AMERICAN EXPRESS CO - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - March 9, 2018

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8-K - FORM 8-K OF AMERICAN EXPRESS COMPANY - AMERICAN EXPRESS COmar92018axp8k.htm
EXHIBIT 99.1
 

 
American Express Company
 (Preliminary)
Consolidated Statements of Income and Selected Statistical Information
 
 
 
 
(Millions, except percentages and per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  
As Reported
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
                                                
Discount revenue
  
$
5,080
    
$
4,772
    
$
4,815
    
$
4,519
    
$
4,697
    
$
4,516
    
$
4,824
    
$
4,643
  
Net card fees
    
785
      
786
      
771
      
748
      
725
      
747
      
715
      
699
  
Other fees and commissions
    
790
      
767
      
752
      
713
      
677
      
694
      
702
      
680
  
Other
    
448
      
436
      
439
      
409
      
515
      
483
      
545
      
486
  
Total non-interest revenues
    
7,103
      
6,761
      
6,777
      
6,389
      
6,614
      
6,440
      
6,786
      
6,508
  
Interest income
                                                                
Interest on loans
    
2,202
      
2,129
      
1,947
      
1,860
      
1,759
      
1,690
      
1,818
      
1,938
  
Interest and dividends on investment securities
    
21
      
22
      
23
      
23
      
27
      
34
      
34
      
36
  
Deposits with banks and other
    
93
      
91
      
82
      
60
      
35
      
40
      
33
      
31
  
Total interest income
    
2,316
      
2,242
      
2,052
      
1,943
      
1,821
      
1,764
      
1,885
      
2,005
  
Interest expense
                                                                
Deposits
    
241
      
213
      
176
      
149
      
148
      
150
      
150
      
150
  
Long-term debt and other
    
339
      
354
      
346
      
294
      
265
      
280
      
286
      
275
  
Total interest expense
    
580
      
567
      
522
      
443
      
413
      
430
      
436
      
425
  
Net interest income
    
1,736
      
1,675
      
1,530
      
1,500
      
1,408
      
1,334
      
1,449
      
1,580
  
Total revenues net of interest expense
    
8,839
      
8,436
      
8,307
      
7,889
      
8,022
      
7,774
      
8,235
      
8,088
  
Provisions for losses
                                                                
Charge card
    
205
      
214
      
163
      
213
      
200
      
174
      
153
      
169
  
Card Member loans
    
596
      
531
      
404
      
337
      
404
      
319
      
285
      
227
  
Other
    
32
      
24
      
17
      
23
      
21
      
11
      
25
      
38
  
Total provisions for losses
    
833
      
769
      
584
      
573
      
625
      
504
      
463
      
434
  
Total revenues net of interest expense after provisions for losses
    
8,006
      
7,667
      
7,723
      
7,316
      
7,397
      
7,270
      
7,772
      
7,654
  
   
Expenses
                                                                
Marketing and promotion
    
873
      
814
      
830
      
700
      
1,205
      
930
      
788
      
727
  
Card Member rewards
    
1,975
      
1,900
      
1,926
      
1,807
      
1,758
      
1,566
      
1,766
      
1,703
  
Card Member services and other
    
406
      
363
      
349
      
321
      
292
      
278
      
281
      
282
  
Salaries and employee benefits
    
1,436
      
1,265
      
1,293
      
1,264
      
1,207
      
1,263
      
1,451
      
1,338
  
Professional services
    
536
      
501
      
521
      
512
      
721
      
630
      
628
      
604
  
Occupancy and equipment
    
492
      
568
      
484
      
475
      
506
      
429
      
438
      
465
  
Other, net
    
467
      
429
      
371
      
420
      
547
      
439
      
(596
)
    
351
  
Total expenses
    
6,185
      
5,840
      
5,774
      
5,499
      
6,236
      
5,535
      
4,756
      
5,470
  
Pretax income
    
1,821
      
1,827
      
1,949
      
1,817
      
1,161
      
1,735
      
3,016
      
2,184
  
Income tax provision
    
3,018
      
471
      
609
      
580
      
336
      
593
      
1,001
      
758
  
Net income (loss)
  
$
(1,197
)
  
$
1,356
    
$
1,340
    
$
1,237
    
$
825
    
$
1,142
    
$
2,015
    
$
1,426
  
Net income (loss) attributable to common shareholders (A)
  
$
(1,219
)
  
$
1,324
    
$
1,310
    
$
1,206
    
$
800
    
$
1,112
    
$
1,979
    
$
1,394
  
Effective tax rate
    
165.7
%
    
25.8
%
    
31.2
%
    
31.9
%
    
28.9
%
    
34.2
%
    
33.2
%
    
34.7
%
 
                                                                
Earnings Per Common Share
                                                                
Basic
                                                                
Net income (loss) attributable to common shareholders
  
$
(1.41
)
  
$
1.51
    
$
1.47
    
$
1.34
    
$
0.88
    
$
1.21
    
$
2.11
    
$
1.45
  
Average common shares outstanding
    
865
      
878
      
890
      
899
      
910
      
920
      
938
      
961
  
Diluted
                                                                
Net income (loss) attributable to common shareholders
  
$
(1.41
)
  
$
1.50
    
$
1.47
    
$
1.34
    
$
0.88
    
$
1.20
    
$
2.10
    
$
1.45
  
Average common shares outstanding
    
865
      
881
      
893
      
903
      
913
      
923
      
941
      
963
  
Cash dividends declared per common share
  
$
0.35
    
$
0.35
    
$
0.32
    
$
0.32
    
$
0.32
    
$
0.32
    
$
0.29
    
$
0.29
  
   
Selected Statistical Information
                      
Average discount rate (B)
    
2.40
%
    
2.42
%
    
2.44
%
    
2.45
%
    
2.44
%
    
2.47
%
    
2.43
%
    
2.44
%
                                                                 
Net interest income divided by average Card Member loans (C)
    
9.9
%
    
10.0
%
    
9.4
%
    
9.4
%
    
9.0
%
    
8.8
%
    
8.6
%
    
8.9
%
Net interest yield on average Card Member loans (C)
    
10.5
%
    
10.7
%
    
10.3
%
    
10.3
%
    
9.9
%
    
9.8
%
    
9.5
%
    
9.7
%



Please see Appendix II for footnote references
 
-1-

 


American Express Company
 (Preliminary)
Consolidated Statements of Income and Selected Statistical Information
 
 
 
 
(Millions, except percentages and per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  
Adjustments (Increase/(Decrease))
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
                                                
Discount revenue
  
$
980
    
$
928
    
$
928
    
$
868
    
$
943
    
$
892
    
$
977
    
$
885
  
Net card fees
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Other fees and commissions
    
(12
)
    
(12
)
    
(6
)
    
(2
)
    
(14
)
    
(8
)
    
(11
)
    
(2
)
Other
    
(104
)
    
(65
)
    
(59
)
    
(48
)
    
(96
)
    
(74
)
    
(123
)
    
(60
)
Total non-interest revenues
    
864
      
851
      
863
      
818
      
833
      
810
      
843
      
823
  
Interest income
                                                                
Interest on loans
    
3
      
2
      
3
      
2
      
3
      
2
      
2
      
2
  
Interest and dividends on investment securities
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Deposits with banks and other
    
-
      
-
      
-
 
    
-
      
-
      
-
      
-
      
-
  
Total interest income
    
3
      
2
      
3
      
2
      
3
      
2
      
2
      
2
  
Interest expense
                                                                
Deposits
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Long-term debt and other
    
-
      
-
      
-
 
    
-
      
-
      
-
      
-
      
-
  
Total interest expense
    
-
      
-
      
-
 
    
-
      
-
      
-
      
-
      
-
  
Net interest income
    
3
      
2
      
3
      
2
      
3
      
2
      
2
      
2
  
Total revenues net of interest expense
    
867
      
853
      
866
      
820
      
836
      
812
      
845
      
825
  
Provisions for losses
                                                                
Charge card
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Card Member loans
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Other
    
-
      
-
      
-
 
    
-
      
-
      
-
      
-
 
    
-
  
Total provisions for losses
    
-
      
-
      
-
 
    
-
      
-
      
-
      
-
 
    
-
  
Total revenues net of interest expense after provisions for losses
    
867
      
853
      
866
      
820
      
836
      
812
      
845
      
825
  
   
Expenses
                                                                
Marketing and business development (D)
    
662
      
632
      
626
      
585
      
654
      
618
      
693
      
634
  
Card Member rewards
    
287
      
268
      
270
      
254
      
276
      
250
      
266
      
234
  
Card Member services and other
    
(23
)
    
(12
)
    
(8
)
    
(4
)
    
(13
)
    
(4
)
    
(9
)
    
(7
)
Salaries and employee benefits
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Professional services
    
(2
)
    
(7
)
    
(10
)
    
(11
)
    
(18
)
    
(16
)
    
(21
)
    
(20
)
Occupancy and equipment
    
1
      
(1
)
    
-
      
(1
)
    
-
      
-
      
(1
)
    
-
  
Other, net (D)
    
(35
)
    
(31
)
    
(20
)
    
(25
)
    
(35
)
    
(37
)
    
(34
)
    
(38
)
Total expenses
    
890
      
849
      
858
      
798
      
864
      
811
      
894
      
803
  
Pretax income
    
(23
)
    
4
      
8
      
22
      
(28
)
    
1
      
(49
)
    
22
  
Income tax provision
    
(14
)
    
1
      
4
      
8
      
(12
)
    
1
      
(19
)
    
9
  
Net income (loss)
  
$
(9
)
  
$
3
    
$
4
    
$
14
    
$
(16
)
  
$
-
    
$
(30
)
  
$
13
  
Net income (loss) attributable to common shareholders (A)
  
$
(9
)
  
$
3
    
$
4
    
$
14
    
$
(16
)
  
$
-
    
$
(30
)
  
$
13
  
Effective tax rate
    
1.4
%
    
-
 
    
0.1
%
    
0.1
%
    
(0.3
%)
    
-
 
    
(0.1
%)
    
0.1
%
 
                                                                
Earnings Per Common Share
                                                                
Basic
                                                                
Net income (loss) attributable to common shareholders
  
$
(0.01
)
    
-
    
$
0.01
    
$
0.02
    
$
(0.02
)
    
-
    
$
(0.03
)
  
$
0.01
  
Average common shares outstanding
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Diluted
                                                                
Net income (loss) attributable to common shareholders
  
$
(0.01
)
  
$
0.01
      
-
    
$
0.01
    
$
(0.02
)
  
$
0.01
    
$
(0.03
)
  
$
0.01
  
Average common shares outstanding
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Cash dividends declared per common share
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
   
Selected Statistical Information
                      
Average discount rate (B)
    
(0.03
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
                                                                 
Net interest income divided by average Card Member loans (C)
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
0.1
%
    
-
 
    
-
 
Net interest yield on average Card Member loans (C)
    
-
 
    
-
 
    
-
 
    
-
 
    
(0.1
%)
    
-
 
    
(0.1
%)
    
-
 



Please see Appendix II for footnote references
 
-2-

 

American Express Company
 (Preliminary)
Consolidated Statements of Income and Selected Statistical Information
 
 
 
 
(Millions, except percentages and per share amounts)
 

 
                                                
 
  
As Recast
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
                                                
Discount revenue
  
$
6,060
    
$
5,700
    
$
5,743
    
$
5,387
    
$
5,640
    
$
5,408
    
$
5,801
    
$
5,528
  
Net card fees
    
785
      
786
      
771
      
748
      
725
      
747
      
715
      
699
  
Other fees and commissions
    
778
      
755
      
746
      
711
      
663
      
686
      
691
      
678
  
Other
    
344
      
371
      
380
      
361
      
419
      
409
      
422
      
426
  
Total non-interest revenues
    
7,967
      
7,612
      
7,640
      
7,207
      
7,447
      
7,250
      
7,629
      
7,331
  
Interest income
                                                                
Interest on loans
    
2,205
      
2,131
      
1,950
      
1,862
      
1,762
      
1,692
      
1,820
      
1,940
  
Interest and dividends on investment securities
    
21
      
22
      
23
      
23
      
27
      
34
      
34
      
36
  
Deposits with banks and other
    
93
      
91
      
82
      
60
      
35
      
40
      
33
      
31
  
Total interest income
    
2,319
      
2,244
      
2,055
      
1,945
      
1,824
      
1,766
      
1,887
      
2,007
  
Interest expense
                                                                
Deposits
    
241
      
213
      
176
      
149
      
148
      
150
      
150
      
150
  
Long-term debt and other
    
339
      
354
      
345
      
294
      
265
      
280
      
286
      
275
  
Total interest expense
    
580
      
567
      
522
      
443
      
413
      
430
      
436
      
425
  
Net interest income
    
1,739
      
1,677
      
1,533
      
1,502
      
1,411
      
1,336
      
1,451
      
1,582
  
Total revenues net of interest expense
    
9,706
      
9,289
      
9,173
      
8,709
      
8,858
      
8,586
      
9,080
      
8,913
  
Provisions for losses
                                                                
Charge card
    
205
      
214
      
163
      
213
      
200
      
174
      
153
      
169
  
Card Member loans
    
596
      
531
      
404
      
337
      
404
      
319
      
285
      
227
  
Other
    
32
      
24
      
17
      
23
      
21
      
11
      
25
      
38
  
Total provisions for losses
    
833
      
769
      
584
      
573
      
625
      
504
      
463
      
434
  
Total revenues net of interest expense after provisions for losses
    
8,873
      
8,520
      
8,589
      
8,136
      
8,233
      
8,082
      
8,617
      
8,479
  
   
Expenses
                                                                
Marketing and business development (D)
    
1,535
      
1,446
      
1,456
      
1,285
      
1,859
      
1,548
      
1,481
      
1,361
  
Card Member rewards
    
2,262
      
2,168
      
2,196
      
2,061
      
2,034
      
1,816
      
2,032
      
1,937
  
Card Member services and other
    
383
      
351
      
341
      
317
      
279
      
274
      
272
      
275
  
Salaries and employee benefits
    
1,436
      
1,265
      
1,293
      
1,264
      
1,207
      
1,263
      
1,451
      
1,338
  
Professional services
    
534
      
494
      
511
      
501
      
703
      
614
      
607
      
584
  
Occupancy and equipment
    
493
      
567
      
484
      
474
      
506
      
429
      
437
      
465
  
Other, net (D)
    
432
      
398
      
351
      
395
      
512
      
402
      
(630
)
    
313
  
Total expenses
    
7,075
      
6,689
      
6,632
      
6,297
      
7,100
      
6,346
      
5,650
      
6,273
  
Pretax income
    
1,798
      
1,831
      
1,957
      
1,839
      
1,133
      
1,736
      
2,967
      
2,206
  
Income tax provision
    
3,004
      
472
      
613
      
588
      
324
      
594
      
982
      
767
  
Net income (loss)
  
$
(1,206
)
  
$
1,359
    
$
1,344
    
$
1,251
    
$
809
    
$
1,142
    
$
1,985
    
$
1,439
  
Net income (loss) attributable to common shareholders (A)
  
$
(1,228
)
  
$
1,327
    
$
1,314
    
$
1,220
    
$
784
    
$
1,112
    
$
1,949
    
$
1,407
  
Effective tax rate
    
167.1
%
    
25.8
%
    
31.3
%
    
32.0
%
    
28.6
%
    
34.2
%
    
33.1
%
    
34.8
%
 
                                                                
Earnings Per Common Share
                                                                
Basic
                                                                
Net income (loss) attributable to common shareholders
  
$
(1.42
)
  
$
1.51
    
$
1.48
    
$
1.36
    
$
0.86
    
$
1.21
    
$
2.08
    
$
1.46
  
Average common shares outstanding
    
865
      
878
      
890
      
899
      
910
      
920
      
938
      
961
  
Diluted
                                                                
Net income (loss) attributable to common shareholders
  
$
(1.42
)
  
$
1.51
    
$
1.47
    
$
1.35
    
$
0.86
    
$
1.21
    
$
2.07
    
$
1.46
  
Average common shares outstanding
    
865
      
881
      
893
      
903
      
913
      
923
      
941
      
963
  
Cash dividends declared per common share
  
$
0.35
    
$
0.35
    
$
0.32
    
$
0.32
    
$
0.32
    
$
0.32
    
$
0.29
    
$
0.29
  
   
Selected Statistical Information
                      
Average discount rate (B)
    
2.37
%
    
2.40
%
    
2.42
%
    
2.43
%
    
2.42
%
    
2.45
%
    
2.41
%
    
2.42
%
                                                                 
Net interest income divided by average Card Member loans (C)
    
9.9
%
    
10.0
%
    
9.4
%
    
9.4
%
    
9.0
%
    
8.9
%
    
8.6
%
    
8.9
%
Net interest yield on average Card Member loans (C)
    
10.5
%
    
10.7
%
    
10.3
%
    
10.3
%
    
9.8
%
    
9.8
%
    
9.4
%
    
9.7
%



 
Please see Appendix II for footnote references
-3-


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

 
  
As Reported
  
 
  
U.S. Consumer Services
    
International Consumer and Network Services
    
Global Commercial Services
    
Global Merchant Services
    
Corporate and Other
    
Consolidated
  
 
  
(USCS)
    
(ICNS)
    
(GCS)
    
(GMS)
              
Twelve months ended December 31, 2017
                                    
Non-interest revenues
  
$
7,923
    
$
5,052
    
$
9,463
    
$
4,333
    
$
259
    
$
27,030
  
Interest income
    
5,755
      
1,029
      
1,361
      
1
      
407
      
8,553
  
Interest expense
    
742
      
251
      
540
      
(262
)
    
841
      
2,112
  
Total revenues net of interest expense
    
12,936
      
5,830
      
10,284
      
4,596
      
(175
)
    
33,471
  
Total provision
    
1,630
      
367
      
744
      
15
      
3
      
2,759
  
Total revenues net of interest expense after provisions for losses
    
11,306
      
5,463
      
9,540
      
4,581
      
(178
)
    
30,712
  
Marketing, promotion, rewards, Card Member services and other
    
5,695
      
2,341
      
3,724
      
182
      
322
      
12,264
  
Salaries and employee benefits and other operating expenses
    
2,808
      
2,029
      
2,817
      
2,010
      
1,370
      
11,034
  
Pretax income (loss)
    
2,803
      
1,093
      
2,999
      
2,389
      
(1,870
)
    
7,414
  
Income tax provision
    
912
      
181
      
972
      
815
      
1,798
      
4,678
  
Net income (loss)
    
1,891
      
912
      
2,027
      
1,574
      
(3,668
)
    
2,736
  
 
                                                
Twelve months ended December 31, 2016
                                                
Non-interest revenues
  
$
7,874
    
$
4,785
    
$
9,007
    
$
4,235
    
$
447
    
$
26,348
  
Interest income
    
5,082
      
922
      
1,209
      
1
      
261
      
7,475
  
Interest expense
    
536
      
219
      
401
      
(237
)
    
785
      
1,704
  
Total revenues net of interest expense
    
12,420
      
5,488
      
9,815
      
4,473
      
(77
)
    
32,119
  
Total provision
    
1,065
      
325
      
604
      
25
      
7
      
2,026
  
Total revenues net of interest expense after provisions for losses
    
11,355
      
5,163
      
9,211
      
4,448
      
(84
)
    
30,093
  
Marketing, promotion rewards, Card Member services and other
    
5,416
      
2,177
      
3,398
      
232
      
353
      
11,576
  
Salaries and employee benefits and other operating expenses
    
2,058
      
2,168
      
2,868
      
1,921
      
1,406
      
10,421
  
Pretax income (loss)
    
3,881
      
818
      
2,945
      
2,295
      
(1,843
)
    
8,096
  
Income tax provision (benefit)
    
1,368
      
163
      
1,036
      
837
      
(716
)
    
2,688
  
Net income (loss)
    
2,513
      
655
      
1,909
      
1,458
      
(1,127
)
    
5,408
  
 
 
 
Please see Appendix II for footnote references
-4-
 

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

 
  
Adjustments (Increase/(Decrease))
  
 
  
U.S. Consumer Services
    
International Consumer and Network Services
    
Global Commercial Services
    
Global Merchant Services
    
Corporate and Other
    
Consolidated
  
 
  
(USCS)
    
(ICNS)
    
(GCS)
    
(GMS)
              
Twelve months ended December 31, 2017
                                    
Non-interest revenues
  
$
1,043
    
$
854
    
$
1,480
    
$
16
    
$
3
    
$
3,396
  
Interest income
    
9
      
1
      
-
      
-
      
-
      
10
  
Interest expense
    
61
      
7
      
55
      
58
      
(181
)
    
-
  
Total revenues net of interest expense
    
991
      
848
      
1,425
      
(42
)
    
184
      
3,406
  
Total provision
    
-
      
-
      
-
 
    
-
      
-
      
-
  
Total revenues net of interest expense after provisions for losses
    
991
      
848
      
1,425
      
(42
)
    
184
      
3,406
  
Marketing, business development, rewards, Card Member services and other
    
1,084
      
955
      
1,587
      
169
      
(258
)
    
3,537
  
Salaries and employee benefits and other operating expenses
    
(87
)
    
(268
)
    
(32
)
    
(140
)
    
385
      
(142
)
Pretax income (loss)
    
(6
)
    
161
      
(130
)
    
(71
)
    
57
      
11
  
Income tax provision (benefit)
    
(4
)
    
63
      
(48
)
    
(26
)
    
14
      
(1
)
Net income (loss)
    
(2
)
    
98
      
(82
)
    
(45
)
    
43
      
12
  
 
                                                
Twelve months ended December 31, 2016
                                                
Non-interest revenues
  
$
1,034
    
$
920
    
$
1,366
    
$
33
    
$
(43
)
  
$
3,310
  
Interest income
    
8
      
-
      
-
      
-
      
1
      
9
  
Interest expense
    
78
      
7
      
71
      
90
      
(245
)
    
1
  
Total revenues net of interest expense
    
964
      
913
      
1,295
      
(57
)
    
203
      
3,318
  
Total provision
    
-
      
-
      
-
      
-
 
    
-
      
-
  
Total revenues net of interest expense after provisions for losses
    
964
      
913
      
1,295
      
(57
)
    
203
      
3,318
  
Marketing, business development, rewards, Card Member services and other
    
1,102
      
1,057
      
1,467
      
232
      
(266
)
    
3,592
  
Salaries and employee benefits and other operating expenses
    
(205
)
    
(226
)
    
(174
)
    
(115
)
    
500
      
(220
)
Pretax income (loss)
    
67
      
82
      
2
      
(174
)
    
(31
)
    
(54
)
Income tax provision (benefit)
    
25
      
29
      
1
      
(65
)
    
(11
)
    
(21
)
Net income (loss)
    
42
      
53
      
1
      
(109
)
    
(20
)
    
(33
)


 
Please see Appendix II for footnote references
 
-5-
 

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

 
  
As Recast
  
 
  
U.S. Consumer Services
    
International Consumer and Network Services
    
Global Commercial Services
    
Global Merchant Services
    
Corporate and Other
    
Consolidated
  
 
  
(USCS)
    
(ICNS)
    
(GCS)
    
(GMS)
              
Twelve months ended December 31, 2017
                                    
Non-interest revenues
  
$
8,966
    
$
5,906
    
$
10,943
    
$
4,349
    
$
262
    
$
30,426
  
Interest income
    
5,764
      
1,030
      
1,361
      
1
      
407
      
8,563
  
Interest expense
    
803
      
258
      
595
      
(204
)
    
660
      
2,112
  
Total revenues net of interest expense
    
13,927
      
6,678
      
11,709
      
4,554
      
9
      
36,877
  
Total provision
    
1,630
      
367
      
744
      
15
      
3
      
2,759
  
Total revenues net of interest expense after provisions for losses
    
12,297
      
6,311
      
10,965
      
4,539
      
6
      
34,118
  
Marketing, business development, rewards, Card Member services and other
    
6,779
      
3,296
      
5,311
      
351
      
64
      
15,801
  
Salaries and employee benefits and other operating expenses
    
2,721
      
1,761
      
2,785
      
1,870
      
1,755
      
10,892
  
Pretax income (loss)
    
2,797
      
1,254
      
2,869
      
2,318
      
(1,813
)
    
7,425
  
Income tax provision
    
908
      
244
      
924
      
789
      
1,812
      
4,677
  
Net income (loss)
    
1,889
      
1,010
      
1,945
      
1,529
      
(3,625
)
    
2,748
  
 
                                                
Twelve months ended December 31, 2016
                                                
Non-interest revenues
  
$
8,908
    
$
5,705
    
$
10,373
    
$
4,268
    
$
404
    
$
29,658
  
Interest income
    
5,090
      
922
      
1,209
      
1
      
262
      
7,484
  
Interest expense
    
614
      
226
      
472
      
(147
)
    
540
      
1,705
  
Total revenues net of interest expense
    
13,384
      
6,401
      
11,110
      
4,416
      
126
      
35,437
  
Total provision
    
1,065
      
325
      
604
      
25
      
7
      
2,026
  
Total revenues net of interest expense after provisions for losses
    
12,319
      
6,076
      
10,506
      
4,391
      
119
      
33,411
  
Marketing, business development, rewards, Card Member services and other
    
6,518
      
3,234
      
4,865
      
464
      
87
      
15,168
  
Salaries and employee benefits and other operating expenses
    
1,853
      
1,942
      
2,694
      
1,806
      
1,906
      
10,201
  
Pretax income (loss)
    
3,948
      
900
      
2,947
      
2,121
      
(1,874
)
    
8,042
  
Income tax provision (benefit)
    
1,393
      
192
      
1,037
      
772
      
(727
)
    
2,667
  
Net income (loss)
    
2,555
      
708
      
1,910
      
1,349
      
(1,147
)
    
5,375
  

 
 
Please see Appendix II for footnote references
 
-6-

 

U.S. Consumer Services
 
 (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  
As Reported
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
2,091
    
$
1,976
    
$
1,999
    
$
1,857
    
$
1,927
    
$
1,849
    
$
2,069
    
$
2,029
  
Interest income
    
1,569
      
1,509
      
1,369
      
1,308
      
1,235
      
1,178
      
1,278
      
1,391
  
Interest expense
    
223
      
202
      
171
      
146
      
132
      
125
      
139
      
140
  
Net interest income
    
1,346
      
1,307
      
1,198
      
1,162
      
1,103
      
1,053
      
1,139
      
1,251
  
Total revenues net of interest expense
    
3,437
      
3,283
      
3,197
      
3,019
      
3,030
      
2,902
      
3,208
      
3,280
  
Provisions for losses
    
532
      
459
      
345
      
294
      
363
      
275
      
237
      
190
  
Total revenues net of interest expense after provisions for losses
    
2,905
      
2,824
      
2,852
      
2,725
      
2,667
      
2,627
      
2,971
      
3,090
  
Expenses
                                                                
Marketing, promotion, rewards, Card Member services and other
    
1,489
      
1,440
      
1,469
      
1,297
      
1,425
      
1,274
      
1,369
      
1,348
  
Salaries and employee benefits and other operating expenses
    
682
      
684
      
714
      
728
      
761
      
738
      
(96
)
    
655
  
Total expenses
    
2,171
      
2,124
      
2,183
      
2,025
      
2,186
      
2,012
      
1,273
      
2,003
  
Pretax segment income
    
734
      
700
      
669
      
700
      
481
      
615
      
1,698
      
1,087
  
Income tax provision
    
227
      
225
      
229
      
231
      
130
      
214
      
631
      
393
  
Segment income
  
$
507
    
$
475
    
$
440
    
$
469
    
$
351
    
$
401
    
$
1,067
    
$
694
  
Effective tax rate
    
30.9
%
    
32.1
%
    
34.2
%
    
33.0
%
    
27.0
%
    
34.8
%
    
37.2
%
    
36.2
%
   
Selected Statistical Information
                                                                
Net interest income divided by average Card Member loans (C)
    
10.5
%
    
10.7
%
    
10.0
%
    
9.8
%
    
9.5
%
    
9.4
%
    
9.0
%
    
9.3
%
Net interest yield on average Card Member loans (C)
    
10.5
%
    
10.6
%
    
10.1
%
    
10.0
%
    
9.6
%
    
9.5
%
    
9.1
%
    
9.5
%

 
Please see Appendix II for footnote references
 
-7-

 

U.S. Consumer Services
 
 (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  
Adjustments (Increase/(Decrease))
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
258
    
$
258
    
$
266
    
$
261
    
$
254
    
$
250
    
$
274
    
$
256
  
Interest income
    
2
      
3
      
2
      
2
      
2
      
2
      
2
      
2
  
Interest expense
    
11
      
17
      
18
      
15
      
17
      
23
      
19
      
19
  
Net interest income
    
(9
)
    
(14
)
    
(16
)
    
(13
)
    
(15
)
    
(21
)
    
(17
)
    
(17
)
Total revenues net of interest expense
    
249
      
244
      
250
      
248
      
239
      
229
      
257
      
239
  
Provisions for losses
    
-
      
-
      
-
      
-
      
-
 
    
-
      
-
      
-
  
Total revenues net of interest expense after provisions for losses
    
249
      
244
      
250
      
248
      
239
      
229
      
257
      
239
  
Expenses
                                                                
Marketing, business development, rewards, Card Member services and other
    
266
      
273
      
278
      
267
      
283
      
267
      
290
      
262
  
Salaries and employee benefits and other operating expenses
    
18
      
(21
)
    
(27
)
    
(57
)
    
(20
)
    
(65
)
    
(64
)
    
(56
)
Total expenses
    
284
      
252
      
251
      
210
      
263
      
202
      
226
      
206
  
Pretax segment income
    
(35
)
    
(8
)
    
(1
)
    
38
      
(24
)
    
27
      
31
      
33
  
Income tax provision
    
(12
)
    
(5
)
    
-
      
13
      
(10
)
    
11
      
12
      
12
  
Segment income
  
$
(23
)
  
$
(3
)
  
$
(1
)
  
$
25
    
$
(14
)
  
$
16
    
$
19
    
$
21
  
Effective tax rate
    
(0.1
%)
    
(0.3
%)
    
0.1
%
    
0.1
%
    
(0.7
%)
    
0.2
%
    
-
 
    
-
 
   
Selected Statistical Information
                                                                
Net interest income divided by average Card Member loans (C)
    
-
 
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.2
%)
    
(0.2
%)
    
(0.1
%)
Net interest yield on average Card Member loans (C)
    
-
 
    
-
 
    
-
 
    
-
 
    
(0.1
%)
    
(0.1
%)
    
-
 
    
(0.1
%)


 
Please see Appendix II for footnote references
 
-8-

 

U.S. Consumer Services
 
 (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  
As Recast
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
2,349
    
$
2,234
    
$
2,265
    
$
2,118
    
$
2,181
    
$
2,099
    
$
2,343
    
$
2,285
  
Interest income
    
1,571
      
1,512
      
1,371
      
1,310
      
1,237
      
1,180
      
1,280
      
1,393
  
Interest expense
    
234
      
219
      
189
      
161
      
149
      
148
      
158
      
159
  
Net interest income
    
1,337
      
1,293
      
1,182
      
1,149
      
1,088
      
1,032
      
1,122
      
1,234
  
Total revenues net of interest expense
    
3,686
      
3,527
      
3,447
      
3,267
      
3,269
      
3,131
      
3,465
      
3,519
  
Provisions for losses
    
532
      
459
      
345
      
294
      
363
      
275
      
237
      
190
  
Total revenues net of interest expense after provisions for losses
    
3,154
      
3,068
      
3,102
      
2,973
      
2,906
      
2,856
      
3,228
      
3,329
  
Expenses
                                                                
Marketing, business development, rewards, Card Member services and other
    
1,755
      
1,713
      
1,747
      
1,564
      
1,708
      
1,541
      
1,659
      
1,610
  
Salaries and employee benefits and other operating expenses
    
700
      
663
      
687
      
671
      
741
      
673
      
(160
)
    
599
  
Total expenses
    
2,455
      
2,376
      
2,434
      
2,235
      
2,449
      
2,214
      
1,499
      
2,209
  
Pretax segment income
    
699
      
692
      
668
      
738
      
457
      
642
      
1,729
      
1,120
  
Income tax provision
    
215
      
220
      
229
      
244
      
120
      
225
      
643
      
405
  
Segment income
  
$
484
    
$
472
    
$
439
    
$
494
    
$
337
    
$
417
    
$
1,086
    
$
715
  
Effective tax rate
    
30.8
%
    
31.8
%
    
34.3
%
    
33.1
%
    
26.3
%
    
35.0
%
    
37.2
%
    
36.2
%
   
Selected Statistical Information
                                                                
Net interest income divided by average Card Member loans (C)
    
10.5
%
    
10.6
%
    
9.9
%
    
9.7
%
    
9.4
%
    
9.2
%
    
8.8
%
    
9.2
%
Net interest yield on average Card Member loans (C)
    
10.5
%
    
10.6
%
    
10.1
%
    
10.0
%
    
9.5
%
    
9.4
%
    
9.1
%
    
9.4
%


 
Please see Appendix II for footnote references
 
-9-
 
 
 
International Consumer and Network Services
 
(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
  
As Reported
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
1,333
    
$
1,277
    
$
1,247
    
$
1,195
    
$
1,198
    
$
1,205
    
$
1,242
    
$
1,140
  
Interest income
    
277
      
271
      
246
      
235
      
230
      
231
      
234
      
227
  
Interest expense
    
73
      
65
      
60
      
53
      
52
      
55
      
58
      
54
  
Net interest income
    
204
      
206
      
186
      
182
      
178
      
176
      
176
      
173
  
Total revenues net of interest expense
    
1,537
      
1,483
      
1,433
      
1,377
      
1,376
      
1,381
      
1,418
      
1,313
  
Provisions for losses
    
111
      
106
      
84
      
66
      
92
      
84
      
78
      
71
  
Total revenues net of interest expense after provisions for losses
    
1,426
      
1,377
      
1,349
      
1,311
      
1,284
      
1,297
      
1,340
      
1,242
  
Expenses
                                                                
Marketing, promotion, rewards, Card Member services and other
    
688
      
587
      
561
      
505
      
642
      
554
      
500
      
481
  
Salaries and employee benefits and other operating expenses
    
519
      
483
      
513
      
514
      
560
      
535
      
567
      
506
  
Total expenses
    
1,207
      
1,070
      
1,074
      
1,019
      
1,202
      
1,089
      
1,067
      
987
  
Pretax segment income
    
219
      
307
      
275
      
292
      
82
      
208
      
273
      
255
  
Income tax provision (benefit)
    
20
      
21
      
66
      
74
      
(2
)
    
53
      
45
      
67
  
Segment income
  
$
199
    
$
286
    
$
209
    
$
218
    
$
84
    
$
155
    
$
228
    
$
188
  
Effective tax rate
    
9.1
%
    
6.8
%
    
24.0
%
    
25.3
%
    
(2.4
%)
    
25.5
%
    
16.5
%
    
26.3
%
   
Selected Statistical Information
      
Net interest income divided by average Card Member loans (C)
    
10.1
%
    
11.0
%
    
10.5
%
    
10.6
%
    
10.5
%
    
10.5
%
    
10.4
%
    
10.3
%
Net interest yield on average Card Member loans (C)
    
10.8
%
    
11.6
%
    
11.2
%
    
11.1
%
    
11.0
%
    
11.2
%
    
10.8
%
    
10.8
%


Please see Appendix II for footnote references
 
-10-

 


International Consumer and Network Services
 
(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  
Adjustments (Increase/(Decrease))
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
212
    
$
214
    
$
223
    
$
205
    
$
231
    
$
234
    
$
215
    
$
240
  
Interest income
    
1
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Interest expense
    
3
      
1
      
2
      
1
      
2
      
3
      
1
      
1
  
Net interest income
    
(2
)
    
(1
)
    
(2
)
    
(1
)
    
(2
)
    
(3
)
    
(1
)
    
(1
)
Total revenues net of interest expense
    
210
      
213
      
221
      
204
      
229
      
231
      
214
      
239
  
Provisions for losses
    
-
      
-
      
-
 
    
-
      
-
 
    
-
      
-
      
-
  
Total revenues net of interest expense after provisions for losses
    
210
      
213
      
221
      
204
      
229
      
231
      
214
      
239
  
Expenses
                                                                
Marketing, business development, rewards, Card Member services and other
    
251
      
242
      
241
      
221
      
279
      
251
      
277
      
250
  
Salaries and employee benefits and other operating expenses
    
(58
)
    
(64
)
    
(73
)
    
(73
)
    
(51
)
    
(63
)
    
(59
)
    
(53
)
Total expenses
    
193
      
178
      
168
      
148
      
228
      
188
      
218
      
197
  
Pretax segment income
    
17
      
35
      
53
      
56
      
1
      
43
      
(4
)
    
42
  
Income tax provision (benefit)
    
7
      
13
      
21
      
22
      
-
      
16
      
(2
)
    
15
  
Segment income
  
$
10
    
$
22
    
$
32
    
$
34
    
$
1
    
$
27
    
$
(2
)
  
$
27
  
Effective tax rate
    
2.3
%
    
3.1
%
    
2.5
%
    
2.3
%
    
-
 
    
2.0
%
    
(0.5
%)
    
1.3
%
   
Selected Statistical Information
      
Net interest income divided by average Card Member loans (C)
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.2
%)
    
(0.1
%)
    
-
 
Net interest yield on average Card Member loans (C)
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 


 
Please see Appendix II for footnote references
 
-11-

 


International Consumer and Network Services
 
(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)

 
                                                
 
  
As Recast
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
1,545
    
$
1,491
    
$
1,470
    
$
1,400
    
$
1,429
    
$
1,439
    
$
1,457
    
$
1,380
  
Interest income
    
278
      
271
      
246
      
235
      
230
      
231
      
234
      
227
  
Interest expense
    
76
      
66
      
62
      
54
      
54
      
58
      
59
      
55
  
Net interest income
    
202
      
205
      
184
      
181
      
176
      
173
      
175
      
172
  
Total revenues net of interest expense
    
1,747
      
1,696
      
1,654
      
1,581
      
1,605
      
1,612
      
1,632
      
1,552
  
Provisions for losses
    
111
      
106
      
84
      
66
      
92
      
84
      
78
      
71
  
Total revenues net of interest expense after provisions for losses
    
1,636
      
1,590
      
1,570
      
1,515
      
1,513
      
1,528
      
1,554
      
1,481
  
Expenses
                                                                
Marketing, business development, rewards, Card Member services and other
    
939
      
829
      
802
      
726
      
921
      
805
      
777
      
731
  
Salaries and employee benefits and other operating expenses
    
461
      
419
      
440
      
441
      
509
      
472
      
508
      
453
  
Total expenses
    
1,400
      
1,248
      
1,242
      
1,167
      
1,430
      
1,277
      
1,285
      
1,184
  
Pretax segment income
    
236
      
342
      
328
      
348
      
83
      
251
      
269
      
297
  
Income tax provision (benefit)
    
27
      
34
      
87
      
96
      
(2
)
    
69
      
43
      
82
  
Segment income
  
$
209
    
$
308
    
$
241
    
$
252
    
$
85
    
$
182
    
$
226
    
$
215
  
Effective tax rate
    
11.4
%
    
9.9
%
    
26.5
%
    
27.6
%
    
(2.4
%)
    
27.5
%
    
16.0
%
    
27.6
%
   
Selected Statistical Information
      
Net interest income divided by average Card Member loans (C)
    
10.0
%
    
10.9
%
    
10.4
%
    
10.5
%
    
10.4
%
    
10.3
%
    
10.3
%
    
10.3
%
Net interest yield on average Card Member loans (C)
    
10.8
%
    
11.6
%
    
11.2
%
    
11.1
%
    
11.0
%
    
11.2
%
    
10.8
%
    
10.8
%



Please see Appendix II for footnote references
 
-12-
 

 

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

 
  
As Reported
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
2,464
    
$
2,360
    
$
2,368
    
$
2,271
    
$
2,297
    
$
2,240
    
$
2,280
    
$
2,190
  
Interest income
    
357
      
351
      
334
      
319
      
296
      
282
      
310
      
321
  
Interest expense
    
158
      
144
      
129
      
109
      
104
      
98
      
104
      
95
  
Net interest income
    
199
      
207
      
205
      
210
      
192
      
184
      
206
      
226
  
Total revenues net of interest expense
    
2,663
      
2,567
      
2,573
      
2,481
      
2,489
      
2,424
      
2,486
      
2,416
  
Provisions for losses
    
188
      
194
      
154
      
208
      
171
      
134
      
139
      
160
  
Total revenues net of interest expense after provisions for losses
    
2,475
      
2,373
      
2,419
      
2,273
      
2,318
      
2,290
      
2,347
      
2,256
  
Expenses
                                                                
Marketing, promotion, rewards, Card Member services and other
    
932
      
905
      
949
      
938
      
983
      
808
      
841
      
766
  
Salaries and employee benefits and other operating expenses
    
719
      
696
      
697
      
705
      
790
      
753
      
596
      
729
  
Total expenses
    
1,651
      
1,601
      
1,646
      
1,643
      
1,773
      
1,561
      
1,437
      
1,495
  
Pretax segment income
    
824
      
772
      
773
      
630
      
545
      
729
      
910
      
761
  
Income tax provision
    
244
      
243
      
273
      
212
      
163
      
263
      
334
      
276
  
Segment income
  
$
580
    
$
529
    
$
500
    
$
418
    
$
382
    
$
466
    
$
576
    
$
485
  
Effective tax rate
    
29.6
%
    
31.5
%
    
35.3
%
    
33.7
%
    
29.9
%
    
36.1
%
    
36.7
%
    
36.3
%
   
Selected Statistical Information
      
Net interest income divided by average Card Member loans (C)
    
7.3
%
    
7.9
%
    
8.0
%
    
8.7
%
    
8.3
%
    
8.3
%
    
8.2
%
    
8.8
%
Net interest yield on average Card Member loans (C)
    
10.5
%
    
10.8
%
    
10.9
%
    
11.1
%
    
10.6
%
    
10.6
%
    
10.3
%
    
10.5
%



Please see Appendix II for footnote references
 
-13-

 

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

 
  
Adjustments (Increase/(Decrease))
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
403
    
$
373
    
$
372
    
$
332
    
$
358
    
$
332
    
$
354
    
$
322
  
Interest income
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Interest expense
    
10
      
15
      
16
      
14
      
16
      
19
      
19
      
17
  
Net interest income
    
(10
)
    
(15
)
    
(16
)
    
(14
)
    
(16
)
    
(19
)
    
(19
)
    
(17
)
Total revenues net of interest expense
    
393
      
358
      
356
      
318
      
342
      
313
      
335
      
305
  
Provisions for losses
    
-
 
    
-
      
-
 
    
-
      
-
 
    
-
      
-
      
-
 
Total revenues net of interest expense after provisions for losses
    
393
      
358
      
356
      
318
      
342
      
313
      
335
      
305
  
Expenses
                                                                
Marketing, business development, rewards, Card Member services and other
    
430
      
407
      
398
      
352
      
399
      
357
      
372
      
339
  
Salaries and employee benefits and other operating expenses
    
17
      
(17
)
    
(11
)
    
(21
)
    
(30
)
    
(65
)
    
(47
)
    
(32
)
Total expenses
    
447
      
390
      
387
      
331
      
369
      
292
      
325
      
307
  
Pretax segment income
    
(54
)
    
(32
)
    
(31
)
    
(13
)
    
(27
)
    
21
      
10
      
(2
)
Income tax provision
    
(20
)
    
(12
)
    
(12
)
    
(4
)
    
(10
)
    
9
      
3
      
(1
)
Segment income
  
$
(34
)
  
$
(20
)
  
$
(19
)
  
$
(9
)
  
$
(17
)
  
$
12
    
$
7
    
$
(1
)
Effective tax rate
    
(0.5
%)
    
(0.3
%)
    
(0.1
%)
    
-
 
    
(0.4
%)
    
0.2
%
    
(0.1
%)
    
(0.1
%)
   
Selected Statistical Information
      
Net interest income divided by average Card Member loans (C)
    
(0.4
%)
    
(0.6
%)
    
(0.6
%)
    
(0.6
%)
    
(0.7
%)
    
(0.8
%)
    
(0.7
%)
    
(0.7
%)
Net interest yield on average Card Member loans (C)
    
-
 
    
-
 
    
(0.1
%)
    
-
 
    
(0.1
%)
    
-
 
    
-
 
    
-
 




Please see Appendix II for footnote references
 
-14-

 

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

 
  
As Recast
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
2,867
    
$
2,733
    
$
2,740
    
$
2,603
    
$
2,655
    
$
2,572
    
$
2,634
    
$
2,512
  
Interest income
    
357
      
351
      
334
      
319
      
296
      
282
      
310
      
321
  
Interest expense
    
168
      
159
      
145
      
123
      
120
      
117
      
123
      
112
  
Net interest income
    
189
      
192
      
189
      
196
      
176
      
165
      
187
      
209
  
Total revenues net of interest expense
    
3,056
      
2,925
      
2,929
      
2,799
      
2,831
      
2,737
      
2,821
      
2,721
  
Provisions for losses
    
188
      
194
      
154
      
208
      
171
      
134
      
139
      
160
  
Total revenues net of interest expense after provisions for losses
    
2,868
      
2,731
      
2,775
      
2,591
      
2,660
      
2,603
      
2,682
      
2,561
  
Expenses
                                                                
Marketing, business development, rewards, Card Member services and other
    
1,362
      
1,312
      
1,347
      
1,290
      
1,382
      
1,165
      
1,213
      
1,105
  
Salaries and employee benefits and other operating expenses
    
736
      
679
      
686
      
684
      
760
      
688
      
549
      
697
  
Total expenses
    
2,098
      
1,991
      
2,033
      
1,974
      
2,142
      
1,853
      
1,762
      
1,802
  
Pretax segment income
    
770
      
740
      
742
      
617
      
518
      
750
      
920
      
759
  
Income tax provision
    
224
      
231
      
261
      
208
      
153
      
272
      
337
      
275
  
Segment income
  
$
546
    
$
509
    
$
481
    
$
409
    
$
365
    
$
478
    
$
583
    
$
484
  
Effective tax rate
    
29.1
%
    
31.2
%
    
35.2
%
    
33.7
%
    
29.5
%
    
36.3
%
    
36.6
%
    
36.2
%
   
Selected Statistical Information
      
Net interest income divided by average Card Member loans (C)
    
6.9
%
    
7.3
%
    
7.4
%
    
8.1
%
    
7.6
%
    
7.5
%
    
7.5
%
    
8.1
%
Net interest yield on average Card Member loans (C)
    
10.5
%
    
10.8
%
    
10.8
%
    
11.1
%
    
10.5
%
    
10.6
%
    
10.3
%
    
10.5
%

 

 
Please see Appendix II for footnote references
 
-15-

 


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

 
  
As Reported
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
1,142
    
$
1,088
    
$
1,086
    
$
1,017
    
$
1,063
    
$
1,044
    
$
1,087
    
$
1,041
  
Interest income
    
-
      
-
      
1
      
-
      
-
      
-
      
1
      
-
  
Interest expense
    
(74
)
    
(65
)
    
(65
)
    
(58
)
    
(57
)
    
(60
)
    
(61
)
    
(59
)
Net interest income
    
74
      
65
      
66
      
58
      
57
      
60
      
62
      
59
  
Total revenues net of interest expense
    
1,216
      
1,153
      
1,152
      
1,075
      
1,120
      
1,104
      
1,149
      
1,100
  
Provisions for losses
    
4
      
8
      
-
      
3
      
4
      
8
      
5
      
8
  
Total revenues net of interest expense after provisions for losses
    
1,212
      
1,145
      
1,152
      
1,072
      
1,116
      
1,096
      
1,144
      
1,092
  
Expenses
                                                                
Marketing, promotion, rewards, Card Member services and other
    
65
      
48
      
37
      
32
      
61
      
55
      
58
      
58
  
Salaries and employee benefits and other operating expenses
    
522
      
580
      
435
      
473
      
499
      
470
      
489
      
463
  
Total expenses
    
587
      
628
      
472
      
505
      
560
      
525
      
547
      
521
  
Pretax segment income
    
625
      
517
      
680
      
567
      
556
      
571
      
597
      
571
  
Income tax provision
    
212
      
149
      
250
      
204
      
187
      
212
      
224
      
214
  
Segment income
  
$
413
    
$
368
    
$
430
    
$
363
    
$
369
    
$
359
    
$
373
    
$
357
  
Effective tax rate
    
33.9
%
    
28.8
%
    
36.8
%
    
36.0
%
    
33.6
%
    
37.1
%
    
37.5
%
    
37.5
%
   
Selected Statistical Information
      
Average discount rate (B)
    
2.40
%
    
2.42
%
    
2.44
%
    
2.45
%
    
2.44
%
    
2.47
%
    
2.43
%
    
2.44
%
 
 

 
Please see Appendix II for footnote references
 
-16-

 

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

 
  
Adjustments (Increase/(Decrease))
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
5
    
$
4
    
$
3
    
$
4
    
$
13
    
$
8
    
$
8
    
$
4
  
Interest income
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Interest expense
    
13
      
14
      
16
      
15
      
22
      
24
      
22
      
22
  
Net interest income
    
(13
)
    
(14
)
    
(16
)
    
(15
)
    
(22
)
    
(24
)
    
(22
)
    
(22
)
Total revenues net of interest expense
    
(8
)
    
(10
)
    
(13
)
    
(11
)
    
(9
)
    
(16
)
    
(14
)
    
(18
)
Provisions for losses
    
-
      
-
      
-
      
-
 
    
-
 
    
-
      
-
      
-
  
Total revenues net of interest expense after provisions for losses
    
(8
)
    
(10
)
    
(13
)
    
(11
)
    
(9
)
    
(16
)
    
(14
)
    
(18
)
Expenses
                                                                
Marketing, business development, rewards, Card Member services and other
    
46
      
43
      
41
      
39
      
74
      
53
      
55
      
50
  
Salaries and employee benefits and other operating expenses
    
(31
)
    
(33
)
    
(35
)
    
(41
)
    
(23
)
    
(29
)
    
(34
)
    
(29
)
Total expenses
    
15
      
10
      
6
      
(2
)
    
51
      
24
      
21
      
21
  
Pretax segment income
    
(23
)
    
(20
)
    
(19
)
    
(9
)
    
(60
)
    
(40
)
    
(35
)
    
(39
)
Income tax provision
    
(9
)
    
(6
)
    
(8
)
    
(3
)
    
(22
)
    
(15
)
    
(13
)
    
(15
)
Segment income
  
$
(14
)
  
$
(14
)
  
$
(11
)
  
$
(6
)
  
$
(38
)
  
$
(25
)
  
$
(22
)
  
$
(24
)
Effective tax rate
    
(0.2
%)
    
-
 
    
(0.2
%)
    
-
 
    
(0.3
%)
    
-
 
    
-
 
    
(0.1
%)
   
Selected Statistical Information
      
Average discount rate (B)
    
(0.03
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)
    
(0.02
%)




Please see Appendix II for footnote references
 
-17-

 

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

 
  
As Recast
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Non-interest revenues
  
$
1,147
    
$
1,092
    
$
1,089
    
$
1,021
    
$
1,076
    
$
1,052
    
$
1,095
    
$
1,045
  
Interest income
    
-
      
-
      
1
      
-
      
-
      
-
      
1
      
-
  
Interest expense
    
(61
)
    
(51
)
    
(49
)
    
(43
)
    
(35
)
    
(36
)
    
(39
)
    
(37
)
Net interest income
    
61
      
51
      
50
      
43
      
35
      
36
      
40
      
37
  
Total revenues net of interest expense
    
1,208
      
1,143
      
1,139
      
1,064
      
1,111
      
1,088
      
1,135
      
1,082
  
Provisions for losses
    
4
      
8
      
-
      
3
      
4
      
8
      
5
      
8
  
Total revenues net of interest expense after provisions for losses
    
1,204
      
1,135
      
1,139
      
1,061
      
1,107
      
1,080
      
1,130
      
1,074
  
Expenses
                                                                
Marketing, business development, rewards, Card Member services and other
    
111
      
91
      
78
      
71
      
135
      
108
      
113
      
108
  
Salaries and employee benefits and other operating expenses
    
491
      
547
      
400
      
432
      
476
      
441
      
455
      
434
  
Total expenses
    
602
      
638
      
478
      
503
      
611
      
549
      
568
      
542
  
Pretax segment income
    
602
      
497
      
661
      
558
      
496
      
531
      
562
      
532
  
Income tax provision
    
203
      
143
      
242
      
201
      
165
      
197
      
211
      
199
  
Segment income
  
$
399
    
$
354
    
$
419
    
$
357
    
$
331
    
$
334
    
$
351
    
$
333
  
Effective tax rate
    
33.7
%
    
28.8
%
    
36.6
%
    
36.0
%
    
33.3
%
    
37.1
%
    
37.5
%
    
37.4
%
   
Selected Statistical Information
      
Average discount rate (B)
    
2.37
%
    
2.40
%
    
2.42
%
    
2.43
%
    
2.42
%
    
2.45
%
    
2.41
%
    
2.42
%
 
 
 
Please see Appendix II for footnote references

-18-



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

 
  
As Reported
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Consolidated
                                                
Net interest income
  
$
1,736
    
$
1,675
    
$
1,530
    
$
1,500
    
$
1,408
    
$
1,334
    
$
1,449
    
$
1,580
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
301
      
315
      
302
      
252
      
238
      
261
      
247
      
238
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
(177
)
    
(174
)
    
(155
)
    
(130
)
    
(94
)
    
(104
)
    
(102
)
    
(103
)
Adjusted net interest income (G)
  
$
1,860
    
$
1,816
    
$
1,677
    
$
1,622
    
$
1,552
    
$
1,491
    
$
1,594
    
$
1,715
  
Average Card Member loans including Held for Sale (billions)
  
$
70.1
    
$
67.1
    
$
65.1
    
$
63.9
    
$
62.6
    
$
60.3
    
$
67.6
    
$
70.8
  
Net interest income divided by average Card Member loans (H)
    
9.9
%
    
10.0
%
    
9.4
%
    
9.4
%
    
9.0
%
    
8.8
%
    
8.6
%
    
8.9
%
Net interest yield on average Card Member loans (I)
    
10.5
%
    
10.7
%
    
10.3
%
    
10.3
%
    
9.9
%
    
9.8
%
    
9.5
%
    
9.7
%
   
U.S. Consumer Services
                                                                
Net interest income
  
$
1,346
    
$
1,307
    
$
1,198
    
$
1,162
    
$
1,103
    
$
1,053
    
$
1,139
    
$
1,251
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
36
      
33
      
28
      
23
      
21
      
20
      
20
      
19
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
(31
)
    
(29
)
    
(23
)
    
(18
)
    
(8
)
    
(6
)
    
(5
)
    
(5
)
Adjusted net interest income (G)
  
$
1,351
    
$
1,311
    
$
1,203
    
$
1,167
    
$
1,116
    
$
1,067
    
$
1,154
    
$
1,265
  
Average Card Member loans including Held for Sale (billions)
  
$
51.1
    
$
49.0
    
$
47.7
    
$
47.2
    
$
46.5
    
$
44.8
    
$
50.8
    
$
53.8
  
Net interest income divided by average Card Member loans (H)
    
10.5
%
    
10.7
%
    
10.0
%
    
9.8
%
    
9.5
%
    
9.4
%
    
9.0
%
    
9.3
%
Net interest yield on average Card Member loans (I)
    
10.5
%
    
10.6
%
    
10.1
%
    
10.0
%
    
9.6
%
    
9.5
%
    
9.1
%
    
9.5
%
   
International Consumer and Network Services
                                                                
Net interest income
  
$
204
    
$
206
    
$
186
    
$
182
    
$
178
    
$
176
    
$
176
    
$
173
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
20
      
17
      
14
      
10
      
11
      
12
      
10
      
11
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
(3
)
    
(4
)
    
(3
)
    
(3
)
    
-
      
-
      
(4
)
    
(3
)
Adjusted net interest income (G)
  
$
221
    
$
219
    
$
197
    
$
189
    
$
189
    
$
188
    
$
182
    
$
181
  
Average Card Member loans (billions)
  
$
8.1
    
$
7.5
    
$
7.1
    
$
6.9
    
$
6.8
    
$
6.7
    
$
6.8
    
$
6.8
  
Net interest income divided by average Card Member loans (H)
    
10.1
%
    
11.0
%
    
10.5
%
    
10.6
%
    
10.5
%
    
10.5
%
    
10.4
%
    
10.3
%
Net interest yield on average Card Member loans (I)
    
10.8
%
    
11.6
%
    
11.2
%
    
11.1
%
    
11.0
%
    
11.2
%
    
10.8
%
    
10.8
%
   
Global Commercial Services
                                                                
Net interest income
  
$
199
    
$
207
    
$
205
    
$
210
    
$
193
    
$
184
    
$
206
    
$
226
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
119
      
108
      
99
      
83
      
81
      
79
      
80
      
72
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
(30
)
    
(29
)
    
(27
)
    
(27
)
    
(26
)
    
(28
)
    
(29
)
    
(28
)
Adjusted net interest income (G)
  
$
288
    
$
286
    
$
277
    
$
266
    
$
248
    
$
235
    
$
257
    
$
270
  
Average Card Member loans including Held for Sale (billions)
  
$
10.9
    
$
10.5
    
$
10.2
    
$
9.7
    
$
9.3
    
$
8.8
    
$
10.0
    
$
10.3
  
Net interest income divided by average Card Member loans (H)
    
7.3
%
    
7.9
%
    
8.0
%
    
8.7
%
    
8.3
%
    
8.3
%
    
8.2
%
    
8.8
%
Net interest yield on average Card Member loans (I)
    
10.5
%
    
10.8
%
    
10.9
%
    
11.1
%
    
10.6
%
    
10.6
%
    
10.3
%
    
10.5
%


 
Please see Appendix II for footnote references
-19-


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

 
  
Adjustments (Increase/(Decrease))
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Consolidated
                                                
Net interest income
  
$
3
    
$
2
    
$
3
    
$
2
    
$
3
    
$
2
    
$
2
    
$
2
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
(4
)
    
(6
)
    
(7
)
    
(5
)
    
(7
)
    
(6
)
    
(9
)
    
(8
)
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
-
      
1
      
-
      
-
      
-
      
-
      
-
      
-
 
Adjusted net interest income (G)
  
$
(1
)
  
$
(3
)
  
$
(4
)
  
$
(3
)
  
$
(4
)
  
$
(4
)
  
$
(7
)
  
$
(6
)
Average Card Member loans including Held for Sale (billions)
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
Net interest income divided by average Card Member loans (H)
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
0.1
%
    
-
 
    
-
 
Net interest yield on average Card Member loans (I)
    
-
 
    
-
 
    
-
 
    
-
 
    
(0.1
%)
    
-
 
    
(0.1
%)
    
-
 
   
U.S. Consumer Services
                                                                
Net interest income
  
$
(9
)
  
$
(14
)
  
$
(16
)
  
$
(13
)
  
$
(15
)
  
$
(21
)
  
$
(17
)
  
$
(17
)
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
9
      
11
      
13
      
11
      
12
      
17
      
12
      
12
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
-
      
-
      
-
      
-
      
-
      
-
      
(1
)
    
-
  
Adjusted net interest income (G)
  
$
-
    
$
(3
)
  
$
(3
)
  
$
(2
)
  
$
(3
)
  
$
(4
)
  
$
(6
)
  
$
(5
)
Average Card Member loans including Held for Sale (billions)
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
 
Net interest income divided by average Card Member loans (H)
    
 
 
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.2
%)
    
(0.2
%)
    
(0.1
%)
Net interest yield on average Card Member loans (I)
    
-
 
    
-
 
    
-
 
    
-
 
    
(0.1
%)
    
(0.1
%)
    
-
 
    
(0.1
%)
   
International Consumer and Network Services
                                                                
Net interest income
  
$
(2
)
  
$
(1
)
  
$
(2
)
  
$
(1
)
  
$
(2
)
  
$
(3
)
  
$
(1
)
  
$
(1
)
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
2
      
1
      
2
      
2
      
2
      
4
      
2
      
1
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
-
      
1
      
-
      
(1
)
    
-
      
-
      
-
      
-
  
Adjusted net interest income (G)
  
$
-
    
$
1
    
$
-
    
$
-
    
$
-
    
$
1
    
$
1
    
$
-
  
Average Card Member loans (billions)
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
 
Net interest income divided by average Card Member loans (H)
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.1
%)
    
(0.2
%)
    
(0.1
%)
    
(0.2
%)
Net interest yield on average Card Member loans (I)
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
   
Global Commercial Services
                                                                
Net interest income
  
$
(10
)
  
$
(15
)
  
$
(16
)
  
$
(14
)
  
$
(17
)
  
$
(19
)
  
$
(19
)
  
$
(17
)
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
9
      
14
      
15
      
13
      
16
      
18
      
17
      
16
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
-
      
-
      
-
      
-
      
(1
)
    
1
      
1
      
(1
)
Adjusted net interest income (G)
  
$
(1
)
  
$
(1
)
  
$
(1
)
  
$
(1
)
  
$
(2
)
  
$
-
    
$
(1
)
  
$
(2
)
Average Card Member loans including Held for Sale (billions)
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
  
Net interest income divided by average Card Member loans (H)
    
(0.4
%)
    
(0.6
%)
    
(0.6
%)
    
(0.6
%)
    
(0.7
%)
    
(0.8
%)
    
(0.7
%)
    
(0.7
%)
Net interest yield on average Card Member loans (I)
    
-
 
    
-
 
    
(0.1
%)
    
-
 
    
(0.1
%)
    
-
 
    
-
 
    
-
 

 
 
Please see Appendix II for footnote references
 
-20-

 

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

 
  
As Recast
  
 
  
Q4'17
    
Q3'17
    
Q2'17
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Consolidated
                                                
Net interest income
  
$
1,739
    
$
1,677
    
$
1,533
    
$
1,502
    
$
1,411
    
$
1,336
    
$
1,451
    
$
1,582
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
297
      
309
      
295
      
247
      
231
      
255
      
238
      
230
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
(177
)
    
(173
)
    
(155
)
    
(130
)
    
(94
)
    
(104
)
    
(102
)
    
(103
)
Adjusted net interest income (G)
  
$
1,859
    
$
1,813
    
$
1,673
    
$
1,619
    
$
1,548
    
$
1,487
    
$
1,587
    
$
1,709
  
Average Card Member loans including Held for Sale (billions)
  
$
70.1
    
$
67.1
    
$
65.1
    
$
63.9
    
$
62.6
    
$
60.3
    
$
67.6
    
$
70.8
  
Net interest income divided by average Card Member loans (H)
    
9.9
%
    
10.0
%
    
9.4
%
    
9.4
%
    
9.0
%
    
8.9
%
    
8.6
%
    
8.9
%
Net interest yield on average Card Member loans (I)
    
10.5
%
    
10.7
%
    
10.3
%
    
10.3
%
    
9.8
%
    
9.8
%
    
9.4
%
    
9.7
%
   
U.S. Consumer Services
                                                                
Net interest income
  
$
1,337
    
$
1,293
    
$
1,182
    
$
1,149
    
$
1,088
    
$
1,032
    
$
1,122
    
$
1,234
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
45
      
44
      
41
      
34
      
33
      
37
      
32
      
31
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
(31
)
    
(29
)
    
(23
)
    
(18
)
    
(8
)
    
(6
)
    
(6
)
    
(5
)
Adjusted net interest income (G)
  
$
1,351
    
$
1,308
    
$
1,200
    
$
1,165
    
$
1,113
    
$
1,063
    
$
1,148
    
$
1,260
  
Average Card Member loans including Held for Sale (billions)
  
$
51.1
    
$
49.0
    
$
47.7
    
$
47.2
    
$
46.5
    
$
44.8
    
$
50.8
    
$
53.8
  
Net interest income divided by average Card Member loans (H)
    
10.5
%
    
10.6
%
    
9.9
%
    
9.7
%
    
9.4
%
    
9.2
%
    
8.8
%
    
9.2
%
Net interest yield on average Card Member loans (I)
    
10.5
%
    
10.6
%
    
10.1
%
    
10.0
%
    
9.5
%
    
9.4
%
    
9.1
%
    
9.4
%
   
International Consumer and Network Services
                                                                
Net interest income
  
$
202
    
$
205
    
$
184
    
$
181
    
$
176
    
$
173
    
$
175
    
$
172
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
22
      
18
      
16
      
12
      
13
      
16
      
12
      
12
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
(3
)
    
(3
)
    
(3
)
    
(4
)
    
-
      
-
      
(4
)
    
(3
)
Adjusted net interest income (G)
  
$
221
    
$
220
    
$
197
    
$
189
    
$
189
    
$
189
    
$
183
    
$
181
  
Average Card Member loans (billions)
  
$
8.1
    
$
7.5
    
$
7.1
    
$
6.9
    
$
6.8
    
$
6.7
    
$
6.8
    
$
6.8
  
Net interest income divided by average Card Member loans (H)
    
10.0
%
    
10.9
%
    
10.4
%
    
10.5
%
    
10.4
%
    
10.3
%
    
10.3
%
    
10.1
%
Net interest yield on average Card Member loans (I)
    
10.8
%
    
11.6
%
    
11.2
%
    
11.1
%
    
11.0
%
    
11.2
%
    
10.8
%
    
10.8
%
   
Global Commercial Services
                                                                
Net interest income
  
$
189
    
$
192
    
$
189
    
$
196
    
$
176
    
$
165
    
$
187
    
$
209
  
Exclude:
                                                                
Interest expense not attributable to the Company's Card Member loan portfolio (E)
    
128
      
122
      
114
      
96
      
97
      
97
      
97
      
88
  
Interest income not attributable to the Company's Card Member loan portfolio (F)
    
(30
)
    
(29
)
    
(27
)
    
(27
)
    
(27
)
    
(27
)
    
(28
)
    
(29
)
Adjusted net interest income (G)
  
$
287
    
$
285
    
$
276
    
$
265
    
$
246
    
$
235
    
$
256
    
$
268
  
Average Card Member loans including Held for Sale (billions)
  
$
10.9
    
$
10.5
    
$
10.2
    
$
9.7
    
$
9.3
    
$
8.8
    
$
10.0
    
$
10.3
  
Net interest income divided by average Card Member loans (H)
    
6.9
%
    
7.3
%
    
7.4
%
    
8.1
%
    
7.6
%
    
7.5
%
    
7.5
%
    
8.1
%
Net interest yield on average Card Member loans (I)
    
10.5
%
    
10.8
%
    
10.8
%
    
11.1
%
    
10.5
%
    
10.6
%
    
10.3
%
    
10.5
%


 
Please see Appendix II for footnote references
 
-21-

 

Appendix II
 
 
 
 
 
(Preliminary)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

All Information in the preceding tables is presented on a basis prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), unless otherwise indicated.  Certain reclassifications of prior period amounts have been made to conform to the current period presentation.  None of the prior period financial information was materially misstated.

(A)
 
Represents net income, less (i) earnings allocated to participating share awards of $2 million, $11 million, $11 million, $10 million, $6 million, $9 million, $17 million and $11 million in Q4'17, Q3'17, Q2'17, Q1'17, Q4'16, Q3'16, Q2'16 and Q1'16, respectively, and full year of $21 million and $43 million for the years ending December 31, 2017 and 2016, respectively; and (ii) dividends on preferred shares of $20 million, $21 million, $19 million, $21 million, $19 million, $21 million, $19 million and $21 million in Q4'17, Q3'17, Q2'17, Q1'17, Q4'16, Q3'16, Q2'16 and Q1'16, respectively, and full year of $81 million and $80 million for the years ending December 31, 2017 and 2016, respectively.
(B)
 
This calculation is generally designed to reflect pricing at merchants accepting general-purpose American Express cards.  It represents the percentage of billed business (generated from both proprietary and GNS Card Member spending) retained by the Company from merchants it acquires, or for merchants acquired by a third party on its behalf, net of amounts retained by such third party.  Effective January 1, 2018, the Company also began including billings volumes related to certain business-to-business products in the calculation of the average discount rate to reflect our expanding business to business product offerings.  Prior periods have been conformed to the current period presentation.
(C)
 
See Appendix I for calculations of net interest yield on average Card Member loans, a non-GAAP measure, and net interest income divided by average Card Member loans, a GAAP measure, and the Company's rationale for presenting net interest yield on average Card Member loans.
(D)
 
Includes reclassification of certain business development expenses from Other expenses to Marketing and business development that are not directly attributable to the adoption of the new revenue recognition guidance.  Total reclassification was $144 million and $6 million for 2017 and 2016 respectively.  Prior periods have been conformed to the current period presentation.
(E)
 
Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(F)
 
Primarily represents interest income attributable to Other loans, interest-bearing deposits and our Travelers Cheque and other stored-value investment portfolio.
(G)
 
Adjusted net interest income, a non-GAAP measure that represents net interest income attributable to our Card Member loans and loans Held For Sale (which includes, on a GAAP basis, interest that is deemed uncollectible), excluding the impact of interest expense and interest income not attributable to our Card Member loans. The Company believes adjusted net interest income is useful to investors because it is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio.
(H)
 
Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans.
(I)
 
Net interest yield on average Card Member loans, a non-GAAP measure that is computed by dividing adjusted net interest income by average loans, computed on an annualized basis.  Reserves and net write-offs related to uncollectible interest are recorded through provisions for losses and are thus not included in the net interest yield calculation.  The Company believes net interest yield on average Card Member loans is useful to investors because it provides a measure of profitability of the Company's Card Member loan portfolio.

 
-22-
 

AMERICAN EXPRESS CO Reports