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
(Millions)
<Table>
<Caption>
Quarters Ended Six Months Ended
June 30, June 30,
--------------------- Percentage --------------------- Percentage
2005 2004 Inc/(Dec) 2005 2004 Inc/(Dec)
--------- --------- ---------- --------- --------- ----------
Revenues
Discount revenue $ 2,941 $ 2,529 16.3% $ 5,613 $ 4,897 14.6%
Net investment income 822 785 4.7 1,625 1,526 6.5
Management and distribution fees 814 724 12.3 1,612 1,503 7.2
Cardmember lending net finance charge revenue 637 561 13.7 1,229 1,102 11.5
Net card fees 506 472 7.0 1,004 944 6.3
Travel commissions and fees 502 468 7.1 924 885 4.3
Other commissions and fees 611 565 8.2 1,188 1,094 8.6
Insurance and annuity revenues 403 378 6.8 800 742 7.9
Securitization income, net 296 282 4.8 612 512 19.4
Other 470 468 0.7 968 937 3.4
--------- --------- --------- ---------
Total revenues 8,002 7,232 10.6 15,575 14,142 10.1
--------- --------- --------- ---------
Expenses
Human resources 2,092 1,813 15.4 4,085 3,592 13.7
Marketing, promotion, rewards
and cardmember services 1,471 1,250 17.7 2,829 2,297 23.2
Provision for losses and benefits 1,177 1,080 9.1 2,277 2,102 8.4
Interest 251 210 19.7 470 413 13.8
Other operating expenses 1,692 1,613 4.7 3,220 3,224 (0.1)
--------- --------- --------- ---------
Total expenses 6,683 5,966 12.0 12,881 11,628 10.8
--------- --------- --------- ---------
Pretax income before accounting change 1,319 1,266 4.2 2,694 2,514 7.1
Income tax provision 306 390 (21.6) 735 773 (5.1)
--------- --------- --------- ---------
Income before accounting change 1,013 876 15.7 1,959 1,741 12.6
Cumulative effect of accounting change, net of tax - - - - (71)(A) -
--------- --------- --------- ---------
Net income $ 1,013 $ 876 15.7 $ 1,959 $ 1,670 17.3
========= ========= ========= =========
</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.
-1-
<Page>
(Preliminary)
American Express Company
Condensed Consolidated Balance Sheets
(Billions)
<Table>
<Caption>
June 30, December 31,
2005 2004
--------- ------------
Assets
Cash and cash equivalents $ 9 $ 10
Accounts receivable 35 35
Investments 61 61
Loans 37 35
Separate account assets 37 36
Other assets 17 16
--------- ------------
Total assets $ 196 $ 193
========= ============
Liabilities and Shareholders' Equity
Separate account liabilities $ 37 $ 36
Short-term debt 13 14
Long-term debt 30 33
Other liabilities 99 94
--------- ------------
Total liabilities 179 177
--------- ------------
Shareholders' Equity 17 16
--------- ------------
Total liabilities and shareholders' equity $ 196 $ 193
========= ============
</Table>
-2-
<Page>
(Preliminary)
American Express Company
Financial Summary
(Millions)
<Table>
<Caption>
Quarters Ended Six Months Ended
June 30, June 30,
--------------------- Percentage --------------------- Percentage
2005 2004 Inc/(Dec) 2005 2004 Inc/(Dec)
--------- --------- ---------- --------- --------- ----------
Revenues
Travel Related Services $ 5,974 $ 5,378 11.1% $ 11,556 $ 10,428 10.8%
American Express Financial Advisors 1,908 1,737 9.8 3,769 3,465 8.8
American Express Bank 208 203 2.1 415 413 0.4
--------- --------- --------- ---------
8,090 7,318 10.5 15,740 14,306 10.0
Corporate and other,
including adjustments and eliminations (88) (86) (1.4) (165) (164) (0.5)
--------- --------- --------- ---------
CONSOLIDATED REVENUES $ 8,002 $ 7,232 10.6 $ 15,575 $ 14,142 10.1
========= ========= ========= =========
Pretax Income (Loss) Before Accounting Change
Travel Related Services $ 1,168 $ 1,079 8.2 $ 2,340 $ 2,052 14.0
American Express Financial Advisors 177 264 (32.8) 412 581 (29.0)
American Express Bank 45 42 6.9 91 90 1.3
--------- --------- --------- ---------
1,390 1,385 0.4 2,843 2,723 4.4
Corporate and other (71) (119) 39.8 (149) (209) 28.4
--------- --------- --------- ---------
PRETAX INCOME BEFORE ACCOUNTING CHANGE $ 1,319 $ 1,266 4.2 $ 2,694 $ 2,514 7.1
========= ========= ========= =========
Net Income (Loss)
Travel Related Services $ 808 $ 732 10.4 $ 1,609 $ 1,397 15.2
American Express Financial Advisors 140 174 (19.4) 306 331(A) (7.6)
American Express Bank 61 28 # 91 58 57.9
--------- --------- --------- ---------
1,009 934 8.1 2,006 1,786 12.3
Corporate and other 4 (58) # (47) (116) 59.6
--------- --------- --------- ---------
NET INCOME $ 1,013 $ 876 15.7 $ 1,959 $ 1,670(A) 17.3
========= ========= ========= =========
</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.
-3-
<Page>
(Preliminary)
American Express Company
Financial Summary (continued)
<Table>
<Caption>
Quarters Ended Six Months Ended
June 30, June 30,
----------------------- Percentage ----------------------- Percentage
2005 2004 Inc/(Dec) 2005 2004 Inc/(Dec)
---------- ---------- ---------- ---------- ---------- ----------
EARNINGS PER COMMON SHARE
BASIC
Income before accounting change $ 0.82 $ 0.69 18.8% $ 1.59 $ 1.37 16.1%
Net income $ 0.82 $ 0.69 18.8% $ 1.59 $ 1.31(A) 21.4%
========== ========== ========== ==========
Average common shares outstanding (millions) 1,231 1,263 (2.5)% 1,235 1,270 (2.8)%
========== ========== ========== ==========
DILUTED
Income before accounting change $ 0.81 $ 0.68 19.1% $ 1.56 $ 1.34 16.4%
Net income $ 0.81 $ 0.68 19.1% $ 1.56 $ 1.29(A) 20.9%
========== ========== ========== ==========
Average common shares outstanding (millions) 1,254 1,288 (2.6)% 1,259 1,296 (2.9)%
========== ========== ========== ==========
Cash dividends declared per common share $ 0.12 $ 0.10 20.0% $ 0.24 $ 0.20 20.0%
========== ========== ========== ==========
</Table>
Selected Statistical Information
<Table>
<Caption>
Quarters Ended Six Months Ended
June 30, June 30,
----------------------- Percentage ----------------------- Percentage
2005 2004 Inc/(Dec) 2005 2004 Inc/(Dec)
---------- ---------- ---------- ---------- ---------- ----------
Return on average total shareholders' equity (B) 23.1% 21.2% - 23.1% 21.2% -
Common shares outstanding (millions) 1,240 1,267 (2.1)% 1,240 1,267 (2.1)%
Book value per common share $ 13.84 $ 11.96 15.7% $ 13.84 $ 11.96 15.7%
Shareholders' equity (billions) $ 17.2 $ 15.2 13.2% $ 17.2 $ 15.2 13.2%
</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
(Millions)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Revenues
Discount revenue $ 2,941 $ 2,672 $ 2,817 $ 2,535 $ 2,529
Net investment income 822 803 826 766 785
Management and distribution fees 814 798 788 732 724
Cardmember lending net finance charge revenue 637 592 560 562 561
Net card fees 506 498 491 474 472
Travel commissions and fees 502 422 484 426 468
Other commissions and fees 611 577 616 574 565
Insurance and annuity revenues 403 397 394 389 378
Securitization income, net 296 316 325 295 282
Other 470 498 470 449 468
------------- ------------- ------------- ------------- -------------
Total revenues 8,002 7,573 7,771 7,202 7,232
------------- ------------- ------------- ------------- -------------
Expenses
Human resources 2,092 1,993 1,971 1,796 1,813
Marketing, promotion, rewards
and cardmember services 1,471 1,358 1,472 1,314 1,250
Provision for losses and benefits 1,177 1,100 1,162 1,054 1,080
Interest 251 219 238 216 210
Other operating expenses 1,692 1,528 1,745 1,568 1,613
------------- ------------- ------------- ------------- -------------
Total expenses 6,683 6,198 6,588 5,948 5,966
------------- ------------- ------------- ------------- -------------
Pretax income 1,319 1,375 1,183 1,254 1,266
Income tax provision 306 429 287 375 390
------------- ------------- ------------- ------------- -------------
Net income $ 1,013 $ 946 $ 896 $ 879 $ 876
============= ============= ============= ============= =============
</Table>
-5-
<Page>
(Preliminary)
American Express Company
Financial Summary
(Millions)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Revenues
Travel Related Services $ 5,974 $ 5,582 $ 5,788 $ 5,362 $ 5,378
American Express Financial Advisors 1,908 1,861 1,856 1,714 1,737
American Express Bank 208 207 207 205 203
------------- ------------- ------------- ------------- -------------
8,090 7,650 7,851 7,281 7,318
Corporate and other,
including adjustments and eliminations (88) (77) (80) (79) (86)
------------- ------------- ------------- ------------- -------------
CONSOLIDATED REVENUES $ 8,002 $ 7,573 $ 7,771 $ 7,202 $ 7,232
============= ============= ============= ============= =============
Pretax Income (Loss)
Travel Related Services $ 1,168 $ 1,172 $ 1,018 $ 1,047 $ 1,079
American Express Financial Advisors 177 235 248 257 264
American Express Bank 45 46 7 49 42
------------- ------------- ------------- ------------- -------------
1,390 1,453 1,273 1,353 1,385
Corporate and other (71) (78) (90) (99) (119)
------------- ------------- ------------- ------------- -------------
PRETAX INCOME $ 1,319 $ 1,375 $ 1,183 $ 1,254 $ 1,266
============= ============= ============= ============= =============
Net Income (Loss)
Travel Related Services $ 808 $ 801 $ 729 $ 726 $ 732
American Express Financial Advisors 140 166 218 186 174
American Express Bank 61 30 6 32 28
------------- ------------- ------------- ------------- -------------
1,009 997 953 944 934
Corporate and other 4 (51) (57) (65) (58)
------------- ------------- ------------- ------------- -------------
NET INCOME $ 1,013 $ 946 $ 896 $ 879 $ 876
============= ============= ============= ============= =============
</Table>
-6-
<Page>
(Preliminary)
American Express Company
Financial Summary (continued)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------- ------------- ------------- ------------- -------------
EARNINGS PER COMMON SHARE
BASIC
Net income $ 0.82 $ 0.76 $ 0.72 $ 0.70 $ 0.69
============= ============= ============= ============= =============
Average common shares outstanding (millions) 1,231 1,239 1,242 1,251 1,263
============= ============= ============= ============= =============
DILUTED
Net income $ 0.81 $ 0.75 $ 0.71 $ 0.69 $ 0.68
============= ============= ============= ============= =============
Average common shares outstanding (millions) 1,254 1,264 1,270 1,275 1,288
============= ============= ============= ============= =============
Cash dividends declared per common share $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.10
============= ============= ============= ============= =============
</Table>
Selected Statistical Information
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------- ------------- ------------- ------------- -------------
Return on average total shareholders' equity (A) 23.1% 22.8% 22.0% 21.5% 21.2%
Common shares outstanding (millions) 1,240 1,245 1,249 1,255 1,267
Book value per common share $ 13.84 $ 12.95 $ 12.83 $ 12.62 $ 11.96
Shareholders' equity (billions) $ 17.2 $ 16.1 $ 16.0 $ 15.8 $ 15.2
</Table>
(A) 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
(Millions)
<Table>
<Caption>
Quarters Ended
June 30,
--------------------------- Percentage
2005 2004 Inc/(Dec)
------------ ------------ ------------
Net revenues:
Discount revenue $ 2,941 $ 2,529 16.3%
Lending:
Finance charge revenue 839 697 20.5
Interest expense 202 136 48.7
------------ ------------
Net finance charge revenue 637 561 13.7
Net card fees 506 472 7.0
Travel commissions and fees 502 468 7.1
Other commissions and fees 602 551 9.3
Travelers Cheque investment income 94 95 (1.1)
Securitization income, net 296 282 4.8
Other revenues 396 420 (5.3)
------------ ------------
Total net revenues 5,974 5,378 11.1
------------ ------------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,440 1,225 17.6
Provision for losses and claims:
Charge card 234 189 23.4
Lending 275 314 (12.4)
Other 72 33 #
------------ ------------
Total 581 536 8.4
Charge card interest expense 211 175 19.9
Human resources 1,224 1,081 13.1
Other operating expenses:
Professional services 538 488 10.3
Occupancy and equipment 342 313 9.3
Communications 110 114 (3.5)
Other 360 367 (1.7)
------------ ------------
Total 1,350 1,282 5.4
------------ ------------
Total expenses 4,806 4,299 11.8
------------ ------------
Pretax income 1,168 1,079 8.2
Income tax provision 360 347 3.8
------------ ------------
Net income $ 808 $ 732 10.4
============ ============
</Table>
# - Denotes a variance of more than 100%.
-8-
<Page>
(Preliminary)
Travel Related Services
Selected Financial Information
Quarters Ended June 30,
(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 $ 2,941 $ 2,529 16.3%
Lending:
Finance charge revenue 839 697 20.5 $ 618 $ 489 $ 1,457 $ 1,186 23.0%
Interest expense 202 136 48.7 164 61 366 197 86.7
------- ------- --------- --------- ------- -------
Net finance charge revenue 637 561 13.7 454 428 1,091 989 10.4
Net card fees 506 472 7.0
Travel commissions and fees 502 468 7.1
Other commissions and fees 602 551 9.3 51 50 653 601 8.7
Travelers Cheque investment income 94 95 (1.1)
Securitization income, net 296 282 4.8 (296) (282) - - -
Other revenues 396 420 (5.3)
------- ------- --------- --------- ------- -------
Total net revenues 5,974 5,378 11.1 209 196 6,183 5,574 10.9
------- ------- --------- --------- ------- -------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,440 1,225 17.6 (1) (6) 1,439 1,219 18.0
Provision for losses and claims:
Charge card 234 189 23.4
Lending 275 314 (12.4) 210 205 485 519 (6.3)
Other 72 33 #
------- ------- --------- --------- ------- -------
Total 581 536 8.4 210 205 791 741 7.0
Charge card interest expense 211 175 19.9
Human resources 1,224 1,081 13.1
Other operating expenses:
Professional services 538 488 10.3
Occupancy and equipment 342 313 9.3
Communications 110 114 (3.5)
Other 360 367 (1.7) - (3) 360 364 (0.9)
------- ------- --------- --------- ------- -------
Total 1,350 1,282 5.4 - (3) 1,350 1,279 5.7
------- ------- --------- --------- ------- -------
Total expenses 4,806 4,299 11.8 $ 209 $ 196 $ 5,015 $ 4,495 11.6
------- ------- --------- --------- ------- -------
Pretax income 1,168 1,079 8.2
Income tax provision 360 347 3.8
------- -------
Net income $ 808 $ 732 10.4
======= =======
</Table>
# - Denotes a variance of more than 100%.
Securitization income, net represents the non-credit provision components of
the net gains and charges from securitization activities, the amortization and
related impairment charges, if any, of the related interest-only strip, excess
spread related to securitized loans, net finance charge revenue on retained
interests in securitized 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 June 30, 2005 and 2004 assumes that gains from
new issuances and charges from the amortization and maturities of outstanding
lending securitization transactions of $1 million and $9 million,
respectively, are offset by higher marketing, promotion, rewards and
cardmember services expenses of $1 million and $6 million, respectively, and
other operating expenses of nil and $3 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
Quarters Ended
(Millions)
<Table>
<Caption>
GAAP Basis Securitization Effect
--------------------------------------------- ---------------------------------------------
March 31, December 31, September 30, March 31, December 31, September 30,
2005 2004 2004 2005 2004 2004
------------- ------------- ------------- ------------- ------------- -------------
Net revenues:
Discount revenue $ 2,672 $ 2,817 $ 2,535
Lending:
Finance charge revenue 770 716 714 $ 609 $ 621 $ 573
Interest expense 178 156 152 140 132 108
------------- ------------- ------------- ------------- ------------- -------------
Net finance charge revenue 592 560 562 469 489 465
Net card fees 498 491 474
Travel commissions and fees 422 484 426
Other commissions and fees 563 606 563 53 54 53
Travelers Cheque investment income 94 94 96
Securitization income, net 316 325 295 (316) (325) (295)
Other revenues 425 411 411
------------- ------------- ------------- ------------- ------------- -------------
Total net revenues 5,582 5,788 5,362 206 218 223
------------- ------------- ------------- ------------- ------------- -------------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,316 1,416 1,280 (4) - (6)
Provision for losses and claims:
Charge card 215 240 206
Lending 295 296 233 212 218 232
Other 35 30 84
------------- ------------- ------------- ------------- ------------- -------------
Total 545 566 523 212 218 232
Charge card interest expense 176 196 174
Human resources 1,143 1,169 1,074
Other operating expenses:
Professional services 482 619 525
Occupancy and equipment 323 366 313
Communications 115 118 112
Other 310 320 314 (2) - (3)
------------- ------------- ------------- ------------- ------------- -------------
Total 1,230 1,423 1,264 (2) - (3)
------------- ------------- ------------- ------------- ------------- -------------
Total expenses 4,410 4,770 4,315 $ 206 $ 218 $ 223
------------- ------------- ------------- ------------- ------------- -------------
Pretax income 1,172 1,018 1,047
Income tax provision 371 289 321
------------- ------------- -------------
Net income $ 801 $ 729 $ 726
============= ============= =============
<Caption>
Managed Basis
---------------------------------------------
March 31, December 31, September 30,
2005 2004 2004
------------- ------------- -------------
Net revenues:
Discount revenue
Lending:
Finance charge revenue $ 1,379 $ 1,337 $ 1,287
Interest expense 318 288 260
------------- ------------- -------------
Net finance charge revenue 1,061 1,049 1,027
Net card fees
Travel commissions and fees
Other commissions and fees 616 660 616
Travelers Cheque investment income
Securitization income, net - - -
Other revenues
------------- ------------- -------------
Total net revenues 5,788 6,006 5,585
------------- ------------- -------------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,312 1,416 1,274
Provision for losses and claims:
Charge card
Lending 507 514 465
Other
------------- ------------- -------------
Total 757 784 755
Charge card interest expense
Human resources
Other operating expenses:
Professional services
Occupancy and equipment
Communications
Other 308 320 311
------------- ------------- -------------
Total 1,228 1,423 1,261
------------- ------------- -------------
Total expenses $ 4,616 $ 4,988 $ 4,538
------------- ------------- -------------
Pretax income
Income tax provision
Net income
</Table>
Securitization income, net represents the non-credit provision components of
the net gains and charges from securitization activities, the amortization and
related impairment charges, if any, of the related interest-only strip, excess
spread related to securitized loans, net finance charge revenue on retained
interests in securitized 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 September 30, 2004 assumes
that gains from new issuances and charges from the amortization and maturities
of outstanding lending securitization transactions of $6 million and $9
million, respectively, are offset by higher marketing, promotion, rewards and
cardmember services expenses of $4 million and $6 million, respectively, and
other operating expenses of $2 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
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
June 30,
--------------------------------- Percentage
2005 2004 Inc/(Dec)
--------------- --------------- ---------------
Total cards-in-force (millions) (A):
United States 41.0 37.5 9.3%
Outside the United States 26.3 25.0 5.1
--------------- ---------------
Total 67.3 62.5 7.6
=============== ===============
Basic cards-in-force (millions):
United States 31.1 28.5 9.3%
Outside the United States 21.8 20.8 4.6
--------------- ---------------
Total 52.9 49.3 7.3
=============== ===============
Card billed business:
United States $ 88.5 $ 75.7 16.9%
Outside the United States 32.3 26.7 20.9
--------------- ---------------
Total $ 120.8 $ 102.4 17.9
=============== ===============
Average discount rate (A) 2.54% 2.56%
Average basic cardmember spending (dollars) (A) $ 2,640 $ 2,339 12.9%
Average fee per card - managed (dollars) (A) $ 35 $ 34 2.9%
Travel sales $ 5.6 $ 5.2 7.8%
Travel commissions and fees/sales (B) 8.9% 9.0%
Travelers Cheque and prepaid products:
Sales $ 4.9 $ 4.8 2.5%
Average outstanding $ 7.1 $ 6.9 3.7%
Average investments $ 7.7 $ 7.3 5.6%
Investment yield 5.2% 5.5%
Tax equivalent yield 8.0% 8.5%
Total debt $ 41.9 $ 38.8 8.1%
Shareholder's equity $ 9.7 $ 8.6 12.4%
Return on average total shareholder's equity (C) 33.7% 32.1%
Return on average total assets (D) 3.7% 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)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
June 30,
----------------------- Percentage
2005 2004 Inc/(Dec)
--------- --------- ----------
Worldwide cardmember receivables:
Total receivables $ 31.5 $ 28.4 11.0%
90 days past due as a % of total 1.7% 1.9%
Loss reserves (millions): $ 848 $ 864 (1.8)%
% of receivables 2.7% 3.0%
% of 90 days past due 160% 163%
Net loss ratio as a % of charge volume 0.25% 0.25%
Worldwide cardmember lending - owned basis:
Total loans $ 28.1 $ 26.4 6.4%
Past due loans as a % of total:
30-89 days 1.4% 1.5%
90+ days 1.0% 1.0%
Loss reserves (millions):
Beginning balance $ 918 $ 994 (7.6)%
Provision 262 282 (7.3)
Net write-offs (285) (267) (6.7)
Other (7) 21 #
--------- ---------
Ending balance $ 888 $ 1,030 (13.9)
========= =========
% of loans 3.2% 3.9%
% of past due 133% 154%
Average loans $ 27.5 $ 25.9 6.0%
Net write-off rate 4.1% 4.1%
Net interest yield 8.8% 8.4%
Worldwide cardmember lending - managed basis:
Total loans $ 48.8 $ 45.1 8.0%
Past due loans as a % of total:
30-89 days 1.4% 1.5%
90+ days 0.9% 1.0%
Loss reserves (millions):
Beginning balance $ 1,419 $ 1,570 (9.6)%
Provision 445 486 (8.4)
Net write-offs (490) (504) 2.7
Other (7) (17) (56.5)
--------- ---------
Ending balance $ 1,367 $ 1,535 (11.0)
========= =========
% of loans 2.8% 3.4%
% of past due 121% 136%
Average loans $ 47.5 $ 44.9 5.7%
Net write-off rate 4.1% 4.5%
Net interest yield 8.7% 8.6%
</Table>
# - Denotes a variance of more than 100%.
-12-
<Page>
(Preliminary)
Travel Related Services
Statements of Income
(Millions)
<Table>
<Caption>
Quarters Ended
--------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
-------- --------- ------------ ------------- --------
Net revenues:
Discount revenue $ 2,941 $ 2,672 $ 2,817 $ 2,535 $ 2,529
Lending:
Finance charge revenue 839 770 716 714 697
Interest expense 202 178 156 152 136
-------- --------- ------------ ------------- --------
Net finance charge revenue 637 592 560 562 561
Net card fees 506 498 491 474 472
Travel commissions and fees 502 422 484 426 468
Other commissions and fees 602 563 606 563 551
Travelers Cheque investment income 94 94 94 96 95
Securitization income, net 296 316 325 295 282
Other 396 425 411 411 420
-------- --------- ------------ ------------- --------
Total net revenues 5,974 5,582 5,788 5,362 5,378
-------- --------- ------------ ------------- --------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,440 1,316 1,416 1,280 1,225
Provision for losses and claims:
Charge card 234 215 240 206 189
Lending 275 295 296 233 314
Other 72 35 30 84 33
-------- --------- ------------ ------------- --------
Total 581 545 566 523 536
Charge card interest expense 211 176 196 174 175
Human resources 1,224 1,143 1,169 1,074 1,081
Other operating expenses:
Professional services 538 482 619 525 488
Occupancy and equipment 342 323 366 313 313
Communications 110 115 118 112 114
Other 360 310 320 314 367
-------- --------- ------------ ------------- --------
Total 1,350 1,230 1,423 1,264 1,282
-------- --------- ------------ ------------- --------
Total expenses 4,806 4,410 4,770 4,315 4,299
-------- --------- ------------ ------------- --------
Pretax income 1,168 1,172 1,018 1,047 1,079
Income tax provision 360 371 289 321 347
-------- --------- ------------ ------------- --------
Net income $ 808 $ 801 $ 729 $ 726 $ 732
======== ========= ============ ============= ========
</Table>
-13-
<Page>
(Preliminary)
Travel Related Services
Selected Managed Basis Information
(Millions)
<Table>
<Caption>
Quarters Ended
--------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
-------- --------- ------------ ------------- --------
Lending finance charge revenue $ 1,457 $ 1,379 $ 1,337 $ 1,287 $ 1,186
Lending interest expense 366 318 288 260 197
Other commissions and fees 653 616 660 616 601
Marketing, promotion, rewards
and cardmember services 1,439 1,312 1,416 1,274 1,219
Lending provision 485 507 514 465 519
Other operating expenses 360 308 320 311 364
</Table>
Note: See prior page for comparable GAAP measures.
-14-
<Page>
(Preliminary)
Travel Related Services
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------ ------------ ------------ ------------- ------------
Total cards-in-force (millions)(A):
United States 41.0 40.3 39.9 38.0 37.5
Outside the United States 26.3 25.8 25.5 25.3 25.0
------------ ------------ ------------ ------------- ------------
Total 67.3 66.1 65.4 63.3 62.5
============ ============ ============ ============= ============
Basic cards-in-force (millions):
United States 31.1 30.6 30.3 28.9 28.5
Outside the United States 21.8 21.3 21.0 20.8 20.8
------------ ------------ ------------ ------------- ------------
Total 52.9 51.9 51.3 49.7 49.3
============ ============ ============ ============= ============
Card billed business:
United States $ 88.5 $ 79.6 $ 83.4 $ 75.6 $ 75.7
Outside the United States 32.3 29.7 32.1 27.2 26.7
------------ ------------ ------------ ------------- ------------
Total $ 120.8 $ 109.3 $ 115.5 $ 102.8 $ 102.4
============ ============ ============ ============= ============
Average discount rate (A) 2.54% 2.56% 2.54% 2.57% 2.56%
Average basic cardmember spending (dollars) (A) $ 2,640 $ 2,412 $ 2,589 $ 2,330 $ 2,339
Average fee per card - managed (dollars) (A) $ 35 $ 35 $ 35 $ 34 $ 34
Travel sales $ 5.6 $ 5.0 $ 5.3 $ 4.6 $ 5.2
Travel commissions and fees/sales (B) 8.9% 8.4% 9.1% 9.2% 9.0%
Travelers Cheque and prepaid products:
Sales $ 4.9 $ 4.2 $ 4.9 $ 5.8 $ 4.8
Average outstanding $ 7.1 $ 7.1 $ 7.0 $ 7.1 $ 6.9
Average investments $ 7.7 $ 7.8 $ 7.6 $ 7.6 $ 7.3
Investment yield 5.2% 5.2% 5.4% 5.4% 5.5%
Tax equivalent yield 8.0% 8.0% 8.3% 8.3% 8.5%
Total debt $ 41.9 $ 43.1 $ 45.4 $ 39.1 $ 38.8
Shareholder's equity $ 9.7 $ 9.3 $ 8.8 $ 9.0 $ 8.6
Return on average total shareholder's equity (C) 33.7% 33.9% 33.4% 32.7% 32.1%
Return on average total assets (D) 3.7% 3.6% 3.5% 3.5% 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)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------ ------------ ------------ ------------- ------------
Worldwide cardmember receivables:
Total receivables $ 31.5 $ 30.0 $ 31.1 $ 28.6 $ 28.4
90 days past due as a % of total 1.7% 1.9% 1.8% 1.8% 1.9%
Loss reserves (millions): $ 848 $ 831 $ 806 $ 847 $ 864
% of receivables 2.7% 2.8% 2.6% 3.0% 3.0%
% of 90 days past due 160% 147% 146% 160% 163%
Net loss ratio as a % of charge volume 0.25% 0.23% 0.25% 0.26% 0.25%
Worldwide cardmember lending - owned basis:
Total loans $ 28.1 $ 25.9 $ 26.9 $ 25.2 $ 26.4
Past due loans as a % of total:
30-89 days 1.4% 1.6% 1.5% 1.6% 1.5%
90+ days 1.0% 1.0% 0.9% 0.9% 1.0%
Loss reserves (millions):
Beginning balance $ 918 $ 972 $ 1,008 $ 1,030 $ 994
Provision 262 266 272 205 282
Net write-offs (285) (267) (254) (255) (267)
Other (7) (53) (54) 28 21
------------ ------------ ------------ ------------- ------------
Ending balance $ 888 $ 918 $ 972 $ 1,008 $ 1,030
============ ============ ============ ============= ============
% of loans 3.2% 3.6% 3.6% 4.0% 3.9%
% of past due 133% 134% 151% 159% 154%
Average loans $ 27.5 $ 26.3 $ 26.2 $ 26.2 $ 25.9
Net write-off rate 4.1% 4.1% 3.9% 3.9% 4.1%
Net interest yield 8.8% 8.6% 8.1% 8.1% 8.4%
Worldwide cardmember lending - managed basis:
Total loans $ 48.8 $ 46.3 $ 47.2 $ 45.6 $ 45.1
Past due loans as a % of total:
30-89 days 1.4% 1.6% 1.5% 1.6% 1.5%
90+ days 0.9% 1.0% 0.9% 0.9% 1.0%
Loss reserves (millions):
Beginning balance $ 1,419 $ 1,475 $ 1,537 $ 1,535 $ 1,570
Provision 445 471 463 437 486
Net write-offs (490) (474) (471) (463) (504)
Other (7) (53) (54) 28 (17)
------------ ------------ ------------ ------------- ------------
Ending balance $ 1,367 $ 1,419 $ 1,475 $ 1,537 $ 1,535
============ ============ ============ ============= ============
% of loans 2.8% 3.1% 3.1% 3.4% 3.4%
% of past due 121% 120% 129% 132% 136%
Average loans $ 47.5 $ 46.4 $ 46.5 $ 45.3 $ 44.9
Net write-off rate 4.1% 4.1% 4.1% 4.1% 4.5%
Net interest yield 8.7% 8.8% 8.5% 8.6% 8.6%
</Table>
-16-
<Page>
(Preliminary)
American Express Financial Advisors
Statements of Income
(Millions)
<Table>
<Caption>
Quarters Ended
June 30,
--------------------------- Percentage
2005 2004 Inc/(Dec)
------------ ------------ ----------
Revenues:
Net investment income $ 638 $ 603 5.9%
Investment management and service fees 454 411 10.3
Distribution fees 362 315 15.3
Variable life insurance and variable annuity charges* 113 111 2.5
Life and health insurance premiums 92 88 4.2
Property-casualty insurance premiums 121 103 17.5
Other 128 106 18.0
------------ ------------
Total revenues 1,908 1,737 9.8
------------ ------------
Expenses:
Provision for losses and benefits:
Interest credited on annuities
and universal life-type contracts 281 280 0.1
Benefits on insurance and annuities 125 124 1.0
Interest credited on investment certificates 96 48 97.3
Losses and expenses on property-casualty insurance 92 80 16.5
------------ ------------
Total 594 532 11.6
Human resources - Field 393 333 17.8
Human resources - Non-field 279 210 33.4
Amortization of deferred acquisition costs 125 125 0.3
Other 340 273 23.8
------------ ------------
Total expenses 1,731 1,473 17.4
------------ ------------
Pretax income 177 264 (32.8)
Income tax provision 37 90 (58.5)
------------ ------------
Net income $ 140 $ 174 (19.4)
============ ============
</Table>
* - Variable life insurance and variable annuity charges include variable
universal life and universal life insurance charges.
-17-
<Page>
(Preliminary)
American Express Financial Advisors
Selected Statistical Information
(Millions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
June 30,
--------------------------- Percentage
2005 2004 Inc/(Dec)
------------ ------------ ----------
Investments (billions) (A) $ 44.8 $ 41.8 7.1%
Client contract reserves (billions) $ 45.0 $ 41.9 7.4%
Shareholder's equity (billions) $ 6.7 $ 6.3 6.4%
Return on average total shareholder's equity
before accounting change (B) 10.8% 11.7%
Return on average total shareholder's equity (B) 10.8% 10.5%
Life insurance inforce (billions) $ 153.2 $ 139.1 10.1%
Assets owned, managed or
administered (billions):
Assets managed for institutions $ 136.8 $ 125.5 9.0%
Assets owned, managed or administered
for individuals:
Owned assets:
Separate account assets 37.4 32.9 13.8
Other owned assets 63.3 57.9 9.4
------------ ------------
Total owned assets 100.7 90.8 11.0
Managed assets 118.4 108.8 8.8
Administered assets 59.6 55.3 7.8
------------ ------------
Total $ 415.5 $ 380.4 9.2
============ ============
Market appreciation (depreciation) and foreign
currency translation during the period:
Owned assets:
Separate account assets $ 614 $ (101) #
Other owned assets $ 614 $ (1,476) #
Managed assets $ 4,093 $ 232 #
Cash sales:
Mutual funds $ 9,830 $ 8,480 15.9%
Annuities 2,440 1,912 27.7
Investment certificates 1,896 1,445 31.2
Life and other insurance products 242 221 9.5
Institutional 2,519 2,841 (11.3)
Other 1,081 1,116 (3.2)
------------ ------------
Total cash sales $ 18,008 $ 16,015 12.4
============ ============
Number of financial advisors 12,162 11,943 1.8%
Fees from financial plans and advice services $ 51.3 $ 39.3 30.6%
Percentage of total sales from financial plans
and advice services 75.4% 74.6%
</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
(Millions)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------ ------------ ------------ ------------- ------------
Revenues:
Net investment income $ 638 $ 622 $ 635 $ 581 $ 603
Investment management and service fees 454 450 463 429 411
Distribution fees 362 351 327 304 315
Variable life insurance and variable annuity charges* 113 114 113 111 111
Life and health insurance premiums 92 89 91 91 88
Property-casualty insurance premiums 121 115 114 109 103
Other 128 120 113 89 106
------------ ------------ ------------ ------------- ------------
Total revenues 1,908 1,861 1,856 1,714 1,737
------------ ------------ ------------ ------------- ------------
Expenses:
Provision for losses and benefits:
Interest credited on annuities
and universal life-type contracts 281 273 286 279 280
Benefits on insurance and annuities 125 112 124 112 124
Interest credited on investment certificates 96 76 86 45 48
Losses and expenses on property-casualty insurance 92 88 89 84 80
------------ ------------ ------------ ------------- ------------
Total 594 549 585 520 532
Human resources - Field 393 376 339 312 333
Human resources - Non-field 279 272 253 235 210
Amortization of deferred acquisition costs 125 128 116 100 125
Other 340 301 315 290 273
------------ ------------ ------------ ------------- ------------
Total expenses 1,731 1,626 1,608 1,457 1,473
------------ ------------ ------------ ------------- ------------
Pretax income 177 235 248 257 264
Income tax provision 37 69 30 71 90
------------ ------------ ------------ ------------- ------------
Net income $ 140 $ 166 $ 218 $ 186 $ 174
============ ============ ============ ============= ============
</Table>
* - Variable life insurance and variable annuity charges include variable
universal life and universal life insurance charges.
-19-
<Page>
(Preliminary)
American Express Financial Advisors
Selected Statistical Information
(Millions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------ ------------ ------------ ------------- ------------
Investments (billions) (A) $ 44.8 $ 44.6 $ 44.9 $ 43.1 $ 41.8
Client contract reserves (billions) $ 45.0 $ 44.9 $ 44.3 $ 42.9 $ 41.9
Shareholder's equity (billions) $ 6.7 $ 6.2 $ 6.4 $ 6.9 $ 6.3
Return on average total shareholder's equity
before accounting change (B) 10.8% 11.2% 11.8% 11.4% 11.7%
Return on average total shareholder's equity (B) 10.8% 11.2% 10.8% 10.1% 10.5%
Life insurance inforce (billions) $ 153.2 $ 150.0 $ 145.8 $ 142.5 $ 139.1
Assets owned, managed or
administered (billions):
Assets managed for institutions $ 136.8 $ 134.4 $ 139.3 $ 127.4 $ 125.5
Assets owned, managed or administered
for individuals:
Owned assets:
Separate account assets 37.4 36.0 35.9 32.4 32.9
Other owned assets 63.3 61.9 61.2 59.6 57.9
------------ ------------ ------------ ------------- ------------
Total owned assets 100.7 97.9 97.1 92.0 90.8
Managed assets 118.4 115.8 117.5 108.6 108.8
Administered assets 59.6 57.4 58.8 55.3 55.3
------------ ------------ ------------ ------------- ------------
Total $ 415.5 $ 405.5 $ 412.7 $ 383.3 $ 380.4
============ ============ ============ ============= ============
Market appreciation (depreciation) and foreign
currency translation during the period:
Owned assets:
Separate account assets $ 614 $ (573) $ 2,920 $ (377) $ (101)
Other owned assets $ 614 $ (778) $ 56 $ 752 $ (1,476)
Managed assets $ 4,093 $ (3,844) $ 17,956 $ (194) $ 232
Cash sales:
Mutual funds $ 9,830 $ 9,830 $ 8,680 $ 8,066 $ 8,480
Annuities 2,440 2,016 1,835 1,887 1,912
Investment certificates 1,896 2,226 2,586 1,786 1,445
Life and other insurance products 242 236 229 239 221
Institutional 2,519 1,758 1,763 1,664 2,841
Other 1,081 925 1,078 991 1,116
------------ ------------ ------------ ------------- ------------
Total cash sales $ 18,008 $ 16,991 $ 16,171 $ 14,633 $ 16,015
============ ============ ============ ============= ============
Number of financial advisors 12,162 12,356 12,344 12,071 11,943
Fees from financial plans and advice services $ 51.3 $ 39.1 $ 38.2 $ 28.1 $ 39.3
Percentage of total sales from financial plans
and advice services 75.4% 76.6% 75.9% 75.4% 74.6%
</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
(Millions)
<Table>
<Caption>
Quarters Ended
June 30,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Net revenues:
Interest income $ 157 $ 131 20.9%
Interest expense 84 51 66.5
---------- ----------
Net interest income 73 80 (8.2)
Commissions and fees 78 70 10.3
Foreign exchange income and other revenues 57 53 6.6
---------- ----------
Total net revenues 208 203 2.1
---------- ----------
Expenses:
Human resources 81 71 14.4
Other operating expenses 80 78 1.0
Provision for losses 2 12 (82.8)
---------- ----------
Total expenses 163 161 0.8
---------- ----------
Pretax income 45 42 6.9
Income tax provision(benefit) (16) 14 #
---------- ----------
Net income $ 61 $ 28 #
========== ==========
</Table>
# - Denotes a variance of more than 100%.
-21-
<Page>
(Preliminary)
American Express Bank
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
June 30,
------------------------ Percentage
2005 2004 Inc/(Dec)
---------- ---------- ----------
Total shareholder's equity (millions) $ 987 $ 953 3.5%
Return on average total shareholder's equity (A) 13.7% 11.9%
Return on average total assets (B) 0.96% 0.81%
Total loans $ 7.0 $ 6.5 8.4%
Non-Consumer Financial Services (CFS) loans:
Total Non-CFS loans (C) $ 5.6 $ 5.2 10.0%
Non-CFS loan loss reserves (millions):
Beginning balance $ 48 $ 61 (20.0)%
Provision - 2 #
Net charge-offs 3 (5) #
Other (5) 4 #
---------- ----------
Ending balance $ 46 $ 62 (25.6)
========== ==========
% of Non-CFS loans 0.8% 1.2%
Total non-performing loans (millions) $ 21 $ 50 (57.7)%
CFS loans:
Total CFS Loans (D) $ 1.4 $ 1.3 2.4%
Past due as a % of total CFS loans:
30-89 days past due 3.5% 4.6%
90+ days past due 0.7% 0.9%
CFS loan loss reserves (millions):
Beginning balance $ 35 $ 45 (21.9)%
Provision 7 10 (26.6)
Net charge-offs (11) (13) (17.4)
Other - (1) (64.9)
---------- ----------
Ending balance $ 31 $ 41 (23.8)
========== ==========
% of CFS loans 2.3% 3.1%
% of 30 days past due CFS loans 54% 57%
Net write-off rate 3.2% 4.0%
Deposits $ 11.3 $ 11.2 0.5%
Assets owned, managed (E) / administered:
Owned $ 14.0 $ 14.1 (1.2)
Managed (E) / administered 19.7 16.9 16.4
---------- ----------
Total $ 33.7 $ 31.0 8.4
========== ==========
Assets of non-consolidated joint ventures (F) $ 1.9 $ 1.7 14.3%
Risk-based capital ratios (G):
Tier 1 11.7% 12.0%
Total 11.1% 11.8%
Leverage ratio 6.0% 5.9%
</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 $6.1 billion at June 30, 2005).
(G) Based on legal entity financial information.
-22-
<Page>
(Preliminary)
American Express Bank
Statements of Income
(Millions)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------ ------------ ------------ ------------- ------------
Net revenues:
Interest income $ 157 $ 148 $ 145 $ 132 $ 131
Interest expense 84 74 67 56 51
------------ ------------ ------------ ------------- ------------
Net interest income 73 74 78 76 80
Commissions and fees 78 73 74 69 70
Foreign exchange income and other revenues 57 60 55 60 53
------------ ------------ ------------ ------------- ------------
Total net revenues 208 207 207 205 203
------------ ------------ ------------ ------------- ------------
Expenses:
Human resources 81 81 81 71 71
Other operating expenses 80 75 76 74 78
Provision for losses 2 5 8 11 12
Restructuring charges - - 35 - -
------------ ------------ ------------ ------------- ------------
Total expenses 163 161 200 156 161
------------ ------------ ------------ ------------- ------------
Pretax income 45 46 7 49 42
Income tax provision(benefit) (16) 16 1 17 14
------------ ------------ ------------ ------------- ------------
Net income $ 61 $ 30 $ 6 $ 32 $ 28
============ ============ ============ ============= ============
</Table>
-23-
<Page>
(Preliminary)
American Express Bank
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
------------ ------------ ------------ ------------ ------------
Total shareholder's equity (millions) $ 987 $ 905 $ 924 $ 931 $ 953
Return on average total shareholder's equity (A) 13.7% 10.0% 10.0% 12.4% 11.9%
Return on average total assets (B) 0.96% 0.71% 0.70% 0.85% 0.81%
Total loans $ 7.0 $ 7.0 $ 6.9 $ 6.4 $ 6.5
Non-Consumer Financial Services (CFS) loans:
Total Non-CFS loans (C) $ 5.6 $ 5.6 $ 5.5 $ 5.1 $ 5.2
Non-CFS loan loss reserves (millions):
Beginning balance $ 48 $ 58 $ 57 $ 62 $ 61
Provision - - 1 2 2
Net charge-offs 3 (3) - (6) (5)
Other (5) (7) - (1) 4
------------ ------------ ------------ ------------ ------------
Ending balance $ 46 $ 48 $ 58 $ 57 $ 62
============ ============ ============ ============ ============
% of Non-CFS loans 0.8% 0.9% 1.0% 1.1% 1.2%
Total non-performing loans (millions) $ 21 $ 28 $ 37 $ 32 $ 50
CFS loans:
Total CFS Loans (D) $ 1.4 $ 1.4 $ 1.4 $ 1.3 $ 1.3
Past due as a % of total CFS loans:
30-89 days past due 3.5% 3.6% 3.8% 4.3% 4.6%
90+ days past due 0.7% 0.7% 0.7% 0.8% 0.9%
CFS loan loss reserves (millions):
Beginning balance $ 35 $ 37 $ 39 $ 41 $ 45
Provision 7 6 7 9 10
Net charge-offs (11) (11) (10) (11) (13)
Other - 3 1 - (1)
------------ ------------ ------------ ------------ ------------
Ending balance $ 31 $ 35 $ 37 $ 39 $ 41
============ ============ ============ ============ ============
% of CFS loans 2.3% 2.6% 2.7% 2.9% 3.1%
% of 30 days past due CFS loans 54% 59% 61% 57% 57%
Net write-off rate 3.2% 3.0% 3.0% 3.6% 4.0%
Deposits $ 11.3 $ 10.7 $ 10.4 $ 10.5 $ 11.2
Assets owned, managed (E) / administered:
Owned $ 14.0 $ 13.4 $ 13.4 $ 13.4 $ 14.1
Managed (E) / administered 19.7 19.5 19.2 17.6 16.9
------------ ------------ ------------ ------------ ------------
Total $ 33.7 $ 32.9 $ 32.6 $ 31.0 $ 31.0
============ ============ ============ ============ ============
Assets of non-consolidated joint ventures (F) $ 1.9 $ 1.8 $ 1.8 $ 1.7 $ 1.7
Risk-based capital ratios (G):
Tier 1 11.7% 11.0% 11.0% 10.8% 12.0%
Total 11.1% 10.7% 10.1% 10.6% 11.8%
Leverage ratio 6.0% 5.8% 5.8% 5.7% 5.9%
</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 $6.1 billion at June 30, 2005).
(G) Based on legal entity financial information.
-24-