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. For additional information related to the impact of
changes to the Company's financial reporting, including the Company's
organizational changes that became effective July 1, 2007, refer to the
Company's Form 8-Ks filed with the Securities and Exchange Commission, dated
November 1, 2007 and March 30, 2007.
(Preliminary)
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
---------------- Percentage ----------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------- ------ ---------- ------- ------- ----------
Revenues
Discount revenue $ 3,912 $3,458 13% $14,596 $12,978 12%
Net card fees 544 479 14 2,050 1,994 3
Travel commissions and fees 514 450 14 1,926 1,778 8
Other commissions and fees 650 573 13 2,417 2,233 8
Securitization income, net 326 347 (6) 1,507 1,489 1
Other 470 528 (11) 1,645 1,689 (3)
------- ------ ------- -------
Total 6,416 5,835 10 24,141 22,161 9
------- ------ ------- -------
Interest income
Cardmember lending finance revenue 1,682 1,326 27 6,145 4,586 34
Other 302 287 5 1,271 1,147 11
------- ------ ------- -------
Total 1,984 1,613 23 7,416 5,733 29
------- ------ ------- -------
Total revenues 8,400 7,448 13 31,557 27,894 13
------- ------ ------- -------
Interest expense
Cardmember lending 474 351 35 1,734 1,192 45
Charge card and other 562 422 33 2,092 1,548 35
------- ------ ------- -------
Total 1,036 773 34 3,826 2,740 40
------- ------ ------- -------
Revenues net of interest expense 7,364 6,675 10 27,731 25,154 10
------- ------ ------- -------
Expenses
Marketing, promotion, rewards
and cardmember services 2,719 1,732 57 7,817 6,504 20
Human resources 1,437 1,361 6 5,438 5,040 8
Professional services 646 648 -- 2,283 2,269 1
Occupancy and equipment 382 372 3 1,436 1,384 4
Communications 119 112 6 461 434 6
Other, net (591) 365 # 389 1,358 (71)
------- ------ ------- -------
Total 4,712 4,590 3 17,824 16,989 5
------- ------ ------- -------
Provisions for losses and benefits
Charge card 419 277 51 1,140 935 22
Cardmember lending 970 484 # 2,761 1,623 70
Other (including investment certificates) 134 137 (2) 440 468 (6)
------- ------ ------- -------
Total 1,523 898 70 4,341 3,026 43
------- ------ ------- -------
Pretax income from continuing operations 1,129 1,187 (5) 5,566 5,139 8
Income tax provision 290 292 (1) 1,518 1,528 (1)
------- ------ ------- -------
Income from continuing operations 839 895 (6) 4,048 3,611 12
(Loss) Income from discontinued operations, net of tax (8) 27 # (36) 96 #
------- ------ ------- -------
Net income $ 831 $ 922 (10) $ 4,012 $ 3,707 8
======= ====== ======= =======
</Table>
# - Denotes a variance of more than 100%.
-1-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Billions)
December 31, December 31,
2007 2006
------------ ------------
Assets
Cash and cash equivalents $ 12 $ 5
Accounts receivable 42 39
Investments 16 18
Loans 53 43
Other assets 10 9
Assets of discontinued operations 17 14
---- ----
Total assets $150 $128
==== ====
Liabilities and Shareholders' Equity
Short-term debt $ 18 $ 15
Long-term debt 55 43
Other liabilities 50 45
Liabilities of discontinued operations 16 14
---- ----
Total liabilities 139 117
---- ----
Shareholders' equity 11 11
---- ----
Total liabilities and shareholders' equity $150 $128
==== ====
-2-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Millions)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage ----------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------- ------- ----------
REVENUES NET OF INTEREST EXPENSE
U.S. Card Services $3,709 $3,349 11% $14,222 $12,620 13%
International Card Services 1,189 1,026 16 4,331 3,965 9
Global Commercial Services 1,128 982 15 4,269 3,900 9
Global Network & Merchant Services 1,041 916 14 3,864 3,344 16
------ ------ ------- -------
7,067 6,273 13 26,686 23,829 12
Corporate & Other,
including adjustments and eliminations 297 402 (26) 1,045 1,325 (21)
------ ------ ------- -------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE $7,364 $6,675 10 $27,731 $25,154 10
====== ====== ======= =======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
U.S. Card Services $ (40) $ 723 # $ 2,730 $ 3,323 (18)
International Card Services (181) 76 # 117 312 (63)
Global Commercial Services 144 167 (14) 744 716 4
Global Network & Merchant Services 379 297 28 1,560 1,188 31
------ ------ ------- -------
302 1,263 (76) 5,151 5,539 (7)
Corporate & Other 827 (76) # 415 (400) #
------ ------ ------- -------
PRETAX INCOME FROM CONTINUING OPERATIONS $1,129 $1,187 (5) $ 5,566 $ 5,139 8
====== ====== ======= =======
NET INCOME (LOSS)
U.S. Card Services $ 7 $ 473 (99) $ 1,823 $ 2,152 (15)
International Card Services (68) 99 # 291 343 (15)
Global Commercial Services 110 117 (6) 536 477 12
Global Network & Merchant Services 254 201 26 1,022 779 31
------ ------ ------- -------
303 890 (66) 3,672 3,751 (2)
Corporate & Other 536 5 # 376 (140) #
------ ------ ------- -------
Income from continuing operations 839 895 (6) 4,048 3,611 12
(Loss) Income from discontinued operations,
net of tax (8) 27 # (36) 96 #
------ ------ ------- -------
NET INCOME $ 831 $ 922 (10) $ 4,012 $ 3,707 8
====== ====== ======= =======
</Table>
# - Denotes a variance of more than 100%.
-3-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage --------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------ ------ ----------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.72 $ 0.75 (4)% $ 3.45 $ 2.98 16%
(Loss) Income from discontinued operations -- 0.02 # (0.03) 0.08 #
------ ------ ------ ------
Net income $ 0.72 $ 0.77 (6)% $ 3.42 $ 3.06 12%
====== ====== ====== ======
Average common shares outstanding (millions) 1,157 1,196 (3)% 1,173 1,212 (3)%
====== ====== ====== ======
DILUTED
Income from continuing operations $ 0.71 $ 0.73 (3)% $ 3.39 $ 2.92 16%
(Loss) Income from discontinued operations -- 0.02 # (0.03) 0.07 #
------ ------ ------ ------
Net income $ 0.71 $ 0.75 (5)% $ 3.36 $ 2.99 12%
====== ====== ====== ======
Average common shares outstanding (millions) 1,178 1,224 (4)% 1,196 1,238 (3)%
====== ====== ====== ======
Cash dividends declared per common share $ 0.18 $ 0.15 20% $ 0.63 $ 0.57 11%
====== ====== ====== ======
</Table>
SELECTED STATISTICAL INFORMATION
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage --------------- Percentage
2007 2006 Inc/Dec) 2007 2006 Inc/Dec)
------ ------ ---------- ------ ------ ----------
Return on average equity (A) 37.3% 34.7% 37.3% 34.7%
Common shares outstanding (millions) 1,158 1,199 (3)% 1,158 1,199 (3)%
Book value per common share $ 9.53 $ 8.76 9% $ 9.53 $ 8.76 9%
Shareholders' equity (billions) $ 11.0 $ 10.5 5% $ 11.0 $ 10.5 5%
</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 Years Ended
December 31, December 31,
--------------- Percentage ----------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------- ------- ----------
Card billed business (A):
United States $123.0 $109.7 12% $ 459.3 $ 406.8 13%
Outside the United States 54.5 43.8 24 188.0 154.7 22
------ ------ ------- -------
Total $177.5 $153.5 16 $ 647.3 $ 561.5 15
====== ====== ======= =======
Total cards-in-force (millions) (B):
United States 52.3 48.1 9% 52.3 48.1 9%
Outside the United States 34.1 29.9 14 34.1 29.9 14
------ ------ ------- -------
Total 86.4 78.0 11 86.4 78.0 11
====== ====== ======= =======
Basic cards-in-force (millions) (B):
United States 40.9 37.1 10% 40.9 37.1 10%
Outside the United States 29.2 25.4 15 29.2 25.4 15
------ ------ ------- -------
Total 70.1 62.5 12 70.1 62.5 12
====== ====== ======= =======
Average discount rate (C) 2.54% 2.55% 2.56% 2.57%
Average basic cardmember spending (dollars) (D) $3,228 $2,985 8% $12,106 $11,201 8%
Average fee per card (dollars) (D) $ 33 $ 31 6% $ 32 $ 32 -%
</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.
(B) Total cards-in-force represents the number of cards that are issued and
outstanding. Proprietary basic consumer cards-in-force includes basic cards
issued to the primary account owner and does not include additional
supplemental cards issued on that account. Proprietary basic small business
and corporate cards-in-force include basic and supplemental cards issued to
employee cardmembers. Non-proprietary basic cards-in-force includes all cards
that are issued and outstanding under network partnership agreements.
(C) This calculation is designed to approximate merchant pricing. It represents
the percentage of billed business (both proprietary and Global Network Services)
retained by the Company from merchants it acquires, prior to payments to third
parties unrelated to merchant acceptance.
(D) Average basic cardmember spending and average fee per card are computed
from proprietary card activities only. Average fee per card is computed based
on net card fees, including the amortization of deferred direct acquisition
costs (which beginning prospectively as of July 1, 2006, was reclassified from
other expense to a reduction in net card fees), divided by average worldwide
proprietary cards-in-force. The adjusted average fee per card is computed in
the same manner, but excludes amortization of deferred direct acquisition
costs. The adjusted average fee per card was $37 for the quarter and $36 for
the year ended December 31, 2007, and $35 for the quarter and year ended
December 31, 2006, and the amount of amortization excluded for these periods
was $74 million for the quarter and $288 million for the year ended December
31, 2007, and $75 million for the quarter and $147 million for the year ended
December 31, 2006. The Company presents adjusted average fee per card because
management believes that this metric presents a better picture of card fee
pricing across a range of its proprietary card products.
-5-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
SELECTED STATISTICAL INFORMATION (CONTINUED)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- -----------------
Percentage Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------- ------- ----------
Worldwide cardmember receivables:
Total receivables $ 40.1 $ 37.4 7% $ 40.1 $ 37.4 7%
90 days past due as a % of total 3.0% 2.8% 3.0% 2.8%
Loss reserves (millions): $1,149 $ 981 17% $ 1,149 $ 981 17%
% of receivables 2.9% 2.6% 2.9% 2.6%
% of 90 days past due 95% 95% 95% 95%
Net loss ratio as a % of charge volume 0.25% 0.26% 0.24% 0.24%
Worldwide cardmember lending - owned basis (A):
Total loans $ 54.5 $ 43.3 26% $ 54.5 $ 43.3 26%
30 days past due loans as a % of total 3.4% 2.7% 3.4% 2.7%
Loss reserves (millions):
Beginning balance $1,469 $1,126 30% $ 1,171 $ 996 18%
Provision 924 451 # 2,615 1,507 74
Net write offs (579) (405) 43 (1,990) (1,359) 46
Other 17 (1) # 35 27 30
------ ------ ------- -------
Ending balance $1,831 $1,171 56 $ 1,831 $ 1,171 56
====== ====== ======= =======
% of loans 3.4% 2.7% 3.4% 2.7%
% of past due 100% 98% 100% 98%
Average loans $ 51.7 $ 40.2 29% $ 47.2 $ 36.5 29%
Net write-off rate 4.5% 4.0% 4.2% 3.7%
Net finance revenue(B)/average loans 9.3% 9.6% 9.4% 9.3%
Worldwide cardmember lending - managed basis (C):
Total loans $ 77.2 $ 63.5 22% $ 77.2 $ 63.5 22%
30 days past due loans as a % of total 3.2% 2.6% 3.2% 2.6%
Loss reserves (millions):
Beginning balance $1,991 $1,571 27% $ 1,622 $ 1,469 10%
Provision 1,387 608 # 3,726 1,991 87
Net write offs (813) (557) 46 (2,799) (1,933) 45
Other 16 -- # 32 95 (66)
------ ------ ------- -------
Ending balance $2,581 $1,622 59 $ 2,581 $ 1,622 59
====== ====== ======= =======
% of loans 3.3% 2.6% 3.3% 2.6%
% of past due 106% 97% 106% 97%
Average loans $ 74.1 $ 60.4 23% $ 68.3 $ 56.9 20%
Net write-off rate 4.4% 3.7% 4.1% 3.4%
Net finance revenue(B)/average loans 9.4% 9.4% 9.4% 9.3%
</Table>
# - Denotes a variance of more than 100%.
(A) "Owned," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(B) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is 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 20 for further discussion of
the managed basis presentation.
-6-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Revenues
Discount revenue $3,912 $3,659 $3,670 $3,355 $3,458
Net card fees 544 522 500 484 479
Travel commissions and fees 514 484 491 437 450
Other commissions and fees 650 644 587 536 573
Securitization income, net 326 392 332 457 347
Other 470 362 426 387 528
------ ------ ------ ------ ------
Total 6,416 6,063 6,006 5,656 5,835
------ ------ ------ ------ ------
Interest income
Cardmember lending finance revenue 1,682 1,581 1,514 1,368 1,326
Other 302 309 357 303 287
------ ------ ------ ------ ------
Total 1,984 1,890 1,871 1,671 1,613
------ ------ ------ ------ ------
Total revenues 8,400 7,953 7,877 7,327 7,448
------ ------ ------ ------ ------
Interest expense
Cardmember lending 474 444 431 385 351
Charge card and other 562 564 508 458 422
------ ------ ------ ------ ------
Total 1,036 1,008 939 843 773
------ ------ ------ ------ ------
Revenues net of interest expense 7,364 6,945 6,938 6,484 6,675
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 2,719 1,810 1,826 1,462 1,732
Human resources 1,437 1,366 1,334 1,301 1,361
Professional services 646 539 580 518 648
Occupancy and equipment 382 374 352 328 372
Communications 119 118 112 112 112
Other, net (591) 339 348 293 365
------ ------ ------ ------ ------
Total 4,712 4,546 4,552 4,014 4,590
------ ------ ------ ------ ------
Provisions for losses and benefits
Charge card 419 279 233 209 277
Cardmember lending 970 579 638 574 484
Other (including investment certificates) 134 124 106 76 137
------ ------ ------ ------ ------
Total 1,523 982 977 859 898
------ ------ ------ ------ ------
Pretax income from continuing operations 1,129 1,417 1,409 1,611 1,187
Income tax provision 290 343 369 516 292
------ ------ ------ ------ ------
Income from continuing operations 839 1,074 1,040 1,095 895
(Loss) Income from discontinued operations, net of tax (8) (7) 17 (38) 27
------ ------ ------ ------ ------
Net income $ 831 $1,067 $1,057 $1,057 $ 922
====== ====== ====== ====== ======
</Table>
-7-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
REVENUES NET OF INTEREST EXPENSE
U.S. Card Services $3,709 $3,589 $3,560 $ 3,364 $3,349
International Card Services 1,189 1,114 1,049 979 1,026
Global Commercial Services 1,128 1,064 1,083 994 982
Global Network & Merchant Services 1,041 980 966 877 916
------ ------ ------ ------- ------
7,067 6,747 6,658 6,214 6,273
Corporate & Other,
including adjustments and eliminations 297 198 280 270 402
------ ------ ------ ------- ------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE $7,364 $6,945 $6,938 $ 6,484 $6,675
====== ====== ====== ======= ======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
U.S. Card Services $ (40) $ 912 $ 827 $ 1,031 $ 723
International Card Services (181) 110 92 96 76
Global Commercial Services 144 187 218 195 167
Global Network & Merchant Services 379 389 418 374 297
------ ------ ------ ------- ------
302 1,598 1,555 1,696 1,263
Corporate & Other 827 (181) (146) (85) (76)
------ ------ ------ ------- ------
PRETAX INCOME FROM CONTINUING OPERATIONS $1,129 $1,417 $1,409 $ 1,611 $1,187
====== ====== ====== ======= ======
NET INCOME (LOSS)
U.S. Card Services $ 7 $ 592 $ 580 $ 644 $ 473
International Card Services (68) 140 117 102 99
Global Commercial Services 110 135 162 129 117
Global Network & Merchant Services 254 266 266 236 201
------ ------ ------ ------- ------
303 1,133 1,125 1,111 890
Corporate & Other 536 (59) (85) (16) 5
------ ------ ------ ------- ------
Income from continuing operations 839 1,074 1,040 1,095 895
(Loss) Income from discontinued operations, net of tax (8) (7) 17 (38) 27
------ ------ ------ ------- ------
NET INCOME $ 831 $1,067 $1,057 $ 1,057 $ 922
====== ====== ====== ======= ======
</Table>
-8-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.72 $ 0.92 $ 0.88 $ 0.92 $ 0.75
(Loss) Income from discontinued operations -- (0.01) 0.02 (0.03) 0.02
------ ------ ------ ------ ------
Net income $ 0.72 $ 0.91 $ 0.90 $ 0.89 $ 0.77
====== ====== ====== ====== ======
Average common shares outstanding (millions) 1,157 1,170 1,179 1,187 1,196
====== ====== ====== ====== ======
DILUTED
Income from continuing operations $ 0.71 $ 0.90 $ 0.86 $ 0.90 $ 0.73
(Loss) Income from discontinued operations -- -- 0.02 (0.03) 0.02
------ ------ ------ ------ ------
Net income $ 0.71 $ 0.90 $ 0.88 $ 0.87 $ 0.75
====== ====== ====== ====== ======
Average common shares outstanding (millions) 1,178 1,192 1,203 1,210 1,224
====== ====== ====== ====== ======
Cash dividends declared per common share $ 0.18 $ 0.15 $ 0.15 $ 0.15 $ 0.15
====== ====== ====== ====== ======
</Table>
SELECTED STATISTICAL INFORMATION
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Return on average equity (A) 37.3% 38.2% 37.5% 36.6% 34.7%
Common shares outstanding (millions) 1,158 1,169 1,182 1,188 1,199
Book value per common share $ 9.53 $ 9.32 $ 9.00 $ 8.83 $ 8.76
Shareholders' equity (billions) $ 11.0 $ 10.9 $ 10.6 $ 10.5 $ 10.5
</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
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Card billed business (A):
United States $123.0 $115.2 $115.7 $105.4 $109.7
Outside the United States 54.5 47.3 45.4 40.8 43.8
------ ------ ------ ------ ------
Total $177.5 $162.5 $161.1 $146.2 $153.5
====== ====== ====== ====== ======
Total cards-in-force (millions) (B):
United States 52.3 51.7 50.5 49.3 48.1
Outside the United States 34.1 33.0 31.7 30.6 29.9
------ ------ ------ ------ ------
Total 86.4 84.7 82.2 79.9 78.0
====== ====== ====== ====== ======
Basic cards-in-force (millions) (B):
United States 40.9 40.1 39.2 38.1 37.1
Outside the United States 29.2 28.3 27.0 26.0 25.4
------ ------ ------ ------ ------
Total 70.1 68.4 66.2 64.1 62.5
====== ====== ====== ====== ======
Average discount rate (C) 2.54% 2.57% 2.57% 2.58% 2.55%
Average basic cardmember spending (dollars) (D) $3,228 $3,006 $3,049 $2,817 $2,985
Average fee per card (dollars) (D) $ 33 $ 32 $ 31 $ 30 $ 31
</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.
(B) Total cards-in-force represents the number of cards that are issued and
outstanding. Proprietary basic consumer cards-in-force includes basic cards
issued to the primary account owner and does not include additional
supplemental cards issued on that account. Proprietary basic small business
and corporate cards-in-force include basic and supplemental cards issued to
employee cardmembers. Non-proprietary basic cards-in-force includes all cards
that are issued and outstanding under network partnership agreements.
(C) This calculation is designed to approximate merchant pricing. It represents
the percentage of billed business (both proprietary and Global Network Services)
retained by the Company from merchants it acquires, prior to payments to third
parties unrelated to merchant acceptance.
(D) Average basic cardmember spending and average fee per card are computed
from proprietary card activities only. Average fee per card is computed based
on net card fees, including the amortization of deferred direct acquisition
costs (which beginning prospectively as of July 1, 2006, was reclassified from
other expense to a reduction in net card fees), divided by average worldwide
proprietary cards-in-force. The adjusted average fee per card is computed in
the same manner, but excludes amortization of deferred direct acquisition
costs. The adjusted average fee per card was $37 for the quarter ended
December 31, 2007, $36 for the quarters ended September 30, 2007 and June 30,
2007 and $35 for the quarters ended March 31, 2007 and December 31, 2006. The
amount of amortization excluded for these periods was $74 million for the
quarter ended December 31, 2007, $71 million for the quarters ended September
30, 2007 and June 30, 2007, $72 million for the quarter ended March 31, 2007,
and $75 million for the quarter ended December 31, 2006. The Company presents
adjusted average fee per card because management believes that this metric
presents a better picture of card fee pricing across a range of its proprietary
card products.
-10-
<Page>
AMERICAN EXPRESS COMPANY
SELECTED STATISTICAL INFORMATION (CONTINUED)
(Preliminary)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Worldwide cardmember receivables:
Total receivables $ 40.1 $ 38.5 $ 38.4 $ 36.5 $ 37.4
90 days past due as a % of total 3.0% 2.8% 2.7% 2.9% 2.8%
Loss reserves (millions): $1,149 $ 998 $ 981 $ 979 $ 981
% of receivables 2.9% 2.6% 2.6% 2.7% 2.6%
% of 90 days past due 95% 91% 95% 93% 95%
Net loss ratio as a % of charge volume 0.25% 0.26% 0.24% 0.23% 0.26%
Worldwide cardmember lending - owned basis (A):
Total loans $ 54.5 $ 50.5 $ 48.3 $ 42.3 $ 43.3
30 days past due loans as a % of total 3.4% 3.0% 2.8% 3.0% 2.7%
Loss reserves (millions):
Beginning balance $1,469 $1,417 $1,271 $1,171 $1,126
Provision 924 543 606 542 451
Net write offs (579) (499) (473) (439) (405)
Other 17 8 13 (3) (1)
------ ------ ------ ------ ------
Ending balance $1,831 $1,469 $1,417 $1,271 $1,171
====== ====== ====== ====== ======
% of loans 3.4% 2.9% 2.9% 3.0% 2.7%
% of past due 100% 97% 106% 100% 98%
Average loans $ 51.7 $ 48.8 $ 45.6 $ 42.4 $ 40.2
Net write-off rate 4.5% 4.1% 4.1% 4.1% 4.0%
Net finance revenue(B)/average loans 9.3% 9.3% 9.5% 9.4% 9.6%
Worldwide cardmember lending - managed basis (C):
Total loans $ 77.2 $ 72.0 $ 68.6 $ 63.2 $ 63.5
30 days past due loans as a % of total 3.2% 2.8% 2.6% 2.8% 2.6%
Loss reserves (millions):
Beginning balance $1,991 $1,917 $1,787 $1,622 $1,571
Provision 1,387 762 780 797 608
Net write offs (813) (696) (662) (628) (557)
Other 16 8 12 (4) --
------ ------ ------ ------ ------
Ending balance $2,581 $1,991 $1,917 $1,787 $1,622
====== ====== ====== ====== ======
% of loans 3.3% 2.8% 2.8% 2.8% 2.6%
% of past due 106% 97% 106% 100% 97%
Average loans $ 74.1 $ 70.1 $ 65.9 $ 62.8 $ 60.4
Net write-off rate 4.4% 4.0% 4.0% 4.0% 3.7%
Net finance revenue(B)/average loans 9.4% 9.4% 9.3% 9.5% 9.4%
</Table>
(A) "Owned," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(B) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is 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 20 for further discussion of
the managed basis presentation.
-11-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
---------------- Percentage ----------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------- ------ ---------- ------- ------- ----------
Revenues
Discount revenue, net card fees and other $ 2,747 $2,481 11% $10,435 $ 9,421 11%
Cardmember lending finance revenue 1,304 1,018 28 4,762 3,434 39
Securitization income, net 326 347 (6) 1,507 1,489 1
------- ------ ------- -------
Total revenues 4,377 3,846 14 16,704 14,344 16
------- ------ ------- -------
Interest expense
Cardmember lending 440 288 53 1,518 957 59
Charge card and other 228 209 9 964 767 26
------- ------ ------- -------
Revenues net of interest expense 3,709 3,349 11 14,222 12,620 13
------- ------ ------- -------
Expenses
Marketing, promotion, rewards
and cardmember services 1,739 1,220 43 5,140 4,445 16
Human resources and other operating expenses 871 876 (1) 3,354 3,227 4
------- ------ ------- -------
Total 2,610 2,096 25 8,494 7,672 11
------- ------ ------- -------
Provisions for losses 1,139 530 # 2,998 1,625 84
------- ------ ------- -------
Pretax segment (loss) income (40) 723 # 2,730 3,323 (18)
Income tax (benefit) provision (47) 250 # 907 1,171 (23)
------- ------ ------- -------
Segment income $ 7 $ 473 (99) $ 1,823 $ 2,152 (15)
======= ====== ======= =======
</Table>
# - Denotes a variance of more than 100%.
-12-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED FINANCIAL INFORMATION
MANAGED BASIS PRESENTATION
(Millions)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
---------------- Percentage ----------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------- ------ ---------- ------- ------- ----------
INCOME STATEMENT DATA
Discount revenue, net card fees and other:
Reported for the period (GAAP) $2,747 $2,481 11% $10,435 $ 9,421 11%
Securitization adjustments 76 56 36 310 199 56
------ ------ ------- -------
Managed discount revenue, net card fees and other $2,823 $2,537 11 $10,745 $ 9,620 12
------ ------ ------- -------
Cardmember lending finance revenue:
Reported for the period (GAAP) $1,304 $1,018 28 $ 4,762 $ 3,434 39
Securitization adjustments 828 729 14 3,130 2,937 7
------ ------ ------- -------
Managed finance revenue $2,132 $1,747 22 $ 7,892 $ 6,371 24
------ ------ ------- -------
Securitization income, net:
Reported for the period (GAAP) $ 326 $ 347 (6) $ 1,507 $ 1,489 1
Securitization adjustments (326) (347) (6) (1,507) (1,489) 1
------ ------ ------- -------
Managed securitization income, net $ -- $ -- -- $ -- $ -- --
------ ------ ------- -------
Cardmember lending interest expense:
Reported for the period (GAAP) $ 440 $ 288 53 $ 1,518 $ 957 59
Securitization adjustments 287 279 3 1,136 1,057 7
------ ------ ------- -------
Managed cardmember lending interest expense $ 727 $ 567 28 $ 2,654 $ 2,014 32
------ ------ ------- -------
Provisions for losses:
Reported for the period (GAAP) $1,139 $ 530 # $ 2,998 $ 1,625 84
Securitization adjustments 263 153 72 871 550 58
------ ------ ------- -------
Managed provisions for losses $1,402 $ 683 # $ 3,869 $ 2,175 78
------ ------ ------- -------
</Table>
# - Denotes a variance of more than 100%.
For U.S. Card Services, the managed basis presentation 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 presentation, revenue and expenses related to securitized
cardmember loans are reflected in other commissions and fees (included above
in discount revenue, net card fees and other), cardmember lending finance
revenue, cardmember lending interest expense, and provisions for losses. 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 cardmember loans are viewed
together on a managed basis. The Company does not currently securitize
international loans.
-13-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage ----------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------- ------- ----------
Card billed business $101.2 $ 90.8 11% $ 375.2 $ 333.4 13%
Total cards-in-force (millions) 43.3 40.7 6% 43.3 40.7 6%
Basic cards-in-force (millions) 32.3 30.1 7% 32.3 30.1 7%
Average basic cardmember spending (dollars) $3,161 $3,044 4% $12,011 $11,521 4%
U.S. Consumer Travel:
Travel sales (millions) $ 707 $ 597 18% $ 2,975 $ 2,357 26%
Travel commissions and fees/sales 8.2% 8.2% 8.0% 8.4%
Total segment assets $ 82.3 $ 71.0 16% $ 82.3 $ 71.0 16%
Segment capital (A) $ 4.5 $ 4.7 (4)% $ 4.5 $ 4.7 (4)%
Return on segment capital (B) 40.2% 47.4% 40.2% 47.4%
Cardmember receivables:
Total receivables $ 21.4 $ 20.6 4% $ 21.4 $ 20.6 4%
90 days past due as a % of total 3.9% 3.3% 3.9% 3.3%
Net loss ratio as a % of charge volume 0.35% 0.32% 0.31% 0.28%
Cardmember lending - owned basis (C):
Total loans $ 43.3 $ 33.6 29% $ 43.3 $ 33.6 29%
30 days past due loans as a % of total 3.5% 2.7% 3.5% 2.7%
Average loans $ 40.9 $ 30.9 32% $ 37.1 $ 27.6 34%
Net write-off rate 4.3% 3.5% 3.9% 3.0%
Net finance revenue(D)/average loans 8.4% 9.4% 8.7% 9.0%
Cardmember lending - managed basis (E):
Total loans $ 66.0 $ 53.8 23% $ 66.0 $ 53.8 23%
30 days past due loans as a % of total 3.2% 2.6% 3.2% 2.6%
Average loans $ 63.2 $ 51.1 24% $ 58.3 $ 48.0 21%
Net write-off rate 4.3% 3.3% 3.8% 2.9%
Net finance revenue(D)/average loans 8.8% 9.2% 9.0% 9.1%
</Table>
(A) Segment capital includes an allocation attributable to goodwill of $175
million and $168 million as of the quarters and years ended December 31, 2007
and 2006, respectively.
(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," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(D) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is 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 20 for further discussion of
the managed basis presentation.
-14-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Revenues
Discount revenue, net card fees and other $2,747 $2,632 $2,642 $2,414 $2,481
Cardmember lending finance revenue 1,304 1,224 1,179 1,055 1,018
Securitization income, net 326 392 332 457 347
------ ------ ------ ------ ------
Total revenues 4,377 4,248 4,153 3,926 3,846
------ ------ ------ ------ ------
Interest expense
Cardmember lending 440 402 363 313 288
Charge card and other 228 257 230 249 209
------ ------ ------ ------ ------
Revenues net of interest expense 3,709 3,589 3,560 3,364 3,349
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 1,739 1,191 1,266 944 1,220
Human resources and other operating expenses 871 848 827 808 876
------ ------ ------ ------ ------
Total 2,610 2,039 2,093 1,752 2,096
------ ------ ------ ------ ------
Provisions for losses 1,139 638 640 581 530
------ ------ ------ ------ ------
Pretax segment (loss) income (40) 912 827 1,031 723
Income tax (benefit) provision (47) 320 247 387 250
------ ------ ------ ------ ------
Segment income $ 7 $ 592 $ 580 $ 644 $ 473
====== ====== ====== ====== ======
</Table>
-15-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED FINANCIAL INFORMATION
MANAGED BASIS PRESENTATION
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
INCOME STATEMENT DATA
Discount revenue, net card fees and other:
Reported for the period (GAAP) $2,747 $2,632 $2,642 $2,414 $2,481
Securitization adjustments 76 67 80 87 56
------ ------ ------ ------ ------
Managed discount revenue, net card fees and other $2,823 $2,699 $2,722 $2,501 $2,537
------ ------ ------ ------ ------
Cardmember lending finance revenue:
Reported for the period (GAAP) $1,304 $1,224 $1,179 $1,055 $1,018
Securitization adjustments 828 821 724 757 729
------ ------ ------ ------ ------
Managed finance revenue $2,132 $2,045 $1,903 $1,812 $1,747
------ ------ ------ ------ ------
Securitization income, net:
Reported for the period (GAAP) $ 326 $ 392 $ 332 $ 457 $ 347
Securitization adjustments (326) (392) (332) (457) (347)
------ ------ ------ ------ ------
Managed securitization income, net $ -- $ -- $ -- $ -- $ --
------ ------ ------ ------ ------
Cardmember lending interest expense:
Reported for the period (GAAP) $ 440 $ 402 $ 363 $ 313 $ 288
Securitization adjustments 287 302 274 273 279
------ ------ ------ ------ ------
Managed cardmember lending interest expense $ 727 $ 704 $ 637 $ 586 $ 567
------ ------ ------ ------ ------
Provisions for losses:
Reported for the period (GAAP) $1,139 $ 638 $ 640 $ 581 $ 530
Securitization adjustments 263 226 177 205 153
------ ------ ------ ------ ------
Managed provisions for losses $1,402 $ 864 $ 817 $ 786 $ 683
------ ------ ------ ------ ------
</Table>
See page 20 for discussion of managed basis presentation.
-16-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Card billed business $101.2 $ 94.2 $ 94.6 $ 85.2 $ 90.8
Total cards-in-force (millions) 43.3 42.9 42.1 41.5 40.7
Basic cards-in-force (millions) 32.3 31.8 31.2 30.7 30.1
Average basic cardmember spending (dollars) $3,161 $2,986 $3,054 $2,801 $3,044
U.S. Consumer Travel:
Travel sales $ 0.7 $ 0.7 $ 0.8 $ 0.7 $ 0.6
Travel commissions and fees/sales 8.2% 8.5% 8.0% 7.5% 8.2%
Total segment assets $ 82.3 $ 79.0 $ 76.1 $ 68.4 $ 71.0
Segment capital (A) $ 4.5 $ 4.5 $ 4.5 $ 4.5 $ 4.7
Return on segment capital (B) 40.2% 50.5% 49.9% 50.2% 47.4%
Cardmember receivables:
Total receivables $ 21.4 $ 19.4 $ 19.8 $ 19.0 $ 20.6
90 days past due as a % of total 3.9% 3.9% 3.6% 3.8% 3.3%
Net loss ratio as a % of charge volume 0.35% 0.34% 0.30% 0.25% 0.32%
Cardmember lending - owned basis (C):
Total loans $ 43.3 $ 40.0 $ 38.3 $ 33.0 $ 33.6
30 days past due loans as a % of total 3.5% 3.1% 2.7% 2.9% 2.7%
Average loans $ 40.9 $ 38.6 $ 35.9 $ 33.1 $ 30.9
Net write-off rate 4.3% 3.7% 3.7% 3.7% 3.5%
Net finance revenue(D)/average loans 8.4% 8.5% 9.1% 9.1% 9.4%
Cardmember lending - managed basis (E):
Total loans $ 66.0 $ 61.5 $ 58.6 $ 53.9 $ 53.8
30 days past due loans as a % of total 3.2% 2.9% 2.6% 2.8% 2.6%
Average loans $ 63.2 $ 60.0 $ 56.3 $ 53.4 $ 51.1
Net write-off rate 4.3% 3.7% 3.7% 3.7% 3.3%
Net finance revenue(D)/average loans 8.8% 8.9% 9.0% 9.3% 9.2%
</Table>
(A) Segment capital includes an allocation attributable to goodwill of $175
million as of December 31, 2007 and $168 million as of September 30, 2007,
June 30, 2007, March 31, 2007 and December 31, 2006, respectively.
(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," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(D) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is 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 20 for further discussion of
the managed basis presentation.
-17-
<Page>
(Preliminary)
INTERNATIONAL CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage --------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------ ------ ----------
Revenues
Discount revenue, net card fees and other $1,022 $ 884 16% $3,703 $3,405 9%
Cardmember lending finance revenue 376 304 24 1,372 1,146 20
------ ------ ------ ------
Total revenues 1,398 1,188 18 5,075 4,551 12
------ ------ ------ ------
Interest expense
Cardmember lending 138 105 31 493 393 25
Charge card and other 71 57 25 251 193 30
------ ------ ------ ------
Revenues net of interest expense 1,189 1,026 16 4,331 3,965 9
------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 638 280 # 1,566 1,109 41
Human resources and other operating expenses 512 460 11 1,836 1,692 9
------ ------ ------ ------
Total 1,150 740 55 3,402 2,801 21
------ ------ ------ ------
Provisions for losses 220 210 5 812 852 (5)
------ ------ ------ ------
Pretax segment (loss) income (181) 76 # 117 312 (63)
Income tax benefit (113) (23) # (174) (31) #
------ ------ ------ ------
Segment (loss) income $ (68) $ 99 # $ 291 $ 343 (15)
====== ====== ====== ======
</Table>
# - Denotes variance of more than 100%.
-18-
<Page>
(Preliminary)
INTERNATIONAL CARD SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage --------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------ ------ ----------
Card billed business $ 28.2 $ 23.6 19% $ 98.0 $ 86.3 14%
Total cards-in-force (millions) 16.0 15.6 3% 16.0 15.6 3%
Basic cards-in-force (millions) 11.3 11.2 1% 11.3 11.2 1%
Average basic cardmember spending (dollars) $2,515 $2,106 19% $8,772 $7,491 17%
International Consumer Travel:
Travel sales (millions) $ 310 $ 251 24% $1,113 $ 922 21%
Travel commissions and fees/sales 8.7% 8.6% 8.6% 8.7%
Total segment assets $ 21.4 $ 18.9 13% $ 21.4 $ 18.9 13%
Segment capital (millions) (A) $2,062 $1,724 20% $2,062 $1,724 20%
Return on segment capital (B) 15.3% 17.9% 15.3% 17.9%
Cardmember receivables:
Total receivables $ 6.6 $ 6.0 10% $ 6.6 $ 6.0 10%
90 days past due as a % of total 1.8% 2.3% 1.8% 2.3%
Net loss ratio as a % of charge volume 0.21% 0.30% 0.26% 0.26%
Cardmember lending:
Total loans $ 11.2 $ 9.7 15% $ 11.2 $ 9.7 15%
30 days past due loans as a % of total 2.8% 2.9% 2.8% 2.9%
Average loans $ 10.8 $ 9.3 16% $ 10.0 $ 8.9 12%
Net write-off rate 5.1% 5.7% 5.6% 5.9%
Net finance revenue(C)/average loans 8.7% 8.5% 8.8% 8.5%
</Table>
(A) Segment capital includes an allocation attributable to goodwill of $519
million and $518 million as of the quarters and years ended December 31, 2007
and 2006, respectively.
(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) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.
-19-
<Page>
(Preliminary)
INTERNATIONAL CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Revenues
Discount revenue, net card fees and other $1,022 $ 953 $ 900 $ 828 $ 884
Cardmember lending finance revenue 376 353 333 310 304
------ ------ ------ ------ ------
Total revenues 1,398 1,306 1,233 1,138 1,188
------ ------ ------ ------ ------
Interest expense
Cardmember lending 138 126 120 109 105
Charge card and other 71 66 64 50 57
------ ------ ------ ------ ------
Revenues net of interest expense 1,189 1,114 1,049 979 1,026
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 638 354 293 281 280
Human resources and other operating expenses 512 453 453 418 460
------ ------ ------ ------ ------
Total 1,150 807 746 699 740
------ ------ ------ ------ ------
Provisions for losses 220 197 211 184 210
------ ------ ------ ------ ------
Pretax segment (loss) income (181) 110 92 96 76
Income tax benefit (113) (30) (25) (6) (23)
------ ------ ------ ------ ------
Segment (loss) income $ (68) $ 140 $ 117 $ 102 $ 99
====== ====== ====== ====== ======
</Table>
-20-
<Page>
(Preliminary)
INTERNATIONAL CARD SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Card billed business $ 28.2 $ 24.7 $ 23.6 $ 21.5 $ 23.6
Total cards-in-force (millions) 16.0 15.8 15.7 15.7 15.6
Basic cards-in-force (millions) 11.3 11.2 11.2 11.2 11.2
Average basic cardmember spending (dollars) $2,515 $2,209 $2,123 $1,926 $2,106
International Consumer Travel:
Travel sales $ 0.3 $ 0.3 $ 0.3 $ 0.2 $ 0.3
Travel commissions and fees/sales 8.7% 8.8% 8.6% 8.4% 8.6%
Total segment assets $ 21.4 $ 20.8 $ 19.7 $ 18.5 $ 18.9
Segment capital (A) $ 2.1 $ 2.0 $ 1.9 $ 1.8 $ 1.7
Return on segment capital (B) 15.3% 24.4% 22.8% 20.9% 17.9%
Cardmember receivables:
Total receivables $ 6.6 $ 6.1 $ 5.9 $ 5.4 $ 6.0
90 days past due as a % of total 1.8% 1.8% 2.0% 2.4% 2.3%
Net loss ratio as a % of charge volume 0.21% 0.26% 0.28% 0.29% 0.30%
Cardmember lending:
Total loans $ 11.2 $ 10.5 $ 10.0 $ 9.3 $ 9.7
30 days past due loans as a % of total 2.8% 2.7% 2.9% 3.1% 2.9%
Average loans $ 10.8 $ 10.2 $ 9.7 $ 9.4 $ 9.3
Net write-off rate 5.1% 5.5% 6.0% 5.7% 5.7%
Net finance revenue(C)/average loans 8.7% 8.9% 8.9% 8.7% 8.5%
</Table>
(A) Segment capital includes an allocation attributable to goodwill of $519
million as of December 31, 2007, $520 million as of September 30, 2007, $519
million as of June 30, 2007 and March 31, 2007, and $518 million as of
December 31, 2006, respectively.
(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) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.
-21-
<Page>
(Preliminary)
GLOBAL COMMERCIAL SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage --------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------ ------ ----------
Revenues
Discount revenue, net card fees and other $1,259 $1,089 16% $4,747 $4,269 11%
------ ------ ------ ------
Interest expense
Charge card and other 131 107 22 478 369 30
------ ------ ------ ------
Revenues net of interest expense 1,128 982 15 4,269 3,900 9
------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 135 63 # 387 307 26
Human resources and other operating expenses 794 721 10 2,975 2,764 8
------ ------ ------ ------
Total 929 784 18 3,362 3,071 9
------ ------ ------ ------
Provisions for losses 55 31 77 163 113 44
------ ------ ------ ------
Pretax segment income 144 167 (14) 744 716 4
Income tax provision 34 50 (32) 208 239 (13)
------ ------ ------ ------
Segment income $ 110 $ 117 (6) $ 536 $ 477 12
====== ====== ====== ======
</Table>
# - Denotes variance of more than 100%.
-22-
<Page>
(Preliminary)
GLOBAL COMMERCIAL SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage ----------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------- ------- ----------
Card billed business $ 32.2 $ 27.6 17% $ 122.1 $ 106.9 14%
Total cards-in-force (millions) 6.8 6.7 1% 6.8 6.7 1%
Basic cards-in-force (millions) 6.8 6.7 1% 6.8 6.7 1%
Average basic cardmember spending (dollars) $4,695 $4,170 13% $18,017 $16,264 11%
Global Corporate Travel:
Travel sales $ 5.5 $ 4.6 20% $ 20.5 $ 18.5 11%
Travel commissions and fees/sales 7.8% 8.1% 7.7% 8.1%
Total segment assets $ 21.1 $ 18.9 12% $ 21.1 $ 18.9 12%
Segment capital (millions) (A) $2,239 $1,907 17% $ 2,239 $ 1,907 17%
Return on segment capital (B) 25.3% 25.7% 25.3% 25.7%
Cardmember receivables:
Total receivables $ 11.4 $ 10.3 11% $ 11.4 $ 10.3 11%
90 days past due as a % of total 2.1% 1.9% 2.1% 1.9%
Net loss ratio as a % of charge volume 0.12% 0.09% 0.10% 0.09%
</Table>
(A) Segment capital includes an allocation attributable to goodwill of $771
million and $740 million as of the quarters and years ended December 31, 2007
and 2006.
(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 COMMERCIAL SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Revenues
Discount revenue, net card fees and other $1,259 $1,180 $1,210 $1,098 $1,089
------ ------ ------ ------ ------
Interest expense
Charge card and other 131 116 127 104 107
------ ------ ------ ------ ------
Revenues net of interest expense 1,128 1,064 1,083 994 982
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 135 86 83 83 63
Human resources and other operating expenses 794 749 746 686 721
------ ------ ------ ------ ------
Total 929 835 829 769 784
------ ------ ------ ------ ------
Provisions for losses 55 42 36 30 31
------ ------ ------ ------ ------
Pretax segment income 144 187 218 195 167
Income tax provision 34 52 56 66 50
------ ------ ------ ------ ------
Segment income $ 110 $ 135 $ 162 $ 129 $ 117
====== ====== ====== ====== ======
</Table>
-24-
<Page>
(Preliminary)
GLOBAL COMMERCIAL SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Card billed business $ 32.2 $ 29.9 $ 31.0 $ 29.0 $ 27.6
Total cards-in-force (millions) 6.8 6.8 6.8 6.7 6.7
Basic cards-in-force (millions) 6.8 6.8 6.8 6.7 6.7
Average basic cardmember spending (dollars) $4,695 $4,389 $4,583 $4,343 $4,170
Global Corporate Travel:
Travel sales $ 5.5 $ 4.9 $ 5.3 $ 4.8 $ 4.6
Travel commissions and fees/sales 7.8% 8.0% 7.5% 7.6% 8.1%
Total segment assets $ 21.1 $ 21.8 $ 21.7 $ 20.5 $ 18.9
Segment capital (A) $ 2.2 $ 2.2 $ 2.1 $ 2.1 $ 1.9
Return on segment capital (B) 25.3% 26.2% 25.3% 25.7% 25.7%
Cardmember receivables:
Total receivables $ 11.4 $ 12.5 $ 12.2 $ 11.7 $ 10.3
90 days past due as a % of total 2.1% 1.6% 1.6% 1.6% 1.9%
Net loss ratio as a % of charge volume 0.12% 0.11% 0.10% 0.10% 0.09%
</Table>
(A) Segment capital includes an allocation attributable to goodwill of $771
million as of December 31, 2007, $767 million as of September 30, 2007, $745
million as of June 30, 2007, $742 million as of March 31, 2007 and $740
million as of December 31, 2006, respectively.
(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-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
-------------- Percentage --------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ---- ---------- ------ ------ ----------
Revenues
Discount revenue, fees and other $ 961 $840 14% $3,550 $3,063 16%
------ ---- ------ ------
Interest expense
Cardmember lending (34) (29) 17 (126) (98) 29
Other (46) (47) (2) (188) (183) 3
------ ---- ------ ------
Revenues net of interest expense 1,041 916 14 3,864 3,344 16
------ ---- ------ ------
Expenses
Marketing and promotion 165 125 32 595 518 15
Human resources and other operating expenses 466 448 4 1,665 1,549 7
------ ---- ------ ------
Total 631 573 10 2,260 2,067 9
------ ---- ------ ------
Provisions for losses 31 46 (33) 44 89 (51)
------ ---- ------ ------
Pretax segment income 379 297 28 1,560 1,188 31
Income tax provision 125 96 30 538 409 32
------ ---- ------ ------
Segment income $ 254 $201 26 $1,022 $ 779 31
====== ==== ====== ======
</Table>
-26-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended Years Ended
December 31, December 31,
--------------- Percentage --------------- Percentage
2007 2006 Inc/(Dec) 2007 2006 Inc/(Dec)
------ ------ ---------- ------ ------ ----------
Global Card billed business (A) $177.5 $153.5 16% $647.3 $561.5 15%
Global Network & Merchant Services:
Total segment assets $ 6.5 $ 4.4 48% $ 6.5 $ 4.4 48%
Segment capital (millions) (B) $1,170 $1,272 (8)% $1,170 $1,272 (8)%
Return on segment capital (C) 90.7% 60.3% 90.7% 60.3%
Global Network Services (D):
Card billed business $ 16.0 $ 11.5 39% $ 52.9 $ 35.4 49%
Total cards-in-force (millions) (E) 20.3 15.0 35% 20.3 15.0 35%
</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) Segment capital includes an allocation attributable to goodwill of $27
million as of the quarters and years ended December 31, 2007 and 2006.
(C) 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.
(D) Billed business and cards-in-force reflect the transfer, effective January
1, 2006, to Global Commercial Services' segment of corporate card accounts in
certain emerging markets that had been managed within Global Network Services.
(E) Cards-in-force for 2006 reflect the transfer of 1.3 million proprietary
cards in Brazil, and approximately 200,000 proprietary cards-in-force in
Malaysia and Indonesia from the International Card Services and Global
Commercial Services segments during the second quarter of 2006 and the third
quarter of 2006, respectively.
-27-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Revenues
Discount revenue, fees and other $ 961 $902 $887 $800 $840
------ ---- ---- ---- ----
Interest expense
Cardmember lending (34) (33) (31) (28) (29)
Other (46) (45) (48) (49) (47)
------ ---- ---- ---- ----
Revenues net of interest expense 1,041 980 966 877 916
------ ---- ---- ---- ----
Expenses
Marketing and promotion 165 151 150 129 125
Human resources and other operating expenses 466 417 389 393 448
------ ---- ---- ---- ----
Total 631 568 539 522 573
------ ---- ---- ---- ----
Provisions for losses 31 23 9 (19) 46
------ ---- ---- ---- ----
Pretax segment income 379 389 418 374 297
Income tax provision 125 123 152 138 96
------ ---- ---- ---- ----
Segment income $ 254 $266 $266 $236 $201
====== ==== ==== ==== ====
</Table>
-28-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
2007 2007 2007 2007 2006
------------ ------------- -------- --------- ------------
Global Card billed business (A) $177.5 $162.5 $161.1 $146.2 $153.5
Global Network & Merchant Services:
Total segment assets $ 6.5 $ 4.6 $ 4.3 $ 4.5 $ 4.4
Segment capital (B) $ 1.2 $ 1.1 $ 1.1 $ 1.0 $ 1.3
Return on segment capital (C) 90.7% 84.7% 78.0% 69.2% 60.3%
Global Network Services (D):
Card billed business $ 16.0 $ 14.1 $ 12.3 $ 10.5 $ 11.5
Total cards-in-force (millions) 20.3 19.2 17.6 16.0 15.0
</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) Segment capital includes an allocation attributable to goodwill of $27
million as of the quarters ended December 31, 2007, September 30, 2007, June
30, 2007, March 31, 2007 and December 31, 2006, respectively.
(C) 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.
(D) Billed business and cards-in-force reflect the transfer, effective January
1, 2006, to Global Commercial Services' segment of corporate card accounts in
certain emerging markets that had been managed within Global Network Services.
-29-