AXP 8-K
American Express Co (AXP)
8-K
2022-07-22
For: 2022-07-22
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April 09, 2026
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): July 22, 2022
(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 July 22, 2022, American Express Company (the “Company”) issued a press release regarding its financial results for the second 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 second 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 | |||||
| 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: Corporate Secretary | ||||||||
Date: July 22, 2022
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EXHIBIT 99.1
| NEWS RELEASE | NEWS RELEASE | NEWS RELEASE | NEWS RELEASE | ||||||||
FOR IMMEDIATE RELEASE
Media Contacts:
Leah M. Gerstner, [email protected], +1.212.640.3174
Andrew R. Johnson, [email protected], +1.212.640.8610
Investors/Analysts Contacts:
Kerri S. Bernstein, [email protected], +1.212.640.5574
Michelle A. Scianni, [email protected], +1.212.640.5574
AMERICAN EXPRESS SECOND-QUARTER REVENUE INCREASES 31% TO $13.4 BILLION
RECORD CARD MEMBER SPENDING DRIVEN BY ROBUST TRAVEL AND ENTERTAINMENT REBOUND
EXCELLENT CREDIT PERFORMANCE REFLECTS STRENGTH OF PREMIUM CUSTOMER BASE
SECOND-QUARTER EARNINGS PER SHARE WAS $2.57
($ in millions, except per share amounts, and where indicated)
| Quarters Ended June 30, | Percentage Inc/(Dec) | Six Months Ended June 30, | Percentage Inc/(Dec) | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| Total Network Volumes (Billions) | $394.8 | $316.1 | 25 | $745.1 | $585.4 | 27 | ||||||||||||||
| Total Revenues Net of Interest Expense | $13,395 | $10,243 | 31 | $25,130 | $19,307 | 30 | ||||||||||||||
| Total Provisions for Credit Losses | $410 | $(606) | # | $377 | $(1,281) | # | ||||||||||||||
| Net Income | $1,964 | $2,280 | (14) | $4,063 | $4,515 | (10) | ||||||||||||||
Diluted Earnings Per Common Share 1 | $2.57 | $2.80 | (8) | $5.30 | $5.54 | (4) | ||||||||||||||
| Average Diluted Common Shares Outstanding | 753 | 802 | (6) | 756 | 803 | (6) | ||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||
New York – July 22, 2022 – American Express Company (NYSE: AXP) today reported second-quarter net income of $2.0 billion, or $2.57 per share, compared with net income of $2.3 billion, or $2.80 per share, a year ago.
“We had an outstanding second quarter, with record levels of revenue and Card Member spending, reflecting the strength of our global customer base and continued momentum across our business,” said Stephen J. Squeri, Chairman and Chief Executive Officer.
“Card Member spending was up 30 percent from a year earlier on an FX-adjusted basis, driven by the robust rebound in global Travel and Entertainment spending, which surpassed pre-pandemic levels for the first time in April and was led by strong growth in consumer and SME spending and a significant uptick in corporate travel. Goods and Services spending,
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which is the largest category of spending on our network, continued its strong growth in the quarter, and spending by Millennial and Gen Z Card Members increased 48 percent on an FX-adjusted basis over last year.
“We added 3.2 million new proprietary cards in the quarter, driven by continued strong demand for our premium products. Acquisitions of our U.S. Consumer Platinum, Gold and Delta co-brand Cards each reached all-time highs in the quarter, and we have maintained high levels of customer retention. Our credit performance remains exceptional, with delinquencies and write-offs near historical lows.
“We have been able to deliver exceptional results while navigating a complex macroeconomic environment because of a number of factors, including the scale and strength of our global customer base, the decisions we made through the pandemic and recovery to support our customers and seize on growth opportunities, and our continued focus on enhancing our value propositions and bringing new customers into the franchise. As we look ahead, we remain confident in our ability to successfully execute against our long-term growth plan aspirations.”
Second-quarter consolidated total revenues net of interest expense were $13.4 billion, up 31 percent from $10.2 billion a year ago. The increase primarily reflected growth in Card Member spending compared to the prior year.
Consolidated provisions for credit losses were $410 million, compared with a benefit of $606 million a year ago. The change primarily reflected a small net reserve build in the current quarter compared with a $866 million reserve release a year ago. Credit metrics remained near historic lows in the current quarter.
Consolidated expenses were $10.4 billion, up 32 percent from $7.9 billion a year ago. Customer engagement costs increased, primarily driven by a 25 percent increase in network volumes and higher usage of travel-related benefits. Operating expenses also increased, reflecting net gains on Amex Ventures investments in the prior year and increased compensation costs.
The consolidated effective tax rate was 22.8 percent, up from 22.4 percent a year ago.
Based on performance to date, the company is raising its full-year revenue growth guidance from a range of 18% to 20% to a range of 23% to 25%; the company is maintaining its full-year EPS guidance range of $9.25 to $9.65.
Global Consumer Services Group reported second-quarter pretax income of $1.4 billion, compared with $1.9 billion a year ago.
Total revenues net of interest expense were $7.8 billion, up 29 percent from $6.0 billion a year ago. The increase primarily reflected growth in Card Member spending compared to the prior year.
Provisions for credit losses were $275 million, compared with a benefit of $343 million a year ago. The change primarily reflected a small net reserve build in the current quarter compared with a reserve release of $579 million a year ago.
Total expenses were $6.1 billion, up 35 percent from $4.5 billion a year ago, reflecting higher customer engagement costs primarily driven by increased network volumes and higher usage of travel-related benefits. Operating expenses were also higher as a result of increased compensation, technology and servicing-related costs.
Global Commercial Services reported second-quarter pretax income of $817 million, compared with $835 million a year ago.
Total revenues net of interest expense were $4.0 billion, up 30 percent from $3.0 billion a year ago. The increase primarily reflected growth in Card Member spending compared to the prior year.
Provisions for credit losses were $131 million, compared with a benefit of $236 million a year ago. The change primarily reflected a small reserve build in the current quarter compared with a reserve release a year ago.
Total expenses were $3.0 billion, up 24 percent from $2.4 billion a year ago, reflecting higher customer engagement costs primarily driven by increased network volumes. Operating expenses were also higher primarily as a result of increased compensation, technology and servicing-related costs.
Global Merchant and Network Services reported second-quarter pretax income of $815 million, compared with $527 million a year ago.
Total revenues net of interest expense were $1.6 billion, up 32 percent from $1.2 billion a year ago, primarily reflecting an increase in network volumes compared to the prior year.
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Total expenses were $800 million, up 10 percent from $728 million a year ago, primarily reflecting 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 second-quarter pretax loss of $493 million, compared with a pretax loss of $306 million a year ago. The decline was primarily driven by net gains on Amex Ventures investments in the prior year.
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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: 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 second 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 second-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” 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 the continued effects of the pandemic; Russia’s invasion of 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
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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 demand in T&E categories, not growing in line with 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
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(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; 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; 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.
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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, 2021, Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and the company’s other reports filed with the Securities and Exchange Commission.
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| 1 | Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards and other items of $15 million and $16 million for the three months ended June 30, 2022 and 2021, respectively, and $31 million for both the six months ended June 30, 2022 and 2021, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2022 and 2021, and $29 million for both the six months ended June 30, 2022 and 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 June 30, 2022 apply to the period against which such results are being compared).
•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.
•SME refers to small and mid-sized businesses with less than $300 million in annual revenues.
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Exhibit 99.2
| American Express Company | (Preliminary) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages and per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YOY % change | YTD'22 | YTD'21 | YOY % change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discount revenue (A) | $ | 7,873 | $ | 6,835 | $ | 7,149 | $ | 6,369 | $ | 6,044 | 30 | $ | 14,708 | $ | 11,045 | 33 | |||||||||||||||||||||||||||||||||||||||||||
| Net card fees | 1,481 | 1,423 | 1,344 | 1,312 | 1,286 | 15 | 2,904 | 2,539 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Service fees and other revenue (B) | 1,265 | 906 | 1,134 | 839 | 705 | 79 | 2,171 | 1,343 | 62 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Processed revenue (C) | 416 | 372 | 410 | 414 | 390 | 7 | 788 | 732 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-interest revenues | 11,035 | 9,536 | 10,037 | 8,934 | 8,425 | 31 | 20,571 | 15,659 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest on loans | 2,707 | 2,473 | 2,356 | 2,256 | 2,094 | 29 | 5,180 | 4,238 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and dividends on investment securities | 22 | 13 | 17 | 18 | 24 | (8) | 35 | 48 | (27) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits with banks and other | 70 | 34 | 27 | 27 | 22 | # | 104 | 46 | # | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest income | 2,799 | 2,520 | 2,400 | 2,301 | 2,140 | 31 | 5,319 | 4,332 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 187 | 122 | 102 | 109 | 113 | 65 | 309 | 247 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt and other | 252 | 199 | 190 | 198 | 209 | 21 | 451 | 437 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest expense | 439 | 321 | 292 | 307 | 322 | 36 | 760 | 684 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 2,360 | 2,199 | 2,108 | 1,994 | 1,818 | 30 | 4,559 | 3,648 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 13,395 | 11,735 | 12,145 | 10,928 | 10,243 | 31 | 25,130 | 19,307 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Provisions for credit losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member receivables | 138 | 80 | 74 | (12) | (125) | # | 218 | (135) | # | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member loans | 272 | (111) | (9) | (177) | (396) | # | 161 | (969) | # | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | — | (2) | (12) | (2) | (85) | # | (2) | (177) | (99) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses | 410 | (33) | 53 | (191) | (606) | # | 377 | (1,281) | # | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 12,985 | 11,768 | 12,092 | 11,119 | 10,849 | 20 | 24,753 | 20,588 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member rewards | 3,591 | 3,111 | 3,032 | 3,020 | 2,712 | 32 | 6,702 | 4,955 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Business development | 1,404 | 1,043 | 1,128 | 943 | 889 | 58 | 2,447 | 1,691 | 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Card Member services | 678 | 626 | 665 | 579 | 432 | 57 | 1,304 | 749 | 74 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Marketing | 1,502 | 1,224 | 1,585 | 1,412 | 1,330 | 13 | 2,726 | 2,294 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 1,816 | 1,654 | 1,654 | 1,497 | 1,539 | 18 | 3,470 | 3,089 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Professional services | 501 | 472 | 607 | 490 | 458 | 9 | 973 | 861 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Data processing and equipment | 623 | 600 | 659 | 613 | 577 | 8 | 1,223 | 1,159 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other, net | 327 | 326 | 456 | 115 | (28) | # | 653 | (143) | # | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 10,442 | 9,056 | 9,786 | 8,669 | 7,909 | 32 | 19,498 | 14,655 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Pretax income | 2,543 | 2,712 | 2,306 | 2,450 | 2,940 | (14) | 5,255 | 5,933 | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax provision | 579 | 613 | 587 | 624 | 660 | (12) | 1,192 | 1,418 | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 1,964 | $ | 2,099 | $ | 1,719 | $ | 1,826 | $ | 2,280 | (14) | $ | 4,063 | $ | 4,515 | (10) | |||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common shareholders (D) | $ | 1,934 | $ | 2,069 | $ | 1,679 | $ | 1,783 | $ | 2,249 | (14) | $ | 4,003 | $ | 4,455 | (10) | |||||||||||||||||||||||||||||||||||||||||||
| Effective tax rate | 22.8 | % | 22.6 | % | 25.5 | % | 25.5 | % | 22.4 | % | 22.7 | % | 23.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Common Share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 2.57 | $ | 2.73 | $ | 2.19 | $ | 2.27 | $ | 2.81 | (9) | $ | 5.30 | $ | 5.55 | (5) | |||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding | 752 | 757 | 768 | 786 | 801 | (6) | 755 | 802 | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income attributable to common shareholders | $ | 2.57 | $ | 2.73 | $ | 2.18 | $ | 2.27 | $ | 2.80 | (8) | $ | 5.30 | $ | 5.54 | (4) | |||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding | 753 | 758 | 769 | 787 | 802 | (6) | 756 | 803 | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared per common share | $ | 0.52 | $ | 0.52 | $ | 0.43 | $ | 0.43 | $ | 0.43 | 21 | $ | 1.04 | $ | 0.86 | 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) | |||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YOY % change | |||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||
| Cash & cash equivalents | $ | 26 | $ | 28 | $ | 22 | $ | 28 | $ | 31 | (16) | |||||||||||||||||||||||||||
| Card Member receivables, less reserves | 56 | 53 | 54 | 49 | 48 | 17 | ||||||||||||||||||||||||||||||||
| Card Member loans, less reserves | 92 | 86 | 85 | 74 | 72 | 28 | ||||||||||||||||||||||||||||||||
| Investment securities | 4 | 4 | 3 | 10 | 12 | (67) | ||||||||||||||||||||||||||||||||
| Other (E) | 27 | 25 | 25 | 23 | 24 | 13 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 205 | $ | 196 | $ | 189 | $ | 184 | $ | 187 | 10 | |||||||||||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
| Customer deposits | $ | 96 | $ | 91 | $ | 84 | $ | 84 | $ | 85 | 13 | |||||||||||||||||||||||||||
| Short-term borrowings | 2 | 2 | 2 | 2 | 2 | — | ||||||||||||||||||||||||||||||||
| Long-term debt | 40 | 38 | 39 | 34 | 37 | 8 | ||||||||||||||||||||||||||||||||
| Other (E) | 44 | 43 | 42 | 40 | 37 | 19 | ||||||||||||||||||||||||||||||||
| Total liabilities | 182 | 174 | 167 | 160 | 161 | 13 | ||||||||||||||||||||||||||||||||
| Shareholders' Equity | 23 | 22 | 22 | 24 | 26 | (12) | ||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 205 | $ | 196 | $ | 189 | $ | 184 | $ | 187 | 10 | |||||||||||||||||||||||||||
| Return on average equity (F) | 34.4 | % | 37.7 | % | 33.7 | % | 29.2 | % | 36.5 | % | ||||||||||||||||||||||||||||
| Return on average common equity (F) | 36.5 | % | 40.0 | % | 35.8 | % | 31.0 | % | 38.4 | % | ||||||||||||||||||||||||||||
| Book value per common share (dollars) | $ | 28.82 | $ | 27.56 | $ | 27.05 | $ | 28.39 | $ | 30.02 | (4) | |||||||||||||||||||||||||||
See Appendix IV for footnote references
2
| American Express Company | (Preliminary) | ||||
| Consolidated Capital | |||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | ||||||||||||||||||||||||||||
| Shares Outstanding (in millions) | ||||||||||||||||||||||||||||||||
| Beginning of period | 755 | 761 | 778 | 798 | 803 | |||||||||||||||||||||||||||
| Repurchase of common shares | (4) | (8) | (17) | (20) | (6) | |||||||||||||||||||||||||||
| Net impact of employee benefit plans and others | — | 2 | — | — | 1 | |||||||||||||||||||||||||||
| End of period | 751 | 755 | 761 | 778 | 798 | |||||||||||||||||||||||||||
| Risk-Based Capital Ratios - Basel III ($ in billions) | ||||||||||||||||||||||||||||||||
| Common Equity Tier 1/Risk Weighted Assets (RWA) | 10.3 | % | 10.4 | % | 10.5 | % | 12.6 | % | 14.2 | % | ||||||||||||||||||||||
| Tier 1 | 11.2 | % | 11.4 | % | 11.5 | % | 14.2 | % | 15.3 | % | ||||||||||||||||||||||
| Total | 13.0 | % | 12.8 | % | 12.9 | % | 15.7 | % | 16.8 | % | ||||||||||||||||||||||
| Common Equity Tier 1 | $ | 18.5 | $ | 17.6 | $ | 17.6 | $ | 19.1 | $ | 21.0 | ||||||||||||||||||||||
| Tier 1 Capital | $ | 20.2 | $ | 19.3 | $ | 19.2 | $ | 21.4 | $ | 22.6 | ||||||||||||||||||||||
| Tier 2 Capital | $ | 3.2 | $ | 2.4 | $ | 2.3 | $ | 2.2 | $ | 2.2 | ||||||||||||||||||||||
| Total Capital | $ | 23.4 | $ | 21.6 | $ | 21.5 | $ | 23.7 | $ | 24.8 | ||||||||||||||||||||||
| RWA | $ | 179.2 | $ | 169.4 | $ | 166.5 | $ | 150.7 | $ | 147.5 | ||||||||||||||||||||||
| Tier 1 Leverage | 10.3 | % | 10.4 | % | 10.5 | % | 11.8 | % | 12.2 | % | ||||||||||||||||||||||
| Average Total Assets to calculate the Tier 1 Leverage Ratio (G) | $ | 195.8 | $ | 185.3 | $ | 183.5 | $ | 182.1 | $ | 185.6 | ||||||||||||||||||||||
See Appendix IV for footnote references
3
| American Express Company | (Preliminary) | |||||||
| Selected Card Related Statistical Information | ||||||||
| (Billions, except percentages and where indicated) | ||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YOY % change | YTD'22 | YTD'21 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Network volumes (H) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 276.7 | $ | 244.5 | $ | 256.2 | $ | 232.0 | $ | 222.6 | 24 | $ | 521.2 | $ | 408.9 | 27 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 118.1 | 105.8 | 111.9 | 98.7 | 93.5 | 26 | 223.9 | 176.5 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 394.8 | $ | 350.3 | $ | 368.1 | $ | 330.7 | $ | 316.1 | 25 | $ | 745.1 | $ | 585.4 | 27 | ||||||||||||||||||||||||||||||||||||||||
| Billed business (H) | $ | 340.9 | $ | 301.0 | $ | 316.2 | $ | 280.4 | $ | 267.8 | 27 | $ | 641.9 | $ | 493.3 | 30 | ||||||||||||||||||||||||||||||||||||||||
| Processed volumes (H) | 53.9 | 49.3 | 51.9 | 50.3 | 48.3 | 12 | 103.2 | 92.1 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 394.8 | $ | 350.3 | $ | 368.1 | $ | 330.7 | $ | 316.1 | 25 | $ | 745.1 | $ | 585.4 | 27 | ||||||||||||||||||||||||||||||||||||||||
| Cards-in-force (millions) (I) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 59.1 | 57.7 | 56.4 | 56.0 | 54.8 | 8 | 59.1 | 54.8 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 68.4 | 66.9 | 65.3 | 63.2 | 60.2 | 14 | 68.4 | 60.2 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 127.5 | 124.6 | 121.7 | 119.2 | 115.0 | 11 | 127.5 | 115.0 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary | 74.2 | 72.8 | 71.4 | 70.6 | 69.6 | 7 | 74.2 | 69.6 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||
| Basic cards-in-force (millions) (I) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 46.6 | 45.4 | 44.3 | 44.0 | 43.0 | 8 | 46.6 | 43.0 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 59.5 | 57.9 | 56.4 | 54.3 | 51.2 | 16 | 59.5 | 51.2 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 106.1 | 103.3 | 100.7 | 98.3 | 94.2 | 13 | 106.1 | 94.2 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||
| Average proprietary basic Card Member spending (dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 6,609 | $ | 5,965 | $ | 6,351 | $ | 5,771 | $ | 5,607 | 18 | $ | 12,585 | $ | 10,331 | 22 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 4,644 | $ | 4,165 | $ | 4,502 | $ | 3,893 | $ | 3,686 | 26 | $ | 8,811 | $ | 6,854 | 29 | ||||||||||||||||||||||||||||||||||||||||
| Average | $ | 6,052 | $ | 5,452 | $ | 5,822 | $ | 5,231 | $ | 5,051 | 20 | $ | 11,512 | $ | 9,322 | 23 | ||||||||||||||||||||||||||||||||||||||||
| Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 83.1 | $ | 77.2 | $ | 76.9 | $ | 67.5 | $ | 66.2 | 26 | $ | 83.1 | $ | 66.2 | 26 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 12.3 | 11.6 | 11.7 | 9.5 | 9.4 | 31 | 12.3 | 9.4 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 95.4 | $ | 88.8 | $ | 88.6 | $ | 77.0 | $ | 75.6 | 26 | $ | 95.4 | $ | 75.6 | 26 | ||||||||||||||||||||||||||||||||||||||||
| Average discount rate (J) | 2.35 | % | 2.32 | % | 2.30 | % | 2.32 | % | 2.30 | % | 2.34 | % | 2.28 | % | ||||||||||||||||||||||||||||||||||||||||||
| Average fee per card (dollars) (K) | $ | 81 | $ | 79 | $ | 76 | $ | 75 | $ | 74 | 9 | $ | 80 | $ | 73 | 10 | ||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references
4
| American Express Company | (Preliminary) | |||||||
| Selected Credit Related Statistical Information | ||||||||
| (Billions, except percentages and where indicated) | ||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YOY % change | YTD'22 | YTD'21 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 83.1 | $ | 77.2 | $ | 76.9 | $ | 67.5 | $ | 66.2 | 26 | $ | 83.1 | $ | 66.2 | 26 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 12.3 | $ | 11.6 | $ | 11.7 | $ | 9.5 | $ | 9.4 | 31 | $ | 12.3 | $ | 9.4 | 31 | ||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 95.4 | $ | 88.8 | $ | 88.6 | $ | 77.0 | $ | 75.6 | 26 | $ | 95.4 | $ | 75.6 | 26 | ||||||||||||||||||||||||||||||||||||||||
| Credit loss reserves (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 2,981 | $ | 3,305 | $ | 3,489 | $ | 3,835 | $ | 4,467 | (33) | $ | 3,305 | $ | 5,344 | (38) | ||||||||||||||||||||||||||||||||||||||||
| Provisions - principal, interest and fees | 272 | (111) | (9) | (177) | (396) | # | 161 | (969) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs - principal less recoveries | (192) | (165) | (128) | (118) | (185) | 4 | (357) | (426) | (16) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs - interest and fees less recoveries | (55) | (50) | (43) | (43) | (58) | (5) | (105) | (121) | (13) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other (L) | (9) | 2 | (4) | (8) | 7 | # | (7) | 7 | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 2,997 | $ | 2,981 | $ | 3,305 | $ | 3,489 | $ | 3,835 | (22) | $ | 2,997 | $ | 3,835 | (22) | ||||||||||||||||||||||||||||||||||||||||
| % of loans | 3.1 | % | 3.4 | % | 3.7 | % | 4.5 | % | 5.1 | % | 3.1 | % | 5.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| % of past due | 441 | % | 455 | % | 555 | % | 666 | % | 782 | % | 441 | % | 782 | % | ||||||||||||||||||||||||||||||||||||||||||
| Average loans | $ | 92.4 | $ | 86.8 | $ | 82.9 | $ | 76.4 | $ | 72.8 | 27 | $ | 89.7 | $ | 72.0 | 25 | ||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (M) | 0.8 | % | 0.8 | % | 0.6 | % | 0.6 | % | 1.0 | % | 0.8 | % | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (M) | 1.1 | % | 1.0 | % | 0.8 | % | 0.8 | % | 1.3 | % | 1.0 | % | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 0.7 | % | 0.7 | % | 0.7 | % | 0.7 | % | 0.6 | % | 0.7 | % | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 10.2 | % | 10.1 | % | 10.2 | % | 10.4 | % | 10.0 | % | 10.2 | % | 10.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 10.4 | % | 10.5 | % | 10.3 | % | 10.8 | % | 10.6 | % | 10.5 | % | 10.9 | % | ||||||||||||||||||||||||||||||||||||||||||
| Worldwide Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 39.4 | $ | 38.2 | $ | 38.4 | $ | 34.8 | $ | 33.9 | 16 | $ | 39.4 | $ | 33.9 | 16 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 16.6 | $ | 15.0 | $ | 15.2 | $ | 14.0 | $ | 13.7 | 21 | $ | 16.6 | $ | 13.7 | 21 | ||||||||||||||||||||||||||||||||||||||||
| Total receivables | $ | 56.0 | $ | 53.2 | $ | 53.6 | $ | 48.8 | $ | 47.6 | 18 | $ | 56.0 | $ | 47.6 | 18 | ||||||||||||||||||||||||||||||||||||||||
| Credit loss reserves (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 76 | $ | 64 | $ | 30 | $ | 73 | $ | 202 | (62) | $ | 64 | $ | 267 | (76) | ||||||||||||||||||||||||||||||||||||||||
| Provisions - principal and fees | 138 | 80 | 74 | (12) | (125) | # | 218 | (135) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs - principal and fees less recoveries (O) | (95) | (67) | (40) | (32) | (4) | # | (162) | (57) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Other (L) | — | (1) | — | 1 | — | — | (1) | (2) | (50) | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 119 | $ | 76 | $ | 64 | $ | 30 | $ | 73 | 63 | $ | 119 | $ | 73 | 63 | ||||||||||||||||||||||||||||||||||||||||
| % of receivables | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (M)(O) | 0.7 | % | 0.5 | % | 0.3 | % | 0.3 | % | — | % | 0.6 | % | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate, excluding Global Corporate Payments (GCP) (principal and fees) (M)(P) | 0.8 | % | 0.6 | % | 0.4 | % | 0.3 | % | 0.3 | % | 0.7 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate, excluding GCP (principal only) (M)(P) | 0.8 | % | 0.6 | % | 0.3 | % | 0.2 | % | 0.3 | % | 0.7 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total, excluding GCP (P) | 0.8 | % | 0.8 | % | 0.6 | % | 0.5 | % | 0.5 | % | 0.8 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other loans (E) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other loans | $ | 4.0 | $ | 3.3 | $ | 2.9 | $ | 2.4 | $ | 2.2 | 82 | $ | 4.0 | $ | 2.2 | 82 | ||||||||||||||||||||||||||||||||||||||||
| Credit loss reserves (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 48 | $ | 52 | $ | 66 | $ | 72 | $ | 143 | (66) | $ | 52 | $ | 238 | (78) | ||||||||||||||||||||||||||||||||||||||||
| Provisions | (6) | (2) | (12) | (5) | (65) | (91) | (8) | (147) | $ | (95) | ||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs | (4) | (2) | (2) | — | (5) | (20) | (6) | (19) | (68) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other (L) | — | — | — | (1) | (1) | # | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 38 | $ | 48 | $ | 52 | $ | 66 | $ | 72 | (47) | $ | 38 | $ | 72 | $ | (47) | |||||||||||||||||||||||||||||||||||||||
| % of other loans | 1.0 | % | 1.5 | % | 1.8 | % | 2.8 | % | 3.3 | % | 1.0 | % | 3.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Other receivables (E) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other receivables | $ | 3.0 | $ | 2.7 | $ | 2.7 | $ | 2.7 | $ | 2.9 | 3 | $ | 3.0 | $ | 2.9 | 3 | ||||||||||||||||||||||||||||||||||||||||
| Credit loss reserves (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning balance | $ | 22 | $ | 25 | $ | 33 | $ | 39 | $ | 67 | (67) | $ | 25 | $ | 85 | (71) | ||||||||||||||||||||||||||||||||||||||||
| Provisions | 6 | — | — | 3 | (20) | # | 6 | (30) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs | (6) | (3) | (8) | (9) | (8) | (25) | (9) | (16) | (44) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other (L) | 1 | — | — | — | — | — | 1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending balance | $ | 23 | $ | 22 | $ | 25 | $ | 33 | $ | 39 | (41) | $ | 23 | $ | 39 | (41) | ||||||||||||||||||||||||||||||||||||||||
| % of other receivables | 0.8 | % | 0.8 | % | 0.9 | % | 1.2 | % | 1.3 | % | 0.8 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| # - 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 | ||||||||||||||||||||||||||||
| Q2'22 | ||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 5,792 | $ | 3,643 | $ | 1,551 | $ | 49 | $ | 11,035 | ||||||||||||||||||||||
| Interest income | 2,217 | 490 | 5 | 87 | 2,799 | |||||||||||||||||||||||||||
| Interest expense | 238 | 163 | (61) | 99 | 439 | |||||||||||||||||||||||||||
| Total revenues net of interest expense | 7,771 | 3,970 | 1,617 | 37 | 13,395 | |||||||||||||||||||||||||||
| Total provisions for credit losses | 275 | 131 | 2 | 2 | 410 | |||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 7,496 | 3,839 | 1,615 | 35 | 12,985 | |||||||||||||||||||||||||||
| Total expenses | 6,092 | 3,022 | 800 | 528 | 10,442 | |||||||||||||||||||||||||||
| Pretax income (loss) | 1,404 | 817 | 815 | (493) | 2,543 | |||||||||||||||||||||||||||
| Q2'21 | ||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 4,466 | $ | 2,811 | $ | 1,204 | $ | (56) | $ | 8,425 | ||||||||||||||||||||||
| Interest income | 1,749 | 345 | 4 | 42 | 2,140 | |||||||||||||||||||||||||||
| Interest expense | 174 | 111 | (20) | 57 | 322 | |||||||||||||||||||||||||||
| Total revenues net of interest expense | 6,041 | 3,045 | 1,228 | (71) | 10,243 | |||||||||||||||||||||||||||
| Total provisions for credit losses | (343) | (236) | (27) | — | (606) | |||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 6,384 | 3,281 | 1,255 | (71) | 10,849 | |||||||||||||||||||||||||||
| Total expenses | 4,500 | 2,446 | 728 | 235 | 7,909 | |||||||||||||||||||||||||||
| Pretax income (loss) | 1,884 | 835 | 527 | (306) | 2,940 | |||||||||||||||||||||||||||
| YOY % change | ||||||||||||||||||||||||||||||||
| Non-interest revenues | 30 | 30 | 29 | # | 31 | |||||||||||||||||||||||||||
| Interest income | 27 | 42 | 25 | # | 31 | |||||||||||||||||||||||||||
| Interest expense | 37 | 47 | # | 74 | 36 | |||||||||||||||||||||||||||
| Total revenues net of interest expense | 29 | 30 | 32 | # | 31 | |||||||||||||||||||||||||||
| Total provisions for credit losses | # | # | # | — | # | |||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 17 | 17 | 29 | # | 20 | |||||||||||||||||||||||||||
| Total expenses | 35 | 24 | 10 | # | 32 | |||||||||||||||||||||||||||
| Pretax income (loss) | (25) | (2) | 55 | (61) | (14) | |||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||||||||||||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references
6
| American Express Company | (Preliminary) | |||||||||||||||||||
| Network Volumes Related Growth | ||||||||||||||||||||
| YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | FX-Adjusted (Q) | Reported | FX-Adjusted (Q) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YTD'22 | YTD'22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Network volumes (H) | 25% | 30% | 29% | 29% | 50% | 28% | 32% | 30% | 29% | 46% | 27% | 30% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total billed business (H) | 27 | 34 | 32 | 31 | 53 | 30 | 35 | 33 | 31 | 51 | 30 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer billed business | 27 | 37 | 34 | 34 | 62 | 31 | 39 | 35 | 34 | 58 | 32 | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial billed business | 28 | 30 | 29 | 28 | 45 | 30 | 32 | 30 | 28 | 43 | 29 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Processed volumes (H) | 12 | 12 | 13 | 20 | 33 | 19 | 15 | 15 | 18 | 26 | 12 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Network volumes (H) | 24 | 31 | 31 | 33 | 53 | n/a | n/a | n/a | n/a | n/a | 27 | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total billed business (H) | 26 | 33 | 33 | 32 | 53 | n/a | n/a | n/a | n/a | n/a | 29 | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer billed business | 27 | 38 | 37 | 37 | 63 | n/a | n/a | n/a | n/a | n/a | 32 | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial billed business | 26 | 30 | 29 | 28 | 44 | n/a | n/a | n/a | n/a | n/a | 28 | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Network volumes (H) | 26 | 27 | 23 | 22 | 42 | 39 | 33 | 26 | 20 | 32 | 27 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total billed business (H) | 31 | 34 | 29 | 28 | 55 | 45 | 41 | 32 | 25 | 43 | 33 | 43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer billed business | 28 | 36 | 28 | 27 | 59 | 42 | 43 | 32 | 24 | 46 | 32 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial billed business | 37 | 32 | 30 | 28 | 49 | 51 | 39 | 34 | 27 | 38 | 35 | 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asia Pacific, Australia & New Zealand network volumes | 17 | 13 | 12 | 10 | 28 | 30 | 19 | 16 | 10 | 20 | 15 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Latin America, Canada & Caribbean network volumes | 43 | 39 | 36 | 39 | 55 | 47 | 40 | 38 | 35 | 45 | 41 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Europe, the Middle East & Africa network volumes | 34 | 50 | 38 | 36 | 66 | 49 | 57 | 40 | 31 | 51 | 41 | 53 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Merchant Industry Metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide billed business (H) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goods & Services (G&S)-related (74% of Q2'22 worldwide billed business) | 15 | 19 | 19 | 18 | 34 | 18 | 21 | 19 | 18 | 31 | 14 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| T&E-related (26% of Q2'22 worldwide billed business) | 80 | 119 | 130 | 126 | 347 | 84 | 121 | 132 | 124 | 340 | 126 | 130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Airline-related (6% of Q2'22 worldwide billed business) | 142 | 241 | 271 | 429 | # | 148 | 246 | 274 | 426 | # | 265 | 272 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. billed business (H) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| G&S-related (75% of Q2'22 U.S. billed business) | 17 | 20 | 20 | 19 | 33 | n/a | n/a | n/a | n/a | n/a | 15 | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| T&E-related (25% of Q2'22 U.S. billed business) | 68 | 110 | 134 | 141 | 350 | n/a | n/a | n/a | n/a | n/a | 114 | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Airline-related (6% of Q2'22 U.S. billed business) | 113 | 217 | 264 | 421 | # | n/a | n/a | n/a | n/a | n/a | 232 | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 1,000 percent or more. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references
7
| Global Consumer Services Group | (Preliminary) | |||||||
| Selected Income Statement and Statistical Information | ||||||||
| (Millions, except percentages) | ||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YOY % change | YTD'22 | YTD'21 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 5,792 | $ | 5,049 | $ | 5,181 | $ | 4,704 | $ | 4,466 | 30 | $ | 10,841 | $ | 8,275 | 31 | ||||||||||||||||||||||||||||||||||||||||
| Interest income | 2,217 | 2,040 | 1,955 | 1,879 | 1,749 | 27 | 4,257 | 3,557 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 238 | 192 | 181 | 174 | 174 | 37 | 430 | 362 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 1,979 | 1,848 | 1,774 | 1,705 | 1,575 | 26 | 3,827 | 3,195 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 7,771 | 6,897 | 6,955 | 6,409 | 6,041 | 29 | 14,668 | 11,470 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses | 275 | (55) | 27 | (126) | (343) | # | 220 | (846) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 7,496 | 6,952 | 6,928 | 6,535 | 6,384 | 17 | 14,448 | 12,316 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 6,092 | 5,217 | 5,619 | 5,043 | 4,500 | 35 | 11,309 | 8,287 | 36 | |||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income | $ | 1,404 | $ | 1,735 | $ | 1,309 | $ | 1,492 | $ | 1,884 | (25) | $ | 3,139 | $ | 4,029 | (22) | ||||||||||||||||||||||||||||||||||||||||
| (Billions, except percentages and where indicated) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Billed business (H) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 141.1 | $ | 122.7 | $ | 129.5 | $ | 114.9 | $ | 110.8 | 27 | $ | 263.7 | $ | 199.8 | 32 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 45.8 | $ | 41.1 | $ | 44.6 | $ | 38.2 | $ | 35.8 | 28 | $ | 87.0 | $ | 66.1 | 32 | ||||||||||||||||||||||||||||||||||||||||
| Total | $ | 186.9 | $ | 163.8 | $ | 174.1 | $ | 153.1 | $ | 146.6 | 27 | $ | 350.7 | $ | 265.9 | 32 | ||||||||||||||||||||||||||||||||||||||||
| Proprietary cards-in-force (millions) (I) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 40.3 | 39.8 | 39.0 | 38.7 | 38.1 | 6 | 40.3 | 38.1 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 17.5 | 17.2 | 17.0 | 16.8 | 16.7 | 5 | 17.5 | 16.7 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 57.8 | 57.0 | 56.0 | 55.5 | 54.8 | 5 | 57.8 | 54.8 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
| Proprietary basic cards-in-force (millions) (I) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 28.3 | 27.9 | 27.3 | 27.2 | 26.9 | 5 | 28.3 | 26.9 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 12.3 | 12.1 | 11.9 | 11.7 | 11.6 | 6 | 12.3 | 11.6 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | 40.6 | 40.0 | 39.2 | 38.9 | 38.5 | 5 | 40.6 | 38.5 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
| Average proprietary basic Card Member spending (dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S | $ | 5,028 | $ | 4,444 | $ | 4,755 | $ | 4,255 | $ | 4,138 | 22 | $ | 9,480 | $ | 7,474 | 27 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 3,761 | $ | 3,434 | $ | 3,770 | $ | 3,278 | $ | 3,087 | 22 | $ | 7,198 | $ | 5,704 | 26 | ||||||||||||||||||||||||||||||||||||||||
| Average | $ | 4,645 | $ | 4,138 | $ | 4,457 | $ | 3,960 | $ | 3,821 | 22 | $ | 8,789 | $ | 6,939 | 27 | ||||||||||||||||||||||||||||||||||||||||
| Segment assets | $ | 107.8 | $ | 101.0 | $ | 102.1 | $ | 91.8 | $ | 89.7 | 20 | $ | 107.8 | $ | 89.7 | 20 | ||||||||||||||||||||||||||||||||||||||||
| Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 63.7 | $ | 59.1 | $ | 59.8 | $ | 52.6 | $ | 51.8 | 23 | $ | 63.7 | $ | 51.8 | 23 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 11.0 | $ | 10.4 | $ | 10.7 | $ | 9.0 | $ | 8.8 | 25 | $ | 11.0 | $ | 8.8 | 25 | ||||||||||||||||||||||||||||||||||||||||
| Total | $ | 74.7 | $ | 69.5 | $ | 70.5 | $ | 61.6 | $ | 60.6 | 23 | $ | 74.7 | $ | 60.6 | 23 | ||||||||||||||||||||||||||||||||||||||||
| Average loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 61.6 | $ | 58.1 | $ | 56.1 | $ | 52.3 | $ | 49.9 | 23 | $ | 60.0 | $ | 49.6 | 21 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 10.8 | $ | 10.4 | $ | 10.0 | $ | 8.9 | $ | 8.4 | 29 | $ | 10.6 | $ | 8.4 | 26 | ||||||||||||||||||||||||||||||||||||||||
| Total | $ | 72.4 | $ | 68.5 | $ | 66.1 | $ | 61.2 | $ | 58.3 | 24 | $ | 70.6 | $ | 58.0 | 22 | ||||||||||||||||||||||||||||||||||||||||
| Lending Credit Metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (M) | 0.8 | % | 0.8 | % | 0.6 | % | 0.5 | % | 0.9 | % | 0.8 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (M) | 1.1 | % | 1.0 | % | 0.8 | % | 0.8 | % | 1.2 | % | 1.1 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 0.7 | % | 0.8 | % | 0.7 | % | 0.7 | % | 0.6 | % | 0.7 | % | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (M) | 1.1 | % | 1.0 | % | 0.9 | % | 1.3 | % | 2.2 | % | 1.1 | % | 2.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (M) | 1.4 | % | 1.3 | % | 1.2 | % | 1.7 | % | 2.9 | % | 1.3 | % | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 0.9 | % | 0.9 | % | 0.8 | % | 1.0 | % | 1.1 | % | 0.9 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (M) | 0.9 | % | 0.8 | % | 0.6 | % | 0.7 | % | 1.1 | % | 0.8 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) (M) | 1.2 | % | 1.1 | % | 0.9 | % | 0.9 | % | 1.5 | % | 1.1 | % | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 0.7 | % | 0.8 | % | 0.7 | % | 0.7 | % | 0.7 | % | 0.7 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 10.9 | % | 10.8 | % | 10.7 | % | 11.1 | % | 10.8 | % | 10.8 | % | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | 11.3 | % | 11.3 | % | 11.2 | % | 11.6 | % | 11.4 | % | 11.3 | % | 11.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | 9.2 | % | 9.3 | % | 8.0 | % | 9.3 | % | 9.9 | % | 9.2 | % | 10.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total | 11.0 | % | 11.0 | % | 10.7 | % | 11.3 | % | 11.1 | % | 11.0 | % | 11.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 13.8 | $ | 13.4 | $ | 14.7 | $ | 12.6 | $ | 12.9 | 7 | $ | 13.8 | $ | 12.9 | 7 | ||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | $ | 7.6 | $ | 7.2 | $ | 7.7 | $ | 6.9 | $ | 7.0 | 9 | $ | 7.6 | $ | 7.0 | 9 | ||||||||||||||||||||||||||||||||||||||||
| Total receivables | $ | 21.4 | $ | 20.6 | $ | 22.4 | $ | 19.5 | $ | 19.9 | 8 | $ | 21.4 | $ | 19.9 | 8 | ||||||||||||||||||||||||||||||||||||||||
| Charge Credit Metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (M) | 0.5 | % | 0.2 | % | 0.2 | % | — | % | — | % | 0.4 | % | — | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (M) | 0.5 | % | 0.3 | % | 0.2 | % | 0.1 | % | — | % | 0.4 | % | — | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 0.6 | % | 0.6 | % | 0.4 | % | 0.4 | % | 0.3 | % | 0.6 | % | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Outside the U.S. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (M) | 1.1 | % | 0.9 | % | 0.5 | % | 0.6 | % | 1.0 | % | 1.0 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (M) | 1.2 | % | 0.9 | % | 0.6 | % | 0.7 | % | 1.1 | % | 1.1 | % | 1.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 1.0 | % | 1.0 | % | 0.7 | % | 0.7 | % | 0.7 | % | 1.0 | % | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) (M) | 0.7 | % | 0.5 | % | 0.3 | % | 0.2 | % | 0.3 | % | 0.6 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (M) | 0.8 | % | 0.5 | % | 0.3 | % | 0.3 | % | 0.4 | % | 0.6 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total | 0.8 | % | 0.7 | % | 0.5 | % | 0.5 | % | 0.4 | % | 0.8 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||
See Appendix IV for footnote references
8
| Global Commercial Services | (Preliminary) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selected Income Statement and Statistical Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YOY % change | YTD'22 | YTD'21 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 3,643 | $ | 3,180 | $ | 3,257 | $ | 2,975 | $ | 2,811 | 30 | $ | 6,823 | $ | 5,253 | 30 | ||||||||||||||||||||||||||||||||||||||||
| Interest income | 490 | 436 | 401 | 378 | 345 | 42 | 926 | 681 | 36 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 163 | 122 | 111 | 111 | 111 | 47 | 285 | 227 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 327 | 314 | 290 | 267 | 234 | 40 | 641 | 454 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 3,970 | 3,494 | 3,547 | 3,242 | 3,045 | 30 | 7,464 | 5,707 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses (O) | 131 | 21 | 25 | (66) | (236) | # | 152 | (397) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 3,839 | 3,473 | 3,522 | 3,308 | 3,281 | 17 | 7,312 | 6,104 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 3,022 | 2,669 | 2,822 | 2,594 | 2,446 | 24 | 5,691 | 4,594 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income (loss) | $ | 817 | $ | 804 | $ | 700 | $ | 714 | $ | 835 | (2) | $ | 1,621 | $ | 1,510 | 7 | ||||||||||||||||||||||||||||||||||||||||
| (Billions, except percentages and where indicated) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Billed business (H) | $ | 153.1 | $ | 135.7 | $ | 140.9 | $ | 126.1 | $ | 119.9 | 28 | $ | 288.7 | $ | 223.9 | 29 | ||||||||||||||||||||||||||||||||||||||||
| Proprietary cards-in-force (millions) (I) | 16.4 | 15.8 | 15.4 | 15.1 | 14.8 | 11 | 16.4 | 14.8 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
| Average Card Member spending (dollars) | $ | 9,512 | $ | 8,682 | $ | 9,235 | $ | 8,447 | $ | 8,180 | 16 | $ | 18,204 | $ | 15,338 | 19 | ||||||||||||||||||||||||||||||||||||||||
| Segment assets | $ | 59.1 | $ | 55.6 | $ | 52.9 | $ | 48.2 | $ | 46.4 | 27 | $ | 59.1 | $ | 46.4 | 27 | ||||||||||||||||||||||||||||||||||||||||
| Card Member loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | $ | 20.7 | $ | 19.4 | $ | 18.1 | $ | 15.4 | $ | 15.0 | 38 | $ | 20.7 | $ | 15.0 | 38 | ||||||||||||||||||||||||||||||||||||||||
| Total loans - Global Small Business Services (GSBS) | $ | 20.6 | $ | 19.3 | $ | 18.0 | $ | 15.3 | $ | 15.0 | 37 | $ | 20.6 | $ | 15.0 | 37 | ||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total - GSBS | 0.6 | % | 0.6 | % | 0.5 | % | 0.5 | % | 0.4 | % | 0.6 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Average loans - GSBS | $ | 20.0 | $ | 18.2 | $ | 16.7 | $ | 15.2 | $ | 14.4 | 39 | $ | 19.1 | $ | 13.9 | 37 | ||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) - GSBS (M) | 0.6 | % | 0.6 | % | 0.5 | % | 0.5 | % | 0.6 | % | 0.6 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal, interest and fees) - GSBS (M) | 0.7 | % | 0.7 | % | 0.6 | % | 0.6 | % | 0.7 | % | 0.7 | % | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 6.5 | % | 6.9 | % | 6.9 | % | 7.0 | % | 6.5 | % | 6.7 | % | 6.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 8.5 | % | 8.6 | % | 8.5 | % | 8.8 | % | 8.3 | % | 8.6 | % | 8.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total receivables | $ | 34.6 | $ | 32.5 | $ | 31.3 | $ | 29.3 | $ | 27.7 | 25 | $ | 34.6 | $ | 27.7 | 25 | ||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (M)(O) | 0.6 | % | 0.5 | % | 0.3 | % | 0.2 | % | (0.2) | % | 0.6 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| Total receivables - GCP (P) | $ | 15.7 | $ | 14.5 | $ | 13.3 | $ | 12.5 | $ | 11.7 | 34 | $ | 15.7 | $ | 11.7 | 34 | ||||||||||||||||||||||||||||||||||||||||
| 90+ days past billing as a % of total - GCP (P) | 0.4 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.3 | % | 0.4 | % | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) - GCP (M)(O)(P) | 0.3 | % | 0.2 | % | 0.2 | % | 0.2 | % | (0.9) | % | 0.3 | % | (0.3) | % | ||||||||||||||||||||||||||||||||||||||||||
| Total receivables - GSBS | $ | 18.9 | $ | 18.0 | $ | 18.0 | $ | 16.8 | $ | 15.9 | 19 | $ | 18.9 | $ | 15.9 | 19 | ||||||||||||||||||||||||||||||||||||||||
| 30+ days past due as a % of total - GSBS | 0.9 | % | 0.9 | % | 0.7 | % | 0.6 | % | 0.5 | % | 0.9 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) - GSBS (M) | 0.9 | % | 0.7 | % | 0.3 | % | 0.2 | % | 0.2 | % | 0.8 | % | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) - GSBS (M) | 0.9 | % | 0.8 | % | 0.4 | % | 0.3 | % | 0.3 | % | 0.9 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| # - 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) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YOY % change | YTD'22 | YTD'21 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest revenues | $ | 1,551 | $ | 1,356 | $ | 1,416 | $ | 1,278 | $ | 1,204 | 29 | $ | 2,907 | $ | 2,265 | 28 | ||||||||||||||||||||||||||||||||||||||||
| Interest income | 5 | 2 | 4 | 4 | 4 | 25 | 7 | 8 | (13) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (61) | (44) | (31) | (24) | (20) | # | (105) | (37) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 66 | 46 | 35 | 28 | 24 | # | 112 | 45 | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense | 1,617 | 1,402 | 1,451 | 1,306 | 1,228 | 32 | 3,019 | 2,310 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total provisions for credit losses | 2 | — | — | — | (27) | # | 2 | (37) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Total revenues net of interest expense after provisions for credit losses | 1,615 | 1,402 | 1,451 | 1,306 | 1,255 | 29 | 3,017 | 2,347 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total expenses | 800 | 715 | 946 | 779 | 728 | 10 | 1,515 | 1,435 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
| Pretax segment income | $ | 815 | $ | 687 | $ | 505 | $ | 527 | $ | 527 | 55 | $ | 1,502 | $ | 912 | 65 | ||||||||||||||||||||||||||||||||||||||||
| (Billions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment assets | $ | 15.9 | $ | 16.1 | $ | 15.2 | $ | 14.2 | $ | 14.2 | 12 | $ | 15.9 | $ | 14.2 | 12 | ||||||||||||||||||||||||||||||||||||||||
| # - 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) | ||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | ||||||||||||||||||||||||||||
| ROE | ||||||||||||||||||||||||||||||||
| Annualized Net income | $ | 7,856 | $ | 8,396 | $ | 8,060 | $ | 7,304 | $ | 9,120 | ||||||||||||||||||||||
| Average shareholders' equity | $ | 22,809 | $ | 22,280 | $ | 23,910 | $ | 24,982 | $ | 24,994 | ||||||||||||||||||||||
| Return on average equity (F) | 34.4 | % | 37.7 | % | 33.7 | % | 29.2 | % | 36.5 | % | ||||||||||||||||||||||
| Reconciliation of ROCE | ||||||||||||||||||||||||||||||||
| Annualized Net income | $ | 7,856 | $ | 8,396 | $ | 8,060 | $ | 7,304 | $ | 9,120 | ||||||||||||||||||||||
| Preferred share dividends and equity related adjustments (R) | 58 | 57 | 87 | 118 | 57 | |||||||||||||||||||||||||||
| Earnings allocated to participating share awards and other | 60 | 64 | 56 | 54 | 65 | |||||||||||||||||||||||||||
| Net income attributable to common shareholders (R) | $ | 7,738 | $ | 8,275 | $ | 7,917 | $ | 7,132 | $ | 8,998 | ||||||||||||||||||||||
| Average shareholders' equity | $ | 22,809 | $ | 22,280 | $ | 23,910 | $ | 24,982 | $ | 24,994 | ||||||||||||||||||||||
| Average preferred shares (R) | 1,584 | 1,584 | 1,820 | 1,955 | 1,584 | |||||||||||||||||||||||||||
| Average common shareholders' equity | $ | 21,225 | $ | 20,696 | $ | 22,090 | $ | 23,027 | $ | 23,410 | ||||||||||||||||||||||
| Return on average common equity (F) | 36.5 | % | 40.0 | % | 35.8 | % | 31.0 | % | 38.4 | % | ||||||||||||||||||||||
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) | ||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YTD'22 | YTD'21 | ||||||||||||||||||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 2,360 | $ | 2,199 | $ | 2,108 | $ | 1,994 | $ | 1,818 | $ | 4,559 | $ | 3,648 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (S) | 211 | 158 | 135 | 172 | 195 | 369 | 431 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (T) | (167) | (105) | (98) | (92) | (93) | (272) | (189) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (N) | $ | 2,404 | $ | 2,252 | $ | 2,145 | $ | 2,074 | $ | 1,920 | $ | 4,656 | $ | 3,890 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 92.4 | $ | 86.8 | $ | 82.9 | $ | 76.4 | $ | 72.8 | $ | 89.7 | $ | 72.0 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 10.2 | % | 10.1 | % | 10.2 | % | 10.4 | % | 10.0 | % | 10.2 | % | 10.1 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 10.4 | % | 10.5 | % | 10.3 | % | 10.8 | % | 10.6 | % | 10.5 | % | 10.9 | % | ||||||||||||||||||||||||||||||
| Global Consumer Services Group | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,756 | $ | 1,633 | $ | 1,596 | $ | 1,524 | $ | 1,392 | $ | 3,389 | $ | 2,813 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (S) | 27 | 34 | 23 | 31 | 44 | 61 | 103 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (T) | (52) | (42) | (36) | (27) | (22) | (94) | (46) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (N) | $ | 1,731 | $ | 1,625 | $ | 1,583 | $ | 1,528 | $ | 1,414 | $ | 3,356 | $ | 2,870 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 61.6 | $ | 58.1 | $ | 56.1 | $ | 52.3 | $ | 49.9 | $ | 59.9 | $ | 49.6 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 11.4 | % | 11.2 | % | 11.4 | % | 11.7 | % | 11.2 | % | 11.3 | % | 11.3 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 11.3 | % | 11.3 | % | 11.2 | % | 11.6 | % | 11.4 | % | 11.3 | % | 11.7 | % | ||||||||||||||||||||||||||||||
| Outside the U.S. | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 223 | $ | 215 | $ | 178 | $ | 181 | $ | 183 | $ | 438 | $ | 382 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (S) | 27 | 26 | 27 | 29 | 26 | 53 | 52 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (T) | (3) | (3) | (2) | (2) | (2) | (6) | (4) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (N) | $ | 247 | $ | 238 | $ | 203 | $ | 208 | $ | 207 | $ | 485 | $ | 430 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 10.8 | $ | 10.4 | $ | 10.0 | $ | 8.9 | $ | 8.4 | $ | 10.6 | $ | 8.4 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 8.3 | % | 8.3 | % | 7.1 | % | 8.1 | % | 8.7 | % | 8.3 | % | 9.1 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 9.2 | % | 9.3 | % | 8.0 | % | 9.3 | % | 9.9 | % | 9.2 | % | 10.3 | % | ||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,979 | $ | 1,848 | $ | 1,774 | $ | 1,705 | $ | 1,575 | $ | 3,827 | $ | 3,195 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (S) | 54 | 59 | 50 | 60 | 70 | 113 | 155 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (T) | (55) | (44) | (38) | (29) | (24) | (99) | (50) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (N) | $ | 1,978 | $ | 1,863 | $ | 1,786 | $ | 1,736 | $ | 1,621 | $ | 3,841 | $ | 3,300 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 72.4 | $ | 68.5 | $ | 66.1 | $ | 61.2 | $ | 58.3 | $ | 70.6 | $ | 58.0 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 10.9 | % | 10.8 | % | 10.7 | % | 11.1 | % | 10.8 | % | 10.8 | % | 11.0 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 11.0 | % | 11.0 | % | 10.7 | % | 11.3 | % | 11.1 | % | 11.0 | % | 11.5 | % | ||||||||||||||||||||||||||||||
| Global Commercial Services | ||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 327 | $ | 314 | $ | 290 | $ | 267 | $ | 234 | $ | 641 | $ | 454 | ||||||||||||||||||||||||||||||
| Exclude: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense not attributable to our Card Member loan portfolio (S) | 120 | 91 | 86 | 88 | 87 | 211 | 180 | |||||||||||||||||||||||||||||||||||||
| Interest income not attributable to our Card Member loan portfolio (T) | (21) | (16) | (17) | (17) | (22) | (37) | (44) | |||||||||||||||||||||||||||||||||||||
| Adjusted net interest income (N) | $ | 426 | $ | 389 | $ | 359 | $ | 338 | $ | 299 | $ | 815 | $ | 590 | ||||||||||||||||||||||||||||||
| Average Card Member loans (billions) | $ | 20.1 | $ | 18.3 | $ | 16.8 | $ | 15.2 | $ | 14.5 | $ | 19.1 | $ | 14.0 | ||||||||||||||||||||||||||||||
| Net interest income divided by average Card Member loans (N) | 6.5 | % | 6.9 | % | 6.9 | % | 7.0 | % | 6.5 | % | 6.7 | % | 6.5 | % | ||||||||||||||||||||||||||||||
| Net interest yield on average Card Member loans (N) | 8.5 | % | 8.6 | % | 8.5 | % | 8.8 | % | 8.3 | % | 8.6 | % | 8.5 | % | ||||||||||||||||||||||||||||||
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) | ||||||||
| Q2'22 | Q1'22 | Q4'21 | Q3'21 | Q2'21 | YOY % change | YTD'22 | YTD'21 | YOY % change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Worldwide Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs (millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs (principal and fees) (M) | $ | 95 | $ | 67 | $ | 40 | $ | 32 | $ | 4 | # | $ | 162 | $ | 57 | # | ||||||||||||||||||||||||||||||||||||||||
| Less: Net write-offs (principal and fees) - GCP (M)(O)(P) | 10 | 8 | 6 | 6 | (24) | # | 18 | (14) | # | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs (principal and fees) - GCSG and GSBS (M) | $ | 85 | $ | 59 | $ | 34 | $ | 26 | $ | 28 | # | $ | 144 | $ | 71 | # | ||||||||||||||||||||||||||||||||||||||||
| Less: Net write-offs (fees only) - GCSG and GSBS (M) | 8 | 6 | 4 | 3 | 5 | 60 | 14 | 12 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net write-offs (principal only) - GCSG and GSBS (M) | $ | 77 | $ | 53 | $ | 30 | $ | 23 | $ | 23 | # | $ | 130 | $ | 59 | # | ||||||||||||||||||||||||||||||||||||||||
| Average Card Member receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Consumer Services Group (GCSG) | $ | 21.4 | $ | 20.5 | $ | 21.0 | $ | 19.8 | $ | 18.6 | 15 | $ | 21.0 | $ | 18.0 | 17 | ||||||||||||||||||||||||||||||||||||||||
| Global Small Business Services (GSBS) | 18.7 | 17.3 | 17.5 | 16.5 | 15.2 | 23 | 18.0 | 14.6 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||
| Average receivables (GCSG and GSBS) | $ | 40.1 | $ | 37.8 | $ | 38.5 | $ | 36.3 | $ | 33.8 | 19 | $ | 39.0 | $ | 32.6 | 20 | ||||||||||||||||||||||||||||||||||||||||
| GCP (P) | 15.1 | 13.2 | 13.2 | 12.0 | 11.1 | 36 | 14.1 | $ | 10.9 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total average receivables | $ | 55.2 | $ | 51.0 | $ | 51.7 | $ | 48.3 | $ | 44.9 | 23 | $ | 53.1 | $ | 43.5 | 22 | ||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) (M) | 0.7 | % | 0.5 | % | 0.3 | % | 0.3 | % | — | % | 0.6 | % | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal and fees) - GCSG and GSBS (M) | 0.8 | % | 0.6 | % | 0.4 | % | 0.3 | % | 0.3 | % | 0.7 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net write-off rate (principal only) - GCSG and GSBS (M) | 0.8 | % | 0.6 | % | 0.3 | % | 0.2 | % | 0.3 | % | 0.7 | % | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||
| # - Denotes a variance of 100 percent or more. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Appendix IV for footnote references
13
| 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) | Discount revenue represents the proportion of billed business earned and retained by us for facilitating transactions between Card Members and merchants on payment products issued by American Express. | |||||||
| (B) | Service fees and other revenue includes service fees and travel commissions earned from merchants and other customers which are generally recognized in the period when the service is performed, and delinquency and foreign currency-related fees which are primarily recognized in the period when they are charged to the Card Member. In addition, Service fees and other revenue includes income (losses) from our investments in which we have significant influence, and therefore account for under the equity method. | |||||||
| (C) | Processed revenue includes revenues related to network partnership agreements, comprising royalties, fees and amounts earned for facilitating transactions on cards issued by network partners. Processed revenue also includes fees earned on alternative payment solutions facilitated by American Express. | |||||||
| (D) | Represents net income, less (i) earnings allocated to participating share awards of $15 million, $16 million, $11 million, $14 million and $16 million in Q2'22, Q1'22, Q4'21, Q3'21 and Q2'21, respectively; (ii) dividends on preferred shares of $15 million, $14 million, $22 million, $20 million and $15 million in Q2'22, Q1'22, Q4'21, Q3'21 and Q2'21, 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 "R"). | |||||||
| (E) | 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. | |||||||
| (F) | 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. | |||||||
| (G) | Presented for the purpose of calculating the Tier 1 Leverage Ratio. | |||||||
| (H) | 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. Network volumes represent our total volumes. | |||||||
| (I) | 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. | |||||||
| (J) | 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. | |||||||
| (K) | Average fee per card is computed on an annualized basis based on proprietary net card fees divided by average proprietary total cards-in-force. | |||||||
| (L) | Other includes foreign currency impact on balance sheet re-measurement and translation. | |||||||
| (M) | 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, 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. | |||||||
| (N) | 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. | |||||||
| (O) | Q2'21 includes a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year in the Global Commercial Services (GCS) segment. | |||||||
| (P) | 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. | |||||||
| (Q) | 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 Q2'22 apply to the period(s) against which such results are being compared). | |||||||
| (R) | 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. | |||||||
| (S) | Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables. | |||||||
| (T) | Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios. | |||||||
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