American Express Co 8-K, filed Jan 26, 2021
American Express Co (AXP)
8-K
2021-01-26
For: 2021-01-26
View Original
Added on
April 09, 2026
About this 8-K
American Express Co filed this 8-K on January 26, 2021.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 26, 2021
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices and zip code)
(212 ) 640-2000
(Registrant's telephone number, including area code)
| Not Applicable | ||
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure
The following information is furnished under Item 2.02 – Results of Operations and Financial Condition and Item 7.01 – Regulation FD Disclosure:
On January 26, 2021, American Express Company (the “Company”) issued a press release regarding its financial results for the fourth quarter and full year of 2020. A copy of such press release is attached to this report as Exhibit 99.1. The Company also made available additional information relating to the financial results for the fourth quarter and full year of 2020. Such additional financial information is attached to this report as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit | Description | ||||
| 99.1 | |||||
| 99.2 | |||||
| 104 | The cover page of this Current Report on Form 8-K, formatted as inline XBRL. | ||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMERICAN EXPRESS COMPANY | ||||||||
| (REGISTRANT) | ||||||||
| By: | /s/ Kristina V. Fink | |||||||
| Name: Kristina V. Fink | ||||||||
| Title: Deputy Corporate Secretary | ||||||||
Date: January 26, 2021
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EXHIBIT 99.1
| NEWS RELEASE | NEWS RELEASE | NEWS RELEASE | NEWS RELEASE | ||||||||
FOR IMMEDIATE RELEASE
Media Contacts:
Marina H. Norville, Marina.H.Norville@aexp.com, +1.212.640.2832
Andrew R. Johnson, Andrew.R.Johnson@aexp.com, +1.212.640.8610
Investors/Analysts Contacts:
Vivian Y. Zhou, Vivian.Y.Zhou@aexp.com, +1.212.640.5574
Melanie L. Michel, Melanie.L.Michel@aexp.com, +1.212.640.5574
AMERICAN EXPRESS REPORTS FOURTH-QUARTER REVENUE OF $9.4 BILLION AND
EARNINGS PER SHARE OF $1.76
COMPANY REPORTS FULL YEAR REVENUE OF $36.1 BILLION
AND EARNINGS PER SHARE OF $3.77
(Millions, except percentages and per share amounts)
Quarters Ended December 31, | Percentage Inc/(Dec) | Quarters Ended September 30, | Percentage Inc/(Dec) | Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||
| Total Revenues Net of Interest Expense | $ | 9,351 | $ | 11,365 | (18) | $ | 8,751 | $ | 10,989 | (20) | $ | 36,087 | |||||||||||||||||||||||||||||
| Total Provisions for Credit Losses | $ | (111) | $ | 1,024 | # | $ | 665 | $ | 879 | (24) | $ | 4,730 | |||||||||||||||||||||||||||||
| Net Income | $ | 1,438 | $ | 1,693 | (15) | $ | 1,073 | $ | 1,755 | (39) | $ | 3,135 | |||||||||||||||||||||||||||||
Diluted Earnings Per Common Share 1 | $ | 1.76 | $ | 2.03 | (13) | $ | 1.30 | $ | 2.08 | (38) | $ | 3.77 | |||||||||||||||||||||||||||||
| Average Diluted Common Shares Outstanding | 806 | 816 | (1) | 805 | 827 | (3) | 806 | ||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | |||||||||||||||||||||||||||||||||||||||||
New York – January 26, 2021 - American Express Company (NYSE: AXP) today reported fourth-quarter net income of $1.4 billion, or $1.76 per share, compared with net income of $1.7 billion, or $2.03 per share, a year ago.
“While we are still seeing impacts of the COVID-19 pandemic on our business, trends continued to steadily improve in the fourth quarter,” said Stephen J. Squeri, Chairman and Chief Executive Officer. “Card Member spending has continued to recover, and non-travel and entertainment spend exceeded pre-COVID levels for the second consecutive quarter. We continued to expand our merchant network, as we sustained virtual parity coverage in the United States and added
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more than 3.7 million merchants internationally in 2020. Our disciplined approach to risk management enabled us to maintain our best-in-class credit performance, with fourth-quarter delinquencies and write-off rates at some of the lowest levels we’ve seen in a few years.
“Our progress in managing through the pandemic over the last year confirms the strength of our differentiated business model, which includes a loyal and diverse customer base, a valued brand, our global merchant network, and our integrated payments network. All of this, supported by our resilient colleagues around the world, provides us with a solid foundation as we move into 2021, which we see as a transition year. We will still be managing through the effects of the pandemic, but with an increased focus on maximizing investments in areas that will enable us to rebuild growth momentum. These investments include continuing to enhance value propositions and refreshing premium products in our card businesses; scaling cash flow and supplier payment solutions in our commercial business; continuing to increase merchant coverage globally; and investing heavily in new and expanded digital capabilities across our businesses.
“Today, my confidence in our growth potential over the medium and long term is strong. While we remain cautious about the pace of recovery, we are focused on achieving our aspiration of being back to the original EPS expectations we had for 2020 in 2022, and for the company to be positioned to execute on its financial growth algorithm.”
Fourth-quarter consolidated total revenues net of interest expense were $9.4 billion, down 18 percent from $11.4 billion a year ago. The quarter primarily reflected declines in Card Member spending and the average discount rate compared to the prior year.
Consolidated provisions for credit losses drove a $111 million benefit this quarter, primarily reflecting a reserve release2 of $674 million due to an improving macroeconomic outlook during the quarter and strong credit performance, as well as lower net write-offs.
Consolidated expenses were $7.6 billion, down 9 percent from $8.4 billion a year ago. The decrease primarily reflected lower customer engagement costs due to the decline in Card Member spending and lower usage of travel-related Card Member benefits, partially offset by investments to rebuild growth momentum.
The consolidated effective tax rate was 22.6 percent, up from 14.8 percent a year ago. The increase primarily reflected certain discrete tax benefits in the prior year.
For the full year, the company reported net income of $3.1 billion, or $3.77 per share, compared with net income of $6.8 billion, or $7.99 per share, a year ago.
Revenues net of interest expense for the full year were $36.1 billion, down 17 percent from $43.6 billion a year ago.
Consolidated provisions for credit losses for the full year were $4.7 billion, up 32 percent from $3.6 billion a year ago.
Consolidated expenses for the full year were $27.1 billion, down 14 percent from $31.6 billion a year ago.
Global Consumer Services Group reported fourth-quarter net income of $1.1 billion, compared with $981 million a year ago.
Total revenues net of interest expense were $5.5 billion, down 14 percent from $6.4 billion a year ago. The decrease primarily reflected declines in Card Member spending and net interest income compared to the prior year.
Provisions for credit losses totaled $40 million, compared to $780 million a year ago. The decrease primarily reflected a portion of the previously mentioned reserve release and lower net write-offs.
Total expenses were $4.0 billion, down 10 percent from $4.5 billion a year ago. The decrease primarily reflected lower customer engagement costs due to a decline in Card Member spending and lower usage of travel-related Card Member benefits, partially offset by investments to rebuild growth momentum.
Global Commercial Services reported fourth-quarter net income of $538 million, compared with $550 million a year ago.
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Total revenues net of interest expense were $2.7 billion, down 20 percent from $3.4 billion a year ago, primarily reflecting a decline in Card Member spending.
Provisions for credit losses drove a $164 million benefit, primarily reflecting a portion of the previously mentioned reserve release and lower net write-offs.
Total expenses were $2.2 billion, down 13 percent from $2.6 billion a year ago. The decrease primarily reflected lower client incentives and other customer engagement costs due to a decline in Card Member spending, partially offset by investments to rebuild growth momentum.
Global Merchant and Network Services reported fourth-quarter net income of $208 million, compared with $474 million a year ago.
Total revenues net of interest expense were $1.2 billion, down 21 percent from $1.6 billion a year ago. The decrease reflected declines in Card Member spending and the average discount rate compared to the prior year.
Total expenses were $947 million, down 5 percent from $998 million a year ago, driven by lower network partner payments due to a decline in Card Member spending.
Corporate and Other reported a fourth-quarter net loss of $426 million, compared with a net loss of $312 million a year ago.
________________________________
| 1 | Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards and other items of $9 million and $12 million for the three months ended December 31, 2020 and 2019, respectively, $7 million and $11 million for the three months ended September 30, 2020 and 2019, respectively, and $20 million for the year ended December 31, 2020, and (ii) dividends on preferred shares of $14 million and $20 million for the three months ended December 31, 2020 and 2019, respectively, $16 million and $21 million for the three months ended September 30, 2020 and 2019, respectively and $79 million for the year ended December 31, 2020. | |||||||
| 2 | Reserve release represents the portion of the provisions for credit losses for the period related to increasing or decreasing reserves for credit losses as a result of, among other things, changes in volumes, macroeconomic outlook, portfolio composition and credit quality of portfolios. Reserve release represents the amount by which net write-offs exceed the provisions for credit losses. | |||||||
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About American Express
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.
Key links to products, services and corporate responsibility information: charge and credit cards, business credit cards, travel services, gift cards, prepaid cards, merchant services, Accertify, InAuth, corporate card, business travel, and corporate responsibility.
Source: American Express Company
Location: Global
This earnings release should be read in conjunction with the company’s statistical tables for the fourth quarter 2020, available on the American Express Investor Relations website at http://ir.americanexpress.com and in a Form 8-K furnished today with the Securities and Exchange Commission.
An investor conference call will be held at 8:30 a.m. (ET) today to discuss fourth-quarter and full-year results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned
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American Express Investor Relations website. A replay of the conference call will be available later today at the same website address.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address American Express Company’s current expectations regarding business and financial performance, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:
•the company’s ability to achieve in 2022 its aspiration of being back to the original earnings per common share (EPS) expectations it had for 2020 and for the company to be positioned to execute on its financial growth algorithm, which will depend in part on a recovery in consumer travel and therefore on how soon lockdowns ease, travel restrictions lift and the general public begins to feel comfortable traveling again; discount revenue recovering broadly in-line with billed business; credit performance and reserve levels; identifying attractive investment opportunities that help rebuild growth momentum, product innovation and the pace at which the company winds down its value injection efforts; the company’s ability to control operating expenses and generate operating expense leverage; the effective tax rate remaining consistent with current expectations; and the company’s ability to resume its share repurchase program; any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs;
•the company’s billed business, revenue and EPS growth for 2021 and beyond, which could be impacted by, among other things, uncertainty regarding the continued spread of COVID-19 (including new variants) and severity of the pandemic and the availability and widespread use of effective treatments and vaccines; a further deterioration in global economic and business conditions; consumer and business spending not growing in line with expectations, including T&E spending not rebounding to 2019 levels by the end of 2021; an inability or unwillingness of Card Members to pay amounts owed to the company; insufficient governmental stimulus and relief programs to address the ongoing impact of the pandemic; prolonged measures to contain the spread of COVID-19 (including travel restrictions) or premature easing of such containment measures, both of which could further exacerbate the effects on business activity and the company’s Card Members, partners and merchants; health concerns associated with the pandemic continuing to affect consumer behavior, spending levels and preferences, and travel patterns and demand even after government restrictions are lifted and economies reopen; an inability of the company to effectively manage risk in an uncertain environment; market volatility, changes in capital and credit market conditions and the availability and cost of capital; issues impacting brand perceptions and the company’s reputation; the amount and efficacy of investments in share, scale and relevance; an inability of business partners to meet their obligations to the company and the company’s customers due to slowdowns or disruptions in their businesses, bankruptcy or liquidation, or otherwise; the impact of any future contingencies, including, but not limited to, restructurings, impairments, changes in reserves, legal costs, the imposition of fines or civil money penalties and increases in Card Member reimbursements; and the impact of regulation and litigation, which could affect the profitability of the company’s business activities, limit the company’s ability to pursue business opportunities, require changes to business practices or alter the company’s relationships with partners, merchants and Card Members;
•future credit performance and the amount and timing of future credit reserve builds and releases, which will depend in part on changes in consumer behavior that affect loan and receivable balances (such as paydown and revolve rates) and delinquency and write-off rates; macroeconomic factors such as unemployment rates, GDP and the volume of bankruptcies; the impact of the Current Expected Credit Loss (CECL) methodology; collections capabilities and recoveries of previously written-off loans and receivables; the enrollment in, and effectiveness of, hardship programs and troubled debt restructurings; the availability of government stimulus programs for borrowers; and governmental actions that provide forms of relief with respect to certain loans and fees, such as limiting debt collections efforts and encouraging or requiring extensions, modifications or forbearance;
•net interest income and the growth rate of loans outstanding being higher or lower than current expectations, which will depend on the behavior of Card Members and their actual spending and borrowing patterns; the company’s ability to effectively manage risk and enhance Card Member value propositions; changes in interest rates and the company’s cost of
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funds; credit actions, including line size and other adjustments to credit availability; and the effectiveness of the company’s strategies to capture a greater share of existing Card Members’ spending and borrowings, reduce Card Member attrition and attract new customers;
•the actual amount to be spent on marketing in 2021 and beyond, which will be based in part on continued changes in macroeconomic conditions and business performance; management’s identification and assessment of attractive investment opportunities and the receptivity of Card Members and prospective customers to advertising and customer acquisition initiatives; the pace at which the company winds down its value injections efforts; the company’s ability to balance expense control and investments in the business; and management’s ability to realize efficiencies and optimize investment spending;
•the actual amount to be spent on Card Member rewards and services and business development, and the relationship of these variable customer engagement costs to revenues, which could be impacted by continued changes in macroeconomic conditions and Card Member behavior as it relates to their spending patterns (including the level of spend in bonus categories) and the redemption of rewards and offers (including travel redemptions); the costs related to reward point redemptions; Card Members’ interest in the value propositions offered by the company; further enhancements to product benefits to make them attractive to Card Members, potentially in a manner that is not cost effective; and new and renegotiated contractual obligations with business partners;
•the ability of the company to control its operating expenses and the actual amount the company spends on operating expenses in 2021 and beyond, which could be impacted by, among other things, management’s decision to increase or decrease spending in such areas as technology, business and product development, sales force, premium servicing and digital capabilities depending on overall business performance; the company’s ability to innovate efficient channels of customer interactions, such as chat supported by artificial intelligence; restructuring activity; fraud costs; information security or compliance expenses or consulting, legal and other professional services fees, including as a result of litigation or internal and regulatory reviews; the level of M&A activity and related expenses; the payment of civil money penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; impairments of goodwill or other assets; the impact of changes in foreign currency exchange rates on costs; and higher-than-expected inflation;
•net card fees not growing consistent with current expectations, which could be impacted by, among other things, the further deterioration in macroeconomic conditions impacting the ability and desire of Card Members to pay card fees; higher Card Member attrition rates; Card Members continuing to be attracted to the company’s premium card products and the pace of Card Member acquisition activity; and the company’s inability to address competitive pressures and implement its strategies and business initiatives, including introducing new and enhanced benefits and services that are designed for the current environment;
•a further decline of the average discount rate, including as a result of further changes in the mix of spending by location and industry (including the pace of recovery in T&E spending), merchant negotiations (including merchant incentives, concessions and volume-related pricing discounts), competition, pricing regulation (including regulation of competitors’ interchange rates) and other factors;
•the company’s 2021 tax rate not remaining consistent with current expectations, which could be impacted by, among other things, the company’s geographic mix of income, further changes in tax laws and regulation, unfavorable tax audits and other unanticipated tax items;
•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure that may materially impact the prices charged to merchants that accept American Express cards, competition for new and existing cobrand relationships, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;
•changes affecting the company’s plans regarding the return of capital to shareholders, including resuming its share repurchases in the first quarter of 2021, which will depend on factors such as capital levels and regulatory capital ratios; changes in the stress testing and capital planning process and approval of the company’s capital plans by the Federal Reserve; the company’s results of operations and financial condition; the company’s credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;
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•the company’s ability to increase Card Member acquisition activities, provide additional value to Card Members and refresh its premium products, which will be impacted in part by competition, brand perceptions and reputation, and the ability of the company to develop and market value propositions that appeal to Card Members and new customers and offer attractive services and rewards programs, which will depend in part on ongoing investments in Card Member acquisition efforts, addressing changing customer behaviors, new product innovation and development, and enrollment processes, including through digital channels, and infrastructure to support new products, services and benefits;
•the ability of the company to grow commercial payments, including through cash flow and supplier payment solutions, which will depend in part on competition, the willingness and ability of companies to use such solutions for procurement and other business expenditures, the ability of the company to offer attractive value propositions to potential customers, the company’s ability to enhance and expand its payment and lending solutions, and the company’s ability to integrate Kabbage and re-launch its suite of products;
•the ability of the company to innovate and strengthen its global network, which will depend in part on the ability of the company to update its systems and platforms, the amount the company invests in the network and its ability to make funds available for such investments, and technological developments, including capabilities that allow greater digital integration;
•the possibility that the company will not execute on its plans to expand merchant coverage and improve perceptions of coverage, which will depend in part on the success of the company, OptBlue merchant acquirers and GNS partners in signing merchants to accept American Express, which could be impacted by the value propositions offered by the company to merchants and merchant acquirers for card acceptance, as well as the awareness and willingness of Card Members to use American Express cards at merchants and whether Card Members experience welcome acceptance for American Express cards;
•the ability of the company to introduce new and expanded digital capabilities, which will depend on the company’s success in evolving its products and processes for the digital environment, developing new features in the Amex app and enhancing the company’s digital channels, building partnerships and executing programs with other companies, effectively utilizing artificial intelligence to address servicing and other customer needs, and supporting the use of the company’s products as a means of payment through online and mobile channels, all of which will be impacted by investment levels, new product innovation and development and infrastructure to support new products, services and benefits;
•a failure in or breach of the company’s operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt its operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;
•legal and regulatory developments, which could affect the profitability of the company’s business activities; limit the company’s ability to pursue business opportunities; require changes to business practices or alter the company’s relationships with Card Members, partners, merchants and other third parties, including its ability to continue certain cobrand and agent relationships in the EU; exert further pressure on the average discount rate and GNS volumes; result in increased costs related to regulatory oversight, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or civil money penalties; materially affect capital or liquidity requirements, results of operations or ability to pay dividends; or result in harm to the American Express brand;
•changes in the financial condition and creditworthiness of the company’s business partners, such as bankruptcies, restructurings or consolidations, including of cobrand partners and merchants that represent a significant portion of the company’s business, such as the airline industry, or partners in GNS or financial institutions that the company relies on for routine funding and liquidity, which could materially affect the company’s financial condition or results of operations; and
•factors beyond the company’s control such as resurgences of COVID-19 cases, whether and when populations achieve herd immunity, severe weather conditions, natural and man-made disasters, power loss, disruptions in telecommunications, or terrorism, any of which could significantly affect demand for and spending on American Express cards, delinquency rates, loan and receivable balances and other aspects of the company’s business and results of operations or disrupt its global network systems and ability to process transactions.
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A further description of these uncertainties and other risks can be found in American Express Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2020 and the company’s other reports filed with the Securities and Exchange Commission.
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EXHIBIT 99.2
| American Express Company | (Preliminary) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages and per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YOY % change | YTD'20 | YTD'19 | YOY % change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discount revenue | $ | 5,549 | $ | 4,999 | $ | 4,015 | $ | 5,838 | $ | 6,829 | (19) | $ | 20,401 | $ | 26,167 | (22) | |||||||||||||||||||||||||||||||||||||||||||
| Net card fees | 1,222 | 1,191 | 1,141 | 1,110 | 1,077 | 13 | 4,664 | 4,042 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other fees and commissions | 516 | 478 | 449 | 720 | 832 | (38) | 2,163 | 3,297 | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 167 | 209 | 186 | 312 | 343 | (51) | 874 | 1,430 | (39) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-interest revenues | 7,454 | 6,877 | 5,791 | 7,980 | 9,081 | (18) | 28,102 | 34,936 | (20) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest on loans | 2,236 | 2,266 | 2,368 | 2,909 | 2,934 | (24) | 9,779 | 11,308 | (14) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and dividends on investment securities | 29 | 33 | 27 | 38 | 50 | (42) | 127 | 188 | (32) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits with banks and other | 22 | 25 | 31 | 99 | 101 | (78) | 177 | 588 | (70) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest income | 2,287 | 2,324 | 2,426 | 3,046 | 3,085 | (26) | 10,083 | 12,084 | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 155 | 202 | 260 | 326 | 353 | (56) | 943 | 1,559 | (40) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt and other | 235 | 248 | 282 | 390 | 448 | (48) | 1,155 | 1,905 | (39) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest expense | 390 | 450 | 542 | 716 | 801 | (51) | 2,098 | 3,464 | (39) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 1,897 | 1,874 | 1,884 | 2,330 | 2,284 | (17) | 7,985 | 8,620 | (7) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 9,351 | 8,751 | 7,675 | 10,310 | 11,365 | (18) | 36,087 | 43,556 | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member receivables | (54) | 117 | 355 | 597 | 248 | # | 1,015 | 963 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member loans | 37 | 571 | 969 | 1,876 | 730 | (95) | 3,453 | 2,462 | 40 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | (94) | (23) | 231 | 148 | 46 | # | 262 | 148 | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses | (111) | 665 | 1,555 | 2,621 | 1,024 | # | 4,730 | 3,573 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 9,462 | 8,086 | 6,120 | 7,689 | 10,341 | (9) | 31,357 | 39,983 | (22) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marketing and business development | 1,858 | 1,822 | 1,362 | 1,705 | 1,953 | (5) | 6,747 | 7,125 | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member rewards | 2,296 | 2,004 | 1,349 | 2,392 | 2,722 | (16) | 8,041 | 10,439 | (23) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member services | 307 | 259 | 208 | 456 | 552 | (44) | 1,230 | 2,223 | (45) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 1,566 | 1,408 | 1,349 | 1,395 | 1,623 | (4) | 5,718 | 5,911 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Professional services | 523 | 421 | 406 | 439 | 594 | (12) | 1,789 | 2,091 | (14) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy and equipment | 644 | 577 | 564 | 549 | 599 | 8 | 2,334 | 2,168 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other, net | 410 | 231 | 260 | 301 | 312 | 31 | 1,202 | 1,597 | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 7,604 | 6,722 | 5,498 | 7,237 | 8,355 | (9) | 27,061 | 31,554 | (14) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Pretax income | 1,858 | 1,364 | 622 | 452 | 1,986 | (6) | 4,296 | 8,429 | (49) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax provision | 420 | 291 | 365 | 85 | 293 | 43 | 1,161 | 1,670 | (30) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 1,438 | $ | 1,073 | $ | 257 | $ | 367 | $ | 1,693 | (15) | $ | 3,135 | $ | 6,759 | (54) | |||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common shareholders (A) | $ | 1,415 | $ | 1,050 | $ | 238 | $ | 333 | $ | 1,661 | (15) | $ | 3,036 | $ | 6,631 | (54) | |||||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | 22.6 | % | 21.3 | % | 58.7 | % | 18.8 | % | 14.8 | % | 27.0 | % | 19.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Common Share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 1.76 | $ | 1.31 | $ | 0.29 | $ | 0.41 | $ | 2.04 | (14) | $ | 3.77 | $ | 8.00 | (53) | |||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding | 805 | 804 | 804 | 807 | 814 | (1) | 805 | 828 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 1.76 | $ | 1.30 | $ | 0.29 | $ | 0.41 | $ | 2.03 | (13) | $ | 3.77 | $ | 7.99 | (53) | |||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding | 806 | 805 | 805 | 808 | 816 | (1) | 806 | 830 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared per common share | $ | 0.43 | $ | 0.43 | $ | 0.43 | $ | 0.43 | $ | 0.43 | — | $ | 1.72 | $ | 1.64 | 5 | |||||||||||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references.
1
| American Express Company | (Preliminary) | ||||
| Consolidated Balance Sheets and Related Statistical Information | |||||
| (Billions, except percentages, per share amounts and where indicated) | |||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YOY % change | |||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||
| Cash & cash equivalents (B) | $ | 33 | $ | 36 | $ | 42 | $ | 39 | $ | 24 | 38 | |||||||||||||||||||||||||||
| Card Member receivables, less reserves | 43 | 40 | 37 | 44 | 57 | (25) | ||||||||||||||||||||||||||||||||
| Card Member loans, less reserves | 68 | 64 | 64 | 72 | 85 | (20) | ||||||||||||||||||||||||||||||||
| Investment securities | 22 | 22 | 20 | 5 | 8 | # | ||||||||||||||||||||||||||||||||
| Other (C) | 25 | 25 | 26 | 26 | 24 | 4 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 191 | $ | 187 | $ | 189 | $ | 186 | $ | 198 | (4) | |||||||||||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
| Customer deposits | $ | 87 | $ | 85 | $ | 85 | $ | 78 | $ | 73 | 19 | |||||||||||||||||||||||||||
| Short-term borrowings | 2 | 2 | 2 | 3 | 6 | (67) | ||||||||||||||||||||||||||||||||
| Long-term debt | 43 | 45 | 49 | 53 | 58 | (26) | ||||||||||||||||||||||||||||||||
| Other (C) | 36 | 33 | 32 | 31 | 38 | (5) | ||||||||||||||||||||||||||||||||
| Total liabilities | $ | 168 | $ | 165 | $ | 168 | $ | 165 | $ | 175 | (4) | |||||||||||||||||||||||||||
| Shareholders' Equity | 23 | 22 | 21 | 21 | 23 | — | ||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 191 | $ | 187 | $ | 189 | $ | 186 | $ | 198 | (4) | |||||||||||||||||||||||||||
| Return on average equity (D) | 14.2 | % | 15.3 | % | 18.1 | % | 24.4 | % | 29.6 | % | ||||||||||||||||||||||||||||
| Return on average common equity (D) | 14.9 | % | 15.9 | % | 18.9 | % | 25.6 | % | 31.2 | % | ||||||||||||||||||||||||||||
| Book value per common share (dollars) | $ | 26.58 | $ | 25.19 | $ | 24.19 | $ | 24.13 | $ | 26.51 | — | |||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||
See Appendix IV for footnote references.
2
| American Express Company | (Preliminary) | ||||
| Consolidated Capital | |||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | ||||||||||||||||||||||||||||
| Shares Outstanding (in millions) | ||||||||||||||||||||||||||||||||
| Beginning of period | 805 | 805 | 805 | 810 | 821 | |||||||||||||||||||||||||||
| Repurchase of common shares | — | — | (7) | (11) | ||||||||||||||||||||||||||||
| Net impact of employee benefit plans and others | — | — | — | 2.0 | — | |||||||||||||||||||||||||||
| End of period | 805 | 805 | 805 | 805 | 810 | |||||||||||||||||||||||||||
| Risk-Based Capital Ratios - Basel III ($ in billions) | ||||||||||||||||||||||||||||||||
| Common Equity Tier 1/Risk Weighted Assets (RWA) | 13.5 | % | 13.9 | % | 13.6 | % | 11.9 | % | 10.7 | % | ||||||||||||||||||||||
| Tier 1 | 14.7 | % | 15.1 | % | 14.8 | % | 13.0 | % | 11.6 | % | ||||||||||||||||||||||
| Total | 16.2 | % | 16.7 | % | 16.5 | % | 14.6 | % | 13.2 | % | ||||||||||||||||||||||
| Common Equity Tier 1 | $ | 18.7 | $ | 18.3 | $ | 17.6 | $ | 17.3 | $ | 18.1 | ||||||||||||||||||||||
| Tier 1 Capital | $ | 20.3 | $ | 19.9 | $ | 19.2 | $ | 19.0 | $ | 19.6 | ||||||||||||||||||||||
| Tier 2 Capital | $ | 2.1 | $ | 2.2 | $ | 2.1 | $ | 2.3 | $ | 2.6 | ||||||||||||||||||||||
| Total Capital | $ | 22.4 | $ | 22.1 | $ | 21.3 | $ | 21.3 | $ | 22.2 | ||||||||||||||||||||||
| RWA | $ | 138.3 | $ | 131.9 | $ | 129.3 | $ | 146.2 | $ | 168.5 | ||||||||||||||||||||||
| Tier 1 Leverage | 11.0 | % | 10.8 | % | 10.4 | % | 10.0 | % | 10.2 | % | ||||||||||||||||||||||
| Average Total Assets to calculate the Tier 1 Leverage Ratio (E) | $ | 185.1 | $ | 185.3 | $ | 184.3 | $ | 190.1 | $ | 192.3 | ||||||||||||||||||||||
See Appendix IV for footnote references.
3
| American Express Company | (Preliminary) | |||||||
| Selected Card Related Statistical Information | ||||||||
| (Billions, except percentages and where indicated) | ||||||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YOY % change | YTD'20 | YTD'19 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Billed business (F) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 190.1 | $ | 170.9 | $ | 141.9 | $ | 190.2 | $ | 216.8 | (12) | $ | 693.1 | $ | 827.7 | (16) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 87.4 | 77.8 | 63.2 | 89.1 | 108.4 | (19) | 317.5 | 413.1 | (23) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 277.5 | $ | 248.7 | $ | 205.1 | $ | 279.3 | $ | 325.2 | (15) | $ | 1,010.6 | $ | 1,240.8 | (19) | ||||||||||||||||||||||||||||||||||||||||
| Proprietary | $ | 239.7 | $ | 213.6 | $ | 174.8 | $ | 242.6 | $ | 281.6 | (15) | $ | 870.7 | $ | 1,070.5 | (19) | ||||||||||||||||||||||||||||||||||||||||
| Global Network Services (GNS) | 37.8 | 35.1 | 30.3 | 36.7 | 43.6 | (13) | 139.9 | 170.3 | (18) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 277.5 | $ | 248.7 | $ | 205.1 | $ | 279.3 | $ | 325.2 | (15) | $ | 1,010.6 | $ | 1,240.8 | (19) | ||||||||||||||||||||||||||||||||||||||||
| Cards-in-force (millions) (G) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 53.8 | 53.6 | 54.4 | 54.9 | 54.7 | (2) | 53.8 | 54.7 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 58.2 | 57.9 | 58.5 | 58.7 | 59.7 | (3) | 58.2 | 59.7 | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 112.0 | 111.5 | 112.9 | 113.6 | 114.4 | (2) | 112.0 | 114.4 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary | 68.9 | 68.8 | 69.3 | 70.4 | 70.3 | (2) | 68.9 | 70.3 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| GNS | 43.1 | 42.7 | 43.6 | 43.2 | 44.1 | (2) | 43.1 | 44.1 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 112.0 | 111.5 | 112.9 | 113.6 | 114.4 | (2) | 112.0 | 114.4 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic cards-in-force (millions) (G) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 42.2 | 42.0 | 42.7 | 43.1 | 43.0 | (2) | 42.2 | 43.0 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 49.1 | 48.8 | 49.1 | 49.2 | 50.0 | (2) | 49.1 | 50.0 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 91.3 | 90.8 | 91.8 | 92.3 | 93.0 | (2) | 91.3 | 93.0 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Average proprietary basic Card Member spending (dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 4,983 | $ | 4,486 | $ | 3,697 | $ | 4,922 | $ | 5,630 | (11) | $ | 18,085 | $ | 21,515 | (16) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 3,505 | $ | 2,989 | $ | 2,272 | $ | 3,505 | $ | 4,325 | (19) | $ | 12,264 | $ | 16,351 | (25) | ||||||||||||||||||||||||||||||||||||||||
| Average | $ | 4,549 | $ | 4,041 | $ | 3,270 | $ | 4,497 | $ | 5,237 | (13) | $ | 16,352 | $ | 19,972 | (18) | ||||||||||||||||||||||||||||||||||||||||
| Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 64.2 | $ | 61.4 | $ | 62.0 | $ | 69.0 | $ | 76.0 | (16) | $ | 64.2 | $ | 76.0 | (16) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 9.2 | 8.2 | 8.1 | 8.7 | 11.4 | (19) | 9.2 | 11.4 | (19) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 73.4 | $ | 69.6 | $ | 70.1 | $ | 77.7 | $ | 87.4 | (16) | $ | 73.4 | $ | 87.4 | (16) | ||||||||||||||||||||||||||||||||||||||||
| Average discount rate (H) | 2.25 | % | 2.27 | % | 2.23 | % | 2.34 | % | 2.36 | % | 2.28 | % | 2.37 | % | ||||||||||||||||||||||||||||||||||||||||||
| Average fee per card (dollars) (I) | $ | 71 | $ | 69 | $ | 65 | $ | 63 | $ | 61 | 16 | $ | 67 | $ | 58 | 16 | ||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references.
4
| American Express Company | (Preliminary) | ||||||||||||||||||||||
| Selected Credit Related Statistical Information | |||||||||||||||||||||||
| (Billions, except percentages and where indicated) | |||||||||||||||||||||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YOY % change | YTD'20 | YTD'19 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 64.2 | $ | 61.4 | $ | 62.0 | $ | 69.0 | $ | 76.0 | (16) | $ | 64.2 | $ | 76.0 | (16) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 9.2 | $ | 8.2 | $ | 8.1 | $ | 8.7 | $ | 11.4 | (19) | $ | 9.2 | $ | 11.4 | (19) | ||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 73.4 | $ | 69.6 | $ | 70.1 | $ | 77.7 | $ | 87.4 | (16) | $ | 73.4 | $ | 87.4 | (16) | ||||||||||||||||||||||||||||||||||||||||
| Credit loss reserves (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance (J) | $ | 5,688 | $ | 5,628 | $ | 5,236 | $ | 4,027 | $ | 2,232 | # | $ | 4,027 | $ | 2,134 | 89 | ||||||||||||||||||||||||||||||||||||||||
| Provisions - principal, interest and fees | 37 | 571 | 969 | 1,876 | 730 | (95) | 3,453 | 2,462 | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs - principal less recoveries | (346) | (432) | (499) | (518) | (493) | (30) | (1,795) | (1,860) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs - interest and fees less recoveries | (74) | (91) | (103) | (107) | (98) | (24) | (375) | (375) | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Other (K) | 39 | 12 | 25 | (42) | 12 | # | 34 | 22 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 5,344 | $ | 5,688 | $ | 5,628 | $ | 5,236 | $ | 2,383 | # | $ | 5,344 | $ | 2,383 | # | ||||||||||||||||||||||||||||||||||||||||
| % of loans | 7.3 | % | 8.2 | % | 8.0 | % | 6.7 | % | 2.7 | % | 7.3 | % | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| % of past due | 727 | % | 679 | % | 493 | % | 406 | % | 177 | % | 727 | % | 177 | % | ||||||||||||||||||||||||||||||||||||||||||
| Average loans | $ | 71.2 | $ | 69.9 | $ | 72.1 | $ | 83.4 | $ | 85.2 | (16) | $ | 74.6 | $ | 82.8 | (10) | ||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (L) | 1.9 | % | 2.5 | % | 2.8 | % | 2.5 | % | 2.3 | % | 2.4 | % | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (L) | 2.4 | % | 3.0 | % | 3.3 | % | 3.0 | % | 2.8 | % | 2.9 | % | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total (M) | 1.0 | % | 1.2 | % | 1.6 | % | 1.7 | % | 1.5 | % | 1.0 | % | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 10.7 | % | 10.7 | % | 10.5 | % | 11.2 | % | 10.7 | % | 10.7 | % | 10.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 11.4 | % | 11.6 | % | 11.6 | % | 11.9 | % | 11.3 | % | 11.5 | % | 11.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 30.5 | $ | 29.2 | $ | 26.9 | $ | 32.6 | $ | 39.0 | (22) | $ | 30.5 | $ | 39.0 | (22) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 13.2 | $ | 11.6 | $ | 10.7 | $ | 12.1 | $ | 18.4 | (28) | $ | 13.2 | $ | 18.4 | (28) | ||||||||||||||||||||||||||||||||||||||||
| Total receivables | $ | 43.7 | $ | 40.8 | $ | 37.6 | $ | 44.7 | $ | 57.4 | (24) | $ | 43.7 | $ | 57.4 | (24) | ||||||||||||||||||||||||||||||||||||||||
| Credit loss reserves (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance (J) | $ | 422 | $ | 519 | $ | 459 | $ | 126 | $ | 615 | (31) | $ | 126 | $ | 573 | (78) | ||||||||||||||||||||||||||||||||||||||||
| Provisions - principal and fees | (54) | 117 | 355 | 597 | 248 | # | 1,015 | 963 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs - principal and fees less recoveries | (105) | (219) | (299) | (258) | (243) | (57) | (881) | (900) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other (K) | 4 | 5 | 4 | (6) | (1) | # | 7 | (17) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 267 | $ | 422 | $ | 519 | $ | 459 | $ | 619 | (57) | $ | 267 | $ | 619 | (57) | ||||||||||||||||||||||||||||||||||||||||
| % of receivables | 0.6 | % | 1.0 | % | 1.4 | % | 1.0 | % | 1.1 | % | 0.6 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (L) | 1.0 | % | 2.2 | % | 3.1 | % | 1.9 | % | 1.7 | % | 2.0 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate, excluding Global Corporate Payments (GCP) (principal and fees) (L)(O) | 1.1 | % | 2.2 | % | 2.8 | % | 2.3 | % | 2.1 | % | 2.1 | % | 2.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate, excluding GCP (principal only) (L)(O) | 1.0 | % | 2.0 | % | 2.5 | % | 2.1 | % | 1.9 | % | 1.9 | % | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total, excluding GCP (O) | 0.60 | % | 0.90 | % | 1.70 | % | 1.90 | % | 1.40 | % | 0.60 | % | 1.40 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other loans (C) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other loans | $ | 2.9 | $ | 3.5 | $ | 4.6 | $ | 5.2 | $ | 4.8 | (40) | $ | 2.9 | $ | 4.8 | (40) | ||||||||||||||||||||||||||||||||||||||||
| Credit loss reserves (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 370 | $ | 423 | $ | 241 | $ | 172 | $ | 140 | # | $ | 172 | $ | 124 | 39 | ||||||||||||||||||||||||||||||||||||||||
| Provisions | (101) | (26) | 206 | 98 | 36 | # | 177 | 126 | 40 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs | (31) | (27) | (24) | (29) | (24) | 29 | (111) | (98) | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 238 | $ | 370 | $ | 423 | $ | 241 | $ | 152 | 57 | $ | 238 | $ | 152 | 57 | ||||||||||||||||||||||||||||||||||||||||
| % of other loans | 8.2 | % | 10.6 | % | 9.2 | % | 4.6 | % | 3.2 | % | 8.2 | % | 3.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other receivables (C) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other receivables | $ | 3.0 | $ | 2.6 | $ | 2.8 | $ | 2.9 | $ | 3.1 | (3) | $ | 3.0 | $ | 3.1 | (3) | ||||||||||||||||||||||||||||||||||||||||
| Credit loss reserves (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 85 | $ | 94 | $ | 71 | $ | 27 | $ | 22 | # | $ | 27 | $ | 25 | 8 | ||||||||||||||||||||||||||||||||||||||||
| Provisions | 7 | 3 | 25 | 50 | 10 | (30) | 85 | 22 | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs | (7) | (12) | (2) | (6) | (5) | 40 | (27) | (20) | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 85 | $ | 85 | $ | 94 | $ | 71 | $ | 27 | # | $ | 85 | $ | 27 | # | ||||||||||||||||||||||||||||||||||||||||
| % of other receivables | 2.8 | % | 3.3 | % | 3.4 | % | 2.4 | % | 0.9 | % | 2.8 | % | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references.
5
| American Express Company | (Preliminary) | |||||||||||||
| Selected Income Statement Information by Segment | ||||||||||||||
| (Millions) | ||||||||||||||
| Global Consumer Services Group (GCSG) | Global Commercial Services (GCS) | Global Merchant and Network Services (GMNS) | Corporate and Other | Consolidated | ||||||||||||||||||||||||||||
| Q4'20 | ||||||||||||||||||||||||||||||||
| Non-interest revenues (P) | $ | 3,835 | $ | 2,523 | $ | 1,219 | $ | (123) | $ | 7,454 | ||||||||||||||||||||||
| Interest income | 1,901 | 334 | 4 | 48 | 2,287 | |||||||||||||||||||||||||||
| Interest expense (Q) | 209 | 126 | (20) | 75 | 390 | |||||||||||||||||||||||||||
| Total revenues net of interest expense | 5,527 | 2,731 | 1,243 | (150) | 9,351 | |||||||||||||||||||||||||||
| Total provisions for credit losses | 40 | (164) | 13 | — | (111) | |||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 5,487 | 2,895 | 1,230 | (150) | 9,462 | |||||||||||||||||||||||||||
| Marketing, business development, and Card Member rewards and services | 2,739 | 1,338 | 390 | (6) | 4,461 | |||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses (P) | 1,297 | 890 | 557 | 399 | 3,143 | |||||||||||||||||||||||||||
| Pretax income (loss) | 1,451 | 667 | 283 | (543) | 1,858 | |||||||||||||||||||||||||||
| Income tax provision (benefit) | 333 | 129 | 75 | (117) | 420 | |||||||||||||||||||||||||||
| Net income (loss) | 1,118 | 538 | 208 | (426) | 1,438 | |||||||||||||||||||||||||||
| Q4'19 | ||||||||||||||||||||||||||||||||
| Non-interest revenues (P) | $ | 4,371 | $ | 3,187 | $ | 1,505 | $ | 18 | $ | 9,081 | ||||||||||||||||||||||
| Interest income | 2,442 | 493 | 6 | 144 | 3,085 | |||||||||||||||||||||||||||
| Interest expense (Q) | 412 | 247 | (62) | 204 | 801 | |||||||||||||||||||||||||||
| Total revenues net of interest expense | 6,401 | 3,433 | 1,573 | (42) | 11,365 | |||||||||||||||||||||||||||
| Total provisions for credit losses | 780 | 236 | 9 | (1) | 1,024 | |||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 5,621 | 3,197 | 1,564 | (41) | 10,341 | |||||||||||||||||||||||||||
| Marketing, business development, and Card Member rewards and services | 3,145 | 1,641 | 417 | 24 | 5,227 | |||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses (P) | 1,318 | 919 | 581 | 310 | 3,128 | |||||||||||||||||||||||||||
| Pretax income (loss) | 1,158 | 637 | 566 | (375) | 1,986 | |||||||||||||||||||||||||||
| Income tax provision (benefit) | 177 | 87 | 92 | (63) | 293 | |||||||||||||||||||||||||||
| Net income (loss) | 981 | 550 | 474 | (312) | 1,693 | |||||||||||||||||||||||||||
| YOY % change | ||||||||||||||||||||||||||||||||
| Non-interest revenues | (12) | (21) | (19) | # | (18) | |||||||||||||||||||||||||||
| Interest income | (22) | (32) | (33) | (67) | (26) | |||||||||||||||||||||||||||
| Interest expense | (49) | (49) | (68) | (63) | (51) | |||||||||||||||||||||||||||
| Total revenues net of interest expense | (14) | (20) | (21) | # | (18) | |||||||||||||||||||||||||||
| Total provisions for credit losses | (95) | # | 44 | # | # | |||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | (2) | (9) | (21) | # | (9) | |||||||||||||||||||||||||||
| Marketing, business development, and Card Member rewards and services | (13) | (18) | (6) | # | (15) | |||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses | (2) | (3) | (4) | 29 | — | |||||||||||||||||||||||||||
| Pretax income (loss) | 25 | 5 | (50) | 45 | (6) | |||||||||||||||||||||||||||
| Income tax provision (benefit) | 88 | 48 | (18) | 86 | 43 | |||||||||||||||||||||||||||
| Net income (loss) | 14 | (2) | (56) | 37 | (15) | |||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||||||||||||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references.
6
| American Express Company | (Preliminary) | |||||||||||||||||||
| Billed Business Growth Trend | ||||||||||||||||||||
| YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | FX-Adjusted (R) | Reported | FX-Adjusted (R) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YTD'20 | YTD'20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary consumer | (12)% | (17)% | (35)% | (3)% | 8% | (13)% | (18)% | (34)% | (2)% | 8% | (17)% | (17)% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary commercial | (18) | (23) | (36) | (6) | 5 | (19) | (23) | (36) | (5) | 5 | (21) | (21) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary | (15) | (20) | (35) | (4) | 7 | (16) | (20) | (35) | (3) | 7 | (19) | (19) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GNS | (13) | (17) | (28) | (13) | (2) | (15) | (16) | (25) | (10) | (1) | (18) | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | (15) | (19) | (34) | (6) | 5 | (16) | (20) | (33) | (4) | 6 | (19) | (18) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| T&E-related volume (11% of Q4'20 Worldwide Total) (S) | (65) | (69) | (87) | (21) | 6 | (65) | (69) | (87) | (19) | (T) | (61) | (60) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-T&E-related volume (89% of Q4'20 Worldwide Total) (S) | 4 | 1 | (13) | 3 | 6 | 4 | 1 | (12) | 4 | (T) | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Airline-related volume (1% of Q4'20 Worldwide Total) (S) | (85) | (92) | # | (32) | 1 | (85) | (92) | # | (30) | 1 | (76) | (76) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary consumer | (11) | (16) | (32) | (1) | 7 | n/a | n/a | n/a | n/a | n/a | (15) | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary commercial | (15) | (19) | (33) | (4) | 4 | n/a | n/a | n/a | n/a | n/a | (18) | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary | (12) | (17) | (32) | (3) | 6 | n/a | n/a | n/a | n/a | n/a | (16) | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | (12) | (17) | (32) | (3) | 6 | n/a | n/a | n/a | n/a | n/a | (16) | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| T&E-related volume (11% of Q4'20 U.S. Total) (S) | (61) | (66) | (84) | (17) | 6 | n/a | n/a | n/a | n/a | n/a | (57) | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-T&E-related volume (89% of Q4'20 U.S. Total) (S) | 4 | 2 | (12) | 3 | 5 | n/a | n/a | n/a | n/a | n/a | (1) | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Airline-related volume (1% of Q4'20 U.S. Total) (S) | (82) | (90) | # | (29) | 4 | n/a | n/a | n/a | n/a | n/a | (75) | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary consumer | (17) | (21) | (41) | (6) | 11 | (20) | (23) | (39) | (2) | 11 | (21) | (21) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary commercial | (31) | (37) | (49) | (12) | 7 | (33) | (37) | (46) | (7) | 8 | (32) | (31) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary | (22) | (27) | (44) | (8) | 10 | (25) | (29) | (42) | (4) | 10 | (26) | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | (19) | (24) | (38) | (11) | 4 | (22) | (24) | (36) | (7) | 5 | (23) | (22) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Japan, Asia Pacific & Australia billed business | (10) | (15) | (27) | (10) | 4 | (15) | (17) | (25) | (6) | 5 | (16) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Latin America & Canada billed business | (29) | (37) | (49) | (12) | 5 | (25) | (31) | (42) | (5) | 7 | (32) | (26) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Europe, Middle East & Africa billed business | (28) | (30) | (50) | (13) | 4 | (31) | (32) | (49) | (10) | 4 | (30) | (31) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||
See Appendix IV for footnote references.
7
| Global Consumer Services Group | (Preliminary) | |||||||
| Selected Income Statement and Statistical Information | ||||||||
| (Millions, except percentages) | ||||||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YOY % change | YTD'20 | YTD'19 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues (P) | $ | 3,835 | $ | 3,517 | $ | 2,932 | $ | 3,894 | $ | 4,371 | (12) | $ | 14,178 | $ | 16,702 | (15) | ||||||||||||||||||||||||||||||||||||||||
| Interest income | 1,901 | 1,916 | 1,971 | 2,411 | 2,442 | (22) | 8,199 | 9,413 | (13) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense (Q) | 209 | 242 | 272 | 328 | 412 | (49) | 1,051 | 1,730 | (39) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 1,692 | 1,674 | 1,699 | 2,083 | 2,030 | (17) | 7,148 | 7,683 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 5,527 | 5,191 | 4,631 | 5,977 | 6,401 | (14) | 21,326 | 24,385 | (13) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses | 40 | 412 | 886 | 1,810 | 780 | (95) | 3,148 | 2,635 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 5,487 | 4,779 | 3,745 | 4,167 | 5,621 | (2) | 18,178 | 21,750 | (16) | |||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marketing, business development, and Card Member rewards and services | 2,739 | 2,504 | 1,723 | 2,702 | 3,145 | (13) | 9,668 | 12,043 | (20) | |||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses (P) | 1,297 | 1,177 | 1,195 | 1,234 | 1,318 | (2) | 4,903 | 4,967 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 4,036 | 3,681 | 2,918 | 3,936 | 4,463 | (10) | 14,571 | 17,010 | (14) | |||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income | 1,451 | 1,098 | 827 | 231 | 1,158 | 25 | 3,607 | 4,740 | (24) | |||||||||||||||||||||||||||||||||||||||||||||||
| Income tax provision | 333 | 243 | 300 | 30 | 177 | 88 | 906 | 933 | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
| Segment income | $ | 1,118 | $ | 855 | $ | 527 | $ | 201 | $ | 981 | 14 | $ | 2,701 | $ | 3,807 | (29) | ||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | 22.9 | % | 22.1 | % | 36.3 | % | 13.0 | % | 15.3 | % | 25.1 | % | 19.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| (Billions, except percentages and where indicated) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary billed business (F) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 94.8 | $ | 83.9 | $ | 68.1 | $ | 90.9 | $ | 105.9 | (10) | $ | 337.6 | $ | 398.8 | (15) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 34.7 | $ | 30.2 | $ | 22.5 | $ | 33.7 | $ | 41.8 | (17) | $ | 121.1 | $ | 154.0 | (21) | ||||||||||||||||||||||||||||||||||||||||
| Total | $ | 129.5 | $ | 114.1 | $ | 90.6 | $ | 124.6 | $ | 147.7 | (12) | $ | 458.7 | $ | 552.8 | (17) | ||||||||||||||||||||||||||||||||||||||||
| Proprietary cards-in-force (millions) (G) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 37.7 | 37.5 | 37.5 | 38.0 | 37.9 | (1) | 37.7 | 37.9 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 16.7 | 16.8 | 17.2 | 17.6 | 17.5 | (5) | 16.7 | 17.5 | (5) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 54.4 | 54.3 | 54.7 | 55.6 | 55.4 | (2) | 54.4 | 55.4 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary basic cards-in-force (millions) (G) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 26.6 | 26.5 | 26.6 | 27.0 | 26.9 | (1) | 26.6 | 26.9 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 11.6 | 11.7 | 11.9 | 12.1 | 12.1 | (4) | 11.6 | 12.1 | (4) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 38.2 | 38.2 | 38.5 | 39.1 | 39.0 | (2) | 38.2 | 39.0 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Average proprietary basic Card Member spending (dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S | $ | 3,567 | $ | 3,162 | $ | 2,548 | $ | 3,366 | $ | 3,945 | (10) | $ | 12,641 | $ | 14,801 | (15) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 2,984 | $ | 2,555 | $ | 1,871 | $ | 2,777 | $ | 3,457 | (14) | $ | 10,175 | $ | 12,884 | (21) | ||||||||||||||||||||||||||||||||||||||||
| Average | $ | 3,390 | $ | 2,975 | $ | 2,338 | $ | 3,183 | $ | 3,794 | (11) | $ | 11,881 | $ | 14,212 | (16) | ||||||||||||||||||||||||||||||||||||||||
| Segment assets | $ | 86.7 | $ | 81.3 | $ | 80.4 | $ | 87.3 | $ | 106.3 | (18) | $ | 86.7 | $ | 106.3 | (18) | ||||||||||||||||||||||||||||||||||||||||
| Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 51.4 | $ | 49.8 | $ | 50.3 | $ | 55.6 | $ | 62.4 | (18) | $ | 51.4 | $ | 62.4 | (18) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 8.7 | $ | 7.7 | $ | 7.6 | $ | 8.2 | $ | 10.9 | (20) | $ | 8.7 | $ | 10.9 | (20) | ||||||||||||||||||||||||||||||||||||||||
| Total | $ | 60.1 | $ | 57.5 | $ | 57.9 | $ | 63.8 | $ | 73.3 | (18) | $ | 60.1 | $ | 73.3 | (18) | ||||||||||||||||||||||||||||||||||||||||
| Average loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 50.3 | $ | 50.0 | $ | 51.7 | $ | 59.3 | $ | 60.6 | (17) | $ | 53.0 | $ | 59.4 | (11) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 8.3 | $ | 7.8 | $ | 7.6 | $ | 10.0 | $ | 10.5 | (21) | $ | 8.6 | $ | 10.0 | (14) | ||||||||||||||||||||||||||||||||||||||||
| Total | $ | 58.6 | $ | 57.8 | $ | 59.3 | $ | 69.3 | $ | 71.1 | (18) | $ | 61.6 | $ | 69.4 | (11) | ||||||||||||||||||||||||||||||||||||||||
| Lending Credit Metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (L) | 1.9 | % | 2.4 | % | 2.8 | % | 2.6 | % | 2.4 | % | 2.4 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (L) | 2.3 | % | 2.9 | % | 3.3 | % | 3.1 | % | 2.9 | % | 2.9 | % | 2.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total (M) | 1.0 | % | 1.1 | % | 1.5 | % | 1.7 | % | 1.6 | % | 1.0 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (L) | 2.5 | % | 3.3 | % | 3.7 | % | 2.9 | % | 2.5 | % | 3.0 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (L) | 3.1 | % | 4.1 | % | 4.6 | % | 3.5 | % | 3.0 | % | 3.7 | % | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total (M) | 1.7 | % | 1.8 | % | 2.3 | % | 2.1 | % | 1.8 | % | 1.7 | % | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (L) | 2.0 | % | 2.5 | % | 2.9 | % | 2.6 | % | 2.4 | % | 2.5 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (L) | 2.4 | % | 3.1 | % | 3.5 | % | 3.2 | % | 2.9 | % | 3.0 | % | 2.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total (M) | 1.1 | % | 1.2 | % | 1.6 | % | 1.7 | % | 1.6 | % | 1.1 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 11.5 | % | 11.6 | % | 11.5 | % | 12.0 | % | 11.4 | % | 11.6 | % | 11.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 12.0 | % | 12.0 | % | 11.7 | % | 12.1 | % | 11.6 | % | 11.9 | % | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 11.1 | % | 11.9 | % | 13.3 | % | 11.9 | % | 11.3 | % | 11.9 | % | 10.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total | 11.9 | % | 12.0 | % | 11.9 | % | 12.1 | % | 11.5 | % | 11.9 | % | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 11.9 | $ | 10.3 | $ | 9.5 | $ | 10.5 | $ | 14.2 | (16) | $ | 11.9 | $ | 14.2 | (16) | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 6.8 | $ | 5.8 | $ | 5.5 | $ | 5.3 | $ | 8.6 | (21) | $ | 6.8 | $ | 8.6 | (21) | ||||||||||||||||||||||||||||||||||||||||
| Total receivables | $ | 18.7 | $ | 16.1 | $ | 15.0 | $ | 15.8 | $ | 22.8 | (18) | $ | 18.7 | $ | 22.8 | (18) | ||||||||||||||||||||||||||||||||||||||||
| Charge Credit Metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (L) | 0.4 | % | 1.0 | % | 2.1 | % | 1.7 | % | 1.7 | % | 1.3 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (L) | 0.5 | % | 1.1 | % | 2.3 | % | 1.9 | % | 1.8 | % | 1.4 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total (M) | 0.4 | % | 0.6 | % | 1.2 | % | 1.5 | % | 1.2 | % | 0.4 | % | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (L) | 1.3 | % | 2.8 | % | 3.5 | % | 2.6 | % | 2.2 | % | 2.5 | % | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (L) | 1.5 | % | 3.1 | % | 3.7 | % | 2.8 | % | 2.4 | % | 2.7 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total (M) | 1.0 | % | 1.2 | % | 1.6 | % | 2.2 | % | 1.3 | % | 1.0 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (L) | 0.7 | % | 1.7 | % | 2.6 | % | 2.0 | % | 1.9 | % | 1.7 | % | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (L) | 0.8 | % | 1.8 | % | 2.8 | % | 2.2 | % | 2.0 | % | 1.9 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total (M) | 0.6 | % | 0.8 | % | 1.3 | % | 1.7 | % | 1.2 | % | 0.6 | % | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references.
8
| Global Commercial Services | (Preliminary) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selected Income Statement and Statistical Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YOY % change | YTD'20 | YTD'19 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues (P) | $ | 2,523 | $ | 2,327 | $ | 2,014 | $ | 2,788 | $ | 3,187 | (21) | $ | 9,652 | $ | 12,242 | (21) | ||||||||||||||||||||||||||||||||||||||||
| Interest income | 334 | 351 | 402 | 499 | 493 | (32) | 1,586 | 1,900 | (17) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense (Q) | 126 | 139 | 154 | 200 | 247 | (49) | 619 | 1,034 | (40) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 208 | 212 | 248 | 299 | 246 | (15) | 967 | 866 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 2,731 | 2,539 | 2,262 | 3,087 | 3,433 | (20) | 10,619 | 13,108 | (19) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses | (164) | 250 | 645 | 762 | 236 | # | 1,493 | 918 | 63 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 2,895 | 2,289 | 1,617 | 2,325 | 3,197 | (9) | 9,126 | 12,190 | (25) | |||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marketing, business development, and Card Member rewards and services | 1,338 | 1,221 | 924 | 1,508 | 1,641 | (18) | 4,991 | 6,237 | (20) | |||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses (P) | 890 | 796 | 715 | 798 | 919 | (3) | 3,199 | 3,261 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 2,228 | 2,017 | 1,639 | 2,306 | 2,560 | (13) | 8,190 | 9,498 | (14) | |||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income (loss) | 667 | 272 | (22) | 19 | 637 | 5 | 936 | 2,692 | (65) | |||||||||||||||||||||||||||||||||||||||||||||||
| Income tax provision (benefit) | 129 | 52 | 38 | (19) | 87 | 48 | 200 | 501 | (60) | |||||||||||||||||||||||||||||||||||||||||||||||
| Segment income (loss) | $ | 538 | $ | 220 | $ | (60) | $ | 38 | $ | 550 | (2) | $ | 736 | $ | 2,191 | (66) | ||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | 19.3 | % | 19.1 | % | (172.7) | % | (100.0) | % | 13.7 | % | 21.4 | % | 18.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| (Billions, except percentages and where indicated) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary billed business (F) | $ | 109.1 | $ | 98.5 | $ | 82.8 | $ | 116.1 | $ | 133.0 | (18) | $ | 406.5 | $ | 513.3 | (21) | ||||||||||||||||||||||||||||||||||||||||
| Proprietary cards-in-force (millions) (G) | 14.5 | 14.5 | 14.6 | 14.8 | 14.9 | (3) | 14.5 | 14.9 | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
| Average Card Member spending (dollars) | $ | 7,515 | $ | 6,776 | $ | 5,645 | $ | 7,836 | $ | 8,956 | (16) | $ | 27,769 | $ | 34,905 | (20) | ||||||||||||||||||||||||||||||||||||||||
| Segment assets | $ | 42.1 | $ | 39.9 | $ | 38.3 | $ | 46.7 | $ | 52.8 | (20) | $ | 42.1 | $ | 52.8 | (20) | ||||||||||||||||||||||||||||||||||||||||
| Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 13.3 | $ | 12.1 | $ | 12.2 | $ | 13.9 | $ | 14.1 | (6) | $ | 13.3 | $ | 14.1 | (6) | ||||||||||||||||||||||||||||||||||||||||
| Total loans - Global Small Business Services (GSBS) | $ | 13.2 | $ | 12.0 | $ | 12.1 | $ | 13.8 | $ | 14.1 | (6) | $ | 13.2 | $ | 14.1 | (6) | ||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total - GSBS (M) | 0.7 | % | 1.1 | % | 1.6 | % | 1.4 | % | 1.3 | % | 0.7 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Average loans - GSBS | $ | 12.5 | $ | 12.1 | $ | 12.8 | $ | 14.1 | $ | 14.0 | (11) | $ | 12.9 | $ | 13.3 | (3) | ||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) - GSBS (L) | 1.9 | % | 2.2 | % | 2.3 | % | 1.9 | % | 2.0 | % | 2.1 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) - GSBS (L) | 2.2 | % | 2.5 | % | 2.6 | % | 2.2 | % | 2.3 | % | 2.4 | % | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 6.6 | % | 7.0 | % | 7.8 | % | 8.4 | % | 7.0 | % | 7.4 | % | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 9.0 | % | 9.5 | % | 10.0 | % | 10.8 | % | 10.4 | % | 9.8 | % | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total receivables | $ | 25.0 | $ | 24.7 | $ | 22.6 | $ | 28.9 | $ | 34.6 | (28) | $ | 25.0 | $ | 34.6 | (28) | ||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (L) | 1.1 | % | 2.5 | % | 3.3 | % | 1.8 | % | 1.5 | % | 2.1 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total receivables - GCP (O) | $ | 10.9 | $ | 10.4 | $ | 9.4 | $ | 13.2 | $ | 17.2 | (37) | $ | 10.9 | $ | 17.2 | (37) | ||||||||||||||||||||||||||||||||||||||||
| 90+ days past billing as a % of total - GCP (M)(O) | 0.6 | % | 0.6 | % | 2.5 | % | 1.1 | % | 0.8 | % | 0.6 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) - GCP (L)(O) | 0.7 | % | 2.4 | % | 4.0 | % | 1.0 | % | 0.8 | % | 1.9 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total receivables - GSBS | $ | 14.1 | $ | 14.3 | $ | 13.2 | $ | 15.7 | $ | 17.4 | (19) | $ | 14.1 | $ | 17.4 | (19) | ||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total - GSBS (M) | 0.7 | % | 1.0 | % | 2.1 | % | 2.0 | % | 1.7 | % | 0.7 | % | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) - GSBS (L) | 1.3 | % | 2.3 | % | 2.5 | % | 2.2 | % | 2.0 | % | 2.1 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) - GSBS (L) | 1.4 | % | 2.5 | % | 2.8 | % | 2.5 | % | 2.2 | % | 2.3 | % | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||
See Appendix IV for footnote references.
9
| Global Merchant and Network Services | (Preliminary) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selected Income Statement and Statistical Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YOY % change | YTD'20 | YTD'19 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues (P) | $ | 1,219 | $ | 1,111 | $ | 919 | $ | 1,346 | $ | 1,505 | (19) | $ | 4,595 | $ | 5,903 | (22) | ||||||||||||||||||||||||||||||||||||||||
| Interest income | 4 | 4 | 4 | 6 | 6 | (33) | 18 | 28 | (36) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense (Q) | (20) | (18) | (6) | (36) | (62) | (68) | (80) | (303) | (74) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 24 | 22 | 10 | 42 | 68 | (65) | 98 | 331 | (70) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 1,243 | 1,133 | 929 | 1,388 | 1,573 | (21) | 4,693 | 6,234 | (25) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses | 13 | 2 | 25 | 48 | 9 | 44 | 88 | 20 | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 1,230 | 1,131 | 904 | 1,340 | 1,564 | (21) | 4,605 | 6,214 | (26) | |||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marketing, business development, and Card Member rewards and services | 390 | 340 | 249 | 324 | 417 | (6) | 1,303 | 1,422 | (8) | |||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits and other operating expenses (P) | 557 | 440 | 452 | 465 | 581 | (4) | 1,914 | 2,010 | (5) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 947 | 780 | 701 | 789 | 998 | (5) | 3,217 | 3,432 | (6) | |||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income | 283 | 351 | 203 | 551 | 566 | (50) | 1,388 | 2,782 | (50) | |||||||||||||||||||||||||||||||||||||||||||||||
| Income tax provision | 75 | 88 | 137 | 134 | 92 | (18) | 434 | 650 | (33) | |||||||||||||||||||||||||||||||||||||||||||||||
| Segment income | $ | 208 | $ | 263 | $ | 66 | $ | 417 | $ | 474 | (56) | $ | 954 | $ | 2,132 | (55) | ||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | 26.5 | % | 25.1 | % | 67.5 | % | 24.3 | % | 16.3 | % | 31.3 | % | 23.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| (Billions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment assets | $ | 14.3 | $ | 12.3 | $ | 11.6 | $ | 10.2 | $ | 17.5 | (18) | $ | 14.3 | $ | 17.5 | (18) | ||||||||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||
See Appendix IV for footnote references.
10
| American Express Company | (Preliminary) | ||||
| Appendix I | |||||
| Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE) | |||||
| (Millions, except percentages) | |||||
| For the Twelve Months Ended | ||||||||||||||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||||||||||||||
| ROE | ||||||||||||||||||||||||||||||||
| Net income | $ | 3,135 | $ | 3,390 | $ | 4,072 | $ | 5,576 | $ | 6,759 | ||||||||||||||||||||||
| Average shareholders' equity | $ | 22,002 | $ | 22,172 | $ | 22,504 | $ | 22,818 | $ | 22,812 | ||||||||||||||||||||||
| Return on average equity (D) | 14.2 | % | 15.3 | % | 18.1 | % | 24.4 | % | 29.6 | % | ||||||||||||||||||||||
| Reconciliation of ROCE | ||||||||||||||||||||||||||||||||
| Net income | $ | 3,135 | $ | 3,390 | $ | 4,072 | $ | 5,576 | $ | 6,759 | ||||||||||||||||||||||
| Preferred shares dividends and related accretion | 79 | 85 | 90 | 92 | 81 | |||||||||||||||||||||||||||
| Earnings allocated to participating share awards and other | 20 | 23 | 27 | 38 | 47 | |||||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 3,036 | $ | 3,282 | $ | 3,955 | $ | 5,446 | $ | 6,631 | ||||||||||||||||||||||
| Average shareholders' equity | $ | 22,002 | $ | 22,172 | $ | 22,504 | $ | 22,818 | $ | 22,812 | ||||||||||||||||||||||
| Average preferred shares | 1,584 | 1,584 | 1,584 | 1,584 | 1,584 | |||||||||||||||||||||||||||
| Average common shareholders' equity | $ | 20,418 | $ | 20,588 | $ | 20,920 | $ | 21,234 | $ | 21,228 | ||||||||||||||||||||||
| Return on average common equity (D) | 14.9 | % | 15.9 | % | 18.9 | % | 25.6 | % | 31.2 | % | ||||||||||||||||||||||
See Appendix IV for footnote references.
11
| American Express Company | (Preliminary) | |||||||||||||||||||||||||||||||||||||||||||
| Appendix II | ||||||||||||||||||||||||||||||||||||||||||||
| Net Interest Yield on Average Card Member Loans | ||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages and where indicated) | ||||||||||||||||||||||||||||||||||||||||||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YTD'20 | YTD'19 | ||||||||||||||||||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,897 | $ | 1,874 | $ | 1,884 | $ | 2,330 | $ | 2,284 | $ | 7,985 | $ | 8,620 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (Q)(U) | 254 | 296 | 350 | 395 | 421 | 1,295 | 1,833 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (V) | (111) | (137) | (156) | (264) | (271) | (668) | (1,227) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (W) | $ | 2,040 | $ | 2,033 | $ | 2,078 | $ | 2,461 | $ | 2,434 | $ | 8,612 | $ | 9,226 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 71.2 | $ | 69.9 | $ | 72.1 | $ | 83.4 | $ | 85.2 | $ | 74.6 | $ | 82.8 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (X) | 10.7 | % | 10.7 | % | 10.5 | % | 11.2 | % | 10.7 | % | 10.7 | % | 10.4 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (Q)(Y) | 11.4 | % | 11.6 | % | 11.6 | % | 11.9 | % | 11.3 | % | 11.5 | % | 11.1 | % | ||||||||||||||||||||||||||||||
| Global Consumer Services Group | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (Q) | $ | 1,490 | $ | 1,470 | $ | 1,462 | $ | 1,800 | $ | 1,750 | $ | 6,222 | $ | 6,660 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (Q)(U) | 64 | 81 | 97 | 46 | 73 | 288 | 276 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (V) | (33) | (42) | (54) | (60) | (58) | (189) | (220) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (W) | $ | 1,521 | $ | 1,509 | $ | 1,505 | $ | 1,786 | $ | 1,765 | $ | 6,321 | $ | 6,716 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 50.3 | $ | 50.0 | $ | 51.7 | $ | 59.3 | $ | 60.6 | $ | 53.0 | $ | 59.4 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (Q)(X) | 11.8 | % | 11.8 | % | 11.3 | % | 12.1 | % | 11.6 | % | 11.7 | % | 11.2 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (Q)(Y) | 12.0 | % | 12.0 | % | 11.7 | % | 12.1 | % | 11.6 | % | 11.9 | % | 11.3 | % | ||||||||||||||||||||||||||||||
| Outside the U.S. | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (Q) | $ | 202 | $ | 203 | $ | 237 | $ | 283 | $ | 280 | $ | 926 | $ | 1,024 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (Q)(U) | 33 | 34 | 18 | 16 | 22 | 101 | 85 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (V) | (2) | (2) | (2) | (4) | (4) | (11) | (15) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (W) | $ | 233 | $ | 235 | $ | 253 | $ | 295 | $ | 298 | $ | 1,016 | $ | 1,094 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 8.3 | $ | 7.8 | $ | 7.6 | $ | 10.0 | $ | 10.5 | $ | 8.6 | $ | 10.0 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (Q)(X) | 9.7 | % | 10.4 | % | 12.5 | % | 11.3 | % | 10.7 | % | 10.8 | % | 10.2 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (Q)(Y) | 11.1 | % | 11.9 | % | 13.3 | % | 11.9 | % | 11.3 | % | 11.9 | % | 10.9 | % | ||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (Q) | $ | 1,692 | $ | 1,674 | $ | 1,699 | $ | 2,083 | $ | 2,030 | $ | 7,148 | $ | 7,683 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (Q)(U) | 97 | 115 | 115 | 62 | 95 | 389 | 361 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (V) | (35) | (45) | (56) | (64) | (62) | (200) | (234) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (W) | $ | 1,754 | $ | 1,744 | $ | 1,758 | $ | 2,081 | $ | 2,063 | $ | 7,337 | $ | 7,810 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 58.6 | $ | 57.8 | $ | 59.3 | $ | 69.3 | $ | 71.1 | $ | 61.6 | $ | 69.4 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (Q)(X) | 11.5 | % | 11.6 | % | 11.5 | % | 12.0 | % | 11.4 | % | 11.6 | % | 11.1 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (Q)(Y) | 11.9 | % | 12.0 | % | 11.9 | % | 12.1 | % | 11.5 | % | 11.9 | % | 11.3 | % | ||||||||||||||||||||||||||||||
| Global Commercial Services | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (Q) | $ | 208 | $ | 212 | $ | 248 | $ | 299 | $ | 246 | $ | 967 | $ | 866 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (Q)(U) | 103 | 111 | 119 | 145 | 183 | 478 | 772 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (V) | (25) | (34) | (47) | (64) | (58) | (170) | (222) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (W) | $ | 286 | $ | 289 | $ | 320 | $ | 380 | $ | 371 | $ | 1,275 | $ | 1,416 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 12.6 | $ | 12.1 | $ | 12.8 | $ | 14.2 | $ | 14.1 | $ | 13.0 | $ | 13.4 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (Q)(X) | 6.6 | % | 7.0 | % | 7.8 | % | 8.4 | % | 7.0 | % | 7.4 | % | 6.5 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (Q)(Y) | 9.0 | % | 9.5 | % | 10.0 | % | 10.8 | % | 10.4 | % | 9.8 | % | 10.6 | % | ||||||||||||||||||||||||||||||
See Appendix IV for footnote references.
12
| American Express Company | (Preliminary) | ||||
| Appendix III | |||||
| Card Member Receivables Net Write-offs Components | |||||
| (Billions, except percentages and where indicated) | |||||
| Q4'20 | Q3'20 | Q2'20 | Q1'20 | Q4'19 | YOY % change | YTD'20 | YTD'19 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs (principal and fees) (L) | $ | 105 | $ | 219 | $ | 299 | $ | 258 | $ | 243 | (57) | $ | 881 | $ | 900 | (2) | ||||||||||||||||||||||||||||||||||||||||
| Less: Net write-offs (principal and fees) - GCP (L)(O) | 18 | 60 | 105 | 43 | 37 | (51) | 226 | 147 | 54 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs (principal and fees) - GCSG and GSBS (L) | $ | 87 | $ | 159 | $ | 194 | $ | 215 | $ | 206 | (58) | $ | 655 | $ | 753 | (13) | ||||||||||||||||||||||||||||||||||||||||
| Less: Net write-offs (fees only) - GCSG and GSBS (L) | 10 | 15 | 18 | 19 | 18 | (44) | 62 | 70 | (11) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs (principal only) - GCSG and GSBS (L) | $ | 77 | $ | 144 | $ | 176 | $ | 196 | $ | 188 | (59) | $ | 593 | $ | 683 | (13) | ||||||||||||||||||||||||||||||||||||||||
| Average Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Consumer Services Group (GCSG) | $ | 17.3 | $ | 15.8 | $ | 14.0 | $ | 19.8 | $ | 21.3 | (19) | $ | 16.9 | $ | 20.6 | (18) | ||||||||||||||||||||||||||||||||||||||||
| Global Small Business Services (GSBS) | 14.4 | 13.8 | 13.7 | 16.8 | 17.6 | (18) | 14.8 | 17.2 | (14) | |||||||||||||||||||||||||||||||||||||||||||||||
| Average receivables (GCSG and GSBS) | $ | 31.7 | $ | 29.6 | $ | 27.7 | $ | 36.6 | $ | 38.9 | (19) | $ | 31.7 | $ | 37.8 | (16) | ||||||||||||||||||||||||||||||||||||||||
| GCP | 10.7 | 9.9 | 10.5 | 16.6 | 18.3 | (42) | 12.2 | 18.6 | (34) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total average receivables | $ | 42.4 | $ | 39.5 | $ | 38.2 | $ | 53.2 | $ | 57.2 | (26) | $ | 43.9 | $ | 56.4 | (22) | ||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (L) | 1.0 | % | 2.2 | % | 3.1 | % | 1.9 | % | 1.7 | % | 2.0 | % | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) - GCSG and GSBS (L) | 1.1 | % | 2.2 | % | 2.8 | % | 2.3 | % | 2.1 | % | 2.1 | % | 2.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) - GCSG and GSBS (L) | 1.0 | % | 2.0 | % | 2.5 | % | 2.1 | % | 1.9 | % | 1.9 | % | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references.
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| Appendix IV | (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. | ||||||||
| (A) | Represents net income, less (i) earnings allocated to participating share awards of $9 million, $7 million, $2 million, $2 million and $12 million in Q4'20, Q3'20, Q2'20, Q1'20 and Q4'19, respectively; and (ii) dividends on preferred shares of $14 million, $16 million, $17 million, $32 million and $20 million in Q4'20, Q3'20, Q2'20, Q1'20 and Q4'19, respectively. | |||||||
| (B) | Effective December 31, 2020, we reclassified restricted cash from Other Assets to Cash and cash equivalents on the Consolidated Balance Sheets. Prior period amounts have been revised to conform to the current period presentation. | |||||||
| (C) | Within assets, "other" includes the following items as presented in our Consolidated Balance Sheets: Other loans, less reserves for credit losses (including merchant financing loans and Paycheck Protection Program (PPP)), Premises and equipment and Other assets (including Other receivables); and within liabilities, "other" includes the following items: Accounts payable and Other liabilities. | |||||||
| (D) | Return on average equity and return on average common equity are calculated by dividing one-year period of net income by one-year average of total shareholders' equity, and one-year period of net income attributable to common shareholders by one-year average of common shareholders' equity, respectively. Refer to Appendix I for components of return on average equity and return on average common equity. | |||||||
| (E) | Presented for the purpose of calculating the Tier 1 Leverage Ratio. | |||||||
| (F) | Billed business represents transaction volumes (including cash advances) on cards and other payment products issued by American Express (proprietary billed business) and cards issued under network partnership agreements with banks and other institutions, including joint ventures (GNS billed business). In-store spending activity within GNS retail cobrand portfolios, from which we earn no revenue, is not included in billed business. Billed business is reported as United States or outside the United States based on the location of the issuer. Billed business, together with the average discount rate, drive our discount revenue. | |||||||
| (G) | Cards-in-force represents the number of cards that are issued and outstanding by American Express (proprietary cards-in-force) and cards issued and outstanding under network partnership agreements with banks and other institutions, including joint ventures (GNS cards-in-force) except for GNS retail cobrand cards that have no out of store spend activity during the prior 12 months. Basic cards-in-force excludes supplemental cards issued on consumer accounts. Cards-in-force is useful in understanding the size of our Card Member base. | |||||||
| (H) | Average discount rate calculation is generally designed to reflect the average pricing at all merchants accepting American Express cards and represents the percentage of proprietary and GNS billed business retained by us from merchants we acquire, or from merchants acquired by third parties on our behalf, net of amounts retained by such third parties. The average discount rate, together with billed business, drive our discount revenue. | |||||||
| (I) | Average fee per card is computed based on proprietary net card fees divided by average proprietary total cards-in-force. | |||||||
| (J) | The January 1, 2020, balance includes an increase of $1,643 million and a decrease of $493 million to the beginning reserve balances for Card Member loans and receivables, respectively, related to the adoption of the CECL (Current Expected Credit Losses) methodology. | |||||||
| (K) | Other includes foreign currency impact on balance sheet re-measurement and translation. | |||||||
| (L) | We present 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, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. We believe the net write-off rate, excluding GCP net write-offs, a non-GAAP measure, is useful to show the write-off rate based on principal losses only for the Card Member receivables portfolios for which data is available (i.e., Global Consumer and Global Small Business Services). See Appendix III for a reconciliation. | |||||||
| (M) | Beginning in the first quarter of 2020 we have offered Customer Pandemic Relief programs to provide short-term support for customers impacted by COVID-19. These programs are no longer widely available and negligible balances remained in the programs as of both September 30, 2020 and December 31, 2020. Delinquency status is generally frozen at enrollment, and loans that are current at enrollment do not age, regardless of whether payment is made. Upon exiting the program, delinquency aging resumes where it had left off at enrollment. | |||||||
| (N) | 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 (refer to Footnotes "X" and "Y"). | |||||||
| (O) | GCP reflects global, large and middle market corporate accounts. GCP delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints. | |||||||
| (P) | Effective Q1'20, results reflect enhancements to our transfer pricing methodology related to the sharing of revenues among our card issuing, network and merchant businesses. Prior period amounts have been revised to conform to the current period presentation. | |||||||
| (Q) | Effective Q1'20, results reflect enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios. Prior period amounts have been revised to conform to the current period presentation. | |||||||
| (R) | 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 Q4'20 apply to the period(s) against which such results are being compared). | |||||||
| (S) | Based on billed business from merchants we acquire or merchants acquired by third parties on our behalf (e.g. OptBlue merchants). | |||||||
| (T) | FX-adjusted T&E and Non-T&E historical results are not available due to system limitations. | |||||||
| (U) | Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables. | |||||||
| (V) | Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios. | |||||||
| (W) | Adjusted net interest income is 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. We believe 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. | |||||||
| (X) | 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. | |||||||
| (Y) | Net interest yield on average Card Member loans is 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 credit losses, and thus not included in the net interest yield calculation. We believe that net interest yield on average Card Member loans is useful to investors because it provides a measure of profitability of our Card Member loan portfolio. | |||||||
14