EXHIBIT 99.2
All information in the following tables is presented on a basis prepared in
accordance with U.S. generally accepted accounting principles (GAAP), unless
otherwise indicated.
(Preliminary)
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
<Table>
<Caption>
Quarters Ended
March 31,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Revenues
Discount revenue $3,718 $3,355 11%
Net card fees 567 484 17
Travel commissions and fees 494 437 13
Other commissions and fees 622 536 16
Securitization income, net 444 457 (3)
Other 356 387 (8)
------ ------
Total 6,201 5,656 10
------ ------
Interest income
Cardmember lending finance revenue 1,625 1,368 19
Other 279 303 (8)
------ ------
Total 1,904 1,671 14
------ ------
Total revenues 8,105 7,327 11
------ ------
Interest expense
Cardmember lending 417 385 8
Charge card and other 502 458 10
------ ------
Total 919 843 9
------ ------
Revenues net of interest expense 7,186 6,484 11
------ ------
Expenses
Marketing, promotion, rewards and cardmember services 1,756 1,462 20
Human resources 1,470 1,301 13
Professional services 551 518 6
Occupancy and equipment 375 328 14
Communications 115 112 3
Other, net 296 293 1
------ ------
Total 4,563 4,014 14
------ ------
Provisions for losses and benefits
Charge card 345 209 65
Cardmember lending 809 574 41
Other (including investment certificates) 115 76 51
------ ------
Total 1,269 859 48
------ ------
Pretax income from continuing operations 1,354 1,611 (16)
Income tax provision 380 516 (26)
------ ------
Income from continuing operations 974 1,095 (11)
Income (Loss) from discontinued operations, net of tax 17 (38) #
------ ------
Net income $ 991 $1,057 (6)
====== ======
</Table>
# - Denotes a variance of more than 100%.
-1-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Billions)
March 31, December 31,
2008 2007
--------- ------------
Assets
Cash and cash equivalents $ 19 $ 12
Accounts receivable 41 42
Investments 14 16
Loans 48 53
Other assets 13 10
Assets of discontinued operations -- 17
---- ----
Total assets $135 $150
==== ====
Liabilities and Shareholders' Equity
Short-term debt $ 19 $ 18
Long-term debt 56 55
Other liabilities 48 50
Liabilities of discontinued operations -- 16
---- ----
Total liabilities 123 139
---- ----
Shareholders' equity 12 11
---- ----
Total liabilities and shareholders' equity $135 $150
==== ====
-2-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Millions)
<Table>
<Caption>
Quarters Ended
March 31,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
REVENUES NET OF INTEREST EXPENSE
U.S. Card Services $3,722 $3,364 11%
International Card Services 1,195 979 22
Global Commercial Services 1,144 994 15
Global Network & Merchant Services 1,003 877 14
------ ------
7,064 6,214 14
Corporate & Other,
including adjustments and eliminations 122 270 (55)
------ ------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE $7,186 $6,484 11
====== ======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
U.S. Card Services $ 791 $1,031 (23)
International Card Services 117 96 22
Global Commercial Services 218 195 12
Global Network & Merchant Services 335 374 (10)
------ ------
1,461 1,696 (14)
Corporate & Other (107) (85) 26
------ ------
PRETAX INCOME FROM CONTINUING OPERATIONS $1,354 $1,611 (16)
====== ======
NET INCOME (LOSS)
U.S. Card Services $ 523 $ 644 (19)
International Card Services 133 102 30
Global Commercial Services 151 129 17
Global Network & Merchant Services 223 236 (6)
------ ------
1,030 1,111 (7)
Corporate & Other (56) (16) #
------ ------
Income from continuing operations 974 1,095 (11)
Income (Loss) from discontinued operations, net of tax 17 (38) #
------ ------
NET INCOME $ 991 $1,057 (6)
====== ======
</Table>
# - Denotes a variance of more than 100%.
-3-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
Quarters Ended
March 31,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.84 $ 0.92 (9)%
Income (Loss) from discontinued operations 0.02 (0.03) #
------ ------
Net income $ 0.86 $ 0.89 (3)%
====== ======
Average common shares outstanding (millions) 1,153 1,187 (3)%
====== ======
DILUTED
Income from continuing operations $ 0.84 $ 0.90 (7)%
Income (Loss) from discontinued operations 0.01 (0.03) #
------ ------
Net income $ 0.85 $ 0.87 (2)%
====== ======
Average common shares outstanding (millions) 1,163 1,210 (4)%
====== ======
Cash dividends declared per common share $ 0.18 $ 0.15 20%
====== ======
SELECTED STATISTICAL INFORMATION
Quarters Ended
March 31,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Return on average equity (A) 35.9% 36.6%
Common shares outstanding (millions) 1,158 1,188 (3)%
Book value per common share $ 9.94 $ 8.83 13%
Shareholders' equity (billions) $ 11.5 $ 10.5 10%
# - 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
March 31,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Card billed business (A):
United States $114.6 $105.4 9%
Outside the United States 51.8 40.8 27
------ ------
Total $166.4 $146.2 14
====== ======
Total cards-in-force (millions) (B):
United States 52.9 49.3 7%
Outside the United States 35.1 30.6 15
------ ------
Total 88.0 79.9 10
====== ======
Basic cards-in-force (millions) (B):
United States 41.4 38.1 9%
Outside the United States 30.2 26.0 16
------ ------
Total 71.6 64.1 12
====== ======
Average discount rate (C) 2.57% 2.58%
Average basic cardmember spending (dollars) (D) $2,984 $2,817 6%
Average fee per card (dollars) (D) $ 34 $ 30 13%
</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. Card billed business is
reflected in the United States or outside the United States based on where the
cardmember is domiciled.
(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 $39 for the quarter ended March
31, 2008, and $35 for the quarter and year ended March 31, 2007, and the
amount of amortization excluded for these periods was $77 million for the
quarter ended March 31, 2008, and $72 million for the quarter ended March 31,
2007. 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
March 31,
---------------- Percentage
2008 2007 Inc/(Dec)
------- ------ ----------
Worldwide cardmember receivables:
Total receivables $ 39.0 $ 36.5 7%
90 days past due as a % of total 3.3% 2.9%
Loss reserves (millions):
Beginning balance $ 1,149 $ 981 17%
Provision 345 209 65
Net write offs (257) (194) 32
Other (16) (17) (6)
------- ------
Ending balance $ 1,221 $ 979 25
======= ======
% of receivables 3.1% 2.7%
% of 90 days past due 96% 93%
Net loss ratio as a % of charge volume 0.25% 0.23%
Worldwide cardmember lending - owned basis (A):
Total loans $ 49.6 $ 42.3 17%
30 days past due loans as a % of total 3.8% 3.0%
Loss reserves (millions):
Beginning balance $ 1,831 $1,171 56%
Provision 776 542 43
Net write offs (693) (439) 58
Other 5 (3) #
------- ------
Ending balance $ 1,919 $1,271 51
======= ======
% of loans 3.9% 3.0%
% of past due 101% 100%
Average loans $ 50.8 $ 42.4 20%
Net write-off rate 5.5% 4.1%
Net finance revenue(B)/average loans 9.6% 9.4%
Worldwide cardmember lending - managed basis (C):
Total loans $ 75.2 $ 63.2 19%
30 days past due loans as a % of total 3.6% 2.8%
Loss reserves (millions):
Beginning balance $ 2,581 $1,622 59%
Provision 1,231 797 54
Net write offs (1,007) (628) 60
Other 6 (4) #
------- ------
Ending balance $ 2,811 $1,787 57
======= ======
% of loans 3.7% 2.8%
% of past due 105% 100%
Average loans $ 75.8 $ 62.8 21%
Net write-off rate 5.3% 4.0%
Net finance revenue(B)/average loans 10.0% 9.5%
</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 19 for
further discussion of the managed basis presentation.
-6-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Revenues
Discount revenue $3,718 $ 3,912 $ 3,659 $ 3,670 $ 3,355
Net card fees 567 544 522 500 484
Travel commissions and fees 494 514 484 491 437
Other commissions and fees 622 650 644 587 536
Securitization income, net 444 326 392 332 457
Other 356 470 362 426 387
------ ------- ------- ------- -------
Total 6,201 6,416 6,063 6,006 5,656
------ ------- ------- ------- -------
Interest income
Cardmember lending finance revenue 1,625 1,682 1,581 1,514 1,368
Other 279 302 309 357 303
------ ------- ------- ------- -------
Total 1,904 1,984 1,890 1,871 1,671
------ ------- ------- ------- -------
Total revenues 8,105 8,400 7,953 7,877 7,327
------ ------- ------- ------- -------
Interest expense
Cardmember lending 417 474 444 431 385
Charge card and other 502 562 564 508 458
------ ------- ------- ------- -------
Total 919 1,036 1,008 939 843
------ ------- ------- ------- -------
Revenues net of interest expense 7,186 7,364 6,945 6,938 6,484
------ ------- ------- ------- -------
Expenses
Marketing, promotion, rewards
and cardmember services 1,756 2,719 1,810 1,826 1,462
Human resources 1,470 1,437 1,366 1,334 1,301
Professional services 551 646 539 580 518
Occupancy and equipment 375 382 374 352 328
Communications 115 119 118 112 112
Other, net 296 (591) 339 348 293
------ ------- ------- ------- -------
Total 4,563 4,712 4,546 4,552 4,014
------ ------- ------- ------- -------
Provisions for losses and benefits
Charge card 345 419 279 233 209
Cardmember lending 809 970 579 638 574
Other (including investment certificates) 115 134 124 106 76
------ ------- ------- ------- -------
Total 1,269 1,523 982 977 859
------ ------- ------- ------- -------
Pretax income from continuing operations 1,354 1,129 1,417 1,409 1,611
Income tax provision 380 290 343 369 516
------ ------- ------- ------- -------
Income from continuing operations 974 839 1,074 1,040 1,095
Income (Loss) from discontinued operations, net of tax 17 (8) (7) 17 (38)
------ ------- ------- ------- -------
Net income $ 991 $ 831 $ 1,067 $ 1,057 $ 1,057
====== ======= ======= ======= =======
</Table>
-7-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Millions)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
REVENUES NET OF INTEREST EXPENSE
U.S. Card Services $ 3,722 $ 3,709 $ 3,589 $ 3,560 $ 3,364
International Card Services 1,195 1,189 1,114 1,049 979
Global Commercial Services 1,144 1,128 1,064 1,083 994
Global Network & Merchant Services 1,003 1,041 980 966 877
------- ------- ------- ------- -------
7,064 7,067 6,747 6,658 6,214
Corporate & Other,
including adjustments and eliminations 122 297 198 280 270
------- ------- ------- ------- -------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE $ 7,186 $ 7,364 $ 6,945 $ 6,938 $ 6,484
======= ======= ======= ======= =======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
U.S. Card Services $ 791 $ (40) $ 912 $ 827 $ 1,031
International Card Services 117 (181) 110 92 96
Global Commercial Services 218 144 187 218 195
Global Network & Merchant Services 335 379 389 418 374
------- ------- ------- ------- -------
1,461 302 1,598 1,555 1,696
Corporate & Other (107) 827 (181) (146) (85)
------- ------- ------- ------- -------
PRETAX INCOME FROM CONTINUING OPERATIONS $ 1,354 $ 1,129 $ 1,417 $ 1,409 $ 1,611
======= ======= ======= ======= =======
NET INCOME (LOSS)
U.S. Card Services $ 523 $ 7 $ 592 $ 580 $ 644
International Card Services 133 (68) 140 117 102
Global Commercial Services 151 110 135 162 129
Global Network & Merchant Services 223 254 266 266 236
------- ------- ------- ------- -------
1,030 303 1,133 1,125 1,111
Corporate & Other (56) 536 (59) (85) (16)
------- ------- ------- ------- -------
Income from continuing operations 974 839 1,074 1,040 1,095
Income (Loss) from discontinued operations, net of tax 17 (8) (7) 17 (38)
------- ------- ------- ------- -------
NET INCOME $ 991 $ 831 $ 1,067 $ 1,057 $ 1,057
======= ======= ======= ======= =======
</Table>
-8-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.84 $ 0.72 $ 0.92 $ 0.88 $ 0.92
Income (Loss) from discontinued operations $ 0.02 -- (0.01) 0.02 (0.03)
------ ------ ------ ------ ------
Net income $ 0.86 $ 0.72 $ 0.91 $ 0.90 $ 0.89
====== ====== ====== ====== ======
Average common shares outstanding (millions) 1,153 1,157 1,170 1,179 1,187
======
DILUTED
Income from continuing operations $ 0.84 $ 0.71 $ 0.90 $ 0.86 $ 0.90
Income (Loss) from discontinued operations 0.01 -- -- 0.02 (0.03)
------ ------ ------ ------ ------
Net income $ 0.85 $ 0.71 $ 0.90 $ 0.88 $ 0.87
====== ====== ====== ====== ======
Average common shares outstanding (millions) 1,163 1,178 1,192 1,203 1,210
====== ====== ====== ====== ======
Cash dividends declared per common share $ 0.18 $ 0.18 $ 0.15 $ 0.15 $ 0.15
====== ====== ====== ====== ======
</Table>
SELECTED STATISTICAL INFORMATION
<Table>
<Caption>
Quarters Ended
--------- ------------ ------------- -------- ---------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Return on average equity (A) 35.9% 37.3% 38.2% 37.5% 36.6%
Common shares outstanding (millions) 1,158 1,158 1,169 1,182 1,188
Book value per common share $ 9.94 $ 9.53 $ 9.32 $ 9.00 $ 8.83
Shareholders' equity (billions) $ 11.5 $ 11.0 $ 10.9 $ 10.6 $ 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
-----------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Card billed business (A):
United States $114.6 $123.0 $115.2 $115.7 $105.4
Outside the United States 51.8 54.5 47.3 45.4 40.8
------ ------ ------ ------ ------
Total $166.4 $177.5 $162.5 $161.1 $146.2
====== ====== ====== ====== ======
Total cards-in-force (millions) (B):
United States 52.9 52.3 51.7 50.5 49.3
Outside the United States 35.1 34.1 33.0 31.7 30.6
------ ------ ------ ------ ------
Total 88.0 86.4 84.7 82.2 79.9
====== ====== ====== ====== ======
Basic cards-in-force (millions) (B):
United States 41.4 40.9 40.1 39.2 38.1
Outside the United States 30.2 29.2 28.3 27.0 26.0
------ ------ ------ ------ ------
Total 71.6 70.1 68.4 66.2 64.1
====== ====== ====== ====== ======
Average discount rate (C) 2.57% 2.54% 2.57% 2.57% 2.58%
Average basic cardmember spending (dollars) (D) $2,984 $3,228 $3,006 $3,049 $2,817
Average fee per card (dollars) (D) $ 34 $ 33 $ 32 $ 31 $ 30
</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. Card
billed business is reflected in the United States or outside the United
States based on where the cardmember is domiciled.
(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
$39 for the quarter ended March 31, 2008, $37 for the quarter ended
December 31, 2007, $36 for the quarters ended September 30, 2007 and June
30, 2007, and $35 for the quarter ended March 31, 2007. The amount of
amortization excluded for these periods was $77 for the quarter ended
March 31, 2008, $74 million for the quarter ended December 31, 2007, $71
million for the quarters ended September 30, 2007 and June 30, 2007, and
$72 million for the quarter ended March 31, 2007. 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>
(Preliminary)
AMERICAN EXPRESS COMPANY
SELECTED STATISTICAL INFORMATION (CONTINUED)
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Worldwide cardmember receivables:
Total receivables $ 39.0 $ 40.1 $ 38.5 $ 38.4 $ 36.5
90 days past due as a % of total 3.3% 3.0% 2.8% 2.7% 2.9%
Loss reserves (millions):
Beginning balance $ 1,149 $ 998 $ 981 $ 979 $ 981
Provision 345 419 279 233 209
Net write offs (257) (249) (247) (217) (194)
Other (16) (19) (15) (14) (17)
------- ------ ------ ------ ------
Ending balance $ 1,221 $1,149 $ 998 $ 981 $ 979
======= ====== ====== ====== ======
% of receivables 3.1% 2.9% 2.6% 2.6% 2.7%
% of 90 days past due 96% 95% 91% 95% 93%
Net loss ratio as a % of charge volume 0.25% 0.25% 0.26% 0.24% 0.23%
Worldwide cardmember lending - owned basis (A):
Total loans $ 49.6 $ 54.5 $ 50.5 $ 48.3 $ 42.3
30 days past due loans as a % of total 3.8% 3.4% 3.0% 2.8% 3.0%
Loss reserves (millions):
Beginning balance $ 1,831 $1,469 $1,417 $1,271 $1,171
Provision 776 924 543 606 542
Net write offs (693) (579) (499) (473) (439)
Other 5 17 8 13 (3)
------- ------ ------ ------ ------
Ending balance $ 1,919 $1,831 $1,469 $1,417 $1,271
======= ====== ====== ====== ======
% of loans 3.9% 3.4% 2.9% 2.9% 3.0%
% of past due 101% 100% 97% 106% 100%
Average loans $ 50.8 $ 51.7 $ 48.8 $ 45.6 $ 42.4
Net write-off rate 5.5% 4.5% 4.1% 4.1% 4.1%
Net finance revenue(B)/average loans 9.6% 9.3% 9.3% 9.5% 9.4%
Worldwide cardmember lending - managed basis (C):
Total loans $ 75.2 $ 77.2 $ 72.0 $ 68.6 $ 63.2
30 days past due loans as a % of total 3.6% 3.2% 2.8% 2.6% 2.8%
Loss reserves (millions):
Beginning balance $ 2,581 $1,991 $1,917 $1,787 $1,622
Provision 1,231 1,387 762 780 797
Net write offs (1,007) (813) (696) (662) (628)
Other 6 16 8 12 (4)
------- ------ ------ ------ ------
Ending balance $ 2,811 $2,581 $1,991 $1,917 $1,787
======= ====== ====== ====== ======
% of loans 3.7% 3.3% 2.8% 2.8% 2.8%
% of past due 105% 106% 97% 106% 100%
Average loans $ 75.8 $ 74.1 $ 70.1 $ 65.9 $ 62.8
Net write-off rate 5.3% 4.4% 4.0% 4.0% 4.0%
Net finance revenue(B)/average loans 10.0% 9.4% 9.4% 9.3% 9.5%
</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 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
March 31,
-------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Revenues
Discount revenue, net card fees and other $2,605 $2,414 8%
Cardmember lending finance revenue 1,206 1,055 14
Securitization income, net 444 457 (3)
------ ------
Total revenues 4,255 3,926 8
------ ------
Interest expense
Cardmember lending 345 313 10
Charge card and other 188 249 (24)
------ ------
Revenues net of interest expense 3,722 3,364 11
------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 1,144 944 21
Human resources and other operating expenses 906 808 12
------ ------
Total 2,050 1,752 17
------ ------
Provisions for losses 881 581 52
------ ------
Pretax segment income 791 1,031 (23)
Income tax provision 268 387 (31)
------ ------
Segment income $ 523 $ 644 (19)
====== ======
</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
March 31,
-------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Income Statement Data
Discount revenue, net card fees and other:
Reported for the period (GAAP) $2,605 $2,414 8%
Securitization adjustments 73 87 (16)
------ ------
Managed discount revenue, net card fees and other $2,678 $2,501 7
------ ------
Cardmember lending finance revenue:
Reported for the period (GAAP) $1,206 $1,055 14
Securitization adjustments 903 757 19
------ ------
Managed cardmember lending finance revenue $2,109 $1,812 16
------ ------
Securitization income, net:
Reported for the period (GAAP) $ 444 $ 457 (3)
Securitization adjustments (444) (457) (3)
------ ------
Managed securitization income, net $ -- $ -- --
------ ------
Cardmember lending interest expense:
Reported for the period (GAAP) $ 345 $ 313 10
Securitization adjustments 220 273 (19)
------ ------
Managed cardmember lending interest expense $ 565 $ 586 (4)
------ ------
Provisions for losses:
Reported for the period (GAAP) $ 881 $ 581 52
Securitization adjustments 387 205 89
------ ------
Managed provisions for losses $1,268 $ 786 61
------ ------
</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
March 31,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Card billed business $ 92.1 $ 85.2 8%
Total cards-in-force (millions) 43.8 41.5 6%
Basic cards-in-force (millions) 32.7 30.7 7%
Average basic cardmember spending (dollars) $2,838 $2,801 1%
U.S. Consumer Travel:
Travel sales (millions) $ 803 $ 710 13%
Travel commissions and fees/sales 7.7% 7.5%
Total segment assets $ 81.9 $ 68.4 20%
Segment capital (millions) (A) $4,517 $4,498 0%
Return on segment capital (B) 37.9% 50.2%
Cardmember receivables:
Total receivables $ 19.2 $ 19.0 1%
90 days past due as a % of total 4.6% 3.8%
Net loss ratio as a % of charge volume 0.35% 0.25%
Cardmember lending - owned basis (C):
Total loans $ 38.1 $ 33.0 15%
30 days past due loans as a % of total 4.1% 2.9%
Average loans $ 39.6 $ 33.1 20%
Net write-off rate 5.5% 3.7%
Net finance revenue(D)/average loans 8.7% 9.1%
Cardmember lending - managed basis (E):
Total loans $ 63.7 $ 53.9 18%
30 days past due loans as a % of total 3.7% 2.8%
Average loans $ 64.6 $ 53.4 21%
Net write-off rate 5.3% 3.7%
Net finance revenue(D)/average loans 9.6% 9.3%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $175 million and $26 million for the quarter ended March
31, 2008, and $168 million and none for the quarter ended March 31, 2007,
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 19 for
further discussion of the managed basis presentation.
-14-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Revenues
Discount revenue, net card fees and other $2,605 $2,747 $2,632 $2,642 $2,414
Cardmember lending finance revenue 1,206 1,304 1,224 1,179 1,055
Securitization income, net 444 326 392 332 457
------ ------ ------ ------ ------
Total revenues 4,255 4,377 4,248 4,153 3,926
------ ------ ------ ------ ------
Interest expense
Cardmember lending 345 440 402 363 313
Charge card and other 188 228 257 230 249
------ ------ ------ ------ ------
Revenues net of interest expense 3,722 3,709 3,589 3,560 3,364
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards and cardmember services 1,144 1,739 1,191 1,266 944
Human resources and other operating expenses 906 871 848 827 808
------ ------ ------ ------ ------
Total 2,050 2,610 2,039 2,093 1,752
------ ------ ------ ------ ------
Provisions for losses 881 1,139 638 640 581
------ ------ ------ ------ ------
Pretax segment income (loss) 791 (40) 912 827 1,031
Income tax provision (benefit) 268 (47) 320 247 387
------ ------ ------ ------ ------
Segment income $ 523 $ 7 $ 592 $ 580 $ 644
====== ====== ====== ====== ======
</Table>
-15-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED FINANCIAL INFORMATION
MANAGED BASIS PRESENTATION
(Millions)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Income Statement Data
Discount revenue, net card fees and other:
Reported for the period (GAAP) $2,605 $2,747 $2,632 $2,642 $2,414
Securitization adjustments 73 76 67 80 87
------ ------ ------ ------ ------
Managed discount revenue, net card fees and other $2,678 $2,823 $2,699 $2,722 $2,501
------ ------ ------ ------ ------
Cardmember lending finance revenue:
Reported for the period (GAAP) $1,206 $1,304 $1,224 $1,179 $1,055
Securitization adjustments 903 828 821 724 757
------ ------ ------ ------ ------
Managed cardmember lending finance revenue $2,109 $2,132 $2,045 $1,903 $1,812
------ ------ ------ ------ ------
Securitization income, net:
Reported for the period (GAAP) $ 444 $ 326 $ 392 $ 332 $ 457
Securitization adjustments (444) (326) (392) (332) (457)
------ ------ ------ ------ ------
Managed securitization income, net $ -- $ -- $ -- $ -- $ --
------ ------ ------ ------ ------
Cardmember lending interest expense:
Reported for the period (GAAP) $ 345 $ 440 $ 402 $ 363 $ 313
Securitization adjustments 220 287 302 274 273
------ ------ ------ ------ ------
Managed cardmember lending interest expense $ 565 $ 727 $ 704 $ 637 $ 586
------ ------ ------ ------ ------
Provisions for losses:
Reported for the period (GAAP) $ 881 $1,139 $ 638 $ 640 $ 581
Securitization adjustments 387 263 226 177 205
------ ------ ------ ------ ------
Managed provisions for losses $1,268 $1,402 $ 864 $ 817 $ 786
------ ------ ------ ------ ------
</Table>
See page 19 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
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Card billed business $ 92.1 $101.2 $ 94.2 $ 94.6 $ 85.2
Total cards-in-force (millions) 43.8 43.3 42.9 42.1 41.5
Basic cards-in-force (millions) 32.7 32.3 31.8 31.2 30.7
Average basic cardmember spending (dollars) $2,838 $3,161 $2,986 $3,054 $2,801
U.S. Consumer Travel:
Travel sales $ 0.8 $ 0.7 $ 0.7 $ 0.8 $ 0.7
Travel commissions and fees/sales 7.7% 8.2% 8.5% 8.0% 7.5%
Total segment assets $ 81.9 $ 82.3 $ 79.0 $ 76.1 $ 68.4
Segment capital (A) $ 4.5 $ 4.5 $ 4.5 $ 4.5 $ 4.5
Return on segment capital (B) 37.9% 40.2% 50.5% 49.9% 50.2%
Cardmember receivables:
Total receivables $ 19.2 $ 21.4 $ 19.4 $ 19.8 $ 19.0
90 days past due as a % of total 4.6% 3.9% 3.9% 3.6% 3.8%
Net loss ratio as a % of charge volume 0.35% 0.35% 0.34% 0.30% 0.25%
Cardmember lending - owned basis (C):
Total loans $ 38.1 $ 43.3 $ 40.0 $ 38.3 $ 33.0
30 days past due loans as a % of total 4.1% 3.5% 3.1% 2.7% 2.9%
Average loans $ 39.6 $ 40.9 $ 38.6 $ 35.9 $ 33.1
Net write-off rate 5.5% 4.3% 3.7% 3.7% 3.7%
Net finance revenue(D)/average loans 8.7% 8.4% 8.5% 9.1% 9.1%
Cardmember lending - managed basis (E):
Total loans $ 63.7 $ 66.0 $ 61.5 $ 58.6 $ 53.9
30 days past due loans as a % of total 3.7% 3.2% 2.9% 2.6% 2.8%
Average loans $ 64.6 $ 63.2 $ 60.0 $ 56.3 $ 53.4
Net write-off rate 5.3% 4.3% 3.7% 3.7% 3.7%
Net finance revenue(D)/average loans 9.6% 8.8% 8.9% 9.0% 9.3%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $175 million and $26 million as of March 31, 2008, $175
million and none as of December 31, 2007, and $168 million and none as of
September 30, 2007, June 30, 2007, and March 31, 2007, 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 19 for
further discussion of the managed basis presentation.
-17-
<Page>
(Preliminary)
INTERNATIONAL CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
March 31,
----------------- Percentage
2008 2007 Inc/(Dec)
------- ------- ----------
Revenues
Discount revenue, net card fees and other $ 992 $ 828 20%
Cardmember lending finance revenue 415 310 34
------- -------
Total revenues 1,407 1,138 24
------- -------
Interest expense
Cardmember lending 147 109 35
Charge card and other 65 50 30
------- -------
Revenues net of interest expense 1,195 979 22
------- -------
Expenses
Marketing, promotion, rewards
and cardmember services 358 281 27
Human resources and other operating expenses 491 418 17
------- -------
Total 849 699 21
------- -------
Provisions for losses 229 184 24
------- -------
Pretax segment income 117 96 22
Income tax benefit (16) (6) #
------- -------
Segment income $ 133 $ 102 30
======= =======
</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
March 31,
----------------- Percentage
2008 2007 Inc/(Dec)
------- ------- ----------
Card billed business $ 26.1 $ 21.5 21%
Total cards-in-force (millions) 16.1 15.7 3%
Basic cards-in-force (millions) 11.4 11.2 2%
Average basic cardmember spending (dollars) $2,309 $1,926 20%
International Consumer Travel:
Travel sales (millions) $ 298 $ 241 24%
Travel commissions and fees/sales 8.4% 8.4%
Total segment assets $ 21.3 $ 18.5 15%
Segment capital (millions) (A) $2,041 $1,840 11%
Return on segment capital (B) 16.4% 20.9%
Cardmember receivables:
Total receivables (C) $ 6.3 $ 5.4 17%
90 days past due as a % of total 2.2% 2.4%
Net loss ratio as a % of charge volume 0.21% 0.29%
Cardmember lending:
Total loans (C) $ 11.4 $ 9.3 23%
30 days past due loans as a % of total 3.0% 3.1%
Average loans $ 11.2 $ 9.4 19%
Net write-off rate 5.1% 5.7%
Net finance revenue(D)/average loans 9.6% 8.7%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $519 million and $16 million as of the quarter ended March
31, 2008, and $519 million and $24 million as of the quarter ended March
31, 2007, 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) The March 31, 2008 balance reflects a reclassification of $393 million
from cardmember receivables to cardmember loans for charge card products
with lending features.
(D) 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
-----------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Revenues
Discount revenue, net card fees and other $ 992 $1,022 $ 953 $ 900 $ 828
Cardmember lending finance revenue 415 376 353 333 310
------ ------ ------ ------ ------
Total revenues 1,407 1,398 1,306 1,233 1,138
------ ------ ------ ------ ------
Interest expense
Cardmember lending 147 138 126 120 109
Charge card and other 65 71 66 64 50
------ ------ ------ ------ ------
Revenues net of interest expense 1,195 1,189 1,114 1,049 979
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 358 638 354 293 281
Human resources and other operating expenses 491 512 453 453 418
------ ------ ------ ------ ------
Total 849 1,150 807 746 699
------ ------ ------ ------ ------
Provisions for losses 229 220 197 211 184
------ ------ ------ ------ ------
Pretax segment income (loss) 117 (181) 110 92 96
Income tax benefit (16) (113) (30) (25) (6)
------ ------ ------ ------ ------
Segment income (loss) $ 133 $ (68) $ 140 $ 117 $ 102
====== ====== ====== ====== ======
</Table>
-20-
<Page>
(Preliminary)
INTERNATIONAL CARD SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-----------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Card billed business $ 26.1 $ 28.2 $ 24.7 $ 23.6 $ 21.5
Total cards-in-force (millions) 16.1 16.0 15.8 15.7 15.7
Basic cards-in-force (millions) 11.4 11.3 11.2 11.2 11.2
Average basic cardmember spending (dollars) $2,309 $2,515 $2,209 $2,123 $1,926
International Consumer Travel:
Travel sales $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.2
Travel commissions and fees/sales 8.4% 8.7% 8.8% 8.6% 8.4%
Total segment assets $ 21.3 $ 21.4 $ 20.8 $ 19.7 $ 18.5
Segment capital (A) $ 2.0 $ 2.1 $ 2.0 $ 1.9 $ 1.8
Return on segment capital (B) 16.4% 15.3% 24.4% 22.8% 20.9%
Cardmember receivables:
Total receivables (C) $ 6.3 $ 6.6 $ 6.1 $ 5.9 $ 5.4
90 days past due as a % of total 2.2% 1.8% 1.8% 2.0% 2.4%
Net loss ratio as a % of charge volume 0.21% 0.21% 0.26% 0.28% 0.29%
Cardmember lending:
Total loans (C) $ 11.4 $ 11.2 $ 10.5 $ 10.0 $ 9.3
30 days past due loans as a % of total 3.0% 2.8% 2.7% 2.9% 3.1%
Average loans $ 11.2 $ 10.8 $ 10.2 $ 9.7 $ 9.4
Net write-off rate 5.1% 5.1% 5.5% 6.0% 5.7%
Net finance revenue(D)/average loans 9.6% 8.7% 8.9% 8.9% 8.7%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $519 million and $16 million as of March 31, 2008, $519
million and $17 million as of December 31, 2007, $520 million and $19
million as of September 30, 2007, $519 million and $19 million as of June
30, 2007, and $519 million and $24 million as of March 31, 2007,
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) The March 31, 2008 balance reflects a reclassification of $393 million
from cardmember receivables to cardmember lending for charge card
products with lending features.
(D) 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
March 31,
-------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Revenues
Discount revenue, net card fees and other $1,250 $1,098 14%
------ ------
Interest expense
Charge card and other 106 104 2
------ ------
Revenues net of interest expense 1,144 994 15
------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 86 83 4
Human resources and other operating expenses 778 686 13
------ ------
Total 864 769 12
------ ------
Provisions for losses 62 30 #
------ ------
Pretax segment income 218 195 12
Income tax provision 67 66 2
------ ------
Segment income $ 151 $ 129 17
====== ======
</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
March 31,
-------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Card billed business $ 32.8 $ 29.0 13%
Total cards-in-force (millions) 6.9 6.7 3%
Basic cards-in-force (millions) 6.9 6.7 3%
Average basic cardmember spending (dollars) $4,770 $4,343 10%
Global Corporate Travel:
Travel sales $ 5.4 $ 4.8 13%
Travel commissions and fees/sales 7.4% 7.6%
Total segment assets $ 28.4 $ 20.5 39%
Segment capital (millions) (A) $3,352 $2,128 58%
Return on segment capital (B) 23.2% 25.7%
Cardmember receivables:
Total receivables $ 12.8 $ 11.7 9%
90 days past due as a % of total 1.7% 1.6%
Net loss ratio as a % of charge volume 0.12% 0.10%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $1.6 billion and $344 million as of the quarter ended
March 31, 2008, and $742 million and $123 million as of the quarter ended
March 31, 2007, 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.
-23-
<Page>
(Preliminary)
GLOBAL COMMERCIAL SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Revenues
Discount revenue, net card fees and other $1,250 $1,259 $1,180 $1,210 $1,098
------ ------ ------ ------ ------
Interest expense
Charge card and other 106 131 116 127 104
------ ------ ------ ------ ------
Revenues net of interest expense 1,144 1,128 1,064 1,083 994
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 86 135 86 83 83
Human resources and other operating expenses 778 794 749 746 686
------ ------ ------ ------ ------
Total 864 929 835 829 769
------ ------ ------ ------ ------
Provisions for losses 62 55 42 36 30
------ ------ ------ ------ ------
Pretax segment income 218 144 187 218 195
Income tax provision 67 34 52 56 66
------ ------ ------ ------ ------
Segment income $ 151 $ 110 $ 135 $ 162 $ 129
====== ====== ====== ====== ======
</Table>
-24-
<Page>
(Preliminary)
GLOBAL COMMERCIAL SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Card billed business $ 32.8 $ 32.2 $ 29.9 $ 31.0 $ 29.0
Total cards-in-force (millions) 6.9 6.8 6.8 6.8 6.7
Basic cards-in-force (millions) 6.9 6.8 6.8 6.8 6.7
Average basic cardmember spending (dollars) $4,770 $4,695 $4,389 $4,583 $4,343
Global Corporate Travel:
Travel sales $ 5.4 $ 5.5 $ 4.9 $ 5.3 $ 4.8
Travel commissions and fees/sales 7.4% 7.8% 8.0% 7.5% 7.6%
Total segment assets $ 28.4 $ 21.1 $ 21.8 $ 21.7 $ 20.5
Segment capital (A) $ 3.4 $ 2.2 $ 2.2 $ 2.1 $ 2.1
Return on segment capital (B) 23.2% 25.3% 26.2% 25.3% 25.7%
Cardmember receivables:
Total receivables $ 12.8 $ 11.4 $ 12.5 $ 12.2 $ 11.7
90 days past due as a % of total 1.7% 2.1% 1.6% 1.6% 1.6%
Net loss ratio as a % of charge volume 0.12% 0.12% 0.11% 0.10% 0.10%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $1.6 billion and $344 million as of March 31, 2008, $771
million and $139 million as of December 31, 2007, $767 million and $129
million as of September 30, 2007, $745 million and $120 million as of
June 30, 2007, and $742 million and $123 million as of March 31, 2007,
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
March 31,
--------------- Percentage
2008 2007 Inc/(Dec)
------- ----- ----------
Revenues
Discount revenue, fees and other $ 942 $ 800 18%
------- -----
Interest expense
Cardmember lending (26) (28) (7)
Other (35) (49) (29)
------- -----
Revenues net of interest expense 1,003 877 14
------- -----
Expenses
Marketing and promotion 136 129 5
Human resources and other operating expenses 495 393 26
------- -----
Total 631 522 21
------- -----
Provisions for losses 37 (19) #
------- -----
Pretax segment income 335 374 (10)
Income tax provision 112 138 (19)
------- -----
Segment income $ 223 $ 236 (6)
======= =====
</Table>
-26-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
Quarters Ended
March 31,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Global Card billed business (A) $166.4 $146.2 14%
Global Network & Merchant Services:
Total segment assets $ 6.8 $ 4.5 51%
Segment capital (millions) (B) $1,167 $ 989 18%
Return on segment capital (C) 91.3% 69.2%
Global Network Services:
Card billed business $ 15.7 $ 10.5 50%
Total cards-in-force (millions) 21.2 16.0 33%
(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 and other
intangibles of $27 million and $10 million as of the quarter ended March
31, 2008, and $27 million and $6 million as of the quarter ended March,
31 2007, 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.
-27-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Revenues
Discount revenue, fees and other $ 942 $ 961 $902 $887 $800
------ ------ ---- ---- ----
Interest expense
Cardmember lending (26) (34) (33) (31) (28)
Other (35) (46) (45) (48) (49)
------ ------ ---- ---- ----
Revenues net of interest expense 1,003 1,041 980 966 877
------ ------ ---- ---- ----
Expenses
Marketing and promotion 136 165 151 150 129
Human resources and other operating expenses 495 466 417 389 393
------ ------ ---- ---- ----
Total 631 631 568 539 522
------ ------ ---- ---- ----
Provisions for losses 37 31 23 9 (19)
------ ------ ---- ---- ----
Pretax segment income 335 379 389 418 374
Income tax provision 112 125 123 152 138
------ ------ ---- ---- ----
Segment income $ 223 $ 254 $266 $266 $236
====== ====== ==== ==== ====
</Table>
-28-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------
March 31, December 31, September 30, June 30, March 31,
2008 2007 2007 2007 2007
--------- ------------ ------------- -------- ---------
Global Card billed business (A) $166.4 $177.5 $162.5 $161.1 $146.2
Global Network & Merchant Services:
Total segment assets $ 6.8 $ 6.5 $ 4.6 $ 4.3 $ 4.5
Segment capital (B) $ 1.2 $ 1.2 $ 1.1 $ 1.1 $ 1.0
Return on segment capital (C) 91.3% 90.7% 84.7% 78.0% 69.2%
Global Network Services:
Card billed business $ 15.7 $ 16.0 $ 14.1 $ 12.3 $ 10.5
Total cards-in-force (millions) 21.2 20.3 19.2 17.6 16.0
</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 and other
intangibles of $27 million and $10 million as of March 31, 2008, $27
million and $4 million as of December 31, 2007, $27 million and $5
million as of September 30, 2007, $27 million and $5 million as of June
30, 2007, and $27 million and $6 million as of March 31, 2007,
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.
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