American Express Credit 10-Q 2011 Q2 Quarterly report

EXHIBIT 12.2

AMERICAN EXPRESS COMPANY
COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)

	Six Months
	Ended		Years Ended December 31,
	June 30, 2011		2010		2009		2008		2007
Earnings:
Pretax income from continuing operations	$	3,497	$	5,964	$	2,841	$	3,581	$	5,694
Interest expense		1,170		2,423		2,208		3,628		4,525
Other adjustments		67		126		129		144		143
Total earnings (a)	$	4,734	$	8,513	$	5,178	$	7,353	$	10,362
Fixed charges:
Interest expense	$	1,170	$	2,423	$	2,208	$	3,628	$	4,525
Other adjustments		40		85		121		114		106
Total fixed charges (b)	$	1,210	$	2,508	$	2,329	$	3,742	$	4,631
Ratio of earnings to fixed charges (a/b)		3.91		3.39		2.22		1.96		2.24

Included in interest expense in the above computation is interest expense related to the cardmember lending activities, international banking operations and charge card and other activities in the Consolidated Statements of Income. Interest expense does not include interest on liabilities recorded under GAAP governing accounting for uncertainty in income taxes. American Express’ policy is to classify such interest in income tax provision in the Consolidated Statements of Income.

For purposes of the “earnings” computation, “other adjustments” include adding the amortization of capitalized interest, the net loss of affiliates accounted for under the equity method whose debt is not guaranteed by American Express, the non controlling interest in the earnings of majority-owned subsidiaries with fixed charges, and the interest component of rental expense, and subtracting undistributed net income of affiliates accounted for under the equity method.

For purposes of the “fixed charges” computation, “other adjustments” include capitalized interest costs and the interest component of rental expense.