8-K

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): October 21, 2022

AMERICAN EXPRESS COMPANY

(Exact name of registrant as specified in its charter)

New York	1-7657	13-4922250
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

200 Vesey Street,

New York, New York 10285

(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
Common Shares (par value $0.20 per Share)	AXP	New York Stock Exchange

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 October 21, 2022, American Express Company (the “Company”) issued a press release regarding its financial results for the third quarter of 2022. 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 third quarter of 2022. 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	Press Release, dated October 21, 2022, of American Express Company regarding its financial results for the third quarter of 2022.
99.2	Additional information relating to the financial results of American Express Company for the third quarter of 2022.
104	The cover page of this Current Report on Form 8-K, formatted as inline XBRL.

-2-

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:    Corporate Secretary

Date: October 21, 2022

-3-

Document

EXHIBIT 99.1

NEWS RELEASE	NEWS RELEASE	NEWS RELEASE	NEWS RELEASE

FOR IMMEDIATE RELEASE

Media Contacts:

Leah M. Gerstner, Leah.M.Gerstner@aexp.com, +1.212.640.3174

Andrew R. Johnson, Andrew.R.Johnson@aexp.com, +1.212.640.8610

Investors/Analysts Contacts:

Kerri S. Bernstein, Kerri.S.Bernstein@aexp.com, +1.212.640.5574

Michelle A. Scianni, Michelle.A.Scianni@aexp.com, +1.212.640.5574

AMERICAN EXPRESS THIRD-QUARTER REVENUE INCREASED 24% TO $13.6 BILLION

THIRD-QUARTER EARNINGS PER SHARE INCREASED 9% TO $2.47

CARD MEMBER SPENDING UP 21%, DRIVEN BY CONTINUED MOMENTUM ACROSS GOODS & SERVICES AND TRAVEL & ENTERTAINMENT SPENDING

CREDIT METRICS REFLECT STRENGTH OF PREMIUM CUSTOMER BASE

($ in millions, except per share amounts, and where indicated)

	Quarters Ended<br>September 30,		Percentage Inc/(Dec)		Nine Months Ended September 30,		Percentage Inc/(Dec)
	2022	2021		2022
Total Network Volumes (Billions)	$394.4	$330.7	19		1,139.5	$916.1	24
Total Revenues Net of Interest Expense	$13,556	$10,928	24		38,686	$30,235	28
Total Provisions for Credit Losses	$778	$(191)	#		1,155	$(1,472)	#
Net Income	$1,879	$1,826	3		5,942	$6,341	(6)
Diluted Earnings Per Common Share 1	$2.47	$2.27	9		7.77	$7.82	(1)
Average Diluted Common Shares Outstanding	749	787	(5)		753	797	(6)

All values are in US Dollars.

# - Denotes a variance of 100 percent or more.

New York – October 21, 2022 – American Express Company (NYSE: AXP) today reported third-quarter net income of $1.9 billion, or $2.47 per share, compared with net income of $1.8 billion, or $2.27 per share, a year ago.

“We had a strong third quarter with revenues growing 24 percent year-over-year, reaching a record high for the second quarter in a row,” said Stephen J. Squeri, Chairman and Chief Executive Officer.

“We continued to see high levels of customer engagement, acquisitions and loyalty across our premium Card Member base, with overall spending up 21 percent (24 percent on an FX-adjusted basis), driven by growth in both Goods & Services and Travel & Entertainment spending.

“The demand for travel has exceeded our expectations throughout the year, with spending on T&E increasing 57 percent from a year earlier and T&E spending volumes in our international markets surpassing pre-pandemic levels for the first time this quarter, both on an FX-adjusted basis.

“We continue to attract new, premium customers through our differentiated value propositions, experiences and services. We added 3.3 million proprietary cards in the quarter, and saw acquisitions of U.S. Consumer Platinum and Gold cards and U.S. Business Platinum cards each hit record highs. Millennials and Gen Z customers – our fastest growing demographic – are powering this growth and comprised more than 60 percent of our consumer proprietary card acquisitions in the quarter.

“Our credit metrics also remained strong even as we steadily rebuild loan balances, with delinquencies and write-offs continuing to be low. We have not seen changes in the spending behaviors of our customers, but we are mindful of the mixed signals in the broader economy and have plans in place to pivot should the operating environment change dramatically, as we have done in the past.

“The strength of our results, combined with the many opportunities we see for our business, reinforce our confidence in our ability to achieve our long-term growth plan aspirations.”

Third-quarter consolidated total revenues net of interest expense were $13.6 billion, up 24 percent from $10.9 billion a year ago. The increase was primarily driven by increased Card Member spending.

Consolidated provisions for credit losses were $778 million, compared with a benefit of $191 million a year ago. The change reflected a reserve build of $387 million, primarily driven by growth in Card Member loans and changes in macroeconomic forecasts, compared with a $393 million reserve release a year ago, as well as higher net write-offs in the current quarter. Credit metrics remained strong in the current quarter.

Consolidated expenses were $10.3 billion, up 19 percent from $8.7 billion a year ago. The increase primarily reflected higher customer engagement costs, driven by a 19 percent increase in network volumes and higher usage of travel-related benefits. Operating expenses also increased, primarily reflecting higher compensation costs, as well as a net loss on Amex Ventures investments in the current quarter compared with a net gain a year ago.

The consolidated effective tax rate was 23.6 percent, down from 25.5 percent a year ago, primarily reflecting changes in the geographic mix of pretax income.

Based on the company’s performance to date, it continues to expect full year revenue growth of 23% to 25% and now expects to be above its original full-year EPS guidance range of $9.25 to $9.65.

Segment Results

As previously announced, effective for the third quarter of 2022, the company realigned its reportable operating segments to reflect organizational changes announced during the second quarter of 2022. Prior periods have been revised to conform to the new operating segments, which are as follows:

•U.S. Consumer Services, which issues a wide range of proprietary consumer cards and provides services to U.S. consumers, including travel and lifestyle services as well as banking and non-card financing products.

•Commercial Services, which issues a wide range of proprietary corporate and small business cards and provides services to U.S. businesses, including payment and expense management, banking and non-card financing products. Commercial Services also issues proprietary corporate cards and provides services to select global corporate clients.

•International Card Services, which issues a wide range of proprietary consumer, small business and corporate cards outside the United States. International Card Services also provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and our loyalty coalition businesses.

•Global Merchant and Network Services, which operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. Global Merchant and Network Services manages our partnership relationships with third-party card issuers (including our network partnership agreements in

China), merchant acquirers and a prepaid reloadable and gift card program manager, licensing the American Express brand and extending the reach of the global network.

Corporate functions and certain other businesses and operations are included in Corporate and Other.

U.S. Consumer Services reported third-quarter pretax income of $1.31 billion, compared with $1.25 billion a year ago.

Total revenues net of interest expense were $6.2 billion, up 27 percent from $4.9 billion a year ago. The increase was primarily driven by increased Card Member spending.

Provisions for credit losses were $403 million, compared with a benefit of $119 million a year ago. The change reflected a reserve build of $203 million, compared with a $223 million reserve release a year ago, as well as higher net write-offs in the current quarter.

Total expenses were $4.5 billion, up 20 percent from $3.8 billion a year ago, primarily reflecting higher customer engagement costs, which were driven by higher billed business and increased usage of travel-related benefits. Operating expenses also increased, primarily reflecting higher technology, servicing and compensation costs.

Commercial Services reported third-quarter pretax income of $774 million, compared with $699 million a year ago.

Total revenues net of interest expense were $3.5 billion, up 23 percent from $2.8 billion a year ago. The increase was primarily driven by increased Card Member spending.

Provisions for credit losses were $196 million, compared with a benefit of $67 million a year ago. The change reflected a reserve build of $106 million, compared with a $94 million reserve release a year ago, as well as higher net write-offs in the current quarter.

Total expenses were $2.5 billion, up 14 percent from $2.2 billion a year ago, primarily reflecting higher customer engagement costs, which were driven by higher network volumes.

International Card Services reported third-quarter pretax income of $166 million, compared with $269 million a year ago. Results for this segment were significantly impacted by the strength of the U.S. dollar during the quarter.

Total revenues net of interest expense were $2.3 billion, up 19 percent (34 percent FX-adjusted) from $1.9 billion a year ago. The increase was primarily driven by increased Card Member spending and foreign exchange conversion fee revenue.

Provisions for credit losses were $176 million, compared with a benefit of $6 million a year ago. The change reflected a reserve build of $77 million, compared with a $69 million reserve release a year ago, as well as higher net write-offs in the current quarter.

Total expenses were $1.9 billion, up 17 percent from $1.6 billion a year ago, primarily reflecting higher customer engagement costs, which were driven by higher network volumes and increased usage of travel-related benefits. Operating expenses also increased, primarily reflecting higher technology, servicing and compensation costs.

Global Merchant and Network Services reported third-quarter pretax income of $792 million, compared with $513 million a year ago.

Total revenues net of interest expense were $1.7 billion, up 26 percent from $1.3 billion a year ago, primarily reflecting an increase in network volumes.

Total expenses were $870 million, up 8 percent from $809 million a year ago, primarily reflecting higher network volumes in the current quarter and a release of reserves in the prior year for merchant exposure associated with Card Member travel-related purchases earlier in the COVID-19 pandemic.

Corporate and Other reported a third-quarter pretax loss of $582 million, compared with a pretax loss of $282 million a year ago. The decline was primarily driven by a net loss on Amex Ventures investments in the current quarter compared with a net gain 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 $14 million for both the three months ended September 30, 2022 and 2021, and $45 million for both the nine months ended September 30, 2022 and 2021, (ii) dividends on preferred shares of $14 million and $20 million for the three months ended September 30, 2022 and 2021, respectively, and $43 million and $49 million for the nine months ended September 30, 2022 and 2021, respectively, and (iii) an equity-related adjustment of $9 million related to the redemption of preferred shares for both the three months and nine months ended September 30, 2021.

As used in this release:

•Card Member spending (billed business) represents transaction volumes, including cash advances, on payment products issued by American Express.

•Customer engagement costs represent the aggregate of Card Member rewards, business development, Card Member services, and marketing expenses.

•FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the three months ended September 30, 2022 apply to the period against which such results are being compared). FX-adjusted revenues and expenses constitute non-GAAP measures. The company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the company’s performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.

•Network volumes represent the total of billed business and processed volumes.

•Operating expenses represent salaries and employee benefits, professional services, data processing and equipment, and other, net.

•Reserve releases and reserve builds represent 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 releases represent the amount by which net write-offs exceed the provisions for credit losses. Reserve builds represent the amount by which the provisions for credit losses exceed net write-offs.

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: personal cards, business cards, travel services, gift cards, prepaid cards, merchant services, Accertify, Kabbage, Resy, corporate card, business travel, diversity and inclusion, corporate responsibility and Environmental, Social, and Governance reports.

Source: American Express Company

Location: Global

This earnings release should be read in conjunction with the company’s statistical tables for the third quarter 2022, 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 third-quarter results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned 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, including management’s outlook for 2022, expectations for 2023 and aspirations for 2024 and beyond, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” 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 its 2022 earnings per common share (EPS) outlook, grow earnings in the future and execute on its growth plan, which will depend in part on revenue growth, credit performance and the effective tax rate remaining consistent with current expectations and the company’s ability to continue investing at high levels in areas that can drive sustainable growth (including its brand, value propositions, customers, colleagues, technology and coverage), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs as well as the following: macroeconomic conditions, such as recession risks, effects of inflation, labor shortages, supply chain issues, higher interest rates and energy costs and the continued effects of the pandemic; the military conflict between Russia and Ukraine and related geopolitical impacts; issues impacting brand perceptions and the company’s reputation; the impact of any future contingencies, including, but not limited to, restructurings, investment gains or losses, impairments, changes in reserves, legal costs and settlements, the imposition of fines or civil money penalties and increases in Card Member remediation; impacts related to new or renegotiated cobrand and other partner agreements; 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 Card Members, partners and merchants;

•the company’s ability to achieve its 2022 revenue growth outlook, its revenue growth expectations for 2023 and its revenue growth aspirations for 2024 and beyond, which could be impacted by, among other things, the factors identified above and in the subsequent paragraphs as well as the following: a deterioration in macroeconomic conditions; consumer and business spending volumes, including in T&E categories and by large and global corporate clients, not growing in line with expectations; the strengthening of the U.S. dollar beyond expectations; an inability to address competitive pressures, invest with a longer-term view and implement strategies and business initiatives, including within the premium consumer space, commercial payments, the global merchant network and digital environment; uncertainty regarding the continued spread of COVID-19 (including new variants) and the availability, distribution and use of effective treatments and vaccines; prolonged measures to contain the spread of COVID-19 (including travel restrictions), concern of the possible imposition of further containment measures and health concerns associated with the pandemic continuing to affect customer behaviors and travel patterns and demand, any of which could further exacerbate the effects on economic activity and travel-related revenues; and merchant discount rates changing by a greater or lesser amount than expected;

•net card fees not performing consistently with expectations, which could be impacted by, among other things, a deterioration in macroeconomic conditions impacting the ability and desire of Card Members to pay card fees; higher Card Member attrition rates; the pace of Card Member acquisition activity; and the company’s inability to address competitive pressures, develop attractive value propositions and implement its strategy of refreshing card products and enhancing benefits and services;

•net interest income and the growth rate of loans outstanding being higher or lower than expectations, which could be impacted by, among other things, the behavior of Card Members and their actual spending, borrowing and paydown patterns; the company’s ability to effectively manage risk and enhance Card Member value propositions; changes in benchmark interest rates; changes in capital and credit market conditions and the availability and cost of capital; credit actions, including line size and other adjustments to credit availability; the yield on Card Member loans not remaining consistent with current expectations; and the effectiveness of the company’s strategies to capture a greater share of existing Card Members’ spending and borrowings, and attract new, and retain existing, customers;

•future credit performance, the level of future delinquency and write-off rates and the amount and timing of future 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); macroeconomic factors such as unemployment rates, GDP and the volume of bankruptcies; the ability and willingness of Card Members to pay amounts owed to the company, particularly as forbearance and government support programs end; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; collections capabilities and recoveries of previously written-off loans and receivables; 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;

•the actual amount the company spends on marketing in 2022 and beyond, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance; the effectiveness of management’s investment optimization process, 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 company’s ability to balance expense control and investments in the business; and management’s ability to drive increases in revenues and 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), the redemption of rewards and offers (including travel redemptions) and usage of travel-related benefits; the costs related to reward point redemptions; higher-than-expected customer remediation expenses; inflation; further enhancements to product benefits to make them attractive to Card Members and prospective customers, potentially in a manner that is not cost effective; new and renegotiated contractual obligations with business partners; and the pace and cost of the expansion of the company’s global lounge collection;

•the company’s ability to control operating expenses and the actual amount spent on operating expenses in 2022 and beyond, which could be impacted by, among other things, salary and benefit expenses to attract and retain talent, including with respect to an increased colleague headcount; a persistent inflationary environment; 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 and the willingness of Card Members to self-service and address issues through digital channels; the company’s ability to increase automation more generally and leverage and grow its scale; restructuring activity; supply chain issues; 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; information or cyber security incidents; the payment of civil money penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; the performance of Amex Ventures

investments; impairments of goodwill or other assets; and the impact of changes in foreign currency exchange rates on costs;

•the company’s tax rate not remaining consistent with current levels, which could be impacted by, among other things, changes in tax laws and regulation, the company’s geographic mix of income, unfavorable tax audits and other unanticipated tax items;

•changes affecting the company’s plans regarding the return of capital to shareholders, which will depend on factors such as capital levels and regulatory capital ratios; changes in the stress testing and capital planning process and new guidance from the Federal Reserve; results of operations and financial condition; credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;

•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, the desirability of the company’s premium card products, competition for new and existing cobrand relationships, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;

•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 the company’s 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 or conduct business in certain jurisdictions; 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 relationships in the EU; exert further pressure on the average discount rate and the company’s GNS business; 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; and

•factors beyond the company’s control such as a further escalation of the military conflict between Russia and Ukraine, future waves of COVID-19 cases, the severity and contagiousness of new variants, severe weather conditions, natural disasters, power loss, disruptions in telecommunications, terrorism and other catastrophic events, 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.

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, 2021, Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2022 and the company’s other reports filed with the Securities and Exchange Commission.

7

Document

Exhibit 99.2

American Express Company	(Preliminary)
Consolidated Statements of Income
(Millions, except percentages and per share amounts)
		Q3'22			Q2'22			Q1'22			Q4'21			Q3'21			YOY % change	YTD'22			YTD'21			YOY % change
Non-interest revenues
Discount revenue		$	7,848		$	7,873		$	6,835		$	7,149		$	6,369		23	$	22,556		$	17,414		30
Net card fees		1,541			1,481			1,423			1,344			1,312			17	4,445			3,851			15
Service fees and other revenue		1,169			1,265			906			1,134			839			39	3,340			2,182			53
Processed revenue		420			416			372			410			414			1	1,208			1,146			5
Total non-interest revenues		10,978			11,035			9,536			10,037			8,934			23	31,549			24,593			28
Interest income
Interest on loans		3,164			2,707			2,473			2,356			2,256			40	8,344			6,494			28
Interest and dividends on investment securities		27			22			13			17			18			50	62			66			(6)
Deposits with banks and other		183			70			34			27			27			#	287			73			#
Total interest income		3,374			2,799			2,520			2,400			2,301			47	8,693			6,633			31
Interest expense
Deposits		440			187			122			102			109			#	749			356			#
Long-term debt and other		356			252			199			190			198			80	807			635			27
Total interest expense		796			439			321			292			307			#	1,556			991			57
Net interest income		2,578			2,360			2,199			2,108			1,994			29	7,137			5,642			26
Total revenues net of interest expense		13,556			13,395			11,735			12,145			10,928			24	38,686			30,235			28
Provisions for credit losses
Card Member receivables		165			138			80			74			(12)			#	383			(147)			#
Card Member loans		596			272			(111)			(9)			(177)			#	757			(1,146)			#
Other		17			—			(2)			(12)			(2)			#	15			(179)			#
Total provisions for credit losses		778			410			(33)			53			(191)			#	1,155			(1,472)			#
Total revenues net of interest expense after provisions for credit losses		12,778			12,985			11,768			12,092			11,119			15	37,531			31,707			18
Expenses
Card Member rewards		3,571			3,591			3,111			3,032			3,020			18	10,273			7,975			29
Business development		1,194			1,404			1,043			1,128			943			27	3,641			2,634			38
Card Member services		774			678			626			665			579			34	2,078			1,328			56
Marketing		1,458			1,502			1,224			1,585			1,412			3	4,184			3,706			13
Salaries and employee benefits		1,748			1,816			1,654			1,654			1,497			17	5,218			4,586			14
Professional services		500			501			472			607			490			2	1,473			1,351			9
Data processing and equipment		651			623			600			659			613			6	1,874			1,772			6
Other, net		423			327			326			456			115			#	1,076			(28)			#
Total expenses		10,319			10,442			9,056			9,786			8,669			19	29,817			23,324			28
Pretax income		2,459			2,543			2,712			2,306			2,450			—	7,714			8,383			(8)
Income tax provision		580			579			613			587			624			(7)	1,772			2,042			(13)
Net income		$	1,879		$	1,964		$	2,099		$	1,719		$	1,826		3	$	5,942		$	6,341		(6)
Net income attributable to common shareholders (A)		$	1,851		$	1,934		$	2,069		$	1,679		$	1,783		4	$	5,854		$	6,238		(6)
Effective tax rate		23.6		%	22.8		%	22.6		%	25.5		%	25.5		%		23.0		%	24.4		%
Earnings Per Common Share
Basic
Net income attributable to common shareholders		$	2.47		$	2.57		$	2.73		$	2.19		$	2.27		9	$	7.78		$	7.84		(1)
Average common shares outstanding		748			752			757			768			786			(5)	752			796			(6)
Diluted
Net income attributable to common shareholders		$	2.47		$	2.57		$	2.73		$	2.18		$	2.27		9	$	7.77		$	7.82		(1)
Average common shares outstanding		749			753			758			769			787			(5)	753			797			(6)
Cash dividends declared per common share		$	0.52		$	0.52		$	0.52		$	0.43		$	0.43		21	$	1.56		$	1.29		21
# - 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)				Q3'22			Q2'22			Q1'22			Q4'21			Q3'21			YOY % change
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Assets
Cash & cash equivalents	$	31		$	26		$	28		$	22		$	28		11
Card Member receivables, less reserves	55			56			53			54			49			12
Card Member loans, less reserves	96			92			86			85			74			30
Investment securities	5			4			4			3			10			(50)
Other (B)	28			27			25			25			23			22
Total assets	$	215		$	205		$	196		$	189		$	184		17
Liabilities and Shareholders' Equity
Customer deposits	$	103		$	96		$	91		$	84		$	84		23
Short-term borrowings	2			2			2			2			2			—
Long-term debt	42			40			38			39			34			24
Other (B)	44			44			43			42			40			10
Total liabilities	191			182			174			167			160			19
Shareholders' Equity	24			23			22			22			24			—
Total liabilities and shareholders' equity	$	215		$	205		$	196		$	189		$	184		17
Return on average equity (C)	31.9		%	34.4		%	37.7		%	33.7		%	29.2		%
Return on average common equity (C)	33.6		%	36.5		%	40.0		%	35.8		%	31.0		%
Book value per common share (dollars)	$	29.92		$	28.82		$	27.56		$	27.05		$	28.39		5

See Appendix IV for footnote references

2

American Express Company	(Preliminary)
Consolidated Capital
			Q2'22			Q1'22			Q4'21			Q3'21
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Shares Outstanding (in millions)
Beginning of period			755			761			778			798
Repurchase of common shares			(4)			(8)			(17)			(20)
Net impact of employee benefit plans and others			—			2			—			—
End of period			751			755			761			778
Risk-Based Capital Ratios - Basel III ( in billions)
Common Equity Tier 1/Risk Weighted Assets (RWA)		%	10.3		%	10.4		%	10.5		%	12.6		%
Tier 1		%	11.2		%	11.4		%	11.5		%	14.2		%
Total		%	13.0		%	12.8		%	12.9		%	15.7		%
Common Equity Tier 1	19.3		$	18.5		$	17.6		$	17.6		$	19.1
Tier 1 Capital	20.9		$	20.2		$	19.3		$	19.2		$	21.4
Tier 2 Capital	3.2		$	3.2		$	2.4		$	2.3		$	2.2
Total Capital	24.1		$	23.4		$	21.6		$	21.5		$	23.7
RWA	181.7		$	179.2		$	169.4		$	166.5		$	150.7
Tier 1 Leverage		%	10.3		%	10.4		%	10.5		%	11.8		%
Average Total Assets to calculate the Tier 1 Leverage Ratio (D)	207.6		$	195.8		$	185.3		$	183.5		$	182.1

All values are in US Dollars.

See Appendix IV for footnote references

3

American Express Company	(Preliminary)
Selected Card Related Statistical Information
(Billions, except percentages and where indicated)				Q3'22			Q2'22			Q1'22			Q4'21			Q3'21			YOY % change	YTD'22			YTD'21			YOY % change
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Network volumes (E)	$	394.4		$	394.8		$	350.3		$	368.1		$	330.7		19	$	1,139.5		$	916.1		24
Billed business (E)	$	339.0		$	340.9		$	301.0		$	316.2		$	280.4		21	$	980.9		$	773.6		27
Processed volumes (E)	$	55.4		$	53.9		$	49.3		$	51.9		$	50.3		10	$	158.6		$	142.5		11
Card Member loans	$	99.0		$	95.4		$	88.8		$	88.6		$	77.0		29	$	99.0		$	77.0		29
Cards-in-force (millions) (F)	131.4			127.5			124.6			121.7			119.2			10	131.4			119.2			10
Proprietary cards-in-force	75.6			74.2			72.8			71.4			70.6			7	75.6			70.6			7
Basic cards-in-force (millions) (F)	109.9			106.1			103.3			100.7			98.3			12	109.9			98.3			12
Proprietary basic cards-in-force	58.2			56.9			55.8			54.7			54.0			8	58.2			54.0			8
Average proprietary basic Card Member spending (dollars)	$	5,886		$	6,052		$	5,452		$	5,822		$	5,231		13	$	17,399		$	14,555		20
Average discount rate (G)	2.36		%	2.35		%	2.32		%	2.30		%	2.32		%		2.34		%	2.30		%
Average fee per card (dollars) (H)	$	82		$	81		$	79		$	76		$	75		9	$	81		$	74		9

See Appendix IV for footnote references

4

American Express Company	(Preliminary)
Network Volumes Related Growth				YOY % change
---	---	---	---	---	---	---	---	---	---	---	---	---
	Reported					FX-Adjusted (I)					Reported	FX-Adjusted (I)
	Q3'22	Q2'22	Q1'22	Q4'21	Q3'21	Q3'22	Q2'22	Q1'22	Q4'21	Q3'21	YTD'22	YTD'22
Network volumes (E)	19%	25%	30%	29%	29%	23%	28%	32%	30%	29%	24%	28%
Billed business (E)	21	27	34	32	31	24	30	35	33	31	27	29
U.S. Consumer Services	22	27	38	37	37	n/a	n/a	n/a	n/a	n/a	28	n/a
Commercial Services	20	27	31	30	28	20	27	31	30	28	26	26
International Card Services	21	29	33	28	27	37	43	40	32	25	27	40
Processed volumes (E)	10	12	12	13	20	19	19	15	15	18	11	18
Merchant Industry Metrics
Goods & Services (G&S)-related (74% of Q3'22 worldwide billed business)	13	15	19	19	18	16	18	21	19	18	16	18
T&E-related (26% of Q3'22 worldwide billed business)	52	80	119	130	126	57	84	121	132	124	77	81
Airline-related (6% of Q3'22 worldwide billed business)	110	142	241	271	429	118	148	246	274	426	149	155

See Appendix IV for footnote references

5

American Express Company	(Preliminary)
Selected Credit Related Statistical Information
(Billions, except percentages and where indicated)				Q3'22			Q2'22			Q1'22			Q4'21			Q3'21			YOY % change	YTD'22			YTD'21			YOY % change
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Worldwide Card Member loans
Card Member loans	$	99.0		$	95.4		$	88.8		$	88.6		$	77.0		29	$	99.0		$	77.0		29
Credit loss reserves (millions)
Beginning balance	$	2,997		$	2,981		$	3,305		$	3,489		$	3,835		(22)	$	3,305		$	5,344		(38)
Provisions - principal, interest and fees	596			272			(111)			(9)			(177)			#	757			(1,146)			#
Net write-offs - principal less recoveries	(203)			(192)			(165)			(128)			(118)			72	(560)			(544)			3
Net write-offs - interest and fees less recoveries	(56)			(55)			(50)			(43)			(43)			30	(161)			(164)			(2)
Other (J)	(15)			(9)			2			(4)			(8)			88	(22)			(1)			#
Ending balance	$	3,319		$	2,997		$	2,981		$	3,305		$	3,489		(5)	$	3,319		$	3,489		(5)
% of loans	3.4		%	3.1		%	3.4		%	3.7		%	4.5		%		3.4		%	4.5		%
% of past due	393		%	441		%	455		%	555		%	666		%		393		%	666		%
Average loans	$	97.7		$	92.4		$	86.8		$	82.9		$	76.4		28	$	92.3		$	73.4		26
Net write-off rate (principal, interest and fees) (K)	1.1		%	1.1		%	1.0		%	0.8		%	0.8		%		1.0		%	1.3		%
Net write-off rate (principal only) (K)	0.8		%	0.8		%	0.8		%	0.6		%	0.6		%		0.8		%	1.0		%
30+ days past due as a % of total	0.9		%	0.7		%	0.7		%	0.7		%	0.7		%		0.9		%	0.7		%
Net interest income divided by average Card Member loans (L)	10.5		%	10.2		%	10.1		%	10.2		%	10.4		%		10.3		%	10.2		%
Net interest yield on average Card Member loans (L)	10.8		%	10.4		%	10.5		%	10.3		%	10.8		%		10.6		%	10.9		%
Worldwide Card Member receivables
Card Member receivables	$	55.3		$	56.0		$	53.2		$	53.6		$	48.8		13	$	55.3		$	48.8		13
Credit loss reserves (millions)
Beginning balance	$	119		$	76		$	64		$	30		$	73		63	$	64		$	267		(76)
Provisions - principal and fees	165			138			80			74			(12)			#	383			(147)			#
Net write-offs - principal and fees less recoveries	(122)			(95)			(67)			(40)			(32)			#	(284)			(89)			#
Other (J)	(3)			—			(1)			—			1			#	(4)			(1)			#
Ending balance	$	159		$	119		$	76		$	64		$	30		#	$	159		$	30		#
% of receivables	0.3		%	0.2		%	0.1		%	0.1		%	0.1		%		0.3		%	0.1		%
Net write-off rate (principal and fees) (K)	0.9		%	0.7		%	0.5		%	0.3		%	0.3		%		0.7		%	0.3		%
Net write-off rate, excluding Corporate receivables (principal only) (K)(M)	1.0		%	0.8		%	0.6		%	0.3		%	0.2		%		0.8		%	0.3		%
30+ days past due as a % of total, excluding Corporate receivables (M)	1.1		%	0.8		%	0.8		%	0.6		%	0.5		%		1.1		%	0.5		%
Other loans (B)
Total other loans	$	4.8		$	4.0		$	3.3		$	2.9		$	2.4		#	$	4.8		$	2.4		#
Credit loss reserves (millions)
Beginning balance	$	38		$	48		$	52		$	66		$	72		(47)	$	52		$	238		(78)
Provisions	14			(6)			(2)			(12)			(5)			#	6			(152)			#
Net write-offs	(6)			(4)			(2)			(2)			—			—	(12)			(19)			(37)
Other (J)	—			—			—			—			(1)			#	—			(1)			#
Ending balance	$	46		$	38		$	48		$	52		$	66		(30)	$	46		$	66		$	(30)
% of other loans	1.0		%	1.0		%	1.5		%	1.8		%	2.8		%		1.0		%	2.8		%
Other receivables (B)
Total other receivables	$	3.0		$	3.0		$	2.7		$	2.7		$	2.7		11	$	3.0		$	2.7		11
Credit loss reserves (millions)
Beginning balance	$	23		$	22		$	25		$	33		$	39		(41)	$	25		$	85		(71)
Provisions	3			6			—			—			3			—	9			(27)			#
Net write-offs	(4)			(6)			(3)			(8)			(9)			(56)	(13)			(25)			(48)
Other (J)	—			1			—			—			—			—	1			—			—
Ending balance	$	22		$	23		$	22		$	25		$	33		(33)	$	22		$	33		(33)
% of other receivables	0.7		%	0.8		%	0.8		%	0.9		%	1.2		%		0.7		%	1.2		%				# - Denotes a variance of 100 percent or more.
---

See Appendix IV for footnote references

6

American Express Company	(Preliminary)
Selected Income Statement Information by Segment
(Millions)				U.S. Consumer Services<br>(USCS)		Commercial Services<br>(CS)		International Card Services<br>(ICS)		Global Merchant and Network Services<br>(GMNS)		Corporate and Other		Consolidated
---	---	---	---	---	---	---	---	---	---	---	---	---
Q3'22
Non-interest revenues	$	4,233	$	3,145	$	2,066	$	1,562	$	(28)	$	10,978
Interest income	2,251		552		364		6		201		3,374
Interest expense	274		201		178		(97)		240		796
Total revenues net of interest expense	6,210		3,496		2,252		1,665		(67)		13,556
Total provisions for credit losses	403		196		176		3		—		778
Total revenues net of interest expense after provisions for credit losses	5,807		3,300		2,076		1,662		(67)		12,778
Total expenses	4,498		2,526		1,910		870		515		10,319
Pretax income (loss)	1,309		774		166		792		(582)		2,459
Q3'21
Non-interest revenues	$	3,372	$	2,558	$	1,732	$	1,294	$	(22)	$	8,934
Interest income	1,613		365		278		4		41		2,301
Interest expense	89		81		114		(24)		47		307
Total revenues net of interest expense	4,896		2,842		1,896		1,322		(28)		10,928
Total provisions for credit losses	(119)		(67)		(6)		—		1		(191)
Total revenues net of interest expense after provisions for credit losses	5,015		2,909		1,902		1,322		(29)		11,119
Total expenses	3,764		2,210		1,633		809		253		8,669
Pretax income (loss)	1,251		699		269		513		(282)		2,450
YOY % change
Non-interest revenues	26		23		19		21		27		23
Interest income	40		51		31		50		#		47
Interest expense	#		#		56		#		#		#
Total revenues net of interest expense	27		23		19		26		#		24
Total provisions for credit losses	#		#		#		—		#		#
Total revenues net of interest expense after provisions for credit losses	16		13		9		26		#		15
Total expenses	20		14		17		8		#		19
Pretax income (loss)	5		11		(38)		54		#		—			# - Denotes a variance of 100 percent or more.
---

See Appendix IV for footnote references

7

U.S. Consumer Services	(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)				Q3'22			Q2'22			Q1'22			Q4'21			Q3'21			YOY % change	YTD'22			YTD'21			YOY % change
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Non-interest revenues	$	4,233		$	4,154		$	3,637		$	3,698		$	3,372		26	$	12,024		$	9,291		29
Interest income	2,251			1,893			1,736			1,681			1,613			40	5,880			4,647			27
Interest expense	274			136			103			85			89			#	513			310			65
Net interest income	1,977			1,757			1,633			1,596			1,524			30	5,367			4,337			24
Total revenues net of interest expense	6,210			5,911			5,270			5,294			4,896			27	17,391			13,628			28
Total provisions for credit losses	403			192			(116)			(9)			(119)			#	479			(910)			#
Total revenues net of interest expense after provisions for credit losses	5,807			5,719			5,386			5,303			5,015			16	16,912			14,538			16
Total expenses	4,498			4,446			3,854			4,022			3,764			20	12,798			9,861			30
Pretax segment income	$	1,309		$	1,273		$	1,532		$	1,281		$	1,251		5	$	4,114		$	4,677		(12)
(Billions, except percentages and where indicated)
Billed business (E)	$	140.3		$	141.1		$	122.7		$	129.5		$	114.9		22	$	404.1		$	314.7		28
Proprietary cards-in-force (millions) (F)	41.2			40.3			39.8			39.0			38.7			6	41.2			38.7			6
Proprietary basic cards-in-force (millions) (F)	28.9			28.3			27.9			27.3			27.2			6	28.9			27.2			6
Average proprietary basic Card Member spending (dollars)	$	4,908		$	5,028		$	4,444		$	4,755		$	4,255		15	$	14,387		$	11,731		23
Segment assets	$	84.8		$	82.4		$	76.7		$	76.5		$	68.4		24	$	84.8		$	68.4		24
Card Member loans
Total loans	$	66.3		$	63.7		$	59.1		$	59.8		$	52.6		26	$	66.3		$	52.6		26
Average loans	$	65.3		$	61.6		$	58.1		$	56.1		$	52.3		25	$	61.7		$	50.5		22
Net write-off rate (principal, interest and fees) (K)	1.1		%	1.1		%	1.0		%	0.8		%	0.8		%		1.1		%	1.2		%
Net write-off rate (principal only) (K)	0.8		%	0.8		%	0.8		%	0.6		%	0.5		%		0.8		%	0.9		%
30+ days past due as a % of total	0.9		%	0.7		%	0.8		%	0.7		%	0.7		%		0.9		%	0.7		%
Net interest income divided by average Card Member loans (L)	12.0		%	11.4		%	11.2		%	11.4		%	11.7		%		11.6		%	11.5		%
Net interest yield on average Card Member loans (L)	11.9		%	11.3		%	11.3		%	11.2		%	11.6		%		11.5		%	11.7		%
Card Member receivables
Total receivables	$	13.2		$	13.8		$	13.4		$	14.7		$	12.6		5	$	13.2		$	12.6		5
Net write-off rate (principal and fees) (K)	0.6		%	0.5		%	0.3		%	0.2		%	0.1		%		0.5		%	—		%
Net write-off rate (principal only) (K)	0.6		%	0.5		%	0.2		%	0.2		%	—		%		0.4		%	—		%
30+ days past due as a % of total	0.9		%	0.6		%	0.6		%	0.4		%	0.4		%		0.9		%	0.4		%			# - Denotes a variance of 100 percent or more.
---

See Appendix IV for footnote references

8

Commercial Services										(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
	Q3'22			Q2'22			Q1'22				Q4'21			Q3'21			YOY % change	YTD'22			YTD'21			YOY % change
Non-interest revenues	$	3,145		$	3,122		$	2,719			$	2,780		$	2,558		23	$	8,986		$	7,053		27
Interest income	552			468			415				388			365			51	1,435			1,020			41
Interest expense	201			121			87				77			81			#	409			253			62
Net interest income	351			347			328				311			284			24	1,026			767			34
Total revenues net of interest expense	3,496			3,469			3,047				3,091			2,842			23	10,012			7,820			28
Total provisions for credit losses	196			97			1				9			(67)			#	294			(429)			#
Total revenues net of interest expense after provisions for credit losses	3,300			3,372			3,046				3,082			2,909			13	9,718			8,249			18
Total expenses	2,526			2,594			2,265				2,365			2,210			14	7,385			6,030			22
Pretax segment income (loss)	$	774		$	778		$	781			$	717		$	699		11	$	2,333		$	2,219		5
(Billions, except percentages and where indicated)
Billed business (E)	$	127.6		$	127.9		$	113.5			$	117.9		$	106.1		20	$	369.0		$	293.7		26
Proprietary cards-in-force (millions) (F)	14.6			14.2			13.8				13.4			13.1			11	14.6			13.1			11
Average proprietary basic Card Member spending (dollars)	$	8,848		$	9,146		$	8,371			$	8,911		$	8,212		8	$	26,377		$	23,099		14
Segment assets	$	51.3		$	49.4		$	46.6			$	44.5		$	40.5		27	$	51.3		$	40.5		27
Card Member loans
Total loans	$	20.7		$	19.4		$	18.1			$	17.0		$	14.9		39	$	20.7		$	14.9		39
Average loans	$	20.1		$	18.8		$	17.2			$	15.9		$	14.7		37	$	18.7		$	13.8		36
Net write-off rate (principal, interest and fees) (K)	0.8		%	0.8		%	0.7		%		0.6		%	0.5		%		0.8		%	0.8		%
Net write-off rate (principal only) (K)	0.7		%	0.6		%	0.6		%		0.5		%	0.4		%		0.6		%	0.7		%
30+ days past due as a % of total	0.7		%	0.6		%	0.6		%		0.5		%	0.5		%		0.7		%	0.5		%
Net interest income divided by average Card Member loans (L)	6.9		%	7.4		%	7.8		%		7.8		%	7.7		%		7.4		%	7.4		%
Net interest yield on average Card Member loans (L)	8.9		%	8.8		%	8.9		%		8.8		%	8.9		%		8.9		%	8.7		%
Card Member receivables
Total receivables	$	27.6		$	27.1		$	25.7			$	24.6		$	23.0		20	$	27.6		$	23.0		20
Net write-off rate (principal and fees) (K)	0.7		%	0.6		%	0.5		%		0.2		%	0.1		%		0.6		%	0.2		%
Net write-off rate (principal only) - small business (K) (M)	0.9		%	0.7		%	0.6		%		0.2		%	0.1		%		0.7		%	0.1		%
30+ days past due as a % of total - small business	1.4		%	0.9		%	0.9		%		0.8		%	0.6		%		1.4		%	0.6		%
90+ days past billing as a % of total - corporate (M)	0.6		%	0.4		%	0.3		%		0.3		%	0.3		%		0.6		%	0.3		%
# - Denotes a variance of 100 percent or more.

See Appendix IV for footnote references

9

International Card Services	(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)				Q3'22			Q2'22			Q1'22			Q4'21			Q3'21			YOY % change	YTD'22			YTD'21			YOY % change
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Non-interest revenues	$	2,066		$	2,140		$	1,859		$	1,947		$	1,732		19	$	6,065		$	4,814		26
Interest income	364			347			324			289			278			31	1,035			827			25
Interest expense	178			144			123			133			114			56	445			309			44
Net interest income	186			203			201			156			164			13	590			518			14
Total revenues net of interest expense	2,252			2,343			2,060			2,103			1,896			19	6,655			5,332			25
Total provisions for credit losses	176			116			82			53			(6)			#	374			(96)			#
Total revenues net of interest expense after provisions for credit losses	2,076			2,227			1,978			2,050			1,902			9	6,281			5,428			16
Total expenses	1,910			2,044			1,734			2,010			1,633			17	5,688			4,539			25
Pretax segment income	$	166		$	183		$	244		$	40		$	269		(38)	$	593		$	889		(33)
(Billions, except percentages and where indicated)
Billed business (E)	$	70.2		$	71.0		$	63.3		$	67.6		$	58.2		21	$	204.5		$	160.6		27
Proprietary cards-in-force (millions) (F)	19.8			19.6			19.3			19.0			18.8			5	19.8			18.8			5
Proprietary basic cards-in-force (millions) (F)	14.7			14.4			14.2			13.9			13.8			7	14.7			13.8			7
Average proprietary basic Card Member spending (dollars)	$	4,824		$	4,967		$	4,505		$	4,880		$	4,258		13	$	14,300		$	11,801		21
Segment assets	$	32.9		$	33.7		$	31.7		$	32.6		$	29.7		11	$	32.9		$	29.7		11
Card Member loans - consumer and small business
Total loans	$	12.0		$	12.3		$	11.5		$	11.6		$	9.5		26	$	12.0		$	9.5		26
Average loans	$	12.3		$	12.0		$	11.4		$	10.8		$	9.4		31	$	11.9		$	9.0		32
Net write-off rate (principal, interest and fees) (K)	1.4		%	1.3		%	1.2		%	1.1		%	1.7		%		1.3		%	2.5		%
Net write-off rate (principal only) (K)	1.2		%	1.1		%	1.0		%	0.8		%	1.3		%		1.1		%	1.9		%
30+ days past due as a % of total	1.0		%	0.9		%	0.9		%	0.8		%	1.0		%		1.0		%	1.0		%
Net interest income divided by average Card Member loans (L)	6.0		%	6.7		%	7.1		%	5.7		%	6.9		%		6.6		%	7.6		%
Net interest yield on average Card Member loans (L)	8.0		%	8.6		%	8.9		%	7.7		%	9.1		%		8.5		%	9.8		%
Card Member receivables
Total receivables	$	14.5		$	15.1		$	14.0		$	14.3		$	13.2		10	$	14.5		$	13.2		10
Net write-off rate (principal and fees) (K)	1.4		%	1.1		%	0.9		%	0.5		%	0.7		%		1.1		%	0.6		%
Net write-off rate (principal only) - consumer and small business (K) (M)	1.6		%	1.2		%	0.9		%	0.6		%	0.7		%		1.3		%	0.9		%
30+ days past due as a % of total - consumer and small business	1.2		%	1.0		%	0.9		%	0.7		%	0.6		%		1.2		%	0.6		%
90+ days past billing as a % of total - corporate (M)	0.5		%	0.5		%	0.4		%	0.3		%	0.3		%		0.5		%	0.3		%
# - Denotes a variance of 100 percent or more.

See Appendix IV for footnote references

10

Global Merchant and Network Services	(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)				Q3'22		Q2'22		Q1'22		Q4'21		Q3'21		YOY % change	YTD'22		YTD'21		YOY % change
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Non-interest revenues	$	1,562	$	1,568	$	1,372	$	1,432	$	1,294	21	$	4,502	$	3,589	25
Interest income	6		5		2		4		4		50	13		12		8
Interest expense	(97)		(61)		(44)		(31)		(24)		#	(202)		(61)		#
Net interest income	103		66		46		35		28		#	215		73		#
Total revenues net of interest expense	1,665		1,634		1,418		1,467		1,322		26	4,717		3,662		29
Total provisions for credit losses	3		2		1		—		—		—	6		(37)		#
Total revenues net of interest expense after provisions for credit losses	1,662		1,632		1,417		1,467		1,322		26	4,711		3,699		27
Total expenses	870		830		748		992		809		8	2,448		2,300		6
Pretax segment income	$	792	$	802	$	669	$	475	$	513	54	$	2,263	$	1,399	62
(Billions)
Total network volumes (E)	$	394.4	$	394.8	$	350.3	$	368.1	$	330.7	19	$	1,139.5	$	916.1	24
Segment assets	$	15.4	$	16.0	$	16.3	$	15.4	$	14.3	8	$	15.4	$	14.3	8		# - Denotes a variance of 100 percent or more.
---

See Appendix IV for footnote references

11

American Express Company	(Preliminary)
Appendix I
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE)
(Millions, except percentages)				Q3'22			Q2'22			Q1'22			Q4'21			Q3'21
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
ROE
Annualized Net income	$	7,516		$	7,856		$	8,396		$	8,060		$	7,304
Average shareholders' equity	$	23,587		$	22,809		$	22,280		$	23,910		$	24,982
Return on average equity (C)	31.9		%	34.4		%	37.7		%	33.7		%	29.2		%
Reconciliation of ROCE
Annualized Net income	$	7,516		$	7,856		$	8,396		$	8,060		$	7,304
Preferred share dividends and equity related adjustments (N)	58			58			57			87			118
Earnings allocated to participating share awards and other	57			60			64			56			54
Net income attributable to common shareholders (N)	$	7,401		$	7,738		$	8,275		$	7,917		$	7,132
Average shareholders' equity	$	23,587		$	22,809		$	22,280		$	23,910		$	24,982
Average preferred shares (N)	1,584			1,584			1,584			1,820			1,955
Average common shareholders' equity	$	22,003		$	21,225		$	20,696		$	22,090		$	23,027
Return on average common equity (C)	33.6		%	36.5		%	40.0		%	35.8		%	31.0		%

See Appendix IV for footnote references

12

American Express Company	(Preliminary)
Appendix II
Net Interest Yield on Average Card Member Loans
(Millions, except percentages and where indicated)
	Q3'22		Q2'22		Q1'22		Q4'21		Q3'21		YTD'22		YTD'21		Q2'21		Q1'21		Q4'20		Q3'20		Q2'20		Q1'20
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Consolidated
Net interest income	2,578		2,360		2,199		2,108		1,994		7,137		5,642		1,818		1,830		1,897		1,874		1,884		2,330
Exclude:
Interest expense not attributable to our Card Member loan portfolio (O)	374		211		158		135		172		743		603		195		236		254		296		350		395
Interest income not attributable to our Card Member loan portfolio (P)	(300)		(167)		(105)		(98)		(92)		(572)		(281)		(93)		(96)		(111)		(137)		(156)		(264)
Adjusted net interest income (L)	2,652		2,404		2,252		2,145		2,074		7,308		5,964		1,920		1,970		2,040		2,033		2,078		2,461
Average Card Member loans (billions)
Net interest income divided by average Card Member loans (L)	10.5	%	10.2	%	10.1	%	10.2	%	10.4	%	10.3	%	10.2	%	10.0	%	10.4	%	10.7	%	10.7	%	10.5	%	11.2	%
Net interest yield on average Card Member loans (L)	10.8	%	10.4	%	10.5	%	10.3	%	10.8	%	10.6	%	10.9	%	10.6	%	11.3	%	11.4	%	11.6	%	11.6	%	11.9	%
U.S. Consumer Services
Net interest income
Exclude:
Interest expense not attributable to our Card Member loan portfolio (O)	34		27		34		23		31		95		135		44		60		64		81		97		46
Interest income not attributable to our Card Member loan portfolio (P)	(61)		(52)		(42)		(36)		(27)		(155)		(74)		(22)		(25)		(33)		(42)		(54)		(60)
Adjusted net interest income (L)
Average Card Member loans (billions)
Net interest income divided by average Card Member loans (L)	12.0	%	11.4	%	11.2	%	11.4	%	11.7	%	11.6	%	11.5	%	11.2	%	11.6	%	11.8	%	11.8	%	11.3	%	12.1	%
Net interest yield on average Card Member loans (L)	11.9	%	11.3	%	11.3	%	11.2	%	11.6	%	11.5	%	11.7	%	11.4	%	12.1	%	12.0	%	12.0	%	11.7	%	12.1	%
Commercial Services
Net interest income
Exclude:
Interest expense not attributable to our Card Member loan portfolio (O)	124		85		63		56		61		272		195		63		70		75		85		101		116
Interest income not attributable to our Card Member loan portfolio (P)	(24)		(18)		(15)		(15)		(16)		(57)		(61)		(23)		(21)		(24)		(33)		(45)		(64)
Adjusted net interest income (L)
Average Card Member loans (billions)
Net interest income divided by average Card Member loans (L)	6.9	%	7.4	%	7.8	%	7.8	%	7.7	%	7.4	%	7.4	%	7.2	%	7.3	%	7.4	%	7.8	%	8.2	%	9.3	%
Net interest yield on average Card Member loans (L)	8.9	%	8.8	%	8.9	%	8.8	%	8.9	%	8.9	%	8.7	%	8.4	%	8.8	%	9.1	%	9.5	%	10.0	%	10.8	%
International Card Services
Net interest income
Exclude:
Interest expense not attributable to our Card Member loan portfolio (O)	72		61		54		57		55		187		154		51		49		61		62		36		45
Interest income not attributable to our Card Member loan portfolio (P)	(7)		(5)		(4)		(3)		(3)		(16)		(8)		(2)		(2)		(2)		(3)		(7)		(4)
Adjusted net interest income (L)
Average Card Member loans (billions)
Net interest income divided by average Card Member loans (L)	6.0	%	6.7	%	7.1	%	5.7	%	6.9	%	6.6	%	7.6	%	7.5	%	8.5	%	8.2	%	8.9	%	11.5	%	10.3	%
Net interest yield on average Card Member loans (L)	8.0	%	8.6	%	8.9	%	7.7	%	9.1	%	8.5	%	9.8	%	9.7	%	10.7	%	10.9	%	11.8	%	13.0	%	11.8	%

All values are in US Dollars.

See Appendix IV for footnote references

13

Appendix III	(Preliminary)
This presents financial and other information reflecting the realignment of our segments. Such information is being furnished in order to assist investors in understanding how our business segment results would historically have been presented had such results been reported to reflect the manner in which our business segments are managed effective for the third quarter of 2022. Such information does not represent a restatement of previously-issued consolidated financial statements, but rather represents a reclassification among our segments, and does not affect reported consolidated net income, earnings per share, total assets, stockholders' equity or regulatory capital for any of the previously reported periods.
U.S. Consumer Services
Selected Income Statement and Statistical Information
(Millions, except percentages)				Q2'22			Q1'22			Q4'21			Q3'21			Q2'21			Q1'21			Q4'20			Q3'20			Q2'20			Q1'20
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Non-interest revenues	$	4,154		$	3,637		$	3,698		$	3,372		$	3,233		$	2,686		$	2,744		$	2,522		$	2,135		$	2,724
Interest income	1,893			1,736			1,681			1,613			1,493			1,541			1,625			1,643			1,685			2,056
Interest expense	136			103			85			89			101			120			135			173			223			256
Net interest income	1,757			1,633			1,596			1,524			1,392			1,421			1,490			1,470			1,462			1,800
Total revenues net of interest expense	5,911			5,270			5,294			4,896			4,625			4,107			4,234			3,992			3,597			4,524
Total provisions for credit losses	192			(116)			(9)			(119)			(300)			(491)			67			299			731			1,520
Total revenues net of interest expense after provisions for credit losses	5,719			5,386			5,303			5,015			4,925			4,598			4,167			3,693			2,866			3,004
Total expenses	4,446			3,854			4,022			3,764			3,364			2,733			2,907			2,726			2,099			2,895
Pretax segment income	$	1,273		$	1,532		$	1,281		$	1,251		$	1,561		$	1,865		$	1,260		$	967		$	767		$	109
(Billions, except percentages and where indicated)
Billed business (E)	$	141.1		$	122.7		$	129.5		$	114.9		$	110.8		$	89.0		$	94.8		$	83.9		$	68.1		$	90.9
Proprietary cards-in-force (millions) (F)	40.3			39.8			39.0			38.7			38.1			37.8			37.7			37.5			37.5			38.0
Proprietary basic cards-in-force (millions) (F)	28.3			27.9			27.3			27.2			26.9			26.7			26.6			26.5			26.6			27.0
Average proprietary basic Card Member spending (dollars)	$	5,028		$	4,444		$	4,755		$	4,255		$	4,138		$	3,336		$	3,567		$	3,162		$	2,548		$	3,366
Segment assets	$	82.4		$	76.7		$	76.5		$	68.4		$	67.2		$	61.5		$	65.0		$	61.7		$	61.8		$	67.9
Card Member loans
Total loans	$	63.7		$	59.1		$	59.8		$	52.6		$	51.8		$	48.3		$	51.4		$	49.8		$	50.3		$	55.6
Average loans	$	61.6		$	58.1		$	56.1		$	52.3		$	49.9		$	49.0		$	50.3		$	50.0		$	51.7		$	59.3
Net write-off rate (principal, interest and fees) (K)	1.1		%	1.0		%	0.8		%	0.8		%	1.2		%	1.6		%	2.3		%	2.9		%	3.3		%	3.1		%
Net write-off rate (principal only) (K)	0.8		%	0.8		%	0.6		%	0.5		%	0.9		%	1.3		%	1.9		%	2.4		%	2.8		%	2.6		%
30+ days past due as a % of total	0.7		%	0.8		%	0.7		%	0.7		%	0.6		%	0.9		%	1.0		%	1.1		%	1.5		%	1.7		%
Net interest income divided by average Card Member loans (L)	11.4		%	11.2		%	11.4		%	11.7		%	11.2		%	11.6		%	11.8		%	11.8		%	11.3		%	12.1		%
Net interest yield on average Card Member loans (L)	11.3		%	11.3		%	11.2		%	11.6		%	11.4		%	12.1		%	12.0		%	12.0		%	11.7		%	12.1		%
Card Member receivables
Total receivables	$	13.8		$	13.4		$	14.7		$	12.6		$	12.9		$	11.2		$	11.9		$	10.3		$	9.5		$	10.5
Net write-off rate (principal and fees) (K)	0.5		%	0.3		%	0.2		%	0.1		%	—		%	0.1		%	0.5		%	1.1		%	2.3		%	1.9		%
Net write-off rate (principal only) (K)	0.5		%	0.2		%	0.2		%	—		%	—		%	—		%	0.4		%	1.0		%	2.1		%	1.7		%
30+ days past due as a % of total	0.6		%	0.6		%	0.4		%	0.4		%	0.3		%	0.4		%	0.4		%	0.6		%	1.2		%	1.5		%

See Appendix IV for footnote references

14

Commercial Services
Selected Income Statement and Statistical Information
(Millions, except percentages)
	Q2'22			Q1'22			Q4'21			Q3'21			Q2'21			Q1'21			Q4'20			Q3'20			Q2'20			Q1'20
Non-interest revenues	$	3,122		$	2,719		$	2,780		$	2,558		$	2,414		$	2,081		$	2,147		$	1,986		$	1,710		$	2,367
Interest income	468			415			388			365			331			324			323			337			388			484
Interest expense	121			87			77			81			81			91			97			109			134			168
Net interest income	347			328			311			284			250			233			226			228			254			316
Total revenues net of interest expense	3,469			3,047			3,091			2,842			2,664			2,314			2,373			2,214			1,964			2,683
Total provisions for credit losses	97			1			9			(67)			(187)			(175)			(155)			244			537			665
Total revenues net of interest expense after provisions for credit losses	3,372			3,046			3,082			2,909			2,851			2,489			2,528			1,970			1,427			2,018
Total expenses	2,594			2,265			2,365			2,210			2,031			1,789			1,888			1,698			1,403			1,941
Pretax segment income (loss)	$	778		$	781		$	717		$	699		$	820		$	700		$	640		$	272		$	24		$	77
(Billions, except percentages and where indicated)
Billed business (E)	$	127.9		$	113.5		$	117.9		$	106.1		$	100.7		$	86.9		$	91.0		$	82.8		$	69.9		$	96.4
Proprietary cards-in-force (millions) (F)	14.2			13.8			13.4			13.1			12.8			12.6			12.5			12.5			12.5			12.7
Average proprietary basic Card Member spending (dollars)	$	9,146		$	8,371		$	8,911		$	8,212		$	7,951		$	6,929		$	7,282		$	6,634		$	5,545		$	7,587
Segment assets	$	49.4		$	46.6		$	44.5		$	40.5		$	38.9		$	35.8		$	34.9		$	33.6		$	32.5		$	39.9
Card Member loans
Total loans	$	19.4		$	18.1		$	17.0		$	14.9		$	14.5		$	13.3		$	12.8		$	11.6		$	11.7		$	13.4
Average loans	$	18.8		$	17.2		$	15.9		$	14.7		$	13.9		$	13.0		$	12.1		$	11.7		$	12.4		$	13.7
Net write-off rate (principal, interest and fees) (K)	0.8		%	0.7		%	0.6		%	0.5		%	0.7		%	1.2		%	2.2		%	2.5		%	2.6		%	2.3		%
Net write-off rate (principal only) (K)	0.6		%	0.6		%	0.5		%	0.4		%	0.6		%	1.0		%	2.0		%	2.2		%	2.3		%	2.0		%
30+ days past due as a % of total	0.6		%	0.6		%	0.5		%	0.5		%	0.4		%	0.6		%	0.7		%	1.1		%	1.6		%	1.4		%
Net interest income divided by average Card Member loans (L)	7.4		%	7.8		%	7.8		%	7.7		%	7.2		%	7.3		%	7.4		%	7.8		%	8.2		%	9.3		%
Net interest yield on average Card Member loans (L)	8.8		%	8.9		%	8.8		%	8.9		%	8.4		%	8.8		%	9.1		%	9.5		%	10.0		%	10.8		%
Card Member receivables
Total receivables	$	27.1		$	25.7		$	24.6		$	23.0		$	21.6		$	19.5		$	19.2		$	19.5		$	17.9		$	23.0
Net write-off rate (principal and fees) (K)	0.6		%	0.5		%	0.2		%	0.1		%	0.2		%	0.3		%	1.0		%	2.2		%	2.3		%	1.6		%
Net write-off rate (principal only) - small business (K) (M)	0.7		%	0.6		%	0.2		%	0.1		%	0.1		%	0.3		%	1.4		%	2.4		%	2.5		%	2.3		%
30+ days past due as a % of total - small business	0.9		%	0.9		%	0.8		%	0.6		%	0.5		%	0.6		%	0.7		%	1.0		%	2.3		%	2.2		%
90+ days past billing as a % of total - corporate (M)	0.4		%	0.3		%	0.3		%	0.3		%	0.2		%	0.3		%	0.4		%	0.5		%	1.9		%	0.9		%

See Appendix IV for footnote references

15

International Card Services
Selected Income Statement and Statistical Information
(Millions, except percentages)
	Q2'22		Q1'22		Q4'21		Q3'21		Q2'21			Q1'21			Q4'20			Q3'20			Q2'20			Q1'20
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Non-interest revenues									$	1,612		$	1,470		$	1,586		$	1,435		$	1,175		$	1,681
Interest income	347		324		289		278		270			279			287			286			301			370
Interest expense	144		123		133		114		101			94			105			100			70			104
Net interest income	203		201		156		164		169			185			182			186			231			266
Total revenues net of interest expense	2,343		2,060		2,103		1,896		1,781			1,655			1,768			1,621			1,406			1,947
Total provisions for credit losses	116		82		53		(6)		(90)			—			(35)			119			263			387
Total revenues net of interest expense after provisions for credit losses	2,227		1,978		2,050		1,902		1,871			1,655			1,803			1,502			1,143			1,560
Total expenses	2,044		1,734		2,010		1,633		1,519			1,387			1,555			1,338			1,116			1,478
Pretax segment income									$	352		$	268		$	248		$	164		$	27		$	82
(Billions, except percentages and where indicated)
Billed business (E)									$	55.0		$	47.4		$	52.8		$	45.8		$	35.5		$	53.4
Proprietary cards-in-force (millions) (F)	19.6		19.3		19		18.8		18.7			18.6			18.7			18.9			19.3			19.7
Proprietary basic cards-in-force (millions) (F)	14.4		14.2		13.9		13.8		13.6			13.6			13.6			13.7			14.0			14.3
Average proprietary basic Card Member spending (dollars)									$	4,046		$	3,496		$	3,869		$	3,308		$	2,516		$	3,747
Segment assets	33.7		31.7		32.6		29.7		$	28.6		$	25.7		$	28.2		$	25.2		$	23.6		$	25.6
Card Member loans - consumer and small business
Total loans									$	9.3		$	8.4		$	9.2		$	8.2		$	8.0		$	8.6
Average loans									$	8.9		$	8.7		$	8.7		$	8.2		$	8.0		$	10.4
Net write-off rate (principal, interest and fees) (K)	1.3	%	1.2	%	1.1	%	1.7	%	2.8		%	3.1		%	3.0		%	4.0		%	4.4		%	3.5		%
Net write-off rate (principal only) (K)	1.1	%	1.0	%	0.8	%	1.3	%	2.1		%	2.5		%	2.4		%	3.2		%	3.6		%	2.8		%
30+ days past due as a % of total	0.9	%	0.9	%	0.8	%	1.0	%	1.1		%	1.5		%	1.7		%	1.8		%	2.2		%	2.0		%
Net interest income divided by average Card Member loans (L)	6.7	%	7.1	%	5.7	%	6.9	%	7.5		%	8.5		%	8.2		%	8.9		%	11.5		%	10.3		%
Net interest yield on average Card Member loans (L)	8.6	%	8.9	%	7.7	%	9.1	%	9.7		%	10.7		%	10.9		%	11.8		%	13.0		%	11.8		%
Card Member receivables
Total receivables									$	13.1		$	11.3		$	12.6		$	11.0		$	10.2		$	11.2
Net write-off rate (principal and fees) (K)	1.1	%	0.9	%	0.5	%	0.7	%	(0.3)		%	1.2		%	1.5		%	3.3		%	5.5		%	2.5		%
Net write-off rate (principal only) - consumer and small business (K) (M)	1.2	%	0.9	%	0.6	%	0.7	%	0.9		%	1.2		%	1.1		%	2.5		%	3.2		%	2.4		%
30+ days past due as a % of total - consumer and small business	1.0	%	0.9	%	0.7	%	0.6	%	0.6		%	0.8		%	0.8		%	1.0		%	1.4		%	1.9		%
90+ days past billing as a % of total - corporate (M)	0.5	%	0.4	%	0.3	%	0.3	%	0.4		%	0.9		%	1.1		%	1.2		%	4.8		%	1.4		%

All values are in US Dollars.

See Appendix IV for footnote references

16

Global Merchant and Network Services
Selected Income Statement and Statistical Information
(Millions, except percentages)
	Q2'22		Q1'22		Q4'21		Q3'21		Q2'21		Q1'21		Q4'20		Q3'20	Q2'20		Q1'20
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Non-interest revenues	$	1,568	$	1,372	$	1,432	$	1,294	$	1,220	$	1,075	$	1,101		$	844	$	1,251
Interest income	5		2		4		4		4		4		4		4	4		6
Interest expense	(61)		(44)		(31)		(24)		(20)		(17)		(21)		(19)	(7)		(35)
Net interest income	66		46		35		28		24		21		25		23	11		41
Total revenues net of interest expense	1,634		1,418		1,467		1,322		1,244		1,096		1,126		1,036	855		1,292
Total provisions for credit losses	2		1		—		—		(27)		(10)		11		4	23		49
Total revenues net of interest expense after provisions for credit losses	1,632		1,417		1,467		1,322		1,271		1,106		1,115		1,032	832		1,243
Total expenses	830		748		992		809		757		734		862		711	642		713
Pretax segment income	$	802	$	669	$	475	$	513	$	514	$	372	$	253		$	190	$	530
(Billions)
Total network volumes (E)	$	394.8	$	350.3	$	368.1	$	330.7	$	316.1	$	269.3	$	285.9	255.5	$	211.0	$	285.4
Segment assets	$	16.0	$	16.3	$	15.4	$	14.3	$	14.3	$	13.7	$	14.1	12.1	$	11.4	$	10.0

All values are in US Dollars.

See Appendix IV for footnote references

17

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 $14 million, $15 million, $16 million, $11 million and $14 million in Q3'22, Q2'22, Q1'22, Q4'21 and Q3'21, respectively; (ii) dividends on preferred shares of $14 million, $15 million, $14 million, $22 million and $20 million in Q3'22, Q2'22, Q1'22, Q4'21 and Q3'21, respectively; and (iii) equity-related adjustments of $7 million and $9 million in Q4'21 and Q3'21, respectively, related to the redemption of preferred shares. (refer to Footnote "N").
(B)	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), Premises and equipment and Other assets (including Other receivables); and within liabilities, "other" includes the following items: Accounts payable and Other liabilities.
(C)	Effective Q1'22, we have changed the way we calculate Return on Average Equity (ROE) and Return on Average Common Equity (ROCE). ROE is calculated by dividing annualized net income for the period by average shareholders' equity for the period. ROCE is calculated by dividing annualized net income attributable to common shareholders for the period by average common shareholders' equity for the period.
(D)	Presented for the purpose of calculating the Tier 1 Leverage Ratio.
(E)	Network volumes represent our total volumes. Billed business represents transaction volumes from payment products issued by American Express. Processed volumes represent transaction volumes from cards issued by network partners and those associated with alternative payment solutions.
(F)	Cards-in-force represent 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. 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.
(G)	Average discount rate calculation is generally designed to reflect the average pricing at all merchants accepting American Express cards and represents the percentage of network volumes retained by us from spend at 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.
(H)	Average fee per card is computed on an annualized basis based on proprietary net card fees divided by average proprietary total cards-in-force.
(I)	FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (e.g., assumes the foreign exchange rates used to determine results for Q3'22 apply to the period(s) against which such results are being compared).
(J)	Other includes foreign currency impact on balance sheet re-measurement and translation.
(K)	Our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses and we therefore present a net write-off rate including principal, interest and/or fees. We also present a net write-off rate based on principal losses only to be consistent with industry convention.
(L)	Net interest income divided by average Card Member loans, computed on an annualized basis, 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. Net interest yield on average Card Member loans, a non-GAAP measure, is computed by dividing adjusted net interest income (also a non-GAAP measure) by average Card Member loans, computed on an annualized basis. Adjusted net interest income 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. 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. See Appendix II for calculations of net interest income divided by average Card Member loans and net interest yield on average Card Member loans.
(M)	A net write-off rate for principal losses only and delinquency data for periods other than 90+ days past billing are not available for corporate receivables due to system constraints. We believe that it 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., consumer and small business).
(N)	On August 3, 2021, we issued $1.6 billion of 3.550% Fixed Rate Reset Noncumulative Preferred Shares, Series D. With the proceeds from that issuance, we redeemed in full the $850 million of 4.900% Fixed Rate/Floating Rate Noncumulative Preferred Shares, Series C on September 15, 2021 and the $750 million of 5.200% Fixed Rate/Floating Rate Noncumulative Preferred Shares, Series B on November 15, 2021. The difference between the redemption value and carrying value of the redeemed Series B and C Preferred Shares resulted in reductions of $7 million and $9 million to net income available to common shareholders, in Q4'21 and Q3'21, respectively.
(O)	Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(P)	Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.

18