EXHIBIT 99.2
All information in the following tables is presented on a basis prepared in
accordance with U.S. generally accepted accounting principles (GAAP), unless
otherwise indicated. Amounts have been revised to reflect American Express
International Deposit Company (AEIDC) activities as discontinued operations
and to remove AEIDC from the Corporate & Other segment.
(Preliminary)
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
<Table>
<Caption>
Quarters Ended Nine Months Ended
September 30, September 30,
--------------- Percentage ----------------- Percentage
2008 2007 Inc/(Dec) 2008 2007 Inc/(Dec)
------ ------ ---------- ------- ------- ----------
Revenues
Discount revenue $3,848 $3,659 5% $11,557 $10,684 8%
Net card fees 577 522 11 1,720 1,506 14
Travel commissions and fees 499 484 3 1,566 1,412 11
Other commissions and fees 573 644 (11) 1,785 1,767 1
Securitization income, net 200 392 (49) 871 1,181 (26)
Other 551 443 24 1,588 1,256 26
------ ------ ------- -------
Total 6,248 6,144 2 19,087 17,806 7
------ ------ ------- -------
Interest income
Cardmember lending finance revenue 1,521 1,581 (4) 4,667 4,463 5
Other 238 239 - 723 756 (4)
------ ------ ------- -------
Total 1,759 1,820 (3) 5,390 5,219 3
------ ------ ------- -------
Total revenues 8,007 7,964 1 24,477 23,025 6
------ ------ ------- -------
Interest expense
Cardmember lending 346 444 (22) 1,127 1,260 (11)
Charge card and other 497 564 (12) 1,491 1,530 (3)
------ ------ ------- -------
Total 843 1,008 (16) 2,618 2,790 (6)
------ ------ ------- -------
Revenues net of interest expense 7,164 6,956 3 21,859 20,235 8
------ ------ ------- -------
Expenses
Marketing, promotion, rewards
and cardmember services 1,929 1,810 7 5,609 5,098 10
Human resources 1,465 1,366 7 4,430 4,001 11
Professional services 608 539 13 1,764 1,634 8
Occupancy and equipment 398 374 6 1,185 1,054 12
Communications 118 118 - 348 342 2
Other, net 200 339 (41) 770 979 (21)
------ ------ ------- -------
Total 4,718 4,546 4 14,106 13,108 8
------ ------ ------- -------
Provisions for losses
Charge card 351 279 26 937 721 30
Cardmember lending 958 579 65 3,304 1,791 84
Other 59 47 26 199 79 #
------ ------ ------- -------
Total 1,368 905 51 4,440 2,591 71
------ ------ ------- -------
Pretax income from continuing operations 1,078 1,505 (28) 3,313 4,536 (27)
Income tax provision 217 383 (43) 748 1,268 (41)
------ ------ ------- -------
Income from continuing operations 861 1,122 (23) 2,565 3,268 (22)
Loss from discontinued operations, net of tax (46) (55) (16) (106) (87) 22
------ ------ ------- -------
Net income $ 815 $1,067 (24) $ 2,459 $ 3,181 (23)
====== ====== ======= =======
</Table>
# - Denotes a variance of more than 100%.
-1-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Billions)
<Table>
<Caption>
September 30, December 31,
2008 2007
------------- ------------
Assets
Cash and cash equivalents $ 16 $ 9
Accounts receivable 41 42
Investments 13 13
Loans 44 53
Other assets 12 11
Assets of discontinued operations 1 22
---- ----
Total assets $127 $150
==== ====
Liabilities and Shareholders' Equity
Short-term debt $ 14 $ 18
Long-term debt 58 55
Other liabilities 41 44
Liabilities of discontinued operations 1 22
---- ----
Total liabilities 114 139
---- ----
Shareholders' equity 13 11
---- ----
Total liabilities and shareholders' equity $127 $150
==== ====
</Table>
-2-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Millions)
<Table>
<Caption>
Quarters Ended Nine Months Ended
September 30, September 30,
--------------- Percentage ----------------- Percentage
2008 2007 Inc/(Dec) 2008 2007 Inc/(Dec)
------ ------ ---------- ------- ------- ----------
REVENUES NET OF INTEREST EXPENSE
U.S. Card Services $3,459 $3,589 (4)% $10,774 $10,513 2%
International Card Services 1,232 1,114 11 $ 3,683 3,142 17
Global Commercial Services 1,200 1,064 13 $ 3,652 3,141 16
Global Network & Merchant Services 1,071 980 9 $ 3,157 2,823 12
------ ------ ------- -------
6,962 6,747 3 21,266 19,619 8
Corporate & Other,
including adjustments and eliminations 202 209 (3) 593 616 (4)
------ ------ ------- -------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE $7,164 $6,956 3 $21,859 $20,235 8
====== ====== ======= =======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
U.S. Card Services $ 364 $ 912 (60) $ 1,092 $ 2,770 (61)
International Card Services 1 110 (99) $ 191 298 (36)
Global Commercial Services 191 187 2 $ 735 600 23
Global Network & Merchant Services 397 389 2 $ 1,187 1,181 1
------ ------ ------- -------
953 1,598 (40) 3,205 4,849 (34)
Corporate & Other 125 (93) # 108 (313) #
------ ------ ------- -------
PRETAX INCOME FROM CONTINUING OPERATIONS $1,078 $1,505 (28) $ 3,313 $ 4,536 (27)
====== ====== ======= =======
NET INCOME (LOSS)
U.S. Card Services $ 244 $ 592 (59) $ 788 $ 1,816 (57)
International Card Services 67 140 (52) $ 315 359 (12)
Global Commercial Services 134 135 (1) $ 512 426 20
Global Network & Merchant Services 258 266 (3) $ 780 768 2
------ ------ ------- -------
703 1,133 (38) 2,395 3,369 (29)
Corporate & Other 158 (11) # 170 (101) #
------ ------ ------- -------
Income from continuing operations 861 1,122 (23) 2,565 3,268 (22)
Loss from discontinued operations, net of tax (46) (55) (16) (106) (87) 22
------ ------ ------- -------
NET INCOME $ 815 $1,067 (24) $ 2,459 $ 3,181 (23)
====== ====== ======= =======
</Table>
# - Denotes a variance of more than 100%.
-3-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
<Table>
<Caption>
Quarters Ended Nine Months Ended
September 30, September 30,
--------------- Percentage ----------------- Percentage
2008 2007 Inc/(Dec) 2008 2007 Inc/(Dec)
------ ------- ---------- ------- ------- ----------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.75 $ 0.96 (22)% $ 2.22 $ 2.77 (20)%
Loss from discontinued operations (0.04) (0.05) (20) (0.09) (0.07) 29
------ ------ ------ ------
Net income $ 0.71 $ 0.91 (22)% $ 2.13 $ 2.70 (21)%
====== ====== ====== ======
Average common shares outstanding (millions) 1,154 1,170 (1)% 1,154 1,179 (2)%
====== ====== ====== ======
DILUTED
Income from continuing operations $ 0.74 $ 0.94 (21)% $ 2.21 $ 2.72 (19)%
Loss from discontinued operations (0.04) (0.04) - (0.09) (0.07) 29
------ ------ ------ ------
Net income $ 0.70 $ 0.90 (22)% $ 2.12 $ 2.65 (20)%
====== ====== ====== ======
Average common shares outstanding (millions) 1,158 1,192 (3)% 1,161 1,202 (3)%
====== ====== ====== ======
Cash dividends declared per common share $ 0.18 $ 0.15 20% $ 0.54 $ 0.45 20%
====== ====== ====== ======
</Table>
SELECTED STATISTICAL INFORMATION
<Table>
<Caption>
Quarters Ended Nine Months Ended
September 30, September 30,
---------------- Percentage ----------------- Percentage
2008 2007 Inc/(Dec) 2008 2007 Inc/(Dec)
------- ------ ---------- ------- ------- ----------
Return on average equity (A) 27.8% 38.2% 27.8% 38.2%
Return on average tangible equity (A) 34.4% 44.9% 34.4% 44.9%
Common shares outstanding (millions) 1,160 1,169 (1)% 1,160 1,169 (1)%
Book value per common share $10.79 $ 9.32 16% $10.79 $ 9.32 16%
Shareholders' equity (billions) $ 12.5 $ 10.9 15% $ 12.5 $ 10.9 15%
</Table>
# - Denotes a variance of more than 100%.
(A) Refer to Appendix I for components of return on average equity and return
on average tangible equity.
-4-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
September 30,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Card billed business (A):
United States $120.3 $115.2 4%
Outside the United States 55.2 47.3 17
------ ------
Total $175.5 $162.5 8
====== ======
Total cards-in-force (millions) (B):
United States 54.3 51.7 5%
Outside the United States 37.8 33.0 15
------ ------
Total 92.1 84.7 9
====== ======
Basic cards-in-force (millions) (B):
United States 42.3 40.1 5%
Outside the United States 32.8 28.3 16
------ ------
Total 75.1 68.4 10
====== ======
Average discount rate (C) 2.56% 2.57%
Average basic cardmember spending (dollars) (D) $3,049 $3,006 1%
Average fee per card (dollars) (D) $ 34 $ 32 6%
</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, 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 September 30, 2008, and $36 for the quarter ended
September 30, 2007, and the amount of amortization excluded for these periods
was $84 million for the quarter ended September 30, 2008, and $71 million for
the quarter ended September 30, 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
September 30,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Worldwide cardmember receivables:
Total receivables $ 37.6 $ 38.5 (2)%
90 days past due as a % of total 3.2% 2.8%
Loss reserves (millions):
Beginning balance $1,146 $ 981 17%
Provision 348 279 25
Net write offs (333) (247) 35
Other (27) (15) 80
------ ------
Ending balance $1,134 $ 998 14
====== ======
% of receivables 3.0% 2.6%
% of 90 days past due 95% 91%
Net loss ratio as a % of charge volume 0.33% 0.26%
Worldwide cardmember lending - owned basis (A):
Total loans $ 45.8 $ 50.5 (9)%
30 days past due loans as a % of total (B) 3.7% 2.5%
Loss reserves (millions):
Beginning balance $2,594 $1,417 83%
Provision 927 543 71
Net write offs - principal (697) (410) 70
Write offs - interest and fees (161) (89) 81
Other (23) 8 #
------ ------
Ending balance $2,640 $1,469 80
====== ======
% of loans 5.8% 2.9%
% of past due (B) 155% 118%
Average loans $ 47.8 $ 48.8 (2)%
Net write-off rate (C) 5.8% 3.4%
Net finance revenue(D)/average loans 9.8% 9.3%
Worldwide cardmember lending - managed basis (E):
Total loans $ 75.6 $ 72.0 5%
30 days past due loans as a % of total (B) 3.8% 2.5%
Loss reserves (millions):
Beginning balance $3,984 $1,917 #%
Provision 1,643 762 #
Net write offs - principal (1,090) (567) 92
Write offs - interest and fees (245) (129) 90
Other (24) 8 #
------ ------
Ending balance $4,268 $1,991 #
====== ======
% of loans 5.7% 2.8%
% of past due (B) 148% 112%
Average loans $ 76.2 $ 70.1 9%
Net write-off rate (C) 5.7% 3.2%
Net finance revenue(D)/average loans 9.7% 9.4%
</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) These metrics were revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to
current balances.
(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention.
(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 for further discussion of the managed
basis presentation.
-6-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Revenues
Discount revenue $3,848 $3,991 $3,718 $3,912 $3,659
Net card fees 577 576 567 544 522
Travel commissions and fees 499 573 494 514 484
Other commissions and fees 573 590 622 650 644
Securitization income, net 200 227 444 326 392
Other 551 577 460 494 443
------ ------ ------ ------ ------
Total 6,248 6,534 6,305 6,440 6,144
------ ------ ------ ------ ------
Interest income
Cardmember lending finance revenue 1,521 1,521 1,625 1,682 1,581
Other 238 256 229 238 239
------ ------ ------ ------ ------
Total 1,759 1,777 1,854 1,920 1,820
------ ------ ------ ------ ------
Total revenues 8,007 8,311 8,159 8,360 7,964
------ ------ ------ ------ ------
Interest expense
Cardmember lending 346 364 417 474 444
Charge card and other 497 492 502 562 564
------ ------ ------ ------ ------
Total 843 856 919 1,036 1,008
------ ------ ------ ------ ------
Revenues net of interest expense 7,164 7,455 7,240 7,324 6,956
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 1,929 1,924 1,756 2,719 1,810
Human resources 1,465 1,495 1,470 1,437 1,366
Professional services 608 606 550 646 539
Occupancy and equipment 398 412 375 382 374
Communications 118 115 115 119 118
Other, net 200 274 296 (590) 339
------ ------ ------ ------ ------
Total 4,718 4,826 4,562 4,713 4,546
------ ------ ------ ------ ------
Provisions for losses
Charge card 351 241 345 419 279
Cardmember lending 958 1,537 809 970 579
Other 59 77 63 64 47
------ ------ ------ ------ ------
Total 1,368 1,855 1,217 1,453 905
------ ------ ------ ------ ------
Pretax income from continuing operations 1,078 774 1,461 1,158 1,505
Income tax provision 217 114 417 300 383
------ ------ ------ ------ ------
Income from continuing operations 861 660 1,044 858 1,122
Loss from discontinued operations, net of tax (46) (7) (53) (27) (55)
------ ------ ------ ------ ------
Net income $ 815 653 $ 991 $ 831 $1,067
====== ====== ====== ====== ======
</Table>
-7-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Millions)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
REVENUES NET OF INTEREST EXPENSE
U.S. Card Services $3,459 $3,593 $3,722 $3,709 $3,589
International Card Services 1,232 1,256 1,195 1,189 1,114
Global Commercial Services 1,200 1,308 1,144 1,128 1,064
Global Network & Merchant Services 1,071 1,083 1,003 1,041 980
------ ------ ------ ------ ------
6,962 7,240 7,064 7,067 6,747
Corporate & Other,
including adjustments and eliminations 202 215 176 257 209
------ ------ ------ ------ ------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE $7,164 $7,455 $7,240 $7,324 $6,956
====== ====== ====== ====== ======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
U.S. Card Services $ 364 $ (63) $ 791 $ (40) $ 912
International Card Services 1 73 117 (181) 110
Global Commercial Services 191 326 218 144 187
Global Network & Merchant Services 397 455 335 379 389
------ ------ ------ ------ ------
953 791 1,461 302 1,598
Corporate & Other 125 (17) - 856 (93)
------ ------ ------ ------ ------
PRETAX INCOME FROM CONTINUING OPERATIONS $1,078 $ 774 1,461 1,158 $1,505
====== ====== ====== ====== ======
NET INCOME (LOSS)
U.S. Card Services $ 244 $ 21 $ 523 $ 7 $ 592
International Card Services 67 115 133 (68) 140
Global Commercial Services 134 227 151 110 135
Global Network & Merchant Services 258 299 223 254 266
------ ------ ------ ------ ------
703 662 1,030 303 1,133
Corporate & Other 158 (2) 14 555 (11)
------ ------ ------ ------ ------
Income from continuing operations 861 660 1,044 858 1,122
Loss from discontinued operations, net of tax (46) (7) (53) (27) (55)
------ ------ ------ ------ ------
NET INCOME $ 815 $ 653 $ 991 $ 831 $1,067
====== ====== ====== ====== ======
</Table>
-8-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.75 $ 0.57 $ 0.91 $ 0.74 $ 0.96
Loss from discontinued operations (0.04) - (0.05) (0.02) (0.05)
------ ------ ------ ------ ------
Net income $ 0.71 $ 0.57 $ 0.86 $ 0.72 $ 0.91
====== ====== ====== ====== ======
Average common shares outstanding (millions) 1,154 1,154 1,153 1,157 1,170
====== ====== ====== ====== ======
DILUTED
Income from continuing operations $ 0.74 $ 0.57 $ 0.90 $ 0.73 $ 0.94
Loss from discontinued operations (0.04) (0.01) (0.05) (0.02) (0.04)
------ ------ ------ ------ ------
Net income $ 0.70 $ 0.56 $ 0.85 $ 0.71 $ 0.90
====== ====== ====== ====== ======
Average common shares outstanding (millions) 1,158 1,163 1,163 1,178 1,192
====== ====== ====== ====== ======
Cash dividends declared per common share $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.15
====== ====== ====== ====== ======
</Table>
SELECTED STATISTICAL INFORMATION
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Return on average equity (A) 27.8% 31.1% 35.9% 37.3% 38.2%
Return on average tangible equity (A) 34.4% 37.7% 42.7% 44.0% 44.9%
Common shares outstanding (millions) 1,160 1,159 1,158 1,158 1,169
Book value per common share $10.79 $10.58 $ 9.94 $ 9.53 $ 9.32
Shareholders' equity (billions) $ 12.5 $12.3 $ 11.5 $ 11.0 $ 10.9
</Table>
(A) Refer to Appendix I for components of return on average equity and return
on average tangible equity.
-9-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Card billed business (A):
United States $120.3 $123.5 $114.6 $123.0 $115.2
Outside the United States 55.2 57.4 51.8 54.5 47.3
------ ------ ------ ------ ------
Total $175.5 $180.9 $166.4 $177.5 $162.5
====== ====== ====== ====== ======
Total cards-in-force (millions) (B):
United States 54.3 53.5 52.9 52.3 51.7
Outside the United States 37.8 36.6 35.1 34.1 33.0
------ ------ ------ ------ ------
Total 92.1 90.1 88.0 86.4 84.7
====== ====== ====== ====== ======
Basic cards-in-force (millions) (B):
United States 42.3 41.9 41.4 40.9 40.1
Outside the United States 32.8 31.6 30.2 29.2 28.3
------ ------ ------ ------ ------
Total 75.1 73.5 71.6 70.1 68.4
====== ====== ====== ====== ======
Average discount rate (C) 2.56% 2.56% 2.57% 2.54% 2.57%
Average basic cardmember spending (dollars) (D) $3,049 $3,199 $2,984 $3,228 $3,006
Average fee per card (dollars) (D) $ 34 $ 34 $ 34 $ 33 $ 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. 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, 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 quarters ended September 30, 2008, June 30, 2008 and March 31,
2008, $37 for the quarter ended December 31, 2007, and $36 for the quarter
ended September 30, 2007. The amount of amortization excluded for these
periods was $84 million for the quarter ended September 30, 2008, $82 million
for the quarter ended June 30, 2008, $77 million for the quarter ended March
31, 2008, $74 million for the quarter ended December 31, 2007, and $71 million
for the quarters ended September 30, 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
------------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Worldwide cardmember receivables:
Total receivables $ 37.6 $ 39.9 $ 39.0 $ 40.1 $ 38.5
90 days past due as a % of total 3.2% 3.0% 3.3% 3.0% 2.8%
Loss reserves (millions):
Beginning balance $ 1,146 $1,221 $1,149 $ 998 $ 981
Provision 348 241 345 419 279
Net write offs (333) (293) (257) (249) (247)
Other (27) (23) (16) (19) (15)
------- ------ ------ ------ ------
Ending balance $ 1,134 $1,146 $1,221 $1,149 $ 998
======= ====== ====== ====== ======
% of receivables 3.0% 2.9% 3.1% 2.9% 2.6%
% of 90 days past due 95% 97% 96% 95% 91%
Net loss ratio as a % of charge volume 0.33% 0.29% 0.25% 0.25% 0.26%
Worldwide cardmember lending - owned basis (A):
Total loans $ 45.8 $ 49.7 $ 49.6 $ 54.5 $ 50.5
30 days past due loans as a % of total (B) 3.7% 3.4% 3.3% 2.8% 2.5%
Loss reserves (millions):
Beginning balance $ 2,594 $1,919 $1,831 $1,469 $1,417
Provision 927 1,506 776 924 543
Net write offs - principal (697) (678) (566) (474) (410)
Write offs - interest and fees (161) (149) (127) (105) (89)
Other (23) (4) 5 17 8
------- ------ ------ ------ ------
Ending balance $ 2,640 $2,594 $1,919 $1,831 $1,469
======= ====== ====== ====== ======
% of loans 5.8% 5.2% 3.9% 3.4% 2.9%
% of past due (B) 155% 155% 118% 120% 118%
Average loans $ 47.8 $ 49.7 $ 50.8 $ 51.7 $ 48.8
Net write-off rate (C) 5.8% 5.5% 4.5% 3.7% 3.4%
Net finance revenue(D)/average loans 9.8% 9.4% 9.6% 9.3% 9.3%
Worldwide cardmember lending - managed basis (E):
Total loans $ 75.6 $ 76.6 $ 75.2 $ 77.2 $ 72.0
30 days past due loans as a % of total (B) 3.8% 3.3% 3.2% 2.8% 2.5%
Loss reserves (millions):
Beginning balance $ 3,984 $2,811 $2,581 $1,991 $1,917
Provision 1,643 2,368 1,231 1,387 762
Net write offs - principal (1,090) (974) (820) (662) (567)
Write offs - interest and fees (245) (217) (187) (151) (129)
Other (24) (4) 6 16 8
------- ------ ------ ------ ------
Ending balance $ 4,268 $3,984 $2,811 $2,581 $1,991
======= ====== ====== ====== ======
% of loans 5.7% 5.2% 3.7% 3.3% 2.8%
% of past due (B) 148% 159% 117% 121% 112%
Average loans $ 76.2 $ 75.9 $ 75.8 $ 74.1 $ 70.1
Net write-off rate (C) 5.7% 5.1% 4.3% 3.6% 3.2%
Net finance revenue(D)/average loans 9.7% 9.5% 10.0% 9.4% 9.4%
</Table>
(A) "Owned," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(B) These metrics were revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to current
balances. Refer to Appendix II for quarterly periods June 2007 - March 2006.
(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. Refer to Appendix II for
quarterly periods June 2007 - March 2006 and for full years 2007 and 2006.
(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 for further discussion of the managed
basis presentation.
-11-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
September 30,
---------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Revenues
Discount revenue, net card fees and other $2,623 $2,632 -%
Cardmember lending finance revenue 1,087 1,224 (11)
Securitization income, net 200 392 (49)
------ ------
Total revenues 3,910 4,248 (8)
------ ------
Interest expense
Cardmember lending 290 402 (28)
Charge card and other 161 257 (37)
------ ------
Revenues net of interest expense 3,459 3,589 (4)
------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 1,245 1,191 5
Human resources and other operating expenses 909 848 7
------ ------
Total 2,154 2,039 6
------ ------
Provisions for losses 941 638 47
------ ------
Pretax segment income 364 912 (60)
Income tax provision 120 320 (63)
------ ------
Segment income $ 244 $ 592 (59)
====== ======
</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
September 30,
---------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
INCOME STATEMENT DATA
Discount revenue, net card fees and other:
Reported for the period (GAAP) $2,623 $2,632 -%
Securitization adjustments 122 67 82
------ ------
Managed discount revenue, net card fees and other $2,745 $2,699 2
------ ------
Cardmember lending finance revenue:
Reported for the period (GAAP) $1,087 $1,224 (11)
Securitization adjustments 883 821 8
------ ------
Managed cardmember lending finance revenue $1,970 $2,045 (4)
------ ------
Securitization income, net:
Reported for the period (GAAP) $ 200 $ 392 (49)
Securitization adjustments (200) (392) (49)
------ ------
Managed securitization income, net $ - $ - -
------ ------
Cardmember lending interest expense:
Reported for the period (GAAP) $ 290 $ 402 (28)
Securitization adjustments 196 302 (35)
------ ------
Managed cardmember lending interest expense $ 486 $ 704 (31)
------ ------
Provisions for losses:
Reported for the period (GAAP) $ 941 $ 638 47
Securitization adjustments 629 226 #
------ ------
Managed provisions for losses $1,570 $ 864 82
------ ------
</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
September 30,
---------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Card billed business $ 97.9 $ 94.2 4%
Total cards-in-force (millions) 44.7 42.9 4%
Basic cards-in-force (millions) 33.4 31.8 5%
Average basic cardmember spending (dollars) $2,950 $2,986 (1)%
U.S. Consumer Travel:
Travel sales (millions) $ 771 $ 743 4%
Travel commissions and fees/sales 8.2% 8.5%
Total segment assets $ 80.5 $ 79.0 2%
Segment capital (millions) (A) $5,069 $4,468 13%
Return on average segment capital (B) 17.0% 50.5%
Return on average tangible segment capital (B) 17.7% 52.5%
Cardmember receivables:
Total receivables $ 18.8 $ 19.4 (3)
90 days past due as a % of total 4.2% 3.9%
Net loss ratio as a % of charge volume 0.47% 0.34%
Cardmember lending - owned basis (C):
Total loans $ 34.6 $ 40.0 (14)%
30 days past due loans as a % of total (D) 3.9% 2.4%
Average loans $ 36.3 $ 38.6 (6)%
Net write-off rate (E) 6.1% 3.0%
Net finance revenue(F)/average loans 8.7% 8.5%
Cardmember lending - managed basis (G):
Total loans $ 64.4 $ 61.5 5%
30 days past due loans as a % of total (D) 3.9% 2.4%
Average loans $ 64.7 $ 60.0 8%
Net write-off rate (E) 5.9% 3.0%
Net finance revenue(F)/average loans 9.1% 8.9%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $175 million and $25 million for the quarter ended September
30, 2008, and $168 million and none for the quarter ended September 30, 2007,
respectively.
(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.
(C) "Owned," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(D) This metric was revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to current
balances.
(E) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention.
(F) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.
(G) 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 for further discussion of the managed
basis presentation.
-14-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Revenues
Discount revenue, net card fees and other $2,623 $2,743 $2,605 $2,747 $2,632
Cardmember lending finance revenue 1,087 1,086 1,206 1,304 1,224
Securitization income, net 200 227 444 326 392
------ ------ ------ ------ ------
Total revenues 3,910 4,056 4,255 4,377 4,248
------ ------ ------ ------ ------
Interest expense
Cardmember lending 290 305 345 440 402
Charge card and other 161 158 188 228 257
------ ------ ------ ------ ------
Revenues net of interest expense 3,459 3,593 3,722 3,709 3,589
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 1,245 1,240 1,144 1,739 1,191
Human resources and other operating expenses 909 900 906 871 848
------ ------ ------ ------ ------
Total 2,154 2,140 2,050 2,610 2,039
------ ------ ------ ------ ------
Provisions for losses 941 1,516 881 1,139 638
------ ------ ------ ------ ------
Pretax segment income (loss) 364 (63) 791 (40) 912
Income tax provision (benefit) 120 (84) 268 (47) 320
------ ------ ------ ------ ------
Segment income $ 244 $ 21 $ 523 $ 7 $ 592
====== ====== ====== ====== ======
</Table>
-15-
<Page>
(Preliminary)
U.S. CARD SERVICES
SELECTED FINANCIAL INFORMATION
MANAGED BASIS PRESENTATION
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
INCOME STATEMENT DATA
Discount revenue, net card fees and other:
Reported for the period (GAAP) $2,623 $2,743 $2,605 $2,747 $2,632
Securitization adjustments 122 95 73 76 67
------ ------ ------ ------ ------
Managed discount revenue, net card fees and other $2,745 $2,838 $2,678 $2,823 $2,699
------ ------ ------ ------ ------
Cardmember lending finance revenue:
Reported for the period (GAAP) $1,087 $1,086 $1,206 $1,304 $1,224
Securitization adjustments 883 824 903 828 821
------ ------ ------ ------ ------
Managed cardmember lending finance revenue $1,970 $1,910 $2,109 $2,132 $2,045
------ ------ ------ ------ ------
Securitization income, net:
Reported for the period (GAAP) $ 200 $ 227 $ 444 $ 326 $ 392
Securitization adjustments (200) (227) (444) (326) (392)
------ ------ ------ ------ ------
Managed securitization income, net $ - $ - $ - $ - $ -
------ ------ ------ ------ ------
Cardmember lending interest expense:
Reported for the period (GAAP) $ 290 $ 305 $ 345 $ 440 $ 402
Securitization adjustments 196 184 220 287 302
------ ------ ------ ------ ------
Managed cardmember lending interest expense $ 486 $ 489 $ 565 $ 727 $ 704
------ ------ ------ ------ ------
Provisions for losses:
Reported for the period (GAAP) $ 941 $1,516 $ 881 $1,139 $ 638
Securitization adjustments 629 409 387 263 226
------ ------ ------ ------ ------
Managed provisions for losses $1,570 $1,925 $1,268 $1,402 $ 864
------ ------ ------ ------ ------
</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
---------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Card billed business $ 97.9 $100.0 $ 92.1 $101.2 $ 94.2
Total cards-in-force (millions) 44.7 44.2 43.8 43.3 42.9
Basic cards-in-force (millions) 33.4 33.0 32.7 32.3 31.8
Average basic cardmember spending (dollars) $2,950 $3,047 $2,838 $3,161 $2,986
U.S. Consumer Travel:
Travel sales $ 0.8 $ 0.9 $ 0.8 $ 0.7 $ 0.7
Travel commissions and fees/sales 8.2% 9.0% 7.7% 8.2% 8.5%
Total segment assets $ 80.5 $ 83.5 $ 81.9 $ 82.3 $ 79.0
Segment capital (A) $ 5.1 $ 4.9 $ 4.5 $ 4.5 $ 4.5
Return on average segment capital (B) 17.0% 25.0% 37.9% 40.2% 50.5%
Return on average tangible segment capital (B) 17.7% 26.1% 39.4% 41.8% 52.5%
Cardmember receivables:
Total receivables $ 18.8 $ 19.8 $ 19.2 $ 21.4 $ 19.4
90 days past due as a % of total 4.2% 4.1% 4.6% 3.9% 3.9%
Net loss ratio as a % of charge volume 0.47% 0.44% 0.35% 0.35% 0.34%
Cardmember lending - owned basis (C):
Total loans $ 34.6 $ 37.9 $ 38.1 $ 43.3 $ 40.0
30 days past due loans as a % of total (D) 3.9% 3.4% 3.4% 2.8% 2.4%
Average loans $ 36.3 $ 38.0 $ 39.6 $ 40.9 $ 38.6
Net write-off rate (E) 6.1% 5.8% 4.5% 3.5% 3.0%
Net finance revenue(F)/average loans 8.7% 8.3% 8.7% 8.4% 8.5%
Cardmember lending - managed basis (G):
Total loans $ 64.4 $ 64.7 $ 63.7 $ 66.0 $ 61.5
30 days past due loans as a % of total (D) 3.9% 3.3% 3.2% 2.8% 2.4%
Average loans $ 64.7 $ 64.2 $ 64.6 $ 63.2 $ 60.0
Net write-off rate(E) 5.9% 5.3% 4.3% 3.4% 3.0%
Net finance revenue(F)/average loans 9.1% 8.9% 9.6% 8.8% 8.9%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $175 million and $25 million as of September 30, 2008, $175
million and $22 million as of June 30, 2008, $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, respectively.
(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.
(C) "Owned," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(D) This metric was revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to current
balances. Refer to Appendix III for quarterly periods June 2007 - March 2006.
(E) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. Refer to Appendix III for
quarterly periods June 2007 - March 2006 and for full years 2007 and 2006.
(F) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.
(G) 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 for further discussion of the managed
basis presentation.
-17-
<Page>
(Preliminary)
INTERNATIONAL CARD SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
September 30,
-------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Revenues
Discount revenue, net card fees and other $1,023 $ 953 7%
Cardmember lending finance revenue 432 353 22
------ ------
Total revenues 1,455 1,306 11
------ ------
Interest expense
Cardmember lending 157 126 25
Charge card and other 66 66 -
------ ------
Revenues net of interest expense 1,232 1,114 11
------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 388 354 10
Human resources and other operating expenses 527 453 16
------ ------
Total 915 807 13
------ ------
Provisions for losses 316 197 60
------ ------
Pretax segment income 1 110 (99)
Income tax benefit (66) (30) #
------ ------
Segment income $ 67 $ 140 (52)
====== ======
</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
September 30,
--------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Card billed business $ 27.5 $ 24.7 11%
Total cards-in-force (millions) 16.4 15.8 4%
Basic cards-in-force (millions) 11.5 11.2 3%
Average basic cardmember spending (dollars) $2,393 $2,209 8%
International Consumer Travel:
Travel sales (millions) $ 334 $ 283 18%
Travel commissions and fees/sales 8.4% 8.8%
Total segment assets $ 22.6 $ 20.8 9%
Segment capital (millions) (A) $2,257 $1,983 14%
Return on average segment capital (B) 11.8% 24.4%
Return on average tangible segment capital (B) 15.9% 34.3%
Cardmember receivables:
Total receivables $ 6.1 $ 6.1 -%
90 days past due as a % of total 2.7% 1.8%
Net loss ratio as a % of charge volume 0.25% 0.26%
Cardmember lending:
Total loans $ 11.1 $ 10.5 6%
30 days past due loans as a % of total 3.3% 2.7%
Average loans $ 11.5 $ 10.2 13%
Net write-off rate (C) 5.0% 4.8%
Net finance revenue(D)/average loans 9.5% 8.9%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $517 million and $41 million as of the quarter ended September
30, 2008, and $520 million and $19 million as of the quarter ended September
30, 2007, respectively.
(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.
(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention.
(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
---------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Revenues
Discount revenue, net card fees and other $1,023 $1,043 $ 992 $1,022 $ 953
Cardmember lending finance revenue 432 433 415 376 353
------ ------ ------ ------ ------
Total revenues 1,455 1,476 1,407 1,398 1,306
------ ------ ------ ------ ------
Interest expense
Cardmember lending 157 158 147 138 126
Charge card and other 66 62 65 71 66
------ ------ ------ ------ ------
Revenues net of interest expense 1,232 1,256 1,195 1,189 1,114
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 388 404 358 638 354
Human resources and other operating expenses 527 537 491 512 453
------ ------ ------ ------ ------
Total 915 941 849 1,150 807
------ ------ ------ ------ ------
Provisions for losses 316 242 229 220 197
------ ------ ------ ------ ------
Pretax segment income (loss) 1 73 117 (181) 110
Income tax benefit (66) (42) (16) (113) (30)
------ ------ ------ ------ ------
Segment income (loss) $ 67 $ 115 $ 133 $ (68) $ 140
====== ====== ====== ====== ======
</Table>
-20-
<Page>
(Preliminary)
INTERNATIONAL CARD SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------ -------- --------- ------------ -------------
Card billed business $ 27.5 $ 28.3 $ 26.1 $ 28.2 $ 24.7
Total cards-in-force (millions) 16.4 16.3 16.1 16.0 15.8
Basic cards-in-force (millions) 11.5 11.5 11.4 11.3 11.2
Average basic cardmember spending (dollars) $2,393 $2,476 $2,309 $2,515 $2,209
International Consumer Travel:
Travel sales $ 0.3 $ 0.4 $ 0.3 $ 0.3 $ 0.3
Travel commissions and fees/sales 8.4% 8.1% 8.4% 8.7% 8.8%
Total segment assets $ 22.6 $ 22.7 $ 21.3 $ 21.4 $ 20.8
Segment capital (A) $ 2.3 $ 2.2 $ 2.0 $ 2.1 $ 2.0
Return on average segment capital (B) 11.8% 15.8% 16.4% 15.3% 24.4%
Return on average tangible segment capital (B) 15.9% 21.5% 22.6% 21.4% 34.3%
Cardmember receivables:
Total receivables (C) $ 6.1 $ 6.6 $ 6.3 $ 6.6 $ 6.1
90 days past due as a % of total 2.7% 2.4% 2.2% 1.8% 1.8%
Net loss ratio as a % of charge volume 0.25% 0.22% 0.21% 0.21% 0.26%
Cardmember lending:
Total loans (C) $ 11.1 $ 11.8 $ 11.4 $ 11.2 $ 10.5
30 days past due loans as a % of total 3.3% 3.1% 3.0% 2.8% 2.7%
Average loans $ 11.5 $ 11.6 $ 11.2 $ 10.8 $ 10.2
Net write-off rate (D) 5.0% 4.5% 4.4% 4.4% 4.8%
Net finance revenue(E)/average loans 9.5% 9.5% 9.6% 8.7% 8.9%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $517 million and $41 million as of September 30, 2008, $519
million and $25 million as of June 30, 2008, $519 million and $16 million as
of March 31, 2008, $519 million and $17 million as of December 31, 2007, and
$520 million and $19 million as of September 30, 2007, respectively.
(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.
(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) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. Refer to Appendix III for
quarterly periods June 2007 - March 2006 and for full years 2007 and 2006.
(E) 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
September 30,
---------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Revenues
Discount revenue, net card fees and other $1,309 $1,180 11%
------ ------
Interest expense
Charge card and other 109 116 (6)
------ ------
Revenues net of interest expense 1,200 1,064 13
------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 113 86 31
Human resources and other operating expenses 836 749 12
------ ------
Total 949 835 14
------ ------
Provisions for losses 60 42 43
------ ------
Pretax segment income 191 187 2
Income tax provision 57 52 10
------ ------
Segment income $ 134 $ 135 (1)
====== ======
</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
September 30,
---------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Card billed business $ 32.3 $ 29.9 8%
Total cards-in-force (millions) 7.0 6.8 3%
Basic cards-in-force (millions) 7.0 6.8 3%
Average basic cardmember spending (dollars) $4,611 $4,389 5%
Global Corporate Travel:
Travel sales $ 5.1 $ 4.9 4%
Travel commissions and fees/sales 8.0% 8.0%
Total segment assets $ 23.6 $ 21.8 8%
Segment capital (millions) (A) $3,564 $2,230 60%
Return on average segment capital (B) 21.2% 26.2%
Return on average tangible segment capital (B) 43.9% 44.3%
Cardmember receivables:
Total receivables $ 12.5 $ 12.5 -%
90 days past due as a % of total 1.8% 1.6%
Net loss ratio as a % of charge volume 0.15% 0.11%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $1.6 billion and $362 million as of the quarter ended September
30, 2008, and $767 million and $129 million as of the quarter ended September
30, 2007, respectively.
(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.
-23-
<Page>
(Preliminary)
GLOBAL COMMERCIAL SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Revenues
Discount revenue, net card fees and other $1,309 $1,425 $1,250 $1,259 $1,180
------ ------ ------ ------ ------
Interest expense
Charge card and other 109 117 106 131 116
------ ------ ------ ------ ------
Revenues net of interest expense 1,200 1,308 1,144 1,128 1,064
------ ------ ------ ------ ------
Expenses
Marketing, promotion, rewards
and cardmember services 113 99 86 135 86
Human resources and other operating expenses 836 843 778 794 749
------ ------ ------ ------ ------
Total 949 942 864 929 835
------ ------ ------ ------ ------
Provisions for losses 60 40 62 55 42
------ ------ ------ ------ ------
Pretax segment income 191 326 218 144 187
Income tax provision 57 99 67 34 52
------ ------ ------ ------ ------
Segment income $ 134 $ 227 $ 151 $ 110 $ 135
====== ====== ====== ====== ======
</Table>
-24-
<Page>
(Preliminary)
GLOBAL COMMERCIAL SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Card billed business $ 32.3 $ 35.4 $ 32.8 $ 32.2 $ 29.9
Total cards-in-force (millions) 7.0 7.0 6.9 6.8 6.8
Basic cards-in-force (millions) 7.0 7.0 6.9 6.8 6.8
Average basic cardmember spending (dollars) $4,611 $5,083 $4,770 $4,695 $4,389
Global Corporate Travel:
Travel sales $ 5.1 $ 6.2 $ 5.4 $ 5.5 $ 4.9
Travel commissions and fees/sales 8.0% 7.5% 7.4% 7.8% 8.0%
Total segment assets $ 23.6 $ 25.8 $ 28.4 $ 21.1 $ 21.8
Segment capital (A) $ 3.6 $ 3.3 $ 3.4 $ 2.2 $ 2.2
Return on average segment capital (B) 21.2% 23.6% 23.2% 25.3% 26.2%
Return on average tangible segment capital (B) 43.9% 46.7% 42.4% 43.3% 44.3%
Cardmember receivables:
Total receivables $ 12.5 $ 13.4 $ 12.8 $ 11.4 $ 12.5
90 days past due as a % of total 1.8% 1.6% 1.7% 2.1% 1.6%
Net loss ratio as a % of charge volume 0.15% 0.10% 0.12% 0.12% 0.11%
</Table>
(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $1.6 billion and $362 million as of September 30, 2008, $1.6
billion and $345 million as of June 30, 2008, $1.6 billion and $344 million as
of March 31, 2008, $771 million and $139 million as of December 31, 2007, and
$767 million and $129 million as of September 30, 2007, respectively.
(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.
-25-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
September 30,
---------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Revenues
Discount revenue, fees and other $1,016 $902 13%
------ ----
Interest expense
Cardmember lending (24) (33) (27)
Other (31) (45) (31)
------ ----
Revenues net of interest expense 1,071 980 9
------ ----
Expenses
Marketing and promotion 150 151 (1)
Human resources and other operating expenses 481 417 15
------ ----
Total 631 568 11
------ ----
Provisions for losses 43 23 87
------ ----
Pretax segment income 397 389 2
Income tax provision 139 123 13
------ ----
Segment income $ 258 $266 (3)
====== ====
</Table>
# - Denotes a variance of more than 100%.
-26-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
September 30,
---------------- Percentage
2008 2007 Inc/(Dec)
------ ------ ----------
Global Card billed business (A) $175.5 $162.5 8%
Global Network & Merchant Services:
Total segment assets $ 8.0 $ 4.6 74%
Segment capital (millions) (B) $1,437 $1,125 28%
Return on average segment capital (C) 82.4% 84.7%
Return on average tangible segment capital (C) 84.7% 87.5%
Global Network Services:
Card billed business $ 18.2 $ 14.1 29%
Total cards-in-force (millions) 24.0 19.2 25
</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 $28 million and $7 million as of the quarter ended September
30, 2008, and $27 million and $5 million as of the quarter ended September 30,
2007, respectively.
(C) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.
-27-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED INCOME STATEMENT DATA
(Millions)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Revenues
Discount revenue, fees and other $1,016 $1,026 $ 942 $ 961 $902
------ ------ ------ ------ ----
Interest expense
Cardmember lending (24) (25) (26) (34) (33)
Other (31) (32) (35) (46) (45)
------ ------ ------ ------ ----
Revenues net of interest expense 1,071 1,083 1,003 1,041 980
------ ------ ------ ------ ----
Expenses
Marketing and promotion 150 149 136 165 151
Human resources and other operating expenses 481 422 495 466 417
------ ------ ------ ------ ----
Total 631 571 631 631 568
------ ------ ------ ------ ----
Provisions for losses 43 57 37 31 23
------ ------ ------ ------ ----
Pretax segment income 397 455 335 379 389
Income tax provision 139 156 112 125 123
------ ------ ------ ------ ----
Segment income $ 258 $ 299 $ 223 $ 254 $266
====== ====== ====== ====== ====
</Table>
-28-
<Page>
(Preliminary)
GLOBAL NETWORK & MERCHANT SERVICES
SELECTED STATISTICAL INFORMATION
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
-------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
Global Card billed business (A) $175.5 $180.9 $166.4 $177.5 $162.5
Global Network & Merchant Services:
Total segment assets $ 8.0 $ 7.2 $ 6.8 $ 6.5 $ 4.6
Segment capital (B) $ 1.4 $ 1.4 $ 1.2 $ 1.2 $ 1.1
Return on average segment capital (C) 82.4% 88.1% 91.3% 90.7% 84.7%
Return on average tangible segment capital (C) 84.7% 90.7% 94.2% 93.4% 87.5%
Global Network Services:
Card billed business $ 18.2 $ 17.5 $ 15.7 $ 16.0 $ 14.1
Total cards-in-force (millions) 24.0 22.6 21.2 20.3 19.2
</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 $28 million and $7 million as of September 30, 2008, $28
million and $11 million as of June 30, 2008, $27 million and $10 million as of
March 31, 2008, $27 million and $4 million as of December 31, 2007, and $27
million and $5 million as of September 30, 2007, respectively.
(C) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.
-29-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
COMPONENTS OF RETURN ON AVERAGE EQUITY,
RETURN ON AVERAGE TANGIBLE EQUITY, RETURN ON AVERAGE SEGMENT CAPITAL, AND
RETURN ON AVERAGE TANGIBLE SEGMENT CAPITAL
APPENDIX I
(Millions)
<Table>
<Caption>
Quarters Ended
------------------------------------------------------------------------
September 30, June 30, March 31, December 31, September 30,
2008 2008 2008 2007 2007
------------- -------- --------- ------------ -------------
CONSOLIDATED
Total net income $ 3,290 $ 3,542 $ 3,946 $ 4,012 $ 4,103
Average shareholders' equity $11,833 11,396 10,977 10,751 10,733
Average goodwill and other intangibles 2,264 2,006 1,745 1,643 1,603
------- ------- ------- ------- -------
Average tangible shareholders' equity $ 9,569 $ 9,390 $ 9,232 $ 9,108 $ 9,130
------- ------- ------- ------- -------
Return on average equity (A) 27.8% 31.1% 35.9% 37.3% 38.2%
Return on average tangible equity (A) 34.4% 37.7% 42.7% 44.0% 44.9%
U.S. CARD SERVICES
Total segment income $795 $ 1,143 $ 1,702 $ 1,823 $ 2,289
Average segment capital 4,672 4,567 4,496 4,531 4,532
Average goodwill and other intangibles 188 182 176 170 169
------- ------- ------- ------- -------
Average tangible segment capital $ 4,484 $ 4,385 $ 4,320 $ 4,361 $ 4,363
------- ------- ------- ------- -------
Return on average segment capital (A) 17.0% 25.0% 37.9% 40.2% 50.5%
Return on average tangible segment capital (A) 17.7% 26.1% 39.4% 41.8% 52.5%
INTERNATIONAL CARD SERVICES
Total segment income $ 247 $ 321 $ 322 $ 291 $ 458
Average segment capital 2,102 2,032 1,964 1,900 1,875
Average goodwill and other intangibles 544 538 538 539 541
------- ------- ------- ------- -------
Average tangible segment capital $ 1,558 $ 1,494 $ 1,426 $ 1,361 $ 1,334
------- ------- ------- ------- -------
Return on average segment capital (A) 11.8% 15.8% 16.4% 15.3% 24.4%
Return on average tangible segment capital (A) 15.9% 21.5% 22.6% 21.4% 34.3%
GLOBAL COMMERCIAL SERVICES
Total segment income $ 622 $ 623 $ 558 $ 536 $ 543
Average segment capital 2,933 2,637 2,407 2,118 2,069
Average goodwill and other intangibles 1,515 1,303 1,092 881 843
------- ------- ------- ------- -------
Average tangible segment capital $ 1,418 $ 1,334 $ 1,315 $ 1,237 $ 1,226
------- ------- ------- ------- -------
Return on average segment capital (A) 21.2% 23.6% 23.2% 25.3% 26.2%
Return on average tangible segment capital (A) 43.9% 46.7% 42.4% 43.3% 44.3%
GLOBAL NETWORK & MERCHANT SERVICES
Total segment income $ 1,034 $ 1,042 $ 1,009 $ 1,022 $ 969
Average segment capital 1,255 1,183 1,105 1,127 1,144
Average goodwill and other intangibles 34 34 34 33 36
------- ------- ------- ------- -------
Average tangible segment capital $ 1,221 $ 1,149 $ 1,071 $ 1,094 $ 1,108
------- ------- ------- ------- -------
Return on average segment capital (A) 82.4% 88.1% 91.3% 90.7% 84.7%
Return on average tangible segment capital (A) 84.7% 90.7% 94.2% 93.4% 87.5%
</Table>
(A) Return on average equity and return on average segment capital are
calculated by dividing one year period net income/segment income by one year
average total shareholders' equity/average segment capital, respectively.
Return on average tangible equity and return on average tangible segment
capital is computed in the same manner as return on average equity and return
on average segment capital except the computation of average tangible
shareholders' equity and average tangible segment capital excludes average
goodwill and other intangibles.
-30-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONSOLIDATED SELECTED STATISTICAL INFORMATION
APPENDIX II
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------------------------
June 30, March 31, December 31 September 30, June 30, March 31,
2007 2007 2006 2006 2006 2006
-------- --------- ----------- ------------- -------- ---------
Worldwide cardmember lending - owned basis (A):
30 days past due loans as a % of total (B) 2.2% 2.4% 2.2% 2.3% 2.2% 2.1%
Loss reserves (millions):
Beginning balance $1,271 $1,171 $1,126 $1,086 $1,053 $ 996
Provision 606 542 451 381 376 299
Net write offs - principal (390) (362) (351) (310) (297) (243)
Write offs - interest and fees (83) (77) (54) (43) (34) (27)
Other 13 (3) (1) 12 (12) 28
------ ------ ------ ------ ------ ------
Ending balance $1,417 $1,271 $1,171 $1,126 $1,086 $1,053
====== ====== ====== ====== ====== ======
% of past due (B) 131% 123% 121% 130% 138% 152%
Net write-off rate (C) 3.4% 3.4% 3.5% 3.3% 3.4% 3.0%
Worldwide cardmember lending - managed basis (D):
30 days past due loans as a % of total (B) 2.3% 2.5% 2.3% 2.3% 2.2% 2.2%
Loss reserves (millions):
Beginning balance $1,787 $1,622 $1,571 $1,546 $1,554 $1,469
Provision 780 797 608 512 478 393
Net write offs - principal (540) (511) (471) (424) (406) (346)
Write offs - interest and fees (122) (117) (86) (74) (68) (58)
Other 12 (4) - 11 (12) 96
------ ------ ------ ------ ------ ------
Ending balance $1,917 $1,787 $1,622 $1,571 $1,546 $1,554
====== ====== ====== ====== ====== ======
% of past due (B) 124% 115% 111% 116% 125% 132%
Net write-off rate (C) 3.3% 3.3% 3.1% 2.9% 2.9% 2.6%
</Table>
(A) "Owned," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(B) These metrics were revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to
current balances.
(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. The owned and managed net
write-off rates for 2007 were 3.5% and 3.3%, respectively, and for 2006 were
3.3% and 2.9%, respectively.
(D) 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.
-31-
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
U.S. CARD SERVICES AND INTERNATIONAL CARD SERVICES
SELECTED STATISTICAL INFORMATION
APPENDIX III
(Billions, except percentages and where indicated)
<Table>
<Caption>
Quarters Ended
---------------------------------------------------------------------------------
June 30, March 31, December 31 September 30, June 30, March 31,
2007 2007 2006 2006 2006 2006
-------- --------- ----------- ------------- -------- ---------
USCS Cardmember lending - owned basis (A):
30 days past due loans as a % of total (B) 2.1% 2.3% 2.1% 2.0% 1.8% 1.7%
Net write-off rate (C) 2.9% 2.9% 2.8% 2.5% 2.4% 2.1%
USCS Cardmember lending - managed basis (D):
30 days past due loans as a % of total (B) 2.1% 2.4% 2.2% 2.2% 2.0% 2.0%
Net write-off rate (C) 2.9% 2.9% 2.6% 2.4% 2.3% 2.0%
ICS Cardmember lending:
Net write-off rate (C) 5.2% 5.0% 5.7% 5.9% 6.4% 5.5%
</Table>
(A) "Owned," a GAAP basis measurement, reflects only cardmember loans included
in the Company's Consolidated Balance Sheets.
(B) This metric was revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to
current balances.
(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. The owned and managed net
write-off rates for U.S. Card Services for 2007 were 3.1% and 3.1%,
respectively, and for 2006 were 2.5% and 2.3%, respectively. The net write-off
rates for International Card Services for 2007 and 2006 were 4.8% and 5.9%,
respectively.
(D) 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.
-32-