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

EXHIBIT 99.2

 

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

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			YOY % change			FY'17			FY'16			YOY % change
Non-interest revenues
Discount revenue	$	4,772		$	4,815		$	4,519		$	4,697		$	4,516			6		$	14,106		$	13,983			1
Net card fees		786			771			748			725			747			5			2,305			2,161			7
Other fees and commissions		767			752			713			677			694			11			2,232			2,076			8
Other		436			439			409			515			483			(10	)		1,284			1,514			(15	)
Total non-interest revenues		6,761			6,777			6,389			6,614			6,440			5			19,927			19,734			1
Interest income
Interest on loans		2,129			1,947			1,860			1,759			1,690			26			5,936			5,446			9
Interest and dividends on investment securities		22			23			23			27			34			(35	)		68			104			(35	)
Deposits with banks and other		91			82			60			35			40			#			233			104			#
Total interest income		2,242			2,052			1,943			1,821			1,764			27			6,237			5,654			10
Interest expense
Deposits		213			176			149			148			150			42			538			450			20
Long-term debt and other		354			346			294			265			280			26			994			841			18
Total interest expense		567			522			443			413			430			32			1,532			1,291			19
Net interest income		1,675			1,530			1,500			1,408			1,334			26			4,705			4,363			8
Total revenues net of interest expense		8,436			8,307			7,889			8,022			7,774			9			24,632			24,097			2
Provisions for losses
Charge card		214			163			213			200			174			23			590			496			19
Card Member loans		531			404			337			404			319			66			1,272			831			53
Other		24			17			23			21			11			#			64			74			(14	)
Total provisions for losses		769			584			573			625			504			53			1,926			1,401			37
Total revenues net of interest expense after provisions for losses		7,667			7,723			7,316			7,397			7,270			5			22,706			22,696			-
Expenses
Marketing and promotion		814			830			700			1,205			930			(12	)		2,344			2,445			(4	)
Card Member rewards		1,900			1,926			1,807			1,758			1,566			21			5,633			5,035			12
Card Member services and other		363			349			321			292			278			31			1,033			841			23
Salaries and employee benefits		1,265			1,293			1,264			1,207			1,263			-			3,822			4,052			(6	)
Professional services		501			521			512			721			630			(20	)		1,534			1,862			(18	)
Occupancy and equipment		568			484			475			506			429			32			1,527			1,332			15
Other, net		429			371			420			547			439			(2	)		1,220			194			#
Total expenses		5,840			5,774			5,499			6,236			5,535			6			17,113			15,761			9
Pretax income		1,827			1,949			1,817			1,161			1,735			5			5,593			6,935			(19	)
Income tax provision		471			609			580			336			593			(21	)		1,660			2,352			(29	)
Net income	$	1,356		$	1,340		$	1,237		$	825		$	1,142			19		$	3,933		$	4,583			(14	)
Net income attributable to common shareholders (A)	$	1,324		$	1,310		$	1,206		$	800		$	1,112			19		$	3,840		$	4,485			(14	)
Effective tax rate		25.8	%		31.2	%		31.9	%		28.9	%		34.2	%					29.7	%		33.9	%
Earnings Per Common Share
Basic
Net income attributable to common shareholders	$	1.51		$	1.47		$	1.34		$	0.88		$	1.21			25		$	4.32		$	4.77			(9	)
Average common shares outstanding		878			890			899			910			920			(5	)		889			940			(5	)
Diluted
Net income attributable to common shareholders	$	1.50		$	1.47		$	1.34		$	0.88		$	1.20			25		$	4.30		$	4.76			(10	)
Average common shares outstanding		881			893			903			913			923			(5	)		892			943			(5	)
Cash dividends declared per common share	$	0.35		$	0.32		$	0.32		$	0.32		$	0.32			9		$	0.99		$	0.90			10

# - Denotes a variance of more than 100 percent.

See Appendix V for footnote references

-1-

American Express Company	(Preliminary)
Consolidated Balance Sheets and Related Statistical Information
(Billions, except percentages, per share amounts and where indicated)

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			YOY % change
Assets
Cash & cash equivalents	$	26		$	30		$	29		$	25		$	27			(4	)
Card Member receivables, less reserves		51			49			47			47			45			13
Card Member Loans, less reserves		66			65			62			64			60			10
Investment securities		3			3			4			3			4			(25	)
Other (B)		23			20			19			20			17			35
Total assets	$	169		$	167		$	161		$	159		$	153			10
Liabilities and Shareholders' Equity
Customer deposits	$	61		$	58		$	54		$	53		$	54			13
Short-term borrowings		2			3			4			6			3			(33	)
Long-term debt		49			52			52			47			45			9
Other (B)		36			33			30			32			30			20
Total liabilities		148			146			140			138			132			12
Shareholders' Equity		21			21			21			21			21			-
Total liabilities and shareholders' equity	$	169		$	167		$	161		$	159		$	153			10
Return on average equity (C)		22.7	%		21.7	%		25.1	%		26.0	%		26.1	%
Return on average common equity (C)		23.9	%		22.9	%		26.5	%		27.5	%		27.6	%
Book value per common share (dollars)	$	22.39		$	22.14		$	21.62		$	20.93		$	21.20			6

See Appendix V for footnote references

-2-

American Express Company	(Preliminary)
Consolidated Capital

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16
Shares Outstanding (in millions)
Beginning of period		885			895			904			917			925
Repurchase of common shares		(15	)		(10	)		(11	)		(15	)		(8	)
Net impact of employee benefit plans and others		1			-			2			2			-
End of period		871			885			895			904			917
Risk-Based Capital Ratios - Transitional Basel III ($ in billions) (D)
Common Equity Tier 1/Risk Weighted Assets (RWA)		11.9	%		12.3	%		12.7	%		12.3	%		13.6	%
Tier 1		13.0	%		13.5	%		13.9	%		13.5	%		14.9	%
Total		14.7	%		15.2	%		15.6	%		15.2	%		16.6	%
Common Equity Tier 1	$	16.4		$	16.4		$	16.3		$	16.1		$	16.8
Tier 1 Capital	$	17.9		$	18.0		$	17.8		$	17.7		$	18.4
Tier 2 Capital	$	2.3		$	2.3		$	2.2		$	2.2		$	2.1
Total Capital	$	20.2		$	20.3		$	20.0		$	19.9		$	20.5
RWA	$	138.0		$	133.5		$	128.6		$	131.0		$	123.6
Tier 1 Leverage		10.9	%		11.0	%		11.5	%		11.6	%		11.9	%
Supplementary Leverage Ratio (SLR) (E)		9.3	%		9.4	%		9.9	%		10.0	%		10.3	%
Average Total Assets to calculate the Tier 1 Leverage Ratio (F)	$	164.6		$	164.2		$	155.0		$	152.7		$	154.2
Total Leverage Exposure to calculate SLR	$	191.7		$	190.4		$	180.5		$	177.5		$	178.7
Risk-Based Capital Ratios - Estimated fully phased-in Basel III ($ in billions) (D) (G)
RWA	$	139.2		$	135.0		$	130.3		$	131.9		$	124.7
Risk-Based Capital (Common Equity Tier 1)	$	16.1		$	16.1		$	16.0		$	15.6		$	16.3
Risk-Based Capital (Tier 1)	$	17.6		$	17.7		$	17.5		$	17.2		$	17.9
Common Equity Tier 1 ratio (H)		11.5	%		12.0	%		12.3	%		11.8	%		13.1	%
Tier 1 Risk-Based Capital Ratio (I)		12.7	%		13.1	%		13.5	%		13.0	%		14.3	%
Supplementary Leverage Ratio (J)		9.2	%		9.3	%		9.7	%		9.7	%		10.0	%

See Appendix V for footnote references

-3-

American Express Company	(Preliminary)
Selected Card Related Statistical Information
(Billions, except percentages and where indicated)

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			YOY % change		FY'17			FY'16			YOY % change
Card billed business (K)
United States	$	176.4		$	177.6		$	165.4		$	174.4		$	164.6			7	$	519.4		$	526.0			(1	)
Outside the United States		95.5			92.0			86.9			88.8			86.6			10		274.4			248.3			11
Worldwide	$	271.9		$	269.6		$	252.3		$	263.2		$	251.2			8	$	793.8		$	774.3			3
Proprietary	$	225.3		$	223.8		$	208.9		$	218.6		$	206.4			9	$	658.0		$	645.2			2
Global Network Services (GNS)		46.6			45.8			43.4			44.6			44.8			4		135.8			129.1			5
Worldwide	$	271.9		$	269.6		$	252.3		$	263.2		$	251.2			8	$	793.8		$	774.3			3
Total cards-in-force (millions) (L)
United States		49.5			48.9			48.2			47.5			47.1			5		49.5			47.1			5
Outside the United States		63.4			63.3			63.0			62.4			61.7			3		63.4			61.7			3
Worldwide		112.9			112.2			111.2			109.9			108.8			4		112.9			108.8			4
Proprietary		63.9			63.0			62.2			61.3			60.7			5		63.9			60.7			5
GNS		49.0			49.2			49.0			48.6			48.1			2		49.0			48.1			2
Worldwide		112.9			112.2			111.2			109.9			108.8			4		112.9			108.8			4
Basic cards-in-force (millions) (L)
United States		39.0			38.6			38.1			37.4			37.0			5		39.0			37.0			5
Outside the United States		52.7			52.6			52.2			51.7			51.1			3		52.7			51.1			3
Worldwide		91.7			91.2			90.3			89.1			88.1			4		91.7			88.1			4
Average basic Card Member spending (dollars) (M)
United States	$	5,018		$	5,128		$	4,859		$	5,181		$	4,937			2	$	15,009		$	13,732			9
Outside the United States	$	3,598		$	3,468		$	3,283		$	3,401		$	3,264			10	$	10,351		$	9,667			7
Worldwide	$	4,596		$	4,633		$	4,387		$	4,647		$	4,433			4	$	13,620		$	12,628			8
Card Member loans
United States	$	59.9		$	58.5		$	56.6		$	58.3		$	53.9			11	$	59.9		$	53.9			11
Outside the United States		8.0			7.5			7.0			7.0			6.7			19		8.0			6.7			19
Worldwide	$	67.9		$	66.0		$	63.6		$	65.3		$	60.6	��		12	$	67.9		$	60.6			12
Average discount rate (N)		2.42	%		2.44	%		2.45	%		2.44	%		2.47	%				2.44	%		2.45	%
Average fee per card (dollars) (M)	$	49		$	49		$	48		$	47		$	49			-	$	49		$	43			14

# - Denotes a variance of 100 percent or more.

See Appendix V for footnote references

-4-

American Express Company	(Preliminary)
Selected Credit Related Statistical Information
(Billions, except percentages and where indicated)

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			YOY % change		FY'17			FY'16			YOY % change
Worldwide Card Member receivables (O)
Total receivables	$	51.5		$	49.4		$	47.6		$	47.3		$	45.3			14	$	51.5		$	45.3			14
Loss reserves (millions):
Beginning balance	$	475		$	491		$	467		$	437		$	423			12	$	467		$	462			1
Provisions (P)		214			163			213			200			174			23		590			496			19
Net write-offs (Q)		(175	)		(179	)		(194	)		(156	)		(159	)		10		(548	)		(518	)		6
Other (R)		(2	)		-			5			(14	)		(1	)		#		3			(3	)		#
Ending balance	$	512		$	475		$	491		$	467		$	437			17	$	512		$	437			17
% of receivables		1.0	%		1.0	%		1.0	%		1.0	%		1.0	%				1.0	%		1.0	%
Net write-off rate, excluding Global Corporate Payments (GCP) (principal only) (S)		1.5	%		1.5	%		1.7	%		1.3	%		1.4	%				1.6	%		1.6	%
Net write-off rate, excluding GCP (principal and fees) (S)		1.7	%		1.7	%		2.0	%		1.5	%		1.6	%				1.8	%		1.8	%
30+ days past due as a % of total, excluding GCP		1.3	%		1.3	%		1.5	%		1.4	%		1.4	%				1.3	%		1.4	%
GCP Net loss ratio (as a % of charge volume) (T)		0.09	%		0.10	%		0.11	%		0.10	%		0.11	%				0.10	%		0.09	%
GCP 90+ days past billing as a % of total (T)		0.9	%		0.8	%		0.7	%		0.9	%		0.8	%				0.9	%		0.8	%
Worldwide Card Member loans (O)
Total loans	$	67.9		$	66.0		$	63.6		$	65.3		$	60.6			12	$	67.9		$	60.6			12
Loss reserves (millions):
Beginning balance	$	1,320		$	1,248		$	1,223		$	1,114		$	1,091			21	$	1,223		$	1,028			19
Provisions (P)		531			404			337			404			319			66		1,272			831			53
Net write-offs - principal (Q)		(299	)		(285	)		(272	)		(243	)		(250	)		20		(856	)		(687	)		25
Net write-offs - interest and fees (Q)		(57	)		(55	)		(51	)		(47	)		(48	)		19		(163	)		(128	)		27
Other (R)		7			8			11			(5	)		2			#		26			70			(63	)
Ending balance	$	1,502		$	1,320		$	1,248		$	1,223		$	1,114			35	$	1,502		$	1,114			35
Ending reserves - principal	$	1,427		$	1,247		$	1,179		$	1,160		$	1,050			36	$	1,427		$	1,050			36
Ending reserves - interest and fees	$	75		$	73		$	69		$	63		$	64			17	$	75		$	64			17
% of loans		2.2	%		2.0	%		2.0	%		1.9	%		1.8	%				2.2	%		1.8	%
% of past due		174	%		167	%		158	%		161	%		160	%				174	%		160	%
Average loans	$	67.1		$	65.1		$	63.9		$	62.6		$	60.3			11	$	65.4		$	58.9			11
Net write-off rate (principal only) (S)		1.8	%		1.8	%		1.7	%		1.6	%		1.7	%				1.7	%		1.6	%
Net write-off rate (principal, interest and fees) (S)		2.1	%		2.1	%		2.0	%		1.9	%		2.0	%				2.1	%		1.8	%
30+ days past due loans as a % of total		1.3	%		1.2	%		1.2	%		1.2	%		1.1	%				1.3	%		1.1	%
Net interest income divided by average loans (U)		10.0	%		9.4	%		9.4	%		9.0	%		8.8	%				9.6	%		8.7	%
Net interest yield on Card Member loans (U)		10.7	%		10.3	%		10.3	%		9.9	%		9.8	%				10.5	%		9.6	%

# - Denotes a variance of 100 percent or more.

See Appendix V for footnote references

-5-

American Express Company	(Preliminary)
Selected Income Statement Information by Segment
(Millions)

	U.S. Consumer Services		International Consumer and Network Services			Global Commercial Services			Global Merchant Services			Corporate and Other			Consolidated
	(USCS)		(ICNS)			(GCS)			(GMS)
Q3'17
Non-interest revenues	$	1,976	$	1,277		$	2,360		$	1,088		$	60		$	6,761
Interest income		1,509		271			351			-			111			2,242
Interest expense		202		65			144			(65	)		221			567
Total revenues net of interest expense		3,283		1,483			2,567			1,153			(50	)		8,436
Total provision		459		106			194			8			2			769
Pretax income (loss)		700		307			772			517			(469	)		1,827
Income tax provision (benefit)		225		21			243			149			(167	)		471
Net income (loss)		475		286			529			368			(302	)		1,356
Q3'16
Non-interest revenues	$	1,849	$	1,205		$	2,240		$	1,044		$	102		$	6,440
Interest income		1,178		231			282			-			73			1,764
Interest expense		125		55			98			(60	)		212			430
Total revenues net of interest expense		2,902		1,381			2,424			1,104			(37	)		7,774
Total provision		275		84			134			8			3			504
Pretax income (loss)		615		208			729			571			(388	)		1,735
Income tax provision (benefit)		214		53			263			212			(149	)		593
Net income (loss)		401		155			466			359			(239	)		1,142
YOY % change
Non-interest revenues		7		6			5			4			(41	)		5
Interest income		28		17			24			-			52			27
Interest expense		62		18			47			8			4			32
Total revenues net of interest expense		13		7			6			4			35			9
Total provision		67		26			45			-			(33	)		53
Pretax income (loss)		14		48			6			(9	)		21			5
Income tax provision (benefit)		5		(60	)		(8	)		(30	)		12			(21	)
Net income (loss)		18		85			14			3			26			19

# - Denotes a variance of 100 percent or more.

See Appendix V for footnote references

-6-

American Express Company	(Preliminary)
Billed Business Growth Trend

	YOY % change
	Reported															FX-Adjusted (V)															Reported			FX-Adjusted (V)
	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			FY'17			FY'17
Worldwide (W)
Total Billed Business		8	%		-			(1	%)		(4	%)		(3	%)		8	%		1	%		-			(3	%)		(3	%)		3	%		3	%
Proprietary billed business		9			(1	)		(2	)		(5	)		(5	)		9			-			(2	)		(4	)		(5	)		2			2
GNS billed business (X)		4			5			7			3			10			4			5			6			4			10			5			5
Airline-related volume (8% of Q3'17 worldwide billed business)		5			1			1			(3	)		(6	)		3			1			2			(1	)		(5	)		2			2
United States (W)
Billed Business		7			(4	)		(6	)		(8	)		(9	)		n/a			n/a			n/a			n/a			n/a			(1	)		n/a
Proprietary consumer card billed business (Y)		7			(9	)		(13	)		(14	)		(15	)		n/a			n/a			n/a			n/a			n/a			(6	)		n/a
Proprietary small business and corporate services billed business (Z)		9			4			2			1			(1	)		n/a			n/a			n/a			n/a			n/a			5			n/a
T&E-related volume (25% of Q3'17 U.S. billed business)		3			(3	)		(5	)		(6	)		(7	)		n/a			n/a			n/a			n/a			n/a			(2	)		n/a
Non-T&E-related volume (75% of Q3'17 U.S. billed business)		8			(4	)		(7	)		(9	)		(9	)		n/a			n/a			n/a			n/a			n/a			(1	)		n/a
Airline-related volume (7% of Q3'17 U.S. billed business)		2			(1	)		(4	)		(6	)		(11	)		n/a			n/a			n/a			n/a			n/a			(1	)		n/a
Outside the United States (W)
Billed Business		10			9			12			7			10			9			11			13			11			11			11			11
Japan, Asia Pacific & Australia ("JAPA") billed business		8			12			16			14			22			9			13			14			13			16			12			12
Latin America & Canada ("LACC") billed business		10			8			10			1			-			8			9			9			7			7			10			9
Europe, Middle East & Africa ("EMEA") billed business		13			7			7			1			2			10			10			12			9			7			9			11
Proprietary consumer card billed business (X)		15			9			8			4			6			13			12			11			10			8			11			12
Proprietary small business and corporate services billed business (Z)		14			8			13			7			6			11			10			14			11			6			12			12

See Appendix V for footnote references

-7-

U.S. Consumer Services	(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			YOY % change			FY'17			FY'16			YOY % change
Non-interest revenues	$	1,976		$	1,999		$	1,857		$	1,927		$	1,849			7		$	5,832		$	5,947			(2	)
Interest income		1,509			1,369			1,308			1,235			1,178			28			4,186			3,847			9
Interest expense		202			171			146			132			125			62			519			404			28
Net interest income		1,307			1,198			1,162			1,103			1,053			24			3,667			3,443			7
Total revenues net of interest expense		3,283			3,197			3,019			3,030			2,902			13			9,499			9,390			1
Provisions for losses		459			345			294			363			275			67			1,098			702			56
Total revenues net of interest expense after provisions for losses		2,824			2,852			2,725			2,667			2,627			7			8,401			8,688			(3	)
Expenses
Marketing, promotion, rewards, Card Member services and other		1,440			1,469			1,297			1,425			1,274			13			4,206			3,991			5
Salaries and employee benefits and other operating expenses		684			714			728			761			738			(7	)		2,126		��	1,297			64
Total expenses		2,124			2,183			2,025			2,186			2,012			6			6,332			5,288			20
Pretax segment income		700			669			700			481			615			14			2,069			3,400			(39	)
Income tax provision		225			229			231			130			214			5			685			1,238			(45	)
Segment income	$	475		$	440		$	469		$	351		$	401			18		$	1,384		$	2,162			(36	)
Effective tax rate		32.1	%		34.2	%		33.0	%		27.0	%		34.8	%					33.1	%		36.4	%
(Billions, except percentages and where indicated)
Card billed business	$	83.7		$	84.8		$	77.5		$	84.3		$	78.6			6		$	246.0		$	261.0			(6	)
Total cards-in-force (millions)		34.4			33.8			33.2			32.7			32.3			7			34.4			32.3			7
Basic cards-in-force (millions)		24.6			24.2			23.7			23.3			22.9			7			24.6			22.9			7
Average basic Card Member spending (dollars) (M)	$	3,433		$	3,538		$	3,297		$	3,643		$	3,452			(1	)	$	10,271		$	9,878			4
Total segment assets	$	87.7		$	86.8		$	81.2		$	87.4		$	79.4			10		$	87.7		$	79.4			10
Segment capital (AA)	$	7.1		$	7.1		$	7.1		$	7.2		$	7.5			(5	)	$	7.1		$	7.5			(5	)
Return on average segment capital (AA)		24.2	%		23.3	%		31.9	%		34.9	%		37.4	%					24.2	%		37.4	%
Card Member receivables
Total receivables	$	11.2		$	11.3		$	10.9		$	12.3		$	10.1			11		$	11.2		$	10.1			11
30+ days past due as a % of total		1.2	%		1.1	%		1.3	%		1.2	%		1.4	%					1.2	%		1.4	%
Net write-off rate (principal only) (S)		1.2	%		1.2	%		1.5	%		1.3	%		1.1	%					1.3	%		1.4	%
Net write-off rate (principal and fees) (S)		1.3	%		1.4	%		1.7	%		1.5	%		1.3	%					1.5	%		1.6	%
Card Member loans
Total loans	$	49.3		$	48.3		$	46.7		$	48.8		$	44.9			10		$	49.3		$	44.9			10
30+ days past due loans as a % of total		1.3	%		1.1	%		1.2	%		1.1	%		1.1	%					1.3	%		1.1	%
Average loans	$	49.0		$	47.7		$	47.2		$	46.5		$	44.8			9		$	48.1		$	43.7			10
Net write-off rate (principal only) (S)		1.8	%		1.8	%		1.7	%		1.5	%		1.6	%					1.7	%		1.5	%
Net write-off rate (principal, interest and fees) (S)		2.1	%		2.1	%		2.0	%		1.8	%		1.9	%					2.0	%		1.8	%
Net interest income divided by average loans (U)		10.7	%		10.0	%		9.8	%		9.5	%		9.4	%					10.2	%		9.2	%
Net interest yield on Card Member loans (U)		10.6	%		10.1	%		10.0	%		9.6	%		9.5	%					10.2	%		9.3	%

# - Denotes a variance of 100 percent or more.

See Appendix V for footnote references

-8-

International Consumer and Network Services	(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			YOY % change			FY'17			FY'16			YOY % change
Non-interest revenues	$	1,277		$	1,247		$	1,195		$	1,198		$	1,205			6		$	3,719		$	3,587			4
Interest income		271			246			235			230			231			17			752			692			9
Interest expense		65			60			53			52			55			18			178			167			7
Net interest income		206			186			182			178			176			17			574			525			9
Total revenues net of interest expense		1,483			1,433			1,377			1,376			1,381			7			4,293			4,112			4
Provisions for losses		106			84			66			92			84			26			256			233			10
Total revenues net of interest expense after provisions for losses		1,377			1,349			1,311			1,284			1,297			6			4,037			3,879			4
Expenses
Marketing, promotion, rewards, Card Member services and other		587			561			505			642			554			6			1,653			1,535			8
Salaries and employee benefits and other operating expenses		483			513			514			560			535			(10	)		1,510			1,608			(6	)
Total expenses		1,070			1,074			1,019			1,202			1,089			(2	)		3,163			3,143			1
Pretax segment income		307			275			292			82			208			48			874			736			19
Income tax provision/(benefit)		21			66			74			(2	)		53			(60	)		161			165			(2	)
Segment income	$	286		$	209		$	218		$	84		$	155			85		$	713		$	571			25
Effective tax rate		6.8	%		24.0	%		25.3	%		(2.4	%)		25.5	%					18.4	%		22.4	%
(Billions, except percentages and where indicated)
Card billed business
Proprietary	$	30.5		$	28.9		$	26.6		$	28.1		$	26.6			15		$	86.0		$	77.8			11
Global Network Services (GNS)		46.6			45.8			43.4			44.6			44.8			4			135.8			129.1			5
Total	$	77.1		$	74.7		$	70.0		$	72.7		$	71.4			8		$	221.8		$	206.9			7
Total cards-in-force (millions)
Proprietary		15.6			15.4			15.3			15.0			14.8			5			15.6			14.8			5
GNS		49.0			49.2			49.0			48.6			48.1			2			49.0			48.1			2
Total		64.6			64.6			64.3			63.6			62.9			3			64.6			62.9			3
Proprietary basic cards-in-force (millions)		10.8			10.6			10.5			10.3			10.3			5			10.8			10.3			5
Average basic Card Member spending (dollars) (M)	$	2,840		$	2,726		$	2,542		$	2,720		$	2,596			9		$	8,111		$	7,665			6
Total segment assets	$	38.9		$	37.6		$	36.1		$	35.7		$	34.4			13		$	38.9		$	34.4			13
Segment capital (AA)	$	2.9		$	2.8		$	2.7		$	2.5		$	2.7			7		$	2.9		$	2.7			7
Return on average segment capital (AA)		29.5	%		25.2	%		26.4	%		25.4	%		26.4	%					29.5	%		26.4	%
Card Member receivables
Total receivables	$	6.5		$	6.0		$	5.5		$	6.0		$	5.6			16		$	6.5		$	5.6			16
30+ days past due as a % of total		1.4	%		1.4	%		1.5	%		1.3	%		1.5	%					1.4	%		1.5	%
Net write-off rate (principal only) (S)		2.2	%		1.9	%		2.1	%		1.8	%		2.0	%					2.1	%		2.1	%
Net write-off rate (principal and fees) (S)		2.4	%		2.0	%		2.3	%		1.9	%		2.2	%					2.2	%		2.3	%
Card Member loans
Total loans	$	7.8		$	7.2		$	6.8		$	7.0		$	6.7			16		$	7.8		$	6.7			16
30+ days past due loans as a % of total		1.6	%		1.7	%		1.7	%		1.6	%		1.7	%					1.6	%		1.7	%
Average loans	$	7.5		$	7.1		$	6.9		$	6.8		$	6.7			12		$	7.2		$	6.8			6
Net write-off rate (principal only) (S)		2.2	%		2.0	%		2.0	%		2.0	%		2.1	%					2.1	%		2.0	%
Net write-off rate (principal, interest and fees) (S)		2.7	%		2.5	%		2.5	%		2.5	%		2.6	%					2.6	%		2.5	%
Net interest income divided by average loans (U)		11.0	%		10.5	%		10.6	%		10.5	%		10.5	%					10.6	%		10.4	%
Net interest yield on Card Member loans (U)		11.6	%		11.2	%		11.1	%		11.0	%		11.2	%					11.2	%		10.9	%

# - Denotes a variance of 100 percent or more.

See Appendix V for footnote references

-9-

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

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			YOY % change			FY'17			FY'16			YOY % change
Non-interest revenues	$	2,360		$	2,368		$	2,271		$	2,297		$	2,240			5		$	6,999		$	6,710			4
Interest income		351			334			319			296			282			24			1,004			913			10
Interest expense		144			129			109			104			98			47			382			297			29
Net interest income		207			205			210			192			184			13			622			616			1
Total revenues net of interest expense		2,567			2,573			2,481			2,489			2,424			6			7,621			7,326			4
Provisions for losses		194			154			208			171			134			45			556			433			28
Total revenues net of interest expense after provisions for losses		2,373			2,419			2,273			2,318			2,290			4			7,065			6,893			2
Expenses
Marketing, promotion, rewards, Card Member services and other		905			949			938			983			808			12			2,792			2,415			16
Salaries and employee benefits and other operating expenses		696			697			705			790			753			(8	)		2,098			2,078			1
Total expenses		1,601			1,646			1,643			1,773			1,561			3			4,890			4,493			9
Pretax segment income		772			773			630			545			729			6			2,175			2,400			(9	)
Income tax provision		243			273			212			163			263			(8	)		728			873			(17	)
Segment income	$	529		$	500		$	418		$	382		$	466			14		$	1,447		$	1,527			(5	)
Effective tax rate		31.5	%		35.3	%		33.7	%		29.9	%		36.1	%					33.5	%		36.4	%
(Billions, except percentages and where indicated)
Card billed business	$	109.7		$	109.0		$	102.8		$	105.1		$	100.1			10		$	321.5		$	302.8			6
Total cards-in-force (millions)		13.9			13.8			13.7			13.6			13.6			2			13.9			13.6			2
Basic cards-in-force (millions)		13.9			13.8			13.7			13.6			13.6			2			13.9			13.6			2
Average basic Card Member spending (dollars) (M)	$	7,907		$	7,920		$	7,533		$	7,729		$	7,386			7		$	23,364		$	20,857			12
Total segment assets	$	52.7		$	51.0		$	48.3		$	46.5		$	46.8			13		$	52.7		$	46.8			13
Segment capital (AA)	$	7.3		$	7.4		$	7.2		$	7.0		$	7.3			-		$	7.3		$	7.3			-
Return on average segment capital (AA)		25.3	%		24.2	%		25.4	%		26.4	%		28.0	%					25.3	%		28.0	%
Card Member receivables	$	33.8		$	32.1		$	31.2		$	29.0		$	29.6			14		$	33.8		$	29.6			14
Card Member loans	$	10.7		$	10.4		$	10.0		$	9.5		$	9.1			18		$	10.7		$	9.1			18
Card Member receivables
Total receivables - GCP  (T)	$	17.9		$	16.9		$	16.6		$	14.8		$	15.8			13		$	17.9		$	15.8			13
90+ days past billing as a % of total - GCP (T)		0.9	%		0.8	%		0.7	%		0.9	%		0.8	%					0.9	%		0.8	%
Net loss ratio (as a % of charge volume) - GCP (T)		0.09	%		0.10	%		0.11	%		0.10	%		0.11	%					0.10	%		0.09	%
Total receivables - Global Small Business Services (GSBS) (AB)	$	15.9		$	15.2		$	14.6		$	14.3		$	13.8			15		$	15.9		$	13.8			15
30+ days past due as a % of total - GSBS		1.4	%		1.4	%		1.6	%		1.6	%		1.5	%					1.4	%		1.5	%
Net write-off rate (principal only) - GSBS (S)		1.5	%		1.6	%		1.8	%		1.2	%		1.3	%					1.6	%		1.6	%
Net write-off rate (principal and fees) - GSBS (S)		1.7	%		1.8	%		2.0	%		1.4	%		1.5	%					1.8	%		1.8	%
Card Member loans (AC)
Total loans - GSBS	$	10.7		$	10.3		$	10.0		$	9.5		$	9.0			19		$	10.7		$	9.0			19
30+ days past due as a % of total - GSBS		1.1	%		1.1	%		1.2	%		1.1	%		1.1	%					1.1	%		1.1	%
Average loans - GSBS	$	10.5		$	10.1		$	9.6		$	9.3		$	8.8			19		$	10.1		$	8.4			20
Net write-off rate (principal only) - GSBS (S)		1.6	%		1.5	%		1.6	%		1.4	%		1.5	%					1.6	%		1.4	%
Net write-off rate (principal, interest and fees) - GSBS (S)		1.9	%	��	1.8	%		1.8	%		1.7	%		1.8	%					1.9	%		1.7	%
Net interest income divided by average loans (U)		7.9	%		8.0	%		8.7	%		8.3	%		8.3	%					8.2	%		8.4	%
Net interest yield on Card Member loans (U)		10.8	%		10.9	%		11.1	%		10.6	%		10.6	%					10.9	%		10.4	%

# - Denotes a variance of 100 percent or more.

See Appendix V for footnote references

-10-

Global Merchant Services	(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			YOY % change			FY'17			FY'16			YOY % change
Non-interest revenues	$	1,088		$	1,086		$	1,017		$	1,063		$	1,044			4		$	3,191		$	3,172			1
Interest income		-			1			-			-			-			-			1			1			-
Interest expense		(65	)		(65	)		(58	)		(57	)		(60	)		8			(188	)		(180	)		4
Net interest income		65			66			58			57			60			8			189			181			4
Total revenues net of interest expense		1,153			1,152			1,075			1,120			1,104			4			3,380			3,353			1
Provisions for losses		8			-			3			4			8			-			11			21			(48	)
Total revenues net of interest expense after provisions for losses		1,145			1,152			1,072			1,116			1,096			4			3,369			3,332			1
Expenses
Marketing, promotion, rewards, Card Member services and other		48			37			32			61			55			(13	)		117			171			(32	)
Salaries and employee benefits and other operating expenses		580			435			473			499			470			23			1,488			1,422			5
Total expenses		628			472			505			560			525			20			1,605			1,593			1
Pretax segment income		517			680			567			556			571			(9	)		1,764			1,739			1
Income tax provision		149			250			204			187			212			(30	)		603			650			(7	)
Segment income	$	368		$	430		$	363		$	369		$	359			3		$	1,161		$	1,089			7
Effective tax rate		28.8	%		36.8	%		36.0	%		33.6	%		37.1	%					34.2	%		37.4	%
Loyalty Coalition revenue	$	116		$	114		$	102		$	106		$	106			9		$	332		$	304			9
(Billions, except percentages and where indicated)
Average discount rate (N)		2.42	%		2.44	%		2.45	%		2.44	%		2.47	%					2.44	%		2.45	%
Total segment assets	$	26.7		$	25.5		$	24.5		$	24.3		$	23.2			15		$	26.7		$	23.2			15
Segment capital (AA)	$	2.6		$	2.7		$	2.7		$	2.5		$	2.3			13		$	2.6		$	2.3			13
Return on average segment capital (AA)		59.3	%		59.8	%		59.1	%		60.2	%		59.9	%					59.3	%		59.9	%

# - Denotes a variance of 100 percent or more.

See Appendix V for footnote references

-11-

American Express Company	(Preliminary)
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE)
(Millions, except percentages)

	For the Twelve Months Ended
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2017			2017			2017			2016			2016
ROE
Net income	$	4,758		$	4,544		$	5,219		$	5,408		$	5,482
Average shareholders' equity	$	21,000		$	20,909		$	20,786		$	20,805		$	20,969
Return on average equity (C)		22.7	%		21.7	%		25.1	%		26.0	%		26.1	%
Reconciliation of ROCE
Net income	$	4,758		$	4,544		$	5,219		$	5,408		$	5,482
Preferred shares dividends and related accretion		80			80			80			80			81
Earnings allocated to participating share awards and other		38			36			42			43			43
Net income attributable to common shareholders	$	4,640		$	4,428		$	5,097		$	5,285		$	5,358
Average shareholders' equity	$	21,000		$	20,909		$	20,786		$	20,805		$	20,969
Average preferred shares		1,584			1,584			1,584			1,584			1,584
Average common shareholders' equity	$	19,416		$	19,325		$	19,202		$	19,221		$	19,385
Return on average common equity (C)		23.9	%		22.9	%		26.5	%		27.5	%		27.6	%

See Appendix V for footnote references

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American Express Company	(Preliminary)
Appendix II
Components of Return on Average Segment Capital (ROSC)
(Millions, except percentages)

	For the Twelve Months Ended
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,
	2017			2017			2017			2016			2016
U.S. Consumer Services
Segment income	$	1,735		$	1,661		$	2,288		$	2,513		$	2,703
Average segment capital (AA)	$	7,181		$	7,133		$	7,184		$	7,204		$	7,235
Return on average segment capital (AA)		24.2	%		23.3	%		31.9	%		34.9	%		37.4	%
International Consumer and Network Services
Segment income	$	797		$	666		$	685		$	655		$	711
Average segment capital (AA)	$	2,703		$	2,646		$	2,592		$	2,577		$	2,695
Return on average segment capital (AA)		29.5	%		25.2	%		26.4	%		25.4	%		26.4	%
Global Commercial Services
Segment income	$	1,829		$	1,766		$	1,842		$	1,909		$	2,014
Average segment capital (AA)	$	7,227		$	7,290		$	7,262		$	7,237		$	7,202
Return on average segment capital (AA)		25.3	%		24.2	%		25.4	%		26.4	%		28.0	%
Global Merchant Services
Segment income	$	1,530		$	1,521		$	1,464		$	1,458		$	1,453
Average segment capital (AA)	$	2,582		$	2,546		$	2,478		$	2,420		$	2,425
Return on average segment capital (AA)		59.3	%		59.8	%		59.1	%		60.2	%		59.9	%

See Appendix V for footnote references

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American Express Company	(Preliminary)
Appendix III
Net Interest Yield on Card Member Loans
(Millions, except percentages and where indicated)

	Q3'17			Q2'17			Q1'17			Q4'16			Q3'16			FY'17			FY'16
Consolidated
Net interest income	$	1,675		$	1,530		$	1,500		$	1,408		$	1,334		$	4,705		$	4,363
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio		315			302			252			238			261			869			746
Interest income not attributable to the Company's Card Member loan portfolio		(174	)		(155	)		(130	)		(94	)		(104	)		(459	)		(309	)
Adjusted net interest income (AD)	$	1,816		$	1,677		$	1,622		$	1,552		$	1,491		$	5,115		$	4,800
Average loans including Held for Sale (billions)	$	67.1		$	65.1		$	63.9		$	62.6		$	60.3		$	65.4		$	66.6
Net interest income divided by average loans (AE)		10.0	%		9.4	%		9.4	%		9.0	%		8.8	%		9.6	%		8.7	%
Net interest yield on Card Member loans (AF)		10.7	%		10.3	%		10.3	%		9.9	%		9.8	%		10.5	%		9.6	%
U.S. Consumer Services
Net interest income	$	1,307		$	1,198		$	1,162		$	1,103		$	1,053		$	3,667		$	3,443
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio		33			28			23			21			20			84			59
Interest income not attributable to the Company's Card Member loan portfolio		(29	)		(23	)		(18	)		(8	)		(6	)		(70	)		(16	)
Adjusted net interest income (AD)	$	1,311		$	1,203		$	1,167		$	1,116		$	1,067		$	3,681		$	3,486
Average loans including Held for Sale (billions)	$	49.0		$	47.7		$	47.2		$	46.5		$	44.8		$	48.1		$	50.1
Net interest income divided by average loans (AE)		10.7	%		10.0	%		9.8	%		9.5	%		9.4	%		10.2	%		9.2	%
Net interest yield on Card Member loans (AF)		10.6	%		10.1	%		10.0	%		9.6	%		9.5	%		10.2	%		9.3	%
International Consumer and Network Services
Net interest income	$	206		$	186		$	182		$	178		$	176		$	574		$	525
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio		17			14			10			11			12			41			33
Interest income not attributable to the Company's Card Member loan portfolio		(4	)		(3	)		(3	)		-			-			(10	)		(7	)
Adjusted net interest income (AD)	$	219		$	197		$	189		$	189		$	188		$	605		$	551
Average loans (billions)	$	7.5		$	7.1		$	6.9		$	6.8		$	6.7		$	7.2		$	6.8
Net interest income divided by average loans (AE)		11.0	%		10.5	%		10.6	%		10.5	%		10.5	%		10.6	%		10.4	%
Net interest yield on Card Member loans (AF)		11.6	%		11.2	%		11.1	%		11.0	%		11.2	%		11.2	%		10.9	%
Global Commercial Services
Net interest income	$	207		$	205		$	210		$	193		$	184		$	622		$	616
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio		108			99			83			81			79			290			231
Interest income not attributable to the Company's Card Member loan portfolio		(29	)		(27	)		(27	)		(26	)		(28	)		(83	)		(85	)
Adjusted net interest income (AD)	$	286		$	277		$	266		$	248		$	235		$	829		$	762
Average loans including Held for Sale (billions)	$	10.5		$	10.2		$	9.7		$	9.3		$	8.8		$	10.1		$	9.8
Net interest income divided by average loans (AE)		7.9	%		8.0	%		8.7	%		8.3	%		8.3	%		8.2	%		8.4	%
Net interest yield on Card Member loans (AF)		10.8	%		10.9	%		11.1	%		10.6	%		10.6	%		10.9	%		10.4	%

See Appendix V for footnote references

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American Express Company	(Preliminary)
Appendix IV
Reconciliations of Adjustments
(Millions, except percentages and where indicated)

	Q3'17			Q3'16			YOY % Change
Adjusted Operating Expenses
Operating expenses (AG)	$	2,763		$	2,761			-
U.S. Loyalty Coalition and Prepaid charges (pre-tax) (AH)		(155	)
Q3'16 Restructuring charge (pre-tax)					(44	)
Adjusted Operating Expenses	$	2,608		$	2,717			(4	)

See Appendix V for footnote references

-15-

Appendix V (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.  None of the prior period financial information was materially misstated.

(A)	Represents net income, less (i) earnings allocated to participating share awards of $11 million, $11 million, $10 million, $6 million and $9 million in Q3'17, Q2'17, Q1'17, Q4'16 and Q3'16, respectively, and (ii) dividends on preferred shares of $21 million, $19 million, $21 million, $19 million, $21 million in Q3'17, Q2'17, Q1'17, Q4'16 and Q3'16, respectively.
(B)	Within assets, "other" includes the following items as presented in the Company's Consolidated Balance Sheets: Other receivables, Other loans (including merchant financing loans), Premises and equipment and Other assets; and within liabilities, "other" includes the following items: Travelers Cheques and other prepaid products, Accounts payable and Other liabilities.
(C)	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.  Refer to Appendix I for components of return on average equity and return on average common equity.
(D)	These ratios represent preliminary estimates for the current period as of the date of Third Quarter 2017 Earnings Release and may be revised in the Company's 2017 Form 10-Q for period ended September 30, 2017.
(E)	The Company is required to calculate a Supplementary Leverage Ratio, which is defined as Tier 1 Capital divided by Total Leverage Exposure. The Total Leverage Exposure reflects average total consolidated assets with adjustments for Tier 1 Capital deductions and includes off-balance sheet derivatives exposures, repo-style transactions and credit equivalents of undrawn commitments that are both conditionally and unconditionally cancellable.
(F)	Presented for the purpose of calculating the Tier 1 Leverage Ratio.
(G)	Estimated Common Equity Tier 1 Capital, Tier 1 Capital, Risk-Weighted Assets and Average Total Assets for Supplementary Leverage Capital purposes under the fully phased-in Basel III rules reflect the Company's current interpretation of the fully phased-in Basel III rules using the standardized approach. The estimated fully phased-in Basel III amounts could change in the future if the Company's business changes.
(H)	The Common Equity Tier 1 Capital ratio under the fully phased-in Basel III rules is calculated as Common Equity Tier 1 Capital under fully phased-in Basel III rules divided by estimated Risk-Weighted Assets under fully phased-in Basel III rules.
(I)	The Tier 1 Risk-Based Capital ratio under the fully phased-in Basel III rules is calculated as Tier 1 Risk-Based Capital under the fully phased-in Basel III rules divided by estimated Risk-Weighted Assets under the fully phased-in Basel III rules.
(J)	The fully phased-in Basel III Supplementary Leverage Ratio is calculated by dividing fully phased-in Basel III Tier 1 Capital by Total Leverage Exposure (refer to Footnote E for a definition of Total Leverage Exposure).
(K)	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 cobrand portfolios in GNS, from which the Company earns no revenue, is not included.  Card billed business is reflected in the United States or outside the United States based on where the issuer is located.
(L)	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 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 cobrand Card Member accounts that have no out-of-store spend activity during the prior 12-month period.
(M)	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 divided by average worldwide proprietary cards-in-force.
(N)	This calculation is generally designed to reflect pricing at merchants accepting general-purpose American Express cards.  It represents the percentage of billed business (generated from both proprietary and GNS Card Member spending) retained by the Company from merchants it acquires, or for merchants acquired by a third party on its behalf, net of amounts retained by such third party.
(O)	Effective December 1, 2015, the Company reclassified the Card Member loans and receivables related to its cobrand partnerships with Costco in the U.S. and JetBlue, to reflect them as Held for Sale (HFS) on the Consolidated Balance Sheets.  The loans were reclassified at their net carrying amount, inclusive of the related reserves for losses.  Accordingly, Card Member loans and receivables and the related credit metrics are presented excluding the HFS loans and receivables for periods subsequent to the reclassification through the sale completion dates.
(P)	Provisions for principal, interest and/or fee reserve components.
(Q)	Consists of principal, interest and/or fees, less recoveries.
(R)	Card Member loans includes a reserve of $60 million related to loan balances of $245 million in Q2'16, reclassified from HFS to held for investment.  In addition, Other includes foreign currency translation adjustments and other items for all periods.
(S)	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.
(T)	GCP includes global, large and middle markets corporate accounts.
(U)	See Appendix III 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.
(V)	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 Q3'17 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.
(W)	Captions not designated as "proprietary" or "GNS" include both proprietary and GNS data.
(X)	Included in ICNS.
(Y)	Included in USCS.
(Z)	Included in GCS.
(AA)	Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.  Return on average segment capital is calculated by dividing one year period segment income by one year average segment capital.  Refer to Appendix II for components of return on average segment capital.
(AB)	GSBS includes small business in the U.S. and international small business services.
(AC)	Effective Q3'17, GSBS loans and associated metrics include small business in the U.S. and international small business services.  Prior to Q3'17, due to certain system limitations, international small business services loans and associated credit metrics were reported within the international consumer business, in the ICNS segment, which were insignificant to both ICNS and GCS.
(AD)	Adjusted net interest income, a non-GAAP measure that represents net interest income attributable to our Card Member loans and loans HFS (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. The Company believes adjusted net interest income is useful to investors because it is a component of net interest yield on Card Member loans.
(AE)	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.
(AF)	Net interest yield on Card Member loans, a non-GAAP measure that is computed by dividing adjusted net interest income by average loans, computed on an annualized basis.  Reserves and net write-offs related to uncollectible interest are recorded through provisions for losses and are thus not included in the net interest yield calculation. Effective January 1, 2016, net interest yield also includes an insignificant amount of net interest income and loans related to certain non-traditional Card Member loans.  The prior periods have been revised to conform with this presentation.  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.
(AG)	Operating expenses represent salaries and employee benefits, professional services, occupancy and equipment, communications, and other, net.
(AH)	Includes asset impairments and restructuring and other charges.

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