<Page>
EXHIBIT 99.2
All information in the following tables is presented on a basis prepared in
accordance with U.S. generally accepted accounting principles (GAAP), unless
otherwise indicated.
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
March 31,
------------------- Percentage
2005 2004 Inc/(Dec)
-------- -------- ----------
Revenues
Discount revenue $ 2,672 $ 2,368 12.9%
Net investment income 803 741 8.4
Management and distribution fees 798 779 2.5
Cardmember lending net finance charge revenue 592 541 9.3
Net card fees 498 472 5.6
Travel commissions and fees 422 417 1.2
Other commissions and fees 577 529 9.0
Insurance and annuity revenues 397 364 9.0
Securitization income, net 316 230 37.5
Other 498 469 6.1
-------- --------
Total revenues 7,573 6,910 9.6
-------- --------
Expenses
Human resources 1,993 1,779 12.0
Marketing, promotion, rewards
and cardmember services 1,358 1,047 29.7
Provision for losses and benefits 1,100 1,022 7.6
Interest 219 203 7.7
Other operating expenses 1,528 1,611 (5.1)
-------- --------
Total expenses 6,198 5,662 9.5
-------- --------
Pretax income before accounting change 1,375 1,248 10.1
Income tax provision 429 383 11.7
-------- --------
Income before accounting change 946 865 9.4
Cumulative effect of accounting change, net of tax - (71)(A) #
-------- --------
Net income $ 946 $ 794 19.2
======== ========
</Table>
# - Denotes a variance of more than 100%.
(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
related to the January 1, 2004 adoption of SOP 03-1.
-1-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Billions)
<Table>
<Caption>
March 31, December 31,
2005 2004
------------ ------------
Assets
Cash and cash equivalents $ 9 $ 10
Accounts receivable 34 35
Investments 60 61
Loans 34 35
Separate account assets 36 36
Other assets 17 16
------------ ------------
Total assets $ 190 $ 193
============ ============
Liabilities and Shareholders' Equity
Separate account liabilities $ 36 $ 36
Short-term debt 13 14
Long-term debt 31 33
Other liabilities 94 94
------------ ------------
Total liabilities 174 177
------------ ------------
Shareholders' Equity 16 16
------------ ------------
Total liabilities and shareholders' equity $ 190 $ 193
============ ============
</Table>
-2-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
REVENUES
Travel Related Services $ 5,582 $ 5,050 10.5%
American Express Financial Advisors 1,861 1,728 7.7
American Express Bank 207 210 (1.3)
---------- ----------
7,650 6,988 9.5
Corporate and other,
including adjustments and eliminations (77) (78) 0.6
---------- ----------
CONSOLIDATED REVENUES $ 7,573 $ 6,910 9.6
========== ==========
PRETAX INCOME (LOSS) BEFORE ACCOUNTING CHANGE
Travel Related Services $ 1,172 $ 973 20.4
American Express Financial Advisors 235 317 (25.9)
American Express Bank 46 48 (3.8)
---------- ----------
1,453 1,338 8.6
Corporate and other (78) (90) 13.1
---------- ----------
PRETAX INCOME BEFORE ACCOUNTING CHANGE $ 1,375 $ 1,248 10.1
========== ==========
NET INCOME (LOSS)
Travel Related Services $ 801 $ 665 20.5
American Express Financial Advisors 166 157(A) 5.3
American Express Bank 30 30 (0.8)
---------- ----------
997 852 16.9
Corporate and other (51) (58) 13.8
---------- ----------
NET INCOME $ 946 $ 794(A) 19.2
========== ==========
</Table>
(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
related to the January 1, 2004 adoption of SOP 03-1.
-3-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
(UNAUDITED)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
EARNINGS PER COMMON SHARE
BASIC
Income before accounting change $ 0.76 $ 0.68 11.8%
Net income $ 0.76 $ 0.62(A) 22.6%
========== ==========
Average common shares outstanding (millions) 1,239 1,277 (3.0)%
========== ==========
DILUTED
Income before accounting change $ 0.75 $ 0.66 13.6%
Net income $ 0.75 $ 0.61(A) 23.0%
========== ==========
Average common shares outstanding (millions) 1,264 1,305 (3.2)%
========== ==========
Cash dividends declared per common share $ 0.12 $ 0.10 20.0%
========== ==========
</Table>
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Return on average total shareholders' equity (B) 22.8% 20.7%
Common shares outstanding (millions) 1,245 1,281 (2.8)%
Book value per common share $ 12.95 $ 12.30 5.3%
Shareholders' equity (billions) $ 16.1 $ 15.7 2.6%
</Table>
(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax),
or $0.06 on a basic per share basis and $0.05 on a diluted per share
basis, related to the January 1, 2004 adoption of SOP 03-1.
(B) Computed on a trailing 12-month basis using total shareholders' equity as
included in the Consolidated Financial Statements prepared in accordance
with GAAP.
-4-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Revenues
Discount revenue $ 2,672 $ 2,817 $ 2,535 $ 2,529 $ 2,368
Net investment income 803 826 766 785 741
Management and distribution fees 798 788 732 724 779
Cardmember lending net finance charge
revenue 592 560 562 561 541
Net card fees 498 491 474 472 472
Travel commissions and fees 422 484 426 468 417
Other commissions and fees 577 616 574 565 529
Insurance and annuity revenues 397 394 389 378 364
Securitization income, net 316 325 295 282 230
Other 498 470 449 468 469
------------- ------------- ------------- ------------- -------------
Total revenues 7,573 7,771 7,202 7,232 6,910
------------- ------------- ------------- ------------- -------------
Expenses
Human resources 1,993 1,971 1,796 1,813 1,779
Marketing, promotion, rewards
and cardmember services 1,358 1,472 1,314 1,250 1,047
Provision for losses and benefits 1,100 1,162 1,054 1,080 1,022
Interest 219 238 216 210 203
Other operating expenses 1,528 1,745 1,568 1,613 1,611
------------- ------------- ------------- ------------- -------------
Total expenses 6,198 6,588 5,948 5,966 5,662
------------- ------------- ------------- ------------- -------------
Pretax income before accounting change 1,375 1,183 1,254 1,266 1,248
Income tax provision 429 287 375 390 383
------------- ------------- ------------- ------------- -------------
Income before accounting change 946 896 879 876 865
Cumulative effect of accounting change, net
of tax - - - - (71)(A)
------------- ------------- ------------- ------------- -------------
Net income $ 946 $ 896 $ 879 $ 876 $ 794
============= ============= ============= ============= =============
</Table>
(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
related to the January 1, 2004 adoption of SOP 03-1.
-5-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
REVENUES
Travel Related Services $ 5,582 $ 5,788 $ 5,362 $ 5,378 $ 5,050
American Express Financial Advisors 1,861 1,856 1,714 1,737 1,728
American Express Bank 207 207 205 203 210
------------- ------------- ------------- ------------- -------------
7,650 7,851 7,281 7,318 6,988
Corporate and other,
including adjustments and eliminations (77) (80) (79) (86) (78)
------------- ------------- ------------- ------------- -------------
CONSOLIDATED REVENUES $ 7,573 $ 7,771 $ 7,202 $ 7,232 $ 6,910
============= ============= ============= ============= =============
PRETAX INCOME (LOSS) BEFORE ACCOUNTING CHANGE
Travel Related Services $ 1,172 $ 1,018 $ 1,047 $ 1,079 $ 973
American Express Financial Advisors 235 248 257 264 317
American Express Bank 46 7 49 42 48
------------- ------------- ------------- ------------- -------------
1,453 1,273 1,353 1,385 1,338
Corporate and other (78) (90) (99) (119) (90)
------------- ------------- ------------- ------------- -------------
PRETAX INCOME BEFORE ACCOUNTING CHANGE $ 1,375 $ 1,183 $ 1,254 $ 1,266 $ 1,248
============= ============= ============= ============= =============
NET INCOME (LOSS)
Travel Related Services $ 801 $ 729 $ 726 $ 732 $ 665
American Express Financial Advisors 166 218 186 174 157(A)
American Express Bank 30 6 32 28 30
------------- ------------- ------------- ------------- -------------
997 953 944 934 852
Corporate and other (51) (57) (65) (58) (58)
------------- ------------- ------------- ------------- -------------
NET INCOME $ 946 $ 896 $ 879 $ 876 $ 794(A)
============= ============= ============= ============= =============
</Table>
(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
related to the January 1, 2004 adoption of SOP 03-1.
-6-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
(Unaudited)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
EARNINGS PER COMMON SHARE
BASIC
Income before accounting change $ 0.76 $ 0.72 $ 0.70 $ 0.69 $ 0.68
Net income $ 0.76 $ 0.72 $ 0.70 $ 0.69 $ 0.62(A)
============= ============= ============= ============= =============
Average common shares outstanding (millions) 1,239 1,242 1,251 1,263 1,277
============= ============= ============= ============= =============
DILUTED
Income before accounting change $ 0.75 $ 0.71 $ 0.69 $ 0.68 $ 0.66
Net income $ 0.75 $ 0.71 $ 0.69 $ 0.68 $ 0.61(A)
============= ============= ============= ============= =============
Average common shares outstanding (millions) 1,264 1,270 1,275 1,288 1,305
============= ============= ============= ============= =============
Cash dividends declared per common share $ 0.12 $ 0.12 $ 0.12 $ 0.10 $ 0.10
============= ============= ============= ============= =============
</Table>
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Return on average total shareholders' equity (B) 22.8% 22.0% 21.5% 21.2% 20.7%
Common shares outstanding (millions) 1,245 1,249 1,255 1,267 1,281
Book value per common share $ 12.95 $ 12.83 $ 12.62 $ 11.96 $ 12.30
Shareholders' equity (billions) $ 16.1 $ 16.0 $ 15.8 $ 15.2 $ 15.7
</Table>
(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax),
or $0.06 on a basic per share basis and $0.05 on a diluted per share
basis, related to the January 1, 2004 adoption of SOP 03-1.
(B) Computed on a trailing 12-month basis using total shareholders' equity as
included in the Consolidated Financial Statements prepared in accordance
with GAAP.
-7-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
STATEMENTS OF INCOME
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Net revenues:
Discount revenue $ 2,672 $ 2,368 12.9%
Lending:
Finance charge revenue 770 668 15.1
Interest expense 178 127 40.1
---------- ----------
Net finance charge revenue 592 541 9.3
Net card fees 498 472 5.6
Travel commissions and fees 422 417 1.2
Other commissions and fees 563 510 10.2
Travelers Cheque investment income 94 93 1.3
Securitization income, net 316 230 37.5
Other revenues 425 419 1.5
---------- ----------
Total net revenues 5,582 5,050 10.5
---------- ----------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,316 1,023 28.6
Provision for losses and claims:
Charge card 215 198 8.8
Lending 295 287 2.9
Other 35 29 17.2
---------- ----------
Total 545 514 6.0
Charge card interest expense 176 168 5.1
Human resources 1,143 1,065 7.3
Other operating expenses:
Professional services 482 469 2.7
Occupancy and equipment 323 308 4.8
Communications 115 121 (5.1)
Other 310 409 (23.9)
---------- ----------
Total 1,230 1,307 (5.9)
---------- ----------
Total expenses 4,410 4,077 8.2
---------- ----------
Pretax income 1,172 973 20.4
Income tax provision 371 308 20.3
---------- ----------
Net income $ 801 $ 665 20.5
========== ==========
</Table>
-8-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED FINANCIAL INFORMATION
(Unaudited)
Quarters Ended March 31,
(Millions)
<Table>
<Caption>
GAAP Basis Securitization Effect Managed Basis
---------------- Percentage ------------------------- ---------------- Percentage
2005 2004 Inc/(Dec) 2005 2004 2005 2004 Inc/(Dec)
------- ------- ---------- ---------- ----------- ------- ------- ----------
Net revenues:
Discount revenue $ 2,672 $ 2,368 12.9%
Lending:
Finance charge revenue 770 668 15.1 $ 609 $ 539 $ 1,379 $ 1,207 14.2%
Interest expense 178 127 40.1 140 83 318 210 51.2
------- ------- ---------- ----------- ------- -------
Net finance charge revenue 592 541 9.3 469 456 1,061 997 6.3
Net card fees 498 472 5.6
Travel commissions and fees 422 417 1.2
Other commissions and fees 563 510 10.2 53 53 616 563 9.2
Travelers Cheque investment income 94 93 1.3
Securitization income, net 316 230 37.5 (316) (230) - - -
Other revenues 425 419 1.5
------- ------- ---------- ----------- ------- -------
Total net revenues 5,582 5,050 10.5 206 279 5,788 5,329 8.6
------- ------- ---------- ----------- ------- -------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,316 1,023 28.6 (4) (4) 1,312 1,019 28.8
Provision for losses and claims:
Charge card 215 198 8.8
Lending 295 287 2.9 212 287 507 574 (11.8)
Other 35 29 17.2
------- ------- ---------- ----------- ------- -------
Total 545 514 6.0 212 287 757 801 (5.6)
Charge card interest expense 176 168 5.1
Human resources 1,143 1,065 7.3
Other operating expenses:
Professional services 482 469 2.7
Occupancy and equipment 323 308 4.8
Communications 115 121 (5.1)
Other 310 409 (23.9) (2) (4) 308 405 (23.9)
------- ------- ---------- ----------- ------- -------
Total 1,230 1,307 (5.9) (2) (4) 1,228 1,303 (5.8)
------- ------- ---------- ----------- ------- -------
Total expenses 4,410 4,077 8.2 $ 206 $ 279 $ 4,616 $ 4,356 6.0
------- ------- ---------- ----------- ------- -------
Pretax income 1,172 973 20.4
Income tax provision 371 308 20.3
------- -------
Net income $ 801 $ 665 20.5
======= =======
</Table>
Securitization income, net includes non-credit provision components of the net
gains and charges from securitization activities, related impairment charges,
if any, of the related interest-only strip, excess spread related to
securitized cardmember loans, net finance charge revenue on retained interests
in securitized cardmember loans and servicing income, net of related discounts
or fees. Management views any net gains from securitizations as discretionary
benefits to be used for card acquisition expenses, which are reflected in both
marketing, promotion, rewards and cardmember services expenses and other
operating expenses. Consequently, the managed Selected Financial Information
above for the quarters ended March 31, 2005 and 2004 assumes that the impact
of this net activity was offset by higher marketing, promotion, rewards and
cardmember services expenses of $4 million and $4 million, respectively, and
other operating expenses of $2 million and $4 million, respectively.
Accordingly, the incremental expenses, as well as the impact of this net
activity, have been eliminated.
-9-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED FINANCIAL INFORMATION
(Unaudited)
Quarters Ended
(Millions)
<Table>
<Caption>
GAAP Basis
---------------------------------------------
December 31, September 30, June 30,
2004 2004 2004
------------- ------------- -------------
Net revenues:
Discount revenue $ 2,817 $ 2,535 $ 2,529
Lending:
Finance charge revenue 716 714 697
Interest expense 156 152 136
------------- ------------- -------------
Net finance charge revenue 560 562 561
Net card fees 491 474 472
Travel commissions and fees 484 426 468
Other commissions and fees 606 563 551
Travelers Cheque investment income 94 96 95
Securitization income, net 325 295 282
Other revenues 411 411 420
------------- ------------- -------------
Total net revenues 5,788 5,362 5,378
------------- ------------- -------------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,416 1,280 1,225
Provision for losses and claims:
Charge card 240 206 189
Lending 296 233 314
Other 30 84 33
------------- ------------- -------------
Total 566 523 536
Charge card interest expense 196 174 175
Human resources 1,169 1,074 1,081
Other operating expenses:
Professional services 619 525 488
Occupancy and equipment 366 313 313
Communications 118 112 114
Other 320 314 367
------------- ------------- -------------
Total 1,423 1,264 1,282
------------- ------------- -------------
Total expenses 4,770 4,315 4,299
------------- ------------- -------------
Pretax income 1,018 1,047 1,079
Income tax provision 289 321 347
------------- ------------- -------------
Net income $ 729 $ 726 $ 732
============= ============= =============
<Caption>
Securitization Effect
---------------------------------------------
December 31, September 30, June 30,
2004 2004 2004
------------- ------------- -------------
Net revenues:
Discount revenue
Lending:
Finance charge revenue $ 621 $ 573 $ 489
Interest expense 132 108 61
------------- ------------- -------------
Net finance charge revenue 489 465 428
Net card fees
Travel commissions and fees
Other commissions and fees 54 53 50
Travelers Cheque investment income
Securitization income, net (325) (295) (282)
Other revenues
------------- ------------- -------------
Total net revenues 218 223 196
------------- ------------- -------------
Expenses:
Marketing, promotion, rewards
and cardmember services - (6) (6)
Provision for losses and claims:
Charge card
Lending 218 232 205
Other
------------- ------------- -------------
Total 218 232 205
Charge card interest expense
Human resources
Other operating expenses:
Professional services
Occupancy and equipment
Communications
Other - (3) (3)
------------- ------------- -------------
Total - (3) (3)
------------- ------------- -------------
Total expenses $ 218 $ 223 $ 196
------------- ------------- -------------
<Caption>
Managed Basis
---------------------------------------------
December 31, September 30, June 30,
2004 2004 2004
------------- ------------- -------------
Net revenues:
Discount revenue
Lending:
Finance charge revenue $ 1,337 $ 1,287 $ 1,186
Interest expense 288 260 197
------------- ------------- -------------
Net finance charge revenue 1,049 1,027 989
Net card fees
Travel commissions and fees
Other commissions and fees 660 616 601
Travelers Cheque investment income
Securitization income, net - - -
Other revenues
------------- ------------- -------------
Total net revenues 6,006 5,585 5,574
------------- ------------- -------------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,416 1,274 1,219
Provision for losses and claims:
Charge card
Lending 514 465 519
Other
------------- ------------- -------------
Total 784 755 741
Charge card interest expense
Human resources
Other operating expenses:
Professional services
Occupancy and equipment
Communications
Other 320 311 364
------------- ------------- -------------
Total 1,423 1,261 1,279
------------- ------------- -------------
Total expenses $ 4,988 $ 4,538 $ 4,495
------------- ------------- -------------
</Table>
Securitization income, net includes non-credit provision components of the net
gains and charges from securitization activities, related impairment charges,
if any, of the related interest-only strip, excess spread related to
securitized cardmember loans, net finance charge revenue on retained interests
in securitized cardmember loans and servicing income, net of related discounts
or fees. Management views any net gains from securitizations as discretionary
benefits to be used for card acquisition expenses, which are reflected in both
marketing, promotion, rewards and cardmember services expenses and other
operating expenses. Consequently, the managed Selected Financial Information
above for the quarters ended September 30, 2004 and June 30, 2004 assumes that
the impact of this net activity was offset by higher marketing, promotion,
rewards and cardmember services expenses of $6 million and $6 million,
respectively, and other operating expenses of $3 million and $3 million,
respectively. Accordingly, the incremental expenses, as well as the impact of
this net activity, have been eliminated.
-10-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED STATISTICAL INFORMATION
(Unaudited)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Total cards-in-force (millions) (A):
United States 40.3 37.0 8.7%
Outside the United States 25.8 24.6 5.1
---------- ----------
Total 66.1 61.6 7.3
========== ==========
Basic cards-in-force (millions) (A):
United States 30.6 28.1 8.7%
Outside the United States 21.3 20.4 4.6
---------- ----------
Total 51.9 48.5 7.0
========== ==========
Card billed business (A):
United States $ 79.6 $ 70.1 13.6%
Outside the United States 29.7 25.3 17.5
---------- ----------
Total $ 109.3 $ 95.4 14.6
========== ==========
Average discount rate 2.56% 2.59%
Average basic cardmember spending (dollars) (A) $ 2,412 $ 2,202 9.5%
Average fee per card - managed (dollars) (A) $ 35 $ 35 -
Travel sales $ 5.0 $ 4.8 5.4%
Travel commissions and fees/sales (B) 8.4% 8.7%
Travelers Cheque and prepaid products:
Sales $ 4.2 $ 4.4 (3.7)%
Average outstanding $ 7.1 $ 6.8 4.1%
Average investments $ 7.8 $ 7.3 6.8%
Investment yield 5.2% 5.4%
Tax equivalent yield 8.0% 8.3%
Total debt $ 43.1 $ 38.7 11.3%
Shareholder's equity $ 9.3 $ 8.1 14.1%
Return on average total shareholder's equity (C) 33.9% 31.7%
Return on average total assets (D) 3.6% 3.4%
</Table>
(A) Card billed business and cards-in-force include activities related to
proprietary cards and cards issued under network partnership agreements.
Average basic cardmember spending and average fee per card are computed
from proprietary card activities only.
(B) Computed from information provided herein.
(C) Computed on a trailing 12-month basis using total shareholder's equity as
included in the Consolidated Financial Statements prepared in accordance
with GAAP.
(D) Computed on a trailing 12-month basis using total assets as included in
the Consolidated Financial Statements prepared in accordance with GAAP.
-11-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED STATISTICAL INFORMATION (CONTINUED)
(Unaudited)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Worldwide cardmember receivables:
Total receivables $ 30.0 $ 27.9 7.7%
90 days past due as a % of total 1.9% 2.0%
Loss reserves (millions): $ 831 $ 896 (7.3)%
% of receivables 2.8% 3.2%
% of 90 days past due 147% 164%
Net loss ratio as a % of charge volume 0.23% 0.26%
Worldwide cardmember lending - owned basis:
Total loans $ 25.9 $ 24.5 5.6%
Past due loans as a % of total:
30-89 days 1.6% 1.7%
90+ days 1.0% 1.1%
Loss reserves (millions):
Beginning balance $ 972 $ 998 (2.6)%
Provision 266 257 3.4
Net write-offs (267) (264) (1.1)
Other (53) 3 #
---------- ----------
Ending balance $ 918 $ 994 (7.6)
========== ==========
% of loans 3.6% 4.1%
% of past due 134% 145%
Average loans $ 26.3 $ 25.1 5.1%
Net write-off rate 4.1% 4.2%
Net interest yield 8.6% 8.4%
Worldwide cardmember lending - managed basis:
Total loans $ 46.3 $ 44.8 3.5%
Past due loans as a % of total:
30-89 days 1.6% 1.7%
90+ days 1.0% 1.0%
Loss reserves (millions):
Beginning balance $ 1,475 $ 1,541 (4.3)%
Provision 471 545 (13.6)
Net write-offs (474) (519) 8.7
Other (53) 3 #
---------- ----------
Ending balance $ 1,419 $ 1,570 (9.6)
========== ==========
% of loans 3.1% 3.5%
% of past due 120% 128%
Average loans $ 46.4 $ 44.8 3.7%
Net write-off rate 4.1% 4.6%
Net interest yield 8.8% 8.7%
</Table>
# - Denotes a variance of more than 100%.
-12-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
STATEMENTS OF INCOME
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Net revenues:
Discount revenue $ 2,672 $ 2,817 $ 2,535 $ 2,529 $ 2,368
Lending:
Finance charge revenue 770 716 714 697 668
Interest expense 178 156 152 136 127
------------- ------------- ------------- ------------- -------------
Net finance charge revenue 592 560 562 561 541
Net card fees 498 491 474 472 472
Travel commissions and fees 422 484 426 468 417
Other commissions and fees 563 606 563 551 510
Travelers Cheque investment income 94 94 96 95 93
Securitization income, net 316 325 295 282 230
Other 425 411 411 420 419
------------- ------------- ------------- ------------- -------------
Total net revenues 5,582 5,788 5,362 5,378 5,050
------------- ------------- ------------- ------------- -------------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,316 1,416 1,280 1,225 1,023
Provision for losses and claims:
Charge card 215 240 206 189 198
Lending 295 296 233 314 287
Other 35 30 84 33 29
------------- ------------- ------------- ------------- -------------
Total 545 566 523 536 514
Charge card interest expense 176 196 174 175 168
Human resources 1,143 1,169 1,074 1,081 1,065
Other operating expenses:
Professional services 482 619 525 488 469
Occupancy and equipment 323 366 313 313 308
Communications 115 118 112 114 121
Other 310 320 314 367 409
------------- ------------- ------------- ------------- -------------
Total 1,230 1,423 1,264 1,282 1,307
------------- ------------- ------------- ------------- -------------
Total expenses 4,410 4,770 4,315 4,299 4,077
------------- ------------- ------------- ------------- -------------
Pretax income 1,172 1,018 1,047 1,079 973
Income tax provision 371 289 321 347 308
------------- ------------- ------------- ------------- -------------
Net income $ 801 $ 729 $ 726 $ 732 $ 665
============= ============= ============= ============= =============
</Table>
-13-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED MANAGED BASIS INFORMATION
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Lending finance charge revenue $ 1,379 $ 1,337 $ 1,287 $ 1,186 $ 1,207
Lending interest expense 318 288 260 197 210
Other commissions and fees 616 660 616 601 563
Marketing, promotion, rewards
and cardmember services 1,312 1,416 1,274 1,219 1,019
Lending provision 507 514 465 519 574
Other operating expenses 308 320 311 364 405
</Table>
Note: See prior page for comparable GAAP measures.
-14-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED STATISTICAL INFORMATION
(Unaudited)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Total cards-in-force (millions) (A):
United States 40.3 39.9 38.0 37.5 37.0
Outside the United States 25.8 25.5 25.3 25.0 24.6
------------- ------------- ------------- ------------- -------------
Total 66.1 65.4 63.3 62.5 61.6
============= ============= ============= ============= =============
Basic cards-in-force (millions) (A):
United States 30.6 30.3 28.9 28.5 28.1
Outside the United States 21.3 21.0 20.8 20.8 20.4
------------- ------------- ------------- ------------- -------------
Total 51.9 51.3 49.7 49.3 48.5
============= ============= ============= ============= =============
Card billed business (A):
United States $ 79.6 $ 83.4 $ 75.6 $ 75.7 $ 70.1
Outside the United States 29.7 32.1 27.2 26.7 25.3
------------- ------------- ------------- ------------- -------------
Total $ 109.3 $ 115.5 $ 102.8 $ 102.4 $ 95.4
============= ============= ============= ============= =============
Average discount rate 2.56% 2.54% 2.57% 2.56% 2.59%
Average basic cardmember spending
(dollars) (A) $ 2,412 $ 2,589 $ 2,330 $ 2,339 $ 2,202
Average fee per card - managed (dollars) (A) $ 35 $ 35 $ 34 $ 34 $ 35
Travel sales $ 5.0 $ 5.3 $ 4.6 $ 5.2 $ 4.8
Travel commissions and fees/sales (B) 8.4% 9.1% 9.2% 9.0% 8.7%
Travelers Cheque and prepaid products:
Sales $ 4.2 $ 4.9 $ 5.8 $ 4.8 $ 4.4
Average outstanding $ 7.1 $ 7.0 $ 7.1 $ 6.9 $ 6.8
Average investments $ 7.8 $ 7.6 $ 7.6 $ 7.3 $ 7.3
Investment yield 5.2% 5.4% 5.4% 5.5% 5.4%
Tax equivalent yield 8.0% 8.3% 8.3% 8.5% 8.3%
Total debt $ 43.1 $ 45.4 $ 39.1 $ 38.8 $ 38.7
Shareholder's equity $ 9.3 $ 8.8 $ 9.0 $ 8.6 $ 8.1
Return on average total shareholder's equity(C) 33.9% 33.4% 32.7% 32.1% 31.7%
Return on average total assets (D) 3.6% 3.5% 3.5% 3.4% 3.4%
</Table>
(A) Card billed business and cards-in-force include activities related to
proprietary cards and cards issued under network partnership agreements.
Average basic cardmember spending and average fee per card are computed
from proprietary card activities only.
(B) Computed from information provided herein.
(C) Computed on a trailing 12-month basis using total shareholder's equity as
included in the Consolidated Financial Statements prepared in accordance
with GAAP.
(D) Computed on a trailing 12-month basis using total assets as included in
the Consolidated Financial Statements prepared in accordance with GAAP.
-15-
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED STATISTICAL INFORMATION (CONTINUED)
(Unaudited)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Worldwide cardmember receivables:
Total receivables $ 30.0 $ 31.1 $ 28.6 $ 28.4 $ 27.9
90 days past due as a % of total 1.9% 1.8% 1.8% 1.9% 2.0%
Loss reserves (millions): $ 831 $ 806 $ 847 $ 864 $ 896
% of receivables 2.8% 2.6% 3.0% 3.0% 3.2%
% of 90 days past due 147% 146% 160% 163% 164%
Net loss ratio as a % of charge volume 0.23% 0.25% 0.26% 0.25% 0.26%
Worldwide cardmember lending - owned basis:
Total loans $ 25.9 $ 26.9 $ 25.2 $ 26.4 $ 24.5
Past due loans as a % of total:
30-89 days 1.6% 1.5% 1.6% 1.5% 1.7%
90+ days 1.0% 0.9% 0.9% 1.0% 1.1%
Loss reserves (millions):
Beginning balance $ 972 $ 1,008 $ 1,030 $ 994 $ 998
Provision 266 272 205 282 257
Net write-offs (267) (254) (255) (267) (264)
Other (53) (54) 28 21 3
------------- ------------- ------------- ------------- -------------
Ending balance $ 918 $ 972 $ 1,008 $ 1,030 $ 994
============= ============= ============= ============= =============
% of loans 3.6% 3.6% 4.0% 3.9% 4.1%
% of past due 134% 151% 159% 154% 145%
Average loans $ 26.3 $ 26.2 $ 26.2 $ 25.9 $ 25.1
Net write-off rate 4.1% 3.9% 3.9% 4.1% 4.2%
Net interest yield 8.6% 8.1% 8.1% 8.4% 8.4%
Worldwide cardmember lending - managed basis:
Total loans $ 46.3 $ 47.2 $ 45.6 $ 45.1 $ 44.8
Past due loans as a % of total:
30-89 days 1.6% 1.5% 1.6% 1.5% 1.7%
90+ days 1.0% 0.9% 0.9% 1.0% 1.0%
Loss reserves (millions):
Beginning balance $ 1,475 $ 1,537 $ 1,535 $ 1,570 $ 1,541
Provision 471 463 437 486 545
Net write-offs (474) (471) (463) (504) (519)
Other (53) (54) 28 (17) 3
------------- ------------- ------------- ------------- -------------
Ending balance $ 1,419 $ 1,475 $ 1,537 $ 1,535 $ 1,570
============= ============= ============= ============= =============
% of loans 3.1% 3.1% 3.4% 3.4% 3.5%
% of past due 120% 129% 132% 136% 128%
Average loans $ 46.4 $ 46.5 $ 45.3 $ 44.9 $ 44.8
Net write-off rate 4.1% 4.1% 4.1% 4.5% 4.6%
Net interest yield 8.8% 8.5% 8.6% 8.6% 8.7%
</Table>
-16-
<Page>
(Preliminary)
AMERICAN EXPRESS FINANCIAL ADVISORS
STATEMENTS OF INCOME
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Revenues:
Net investment income $ 622 $ 556 11.8%
Investment management and service fees 450 429 4.9
Distribution fees 351 352 (0.5)
Variable life insurance and variable annuity charges* 114 109 4.7
Life and health insurance premiums 89 86 3.3
Property-casualty insurance premiums 115 96 19.8
Other 120 100 22.0
---------- -----------
Total revenues 1,861 1,728 7.7
---------- -----------
Expenses:
Provision for losses and benefits:
Interest credited on annuities
and universal life-type contracts 273 283 (3.5)
Benefits on insurance and annuities 112 99 12.5
Interest credited on investment certificates 76 45 71.6
Losses and expenses on property-casualty insurance 88 74 18.8
---------- -----------
Total 549 501 9.7
Human resources - Field 376 348 8.0
Human resources - Non-field 272 221 22.3
Amortization of deferred acquisition costs 128 64 #
Other 301 277 9.3
---------- -----------
Total expenses 1,626 1,411 15.3
---------- -----------
Pretax income before accounting change 235 317 (25.9)
Income tax provision 69 89 (22.4)
---------- -----------
Income before accounting change 166 228 (27.3)
Cumulative effect of accounting change, net of tax - (71)(A) #
---------- -----------
Net income $ 166 $ 157 5.3
========== ===========
</Table>
* - Variable life insurance and variable annuity charges include variable
universal life and universal life insurance charges.
# - Denotes a variance of more than 100%.
(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
related to the January 1, 2004 adoption of SOP 03-1.
-17-
<Page>
(Preliminary)
AMERICAN EXPRESS FINANCIAL ADVISORS
SELECTED STATISTICAL INFORMATION
(Unaudited)
(Millions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ----------- ----------
Investments (billions) (A) $ 44.6 $ 43.4 2.6%
Client contract reserves (billions) $ 44.9 $ 41.6 8.0%
Shareholder's equity (billions) $ 6.2 $ 7.4 (16.9)%
Return on average total shareholder's equity
before accounting change (B) 11.2% 11.5%
Return on average total shareholder's equity (B) 11.2% 10.2%
Life insurance inforce (billions) $ 150.0 $ 135.0 11.1%
Assets owned, managed or
administered (billions):
Assets managed for institutions $ 134.4 $ 123.4 8.9%
Assets owned, managed or administered
for individuals:
Owned assets:
Separate account assets 36.0 32.4 11.0
Other owned assets 61.9 58.9 5.1
---------- -----------
Total owned assets 97.9 91.3 7.2
Managed assets 115.8 109.3 5.9
Administered assets 57.4 54.4 5.6
---------- -----------
Total $ 405.5 $ 378.4 7.2
========== ===========
Market appreciation (depreciation) and foreign
currency translation during the period:
Owned assets:
Separate account assets $ (573) $ 756 #
Other owned assets $ (778) $ 713 #
Managed assets $ (3,844) $ 5,453 #
Cash sales:
Mutual funds $ 9,830 $ 9,799 0.3%
Annuities 2,016 2,186 (7.8)
Investment certificates 2,226 1,324 68.2
Life and other insurance products 236 218 8.4
Institutional 1,758 1,415 24.3
Other 925 1,292 (28.4)
---------- -----------
Total cash sales $ 16,991 $ 16,234 4.7
========== ===========
Number of financial advisors 12,356 12,070 2.4%
Fees from financial plans and advice services $ 39.1 $ 33.2 17.6%
Percentage of total sales from financial plans
and advice services 76.6% 75.3%
</Table>
# - Denotes a variance of more than 100%.
(A) Excludes cash, derivatives, short-term and other investments.
(B) Computed on a trailing 12-month basis using total shareholder's equity as
included in the Consolidated Financial Statements prepared in accordance
with GAAP.
-18-
<Page>
(Preliminary)
AMERICAN EXPRESS FINANCIAL ADVISORS
STATEMENTS OF INCOME
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Revenues:
Net investment income $ 622 $ 635 $ 581 $ 603 $ 556
Investment management and service fees 450 463 429 411 429
Distribution fees 351 327 304 315 352
Variable life insurance and variable
annuity charges* 114 113 111 111 109
Life and health insurance premiums 89 91 91 88 86
Property-casualty insurance premiums 115 114 109 103 96
Other 120 113 89 106 100
------------- ------------- ------------- ------------- -------------
Total revenues 1,861 1,856 1,714 1,737 1,728
------------- ------------- ------------- ------------- -------------
Expenses:
Provision for losses and benefits:
Interest credited on annuities
and universal life-type contracts 273 286 279 280 283
Benefits on insurance and annuities 112 124 112 124 99
Interest credited on investment
certificates 76 86 45 48 45
Losses and expenses on property-casualty
insurance 88 89 84 80 74
------------- ------------- ------------- ------------- -------------
Total 549 585 520 532 501
Human resources - Field 376 339 312 333 348
Human resources - Non-field 272 253 235 210 221
Amortization of deferred acquisition costs 128 116 100 125 64
Other 301 315 290 273 277
------------- ------------- ------------- ------------- -------------
Total expenses 1,626 1,608 1,457 1,473 1,411
------------- ------------- ------------- ------------- -------------
Pretax income before accounting change 235 248 257 264 317
Income tax provision 69 30 71 90 89
------------- ------------- ------------- ------------- -------------
Income before accounting change 166 218 186 174 228
Cumulative effect of accounting change, net
of tax - - - - (71)(A)
------------- ------------- ------------- ------------- -------------
Net income $ 166 $ 218 $ 186 $ 174 $ 157
============= ============= ============= ============= =============
</Table>
* - Variable life insurance and variable annuity charges include variable
universal life and universal life insurance charges.
(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
related to the January 1, 2004 adoption of SOP 03-1.
-19-
<Page>
(Preliminary)
AMERICAN EXPRESS FINANCIAL ADVISORS
SELECTED STATISTICAL INFORMATION
(Unaudited)
(Millions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Investments (billions) (A) $ 44.6 $ 44.9 $ 43.1 $ 41.8 $ 43.4
Client contract reserves (billions) $ 44.9 $ 44.3 $ 42.9 $ 41.9 $ 41.6
Shareholder's equity (billions) $ 6.2 $ 6.4 $ 6.9 $ 6.3 $ 7.4
Return on average total shareholder's equity
before accounting change (B) 11.2% 11.8% 11.4% 11.7% 11.5%
Return on average total shareholder's
equity (B) 11.2% 10.8% 10.1% 10.5% 10.2%
Life insurance inforce (billions) $ 150.0 $ 145.8 $ 142.5 $ 139.1 $ 135.0
Assets owned, managed or
administered (billions):
Assets managed for institutions $ 134.4 $ 139.3 $ 127.4 $ 125.5 $ 123.4
Assets owned, managed or administered
for individuals:
Owned assets:
Separate account assets 36.0 35.9 32.4 32.9 32.4
Other owned assets 61.9 61.2 59.6 57.9 58.9
------------- ------------- ------------- ------------- -------------
Total owned assets 97.9 97.1 92.0 90.8 91.3
Managed assets 115.8 117.5 108.6 108.8 109.3
Administered assets 57.4 58.8 55.3 55.3 54.4
------------- ------------- ------------- ------------- -------------
Total $ 405.5 $ 412.7 $ 383.3 $ 380.4 $ 378.4
============= ============= ============= ============= =============
Market appreciation (depreciation) and
foreign currency translation during the
period:
Owned assets:
Separate account assets $ (573) $ 2,920 $ (377) $ (101) $ 756
Other owned assets $ (778) $ 56 $ 752 $ (1,476) $ 713
Managed assets $ (3,844) $ 17,956 $ (194) $ 232 $ 5,453
Cash sales:
Mutual funds $ 9,830 $ 8,680 $ 8,066 $ 8,480 $ 9,799
Annuities 2,016 1,835 1,887 1,912 2,186
Investment certificates 2,226 2,586 1,786 1,445 1,324
Life and other insurance products 236 229 239 221 218
Institutional 1,758 1,763 1,664 2,841 1,415
Other 925 1,078 991 1,116 1,292
------------- ------------- ------------- ------------- -------------
Total cash sales $ 16,991 $ 16,171 $ 14,633 $ 16,015 $ 16,234
============= ============= ============= ============= =============
Number of financial advisors 12,356 12,344 12,071 11,943 12,070
Fees from financial plans and advice services $ 39.1 $ 38.2 $ 28.1 $ 39.3 $ 33.2
Percentage of total sales from financial
plans and advice services 76.6% 75.9% 75.4% 74.6% 75.3%
</Table>
(A) Excludes cash, derivatives, short-term and other investments.
(B) Computed on a trailing 12-month basis using total shareholder's equity as
included in the Consolidated Financial Statements prepared in accordance
with GAAP.
-20-
<Page>
(Preliminary)
AMERICAN EXPRESS BANK
STATEMENTS OF INCOME
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Net revenues:
Interest income $ 148 $ 134 10.3%
Interest expense 74 53 40.2
---------- ----------
Net interest income 74 81 (9.2)
Commissions and fees 73 70 4.8
Foreign exchange income and other revenues 60 59 2.5
---------- ----------
Total net revenues 207 210 (1.3)
---------- ----------
Expenses:
Human resources 81 75 7.6
Other operating expenses 75 72 4.5
Provision for losses 5 6 (19.1)
Restructuring charges - 9 #
---------- ----------
Total expenses 161 162 (0.5)
---------- ----------
Pretax income 46 48 (3.8)
Income tax provision 16 18 (8.8)
---------- ----------
Net income $ 30 $ 30 (0.8)
========== ==========
</Table>
# - Denotes a variance of more than 100%.
-21-
<Page>
(Preliminary)
AMERICAN EXPRESS BANK
SELECTED STATISTICAL INFORMATION
(Unaudited)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
March 31,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Total shareholder's equity (millions) $ 905 $ 992 (8.8)%
Return on average total shareholder's equity (A) 10.0% 11.9%
Return on average total assets (B) 0.71% 0.81%
Total loans $ 7.0 $ 6.4 9.2 %
Non-Consumer Financial Services (CFS) loans:
Total Non-CFS loans (C) $ 5.6 $ 5.1 10.9%
Non-CFS loan loss reserves (millions):
Beginning balance $ 58 $ 59 (0.8)%
Provision - - -
Net charge-offs (3) 2 #
Other (7) - #
---------- ----------
Ending balance $ 48 $ 61 (20.0)
========== ==========
% of Non-CFS loans 0.9% 1.2%
Total non-performing loans (millions) $ 28 $ 69 (59.3)%
CFS loans:
Total CFS Loans (D) $ 1.4 $ 1.3 2.9%
Past due as a % of total CFS loans:
30-89 days past due 3.6% 4.6%
90+ days past due 0.7% 0.9%
CFS loan loss reserves (millions):
Beginning balance $ 37 $ 54 (31.3)%
Provision 6 7 (11.4)
Net charge-offs (11) (16) (35.4)
Other 3 - #
---------- ----------
Ending balance $ 35 $ 45 (21.9)
========== ==========
% of CFS loans 2.6% 3.4%
% of 30 days past due CFS loans 59% 62%
Net write-off rate 3.0% 4.9%
Deposits $ 10.7 $ 10.7 (0.4)%
Assets owned, managed (E) / administered:
Owned $ 13.4 $ 13.8 (2.9)
Managed (E) / administered 19.5 16.8 16.1
---------- ----------
Total $ 32.9 $ 30.6 7.5
========== ==========
Assets of non-consolidated joint ventures (F) $ 1.8 $ 1.8 5.1%
Risk-based capital ratios (G):
Tier 1 11.0% 11.7%
Total 10.7% 11.5%
Leverage ratio 5.8% 5.7%
</Table>
# - Denotes a variance of more than 100%.
(A) Computed on a trailing 12-month basis using total shareholder's equity as
included in the Consolidated Financial Statements prepared in accordance
with GAAP.
(B) Computed on a trailing 12-month basis using total assets as included in
the Consolidated Financial Statements prepared in accordance with GAAP.
(C) Loans other than certain smaller-balance consumer loans (including loans
impaired under Statement of Financial Accounting Standards No. 114,
"Accounting by Creditors for Impairment of a Loan"), are placed on
non-performing status when payments of principal or interest are 90 days
past due or if, in management's opinion, the borrower is unlikely to meet
its contractual obligations. When loans are placed on non-performing
status, all previously accrued but unpaid interest is reversed against
current interest income. Cash receipts of interest on non-performing
loans are recognized either as interest income or as a reduction of
principal, based on management's judgment as to the ultimate
collectibility of principal. Generally, a non-performing loan may be
returned to performing status when all contractual amounts due are
reasonably assured of repayment within a reasonable period and the
borrower shows sustained repayment performance, in accordance with the
contractual terms of the loan or when the loan has become well-secured
and is in the process of collection.
(D) For smaller-balance consumer loans included in CFS loans, management
establishes reserves it believes to be adequate to absorb credit losses
inherent in the portfolio. Generally, these loans are written off in full
when an impairment is determined or when the loan becomes 120 or 180 days
past due, depending on loan type.
(E) Includes assets managed by American Express Financial Advisors.
(F) Excludes American Express International Deposit Company's total assets
(which are 100% consolidated at AEFA) for each period presented (and
which totaled $6.0 billion at March 31, 2005).
(G) Based on legal entity financial information.
-22-
<Page>
(Preliminary)
AMERICAN EXPRESS BANK
STATEMENTS OF INCOME
(Unaudited)
(Millions)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Net revenues:
Interest income $ 148 $ 145 $ 132 $ 131 $ 134
Interest expense 74 67 56 51 53
------------- ------------- ------------- ------------- -------------
Net interest income 74 78 76 80 81
Commissions and fees 73 74 69 70 70
Foreign exchange income and other revenues 60 55 60 53 59
------------- ------------- ------------- ------------- -------------
Total net revenues 207 207 205 203 210
------------- ------------- ------------- ------------- -------------
Expenses:
Human resources 81 81 71 71 75
Other operating expenses 75 76 74 78 72
Provision for losses 5 8 11 12 6
Restructuring charges - 35 - - 9
------------- ------------- ------------- ------------- -------------
Total expenses 161 200 156 161 162
------------- ------------- ------------- ------------- -------------
Pretax income 46 7 49 42 48
Income tax provision 16 1 17 14 18
------------- ------------- ------------- ------------- -------------
Net income $ 30 $ 6 $ 32 $ 28 $ 30
============= ============= ============= ============= =============
</Table>
-23-
<Page>
(Preliminary)
AMERICAN EXPRESS BANK
SELECTED STATISTICAL INFORMATION
(Unaudited)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Total shareholder's equity (millions) $ 905 $ 924 $ 931 $ 953 $ 992
Return on average total shareholder's
equity (A) 10.0% 10.0% 12.4% 11.9% 11.9%
Return on average total assets (B) 0.71% 0.70% 0.85% 0.81% 0.81%
Total loans $ 7.0 $ 6.9 $ 6.4 $ 6.5 $ 6.4
Non-Consumer Financial Services (CFS) loans:
Total Non-CFS loans (C) $ 5.6 $ 5.5 $ 5.1 $ 5.2 $ 5.1
Non-CFS loan loss reserves (millions):
Beginning balance $ 58 $ 57 $ 62 $ 61 $ 59
Provision - 1 2 2 -
Net charge-offs (3) - (6) (5) 2
Other (7) - (1) 4 -
------------- ------------- ------------- ------------- -------------
Ending balance $ 48 $ 58 $ 57 $ 62 $ 61
============= ============= ============= ============= =============
% of Non-CFS loans 0.9% 1.0% 1.1% 1.2% 1.2%
Total non-performing loans (millions) $ 28 $ 37 $ 32 $ 50 $ 69
CFS loans:
Total CFS Loans (D) $ 1.4 $ 1.4 $ 1.3 $ 1.3 $ 1.3
Past due as a % of total CFS loans:
30-89 days past due 3.6% 3.8% 4.3% 4.6% 4.6%
90+ days past due 0.7% 0.7% 0.8% 0.9% 0.9%
CFS loan loss reserves (millions):
Beginning balance $ 37 $ 39 $ 41 $ 45 $ 54
Provision 6 7 9 10 7
Net charge-offs (11) (10) (11) (13) (16)
Other 3 1 - (1) -
------------- ------------- ------------- ------------- -------------
Ending balance $ 35 $ 37 $ 39 $ 41 $ 45
============= ============= ============= ============= =============
% of CFS loans 2.6% 2.7% 2.9% 3.1% 3.4%
% of 30 days past due CFS loans 59% 61% 57% 57% 62%
Net write-off rate 3.0% 3.0% 3.6% 4.0% 4.9%
Deposits $ 10.7 $ 10.4 $ 10.5 $ 11.2 $ 10.7
Assets owned, managed (E) / administered:
Owned $ 13.4 $ 13.4 $ 13.4 $ 14.1 $ 13.8
Managed (E) / administered 19.5 19.2 17.6 16.9 16.8
------------- ------------- ------------- ------------- -------------
Total $ 32.9 $ 32.6 $ 31.0 $ 31.0 $ 30.6
============= ============= ============= ============= =============
Assets of non-consolidated joint ventures (F) $ 1.8 $ 1.8 $ 1.7 $ 1.7 $ 1.8
Risk-based capital ratios (G):
Tier 1 11.0% 11.0% 10.8% 12.0% 11.7%
Total 10.7% 10.1% 10.6% 11.8% 11.5%
Leverage ratio 5.8% 5.8% 5.7% 5.9% 5.7%
</Table>
(A) Computed on a trailing 12-month basis using total shareholder's equity as
included in the Consolidated Financial Statements prepared in accordance
with GAAP.
(B) Computed on a trailing 12-month basis using total assets as included in
the Consolidated Financial Statements prepared in accordance with GAAP.
(C) Loans other than certain smaller-balance consumer loans (including loans
impaired under Statement of Financial Accounting Standards No. 114,
"Accounting by Creditors for Impairment of a Loan"), are placed on
non-performing status when payments of principal or interest are 90 days
past due or if, in management's opinion, the borrower is unlikely to meet
its contractual obligations. When loans are placed on non-performing
status, all previously accrued but unpaid interest is reversed against
current interest income. Cash receipts of interest on non-performing
loans are recognized either as interest income or as a reduction of
principal, based on management's judgment as to the ultimate
collectibility of principal. Generally, a non-performing loan may be
returned to performing status when all contractual amounts due are
reasonably assured of repayment within a reasonable period and the
borrower shows sustained repayment performance, in accordance with the
contractual terms of the loan or when the loan has become well-secured
and is in the process of collection.
(D) For smaller-balance consumer loans included in CFS loans, management
establishes reserves it believes to be adequate to absorb credit losses
inherent in the portfolio. Generally, these loans are written off in full
when an impairment is determined or when the loan becomes 120 or 180 days
past due, depending on loan type.
(E) Includes assets managed by American Express Financial Advisors.
(F) Excludes American Express International Deposit Company's total assets
(which are 100% consolidated at AEFA) for each period presented (and
which totaled $6.0 billion at March 31, 2005).
(G) Based on legal entity financial information.
-24-