American Express Co 8-K, filed Mar 20, 2020

American Express Co (AXP)

8-K 2020-03-20 For: 2020-03-20

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Added on April 09, 2026

About this 8-K

American Express Co filed this 8-K on March 20, 2020.

Items reported

Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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☐			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))


Exhibit			Description
99.1			Selected Reportable Operating Segment Financial Information — Eight Quarter Trend Q1 2018 through Q4 2019 .
104			The cover page of this Current Report on Form 8-K, formatted as inline XBRL.


			AMERICAN EXPRESS COMPANY
			(REGISTRANT)

			By:			/s/ Tangela S. Richter
						Name: Tangela S. Richter
						Title: Corporate Secretary


	Q4'19			Q3'19			Q2'19			Q1'19			Q4'18			Q3'18			Q2'18			Q1'18
Non-interest revenues *	$	4,371		$	4,226		$	4,193		$	3,912		$	4,019		$	3,850		$	3,850		$	3,638
Interest income	2,442			2,402			2,297			2,272			2,240			2,140			1,994			1,949
Interest expense **	412			437			446			435			413			380			347			308
Total revenues net of interest expense	6,401			6,191			6,044			5,749			5,846			5,610			5,497			5,279
Total provisions for losses	780			653			651			551			727			609			566			529
Total revenues net of interest expense after provisions for losses	5,621			5,538			5,393			5,198			5,119			5,001			4,931			4,750
Total expenses *	4,463			4,275			4,288			3,984			4,192			3,845			3,793			3,551
Pretax segment income	1,158			1,263			1,105			1,214			927			1,156			1,138			1,199
Income tax provision	177			272			224			260			72			242			233			258
Segment income	$	981		$	991		$	881		$	954		$	855		$	914		$	905		$	941
Effective tax rate	15.3		%	21.5		%	20.3		%	21.4		%	7.8		%	20.9		%	20.5		%	21.5		%

* Reflects changes as a result of enhancements to our transfer pricing methodology related to the sharing of revenues between our card issuing, network and merchant businesses.
** Reflects changes as a result of enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios.


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

	Q4'19			Q3'19			Q2'19			Q1'19			Q4'18			Q3'18			Q2'18			Q1'18
Non-interest revenues *	$	3,187		$	3,070		$	3,059		$	2,926		$	2,972		$	2,881		$	2,876		$	2,752
Interest income	493			485			468			454			435			416			393			377
Interest expense **	247			262			269			256			254			237			221			186
Total revenues net of interest expense	3,433			3,293			3,258			3,124			3,153			3,060			3,048			2,943
Total provisions for losses	236			222			206			254			224			200			237			239
Total revenues net of interest expense after provisions for losses	3,197			3,071			3,052			2,870			2,929			2,860			2,811			2,704
Total expenses *	2,560			2,358			2,355			2,225			2,354			2,194			2,204			2,088
Pretax segment income	637			713			697			645			575			666			607			616
Income tax provision	87			145			136			133			44			142			126			140
Segment income	$	550		$	568		$	561		$	512		$	531		$	524		$	481		$	476
Effective tax rate	13.7		%	20.3		%	19.5		%	20.6		%	7.7		%	21.3		%	20.8		%	22.7		%

* Reflects changes as a result of enhancements to our transfer pricing methodology related to the sharing of revenues between our card issuing, network and merchant businesses.
** Reflects changes as a result of enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios.


Not Applicable
(Former name or former address, if changed since last report)


American Express Company																									(Preliminary)
Appendix I
Consolidated Statements of Income *
(Millions, except percentages and per share amounts)

	Q4'19			Q3'19			Q2'19			Q1'19			Q4'18			Q3'18			Q2'18			Q1'18
Total non-interest revenues	$	9,081		$	8,786		$	8,764		$	8,305		$	8,442		$	8,183		$	8,173		$	7,877
Total interest income	3,085			3,080			2,965			2,954			2,866			2,738			2,540			2,462
Total interest expense	801			877			891			895			834			777			711			621
Total revenues net of interest expense	11,365			10,989			10,838			10,364			10,474			10,144			10,002			9,718
Total provisions for losses	1,024			879			861			809			954			817			806			775
Total revenues net of interest expense after provisions for losses	10,341			10,110			9,977			9,555			9,520			9,327			9,196			8,943
Total expenses	8,355			7,844			7,758			7,597			7,689			7,209			7,105			6,861
Pretax income	1,986			2,266			2,219			1,958			1,831			2,118			2,091			2,082
Income tax provision (benefit)	293			511			458			408			(179)			464			468			448
Net income	$	1,693		$	1,755		$	1,761		$	1,550		$	2,010		$	1,654		$	1,623		$	1,634
Net income attributable to common shareholders (F)	$	1,661		$	1,723		$	1,729		$	1,518		$	1,975		$	1,621		$	1,591		$	1,600
Effective tax rate	14.8		%	22.6		%	20.6		%	20.8		%	(9.8)		%	21.9		%	22.4		%	21.5		%

Earnings Per Common Share
Basic
Net income attributable to common shareholders	$	2.04		$	2.09		$	2.07		$	1.81		$	2.33		$	1.89		$	1.85		$	1.86
Average common shares outstanding	814			825			834			841			850			858			860			859
Diluted
Net income attributable to common shareholders	$	2.03		$	2.08		$	2.07		$	1.80		$	2.32		$	1.88		$	1.84		$	1.86
Average common shares outstanding	816			827			836			843			852			860			862			861
Cash dividends declared per common share	$	0.43		$	0.43		$	0.39		$	0.39		$	0.39		$	0.39		$	0.35		$	0.35

* The American Express Consolidated Statements of Income and Earnings Per Common Share remain unchanged and are being provided for context.


	Global Consumer Services Group (GCSG)			Global Commercial Services (GCS)			Global Merchant and Network Services (GMNS)			Corporate and Other			Consolidated
Twelve months ended December 31, 2019
Non-interest revenues *		$	16,702		$	12,242		$	5,903		$	89		$	34,936
Interest income		9,413			1,900			28			743			12,084
Interest expense **		1,730			1,034			(303)			1,003			3,464
Total revenues net of interest expense		24,385			13,108			6,234			(171)			43,556
Total provisions for losses		2,635			918			20			—			3,573
Total revenues net of interest expense after provisions for losses		21,750			12,190			6,214			(171)			39,983
Total expenses *		17,010			9,498			3,432			1,614			31,554
Pretax income (loss)		4,740			2,692			2,782			(1,785)			8,429
Income tax provision (benefit)		933			501			650			(414)			1,670
Net income (loss)		$	3,807		$	2,191		$	2,132		$	(1,371)		$	6,759

Twelve months ended December 31, 2018
Non-interest revenues *		$	15,357		$	11,481		$	5,790		$	47		$	32,675
Interest income		8,323			1,621			30			632			10,606
Interest expense **		1,448			898			(244)			841			2,943
Total revenues net of interest expense		22,232			12,204			6,064			(162)			40,338
Total provisions for losses		2,431			900			22			(1)			3,352
Total revenues net of interest expense after provisions for losses		19,801			11,304			6,042			(161)			36,986
Total expenses *		15,381			8,840			3,499			1,144			28,864
Pretax income (loss)		4,420			2,464			2,543			(1,305)			8,122
Income tax provision (benefit)		805			452			633			(689)			1,201
Net income (loss)		$	3,615		$	2,012		$	1,910		$	(616)		$	6,921

* Reflects changes as a result of enhancements to our transfer pricing methodology related to the sharing of revenues between our card issuing, network and merchant businesses.
** Reflects changes as a result of enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios.


	Q4'19			Q3'19			Q2'19			Q1'19			Q4'18			Q3'18			Q2'18			Q1'18			YTD'19			YTD'18
Consolidated
Net interest income	$	2,284		$	2,203		$	2,074		$	2,059		$	2,032		$	1,961		$	1,829		$	1,841		$	8,620		$	7,663
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *	421			461			465			486			445			425			390			332			1,833			1,592
Interest income not attributable to the Company's Card Member loan portfolio (B)	(271)			(308)			(312)			(335)			(287)			(274)			(236)			(213)			(1,226)			(1,010)
Adjusted net interest income (C)	$	2,434		$	2,356		$	2,227		$	2,210		$	2,190		$	2,112		$	1,983		$	1,960		$	9,227		$	8,245
Average Card Member loans (billions)	$	85.2		$	83.3		$	81.9		$	80.6		$	79.4		$	76.4		$	74.1		$	72.7		$	82.8		$	75.8
Net interest income divided by average Card Member loans (D)	10.7		%	10.6		%	10.1		%	10.2		%	10.2		%	10.3		%	9.9		%	10.1		%	10.4		%	10.1		%
Net interest yield on average Card Member loans (E) *	11.3		%	11.2		%	10.9		%	11.1		%	10.9		%	11.0		%	10.7		%	10.9		%	11.1		%	10.9		%

Global Consumer Services Group
U.S.
Net interest income *	$	1,750		$	1,707		$	1,606		$	1,596		$	1,597		$	1,535		$	1,431		$	1,422		$	6,659		$	5,985
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *	73			68			67			69			66			62			60			44			277			232
Interest income not attributable to the Company's Card Member loan portfolio (B)	(58)			(56)			(52)			(53)			(51)			(46)			(42)			(39)			(219)			(178)
Adjusted net interest income (C)	$	1,765		$	1,719		$	1,621		$	1,612		$	1,612		$	1,551		$	1,449		$	1,427		$	6,717		$	6,039
Average Card Member loans (billions)	$	60.6		$	59.7		$	58.8		$	58.3		$	57.8		$	55.4		$	53.7		$	52.9		$	59.4		$	55.1
Net interest income divided by average Card Member loans (D) *	11.6		%	11.4		%	10.9		%	11.0		%	11.1		%	11.1		%	10.7		%	10.8		%	11.2		%	10.9		%
Net interest yield on average Card Member loans (E) *	11.6		%	11.4		%	11.1		%	11.2		%	11.1		%	11.1		%	10.8		%	10.9		%	11.3		%	11.0		%

Outside the U.S.
Net interest income *	$	280		$	258		$	245		$	241		$	230		$	225		$	216		$	219		$	1,024		$	890
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *	22			22			20			21			17			19			15			18			85			69
Interest income not attributable to the Company's Card Member loan portfolio (B)	(4)			(4)			(4)			(3)			—			(3)			(2)			(3)			(15)			(8)
Adjusted net interest income (C)	$	298		$	276		$	261		$	259		$	247		$	241		$	229		$	234		$	1,094		$	951
Average Card Member loans (billions)	$	10.5		$	10.0		$	9.9		$	9.7		$	9.3		$	8.9		$	8.8		$	8.6		$	10.0		$	8.9
Net interest income divided by average Card Member loans (D) *	10.7		%	10.3		%	9.9		%	9.9		%	9.9		%	10.1		%	9.8		%	10.2		%	10.2		%	10.0		%
Net interest yield on average Card Member loans (E) *	11.3		%	11.0		%	10.6		%	10.9		%	10.6		%	10.7		%	10.5		%	11.0		%	10.9		%	10.7		%

Total
Net interest income *	$	2,030		$	1,965		$	1,851		$	1,837		$	1,827		$	1,760		$	1,647		$	1,641		$	7,683		$	6,875
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *	95			90			87			90			83			81			76			61			362			301
Interest income not attributable to the Company's Card Member loan portfolio (B)	(62)			(60)			(56)			(56)			(51)			(49)			(45)			(41)			(234)			(186)
Adjusted net interest income (C)	$	2,063		$	1,995		$	1,882		$	1,871		$	1,859		$	1,792		$	1,678		$	1,661		$	7,811		$	6,990
Average Card Member loans (billions)	$	71.1		$	69.7		$	68.7		$	68.0		$	67.1		$	64.4		$	62.5		$	61.6		$	69.4		$	64.0