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. Amounts herein reflect certain reclassifications as noted
in the Company's Form 8-K dated April 5, 2006 filed with the Securities and
Exchange Commission.
(Preliminary)
American Express Company
Consolidated Statements of Income
(Millions)
<Table>
<Caption>
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------- PERCENTAGE ------------------ PERCENTAGE
2006 2005 INC/(DEC) 2006 2005 INC/(DEC)
------ ------ ---------- -------- ------- ----------
Net revenues
Discount revenue $3,259 $2,894 13% $ 9,520 $ 8,393 13%
Cardmember lending finance charge revenue, net of interest 912 648 41 2,467 1,877 31
Net card fees 462 511 (10) 1,515 1,515 --
Travel commissions and fees 427 421 1 1,328 1,345 (1)
Other commissions and fees 620 598 4 1,901 1,745 9
Securitization income, net 384 353 9 1,142 965 18
Other investment and interest income, net of interest 264 246 7 813 776 5
Other 431 357 21 1,242 1,072 16
------ ------ ------- -------
Total 6,759 6,028 12 19,928 17,688 13
------ ------ ------- -------
Expenses
Marketing, promotion, rewards
and cardmember services 1,589 1,492 7 4,782 4,260 12
Human resources 1,213 1,197 1 3,729 3,652 2
Provision for losses and benefits:
Charge card 257 299 (14) 658 748 (12)
Cardmember lending 412 364 13 1,139 934 22
Investment certificates and other 129 76 70 399 278 44
------ ------ ------- -------
Total 798 739 8 2,196 1,960 12
Professional services 684 563 21 1,903 1,594 19
Occupancy and equipment 375 346 8 1,086 1,038 5
Interest 324 238 36 898 671 34
Communications 107 112 (4) 333 342 (3)
Other 331 261 27 896 882 2
------ ------ ------- -------
Total 5,421 4,948 10 15,823 14,399 10
------ ------ ------- -------
Pretax income from continuing operations 1,338 1,080 24 4,105 3,289 25
Income tax provision 382 215 78 1,301 819 59
------ ------ ------- -------
Income from continuing operations 956 865 11 2,804 2,470 14
Income/(Loss) from discontinued operations, net of tax 11 165 (93) (19) 519 #
------ ------ ------- -------
Net income $ 967 $1,030 (6) $ 2,785 $ 2,989 (7)
====== ====== ======= =======
</Table>
# - Denotes a variance of more than 100%.
1
<Page>
(Preliminary)
American Express Company
Condensed Consolidated Balance Sheets
(Billions)
<Table>
<Caption>
SEPTEMBER 30, DECEMBER 31,
2006 2005
------------- ------------
Assets
Cash and cash equivalents $ 8 $ 7
Accounts receivable 36 35
Investments 22 21
Loans 46 41
Other assets 9 10
---- ----
Total assets $121 $114
==== ====
Liabilities and Shareholders' Equity
Short-term debt $ 15 $ 16
Long-term debt 39 31
Other liabilities 56 56
---- ----
Total liabilities 110 103
---- ----
Shareholders' equity 11 11
---- ----
Total liabilities and shareholders' equity $121 $114
==== ====
</Table>
2
<Page>
(Preliminary)
American Express Company
Financial Summary
(Millions)
<Table>
<Caption>
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------- PERCENTAGE ------------------- PERCENTAGE
2006 2005 INC/(DEC) 2006 2005 INC/(DEC)
------- ------- ---------- -------- -------- ----------
Net Revenues
U.S. Card Services $3,534 $3,044 16% $10,199 $ 8,797 16%
International Card & Global Commercial Services 2,287 2,212 3 7,031 6,606 6
Global Network & Merchant Services 798 693 15 2,292 2,022 13
------ ------ ------- -------
6,619 5,949 11 19,522 17,425 12
Corporate & Other,
including adjustments and eliminations 140 79 77 406 263 54
------ ------ ------- -------
CONSOLIDATED NET REVENUES $6,759 $6,028 12 $19,928 $17,688 13
====== ====== ======= =======
Pretax Income (Loss) From Continuing Operations
U.S. Card Services $ 819 $ 633 29 $ 2,535 $ 2,033 25
International Card & Global Commercial Services 281 317 (11) 886 803 10
Global Network & Merchant Services 314 214 47 891 630 41
------ ------ ------- -------
1,414 1,164 21 4,312 3,466 24
Corporate & Other (76) (84) (10) (207) (177) 17
------ ------ ------- -------
PRETAX INCOME FROM CONTINUING OPERATIONS $1,338 $1,080 24 $ 4,105 $ 3,289 25
====== ====== ======= =======
Net Income (Loss)
U.S. Card Services $ 580 $ 443 31 $ 1,742 $ 1,402 24
International Card & Global Commercial Services 216 249 (13) 654 666 (2)
Global Network & Merchant Services 212 141 50 578 407 42
------ ------ ------- -------
1,008 833 21 2,974 2,475 20
Corporate & Other (52) 32 # (170) (5) #
------ ------ ------- -------
Income from continuing operations 956 865 11 2,804 2,470 14
Income/(Loss) from discontinued operations, net of tax 11 165 (93) (19) 519 #
------ ------ ------- -------
NET INCOME $ 967 $1,030 (6) $ 2,785 $ 2,989 (7)
====== ====== ======= =======
</Table>
# - Denotes a variance of more than 100%.
3
<Page>
(Preliminary)
American Express Company
Financial Summary (continued)
<Table>
<Caption>
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------- PERCENTAGE ----------------- PERCENTAGE
2006 2005 INC/(DEC) 2006 2005 INC/(DEC)
------ ------ ---------- ------ ------ ----------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.79 $ 0.70 13% $ 2.30 $ 2.00 15%
Income/(Loss) from discontinued operations 0.01 0.14 (93) (0.01) 0.42 #
------ ------ ------ ------
Net income $ 0.80 $ 0.84 (5)% $ 2.29 $ 2.42 (5)%
====== ====== ====== ======
Average common shares outstanding (millions) 1,202 1,229 (2)% 1,217 1,233 (1)%
====== ====== ====== ======
DILUTED
Income from continuing operations $ 0.78 $ 0.69 13% $ 2.26 $ 1.96 15%
Income/(Loss) from discontinued operations 0.01 0.13 (92) (0.02) 0.42 #
------ ------ ------ ------
Net income $ 0.79 $ 0.82 (4)% $ 2.24 $ 2.38 (6)%
====== ====== ====== ======
Average common shares outstanding (millions) 1,227 1,254 (2)% 1,242 1,257 (1)%
====== ====== ====== ======
Cash dividends declared per common share $ 0.15 $ 0.12 25% $ 0.42 $ 0.36 17%
====== ====== ====== ======
</Table>
Selected Statistical Information
<Table>
<Caption>
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------- PERCENTAGE ----------------- PERCENTAGE
2006 2005 INC/(DEC) 2006 2005 INC/(DEC)
------ ------ ---------- ------ ------ ----------
Return on average total shareholders' equity (A) 33.6% 24.2% 33.6% 24.2%
Common shares outstanding (millions) 1,204 1,239 (3)% 1,204 1,239 (3)%
Book value per common share $ 8.93 $ 7.99 12% $ 8.93 $ 7.99 12%
Shareholders' equity (billions) $ 10.8 $ 9.9 9% $ 10.8 $ 9.9 9%
</Table>
# - Denotes a variance of more than 100%.
(A) Computed on a trailing 12-month basis using net income over average total
shareholders' equity (including discontinued operations) as included in the
Consolidated Financial Statements prepared in accordance with GAAP.
4
<Page>
(Preliminary)
American Express Company
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
SEPTEMBER 30,
--------------- PERCENTAGE
2006 2005 INC/(DEC)
------ ------ ----------
Card billed business (A):
United States $101.7 $ 89.6 14%
Outside the United States 38.6 32.1 20
------ ------
Total $140.3 $121.7 15
====== ======
Total cards-in-force (millions) (A):
United States 46.8 42.0 11%
Outside the United States 29.7 27.0 10
------ ------
Total 76.5 69.0 11
====== ======
Basic cards-in-force (millions) (A):
United States 36.0 31.9 13%
Outside the United States 25.2 22.4 13
------ ------
Total 61.2 54.3 13
====== ======
Average discount rate (B) 2.57% 2.58%
Average quarterly basic cardmember spending (dollars) (A) $2,770 $2,610 6%
Average fee per card (dollars) (A) (C) $ 34 $ 35 (3)%
Travel sales $ 5.1 $ 4.8 6%
Travel commissions and fees/sales 8.4% 8.7%
Worldwide Travelers Cheque and prepaid products:
Sales $ 5.6 $ 5.8 (3)%
Average outstanding $ 7.2 $ 7.3 (1)%
Average investments $ 7.9 $ 7.9 --%
Investment yield (D) 4.9% 5.1%
Tax equivalent yield - managed (D) 7.5% 7.8%
International banking:
Total loans $ 7.2 $ 6.9 4%
Private banking holdings $ 22.0 $ 20.2 9%
</Table>
(A) Card billed business includes activities (including cash advances)
related to proprietary cards, cards issued under network partnership
agreements and certain insurance fees charged on proprietary cards.
Cards-in-force include 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 as follows: Discount Revenue from all card spending (proprietary
and Global Network Services) at merchants divided by all billed business
(proprietary and Global Network Services) generating discount revenue at
such merchants. Only merchants acquired by the Company are included in
the computation.
(C) Average fees per card are computed based on net card fees excluding the
amortization of deferred acquisition costs.
(D) Investment yield represents earnings on certain tax-exempt securities.
The tax equivalent yield - managed represents earnings on such tax-exempt
securities as if it had been earned on a taxable basis and assumes an
income tax-rate of 35 percent.
5
<Page>
(Preliminary)
American Express Company
Selected Statistical Information (continued)
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
SEPTEMBER 30,
--------------- PERCENTAGE
2006 2005 INC/(DEC)
------ ------ ----------
Worldwide cardmember receivables:
Total receivables $ 35.0 $ 31.9 10%
90 days past due as a % of total 1.8% 1.7%
Loss reserves (millions): $ 947 $ 909 4%
% of receivables 2.7% 2.9%
% of 90 days past due 149% 173%
Net loss ratio as a % of charge volume 0.26% 0.27%
Worldwide cardmember lending - owned basis (A):
Total loans $ 38.3 $ 29.9 28%
30 days past due loans as a % of total 2.8% 2.5%
Loss reserves (millions):
Beginning balance $1,086 $ 888 22%
Provision 381 325 17
Net write-offs (353) (280) 26
Other 12 19 (37)
------ ------
Ending balance $1,126 $ 952 18
====== ======
% of loans 2.9% 3.2%
% of past due 106% 128%
Average loans $ 37.5 $ 28.3 33%
Net write-off rate 3.8% 4.0%
Net finance charge revenue(B)/average loans 9.6% 9.2%
Worldwide cardmember lending - managed basis (C):
Total loans $ 58.5 $ 50.6 16%
30 days past due loans as a % of total 2.7% 2.4%
Loss reserves (millions):
Beginning balance $1,546 $1,367 13%
Provision 512 510 --
Net write-offs (498) (494) 1
Other 11 18 (39)
------ ------
Ending balance $1,571 $1,401 12
====== ======
% of loans 2.7% 2.8%
% of past due 101% 114%
Average loans $ 57.6 $ 49.6 16%
Net write-off rate 3.5% 4.0%
Net finance charge revenue(B)/average loans 9.6% 9.4%
</Table>
# - Denotes a variance of more than 100%.
(A) "Owned" or GAAP basis measurement reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(B) Computed on an annualized basis.
(C) Includes on-balance sheet cardmember loans and off-balance sheet
securitized cardmember loans. The difference between the "owned basis"
(GAAP) information and "managed basis" information is attributable to the
effects of securitization activities. Refer to the information set forth
under U.S. Card Services Selected Financial Information on page 19 for
further discussion of the managed basis presentation.
6
<Page>
(Preliminary)
American Express Company
Consolidated Statements of Income
(Millions)
<Table>
<Caption>
QUARTERS ENDED
--------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
-------------- -------- --------- ------------ -------------
Net revenues
Discount revenue $3,259 $3,292 $2,969 $3,096 $2,894
Cardmember lending finance charge revenue, net of interest 912 839 716 703 648
Net card fees 462 533 520 518 511
Travel commissions and fees 427 483 418 435 421
Other commissions and fees 620 642 639 630 598
Securitization income, net 384 372 386 295 353
Other investment and interest income, net of interest 264 274 275 279 246
Other 431 415 396 424 357
------ ----- ------ ------ ------
Total 6,759 6,850 6,319 6,380 6,028
------ ----- ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 1,589 1,671 1,522 1,581 1,492
Human resources 1,213 1,276 1,240 1,177 1,197
Provision for losses and benefits:
Charge card 257 192 209 290 299
Cardmember lending 412 406 321 415 364
Investment certificates and other 129 132 138 108 76
------ ----- ------ ------ ------
Total 798 730 668 813 739
Professional services 684 658 561 714 563
Occupancy and equipment 375 365 346 390 346
Interest 324 308 266 249 238
Communications 107 113 113 115 112
Other 331 287 278 382 261
------ ----- ------ ------ ------
Total 5,421 5,408 4,994 5,421 4,948
------ ----- ------ ------ ------
Pretax income from continuing operations 1,338 1,442 1,325 959 1,080
Income tax provision 382 470 449 208 215
------ ----- ------ ------ ------
Income from continuing operations 956 972 876 751 865
Income/(Loss) from discontinued operations, net of tax 11 (27) (3) (6) 165
------ ----- ------ ------ ------
Net income $ 967 $ 945 $ 873 $ 745 $1,030
====== ====== ====== ====== ======
</Table>
7
<Page>
(Preliminary)
American Express Company
Financial Summary
(Millions)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Net Revenues
U.S. Card Services $ 3,534 $ 3,485 $3,180 $3,181 $ 3,044
International Card & Global Commercial Services 2,287 2,441 2,303 2,299 2,212
Global Network & Merchant Services 798 789 705 725 693
------- ------- ------ ------ -------
6,619 6,715 6,188 6,205 5,949
Corporate & Other,
including adjustments and eliminations 140 135 131 175 79
------- ------- ------ ------ -------
CONSOLIDATED NET REVENUES $ 6,759 $ 6,850 $6,319 $6,380 $ 6,028
======= ======= ====== ====== =======
Pretax Income (Loss) From Continuing Operations
U.S. Card Services $ 819 $ 920 $ 796 $ 538 $ 633
International Card & Global Commercial Services 281 294 311 290 317
Global Network & Merchant Services 314 315 262 252 214
------- ------- ------ ------ -------
1,414 1,529 1,369 1,080 1,164
Corporate & Other (76) (87) (44) (121) (84)
------- ------- ------ ------ -------
PRETAX INCOME FROM CONTINUING OPERATIONS $ 1,338 $ 1,442 $1,325 $ 959 $ 1,080
======= ======= ====== ====== =======
Net Income (Loss)
U.S. Card Services $ 580 $ 616 $ 546 $ 414 $ 443
International Card & Global Commercial Services 216 225 213 233 249
Global Network & Merchant Services 212 200 166 166 141
------- ------- ------ ------ -------
1,008 1,041 925 813 833
Corporate & Other (52) (69) (49) (62) 32
------- ------- ------ ------ -------
Income from continuing operations 956 972 876 751 865
Income/(Loss) from discontinued operations, net of tax 11 (27) (3) (6) 165
------- ------- ------ ------ -------
NET INCOME $ 967 $ 945 $ 873 $ 745 $ 1,030
======= ======= ====== ====== =======
</Table>
8
<Page>
(Preliminary)
American Express Company
Financial Summary (continued)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.79 $ 0.80 $ 0.71 $ 0.61 $ 0.70
Income/(Loss) from discontinued operations 0.01 (0.02) -- (0.01) 0.14
------ ------ ------ ------ ------
Net income $ 0.80 $ 0.78 $ 0.71 $ 0.60 $ 0.84
====== ====== ====== ====== ======
Average common shares outstanding (millions) 1,202 1,217 1,232 1,232 1,229
====== ====== ====== ====== ======
DILUTED
Income from continuing operations $ 0.78 $ 0.78 $ 0.70 $ 0.60 $ 0.69
Income/(Loss) from discontinued operations 0.01 (0.02) (0.01) (0.01) 0.13
------ ------ ------ ------ ------
Net income $ 0.79 $ 0.76 $ 0.69 $ 0.59 $ 0.82
====== ====== ====== ====== ======
Average common shares outstanding (millions) 1,227 1,242 1,258 1,258 1,254
====== ====== ====== ====== ======
Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.12 $ 0.12 $ 0.12
====== ====== ====== ====== ======
</Table>
Selected Statistical Information
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Return on average total shareholders' equity (A) 33.6% 29.8% 27.3% 25.4% 24.2%
Common shares outstanding (millions) 1,204 1,216 1,233 1,241 1,239
Book value per common share $ 8.93 $ 8.62 $ 8.60 $ 8.50 $ 7.99
Shareholders' equity (billions) $ 10.8 $ 10.5 $ 10.6 $ 10.5 $ 9.9
</Table>
(A) Computed on a trailing 12-month basis using net income over average total
shareholders' equity (including discontinued operations) as included in the
Consolidated Financial Statements prepared in accordance with GAAP.
9
<Page>
(Preliminary)
American Express Company
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Card billed business (A):
United States $101.7 $102.5 $ 92.9 $ 96.9 $ 89.6
Outside the United States 38.6 38.0 34.3 35.7 32.1
------ ------ ------ ------ ------
Total $140.3 $140.5 $127.2 $132.6 $121.7
====== ====== ====== ====== ======
Total cards-in-force (millions) (A):
United States 46.8 45.4 44.0 43.0 42.0
Outside the United States 29.7 29.0 28.5 28.0 27.0
------ ------ ------ ------ ------
Total 76.5 74.4 72.5 71.0 69.0
====== ====== ====== ====== ======
Basic cards-in-force (millions) (A):
United States 36.0 34.8 33.7 32.8 31.9
Outside the United States 25.2 24.1 23.6 23.2 22.4
------ ------ ------ ------ ------
Total 61.2 58.9 57.3 56.0 54.3
====== ====== ====== ====== ======
Average discount rate (B) 2.57% 2.57% 2.58% 2.55% 2.58%
Average quarterly basic cardmember spending (dollars) (A) $2,770 $2,821 $2,612 $2,778 $2,610
Average fee per card (dollars) (A) (C) $ 34 $ 34 $ 34 $ 35 $ 35
Travel sales $ 5.1 $ 5.9 $ 5.3 $ 5.2 $ 4.8
Travel commissions and fees/sales 8.4% 8.2% 7.9% 8.4% 8.7%
Worldwide Travelers Cheque and prepaid products:
Sales $ 5.6 $ 5.1 $ 4.2 $ 4.8 $ 5.8
Average outstanding $ 7.2 $ 7.0 $ 6.9 $ 6.9 $ 7.3
Average investments $ 7.9 $ 7.6 $ 7.7 $ 7.6 $ 7.9
Investment yield (D) 4.9% 5.0% 5.0% 5.1% 5.1%
Tax equivalent yield - managed (D) 7.5% 7.7% 7.7% 7.9% 7.8%
International banking:
Total loans $ 7.2 $ 7.2 $ 7.2 $ 7.1 $ 6.9
Private banking holdings $ 22.0 $ 21.2 $ 20.8 $ 20.3 $ 20.2
</Table>
(A) Card billed business includes activities (including cash advances)
related to proprietary cards, cards issued under network partnership
agreements and certain insurance fees charged on proprietary cards.
Cards-in-force include 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 as follows: Discount Revenue from all card spending (proprietary
and Global Network Services) at merchants divided by all billed business
(proprietary and Global Network Services) generating discount revenue at
such merchants. Only merchants acquired by the Company are included in
the computation.
(C) Average fees per card are computed based on net card fees excluding the
amortization of deferred acquisition costs.
(D) Investment yield represents earnings on certain tax-exempt securities.
The tax equivalent yield - managed represents earnings on such tax-exempt
securities as if it had been earned on a taxable basis and assumes an
income tax-rate of 35 percent.
10
<Page>
(Preliminary)
American Express Company
Selected Statistical Information (continued)
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Worldwide cardmember receivables:
Total receivables $ 35.0 $ 34.7 $ 33.2 $ 34.2 $ 31.9
90 days past due as a % of total 1.8% 1.8% 1.8% 1.6% 1.7%
Loss reserves (millions): $ 947 $ 948 $ 978 $ 942 $ 909
% of receivables 2.7% 2.7% 2.9% 2.8% 2.9%
% of 90 days past due 149% 150% 163% 177% 173%
Net loss ratio as a % of charge volume 0.26% 0.24% 0.19% 0.29% 0.27%
Worldwide cardmember lending - owned basis (A):
Total loans $ 38.3 $ 36.3 $ 32.7 $ 33.1 $ 29.9
30 days past due loans as a % of total 2.8% 2.7% 2.6% 2.5% 2.5%
Loss reserves (millions):
Beginning balance $1,086 $1,053 $ 996 $ 952 $ 888
Provision 381 376 299 374 325
Net write-offs (353) (331) (270) (323) (280)
Other 12 (12) 28 (7) 19
------ ------ ------ ------ ------
Ending balance $1,126 $1,086 $1,053 $ 996 $ 952
====== ====== ====== ====== ======
% of loans 2.9% 3.0% 3.2% 3.0% 3.2%
% of past due 106% 113% 123% 122% 128%
Average loans $ 37.5 $ 35.2 $ 32.4 $ 31.0 $ 28.3
Net write-off rate 3.8% 3.8% 3.3% 4.2% 4.0%
Net finance charge revenue(B)/average loans 9.6% 9.6% 8.9% 9.0% 9.2%
Worldwide cardmember lending - managed basis (C):
Total loans $ 58.5 $ 56.5 $ 53.5 $ 54.3 $ 50.6
30 days past due loans as a % of total 2.7% 2.5% 2.5% 2.4% 2.4%
Loss reserves (millions):
Beginning balance $1,546 $1,554 $1,469 $1,401 $1,367
Provision 512 478 393 671 510
Net write-offs (498) (474) (404) (596) (494)
Other 11 (12) 96 (7) 18
------ ------ ------ ------ ------
Ending balance $1,571 $1,546 $1,554 $1,469 $1,401
====== ====== ====== ====== ======
% of loans 2.7% 2.7% 2.9% 2.7% 2.8%
% of past due 101% 110% 116% 114% 114%
Average loans $ 57.6 $ 55.3 $ 53.7 $ 51.9 $ 49.6
Net write-off rate 3.5% 3.4% 3.0% 4.6% 4.0%
Net finance charge revenue(B)/average loans 9.6% 9.5% 9.1% 9.4% 9.4%
</Table>
(A) "Owned" or GAAP basis measurement reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(B) Computed on an annualized basis.
(C) Includes on-balance sheet cardmember loans and off-balance sheet
securitized cardmember loans. The difference between the "owned basis"
(GAAP) information and "managed basis" information is attributable to the
effects of securitization activities. Refer to the information set forth
under U.S. Card Services Selected Financial Information on page 19 for
further discussion of the managed basis presentation.
11
<Page>
(Preliminary)
U.S. Card Services
Selected Income Statement Data
(Millions)
<Table>
<Caption>
QUARTERS ENDED
SEPTEMBER 30,
--------------- PERCENTAGE
2006 2005 INC/(DEC)
------ ------ ----------
Net revenues:
Discount revenue, net card fees and other $2,482 $2,233 11%
Cardmember lending:
Finance charge revenue 928 614 51
Interest expense 260 156 67
------ ------
Net finance charge revenue 668 458 46
Securitization income, net 384 353 9
------ ------
Total net revenues 3,534 3,044 16
------ ------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,127 1,003 12
Provision for losses 446 458 (3)
Human resources and other operating expenses 1,142 950 20
------ ------
Total expenses 2,715 2,411 13
------ ------
Pretax segment income 819 633 29
Income tax provision 239 190 26
------ ------
Segment income $ 580 $ 443 31
====== ======
</Table>
12
<Page>
(Preliminary)
U.S. Card Services
Selected Financial Information
Managed Basis Presentation
(Millions)
<Table>
<Caption>
QUARTERS ENDED
SEPTEMBER 30,
------------------ PERCENTAGE
2006 2005 INC/(DEC)
-------- ------- ----------
Income Statement Data
Discount revenue, net card fees and other
Reported for the period (GAAP) $ 2,482 $ 2,233 11%
Securitization adjustments 51 53 (4)
Tax adjustments 55 56 (2)
-------- -------
Managed discount revenue, net card fees and other $ 2,588 $ 2,342 11
-------- -------
Net finance charge revenue
Reported for the period (GAAP) $ 668 $ 458 46
Securitization adjustments 475 512 (7)
-------- -------
Managed finance charge revenue $ 1,143 $ 970 18
-------- -------
Securitization income, net
Reported for the period (GAAP) $ 384 $ 353 9
Securitization adjustments (384) (353) 9
-------- -------
Managed securitization income, net $ -- $ -- --
-------- -------
Provision for losses
Reported for the period (GAAP) $ 446 $ 458 (3)
Securitization adjustments 144 215 (33)
-------- -------
Managed provision for losses $ 590 $ 673 (12)
-------- -------
</Table>
For U.S. Card Services, the managed basis presentation reflects an increase to
interest income recorded to enable management to evaluate tax exempt investments
on a basis consistent with taxable investment securities. On a GAAP basis,
interest income associated with tax exempt investments is recorded based on
amounts earned. Accordingly, information presented on a managed basis assumes
that tax exempt securities earned income at rates as if the securities produced
taxable income with a corresponding increase in the provision for income taxes.
The managed basis presentation also assumes that there have been no off balance
sheet securitization transactions, i.e., all securitized cardmember loans and
related income effects are reflected as if they were in the Company's balance
sheets and income statements, respectively. For the managed basis income
statement presentation, revenue and expenses related to securitized cardmember
loans are reflected in net card fees and other, net finance charge revenue, and
credit provision. On a managed basis, there is no securitization income, net, as
the managed basis presentation assumes no securitization transactions have
occurred.
The Company presents U.S. Card Services information on a managed basis because
that is the way the Company's management views and manages the business.
Management believes that a full picture of trends in the Company's cardmember
lending business can only be derived by evaluating the performance of both
securitized and non-securitized cardmember loans. Management also believes that
use of a managed basis presentation presents a more accurate picture of the key
dynamics of the cardmember lending business. Irrespective of the on and off
balance sheet funding mix, it is important for management and investors to see
metrics for the entire cardmember lending portfolio because they are more
representative of the economics of the aggregate cardmember relationships and
ongoing business performance and trends over time. It is also important for
investors to see the overall growth of cardmember loans and related revenue in
order to evaluate market share. These metrics are significant in evaluating the
Company's performance and can only be properly assessed when all non-securitized
and securitized cardemember loans are viewed together on a managed basis. The
Company does not currently securitize international loans.
13
<Page>
(Preliminary)
U.S. Card Services
Selected Financial Information
Managed Basis Presentation (continued)
(Millions)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Income Statement Data
Discount revenue, net card fees and other
Reported for the period (GAAP) $ 2,482 $ 2,514 $ 2,314 $ 2,401 $ 2,233
Securitization adjustments 51 44 48 53 53
Tax adjustments 55 54 55 56 56
------- ------- ------- ------- -------
Managed discount revenue, net card fees and other $ 2,588 $ 2,612 $ 2,417 $ 2,510 $ 2,342
------- ------- ------- ------- -------
Net finance charge revenue
Reported for the period (GAAP) $ 668 $ 599 $ 480 $ 485 $ 458
Securitization adjustments 475 469 486 518 512
------- ------- ------- ------- -------
Managed finance charge revenue $ 1,143 $ 1,068 $ 966 $ 1,003 $ 970
------- ------- ------- ------- -------
Securitization income, net
Reported for the period (GAAP) $ 384 $ 372 $ 386 $ 295 $ 353
Securitization adjustments (384) (372) (386) (295) (353)
------- ------- ------- ------- -------
Managed securitization income, net $ -- $ -- $ -- $ -- $ --
------- ------- ------- ------- -------
Provision for losses
Reported for the period (GAAP) $ 446 $ 351 $ 307 $ 509 $ 458
Securitization adjustments 144 127 126 287 215
------- ------- ------- ------- -------
Managed provision for losses $ 590 $ 478 $ 433 $ 796 $ 673
------- ------- ------- ------- -------
</Table>
See prior page for discussion of managed basis presentation.
14
<Page>
(Preliminary)
U.S. Card Services
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
SEPTEMBER 30,
--------------- PERCENTAGE
2006 2005 INC/(DEC)
------ ------ ----------
Card billed business $ 83.4 $ 74.2 12%
Total cards-in-force (millions) 39.9 36.9 8
Basic cards-in-force (millions) 29.5 27.2 8
Average quarterly basic cardmember spending (dollars) $2,852 $2,765 3%
U.S. Consumer Travel
Travel sales (millions) $ 577 $ 464 24%
Travel commissions and fees/sales 8.5% 8.6%
Worldwide Travelers Cheque and prepaid products:
Sales $ 5.6 $ 5.8 (3)%
Average outstanding $ 7.2 $ 7.3 (1)%
Average investments $ 7.9 $ 7.9 --%
Investment yield (A) 4.9% 5.1%
Tax equivalent yield - managed (A) 7.5% 7.8%
Total segment assets $ 75.1 $ 61.6 22%
Segment capital $ 4.9 $ 4.9 --%
Return on segment capital (B) 44.0% 39.7%
Cardmember receivables:
Total receivables $ 18.2 $ 16.8 8%
90 days past due as a % of total 2.3% 2.0%
Net loss ratio as a % of charge volume 0.33% 0.30%
Cardmember lending - owned basis (C):
Total loans $ 29.3 $ 22.4 31%
30 days past due loans as a % of total 2.7% 2.4%
Average loans $ 28.6 $ 20.9 37%
Net write-off rate 3.1% 3.6%
Net finance charge revenue(D)/average loans 9.2% 8.7%
Cardmember lending - managed basis (E):
Total loans $ 49.5 $ 43.0 15%
30 days past due loans as a % of total 2.6% 2.4%
Average loans $ 48.7 $ 42.3 15%
Net write-off rate 3.0% 3.8%
Net finance charge revenue(D)/average loans 9.3% 9.2%
</Table>
(A) Investment yield represents earnings on certain tax-exempt securities.
The tax equivalent yield - managed represents earnings on such tax-exempt
securities as if it had been earned on a taxable basis and assumes an
income tax-rate of 35 percent.
(B) Computed on a trailing 12-month basis using segment income and equity
capital allocated to segments based upon specific business operational
needs, risk measures and regulatory capital requirements.
(C) "Owned" or GAAP basis measurement reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(D) Computed on an annualized basis.
(E) Includes on-balance sheet cardmember loans and off-balance sheet
securitized cardmember loans. The difference between the "owned basis"
(GAAP) information and "managed basis" information is attributable to the
effects of securitization activities. Refer to the information set forth
under U.S. Card Services Selected Financial Information on page 19 for
further discussion of the managed basis presentation.
15
<Page>
(Preliminary)
U.S. Card Services
Selected Income Statement Data
(Millions)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Net revenues:
Discount revenue, net card fees and other $2,482 $2,514 $2,314 $2,401 $2,233
Cardmember lending:
Finance charge revenue 928 814 674 685 614
Interest expense 260 215 194 200 156
------ ------ ------ ------ ------
Net finance charge revenue 668 599 480 485 458
Securitization income, net 384 372 386 295 353
------ ------ ------ ------ ------
Total net revenues 3,534 3,485 3,180 3,181 3,044
------ ------ ------ ------ ------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,127 1,106 1,034 1,097 1,003
Provision for losses 446 351 307 509 458
Human resources and other operating expenses 1,142 1,108 1,043 1,037 950
------ ------ ------ ------ ------
Total expenses 2,715 2,565 2,384 2,643 2,411
------ ------ ------ ------ ------
Pretax segment income 819 920 796 538 633
Income tax provision 239 304 250 124 190
------ ------ ------ ------ ------
Segment income $ 580 $ 616 $ 546 $ 414 $ 443
====== ====== ====== ====== ======
</Table>
16
<Page>
(Preliminary)
U.S. Card Services
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Card billed business $ 83.4 $ 83.9 $ 75.3 $ 80.8 $ 74.2
Total cards-in-force (millions) 39.9 39.1 38.3 37.5 36.9
Basic cards-in-force (millions) 29.5 28.9 28.4 27.7 27.2
Average quarterly basic cardmember spending (dollars) $2,852 $2,925 $2,690 $2,945 $2,765
U.S. Consumer Travel
Travel sales $ 0.6 $ 0.7 $ 0.5 $ 0.5 $ 0.5
Travel commissions and fees/sales 8.5% 8.5% 8.1% 8.4% 8.6%
Worldwide Travelers Cheque and prepaid products:
Sales $ 5.6 $ 5.1 $ 4.2 $ 4.8 $ 5.8
Average outstanding $ 7.2 $ 7.0 $ 6.9 $ 6.9 $ 7.3
Average investments $ 7.9 $ 7.6 $ 7.7 $ 7.6 $ 7.9
Investment yield (A) 4.9% 5.0% 5.0% 5.1% 5.1%
Tax equivalent yield - managed (A) 7.5% 7.7% 7.7% 7.9% 7.8%
Total segment assets $ 75.1 $ 70.8 $ 66.6 $ 70.3 $ 61.6
Segment capital $ 4.9 $ 4.7 $ 5.0 $ 5.1 $ 4.9
Return on segment capital (B) 44.0% 41.8% 39.4% 38.9% 39.7%
Cardmember receivables:
Total receivables $ 18.2 $ 18.5 $ 17.2 $ 19.2 $ 16.8
90 days past due as a % of total 2.3% 2.3% 2.3% 1.8% 2.0%
Net loss ratio as a % of charge volume 0.33% 0.28% 0.20% 0.38% 0.30%
Cardmember lending - owned basis (C):
Total loans $ 29.3 $ 27.6 $ 24.3 $ 24.8 $ 22.4
30 days past due loans as a % of total 2.7% 2.5% 2.4% 2.3% 2.4%
Average loans $ 28.6 $ 26.4 $ 24.0 $ 23.2 $ 20.9
Net write-off rate 3.1% 2.9% 2.6% 4.1% 3.6%
Net finance charge revenue(D)/average loans 9.2% 9.1% 8.1% 8.4% 8.7%
Cardmember lending - managed basis (E):
Total loans $ 49.5 $ 47.8 $ 45.1 $ 46.0 $ 43.0
30 days past due loans as a % of total 2.6% 2.4% 2.4% 2.3% 2.4%
Average loans $ 48.7 $ 46.5 $ 45.3 $ 44.1 $ 42.3
Net write-off rate 3.0% 2.9% 2.6% 4.6% 3.8%
Net finance charge revenue(D)/average loans 9.3% 9.2% 8.7% 9.1% 9.2%
</Table>
(A) Investment yield represents earnings on certain tax-exempt securities.
The tax equivalent yield - managed represents earnings on such tax-exempt
securities as if it had been earned on a taxable basis and assumes an
income tax-rate of 35 percent.
(B) Computed on a trailing 12-month basis using segment income and equity
capital allocated to segments based upon specific business operational
needs, risk measures and regulatory capital requirements.
(C) "Owned" or GAAP basis measurement reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(D) Computed on an annualized basis.
(E) Includes on-balance sheet cardmember loans and off-balance sheet
securitized cardmember loans. The difference between the "owned basis"
(GAAP) information and "managed basis" information is attributable to the
effects of securitization activities. Refer to the information set forth
under U.S. Card Services Selected Financial Information on page 19 for
further discussion of the managed basis presentation.
17
<Page>
(Preliminary)
International Card & Global Commercial Services
Selected Income Statement Data
(Millions)
<Table>
<Caption>
QUARTERS ENDED
SEPTEMBER 30,
--------------- PERCENTAGE
2006 2005 INC/(DEC)
------ ------ ----------
Net revenues:
Discount revenue, net card fees and other $2,086 $2,041 2%
Cardmember lending:
Finance charge revenue 310 259 20
Interest expense 109 88 24
------ ------
Net finance charge revenue 201 171 18
------ ------
Total net revenues 2,287 2,212 3
------ ------
Expenses:
Marketing, promotion, rewards
and cardmember services 330 310 6
Provision for losses and benefits 329 270 22
Human resources and other operating expenses 1,347 1,315 2
------ ------
Total expenses 2,006 1,895 6
------ ------
Pretax segment income 281 317 (11)
Income tax provision 65 68 (4)
------ ------
Segment income $ 216 $ 249 (13)
====== ======
</Table>
18
<Page>
(Preliminary)
International Card & Global Commercial Services
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
SEPTEMBER 30,
--------------- PERCENTAGE
2006 2005 INC/(DEC)
------ ------ ----------
Card billed business $ 47.5 $ 41.8 14%
Total cards-in-force (millions) 22.1 22.2 --
Basic cards-in-force (millions) 17.7 17.6 1
Average quarterly basic cardmember spending (dollars) $2,642 $2,384 11%
Global Corporate & International Consumer Travel
Travel sales $ 4.5 $ 4.4 2%
Travel commissions and fees/sales 8.3% 8.6%
International banking:
Total loans $ 7.2 $ 6.9 4%
Private banking holdings $ 22.0 $ 20.2 9%
Total segment assets $ 57.3 $ 49.9 15%
Segment capital $ 4.4 $ 3.8 16%
Return on segment capital (A) 21.2% 22.3%
Cardmember receivables:
Total receivables $ 16.4 $ 15.2 8%
90 days past due as a % of total 1.3% 1.2%
Net loss ratio as a % of charge volume 0.18% 0.24%
Cardmember lending:
Total loans $ 9.0 $ 7.5 20%
30 days past due loans as a % of total 3.1% 2.8%
Average loans $ 8.9 $ 7.3 22%
Net write-off rate 5.9% 5.0%
Net finance charge revenue(B)/average loans 8.9% 9.3%
</Table>
(A) Computed on a trailing 12-month basis using segment income and equity
capital allocated to segments based upon specific business operational
needs, risk measures and regulatory capital requirements.
(B) Computed on an annualized basis.
19
<Page>
(Preliminary)
International Card & Global Commercial Services
Selected Income Statement Data
(Millions)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Net revenues:
Discount revenue, net card fees and other $2,086 $2,241 $2,109 $2,115 $2,041
Cardmember lending:
Finance charge revenue 310 308 293 278 259
Interest expense 109 108 99 94 88
------ ------ ------ ------ ------
Net finance charge revenue 201 200 194 184 171
------ ------ ------ ------ ------
Total net revenues 2,287 2,441 2,303 2,299 2,212
------ ------ ------ ------ ------
Expenses:
Marketing, promotion, rewards
and cardmember services 330 410 343 321 310
Provision for losses and benefits 329 364 349 286 270
Human resources and other operating expenses 1,347 1,373 1,300 1,402 1,315
------ ------ ------ ------ ------
Total expenses 2,006 2,147 1,992 2,009 1,895
------ ------ ------ ------ ------
Pretax segment income 281 294 311 290 317
Income tax provision 65 69 98 57 68
------ ------ ------ ------ ------
Segment income $ 216 $ 225 $ 213 $ 233 $ 249
====== ====== ====== ====== ======
</Table>
20
<Page>
(Preliminary)
International Card & Global Commercial Services
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Card billed business $ 47.5 $ 49.2 $ 45.2 $ 45.1 $ 41.8
Total cards-in-force (millions) 22.1 22.2 23.2 22.7 22.2
Basic cards-in-force (millions) 17.7 17.8 18.4 18.0 17.6
Average quarterly basic cardmember spending (dollars) $2,642 $2,654 $2,494 $2,534 $2,384
Global Corporate & International Consumer Travel
Travel sales $ 4.5 $ 5.2 $ 4.8 $ 4.7 $ 4.4
Travel commissions and fees/sales 8.3% 8.1% 7.8% 8.4% 8.6%
International banking:
Total loans $ 7.2 $ 7.2 $ 7.2 $ 7.1 $ 6.9
Private banking holdings $ 22.0 $ 21.2 $ 20.8 $ 20.3 $ 20.2
Total segment assets $ 57.3 $ 55.3 $ 53.0 $ 51.7 $ 49.9
Segment capital $ 4.4 $ 4.3 $ 4.3 $ 4.1 $ 3.8
Return on segment capital (A) 21.2% 22.6% 23.2% 23.2% 22.3%
Cardmember receivables:
Total receivables $ 16.4 $ 15.8 $ 15.6 $ 14.5 $ 15.2
90 days past due as a % of total 1.3% 1.3% 1.3% 1.3% 1.2%
Net loss ratio as a % of charge volume 0.18% 0.18% 0.17% 0.18% 0.24%
Cardmember lending:
Total loans $ 9.0 $ 8.7 $ 8.4 $ 8.3 $ 7.5
30 days past due loans as a % of total 3.1% 3.2% 3.2% 2.8% 2.8%
Average loans $ 8.9 $ 8.8 $ 8.4 $ 7.8 $ 7.3
Net write-off rate 5.9% 6.4% 5.5% 4.4% 5.0%
Net finance charge revenue(B)/average loans 8.9% 9.1% 9.4% 9.4% 9.3%
</Table>
(A) Computed on a trailing 12-month basis using segment income and equity
capital allocated to segments based upon specific business operational
needs, risk measures and regulatory capital requirements.
(B) Computed on an annualized basis.
21
<Page>
(Preliminary)
Global Network & Merchant Services
Selected Income Statement Data
(Millions)
QUARTERS ENDED
SEPTEMBER 30,
-------------- PERCENTAGE
2006 2005 INC/(DEC)
---- ---- ----------
Net revenues:
Discount revenue, fees and other $798 $693 15%
---- ----
Expenses:
Marketing and promotion 118 167 (29)
Provision for losses 19 19 --
Human resources and other operating expenses 347 293 18
---- ----
Total expenses 484 479 1
---- ----
Pretax segment income 314 214 47
Income tax provision 102 73 40
---- ----
Segment income $212 $141 50
==== ====
22
<Page>
(Preliminary)
Global Network & Merchant Services
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
SEPTEMBER 30,
---------------- PERCENTAGE
2006 2005 INC/(DEC)
------- ------ ----------
Global Card billed business (A) $140.3 $121.7 15%
Global Network & Merchant Services:
Total segment assets $ 5.1 $ 4.5 13%
Segment capital (millions) $1,262 $1,227 3%
Return on segment capital (B) 57.9% 49.4%
Global Network Services:
Card billed business $ 9.7 $ 6.0 62%
Total cards-in-force (millions) 14.5 9.9 46%
</Table>
(A) Global Card billed business includes activities (including cash advances)
related to proprietary cards, cards issued under network partnership
agreements, and certain insurance fees charged on proprietary cards.
(B) Computed on a trailing 12-month basis using segment income and equity
capital allocated to segments based upon specific business operational
needs, risk measures and regulatory capital requirements.
23
<Page>
(Preliminary)
Global Network & Merchant Services
Selected Income Statement Data
(Millions)
<Table>
<Caption>
QUARTERS ENDED
-------------------------------------------------------------------
September 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- -------- --------- ------------ -------------
Net revenues:
Discount revenue, fees and other $798 $789 $705 $725 $693
---- ---- ---- ---- ----
Expenses:
Marketing and promotion 118 140 135 141 167
Provision for losses 19 14 10 13 19
Human resources and other operating expenses 347 320 298 319 293
---- ---- ---- ---- ----
Total expenses 484 474 443 473 479
---- ---- ---- ---- ----
Pretax segment income 314 315 262 252 214
Income tax provision 102 115 96 86 73
---- ---- ---- ---- ----
Segment income $212 $200 $166 $166 $141
==== ==== ==== ==== ====
</Table>
24
<Page>
(Preliminary)
Global Network & Merchant Services
Selected Statistical Information
(Billions, except percentages and where indicated)
<Table>
<Caption>
QUARTERS ENDED
--------------------------------------------------------------------
September 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30,
2006 2006 2006 2005 2005
------------- --------- --------- ------------ -------------
Global Card billed business (A) $140.3 $140.5 $127.2 $132.6 $121.7
Global Network & Merchant Services:
Total segment assets $ 5.1 $ 6.2 $ 5.7 $ 4.5 $ 4.5
Segment capital $ 1.3 $ 1.3 $ 1.3 $ 1.3 $ 1.2
Return on segment capital (B) 57.9% 53.8% 51.7% 49.2% 49.4%
Global Network Services:
Card billed business $ 9.7 $ 7.6 $ 6.6 $ 6.9 $ 6.0
Total cards-in-force (millions) 14.5 13.1 11.0 10.8 9.9
</Table>
(A) Global Card billed business includes activities (including cash advances)
related to proprietary cards, cards issued under network partnership
agreements, and certain insurance fees charged on proprietary cards.
(B) Computed on a trailing 12-month basis using segment income and equity
capital allocated to segments based upon specific business operational
needs, risk measures and regulatory capital requirements.
25