Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - AMERICAN EXPRESS CO | exhibit99_1.htm |
| 8-K - FORM 8-K OF AMERICAN EXPRESS COMPANY - AMERICAN EXPRESS CO | earnings8kq12018.htm |
EXHIBIT 99.2
|
American Express Company
|
(Preliminary)
|
|
Consolidated Statements of Income
|
|
|
(Millions, except percentages and per share amounts)
|
|
|
|
As Recast
|
|||||||||||||||||||||||
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
YOY % change
|
||||||||||||||||||
|
Non-interest revenues
|
||||||||||||||||||||||||
|
Discount revenue
|
$
|
5,889
|
$
|
6,060
|
$
|
5,700
|
$
|
5,743
|
$
|
5,387
|
9
|
|||||||||||||
|
Net card fees
|
830
|
785
|
786
|
771
|
748
|
11
|
||||||||||||||||||
|
Other fees and commissions
|
781
|
778
|
755
|
746
|
711
|
10
|
||||||||||||||||||
|
Other
|
377
|
344
|
371
|
380
|
361
|
4
|
||||||||||||||||||
|
Total non-interest revenues
|
7,877
|
7,967
|
7,612
|
7,640
|
7,207
|
9
|
||||||||||||||||||
|
Interest income
|
||||||||||||||||||||||||
|
Interest on loans
|
2,326
|
2,205
|
2,131
|
1,950
|
1,862
|
25
|
||||||||||||||||||
|
Interest and dividends on investment securities
|
21
|
21
|
22
|
23
|
23
|
(9
|
)
|
|||||||||||||||||
|
Deposits with banks and other
|
115
|
93
|
91
|
82
|
60
|
92
|
||||||||||||||||||
|
Total interest income
|
2,462
|
2,319
|
2,244
|
2,055
|
1,945
|
27
|
||||||||||||||||||
|
Interest expense
|
||||||||||||||||||||||||
|
Deposits
|
270
|
241
|
213
|
176
|
149
|
81
|
||||||||||||||||||
|
Long-term debt and other
|
351
|
339
|
354
|
346
|
294
|
19
|
||||||||||||||||||
|
Total interest expense
|
621
|
580
|
567
|
522
|
443
|
40
|
||||||||||||||||||
|
Net interest income
|
1,841
|
1,739
|
1,677
|
1,533
|
1,502
|
23
|
||||||||||||||||||
|
Total revenues net of interest expense
|
9,718
|
9,706
|
9,289
|
9,173
|
8,709
|
12
|
||||||||||||||||||
|
Provisions for losses
|
||||||||||||||||||||||||
|
Charge card
|
242
|
205
|
214
|
163
|
213
|
14
|
||||||||||||||||||
|
Card Member loans
|
499
|
596
|
531
|
404
|
337
|
48
|
||||||||||||||||||
|
Other
|
34
|
32
|
24
|
17
|
23
|
48
|
||||||||||||||||||
|
Total provisions for losses
|
775
|
833
|
769
|
584
|
573
|
35
|
||||||||||||||||||
|
Total revenues net of interest expense after provisions for losses
|
8,943
|
8,873
|
8,520
|
8,589
|
8,136
|
10
|
||||||||||||||||||
|
Expenses
|
||||||||||||||||||||||||
|
Marketing and business development (A)
|
1,345
|
1,535
|
1,446
|
1,456
|
1,285
|
5
|
||||||||||||||||||
|
Card Member rewards
|
2,347
|
2,262
|
2,168
|
2,196
|
2,061
|
14
|
||||||||||||||||||
|
Card Member services and other
|
409
|
383
|
351
|
341
|
317
|
29
|
||||||||||||||||||
|
Salaries and employee benefits
|
1,326
|
1,436
|
1,265
|
1,293
|
1,264
|
5
|
||||||||||||||||||
|
Professional services
|
457
|
534
|
494
|
511
|
501
|
(9
|
)
|
|||||||||||||||||
|
Occupancy and equipment
|
520
|
493
|
567
|
484
|
474
|
10
|
||||||||||||||||||
|
Other, net (A)
|
457
|
432
|
398
|
351
|
395
|
16
|
||||||||||||||||||
|
Total expenses
|
6,861
|
7,075
|
6,689
|
6,632
|
6,297
|
9
|
||||||||||||||||||
|
Pretax income
|
2,082
|
1,798
|
1,831
|
1,957
|
1,839
|
13
|
||||||||||||||||||
|
Income tax provision
|
448
|
3,004
|
472
|
613
|
588
|
(24
|
)
|
|||||||||||||||||
|
Net income (loss)
|
$
|
1,634
|
$
|
(1,206
|
)
|
$
|
1,359
|
$
|
1,344
|
$
|
1,251
|
31
|
||||||||||||
|
Net income (loss) attributable to common shareholders (B)
|
$
|
1,600
|
$
|
(1,228
|
)
|
$
|
1,327
|
$
|
1,314
|
$
|
1,220
|
31
|
||||||||||||
|
Effective tax rate
|
21.5
|
%
|
167.1
|
%
|
25.8
|
%
|
31.3
|
%
|
32.0
|
%
|
||||||||||||||
|
|
||||||||||||||||||||||||
|
Earnings Per Common Share
|
||||||||||||||||||||||||
|
Basic
|
||||||||||||||||||||||||
|
Net income (loss) attributable to common shareholders
|
$
|
1.86
|
$
|
(1.42
|
)
|
$
|
1.51
|
$
|
1.48
|
$
|
1.36
|
37
|
||||||||||||
|
Average common shares outstanding
|
859
|
865
|
878
|
890
|
899
|
(4
|
)
|
|||||||||||||||||
|
Diluted
|
||||||||||||||||||||||||
|
Net income (loss) attributable to common shareholders
|
$
|
1.86
|
$
|
(1.42
|
)
|
$
|
1.51
|
$
|
1.47
|
$
|
1.35
|
38
|
||||||||||||
|
Average common shares outstanding
|
861
|
865
|
881
|
893
|
903
|
(5
|
)
|
|||||||||||||||||
|
Cash dividends declared per common share
|
$
|
0.35
|
$
|
0.35
|
$
|
0.35
|
$
|
0.32
|
$
|
0.32
|
9
|
|||||||||||||
|
# - Denotes a variance of more than 100 percent.
|
|
See Appendix III for Footnote References
-1-
|
American Express Company
|
(Preliminary)
|
|
Consolidated Balance Sheets and Related Statistical Information
|
|
|
(Billions, except percentages, per share amounts and where indicated)
|
|
|
|
As Recast
|
|||||||||||||||||||||||
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
YOY % change
|
||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Cash & cash equivalents
|
$
|
31
|
$
|
33
|
$
|
26
|
$
|
30
|
$
|
29
|
7
|
|||||||||||||
|
Card Member receivables, less reserves
|
54
|
54
|
51
|
49
|
47
|
15
|
||||||||||||||||||
|
Card Member Loans, less reserves
|
71
|
72
|
66
|
65
|
62
|
15
|
||||||||||||||||||
|
Investment securities
|
3
|
3
|
3
|
3
|
4
|
(25
|
)
|
|||||||||||||||||
|
Other (C)
|
21
|
19
|
23
|
20
|
19
|
11
|
||||||||||||||||||
|
Total assets
|
$
|
180
|
$
|
181
|
$
|
169
|
$
|
167
|
$
|
161
|
12
|
|||||||||||||
|
Liabilities and Shareholders' Equity
|
||||||||||||||||||||||||
|
Customer deposits
|
$
|
67
|
$
|
64
|
$
|
61
|
$
|
58
|
$
|
54
|
24
|
|||||||||||||
|
Short-term borrowings
|
2
|
3
|
2
|
3
|
4
|
(50
|
)
|
|||||||||||||||||
|
Long-term debt
|
52
|
56
|
49
|
52
|
52
|
-
|
||||||||||||||||||
|
Other (C)
|
39
|
40
|
36
|
33
|
30
|
30
|
||||||||||||||||||
|
Total liabilities
|
160
|
163
|
148
|
146
|
140
|
14
|
||||||||||||||||||
|
Shareholders' Equity
|
20
|
18
|
21
|
21
|
21
|
(5
|
)
|
|||||||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
180
|
$
|
181
|
$
|
169
|
$
|
167
|
$
|
161
|
12
|
|||||||||||||
|
Return on average equity (D)
|
15.2
|
%
|
13.2
|
%
|
22.6
|
%
|
21.7
|
%
|
24.9
|
%
|
||||||||||||||
|
Return on average common equity (D)
|
15.9
|
%
|
13.7
|
%
|
23.9
|
%
|
22.9
|
%
|
26.3
|
%
|
||||||||||||||
|
Book value per common share (dollars)
|
$
|
20.96
|
$
|
19.42
|
$
|
22.43
|
$
|
22.19
|
$
|
21.66
|
(3
|
)
|
||||||||||||
|
# - Denotes a variance of more than 100 percent.
|
|
|
|
|
|
|
|
|
|
See Appendix III for Footnote References
-2-
|
American Express Company
|
(Preliminary)
|
|
Consolidated Capital
|
|
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
|||||||||||||||
|
Shares Outstanding (in millions)
|
||||||||||||||||||||
|
Beginning of period
|
859
|
871
|
885
|
895
|
904
|
|||||||||||||||
|
Repurchase of common shares
|
-
|
(14
|
)
|
(15
|
)
|
(10
|
)
|
(11
|
)
|
|||||||||||
|
Net impact of employee benefit plans and others
|
1
|
2
|
1
|
-
|
2
|
|||||||||||||||
|
End of period
|
860
|
859
|
871
|
885
|
895
|
|||||||||||||||
|
Risk-Based Capital Ratios - Basel III ($ in billions) (E)
|
||||||||||||||||||||
|
Common Equity Tier 1/Risk Weighted Assets (RWA)
|
9.4
|
%
|
9.0
|
%
|
11.9
|
%
|
12.3
|
%
|
12.7
|
%
|
||||||||||
|
Tier 1
|
10.5
|
%
|
10.1
|
%
|
13.0
|
%
|
13.5
|
%
|
13.9
|
%
|
||||||||||
|
Total
|
12.2
|
%
|
11.8
|
%
|
14.7
|
%
|
15.2
|
%
|
15.6
|
%
|
||||||||||
|
Common Equity Tier 1
|
$
|
13.9
|
$
|
13.2
|
$
|
16.4
|
$
|
16.4
|
$
|
16.3
|
||||||||||
|
Tier 1 Capital
|
$
|
15.5
|
$
|
14.7
|
$
|
17.9
|
$
|
18.0
|
$
|
17.8
|
||||||||||
|
Tier 2 Capital
|
$
|
2.4
|
$
|
2.4
|
$
|
2.3
|
$
|
2.3
|
$
|
2.2
|
||||||||||
|
Total Capital
|
$
|
17.9
|
$
|
17.1
|
$
|
20.2
|
$
|
20.3
|
$
|
20.0
|
||||||||||
|
RWA
|
$
|
147.4
|
$
|
145.9
|
$
|
138.0
|
$
|
133.5
|
$
|
128.6
|
||||||||||
|
Tier 1 Leverage
|
8.8
|
%
|
8.6
|
%
|
10.9
|
%
|
11.0
|
%
|
11.5
|
%
|
||||||||||
|
Supplementary Leverage Ratio (SLR) (F)
|
7.6
|
%
|
7.4
|
%
|
9.3
|
%
|
9.4
|
%
|
9.9
|
%
|
||||||||||
|
Average Total Assets to calculate the Tier 1 Leverage Ratio (G)
|
$
|
175.0
|
$
|
171.2
|
$
|
164.6
|
$
|
164.2
|
$
|
155.0
|
||||||||||
|
Total Leverage Exposure to calculate SLR
|
$
|
204.4
|
$
|
198.8
|
$
|
191.7
|
$
|
190.4
|
$
|
180.5
|
||||||||||
See Appendix III for Footnote References
-3-
|
American Express Company
|
|
(Preliminary)
|
|
Selected Card Related Statistical Information
|
|
|
|
(Billions, except percentages and where indicated)
|
|
|
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
YOY % change
|
||||||||||||||||||
|
Card billed business (H)
|
||||||||||||||||||||||||
|
United States
|
$
|
182.5
|
$
|
188.9
|
$
|
176.4
|
$
|
177.6
|
$
|
165.4
|
10
|
|||||||||||||
|
Outside the United States
|
101.3
|
102.5
|
95.5
|
92.0
|
86.9
|
17
|
||||||||||||||||||
|
Worldwide
|
$
|
283.8
|
$
|
291.4
|
$
|
271.9
|
$
|
269.6
|
$
|
252.3
|
12
|
|||||||||||||
|
Proprietary
|
$
|
236.9
|
$
|
242.6
|
$
|
225.3
|
$
|
223.8
|
$
|
208.9
|
13
|
|||||||||||||
|
Global Network Services (GNS)
|
46.9
|
48.8
|
46.6
|
45.8
|
43.4
|
8
|
||||||||||||||||||
|
Worldwide
|
$
|
283.8
|
$
|
291.4
|
$
|
271.9
|
$
|
269.6
|
$
|
252.3
|
12
|
|||||||||||||
|
Total cards-in-force (millions) (I)
|
||||||||||||||||||||||||
|
United States
|
51.3
|
50.0
|
49.5
|
48.9
|
48.2
|
6
|
||||||||||||||||||
|
Outside the United States
|
62.9
|
62.8
|
63.4
|
63.3
|
63.0
|
-
|
||||||||||||||||||
|
Worldwide
|
114.2
|
112.8
|
112.9
|
112.2
|
111.2
|
3
|
||||||||||||||||||
|
Proprietary
|
66.4
|
64.6
|
63.9
|
63.0
|
62.2
|
7
|
||||||||||||||||||
|
GNS
|
47.8
|
48.2
|
49.0
|
49.2
|
49.0
|
(2
|
)
|
|||||||||||||||||
|
Worldwide
|
114.2
|
112.8
|
112.9
|
112.2
|
111.2
|
3
|
||||||||||||||||||
|
Basic cards-in-force (millions) (I)
|
||||||||||||||||||||||||
|
United States
|
40.4
|
39.4
|
39.0
|
38.6
|
38.1
|
6
|
||||||||||||||||||
|
Outside the United States
|
52.4
|
52.2
|
52.7
|
52.6
|
52.2
|
-
|
||||||||||||||||||
|
Worldwide
|
92.8
|
91.6
|
91.7
|
91.2
|
90.3
|
3
|
||||||||||||||||||
|
Average basic Card Member spending (dollars) (J)
|
||||||||||||||||||||||||
|
United States
|
$
|
5,015
|
$
|
5,300
|
$
|
5,018
|
$
|
5,128
|
$
|
4,859
|
3
|
|||||||||||||
|
Outside the United States
|
$
|
3,869
|
$
|
3,918
|
$
|
3,598
|
$
|
3,468
|
$
|
3,283
|
18
|
|||||||||||||
|
Worldwide
|
$
|
4,677
|
$
|
4,890
|
$
|
4,596
|
$
|
4,633
|
$
|
4,387
|
7
|
|||||||||||||
|
Card Member loans
|
||||||||||||||||||||||||
|
United States
|
$
|
63.9
|
$
|
64.5
|
$
|
59.9
|
$
|
58.5
|
$
|
56.6
|
13
|
|||||||||||||
|
Outside the United States
|
8.9
|
8.9
|
8.0
|
7.5
|
7.0
|
27
|
||||||||||||||||||
|
Worldwide
|
$
|
72.8
|
$
|
73.4
|
$
|
67.9
|
$
|
66.0
|
$
|
63.6
|
14
|
|||||||||||||
|
|
||||||||||||||||||||||||
|
Average discount rate (K)
|
2.37
|
%
|
2.37
|
%
|
2.40
|
%
|
2.42
|
%
|
2.43
|
%
|
||||||||||||||
|
Average fee per card (dollars) (J)
|
$
|
51
|
$
|
49
|
$
|
49
|
$
|
49
|
$
|
48
|
6
|
|||||||||||||
|
# - Denotes a variance of 100 percent or more.
|
See Appendix III for Footnote References
-4-
|
American Express Company
|
(Preliminary)
|
|
Selected Credit Related Statistical Information
|
|
|
(Billions, except percentages and where indicated)
|
|
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
YOY % change
|
||||||||||||||||||
|
Worldwide Card Member receivables
|
||||||||||||||||||||||||
|
Total receivables
|
$
|
54.2
|
$
|
54.0
|
$
|
51.5
|
$
|
49.4
|
$
|
47.6
|
14
|
|||||||||||||
|
Loss reserves (millions):
|
||||||||||||||||||||||||
|
Beginning balance
|
$
|
521
|
$
|
512
|
$
|
475
|
$
|
491
|
$
|
467
|
12
|
|||||||||||||
|
Provisions (L)
|
242
|
205
|
214
|
163
|
213
|
14
|
||||||||||||||||||
|
Net write-offs (M)
|
(199
|
)
|
(188
|
)
|
(175
|
)
|
(179
|
)
|
(194
|
)
|
3
|
|||||||||||||
|
Other (N)
|
1
|
(8
|
)
|
(2
|
)
|
-
|
5
|
(80
|
)
|
|||||||||||||||
|
Ending balance
|
$
|
565
|
$
|
521
|
$
|
512
|
$
|
475
|
$
|
491
|
15
|
|||||||||||||
|
% of receivables
|
1.0
|
%
|
1.0
|
%
|
1.0
|
%
|
1.0
|
%
|
1.0
|
%
|
||||||||||||||
|
Net write-off rate, excluding Global Corporate Payments (GCP) (principal only) (O)
|
1.6
|
%
|
1.5
|
%
|
1.5
|
%
|
1.5
|
%
|
1.7
|
%
|
||||||||||||||
|
Net write-off rate, excluding GCP (principal and fees) (O)
|
1.8
|
%
|
1.6
|
%
|
1.7
|
%
|
1.7
|
%
|
2.0
|
%
|
||||||||||||||
|
30+ days past due as a % of total, excluding GCP
|
1.5
|
%
|
1.4
|
%
|
1.3
|
%
|
1.3
|
%
|
1.5
|
%
|
||||||||||||||
|
GCP Net loss ratio (as a % of charge volume) (P)
|
0.10
|
%
|
0.11
|
%
|
0.09
|
%
|
0.10
|
%
|
0.11
|
%
|
||||||||||||||
|
GCP 90+ days past billing as a % of total (P)
|
0.8
|
%
|
0.9
|
%
|
0.9
|
%
|
0.8
|
%
|
0.7
|
%
|
||||||||||||||
|
Worldwide Card Member loans
|
||||||||||||||||||||||||
|
Total loans
|
$
|
72.8
|
$
|
73.4
|
$
|
67.9
|
$
|
66.0
|
$
|
63.6
|
14
|
|||||||||||||
|
Loss reserves (millions):
|
||||||||||||||||||||||||
|
Beginning balance
|
$
|
1,706
|
$
|
1,502
|
$
|
1,320
|
$
|
1,248
|
$
|
1,223
|
39
|
|||||||||||||
|
Provisions (L)
|
499
|
596
|
531
|
404
|
337
|
48
|
||||||||||||||||||
|
Net write-offs - principal (M)
|
(358
|
)
|
(325
|
)
|
(299
|
)
|
(285
|
)
|
(272
|
)
|
32
|
|||||||||||||
|
Net write-offs - interest and fees (M)
|
(71
|
)
|
(64
|
)
|
(57
|
)
|
(55
|
)
|
(51
|
)
|
39
|
|||||||||||||
|
Other (N)
|
10
|
(3
|
)
|
7
|
8
|
11
|
(9
|
)
|
||||||||||||||||
|
Ending balance
|
$
|
1,786
|
$
|
1,706
|
$
|
1,502
|
$
|
1,320
|
$
|
1,248
|
43
|
|||||||||||||
|
Ending reserves - principal
|
$
|
1,691
|
$
|
1,622
|
$
|
1,427
|
$
|
1,247
|
$
|
1,179
|
43
|
|||||||||||||
|
Ending reserves - interest and fees
|
$
|
95
|
$
|
84
|
$
|
75
|
$
|
73
|
$
|
69
|
38
|
|||||||||||||
|
% of loans
|
2.5
|
%
|
2.3
|
%
|
2.2
|
%
|
2.0
|
%
|
2.0
|
%
|
||||||||||||||
|
% of past due
|
174
|
%
|
177
|
%
|
174
|
%
|
167
|
%
|
158
|
%
|
||||||||||||||
|
Average loans
|
$
|
72.7
|
$
|
70.1
|
$
|
67.1
|
$
|
65.1
|
$
|
63.9
|
14
|
|||||||||||||
|
Net write-off rate (principal only) (O)
|
2.0
|
%
|
1.8
|
%
|
1.8
|
%
|
1.8
|
%
|
1.7
|
%
|
||||||||||||||
|
Net write-off rate (principal, interest and fees) (O)
|
2.4
|
%
|
2.2
|
%
|
2.1
|
%
|
2.1
|
%
|
2.0
|
%
|
||||||||||||||
|
30+ days past due loans as a % of total
|
1.4
|
%
|
1.3
|
%
|
1.3
|
%
|
1.2
|
%
|
1.2
|
%
|
||||||||||||||
|
Net interest income divided by average Card Member loans (Q)
|
10.1
|
%
|
9.9
|
%
|
10.0
|
%
|
9.4
|
%
|
9.4
|
%
|
||||||||||||||
|
Net interest yield on average Card Member loans (Q)
|
10.8
|
%
|
10.5
|
%
|
10.7
|
%
|
10.3
|
%
|
10.3
|
%
|
||||||||||||||
|
# - Denotes a variance of 100 percent or more.
|
See Appendix III for Footnote References
-5-
|
American Express Company
|
(Preliminary)
|
|||
|
Selected Income Statement Information by Segment
|
|
|||
|
(Millions)
|
|
|
|
|
|
|
U.S. Consumer Services
|
International Consumer and Network Services
|
Global Commercial Services
|
Global Merchant Services
|
Corporate and Other
|
Consolidated
|
||||||||||||||||||
|
|
(USCS)
|
(ICNS)
|
(GCS)
|
(GMS)
|
||||||||||||||||||||
|
Q1'18
|
||||||||||||||||||||||||
|
Non-interest revenues
|
$
|
2,294
|
$
|
1,551
|
$
|
2,838
|
$
|
1,110
|
$
|
84
|
$
|
7,877
|
||||||||||||
|
Interest income
|
1,656
|
294
|
377
|
-
|
135
|
2,462
|
||||||||||||||||||
|
Interest expense
|
253
|
78
|
171
|
(63
|
)
|
182
|
621
|
|||||||||||||||||
|
Total revenues net of interest expense
|
3,697
|
1,767
|
3,044
|
1,173
|
37
|
9,718
|
||||||||||||||||||
|
Total provision
|
423
|
108
|
240
|
5
|
(1
|
)
|
775
|
|||||||||||||||||
|
Total revenues net of interest expense after provisions for losses
|
3,274
|
1,659
|
2,804
|
1,168
|
38
|
8,943
|
||||||||||||||||||
|
Marketing, business development, rewards, Card Member services and other
|
1,771
|
857
|
1,373
|
74
|
26
|
4,101
|
||||||||||||||||||
|
Salaries and employee benefits, and other operating expenses
|
690
|
432
|
714
|
440
|
484
|
2,760
|
||||||||||||||||||
|
Pretax income (loss)
|
813
|
370
|
717
|
654
|
(472
|
)
|
2,082
|
|||||||||||||||||
|
Income tax provision (benefit)
|
173
|
79
|
165
|
182
|
(151
|
)
|
448
|
|||||||||||||||||
|
Net income (loss)
|
640
|
291
|
552
|
472
|
(321
|
)
|
1,634
|
|||||||||||||||||
|
Q1'17 (As Recast)
|
||||||||||||||||||||||||
|
Non-interest revenues
|
$
|
2,118
|
$
|
1,400
|
$
|
2,603
|
$
|
1,021
|
$
|
65
|
$
|
7,207
|
||||||||||||
|
Interest income
|
1,310
|
235
|
319
|
-
|
81
|
1,945
|
||||||||||||||||||
|
Interest expense
|
161
|
54
|
123
|
(43
|
)
|
148
|
443
|
|||||||||||||||||
|
Total revenues net of interest expense
|
3,267
|
1,581
|
2,799
|
1,064
|
(2
|
)
|
8,709
|
|||||||||||||||||
|
Total provision
|
294
|
66
|
208
|
3
|
2
|
573
|
||||||||||||||||||
|
Total revenues net of interest expense after provisions for losses
|
2,973
|
1,515
|
2,591
|
1,061
|
(4
|
)
|
8,136
|
|||||||||||||||||
|
Marketing, business development, rewards, Card Member services and other
|
1,564
|
726
|
1,290
|
71
|
12
|
3,663
|
||||||||||||||||||
|
Salaries and employee benefits, and other operating expenses
|
671
|
441
|
684
|
432
|
406
|
2,634
|
||||||||||||||||||
|
Pretax income (loss)
|
738
|
348
|
617
|
558
|
(422
|
)
|
1,839
|
|||||||||||||||||
|
Income tax provision (benefit)
|
244
|
96
|
208
|
201
|
(161
|
)
|
588
|
|||||||||||||||||
|
Net income (loss)
|
494
|
252
|
409
|
357
|
(261
|
)
|
1,251
|
|||||||||||||||||
|
YOY % change
|
||||||||||||||||||||||||
|
Non-interest revenues
|
8
|
11
|
9
|
9
|
29
|
9
|
||||||||||||||||||
|
Interest income
|
26
|
25
|
18
|
-
|
67
|
27
|
||||||||||||||||||
|
Interest expense
|
57
|
44
|
39
|
47
|
23
|
40
|
||||||||||||||||||
|
Total revenues net of interest expense
|
13
|
12
|
9
|
10
|
#
|
12
|
||||||||||||||||||
|
Total provision
|
44
|
64
|
15
|
67
|
#
|
35
|
||||||||||||||||||
|
Total revenues net of interest expense after provisions for losses
|
10
|
10
|
8
|
10
|
#
|
10
|
||||||||||||||||||
|
Marketing, business development, rewards, Card Member services and other
|
13
|
18
|
6
|
4
|
#
|
12
|
||||||||||||||||||
|
Salaries and employee benefits, and other operating expenses
|
3
|
(2
|
)
|
4
|
2
|
19
|
5
|
|||||||||||||||||
|
Pretax income (loss)
|
10
|
6
|
16
|
17
|
12
|
13
|
||||||||||||||||||
|
Income tax provision (benefit)
|
(29
|
)
|
(18
|
)
|
(21
|
)
|
(9
|
)
|
(6
|
)
|
(24
|
)
|
||||||||||||
|
Net income (loss)
|
30
|
15
|
35
|
32
|
23
|
31
|
||||||||||||||||||
|
# - Denotes a variance of 100 percent or more.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Appendix III for Footnote References
-6-
|
American Express Company
|
(Preliminary)
|
|
Billed Business Growth Trend
|
|
|
YOY % change
|
|||||||||||||||||||||||||||||||||||||||
|
|
Reported
|
FX-Adjusted (R)
|
||||||||||||||||||||||||||||||||||||||
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
||||||||||||||||||||||||||||||
|
Worldwide (S)
|
||||||||||||||||||||||||||||||||||||||||
|
Total Billed Business
|
12
|
%
|
11
|
%
|
8
|
%
|
-
|
(1
|
%)
|
10
|
%
|
9
|
%
|
8
|
%
|
1
|
%
|
-
|
||||||||||||||||||||||
|
Proprietary billed business
|
13
|
11
|
9
|
(1
|
)
|
(2
|
)
|
11
|
10
|
9
|
-
|
(2
|
)
|
|||||||||||||||||||||||||||
|
GNS billed business (T)
|
8
|
9
|
4
|
5
|
7
|
3
|
6
|
4
|
5
|
6
|
||||||||||||||||||||||||||||||
|
Airline-related volume (9% of Q1'18 worldwide billed business)
|
10
|
7
|
5
|
1
|
1
|
6
|
4
|
3
|
1
|
2
|
||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
|
United States (S)
|
||||||||||||||||||||||||||||||||||||||||
|
Billed Business
|
10
|
8
|
7
|
(4
|
)
|
(6
|
)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
||||||||||||||||||||||||||||
|
Proprietary consumer card billed business (U)
|
11
|
8
|
7
|
(9
|
)
|
(13
|
)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
||||||||||||||||||||||||||||
|
Proprietary small business and corporate services billed business (V)
|
10
|
9
|
9
|
4
|
2
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
||||||||||||||||||||||||||||||
|
T&E-related volume (27% of Q1'18 U.S. billed business)
|
8
|
6
|
3
|
(3
|
)
|
(5
|
)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
||||||||||||||||||||||||||||
|
Non-T&E-related volume (73% of Q1'18 U.S. billed business)
|
11
|
9
|
8
|
(4
|
)
|
(7
|
)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
||||||||||||||||||||||||||||
|
Airline-related volume (8% of Q1'18 U.S. billed business)
|
7
|
5
|
2
|
(1
|
)
|
(4
|
)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
|
Outside the United States (S)
|
||||||||||||||||||||||||||||||||||||||||
|
Billed Business
|
17
|
15
|
10
|
9
|
12
|
9
|
10
|
9
|
11
|
13
|
||||||||||||||||||||||||||||||
|
Japan, Asia Pacific & Australia ("JAPA") billed business
|
16
|
15
|
8
|
12
|
16
|
10
|
11
|
9
|
13
|
14
|
||||||||||||||||||||||||||||||
|
Latin America & Canada ("LACC") billed business
|
12
|
11
|
10
|
8
|
10
|
11
|
8
|
8
|
9
|
9
|
||||||||||||||||||||||||||||||
|
Europe, Middle East & Africa ("EMEA") billed business
|
20
|
19
|
13
|
7
|
7
|
7
|
10
|
10
|
10
|
12
|
||||||||||||||||||||||||||||||
|
Proprietary consumer card billed business (T)
|
25
|
20
|
15
|
9
|
8
|
16
|
14
|
13
|
12
|
11
|
||||||||||||||||||||||||||||||
|
Proprietary small business and corporate services billed business (V)
|
23
|
19
|
14
|
8
|
13
|
14
|
13
|
11
|
10
|
14
|
||||||||||||||||||||||||||||||
See Appendix III for Footnote References
-7-
|
U.S. Consumer Services
|
|
(Preliminary)
|
|
Selected Income Statement and Statistical Information
|
||
|
(Millions, except percentages)
|
||
|
|
As Recast
|
|||||||||||||||||||||||
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
YOY % change
|
||||||||||||||||||
|
Non-interest revenues
|
$
|
2,294
|
$
|
2,349
|
$
|
2,234
|
$
|
2,265
|
$
|
2,118
|
8
|
|||||||||||||
|
Interest income
|
1,656
|
1,571
|
1,512
|
1,371
|
1,310
|
26
|
||||||||||||||||||
|
Interest expense
|
253
|
234
|
219
|
189
|
161
|
57
|
||||||||||||||||||
|
Net interest income
|
1,403
|
1,337
|
1,293
|
1,182
|
1,149
|
22
|
||||||||||||||||||
|
Total revenues net of interest expense
|
3,697
|
3,686
|
3,527
|
3,447
|
3,267
|
13
|
||||||||||||||||||
|
Provisions for losses
|
423
|
532
|
459
|
345
|
294
|
44
|
||||||||||||||||||
|
Total revenues net of interest expense after provisions for losses
|
3,274
|
3,154
|
3,068
|
3,102
|
2,973
|
10
|
||||||||||||||||||
|
Expenses
|
||||||||||||||||||||||||
|
Marketing, business development, rewards, Card Member services and other
|
1,771
|
1,755
|
1,713
|
1,747
|
1,564
|
13
|
||||||||||||||||||
|
Salaries and employee benefits and other operating expenses
|
690
|
700
|
663
|
687
|
671
|
3
|
||||||||||||||||||
|
Total expenses
|
2,461
|
2,455
|
2,376
|
2,434
|
2,235
|
10
|
||||||||||||||||||
|
Pretax segment income
|
813
|
699
|
692
|
668
|
738
|
10
|
||||||||||||||||||
|
Income tax provision
|
173
|
215
|
220
|
229
|
244
|
(29
|
)
|
|||||||||||||||||
|
Segment income
|
$
|
640
|
$
|
484
|
$
|
472
|
$
|
439
|
$
|
494
|
30
|
|||||||||||||
|
Effective tax rate
|
21.3
|
%
|
30.8
|
%
|
31.8
|
%
|
34.3
|
%
|
33.1
|
%
|
||||||||||||||
|
(Billions, except percentages and where indicated)
|
||||||||||||||||||||||||
|
Card billed business
|
$
|
86.0
|
$
|
91.0
|
$
|
83.7
|
$
|
84.8
|
$
|
77.5
|
11
|
|||||||||||||
|
Total cards-in-force (millions)
|
36.1
|
34.9
|
34.4
|
33.8
|
33.2
|
9
|
||||||||||||||||||
|
Basic cards-in-force (millions)
|
25.8
|
25.0
|
24.6
|
24.2
|
23.7
|
9
|
||||||||||||||||||
|
Average basic Card Member spending (dollars)
|
$
|
3,371
|
$
|
3,672
|
$
|
3,433
|
$
|
3,538
|
$
|
3,297
|
2
|
|||||||||||||
|
Total segment assets
|
$
|
93.8
|
$
|
95.0
|
$
|
89.9
|
$
|
88.5
|
$
|
85.3
|
10
|
|||||||||||||
|
Card Member receivables
|
||||||||||||||||||||||||
|
Total receivables
|
$
|
11.7
|
$
|
13.1
|
$
|
11.2
|
$
|
11.3
|
$
|
10.9
|
7
|
|||||||||||||
|
30+ days past due as a % of total
|
1.3
|
%
|
1.1
|
%
|
1.2
|
%
|
1.1
|
%
|
1.3
|
%
|
||||||||||||||
|
Net write-off rate (principal only) (O)
|
1.3
|
%
|
1.3
|
%
|
1.2
|
%
|
1.2
|
%
|
1.5
|
%
|
||||||||||||||
|
Net write-off rate (principal and fees) (O)
|
1.5
|
%
|
1.4
|
%
|
1.3
|
%
|
1.4
|
%
|
1.7
|
%
|
||||||||||||||
|
Card Member loans
|
||||||||||||||||||||||||
|
Total loans
|
$
|
52.7
|
$
|
53.7
|
$
|
49.3
|
$
|
48.3
|
$
|
46.7
|
13
|
|||||||||||||
|
30+ days past due loans as a % of total
|
1.4
|
%
|
1.3
|
%
|
1.3
|
%
|
1.1
|
%
|
1.2
|
%
|
||||||||||||||
|
Average loans
|
$
|
52.9
|
$
|
51.1
|
$
|
49.0
|
$
|
47.7
|
$
|
47.2
|
12
|
|||||||||||||
|
Net write-off rate (principal only) (O)
|
2.0
|
%
|
1.9
|
%
|
1.8
|
%
|
1.8
|
%
|
1.7
|
%
|
||||||||||||||
|
Net write-off rate (principal, interest and fees) (O)
|
2.4
|
%
|
2.2
|
%
|
2.1
|
%
|
2.1
|
%
|
2.0
|
%
|
||||||||||||||
|
Net interest income divided by average Card Member loans (Q)
|
10.6
|
%
|
10.5
|
%
|
10.6
|
%
|
9.9
|
%
|
9.7
|
%
|
||||||||||||||
|
Net interest yield on average Card Member loans (Q)
|
10.7
|
%
|
10.5
|
%
|
10.6
|
%
|
10.1
|
%
|
10.0
|
%
|
||||||||||||||
|
# - Denotes a variance of 100 percent or more.
|
|
|
|
See Appendix III for Footnote References
-8-
|
International Consumer and Network Services
|
|
(Preliminary)
|
|
Selected Income Statement and Statistical Information
|
||
|
(Millions, except percentages)
|
||
|
|
As Recast
|
|||||||||||||||||||||||
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
YOY % change
|
||||||||||||||||||
|
Non-interest revenues
|
$
|
1,551
|
$
|
1,545
|
$
|
1,491
|
$
|
1,470
|
$
|
1,400
|
11
|
|||||||||||||
|
Interest income
|
294
|
278
|
271
|
246
|
235
|
25
|
||||||||||||||||||
|
Interest expense
|
78
|
76
|
66
|
62
|
54
|
44
|
||||||||||||||||||
|
Net interest income
|
216
|
202
|
205
|
184
|
181
|
19
|
||||||||||||||||||
|
Total revenues net of interest expense
|
1,767
|
1,747
|
1,696
|
1,654
|
1,581
|
12
|
||||||||||||||||||
|
Provisions for losses
|
108
|
111
|
106
|
84
|
66
|
64
|
||||||||||||||||||
|
Total revenues net of interest expense after provisions for losses
|
1,659
|
1,636
|
1,590
|
1,570
|
1,515
|
10
|
||||||||||||||||||
|
Expenses
|
||||||||||||||||||||||||
|
Marketing, business development, rewards, Card Member services and other
|
857
|
939
|
829
|
802
|
726
|
18
|
||||||||||||||||||
|
Salaries and employee benefits, and other operating expenses
|
432
|
461
|
419
|
440
|
441
|
(2
|
)
|
|||||||||||||||||
|
Total expenses
|
1,289
|
1,400
|
1,248
|
1,242
|
1,167
|
10
|
||||||||||||||||||
|
Pretax segment income
|
370
|
236
|
342
|
328
|
348
|
6
|
||||||||||||||||||
|
Income tax provision
|
79
|
27
|
34
|
87
|
96
|
(18
|
)
|
|||||||||||||||||
|
Segment income
|
$
|
291
|
$
|
209
|
$
|
308
|
$
|
241
|
$
|
252
|
15
|
|||||||||||||
|
Effective tax rate
|
21.4
|
%
|
11.4
|
%
|
9.9
|
%
|
26.5
|
%
|
27.6
|
%
|
||||||||||||||
|
(Billions, except percentages and where indicated)
|
||||||||||||||||||||||||
|
Card billed business
|
||||||||||||||||||||||||
|
Proprietary
|
$
|
33.3
|
$
|
33.7
|
$
|
30.5
|
$
|
28.9
|
$
|
26.6
|
25
|
|||||||||||||
|
GNS
|
47.0
|
48.8
|
46.6
|
45.8
|
43.4
|
8
|
||||||||||||||||||
|
Total
|
$
|
80.3
|
$
|
82.5
|
$
|
77.1
|
$
|
74.7
|
$
|
70.0
|
15
|
|||||||||||||
|
Total cards-in-force (millions)
|
||||||||||||||||||||||||
|
Proprietary
|
16.2
|
15.7
|
15.6
|
15.4
|
15.3
|
6
|
||||||||||||||||||
|
GNS
|
47.8
|
48.2
|
49.0
|
49.2
|
49.0
|
(2
|
)
|
|||||||||||||||||
|
Total
|
64.0
|
63.9
|
64.6
|
64.6
|
64.3
|
-
|
||||||||||||||||||
|
Proprietary basic cards-in-force (millions)
|
11.3
|
10.8
|
10.8
|
10.6
|
10.5
|
8
|
||||||||||||||||||
|
Average proprietary basic Card Member spending (dollars)
|
$
|
3,001
|
$
|
3,106
|
$
|
2,840
|
$
|
2,726
|
$
|
2,542
|
18
|
|||||||||||||
|
Total segment assets
|
$
|
42.0
|
$
|
38.8
|
$
|
39.1
|
$
|
37.8
|
$
|
36.1
|
16
|
|||||||||||||
|
Card Member receivables
|
||||||||||||||||||||||||
|
Total receivables
|
$
|
7.1
|
$
|
7.8
|
$
|
6.5
|
$
|
6.0
|
$
|
5.5
|
29
|
|||||||||||||
|
30+ days past due as a % of total
|
1.5
|
%
|
1.3
|
%
|
1.4
|
%
|
1.4
|
%
|
1.5
|
%
|
||||||||||||||
|
Net write-off rate (principal only) (O)
|
2.0
|
%
|
1.8
|
%
|
2.2
|
%
|
1.9
|
%
|
2.1
|
%
|
||||||||||||||
|
Net write-off rate (principal and fees) (O)
|
2.2
|
%
|
1.9
|
%
|
2.4
|
%
|
2.0
|
%
|
2.3
|
%
|
||||||||||||||
|
Card Member loans
|
||||||||||||||||||||||||
|
Total loans
|
$
|
8.7
|
$
|
8.7
|
$
|
7.8
|
$
|
7.2
|
$
|
6.8
|
28
|
|||||||||||||
|
30+ days past due loans as a % of total
|
1.6
|
%
|
1.4
|
%
|
1.6
|
%
|
1.7
|
%
|
1.7
|
%
|
||||||||||||||
|
Average loans
|
$
|
8.6
|
$
|
8.1
|
$
|
7.5
|
$
|
7.1
|
$
|
6.9
|
25
|
|||||||||||||
|
Net write-off rate (principal only) (O)
|
2.1
|
%
|
2.0
|
%
|
2.2
|
%
|
2.0
|
%
|
2.0
|
%
|
||||||||||||||
|
Net write-off rate (principal, interest and fees) (O)
|
2.6
|
%
|
2.4
|
%
|
2.7
|
%
|
2.5
|
%
|
2.5
|
%
|
||||||||||||||
|
Net interest income divided by average Card Member loans (Q)
|
10.0
|
%
|
10.0
|
%
|
10.9
|
%
|
10.4
|
%
|
10.5
|
%
|
||||||||||||||
|
Net interest yield on average Card Member loans (Q)
|
10.9
|
%
|
10.8
|
%
|
11.6
|
%
|
11.2
|
%
|
11.1
|
%
|
||||||||||||||
|
# - Denotes a variance of 100 percent or more.
|
|
|
See Appendix III for Footnote References
-9-
|
Global Commercial Services
|
|
(Preliminary)
|
|
Selected Income Statement and Statistical Information
|
||
|
(Millions, except percentages)
|
||
|
|
As Recast
|
|||||||||||||||||||||||
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
YOY % change
|
||||||||||||||||||
|
Non-interest revenues
|
$
|
2,838
|
$
|
2,867
|
$
|
2,733
|
$
|
2,740
|
$
|
2,603
|
9
|
|||||||||||||
|
Interest income
|
377
|
357
|
351
|
334
|
319
|
18
|
||||||||||||||||||
|
Interest expense
|
171
|
168
|
159
|
145
|
123
|
39
|
||||||||||||||||||
|
Net interest income
|
206
|
189
|
192
|
189
|
196
|
5
|
||||||||||||||||||
|
Total revenues net of interest expense
|
3,044
|
3,056
|
2,925
|
2,929
|
2,799
|
9
|
||||||||||||||||||
|
Provisions for losses
|
240
|
188
|
194
|
154
|
208
|
15
|
||||||||||||||||||
|
Total revenues net of interest expense after provisions for losses
|
2,804
|
2,868
|
2,731
|
2,775
|
2,591
|
8
|
||||||||||||||||||
|
Expenses
|
||||||||||||||||||||||||
|
Marketing, business development, rewards, Card Member services and other
|
1,373
|
1,362
|
1,312
|
1,347
|
1,290
|
6
|
||||||||||||||||||
|
Salaries and employee benefits and other operating expenses
|
714
|
736
|
679
|
686
|
684
|
4
|
||||||||||||||||||
|
Total expenses
|
2,087
|
2,098
|
1,991
|
2,033
|
1,974
|
6
|
||||||||||||||||||
|
Pretax segment income
|
717
|
770
|
740
|
742
|
617
|
16
|
||||||||||||||||||
|
Income tax provision
|
165
|
224
|
231
|
261
|
208
|
(21
|
)
|
|||||||||||||||||
|
Segment income
|
$
|
552
|
$
|
546
|
$
|
509
|
$
|
481
|
$
|
409
|
35
|
|||||||||||||
|
Effective tax rate
|
23.0
|
%
|
29.1
|
%
|
31.2
|
%
|
35.2
|
%
|
33.7
|
%
|
||||||||||||||
|
(Billions, except percentages and where indicated)
|
||||||||||||||||||||||||
|
Card billed business
|
$
|
115.7
|
$
|
116.6
|
$
|
109.7
|
$
|
109.0
|
$
|
102.8
|
13
|
|||||||||||||
|
Total cards-in-force (millions)
|
14.1
|
14.0
|
13.9
|
13.8
|
13.7
|
3
|
||||||||||||||||||
|
Basic cards-in-force (millions)
|
14.1
|
14.0
|
13.9
|
13.8
|
13.7
|
3
|
||||||||||||||||||
|
Average basic Card Member spending (dollars)
|
$
|
8,233
|
$
|
8,356
|
$
|
7,907
|
$
|
7,920
|
$
|
7,533
|
9
|
|||||||||||||
|
|
||||||||||||||||||||||||
|
Total segment assets
|
$
|
57.8
|
$
|
53.9
|
$
|
54.8
|
$
|
53.6
|
$
|
51.5
|
12
|
|||||||||||||
|
Card Member receivables
|
$
|
35.5
|
$
|
33.1
|
$
|
33.8
|
$
|
32.1
|
$
|
31.2
|
14
|
|||||||||||||
|
Card Member loans
|
$
|
11.5
|
$
|
11.1
|
$
|
10.7
|
$
|
10.4
|
$
|
10.0
|
15
|
|||||||||||||
|
Card Member receivables
|
||||||||||||||||||||||||
|
Total receivables - GCP (P)
|
$
|
19.3
|
$
|
17.0
|
$
|
17.9
|
$
|
16.9
|
$
|
16.6
|
16
|
|||||||||||||
|
90+ days past billing as a % of total - GCP (P)
|
0.8
|
%
|
0.9
|
%
|
0.9
|
%
|
0.8
|
%
|
0.7
|
%
|
||||||||||||||
|
Net loss ratio (as a % of charge volume) - GCP (P)
|
0.10
|
%
|
0.11
|
%
|
0.09
|
%
|
0.10
|
%
|
0.11
|
%
|
||||||||||||||
|
Total receivables - Global Small Business Services (GSBS) (W)
|
$
|
16.2
|
$
|
16.1
|
$
|
15.9
|
$
|
15.2
|
$
|
14.6
|
11
|
|||||||||||||
|
30+ days past due as a % of total - GSBS
|
1.8
|
%
|
1.6
|
%
|
1.4
|
%
|
1.4
|
%
|
1.6
|
%
|
||||||||||||||
|
Net write-off rate (principal only) - GSBS (O)
|
1.7
|
%
|
1.5
|
%
|
1.5
|
%
|
1.6
|
%
|
1.8
|
%
|
||||||||||||||
|
Net write-off rate (principal and fees) - GSBS (O)
|
1.9
|
%
|
1.7
|
%
|
1.7
|
%
|
1.8
|
%
|
2.0
|
%
|
||||||||||||||
|
Card Member loans (X)
|
||||||||||||||||||||||||
|
Total loans - GSBS
|
$
|
11.4
|
$
|
11.0
|
$
|
10.7
|
$
|
10.3
|
$
|
10.0
|
14
|
|||||||||||||
|
30+ days past due as a % of total - GSBS
|
1.3
|
%
|
1.2
|
%
|
1.1
|
%
|
1.1
|
%
|
1.2
|
%
|
||||||||||||||
|
Average loans - GSBS
|
$
|
11.1
|
$
|
10.9
|
$
|
10.5
|
$
|
10.1
|
$
|
9.6
|
16
|
|||||||||||||
|
Net write-off rate (principal only) - GSBS (O)
|
1.6
|
%
|
1.6
|
%
|
1.6
|
%
|
1.5
|
%
|
1.6
|
%
|
||||||||||||||
|
Net write-off rate (principal, interest and fees) - GSBS (O)
|
1.9
|
%
|
1.9
|
%
|
1.9
|
%
|
1.8
|
%
|
1.8
|
%
|
||||||||||||||
|
Net interest income divided by average Card Member loans (Q)
|
7.4
|
%
|
6.9
|
%
|
7.3
|
%
|
7.4
|
%
|
8.1
|
%
|
||||||||||||||
|
Net interest yield on average Card Member loans (Q)
|
10.7
|
%
|
10.5
|
%
|
10.8
|
%
|
10.8
|
%
|
11.1
|
%
|
||||||||||||||
|
# - Denotes a variance of 100 percent or more.
|
|
|
|
|
|
|
|
|
|
|
|
|
See Appendix III for Footnote References
-10-
|
Global Merchant Services
|
|
(Preliminary)
|
||||||||||
|
Selected Income Statement and Statistical Information
|
|
|
|
|
|
|
|
|
||||
|
(Millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Recast
|
|||||||||||||||||||||||
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
YOY % change
|
||||||||||||||||||
|
Non-interest revenues
|
$
|
1,110
|
$
|
1,147
|
$
|
1,092
|
$
|
1,089
|
$
|
1,021
|
9
|
|||||||||||||
|
Interest income
|
-
|
-
|
-
|
1
|
-
|
-
|
||||||||||||||||||
|
Interest expense
|
(63
|
)
|
(61
|
)
|
(51
|
)
|
(49
|
)
|
(43
|
)
|
47
|
|||||||||||||
|
Net interest income
|
63
|
61
|
51
|
50
|
43
|
47
|
||||||||||||||||||
|
Total revenues net of interest expense
|
1,173
|
1,208
|
1,143
|
1,139
|
1,064
|
10
|
||||||||||||||||||
|
Provisions for losses
|
5
|
4
|
8
|
-
|
3
|
67
|
||||||||||||||||||
|
Total revenues net of interest expense after provisions for losses
|
1,168
|
1,204
|
1,135
|
1,139
|
1,061
|
10
|
||||||||||||||||||
|
Expenses
|
||||||||||||||||||||||||
|
Marketing, business development, rewards, Card Member services and other
|
74
|
111
|
91
|
78
|
71
|
4
|
||||||||||||||||||
|
Salaries and employee benefits and other operating expenses
|
440
|
491
|
547
|
400
|
432
|
2
|
||||||||||||||||||
|
Total expenses
|
514
|
602
|
638
|
478
|
503
|
2
|
||||||||||||||||||
|
Pretax segment income
|
654
|
602
|
497
|
661
|
558
|
17
|
||||||||||||||||||
|
Income tax provision
|
182
|
203
|
143
|
242
|
201
|
(9
|
)
|
|||||||||||||||||
|
Segment income
|
$
|
472
|
$
|
399
|
$
|
354
|
$
|
419
|
$
|
357
|
32
|
|||||||||||||
|
Effective tax rate
|
27.8
|
%
|
33.7
|
%
|
28.8
|
%
|
36.6
|
%
|
36.0
|
%
|
||||||||||||||
|
Loyalty Coalition revenue
|
$
|
111
|
$
|
121
|
$
|
115
|
$
|
114
|
$
|
102
|
9
|
|||||||||||||
|
(Billions, except percentages and where indicated)
|
||||||||||||||||||||||||
|
Average discount rate (K)
|
2.37
|
%
|
2.37
|
%
|
2.40
|
%
|
2.42
|
%
|
2.43
|
%
|
||||||||||||||
|
Total segment assets
|
$
|
29.3
|
$
|
29.6
|
$
|
28.0
|
$
|
27.4
|
$
|
25.9
|
13
|
|||||||||||||
|
# - Denotes a variance of 100 percent or more.
|
|
|
See Appendix III for Footnote References
-11-
|
American Express Company
|
(Preliminary)
|
|
Appendix I
|
|
|
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE)
|
|
|
(Millions, except percentages)
|
|
|
As Recast
|
||||||||||||||||||||
|
|
For the Twelve Months Ended
|
|||||||||||||||||||
|
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
|||||||||||||||
|
|
2018
|
2017
|
2017
|
2017
|
2017
|
|||||||||||||||
|
ROE
|
||||||||||||||||||||
|
Net income
|
$
|
3,131
|
$
|
2,748
|
$
|
4,763
|
$
|
4,546
|
$
|
5,187
|
||||||||||
|
Average shareholders' equity
|
$
|
20,536
|
$
|
20,857
|
$
|
21,038
|
$
|
20,946
|
$
|
20,829
|
||||||||||
|
Return on average equity (D)
|
15.2
|
%
|
13.2
|
%
|
22.6
|
%
|
21.7
|
%
|
24.9
|
%
|
||||||||||
|
Reconciliation of ROCE
|
||||||||||||||||||||
|
Net income
|
$
|
3,131
|
$
|
2,748
|
$
|
4,763
|
$
|
4,546
|
$
|
5,187
|
||||||||||
|
Preferred shares dividends and related accretion
|
81
|
81
|
80
|
80
|
80
|
|||||||||||||||
|
Earnings allocated to participating share awards and other
|
37
|
21
|
38
|
36
|
42
|
|||||||||||||||
|
Net income attributable to common shareholders
|
$
|
3,013
|
$
|
2,646
|
$
|
4,645
|
$
|
4,430
|
$
|
5,065
|
||||||||||
|
Average shareholders' equity
|
$
|
20,536
|
$
|
20,857
|
$
|
21,038
|
$
|
20,946
|
$
|
20,829
|
||||||||||
|
Average preferred shares
|
1,584
|
1,584
|
1,584
|
1,584
|
1,584
|
|||||||||||||||
|
Average common shareholders' equity
|
$
|
18,952
|
$
|
19,273
|
$
|
19,454
|
$
|
19,362
|
$
|
19,245
|
||||||||||
|
Return on average common equity (D)
|
15.9
|
%
|
13.7
|
%
|
23.9
|
%
|
22.9
|
%
|
26.3
|
%
|
||||||||||
See Appendix III for Footnote References
-12-
|
American Express Company
|
|
(Preliminary)
|
||||||||
|
Appendix II
|
|
|||||||||
|
Net Interest Yield on Average Card Member Loans
|
|
|||||||||
|
(Millions, except percentages and where indicated)
|
|
|
|
|
|
|
|
|
|
|
|
As Recast
|
||||||||||||||||||||
|
|
Q1'18
|
Q4'17
|
Q3'17
|
Q2'17
|
Q1'17
|
|||||||||||||||
|
Consolidated
|
||||||||||||||||||||
|
Net interest income
|
$
|
1,841
|
$
|
1,739
|
$
|
1,677
|
$
|
1,533
|
$
|
1,502
|
||||||||||
|
Exclude:
|
||||||||||||||||||||
|
Interest expense not attributable to the Company's Card Member loan portfolio (Y)
|
302
|
297
|
309
|
295
|
247
|
|||||||||||||||
|
Interest income not attributable to the Company's Card Member loan portfolio (Z)
|
(213
|
)
|
(177
|
)
|
(173
|
)
|
(155
|
)
|
(130
|
)
|
||||||||||
|
Adjusted net interest income (AA)
|
$
|
1,930
|
$
|
1,859
|
$
|
1,813
|
$
|
1,673
|
$
|
1,619
|
||||||||||
|
Average Card Member loans (billions)
|
$
|
72.7
|
$
|
70.1
|
$
|
67.1
|
$
|
65.1
|
$
|
63.9
|
||||||||||
|
Net interest income divided by average Card Member loans (AB)
|
10.1
|
%
|
9.9
|
%
|
10.0
|
%
|
9.4
|
%
|
9.4
|
%
|
||||||||||
|
Net interest yield on average Card Member loans (AC)
|
10.8
|
%
|
10.5
|
%
|
10.7
|
%
|
10.3
|
%
|
10.3
|
%
|
||||||||||
|
U.S. Consumer Services
|
||||||||||||||||||||
|
Net interest income
|
$
|
1,403
|
$
|
1,337
|
$
|
1,293
|
$
|
1,182
|
$
|
1,149
|
||||||||||
|
Exclude:
|
||||||||||||||||||||
|
Interest expense not attributable to the Company's Card Member loan portfolio (Y)
|
37
|
45
|
44
|
41
|
34
|
|||||||||||||||
|
Interest income not attributable to the Company's Card Member loan portfolio (Z)
|
(38
|
)
|
(31
|
)
|
(29
|
)
|
(23
|
)
|
(18
|
)
|
||||||||||
|
Adjusted net interest income (AA)
|
$
|
1,402
|
$
|
1,351
|
$
|
1,308
|
$
|
1,200
|
$
|
1,165
|
||||||||||
|
Average Card Member loans (billions)
|
$
|
52.9
|
$
|
51.1
|
$
|
49.0
|
$
|
47.7
|
$
|
47.2
|
||||||||||
|
Net interest income divided by average Card Member loans (AB)
|
10.6
|
%
|
10.5
|
%
|
10.6
|
%
|
9.9
|
%
|
9.7
|
%
|
||||||||||
|
Net interest yield on average Card Member loans (AC)
|
10.7
|
%
|
10.5
|
%
|
10.6
|
%
|
10.1
|
%
|
10.0
|
%
|
||||||||||
|
International Consumer and Network Services
|
||||||||||||||||||||
|
Net interest income
|
$
|
216
|
$
|
202
|
$
|
205
|
$
|
184
|
$
|
181
|
||||||||||
|
Exclude:
|
||||||||||||||||||||
|
Interest expense not attributable to the Company's Card Member loan portfolio (Y)
|
21
|
22
|
18
|
16
|
12
|
|||||||||||||||
|
Interest income not attributable to the Company's Card Member loan portfolio (Z)
|
(4
|
)
|
(3
|
)
|
(3
|
)
|
(3
|
)
|
(4
|
)
|
||||||||||
|
Adjusted net interest income (AA)
|
$
|
233
|
$
|
221
|
$
|
220
|
$
|
197
|
$
|
189
|
||||||||||
|
Average Card Member loans (billions)
|
$
|
8.6
|
$
|
8.1
|
$
|
7.5
|
$
|
7.1
|
$
|
6.9
|
||||||||||
|
Net interest income divided by average Card Member loans (AB)
|
10.0
|
%
|
10.0
|
%
|
10.9
|
%
|
10.4
|
%
|
10.5
|
%
|
||||||||||
|
Net interest yield on average Card Member loans (AC)
|
10.9
|
%
|
10.8
|
%
|
11.6
|
%
|
11.2
|
%
|
11.1
|
%
|
||||||||||
|
Global Commercial Services
|
||||||||||||||||||||
|
Net interest income
|
$
|
206
|
$
|
189
|
$
|
192
|
$
|
189
|
$
|
196
|
||||||||||
|
Exclude:
|
||||||||||||||||||||
|
Interest expense not attributable to the Company's Card Member loan portfolio (Y)
|
126
|
128
|
122
|
114
|
96
|
|||||||||||||||
|
Interest income not attributable to the Company's Card Member loan portfolio (Z)
|
(36
|
)
|
(30
|
)
|
(29
|
)
|
(27
|
)
|
(27
|
)
|
||||||||||
|
Adjusted net interest income (AA)
|
$
|
296
|
$
|
287
|
$
|
285
|
$
|
276
|
$
|
265
|
||||||||||
|
Average Card Member loans (billions)
|
$
|
11.2
|
$
|
10.9
|
$
|
10.5
|
$
|
10.2
|
$
|
9.7
|
||||||||||
|
Net interest income divided by average Card Member loans (AB)
|
7.4
|
%
|
6.9
|
%
|
7.3
|
%
|
7.4
|
%
|
8.1
|
%
|
||||||||||
|
Net interest yield on average Card Member loans (AC)
|
10.7
|
%
|
10.5
|
%
|
10.8
|
%
|
10.8
|
%
|
11.1
|
%
|
||||||||||
See Appendix III for Footnote References
-13-
|
Appendix III
|
(Preliminary)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Information in the preceding tables is presented on a basis prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), unless otherwise indicated. Certain reclassifications of prior period amounts have been made to conform to the current period presentation. None of the prior period financial information was materially misstated.
|
|
(A)
|
|
Includes reclassification of certain business development expenses from Other expenses to Marketing and business development that are not directly attributable to the adoption of the new revenue recognition guidance. Prior periods have been conformed to the current period presentation.
|
|
(B)
|
|
Represents net income (loss), less (i) earnings allocated to participating share awards of $13 million, $2 million, $11 million, $11 million and $10 million in Q1'18, Q4'17, Q3'17, Q2'17 and Q1'17, respectively; and (ii) dividends on preferred shares of $21 million, $20 million, $21 million, $19 million and $21 million in Q1'18, Q4'17, Q3'17, Q2'17 and Q1'17, respectively.
|
|
(C)
|
|
Within assets, "other" includes the following items as presented in the Company's Consolidated Balance Sheets: Other receivables, Other loans (including merchant financing loans), Premises and equipment and Other assets; and within liabilities, "other" includes the following items: Travelers Cheques and other prepaid products, Accounts payable and Other liabilities.
|
|
(D)
|
|
Return on average equity and return on average common equity are calculated by dividing one year period net income/net income attributable to common shareholders by one year average total shareholders' equity/average common shareholders' equity, respectively. Refer to Appendix I for components of return on average equity and return on average common equity.
|
|
(E)
|
|
Effective January 1, 2018, we have exited the transitional Basel III Reporting and these ratios represent preliminary estimates for the current period as of the date of First Quarter 2018 Earnings Release and may be revised in the Company's 2018 Form 10-Q for period ended March 31, 2018.
|
|
(F)
|
|
The Company is required to calculate a Supplementary Leverage Ratio, which is defined as Tier 1 Capital divided by Total Leverage Exposure. The Total Leverage Exposure reflects average total consolidated assets with adjustments for Tier 1 Capital deductions and includes off-balance sheet derivatives exposures, repo-style transactions and credit equivalents of undrawn commitments that are both conditionally and unconditionally cancellable.
|
|
(G)
|
|
Presented for the purpose of calculating the Tier 1 Leverage Ratio.
|
|
(H)
|
|
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 cobrand portfolios in GNS, from which the Company earns no revenue, is not included. Card billed business is reflected in the United States or outside the United States based on where the issuer is located.
|
|
(I)
|
|
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 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 cobrand Card Member accounts that have no out-of-store spend activity during the prior 12-month period.
|
|
(J)
|
|
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 divided by average worldwide proprietary cards-in-force.
|
|
(K)
|
|
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.
|
|
(L)
|
|
Provisions for principal, interest and/or fee reserve components.
|
|
(M)
|
|
Consists of principal, interest and/or fees, less recoveries.
|
|
(N)
|
|
Other includes foreign currency translation adjustments and other items for all periods.
|
|
(O)
|
|
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.
|
|
(P)
|
|
GCP includes global, large and middle markets corporate accounts.
|
|
(Q)
|
|
See Appendix II for calculations of net interest yield on average Card Member loans, a non-GAAP measure, and net interest income divided by average Card Member loans, a GAAP measure, and the Company's rationale for presenting net interest yield on average Card Member loans.
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(R)
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FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e. assumes the foreign exchange rates used to determine results for Q1'18 apply to the period(s) against which such results are being compared). The Company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the Company's performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.
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(S)
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Captions not designated as "proprietary" or "GNS" include both proprietary and GNS data.
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(T)
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Included in ICNS.
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(U)
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Included in USCS.
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(V)
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Included in GCS.
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(W)
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GSBS includes small business in the U.S. and international small business services.
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(X)
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Effective Q3'17, GSBS loans and associated metrics include small business in the U.S. and international small business services. Prior to Q3'17, due to certain system limitations, international small business services loans and associated credit metrics were reported within the international consumer business, in the ICNS segment, which were insignificant to both ICNS and GCS.
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(Y)
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Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
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(Z)
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Primarily represents interest income attributable to Other loans, interest-bearing deposits and our Travelers Cheque and other stored-value investment portfolio.
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(AA)
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Adjusted net interest income, a non-GAAP measure that represents net interest income attributable to our Card Member loans (which includes, on a GAAP basis, interest that is deemed uncollectible), excluding the impact of interest expense and interest income not attributable to our Card Member loans. The Company believes adjusted net interest income is useful to investors because it represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio.
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(AB)
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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.
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(AC)
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Net interest yield on average Card Member loans, a non-GAAP measure that is computed by dividing adjusted net interest income by average Card Member loans, computed on an annualized basis. Reserves and net write-offs related to uncollectible interest are recorded through provisions for losses and 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.
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