.0		$	235.5			8	%	$	952.4		$	888.4			7	%

Global Network & Merchant Services:
Total segment assets	$	17.1		$	16.5			4	%	$	17.1		$	16.5			4	%
Segment capital (millions) (B)	$	1,952		$	2,048			(5	)%	$	1,952		$	2,048			(5	)%
Return on average segment capital (C)		76.8	%		68.6	%					76.8	%		68.6	%
Return on average tangible segment capital (C)		84.9	%		75.9	%					84.9	%		75.9	%

Global Network Services:
Card billed business	$	39.3		$	35.1			12	%	$	144.1		$	128.8			12	%
Total cards-in-force (millions)		40.7			37.6			8	%		40.7			37.6			8	%

(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
	December 31,			September 30,			June 30,			March 31,			December 31,
	2013			2013			2013			2013			2012
Revenues
Discount revenue, fees and other	$	1,373		$	1,309		$	1,313		$	1,234		$	1,322
Interest income		9			8			8			7			7
Interest expense		(65	)		(62	)		(63	)		(62	)		(61	)
Net interest income		74			70			71			69			68
Total revenues net of interest expense		1,447			1,379			1,384			1,303			1,390
Provisions for losses		14			13			22			20			21
Total revenues net of interest expense after provisions for losses		1,433			1,366			1,362			1,283			1,369
Expenses
Marketing, promotion, rewards and Card Member services		158			200			188			158			180
Salaries and employee benefits and other operating expenses		643			558			527			543			632
Total		801			758			715			701			812
Pretax segment income		632			608			647			582			557
Income tax provision		233			217			235			209			203
Segment income	$	399		$	391		$	412		$	373		$	354
Effective tax rate		36.9	%		35.7	%		36.3	%		35.9	%		36.4	%

-26-

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)	Quarters Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2013			2013			2013			2013			2012

Global Card billed business (A)	$	254.0		$	236.2		$	237.7		$	224.5		$	235.5

Global Network & Merchant Services:
Total segment assets	$	17.1		$	17.8		$	22.6		$	22.0		$	16.5
Segment capital (B)	$	2.0		$	2.0		$	2.1		$	2.1		$	2.0
Return on average segment capital (C)		76.8	%		73.4	%		71.0	%		69.1	%		68.6	%
Return on average tangible segment capital (C)		84.9	%		81.1	%		78.4	%		76.4	%		75.9	%

Global Network Services:
Card billed business	$	39.3		$	35.9		$	35.8		$	33.2		$	35.1
Total cards-in-force (millions)		40.7			39.4			38.8			38.1			37.6

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

ROE

Net income	$	5,359		$	4,688		$	4,572		$	4,506		$	4,482
Average shareholders' equity	$	19,254		$	19,289		$	19,372		$	19,426		$	19,425
Return on average equity (A)		27.8	%		24.3	%		23.6	%		23.2	%		23.1	%

Reconciliation of ROCE and ROTCE

Net income	$	5,359		$	4,688		$	4,572		$	4,506		$	4,482
Earnings allocated to participating share awards and other		47			43			45			46			49
Net income attributable to common shareholders	$	5,312		$	4,645		$	4,527		$	4,460		$	4,433

Average shareholders' equity	$	19,254		$	19,289		$	19,372		$	19,426		$	19,425
Average common shareholders' equity	$	19,254		$	19,289		$	19,372		$	19,426		$	19,425
Average goodwill and other intangibles		4,055			4,091			4,128			4,181			4,232
Average tangible common shareholders' equity	$	15,199		$	15,198		$	15,244		$	15,245		$	15,193
Return on average common equity (A)		27.6	%		24.1	%		23.4	%		23.0	%		22.8	%
Return on average tangible common equity (B)		34.9	%		30.6	%		29.7	%		29.3	%		29.2	%

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

U.S. Card Services
Segment income	$	3,193		$	2,752		$	2,669		$	2,644		$	2,592
Average segment capital	$	8,974		$	8,940		$	8,921		$	9,053		$	8,999
Average goodwill and other intangibles		334			345			357			368			379
Average tangible segment capital	$	8,640		$	8,595		$	8,564		$	8,685		$	8,620
Return on average segment capital (A)		35.6	%		30.8	%		29.9	%		29.2	%		28.8	%
Return on average tangible segment capital (A)		37.0	%		32.0	%		31.2	%		30.4	%		30.1	%

International Card Services
Segment income	$	631		$	623		$	645		$	615		$	634
Average segment capital	$	3,024		$	2,990		$	2,946		$	2,937		$	2,909
Average goodwill and other intangibles		1,396			1,398			1,398			1,412			1,433
Average tangible segment capital	$	1,628		$	1,592		$	1,548		$	1,525		$	1,476
Return on average segment capital (A)		20.9	%		20.8	%		21.9	%		20.9	%		21.8	%
Return on average tangible segment capital (A)		38.8	%		39.1	%		41.7	%		40.3	%		43.0	%

Global Commercial Services
Segment income	$	860		$	743		$	665		$	658		$	644
Average segment capital	$	3,647		$	3,637		$	3,639		$	3,663		$	3,649
Average goodwill and other intangibles		1,768			1,775			1,785			1,796			1,812
Average tangible segment capital	$	1,879		$	1,862		$	1,854		$	1,867		$	1,837
Return on average segment capital (A)		23.6	%		20.4	%		18.3	%		18.0	%		17.6	%
Return on average tangible segment capital (A)		45.8	%		39.9	%		35.9	%		35.2	%		35.1	%

Global Network & Merchant Services
Segment income	$	1,575		$	1,530		$	1,499		$	1,459		$	1,443
Average segment capital	$	2,050		$	2,084		$	2,111		$	2,110		$	2,104
Average goodwill and other intangibles		195			197			199			201			203
Average tangible segment capital	$	1,855		$	1,887		$	1,912		$	1,909		$	1,901
Return on average segment capital (A)		76.8	%		73.4	%		71.0	%		69.1	%		68.6	%
Return on average tangible segment capital (A)		84.9	%		81.1	%		78.4	%		76.4	%		75.9	%

(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 Card Member Loans

Appendix III

(Millions)

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

Net interest income	$	1,319		$	1,283		$	1,202		$	1,243		$	1,193

Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio	$	279		$	296		$	295		$	311		$	324

Interest income not attributable to the Company's Card Member loan portfolio	$	(91	)	$	(87	)	$	(88	)	$	(95	)	$	(91	)

Adjusted net interest income (A)	$	1,507		$	1,492		$	1,409		$	1,459		$	1,426

Average loans (billions)	$	64.4		$	63.0		$	62.5		$	62.8		$	62.9

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

Adjusted average loans (billions) (B)	$	64.2		$	62.8		$	62.2		$	62.5		$	62.7

Net interest income divided by average loans (C)		8.1	%		8.1	%		7.7	%		8.0	%		7.5	%
Net interest yield on Card Member loans (D)		9.3	%		9.4	%		9.1	%		9.5	%		9.1	%

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

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

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

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

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(Preliminary)

U. S. Card Services and International Card Services

Net Interest Yield on Card Member Loans

Appendix IV

(Millions)

	Quarters Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2013			2013			2013			2013			2012
USCS:
Net interest income	$	1,256		$	1,236		$	1,176		$	1,204		$	1,167

Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio	$	43		$	45		$	47		$	48		$	51

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

Adjusted net interest income (A)	$	1,297		$	1,278		$	1,221		$	1,250		$	1,216

Average loans (billions)	$	55.8		$	54.7		$	54.0		$	54.0		$	53.9

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

Adjusted average loans (billions) (B)	$	55.8		$	54.7		$	54.0		$	54.0		$	53.9

Net interest income divided by average loans (C)		8.9	%		9.0	%		8.7	%		9.0	%		8.6	%
Net interest yield on Card Member loans (D)		9.2	%		9.3	%		9.1	%		9.4	%		9.0	%

ICS:
Net interest income	$	200		$	195		$	169		$	193		$	187

Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio	$	21		$	23		$	26		$	23		$	27

Interest income not attributable to the Company's Card Member loan portfolio	$	(11	)	$	(6	)	$	(5	)	$	(7	)	$	(3	)

Adjusted net interest income (A)	$	210		$	212		$	190		$	209		$	211

Average loans (billions)	$	8.5		$	8.3		$	8.5		$	8.8		$	8.9

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

Adjusted average loans (billions) (B)	$	8.3		$	8.1		$	8.3		$	8.5		$	8.7

Net interest income divided by average loans (C)		9.3	%		9.3	%		8.0	%		8.9	%		8.3	%
Net interest yield on Card Member loans (D)		10.0	%		10.4	%		9.2	%		10.0	%		9.6	%

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(Preliminary)

American Express Company

Net Income and EPS Reconciliation

Appendix V

(Millions, except per share amounts)	Quarter Ended		Year Ended
	December 31, 2013		December 31, 2013

Net income:

Reported Net income	$	1,308	$	5,359

Q4'13 Merchant Litigation Settlement (after-tax)	$	41	$	41

Adjusted Net income (A)	$	1,349	$	5,400

Diluted EPS:

Reported Net income attributable to common shareholders	$	1.21	$	4.88

Q4'13 Merchant Litigation Settlement (after-tax)	$	0.04	$	0.03

Adjusted Net income attributable to common shareholders (A)	$	1.25	$	4.91

(A) Adjusted net income and adjusted net income attributable to common shareholders, which are non-GAAP measures, represent net income excluding the impact of the merchant litigation settlement recognized in Q4’13. The Company believes adjusted net income and adjusted net income attributable to common shareholders provide useful metrics to evaluate the ongoing operating performance of the Company.

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AMERICAN EXPRESS CO - FORM 8-K - EX-99.2 - EXHIBIT 99.2 FINANCIALS - January 16, 2014

Attached files

AMERICAN EXPRESS CO Reports