American Express (AXP) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Media Contacts:

Marina H. Norville, marina.h.norville@aexp.com, +1.212.640.2832

Mike O’Neill, mike.o’neill@aexp.com, +1.212.640.5951

Investors/Analysts Contacts:

Ken Paukowits,ken.f.paukowits@aexp.com , +1.212.640.6348

Rick Petrino, richard.petrino@aexp.com, +1.212.640.5574

AMERICAN EXPRESS EPS UP 15% FOR THE QUARTER; 14% FOR FULL YEAR

CARD MEMBER SPENDING AND LOANS RISE

INVESTMENT GAIN USED FOR BUSINESS BUILDING

INITIATIVES AND RESTRUCTURING

(Millions, except percentages and per share amounts)
 

	Quarters Ended December 31,				Percentage Inc/(Dec)		Years Ended December 31,				Percentage Inc/(Dec)
	2014		2013				2014		2013
Total Revenues Net of Interest Expense	$	9,107	$	8,547		7%	$	34,292	$	32,974		4%
Net Income	$	1,447	$	1,308		11%	$	5,885	$	5,359		10%
Earnings Per Common Share – Diluted:
Net Income Attributable to Common Shareholders1	$	1.39	$	1.21		15%	$	5.56	$	4.88		14%
Average Diluted Common Shares Outstanding		1,033		1,073		(4)%		1,051		1,089		(4)%
Return on Average Equity		29.1%		27.8%				29.1%		27.8%

New York – January 21, 2015– American Express Company (NYSE: AXP) today reported fourth-quarter net income of $1.4 billion, up 11 percent from $1.3 billion a year ago. Diluted earnings per share rose 15 percent to $1.39, from $1.21 a year ago.

1 Represents net income less earnings allocated to participating share awards of $11 million for both the three months ended December 31, 2014 and 2013, and $46million and $47 million for the twelve months ended December 31, 2014 and 2013, respectively.

-1-

Fourth-quarter consolidated total revenues net of interest expense rose to $9.1 billion from $8.5 billion a year ago, up 7 percent (9 percent when adjusted for foreign currency translations2). The revenue increase primarily reflected the previously reported gain of $719 million ($453 million after-tax) on the sale of the company’s investment in Concur Technologies. The increase also reflected a rise in Card Member spending and higher net interest income. Last year’s fourth quarter included revenue from the company’s business travel operations, which were deconsolidated as a result of the joint venture transaction that closed on June 30, 2014.

Consolidated provisions for losses totaled $582 million, up 22 percent from $479 million a year ago. The increase primarily reflected a build in reserves this quarter compared to a reserve release last year. Credit indicators continued to be at historically strong levels.

Consolidated expenses totaled $6.3 billion, up 3 percent (6 percent FX adjusted2) from $6.1 billion a year ago. As indicated last quarter, the company used a substantial portion of the Concur gain for:

· Companywide initiatives to improve operating efficiencies, which entailed a restructuring charge of $313 million ($206 million after-tax);

· Incremental investments in growth initiatives, which were largely reflected in higher marketing and promotion expenses; and

· The renewal of the company’s partnership with Delta Air Lines, which created additional rewards costs of $109 million ($68 million after-tax).

In addition, fourth-quarter results were negatively affected by the impact of foreign currency translations on international operations.

The effective tax rate for the quarter was 35 percent, up from 34 percent from a year ago, driven by the geographic mix of earnings and the resolution of certain prior years’ items.

The company's return on average equity (ROE) was 29.1 percent, up from 27.8 percent a year ago.

For the full year, the company reported net income of $5.9 billion, up 10 percent from $5.4 billion a year ago. Diluted earnings per share rose 14 percent to $5.56 from $4.88 a year ago.

Revenues net of interest expense for the full year increased 4 percent (5 percent FX adjusted2) to $34.3 billion from $33.0 billion a year ago. Consolidated expenses remained unchanged from 2013 at $23.3 billion. Adjusted for foreign currency translations2, consolidated expenses were up 1 percent.

“Solid results this quarter reflected the underlying themes that have characterized our performance throughout 2014: higher Card Member spending, increased loan balances, tight control of operating expenses and a substantial return of capital to shareholders through share repurchases,” said Kenneth I. Chenault, chairman and chief executive officer.

“Fourth-quarter Card Member spending rose 6 percent (8 percent FX adjusted). Volumes for the year crossed the trillion dollar mark for the first time, reflecting the progress we’ve made in building customer loyalty, adding new cards and expanding the network of merchants who accept our products. Loan balances were up 7 percent in the U.S., continuing  the progress we’ve made throughout 2014. We continue to see opportunities to grow this portfolio with existing and new customers without significantly changing the overall risk profile of the company.

2  As reported in this release, FX adjusted information, which constitute non-GAAP financial measures, 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 December 31, 2014 apply to the period(s) against which such results are being compared). The company believes the presentation of information on an FX adjusted basis is helpful to investors by making it easier to compare the company’s performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.

-2-

“Tight controls on the cost side of the ledger continued to give us the flexibility to invest in growth opportunities. And, as in the second quarter, a substantial gain allowed us to accelerate some critical initiatives: reengineering to make American Express more efficient; renewing a key partner relationship; and making additional investments to grow our business and drive innovation in the world of payments and commerce.

“We’ve made very good progress against the backdrop of an uneven global economy and the negative impact of a strengthening U.S. dollar. We see many opportunities for growth, but at the same time, we face competitive and regulatory challenges. Our aim is to continue to capitalize on the opportunities while dealing with the challenges as we enter 2015.”

Segment Results

U.S. Card Services reported fourth-quarter net income of $665 million, down 23 percent from $864 million a year ago.

Total revenues net of interest expense increased 5 percent to $4.6 billion from $4.4 billion a year ago. The increase reflected an 8 percent rise in Card Member spending and higher net interest income.

Provisions for losses totaled $399 million, up 25 percent from $319 million a year ago. The increase primarily reflected a build in reserves this quarter compared to a reserve release last year.

Total expenses increased 13 percent to $3.1 billion from $2.8 billion a year ago. The increase reflected a substantial portion of the initiatives related to the Concur gain and were reflected in higher rewards, marketing and operating expenses3.

The effective tax rate was 39 percent compared to 33 percent a year ago, reflecting the impact of certain prior years’ tax items.

International Card Services reported fourth-quarter net income of $33 million, down 68 percent from $103 million a year ago.

Total revenues net of interest expense decreased 5 percent (up 3 percent FX adusted2) to $1.4 billion.

Provisions for losses totaled $95 million, down 14 percent from $110 million a year ago. The decrease reflected a small reserve release in the current quarter compared with a reserve build a year ago.

Total expenses increased 4 percent (10 percent FX adjusted2) to $1.3 billion. The increase primarily reflected higher operating expenses, which included a portion of the restructuring charge, partially offset by a decrease in rewards costs.

3 Operating expenses represent salaries and employee benefits, professional services, occupancy and equipment, communications and other, net.

-3-

Taxes for the quarter reflected the level of pretax income in combination with recurring permanent tax benefits.

Global Commercial Services reported fourth-quarter net income of $594 million, up from $182 million a year ago. The increase reflected the previously mentioned gain on the sale of the company’s investment in Concur Technologies. Year-ago results included earnings from the company’s business travel operations, which were deconsolidated as a result of the joint venture transaction referred to above. The company’s proportional share of the joint venture’s net income is now reported in Other Revenues.

Total revenues net of interest expense increased 28 percent (32 percent FX adjusted2) to $1.6 billion from $1.2 billion. The increase primarily reflected the previously mentioned Concur gain, partially offset by business travel revenues that were in the year-ago quarter.

Provisions for losses totaled $50 million, up from $36 million a year ago.

Total expenses decreased 36 percent (34 percent FX adjusted2) to $586 million from $915 million a year ago. Excluding business travel expenses, fourth quarter adjusted expenses increased 6 percent compared to the year-ago period.4

Global Network & Merchant Services reported fourth-quarter net income of $417 million, up 5 percent from $399 million a year ago.

Total revenues net of interest expense increased 2 percent (6 percent FX adjusted2) to $1.5 billion. The increase primarily reflected higher merchant-related revenues driven by an increase in global Card Member spending.

Provisions for losses totaled $35 million, up from $14 million a year ago, reflecting a reserve build in the current period.

Total expenses decreased 4 percent to $772 million (1 percent FX adjusted2) from $801 million a year ago. The decrease reflected merchant litigation settlement expenses a year ago, partially offset by higher marketing and promotion costs in the current quarter.

Corporate and Other reported fourth-quarter net loss of $262million, compared with net loss of $240 million in the year-ago period. The current quarter included a portion of the previously mentioned restructuring charge.

# # #

About American Express

American Express is a global services 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, foursquare.com/americanexpress, linkedin.com/companies/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

4 The adjusted expense growth rate for Global Commercial Services is a non-GAAP measure. Management believes this metric is useful in evaluating the ongoing operating performance of the company. See Appendix V in the selected statistical tables for a reconciliation to total expenses for Global Commercial Services on a GAAP basis.

-4-

Key links to products and services: charge and credit cards, business credit cards, travel services, gift cards, prepaid cards, merchant services, corporate card and business travel

The 2014 Fourth Quarter/Full Year Earnings Supplement will be available today on the American Express website at http://ir.americanexpress.com. An investor conference call will be held at 5:00 p.m. (ET) today to discuss fourth-quarter earnings results. Live audio and presentation slides for the investor conference call will be available to the general public at the same website. A replay of the conference call will be available later today at the same website address.

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the company’s expected business and financial performance and are subject to risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements due to a variety of factors, including those contained in the company's Annual Report on Form 10-K for the year ended December 31, 2013, its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014 and the company’s other filings with the Securities and Exchange Commission. 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.

-5-

American Express Company (Preliminary)

Consolidated Statements of Income

(Millions, except percentages and per share amounts)

	Quarters Ended											% Change			Years Ended				% Change
	Dec 31,		Sep 30,		Jun 30,			Mar 31,		Dec 31,		Dec 31, 2014 vs.			Dec 31,				Dec 31, 2014 vs.
	2014		2014		2014			2014		2013		Dec 31, 2013			2014		2013		Dec 31, 2013
Revenues
Non-interest revenues
Discount revenue	$	4,987	$	4,915	$	4,945		$	4,646	$	4,869		2		$	19,493	$	18,695		4
Net card fees		671		680		687			674		673		(0	)		2,712		2,631		3
Travel commissions and fees		91		104		500			423		491		(81	)		1,118		1,913		(42	)
Other commissions and fees		624		642		624			618		626		(0	)		2,508		2,414		4
Other		1,310		593		585			501		569		#			2,989		2,274		31
Total non-interest revenues		7,683		6,934		7,341			6,862		7,228		6			28,820		27,927		3
Interest income
Interest on loans		1,769		1,753		1,696			1,711		1,715		3			6,929		6,718		3
Interest and dividends on investment securities		43		45		45			46		48		(10	)		179		201		(11	)
Deposits with banks and other		17		17		18			19		19		(11	)		71		86		(17	)
Total interest income		1,829		1,815		1,759			1,776		1,782		3			7,179		7,005		2
Interest expense
Deposits		97		91		91			94		110		(12	)		373		442		(16	)
Long-term debt and other		308		329		352			345		353		(13	)		1,334		1,516		(12	)
Total interest expense		405		420		443			439		463		(13	)		1,707		1,958		(13	)
Net interest income		1,424		1,395		1,316			1,337		1,319		8			5,472		5,047		8
Total revenues net of interest expense		9,107		8,329		8,657			8,199		8,547		7			34,292		32,974		4
Provisions for losses
Charge card		198		196		183			215		174		14			792		648		22
Card Member loans		341		265		282			250		290		18			1,138		1,115		2
Other		43		27		24			20		15		#			114		69		65
Total provisions for losses		582		488		489			485		479		22			2,044		1,832		12
Total revenues net of interest expense after provisions for losses		8,525		7,841		8,168			7,714		8,068		6			32,248		31,142		4
Expenses
Marketing and promotion		913		809		985			613		809		13			3,320		3,043		9
Card Member rewards		1,881		1,695		1,773			1,582		1,717		10			6,931		6,457		7
Card Member services and other		203		205		192			222		188		8			822		767		7
Salaries and employee benefits		1,607		1,290		1,658			1,540		1,489		8			6,095		6,191		(2	)
Professional services		768		731		817			692		830		(7	)		3,008		3,102		(3	)
Occupancy and equipment		446		432		467			462		510		(13	)		1,807		1,904		(5	)
Communications		98		91		101			93		97		1			383		379		1
Other, net		384		342		(137	)		302		448		(14	)		891		1,411		(37	)
Total		6,300		5,595		5,856			5,506		6,088		3			23,257		23,254		0
Pretax income		2,225		2,246		2,312			2,208		1,980		12			8,991		7,888		14
Income tax provision		778		769		783			776		672		16			3,106		2,529		23
Net income	$	1,447	$	1,477	$	1,529		$	1,432	$	1,308		11		$	5,885	$	5,359		10
Net income attributable to common shareholders (A)	$	1,436	$	1,466	$	1,517		$	1,420	$	1,297		11		$	5,839	$	5,312		10
Effective tax rate		35.0%		34.2%		33.9%			35.1%		33.9%					34.5%		32.1%
Earnings Per Common Share
BASIC
Net income attributable to common shareholders	$	1.40	$	1.41	$	1.44		$	1.34	$	1.22		15		$	5.58	$	4.91		14
Average common shares outstanding		1,028		1,041		1,052			1,060		1,067		(4	)		1,045		1,082		(3	)
DILUTED
Net income attributable to common shareholders	$	1.39	$	1.40	$	1.43		$	1.33	$	1.21		15		$	5.56	$	4.88		14
Average common shares outstanding		1,033		1,047		1,058			1,067		1,073		(4	)		1,051		1,089		(4	)
Cash dividends declared per common share	$	0.26	$	0.26	$	0.26		$	0.23	$	0.23		13		$	1.01	$	0.89		13

# - Denotes a variance of more than 100 percent.

-6-

American Express Company

Condensed Consolidated Balance Sheets

(Billions, except percentages, per share amounts and where indicated)

	Quarters Ended										% Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Dec 31, 2014 vs.
	2014		2014		2014		2014		2013		Dec 31, 2013
Assets
Cash & cash equivalents	$	22	$	21	$	18	$	21	$	19		16
Accounts receivable		47		47		49		47		47		-
Investment securities		4		5		5		5		5		(20	)
Loans		70		66		66		63		67		4
Other assets		16		15		14		15		15		7
Total assets	$	159	$	154	$	152	$	151	$	153		4
Liabilities and Shareholders' Equity
Customer deposits	$	44	$	43	$	42	$	43	$	42		5
Short-term borrowings		3		3		3		3		5		(40	)
Long-term debt		58		56		55		54		55		5
Other liabilities		33		32		32		31		32		3
Total liabilities		138		134		132		131		134		3
Shareholders' Equity		21		20		20		20		19		11
Total liabilities and shareholders' equity	$	159	$	154	$	152	$	151	$	153		4
Selected Statistical Information
Return on average equity (B)		29.1%		28.8%		28.8%		28.3%		27.8%
Return on average common equity (B)		29.0%		28.6%		28.5%		28.1%		27.6%
Return on average tangible common equity (B)		35.9%		35.6%		35.8%		35.4%		34.9%
Common shares outstanding (millions)		1,023		1,035		1,046		1,059		1,064		(4	)
Book value per common share (dollars)	$	20.21	$	19.54	$	19.32	$	18.87	$	18.32		10
Shareholders' equity	$	20.7	$	20.2	$	20.2	$	20.0	$	19.5		6

# - Denotes a variance of more than 100 percent.

-7-

American Express Company

Financial Summary

(Millions)

	Quarters Ended															% Change			Years Ended						% Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31, 2014 vs.			Dec 31,						Dec 31, 2014 vs.
	2014			2014			2014			2014			2013			Dec 31, 2013			2014			2013			Dec 31, 2013
Total revenues net of interest expense
U.S. Card Services	$	4,620		$	4,527		$	4,477		$	4,290		$	4,388			5		$	17,914		$	16,995			5
International Card Services		1,355			1,394			1,391			1,352			1,429			(5	)		5,492			5,401			2
Global Commercial Services		1,585			900			1,269			1,194			1,238			28			4,948			4,853			2
Global Network & Merchant Services		1,477			1,450			1,455			1,365			1,447			2			5,747			5,513			4
��		9,037			8,271			8,592			8,201			8,502			6			34,101			32,762			4
Corporate & Other		70			58			65			(2	)		45			56			191			212			(10	)
CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	9,107		$	8,329		$	8,657		$	8,199		$	8,547			7		$	34,292		$	32,974			4
Pretax income (loss)
U.S. Card Services	$	1,083		$	1,411		$	1,200		$	1,406		$	1,292			(16	)	$	5,100		$	4,994			2
International Card Services		1			176			69			203			108			(99	)		449			643			(30	)
Global Commercial Services		949			309			865			285			287			#			2,408			1,244			94
Global Network & Merchant Services		670			670			578			702			632			6			2,620			2,469			6
		2,703			2,566			2,712			2,596			2,319			17			10,577			9,350			13
Corporate & Other		(478	)		(320	)		(400	)		(388	)		(339	)		41			(1,586	)		(1,462	)		8
PRETAX INCOME	$	2,225		$	2,246		$	2,312		$	2,208		$	1,980			12		$	8,991		$	7,888			14
Net income (loss)
U.S. Card Services	$	665		$	889		$	770		$	876		$	864			(23	)	$	3,200		$	3,193			0
International Card Services		33			142			77			159			103			(68	)		411			631			(35	)
Global Commercial Services		594			204			561			184			182			#			1,543			860			79
Global Network & Merchant Services		417			427			373			443			399			5			1,660			1,575			5
		1,709			1,662			1,781			1,662			1,548			10			6,814			6,259			9
Corporate & Other		(262	)		(185	)		(252	)		(230	)		(240	)		9			(929	)		(900	)		3
NET INCOME	$	1,447		$	1,477		$	1,529		$	1,432		$	1,308			11		$	5,885		$	5,359			10

# - Denotes a variance of more than 100 percent.

-8-

American Express Company (Preliminary)

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

	Quarters Ended															% Change			Years Ended						% Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31, 2014 vs.			Dec 31,						Dec 31, 2014 vs.
	2014			2014			2014			2014			2013			Dec 31, 2013			2014			2013			Dec 31, 2013
Card billed business (C):
United States	$	182.5		$	173.0		$	173.4		$	159.2		$	169.1			8		$	688.1		$	637.0			8
Outside the United States		86.0			85.1			84.7			78.9			84.9			1			334.7			315.4			6
Total	$	268.5		$	258.1		$	258.1		$	238.1		$	254.0			6		$	1,022.8		$	952.4			7
Total cards-in-force (D) (millions):
United States		54.9			54.5			54.1			53.5			53.1			3			54.9			53.1			3
Outside the United States		57.3			56.6			55.8			54.7			54.1			6			57.3			54.1			6
Total		112.2			111.1			109.9			108.2			107.2			5			112.2			107.2			5
Basic cards-in-force (D) (millions):
United States		42.6			42.2			42.0			41.5			41.1			4			42.6			41.1			4
Outside the United States		47.0			46.3			45.6			44.6			44.0			7			47			44			7
Total		89.6			88.5			87.6			86.1			85.1			5			89.6			85.1			5
Average discount rate (E)		2.45%			2.49%			2.48%			2.52%			2.48%						2.48%			2.51%
Average basic Card Member spending (dollars) (F)	$	4,377		$	4,223		$	4,288		$	3,991		$	4,292			2		$	16,884		$	16,334			3
Average fee per card (dollars) (F)	$	39		$	40		$	41		$	40		$	41			(5	)	$	40		$	40			-
Average fee per card adjusted (dollars) (F)	$	44		$	45		$	45		$	45		$	44			-		$	45		$	44			2
Worldwide Card Member receivables:
Total receivables	$	44.9		$	45.1		$	45.3		$	44.7		$	44.2			2		$	44.9		$	44.2			2
Loss reserves (millions):
Beginning balance	$	432		$	413		$	414		$	386		$	396			9		$	386		$	428			(10	)
Provisions (G)		198			196			183			215			174			14			792			648			22
Net write-offs (H)		(156	)		(168	)		(182	)		(177	)		(162	)		(4	)		(683	)		(669	)		2
Other (I)		(9	)		(9	)		(2	)		(10	)		(22	)		(59	)		(30	)		(21	)		43
Ending balance	$	465		$	432		$	413		$	414		$	386			20		$	465		$	386			20
% of receivables		1.0%			1.0%			0.9%			0.9%			0.9%						1.0%			0.9%
Net write-off rate (principal only) - USCS/ICS (J)		1.5%			1.6%			1.8%			1.9%		(L)							1.7%		(L)
Net write-off rate (principal and fees) - USCS/ICS (J)		1.7%			1.8%			2.0%			2.1%		(L)							1.9%		(L)
30 days past due as a % of total - USCS/ICS		1.6%			1.6%			1.5%			1.7%		(L)							1.6%		(L)
Net loss ratio (as a % of charge volume) - GCS		0.08%			0.09%			0.09%			0.09%			0.08%						0.09%			0.08%
90 days past billing as a % of total - GCS		0.8%			0.8%			0.7%			0.7%			0.9%						0.8%			0.9%
Worldwide Card Member loans:
Total loans	$	70.4		$	66.1		$	66.3		$	64.0		$	67.2			5		$	70.4		$	67.2			5
Loss reserves (millions):
Beginning balance	$	1,146		$	1,170		$	1,191		$	1,261		$	1,281			(11	)	$	1,261		$	1,471			(14	)
Provisions (G)		341			265			282			250			290			18			1,138			1,115			2
Net write-offs - principal (H)		(237	)		(245	)		(267	)		(274	)		(253	)		(6	)		(1,023	)		(1,141	)		(10	)
Net write-offs - interest and fees (H)		(40	)		(40	)		(42	)		(42	)		(37	)		8			(164	)		(150	)		9
Other (I)		(9	)		(4	)		6			(4	)		(20	)		(55	)		(11	)		(34	)		(68	)
Ending balance	$	1,201		$	1,146		$	1,170		$	1,191		$	1,261			(5	)	$	1,201		$	1,261			(5	)
Ending reserves - principal	$	1,149		$	1,093		$	1,114		$	1,135		$	1,212			(5	)	$	1,149		$	1,212			(5	)
Ending reserves - interest and fees	$	52		$	53		$	56		$	56		$	49			6		$	52		$	49			6
% of loans		1.7%			1.7%			1.8%			1.9%			1.9%						1.7%			1.9%
% of past due		167%			165%			171%			159%			169%						167%			169%
Average loans	$	67.7		$	66.4		$	65.2		$	64.5		$	64.4			5		$	66.0		$	63.3			4
Net write-off rate (principal only) (J)		1.4%			1.5%			1.6%			1.7%			1.6%						1.5%			1.8%
Net write-off rate (principal, interest and fees) (J)		1.6%			1.7%			1.9%			2.0%			1.8%						1.8%			2.0%
30 days past due loans as a % of total		1.0%			1.1%			1.0%			1.2%			1.1%						1.0%			1.1%
Net interest income divided by average loans (K)		8.4%			8.5%			8.1%			8.4%			8.1%						8.3%			8.0%
Net interest yield on Card Member loans (K)		9.3%			9.3%			9.2%			9.5%			9.3%						9.3%			9.3%

# - Denotes a variance of more than 100 percent.

-9-

U.S. Card Services (Preliminary)

Selected Income Statement Data

(Millions, except percentages)

	Quarters Ended										% Change			Years Ended				% Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Dec 31, 2014 vs.			Dec 31,				Dec 31, 2014 vs.
	2014		2014		2014		2014		2013		Dec 31, 2013			2014		2013		Dec 31, 2013
Revenues
Discount revenue, net card fees and other	$	3,279	$	3,214	$	3,222	$	3,017	$	3,132		5		$	12,732	$	12,123		5
Interest income		1,490		1,465		1,408		1,423		1,417		5			5,786		5,565		4
Interest expense		149		152		153		150		161		(7	)		604		693		(13	)
Net interest income		1,341		1,313		1,255		1,273		1,256		7			5,182		4,872		6
Total revenues net of interest expense		4,620		4,527		4,477		4,290		4,388		5			17,914		16,995		5
Provisions for losses		399		316		339		342		319		25			1,396		1,250		12
Total revenues net of interest expense after provisions for losses		4,221		4,211		4,138		3,948		4,069		4			16,518		15,745		5
Expenses
Marketing, promotion, rewards, Card Member services and other		2,064		1,790		1,865		1,582		1,789		15			7,301		6,825		7
Salaries and employee benefits and other operating expenses		1,074		1,010		1,073		960		988		9			4,117		3,926		5
Total		3,138		2,800		2,938		2,542		2,777		13			11,418		10,751		6
Pretax segment income		1,083		1,411		1,200		1,406		1,292		(16	)		5,100		4,994		2
Income tax provision		418		522		430		530		428		(2	)		1,900		1,801		5
Segment income	$	665	$	889	$	770	$	876	$	864		(23	)	$	3,200	$	3,193		0
Effective tax rate		38.6%		37.0%		35.8%		37.7%		33.1%					37.3%		36.1%
Selected Statistical Information
(Billions, except percentages and where indicated)
Card billed business	$	145.0	$	136.2	$	136.5	$	124.3	$	134.1		8		$	542.0	$	501.0		8
Total cards-in-force (millions)		45.6		45.2		44.7		44.1		43.7		4			45.6		43.7		4
Basic cards-in-force (millions)		34.0		33.7		33.3		32.8		32.5		5			34.0		32.5		5
Average basic Card Member spending (dollars)	$	4,281	$	4,069	$	4,133	$	3,805	$	4,138		3		$	16,294	$	15,689		4
U.S. Consumer Travel:
Travel sales (millions)	$	817	$	956	$	1,027	$	974	$	865		(6	)	$	3,774	$	3,967		(5	)
Travel commissions and fees/sales		7.5%		7.4%		7.4%		6.5%		7.4%					7.2%		7.1%
Total segment assets	$	113.2	$	103.3	$	101.1	$	98.9	$	103.5		9		$	113.2	$	103.5		9
Segment capital (M)	$	10.4	$	9.9	$	9.9	$	9.7	$	9.3		13		$	10.4	$	9.3		13
Return on average segment capital (N)		32.5%		35.5%		35.3%		35.6%		35.6%					32.5%		35.6%
Return on average tangible segment capital (N)		33.6%		36.6%		36.5%		36.9%		37.0%					33.6%		37.0%
Card Member receivables:
Total receivables	$	22.5	$	21.3	$	21.2	$	20.7	$	21.8		3		$	22.5	$	21.8		3
30 days past due as a % of total		1.7%		1.6%		1.5%		1.8%		1.6%					1.7%		1.6%
Average receivables	$	21.8	$	21.4	$	21.3	$	20.6	$	21.2		3		$	21.3	$	20.6		3
Net write-off rate (principal only) (J)		1.4%		1.5%		1.8%		1.8%		1.5%					1.6%		1.7%
Net write-off rate (principal and fees) (J)		1.6%		1.7%		2.0%		2.0%		1.7%					1.8%		1.9%
Card Member loans:
Total loans	$	62.6	$	58.0	$	57.7	$	55.8	$	58.4		7		$	62.6	$	58.4		7
30 days past due loans as a % of total		1.0%		1.0%		0.9%		1.1%		1.1%					1.0%		1.1%
Average loans	$	59.7	$	58.0	$	56.8	$	56.1	$	55.8		7		$	57.8	$	54.7		6
Net write-off rate (principal only) (J)		1.3%		1.4%		1.6%		1.7%		1.5%					1.5%		1.8%
Net write-off rate (principal, interest and fees) (J)		1.5%		1.6%		1.8%		1.9%		1.7%					1.7%		2.0%
Net interest income divided by average loans (O)		9.0%		9.1%		8.9%		9.2%		8.9%					9.0%		8.9%
Net interest yield on Card Member loans (O)		9.1%		9.2%		9.1%		9.4%		9.2%					9.2%		9.2%

#- Denotes a variance of more than 100 percent.

-10-

International Card Services (Preliminary)

Selected Income Statement Data

(Millions, except percentages)

	Quarters Ended												% Change			Years Ended				% Change
	Dec 31,			Sep 30,		Jun 30,			Mar 31,		Dec 31,		Dec 31, 2014 vs.			Dec 31,				Dec 31, 2014 vs.
	2014			2014		2014			2014		2013		Dec 31, 2013			2014		2013		Dec 31, 2013
Revenues
Discount revenue, net card fees and other	$	1,166		$	1,206	$	1,208		$	1,157	$	1,229		(5	)	$	4,737	$	4,644		2
Interest income		260			273		275			277		288		(10	)		1,085		1,118		(3	)
Interest expense		71			85		92			82		88		(19	)		330		361		(9	)
Net interest income		189			188		183			195		200		(6	)		755		757		(0	)
Total revenues net of interest expense		1,355			1,394		1,391			1,352		1,429		(5	)		5,492		5,401		2
Provisions for losses		95			98		90			87		110		(14	)		370		388		(5	)
Total revenues net of interest expense after provisions for losses		1,260			1,296		1,301			1,265		1,319		(4	)		5,122		5,013		2
Expenses
Marketing, promotion, rewards, Card Member services and other		555			532		577			496		585		(5	)		2,160		2,013		7
Salaries and employee benefits and other operating expenses		704			588		655			566		626		12			2,513		2,357		7
Total		1,259			1,120		1,232			1,062		1,211		4			4,673		4,370		7
Pretax segment income		1			176		69			203		108		(99	)		449		643		(30	)
Income tax provision/(benefit)		(32	)		34		(8	)		44		5		#			38		12		#
Segment income	$	33		$	142	$	77		$	159	$	103		(68	)	$	411	$	631		(35	)
Effective tax rate		#			19.3%		-11.6%			21.7%		4.6%					8.5%		1.9%
Selected Statistical Information
(Billions, except percentages and where indicated)
Card billed business	$	34.0		$	33.9	$	34.1		$	31.9	$	35.5		(4	)	$	133.8	$	131.7		2
Total cards-in-force (millions)		15.7			15.8		15.7			15.7		15.7		0			15.7		15.7		0
Basic cards-in-force (millions)		11.0			10.9		10.9			10.9		10.7		3			11.0		10.7		3
Average basic Card Member spending (dollars)	$	3,109		$	3,100	$	3,137		$	2,942	$	3,336		(7	)	$	12,297	$	12,429		(1	)
International Consumer Travel:
Travel sales (millions)	$	353		$	362	$	354		$	353	$	367		(4	)	$	1,422	$	1,420		0
Travel commissions and fees/sales		7.4%			6.9%		6.8%			6.2%		7.1%					6.8%		6.9%
Total segment assets	$	30.7		$	31.1	$	31.6		$	30.4	$	31.1		(1	)	$	30.7	$	31.1		(1	)
Segment capital (M)	$	3.0		$	3.0	$	3.0		$	3.0	$	3.1		(5	)	$	3.0	$	3.1		(5	)
Return on average segment capital (N)		13.6%			15.8%		15.7%			20.0%		20.9%					13.6%		20.9%
Return on average tangible segment capital (N)		24.6%			28.9%		28.8%			36.8%		38.8%					24.6%		38.8%
Card Member receivables:
Total receivables	$	7.7		$	7.3	$	7.5		$	7.2	$	7.8		(1	)	$	7.7	$	7.8		(1	)
30 days past billing as a % of total		1.3%			1.4%		1.3%			1.4%	(L)						1.3%	(L)
Net write-off rate (principal only) (J)		1.8%			1.9%		1.9%			2.2%	(L)						1.9%	(L)
Net write-off rate (principal and fees) (J)		1.9%			2.1%		2.0%			2.3%	(L)						2.1%	(L)
90 days past billing as a % of total	(L)			(L)		(L)			(L)			1.1%				(L)			1.1%
Net loss ratio (as a % of charge volume)	(L)			(L)		(L)			(L)			0.19%				(L)			0.20%
Card Member loans:
Total loans	$	7.7		$	8.0	$	8.6		$	8.2	$	8.8		(13	)	$	7.7	$	8.8		(13	)
30 days past due loans as a % of total		1.6%			1.6%		1.6%			1.7%		1.4%					1.6%		1.4%
Average loans	$	7.9		$	8.3	$	8.3		$	8.3	$	8.5		(7	)	$	8.2	$	8.5		(4	)
Net write-off rate (principal only) (J)		1.9%			1.9%		2.0%			2.0%		1.8%					2.0%		1.9%
Net write-off rate (principal, interest and fees) (J)		2.4%			2.4%		2.4%			2.4%		2.2%					2.4%		2.3%
Net interest income divided by average loans (O)		9.6%			9.1%		8.8%			9.5%		9.3%					9.2%		8.9%
Net interest yield on Card Member loans (O)		10.5%			9.9%		9.6%			10.1%		10.0%					10.0%		9.9%

# - Denotes a variance of more than 100 percent.

-11-

Global Commercial Services (Preliminary)

Selected Income Statement Data

(Millions, except percentages)

	Quarters Ended															% Change			Years Ended						% Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31, 2014 vs.			Dec 31,						Dec 31, 2014 vs.
	2014			2014			2014			2014			2013			Dec 31, 2013			2014			2013			Dec 31, 2013
Revenues
Discount revenue, net card fees and other	$	1,635		$	957		$	1,332		$	1,249		$	1,298			26		$	5,173		$	5,085			2
Interest income		4			4			3			4			4			-			15			13			15
Interest expense		54			61			66			59			64			(16	)		240			245			(2	)
Net interest expense		(50	)		(57	)		(63	)		(55	)		(60	)		(17	)		(225	)		(232	)		(3	)
Total revenues net of interest expense		1,585			900			1,269			1,194			1,238			28			4,948			4,853			2
Provisions for losses		50			49			43			38			36			39			180			129			40
Total revenues net of interest expense after provisions for losses		1,535			851			1,226			1,156			1,202			28			4,768			4,724			1
Expenses
Marketing, promotion, rewards, Card Member services and other		178			161			177			166			162			10			682			604			13
Salaries and employee benefits and other operating expenses		408			381			184			705			753			(46	)		1,678			2,876			(42	)
Total		586			542			361			871			915			(36	)		2,360			3,480			(32	)
Pretax segment income		949			309			865			285			287			#			2,408			1,244			94
Income tax provision		355			105			304			101			105			#			865			384			#
Segment income	$	594		$	204		$	561		$	184		$	182			#		$	1,543		$	860			79
Effective tax rate		37.4%			34.0%			35.1%			35.4%			36.6%						35.9%			30.9%
Selected Statistical Information
(Billions, except percentages and where indicated)
Card billed business	$	47.1		$	46.5		$	47.6		$	45.5		$	45.0			5		$	186.7		$	175.4			6
Total cards-in-force (millions)		6.9			6.9			7.0			7.1			7.1			(3	)		6.9			7.1			(3	)
Basic cards-in-force (millions)		6.9			6.9			7.0			7.1			7.1			(3	)		6.9			7.1			(3	)
Average basic Card Member spending (dollars)	$	6,817		$	6,691		$	6,781		$	6,429		$	6,361			7		$	26,706		$	24,924			7
Global Corporate Travel:
Travel sales (millions)	$	28		$	80		$	4,882		$	4,698		$	4,793			(99	)	$	9,688		$	18,869			(49	)
Travel commissions and fees/sales		7.1%			10.0%			8.2%			7.2%			8.3%						7.7%			8.1%
Total segment assets	$	18.5		$	20.6		$	20.8		$	21.6		$	19.2			(4	)	$	18.5		$	19.2			(4	)
Segment capital (M)	$	3.8		$	3.8		$	3.8		$	3.8		$	3.7			4		$	3.8		$	3.7			4
Return on average segment capital (N)		40.9%			30.3%			32.0%			23.2%			23.6%						40.9%			23.6%
Return on average tangible segment capital (N)		74.4%			56.0%			60.3%			44.4%			45.8%						74.4%			45.8%
Card Member receivables:
Total receivables	$	14.6		$	16.4		$	16.5		$	16.6		$	14.4			1		$	14.6		$	14.4			1
90 days past billing as a % of total		0.8%			0.8%			0.7%			0.7%			0.9%						0.8%			0.9%
Net loss ratio (as a % of charge volume)		0.08%			0.09%			0.09%			0.09%			0.08%						0.09%			0.08%

# - Denotes a variance of more than 100 percent.

-12-

Global Network & Merchant Services (Preliminary)

Selected Income Statement Data

(Millions, except percentages)

	Quarters Ended															% Change			Years Ended						% Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Dec 31, 2014 vs.			Dec 31,						Dec 31, 2014 vs.
	2014			2014			2014			2014			2013			Dec 31, 2013			2014			2013			Dec 31, 2013
Revenues
Discount revenue, fees and other	$	1,399		$	1,368		$	1,366		$	1,293		$	1,373			2		$	5,426		$	5,229			4
Interest income		17			14			11			10			9			89			52			32			63
Interest expense		(61	)		(68	)		(78	)		(62	)		(65	)		(6	)		(269	)		(252	)		7
Net interest income		78			82			89			72			74			5			321			284			13
Total revenues net of interest expense		1,477			1,450			1,455			1,365			1,447			2			5,747			5,513			4
Provisions for losses		35			24			18			16			14			#			93			67			39
Total revenues net of interest expense after provisions for losses		1,442			1,426			1,437			1,349			1,433			1			5,654			5,446			4
Expenses
Marketing, promotion, rewards, Card Member services and other		185			201			277			156			158			17			819			704			16
Salaries and employee benefits and other operating expenses		587			555			582			491			643			(9	)		2,215			2,273			(3	)
Total		772			756			859			647			801			(4	)		3,034			2,977			2
Pretax segment income		670			670			578			702			632			6			2,620			2,469			6
Income tax provision		253			243			205			259			233			9			960			894			7
Segment income	$	417		$	427		$	373		$	443		$	399			5		$	1,660		$	1,575			5
Effective tax rate		37.8%			36.3%			35.5%			36.9%			36.9%						36.6%			36.2%
Selected Statistical Information
(Billions, except percentages and where indicated)
Global Card billed business (P)	$	268.5		$	258.1		$	258.1		$	238.1		$	254.0			6		$	1,022.8		$	952.4			7
Global Network & Merchant Services:
Total segment assets	$	18.1		$	18.2		$	18.7		$	18.3		$	17.1			6		$	18.1		$	17.1			6
Segment capital (M)	$	2.0		$	2.0		$	2.0		$	1.9		$	2.0			1		$	2.0		$	2.0			1
Return on average segment capital (N)		84.0%			82.6%			79.4%			81.2%			76.8%						84.0%			76.8%
Return on average tangible segment capital (N)		92.9%			91.3%			87.8%			89.7%			84.9%						92.9%			84.9%
Global Network Services:
Card billed business	$	42.5		$	41.6		$	40.1		$	36.6		$	39.3			8		$	160.7		$	144.1			12
Total cards-in-force (millions)		44.0			43.2			42.5			41.3			40.7			8			44.0			40.7			8

# - Denotes a variance of more than 100 percent.

-13-

American Express Company (Preliminary)

Components of Return on Average Equity (ROE), Return on Average Common Equity (ROCE), and Return on Average Tangible Common Equity (ROTCE)

Appendix I

(Millions, except percentages)

	For the Twelve Months Ended
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2014		2014		2014		2014		2013
ROE
Net income	$	5,885	$	5,746	$	5,635	$	5,511	$	5,359
Average shareholders' equity	$	20,254	$	19,948	$	19,591	$	19,442	$	19,254
Return on average equity (Q)		29.1%		28.8%		28.8%		28.3%		27.8%
Reconciliation of ROCE and ROTCE
Net income	$	5,885	$	5,746	$	5,635	$	5,511	$	5,359
Preferred shares dividends and related accretion		-		-		-		-		-
Earnings allocated to participating share awards and other		46		46		47		48		47
Net income attributable to common shareholders	$	5,839	$	5,700	$	5,588	$	5,463	$	5,312
Average shareholders' equity	$	20,254	$	19,948	$	19,591	$	19,442	$	19,254
Average preferred shares		114		-		-		-		-
Average common shareholders' equity	$	20,140	$	19,948	$	19,591	$	19,442	$	19,254
Average goodwill and other intangibles		3,888		3,941		3,994		4,012		4,055
Average tangible common shareholders' equity	$	16,252	$	16,007	$	15,597	$	15,430	$	15,199
Return on average common equity (Q)		29.0%		28.6%		28.5%		28.1%		27.6%
Return on average tangible common equity (R)		35.9%		35.6%		35.8%		35.4%		34.9%

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American Express Company (Preliminary)

Components of Return on Average Segment Capital (ROSC) and Return on Average Tangible Segment Capital (ROTSC)

Appendix II

(Millions, except percentages)

	For the Twelve Months Ended
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2014		2014		2014		2014		2013
U.S. Card Services
Segment income	$	3,200	$	3,399	$	3,292	$	3,265	$	3,193
Average segment capital	$	9,843	$	9,580	$	9,337	$	9,180	$	8,974
Average goodwill and other intangibles		319		299		311		323		334
Average tangible segment capital	$	9,524	$	9,281	$	9,026	$	8,857	$	8,640
Return on average segment capital (S)		32.5%		35.5%		35.3%		35.6%		35.6%
Return on average tangible segment capital (S)		33.6%		36.6%		36.5%		36.9%		37.0%
International Card Services
Segment income	$	411	$	481	$	481	$	612	$	631
Average segment capital	$	3,020	$	3,043	$	3,063	$	3,053	$	3,024
Average goodwill and other intangibles		1,350		1,376		1,394		1,389		1,396
Average tangible segment capital	$	1,670	$	1,667	$	1,669	$	1,664	$	1,628
Return on average segment capital (S)		13.6%		15.8%		15.7%	��	20.0%		20.9%
Return on average tangible segment capital (S)		24.6%		28.9%		28.8%		36.8%		38.8%
Global Commercial Services
Segment income	$	1,543	$	1,131	$	1,188	$	853	$	860
Average segment capital	$	3,771	$	3,736	$	3,707	$	3,679	$	3,647
Average goodwill and other intangibles		1,696		1,715		1,736		1,759		1,768
Average tangible segment capital	$	2,075	$	2,021	$	1,971	$	1,920	$	1,879
Return on average segment capital (S)		40.9%		30.3%		32.0%		23.2%		23.6%
Return on average tangible segment capital (S)		74.4%		56.0%		60.3%		44.4%		45.8%
Global Network & Merchant Services
Segment income	$	1,660	$	1,642	$	1,606	$	1,645	$	1,575
Average segment capital	$	1,976	$	1,989	$	2,022	$	2,026	$	2,050
Average goodwill and other intangibles		189		190		192		193		195
Average tangible segment capital	$	1,787	$	1,799	$	1,830	$	1,833	$	1,855
Return on average segment capital (S)		84.0%		82.6%		79.4%		81.2%		76.8%
Return on average tangible segment capital (S)		92.9%		91.3%		87.8%		89.7%		84.9%

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American Express Company (Preliminary)

Net Interest Yield on Card Member Loans

Appendix III

(Millions, except percentages and where indicated)

	Quarters Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
	2014			2014			2014			2014			2013
Net interest income	$	1,424		$	1,395	��	$	1,316		$	1,337		$	1,319
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio	$	250		$	247		$	259		$	263		$	279
Interest income not attributable to the Company's Card Member loan portfolio	$	(92	)	$	(90	)	$	(89	)	$	(88	)	$	(91	)
Adjusted net interest income (T)	$	1,582		$	1,552		$	1,486		$	1,512		$	1,507
Average loans (billions)	$	67.7		$	66.4		$	65.2		$	64.5		$	64.4
Exclude:
Unamortized deferred card fees, net of direct acquisition costs of Card Member loans, and other (billions)	$	(0.2	)	$	(0.2	)	$	(0.2	)	$	(0.2	)	$	(0.2	)
Adjusted average loans (billions) (U)	$	67.5		$	66.2		$	65.0		$	64.3		$	64.2
Net interest income divided by average loans (V)		8.4%			8.5%			8.1%			8.4%			8.1%
Net interest yield on Card Member loans (W)		9.3%			9.3%			9.2%			9.5%			9.3%

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U.S. Card Services and International Card Services (Preliminary)

Net Interest Yield on Card Member Loans

Appendix IV

(Millions, except percentages and where indicated)

	Quarters Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
	2014			2014			2014			2014			2013
USCS:
Net interest income	$	1,341		$	1,313		$	1,255		$	1,273		$	1,256
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio	$	39		$	39		$	40		$	39		$	43
Interest income not attributable to the Company's Card Member loan portfolio	$	(3	)	$	(3	)	$	(3	)	$	(3	)	$	(2	)
Adjusted net interest income (T)	$	1,377		$	1,349		$	1,292		$	1,309		$	1,297
Average loans (billions)	$	59.7		$	58.0		$	56.8		$	56.1		$	55.8
Exclude:
Unamortized deferred card fees, net of direct acquisition costs of Card Member loans (billions)	$	-		$	-		$	-		$	0.1		$	-
Adjusted average loans (billions) (U)	$	59.7		$	58.0		$	56.8		$	56.2		$	55.8
Net interest income divided by average loans (V)		9.0%			9.1%			8.9%			9.2%			8.9%
Net interest yield on Card Member loans (W)		9.1%			9.2%			9.1%			9.4%			9.2%
ICS:
Net interest income	$	189		$	188		$	183		$	195		$	200
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio	$	26		$	24		$	21		$	18		$	21
Interest income not attributable to the Company's Card Member loan portfolio	$	(9	)	$	(10	)	$	(10	)	$	(10	)	$	(11	)
Adjusted net interest income (T)	$	206		$	202		$	194		$	203		$	210
Average loans (billions)	$	7.9		$	8.3		$	8.3		$	8.3		$	8.5
Exclude:
Unamortized deferred card fees, net of direct acquisition costs of Card Member loans, and other (billions)	$	(0.2	)	$	(0.2	)	$	(0.2	)	$	(0.2	)	$	(0.2	)
Adjusted average loans (billions) (U)	$	7.7		$	8.1		$	8.1		$	8.1		$	8.3
Net interest income divided by average loans (V)		9.6%			9.1%			8.8%			9.5%			9.3%
Net interest yield on Card Member loans (W)		10.5%			9.9%			9.6%			10.1%			10.0%

-17-

American Express Company (Preliminary)

Revenue and Expense Reconciliation

Appendix V

(Millions, except percentages)

	Quarters Ended				% Change			Twelve Months Ended				% Change
	Dec 31,		Dec 31,		Dec 31, 2014 vs.			Dec 31,		Dec 31,		Dec 31, 2014 vs.
	2014		2013		31-Dec-13			2014		2013		Dec 31, 2013
Consolidated:
Reported total revenues net of interest expense	$	9,107	$	8,547		7		$	34,292	$	32,974		4
Global Business Travel ("GBT") revenues net of interest expense		-		405					-		801
Adjusted total revenues net of interest expense		9,107		8,142		12			34,292		32,173		7
FX and GBT adjusted total revenues net of interest expense (X)				7,961		14					31,832		8
Reported total expenses		6,300		6,088		3			23,257		23,254		-
GBT expenses		-		362					-		698
Adjusted total expenses		6,300		5,726		10			23,257		22,556		3
FX and GBT adjusted total expenses (X)				5,608		12					22,371		4
Global Commercial Services:
Reported total revenues net of interest expense		1,585		1,238		28			4,948		4,853		2
GBT revenues net of interest expense		-		405					-		801
Adjusted total revenues net of interest expense		1,585		833		90			4,948		4,052		22
FX and GBT adjusted total revenues net of interest expense (X)				813		95					4,018		23
Reported total expenses		586		915		(36	)		2,360		3,480		(32	)
GBT expenses		-		362					-		698
Adjusted total expenses	$	586	$	553		6		$	2,360	$	2,782		(15	)
FX and GBT adjusted total expenses (X)				542		8					2,767		(15	)

Note: Full-year GBT revenues and expenses represent operating performance as reported in Q3’13 and Q4'13. Adjustments do not include other Global Business Travel-related items, including equity earnings from the joint venture and impacts related to a transition services agreement that will phase out over time.

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Appendix VI (Preliminary)

All Information in the preceding tables is presented on a basis prepared in accordance with U.S. generally accepted accounting principles (GAAP), unless otherwise indicated. Certain reclassifications of prior period amounts have been made to conform to the current period presentation.

(A) Represents net income, less earnings allocated to participating share awards of $11 million for the quarter ended December 31, 2014, $11 million for the quarter ended September 30, 2014, $12 million for the quarter ended June 30, 2014, $12 million for the quarter ended March 31, 2014, and $11 million for the quarter ended December 31, 2013.

(B) Refer to Appendix I for components of return on average equity, return on average common equity and return on average tangible common equity, a non-GAAP measure.

(C) Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements (non-proprietary billed business), and certain insurance fees charged on proprietary cards. In-store spend activity within retail co-brand portfolios in Global Network Services, from which the Company earns no revenue, is not included in non-proprietary billed business. Card billed business is reflected in the United States or outside the United States based on where the issuer is located.

(D) Total cards-in-force represents the number of cards that are issued and outstanding. Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include additional supplemental cards issued on that account. Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee Card Members. Non-proprietary cards-in-force includes all cards that are issued and outstanding under network partnership agreements, except for retail co-brand Card Member accounts that have no out-of-store spend activity during the prior 12 month period.

(E) This calculation is designed to reflect pricing at merchants accepting general purpose American Express cards. It represents the percentage of billed business (both proprietary and Global Network Services) retained by the Company from merchants it acquires, prior to payments to third parties unrelated to merchant acceptance.

(F) Average basic Card Member spending and average fee per card are computed from proprietary card activities only. Average fee per card is computed based on net card fees, including the amortization of deferred direct acquisition costs divided by average worldwide proprietary cards-in-force. The adjusted average fee per card, which is a non-GAAP measure, is computed in the same manner, but excludes amortization of deferred direct acquisition costs. The amount of amortization excluded for these periods was $79 million for the quarter ended December 31, 2014, $77 million for the quarter ended September 30, 2014, $77 million for the quarter ended June 30, 2014, $73 million for the quarter ended March 31, 2014, and $64 million for the quarter ended December 31, 2013. The Company presents adjusted average fee per card because the Company believes this metric presents a useful indicator of card fee pricing across a range of its proprietary card products.

(G) Provisions for principal (resulting from authorized transactions) and fee reserve components.

(H) Consists of principal (resulting from authorized transactions), interest and/or fees, less recoveries.

(I) Beginning in first quarter 2014, reserves related for card-related fraud losses are reflected in Other liabilities. All periods include foreign currency translation adjustments and other items.

(J) The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because the Company's practice is to include uncollectible interest and/or fees as part of its total provision for losses, a net write-off rate including principal, interest and/or fees is also presented.

(K) See Appendix III for quarterly calculations of net interest yield on Card Member loans, a non-GAAP measure, and net interest income divided by average loans, a GAAP measure, and the Company's rationale for presenting net interest yield on Card Member loans. For calculations for the twelve months ended December 31, 2014 and 2013, please refer to Annex 3 of the Company’s 2014 Fourth Quarter/ Full Year Earnings Supplement on file with the Securities and Exchange Commission.

(L) Historically, net loss ratio as a % of charge volume and 90 days past billings as a % of receivables were presented for ICS and GCS. As a result of system enhancements, beginning in first quarter 2014, 30 days past due as a % of total, net write-off rate (principal only) and net write-off rate (principal and fees) will be presented for ICS.

(M) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(N) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital, a non-GAAP measure.

(O) See Appendix IV for calculations of net interest yield on Card Member loans, a non-GAAP measure, and net interest income divided by average loans, a GAAP measure, and the Company's rationale for presenting net interest yield on Card Member loans.

(P) Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements (non-proprietary billed business), and certain insurance fees charged on proprietary cards. In-store spend activity within retail co-brand portfolios in Global Network Services, from which the Company earns no revenue, is not included in non-proprietary billed business.

(Q) Return on average equity and return on average common equity are calculated by dividing one year period net income/net income attributable to common shareholders by one year average total shareholders’ equity/average common shareholders' equity, respectively.

(R) Return on average tangible common equity, a non-GAAP measure, is computed in the same manner as return on average common equity except the computation of average tangible common shareholders' equity, a non-GAAP measure, excludes from average common shareholders' equity, average goodwill and other intangibles. The Company believes that return on average tangible common equity is a useful measure of the profitability of its business.

(S) Return on average segment capital is calculated by dividing one year period segment income by one year average segment capital. Return on average tangible segment capital, a non-GAAP measure, is computed in the same manner as return on average segment capital except the computation of average tangible segment capital, a non-GAAP measure, excludes average goodwill and other intangibles. The Company believes that return on average tangible segment capital is a useful measure of the profitability of its business.

(T) Adjusted net interest income, a non-GAAP measure, represents net interest income allocated to the Company's Card Member loan portfolio excluding the impact of interest expense and interest income not attributable to the Company's Card Member loan portfolio. The Company believes adjusted net interest income is useful to investors because it is a component of net interest yield on Card Member loans.

(U) Adjusted average loans, a non-GAAP measure, represents average Card Member loans excluding the impact of deferred card fees, net of deferred direct acquisition costs of Card Member loans, and other. The Company believes adjusted average loans is useful to investors because it is a component of net interest yield on Card Member loans.

(V) This calculation 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 Card Member loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to Card Member loans, and interest expense attributable to other activities, including Card Member receivables.

(W) Net interest yield on Card Member loans, a non-GAAP measure, is computed by dividing adjusted net interest income by adjusted average loans, computed on an annualized basis. The calculation of net interest yield on Card Member loans includes interest that is deemed uncollectible. For all presentations of net interest yield on Card Member loans, reserves and net write-offs related to uncollectible interest are recorded through provisions for losses - Card Member loans; therefore, such reserves and net write-offs are not included in the net interest yield calculation. The Company believes net interest yield on Card Member loans is useful to investors because it provides a measure of profitability of the Company's Card Member loan portfolio.

(X) Revenue net of interest expense and total expenses on an FX adjusted basis are a non-GAAP measures. 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 Q3’14 foreign exchange rates apply to Q3'13 results). The Company’s calculations of non-GAAP measures may differ from the calculations of similarly titled measures of other companies.

-19-