EX-99.2 3 ertables.htm EXHIBIT 99.2
EXHIBIT 99.2
 
 
American Express Company
 (Preliminary)
Consolidated Statements of Income
 
(Millions, except percentages and per share amounts)
 

 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
YOY % change
  
Non-interest revenues
                                    
Discount revenue
  
$
4,519
    
$
4,697
    
$
4,516
    
$
4,824
    
$
4,643
      
(3
)
Net card fees
    
748
      
725
      
747
      
715
      
699
      
7
  
Other fees and commissions
    
713
      
677
      
694
      
702
      
680
      
5
  
Other
    
409
      
515
      
483
      
545
      
486
      
(16
)
Total non-interest revenues
    
6,389
      
6,614
      
6,440
      
6,786
      
6,508
      
(2
)
Interest income
                                                
Interest on loans
    
1,860
      
1,759
      
1,690
      
1,818
      
1,938
      
(4
)
Interest and dividends on investment securities
    
23
      
27
      
34
      
34
      
36
      
(36
)
Deposits with banks and other
    
60
      
35
      
40
      
33
      
31
      
94
  
Total interest income
    
1,943
      
1,821
      
1,764
      
1,885
      
2,005
      
(3
)
Interest expense
                                                
Deposits
    
149
      
148
      
150
      
150
      
150
      
(1
)
Long-term debt and other
    
294
      
265
      
280
      
286
      
275
      
7
  
Total interest expense
    
443
      
413
      
430
      
436
      
425
      
4
  
Net interest income
    
1,500
      
1,408
      
1,334
      
1,449
      
1,580
      
(5
)
Total revenues net of interest expense
    
7,889
      
8,022
      
7,774
      
8,235
      
8,088
      
(2
)
Provisions for losses
                                                
Charge card
    
213
      
200
      
174
      
153
      
169
      
26
  
Card Member loans
    
337
      
404
      
319
      
285
      
227
      
48
  
Other
    
23
      
21
      
11
      
25
      
38
      
(39
)
Total provisions for losses
    
573
      
625
      
504
      
463
      
434
      
32
  
Total revenues net of interest expense after provisions for losses
    
7,316
      
7,397
      
7,270
      
7,772
      
7,654
      
(4
)
   
Expenses
                                                
Marketing and promotion
    
700
      
1,205
      
930
      
788
      
727
      
(4
)
Card Member rewards
    
1,807
      
1,758
      
1,566
      
1,766
      
1,703
      
6
  
Card Member services and other
    
321
      
292
      
278
      
281
      
282
      
14
  
Salaries and employee benefits
    
1,264
      
1,207
      
1,263
      
1,451
      
1,338
      
(6
)
Professional services
    
512
      
721
      
630
      
628
      
604
      
(15
)
Occupancy and equipment
    
475
      
506
      
429
      
438
      
465
      
2
  
Other, net
    
420
      
547
      
439
      
(596
)
    
351
      
20
  
Total expenses
    
5,499
      
6,236
      
5,535
      
4,756
      
5,470
      
1
  
Pretax income
    
1,817
      
1,161
      
1,735
      
3,016
      
2,184
      
(17
)
Income tax provision
    
580
      
336
      
593
      
1,001
      
758
      
(23
)
Net income
  
$
1,237
    
$
825
    
$
1,142
    
$
2,015
    
$
1,426
      
(13
)
Net income attributable to common shareholders (A)
  
$
1,206
    
$
800
    
$
1,112
    
$
1,979
    
$
1,394
      
(13
)
Effective tax rate
    
31.9
%
    
28.9
%
    
34.2
%
    
33.2
%
    
34.7
%
        
 
                                                
Earnings Per Common Share
                                                
Basic
                                                
Net income attributable to common shareholders
  
$
1.34
    
$
0.88
    
$
1.21
    
$
2.11
    
$
1.45
      
(8
)
Average common shares outstanding
    
899
      
910
      
920
      
938
      
961
      
(6
)
Diluted
                                                
Net income attributable to common shareholders
  
$
1.34
    
$
0.88
    
$
1.20
    
$
2.10
    
$
1.45
      
(8
)
Average common shares outstanding
    
903
      
913
      
923
      
941
      
963
      
(6
)
Cash dividends declared per common share
  
$
0.32
    
$
0.32
    
$
0.32
    
$
0.29
    
$
0.29
      
10
  
   

 
 
See Appendix V for footnote references

-1-

American Express Company
(Preliminary)
Consolidated Balance Sheets and Related Statistical Information
 
(Billions, except percentages, per share amounts and where indicated)
 
 
 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
YOY % change
  
Assets
                                    
Cash & cash equivalents
  
$
29
    
$
25
    
$
27
    
$
34
    
$
25
      
16
  
Card Member loans and receivables held for sale
    
-
      
-
      
-
      
-
      
12
      
#
  
Card Member receivables, less reserves
    
47
      
47
      
45
      
45
      
44
      
7
  
Card Member Loans, less reserves
    
62
      
64
      
60
      
59
      
56
      
11
  
Investment securities
    
4
      
3
      
4
      
4
      
4
      
-
  
Other (B)
    
19
      
20
      
17
      
18
      
18
      
6
  
Total assets
  
$
161
    
$
159
    
$
153
    
$
160
    
$
159
      
1
  
   
Liabilities and Shareholders' Equity
                                                
Customer deposits
  
$
54
    
$
53
    
$
54
    
$
54
    
$
56
      
(4
)
Short-term borrowings
    
4
      
6
      
3
      
2
      
3
      
33
  
Long-term debt
    
52
      
47
      
45
      
51
      
47
      
11
  
Other (B)
    
30
      
32
      
30
      
32
      
32
      
(6
)
Total liabilities
    
140
      
138
      
132
      
139
      
138
      
1
  
   
Shareholders' Equity
    
21
      
21
      
21
      
21
      
21
      
-
  
Total liabilities and shareholders' equity
  
$
161
    
$
159
    
$
153
    
$
160
    
$
159
      
1
  
   
Return on average equity (C)
    
25.1
%
    
26.0
%
    
26.1
%
    
26.4
%
    
23.6
%
        
Return on average common equity (C)
    
26.5
%
    
27.5
%
    
27.6
%
    
27.9
%
    
24.8
%
        
Book value per common share (dollars)
  
$
21.62
    
$
20.93
    
$
21.20
    
$
20.67
    
$
20.13
      
7
  
 
                                                

# - Denotes a variance of more than 100 percent.
 
  
 
 
 
 
 
 
 
 
 
 
 
See Appendix V for footnote references
 
-2-


American Express Company
(Preliminary)
Consolidated Capital

 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Shares Outstanding (in millions)
      
Beginning of period
    
904
      
917
      
925
      
951
      
969
  
Repurchase of common shares
    
(11
)
    
(15
)
    
(8
)
    
(27
)
    
(20
)
Net impact of employee benefit plans and others
    
2
      
2
      
-
      
1
      
2
  
End of period
    
895
      
904
      
917
      
925
      
951
  
   
Risk-Based Capital Ratios - Transitional Basel III ($ in billions) (D)
      
Common Equity Tier 1/Risk Weighted Assets (RWA)
    
12.7
%
    
12.3
%
    
13.6
%
    
13.5
%
    
12.6
%
Tier 1
    
13.9
%
    
13.5
%
    
14.9
%
    
14.7
%
    
13.8
%
Total
    
15.6
%
    
15.2
%
    
16.6
%
    
16.4
%
    
15.3
%
   
Common Equity Tier 1
  
$
16.3
    
$
16.1
    
$
16.8
    
$
16.5
    
$
16.5
  
Tier 1 Capital
  
$
17.8
    
$
17.7
    
$
18.4
    
$
18.0
    
$
18.0
  
Tier 2 Capital
  
$
2.2
    
$
2.2
    
$
2.1
    
$
2.1
    
$
2.1
  
Total Capital
  
$
20.0
    
$
19.9
    
$
20.5
    
$
20.1
    
$
20.1
  
RWA
  
$
128.6
    
$
131.0
    
$
123.6
    
$
122.5
    
$
130.9
  
Tier 1 Leverage
    
11.5
%
    
11.6
%
    
11.9
%
    
11.5
%
    
11.5
%
Supplementary Leverage Ratio (SLR) (E)
    
9.9
%
    
10.0
%
    
10.3
%
    
9.7
%
    
9.6
%
Average Total Assets to calculate the Tier 1 Leverage Ratio (F)
  
$
155.0
    
$
152.7
    
$
154.2
    
$
156.6
    
$
157.1
  
Total Leverage Exposure to calculate SLR
  
$
180.5
    
$
177.5
    
$
178.7
    
$
186.0
    
$
188.3
  
   
Risk-Based Capital Ratios - Estimated fully phased-in Basel III ($ in billions) (D) (G)
                                        
RWA
  
$
130.3
    
$
131.9
    
$
124.7
    
$
123.7
    
$
132.2
  
Risk-Based Capital (Common Equity Tier 1)
  
$
16.0
    
$
15.6
    
$
16.3
    
$
15.9
    
$
15.9
  
Risk-Based Capital (Tier 1)
  
$
17.5
    
$
17.2
    
$
17.9
    
$
17.5
    
$
17.5
  
Common Equity Tier 1 ratio (H)
    
12.3
%
    
11.8
%
    
13.1
%
    
12.9
%
    
12.0
%
Tier 1 Risk-Based Capital Ratio (I)
    
13.5
%
    
13.0
%
    
14.3
%
    
14.2
%
    
13.2
%
Supplementary Leverage Ratio (J)
    
9.7
%
    
9.7
%
    
10.0
%
    
9.4
%
    
9.3
%


See Appendix V for footnote references 
-3-

American Express Company
 
(Preliminary)
Selected Card Related Statistical Information
 
 
(Billions, except percentages and where indicated)
 
 

 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
YOY % change
  
Card billed business (K)
                                    
United States
  
$
165.4
    
$
174.4
    
$
164.6
    
$
185.1
    
$
176.3
      
(6
)
Outside the United States
    
86.9
      
88.8
      
86.6
      
84.2
      
77.5
      
12
  
Worldwide
  
$
252.3
    
$
263.2
    
$
251.2
    
$
269.3
    
$
253.8
      
(1
)
Total cards-in-force (L) (millions)
                                                
United States
    
48.2
      
47.5
      
47.1
      
47.0
      
57.9
      
(17
)
Outside the United States
    
63.0
      
62.4
      
61.7
      
61.2
      
60.7
      
4
  
Worldwide
    
111.2
      
109.9
      
108.8
      
108.2
      
118.6
      
(6
)
Basic cards-in-force (L) (millions)
                                                
United States
    
38.1
      
37.4
      
37.0
      
37.0
      
45.1
      
(16
)
Outside the United States
    
52.2
      
51.7
      
51.1
      
50.5
      
50.0
      
4
  
Worldwide
    
90.3
      
89.1
      
88.1
      
87.5
      
95.1
      
(5
)
Average basic Card Member spending (M) (dollars)
                                                
United States
  
$
4,859
    
$
5,181
    
$
4,937
    
$
4,672
    
$
4,249
      
14
  
Outside the United States
  
$
3,283
    
$
3,401
    
$
3,264
    
$
3,319
    
$
3,082
      
7
  
Worldwide
  
$
4,387
    
$
4,647
    
$
4,433
    
$
4,313
    
$
3,952
      
11
  
Card Member loans (N)
                                                
United States
  
$
56.6
    
$
58.3
    
$
53.9
    
$
53.2
    
$
50.7
      
12
  
Outside the United States
  
$
7.0
    
$
7.0
      
6.7
      
6.7
      
6.7
      
4
  
Worldwide
  
$
63.6
    
$
65.3
    
$
60.6
    
$
59.9
    
$
57.4
      
11
  
 
                                                
Average discount rate (O)
    
2.45
%
    
2.44
%
    
2.47
%
    
2.43
%
    
2.44
%
        
Average fee per card (dollars) (M)
  
$
48
    
$
47
    
$
49
    
$
42
    
$
40
      
20
  



 
See Appendix V for footnote references 
 
-4-

American Express Company
(Preliminary)
Selected Credit Related Statistical Information
 
 
 
 
 
 
 
(Billions, except percentages and where indicated)
 
 
 
 
 
 
 

 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
YOY % change
  
Worldwide Card Member receivables (N)
                                    
Total receivables
  
$
47.6
    
$
47.3
    
$
45.3
    
$
45.2
    
$
44.5
      
7
  
Loss reserves (millions):
                                                
Beginning balance
  
$
467
    
$
437
    
$
423
    
$
446
    
$
462
      
1
  
Provisions (P)
    
213
      
200
      
174
      
153
      
169
      
26
  
Net write-offs (Q)
    
(194
)
    
(156
)
    
(159
)
    
(173
)
    
(186
)
    
4
  
Other (R)
    
5
      
(14
)
    
(1
)
    
(3
)
    
1
      
#
  
Ending balance
  
$
491
    
$
467
    
$
437
    
$
423
    
$
446
      
10
  
% of receivables
    
1.0
%
    
1.0
%
    
1.0
%
    
0.9
%
    
1.0
%
        
Net write-off rate, excluding Global Corporate Payments (GCP) (principal only) (S)
    
1.7
%
    
1.3
%
    
1.4
%
    
1.6
%
    
1.9
%
        
Net write-off rate, excluding GCP (principal and fees) (S)
    
2.0
%
    
1.5
%
    
1.6
%
    
1.8
%
    
2.1
%
        
30+ days past due as a % of total, excluding GCP
    
1.5
%
    
1.4
%
    
1.4
%
    
1.3
%
    
1.5
%
        
GCP Net loss ratio (as a % of charge volume) (T)
    
0.11
%
    
0.10
%
    
0.11
%
    
0.09
%
    
0.08
%
        
GCP 90+ days past billing as a % of total (T)
    
0.7
%
    
0.9
%
    
0.8
%
    
0.7
%
    
0.7
%
        
   
Worldwide Card Member loans (N)
                                                
Total loans
  
$
63.6
    
$
65.3
    
$
60.6
    
$
59.9
    
$
57.4
      
11
  
Loss reserves (millions):
                                                
Beginning balance
  
$
1,223
    
$
1,114
    
$
1,091
    
$
1,012
    
$
1,028
      
19
  
Provisions (P)
    
337
      
404
      
319
      
285
      
227
      
48
  
Net write-offs - principal (Q)
    
(272
)
    
(243
)
    
(250
)
    
(223
)
    
(214
)
    
27
  
Net write-offs - interest and fees (Q)
    
(51
)
    
(47
)
    
(48
)
    
(40
)
    
(40
)
    
28
  
Other (R)
    
11
      
(5
)
    
2
      
57
      
11
      
-
  
Ending balance
  
$
1,248
    
$
1,223
    
$
1,114
    
$
1,091
    
$
1,012
      
23
  
Ending reserves - principal
  
$
1,179
    
$
1,160
    
$
1,050
    
$
1,037
    
$
959
      
23
  
Ending reserves - interest and fees
  
$
69
    
$
63
    
$
64
    
$
54
    
$
53
      
30
  
% of loans
    
2.0
%
    
1.9
%
    
1.8
%
    
1.8
%
    
1.8
%
        
% of past due
    
158
%
    
161
%
    
160
%
    
160
%
    
161
%
        
Average loans
  
$
63.9
    
$
62.6
    
$
60.3
    
$
58.8
    
$
57.4
      
11
  
Net write-off rate (principal only) (S)
    
1.7
%
    
1.6
%
    
1.7
%
    
1.5
%
    
1.5
%
        
Net write-off rate (principal, interest and fees) (S)
    
2.0
%
    
1.9
%
    
2.0
%
    
1.8
%
    
1.8
%
        
30+ days past due loans as a % of total
    
1.2
%
    
1.2
%
    
1.1
%
    
1.1
%
    
1.1
%
        
   
Net interest income divided by average loans (U)
    
9.4
%
    
9.0
%
    
8.8
%
    
8.6
%
    
8.9
%
        
Net interest yield on Card Member loans (U)
    
10.3
%
    
9.9
%
    
9.8
%
    
9.5
%
    
9.7
%
        
 
                                                
# - Denotes a variance of more than 100 percent.

 
See Appendix V for footnote references 


-5-

American Express Company
 (Preliminary)
Selected Income Statement information by Segment
 
(Millions)
 
 
 

 
  
U.S. Consumer Services
    
International Consumer and Network Services
    
Global Commercial Services
    
Global Merchant Services
    
Corporate and Other
    
Consolidated
  
 
  
(USCS)
    
(ICNS)
    
(GCS)
    
(GMS)
              
Q1'17
                                    
Non-interest revenues
  
$
1,857
    
$
1,195
    
$
2,271
    
$
1,017
    
$
49
    
$
6,389
  
Interest income
    
1,308
      
235
      
319
      
-
      
81
      
1,943
  
Interest expense
    
146
      
53
      
109
      
(58
)
    
193
      
443
  
Total revenues net of interest expense
    
3,019
      
1,377
      
2,481
      
1,075
      
(63
)
    
7,889
  
Total provision
    
294
      
66
      
208
      
3
      
2
      
573
  
Pretax income (loss)
    
700
      
292
      
630
      
567
      
(372
)
    
1,817
  
Income tax provision (benefit)
    
231
      
74
      
212
      
204
      
(141
)
    
580
  
Net income (loss)
    
469
      
218
      
418
      
363
      
(231
)
    
1,237
  
Q1'16
                                                
Non-interest revenues
  
$
2,029
    
$
1,140
    
$
2,190
    
$
1,041
    
$
108
    
$
6,508
  
Interest income
    
1,391
      
227
      
321
      
-
      
66
      
2,005
  
Interest expense
    
140
      
54
      
95
      
(59
)
    
195
      
425
  
Total revenues net of interest expense
    
3,280
      
1,313
      
2,416
      
1,100
      
(21
)
    
8,088
  
Total provision
    
190
      
71
      
160
      
8
      
5
      
434
  
Pretax income (loss)
    
1,087
      
255
      
761
      
571
      
(490
)
    
2,184
  
Income tax provision (benefit)
    
393
      
67
      
276
      
214
      
(192
)
    
758
  
Net income (loss)
    
694
      
188
      
485
      
357
      
(298
)
    
1,426
  
YOY % change
                                                
Non-interest revenues
    
(8
)
    
5
      
4
      
(2
)
    
(55
)
    
(2
)
Interest income
    
(6
)
    
4
      
(1
)
    
-
      
23
      
(3
)
Interest expense
    
4
      
(2
)
    
15
      
(2
)
    
(1
)
    
4
  
Total revenues net of interest expense
    
(8
)
    
5
      
3
      
(2
)
    
#
      
(2
)
Total provision
    
55
      
(7
)
    
30
      
(63
)
    
(60
)
    
32
  
Pretax income (loss)
    
(36
)
    
15
      
(17
)
    
(1
)
    
(24
)
    
(17
)
Income tax provision (benefit)
    
(41
)
    
10
      
(23
)
    
(5
)
    
(27
)
    
(23
)
Net income (loss)
    
(32
)
    
16
      
(14
)
    
2
      
(22
)
    
(13
)

# - Denotes a variance of more than 100 percent.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
See Appendix V for footnote references 
 
-6-

American Express Company
(Preliminary)
Billed Business Growth Trend
  
 
 
 
 

 
  
YOY % change
  
 
  
Reported
    
FX-Adjusted (V)
  
 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Worldwide (W)
                                                            
Total Billed Business
    
(1
%)
    
(4
%)
    
(3
%)
    
3
%
    
3
%
    
-
      
(3
%)
    
(3
%)
    
4
%
    
6
%
Proprietary billed business
    
(2
)
    
(5
)
    
(5
)
    
2
      
3
      
(2
)
    
(4
)
    
(5
)
    
3
      
4
  
GNS billed business (X)
    
7
      
3
      
10
      
5
      
5
      
6
      
4
      
10
      
11
      
13
  
Airline-related volume (9% of Q1'17 worldwide billed business)
    
1
      
(3
)
    
(6
)
    
(4
)
    
(4
)
    
2
      
(1
)
    
(5
)
    
(3
)
    
(2
)
 
                                                                                
United States (W)
                                                                                
Billed Business
    
(6
)
    
(8
)
    
(9
)
    
2
      
4
      
n/
a
    
n/
a
    
n/
a
    
n/
a
    
n/
a
Proprietary consumer card billed business (Y)
    
(13
)
    
(14
)
    
(15
)
    
-
      
4
      
n/
a
    
n/
a
    
n/
a
    
n/
a
    
n/
a
Proprietary small business and corporate services billed business (Z)
    
2
      
1
      
(1
)
    
4
      
5
      
n/
a
    
n/
a
    
n/
a
    
n/
a
    
n/
a
T&E-related volume (27% of Q1'17 U.S. billed business)
    
(5
)
    
(6
)
    
(7
)
    
(1
)
    
1
      
n/
a
    
n/
a
    
n/
a
    
n/
a
    
n/
a
Non-T&E-related volume (73% of Q1'17 U.S. billed business)
    
(7
)
    
(9
)
    
(9
)
    
3
      
5
      
n/
a
    
n/
a
    
n/
a
    
n/
a
    
n/
a
Airline-related volume (8% of Q1'17 U.S. billed business)
    
(4
)
    
(6
)
    
(11
)
    
(8
)
    
(5
)
    
n/
a
    
n/
a
    
n/
a
    
n/
a
    
n/
a
 
                                                                                
Outside the United States (W)
                                                                                
Billed Business
    
12
      
7
      
10
      
5
      
2
      
13
      
11
      
11
      
10
      
9
  
Japan, Asia Pacific & Australia ("JAPA") billed business
    
16
      
14
      
22
      
12
      
8
      
14
      
13
      
16
      
13
      
13
  
Latin America & Canada ("LACC") billed business
    
10
      
1
      
-
      
(9
)
    
(14
)
    
9
      
7
      
7
      
6
      
5
  
Europe, Middle East & Africa ("EMEA") billed business
    
7
      
1
      
2
      
3
      
3
      
12
      
9
      
7
      
6
      
8
  
Proprietary consumer card billed business (X)
    
8
      
4
      
6
      
4
      
1
      
11
      
10
      
8
      
8
      
8
  
Proprietary small business and corporate services billed business (Z)
    
13
      
7
      
6
      
3
      
(3
)
    
14
      
11
      
6
      
6
      
4
  

 
 
See Appendix V for footnote references 
 
-7-

U.S. Consumer Services
 
 (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)

 
 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
YOY % change
  
Non-interest revenues
  
$
1,857
    
$
1,927
    
$
1,849
    
$
2,069
    
$
2,029
      
(8
)
Interest income
    
1,308
      
1,235
      
1,178
      
1,278
      
1,391
      
(6
)
Interest expense
    
146
      
132
      
125
      
139
      
140
      
4
  
Net interest income
    
1,162
      
1,103
      
1,053
      
1,139
      
1,251
      
(7
)
Total revenues net of interest expense
    
3,019
      
3,030
      
2,902
      
3,208
      
3,280
      
(8
)
Provisions for losses
    
294
      
363
      
275
      
237
      
190
      
55
  
Total revenues net of interest expense after provisions for losses
    
2,725
      
2,667
      
2,627
      
2,971
      
3,090
      
(12
)
Expenses
                                                
Marketing, promotion, rewards, Card Member services and other
    
1,297
      
1,425
      
1,274
      
1,369
      
1,348
      
(4
)
Salaries and employee benefits and other operating expenses
    
728
      
761
      
738
      
(96
)
    
655
      
11
  
Total expenses
    
2,025
      
2,186
      
2,012
      
1,273
      
2,003
      
1
  
Pretax segment income
    
700
      
481
      
615
      
1,698
      
1,087
      
(36
)
Income tax provision
    
231
      
130
      
214
      
631
      
393
      
(41
)
Segment income
  
$
469
    
$
351
    
$
401
    
$
1,067
    
$
694
      
(32
)
Effective tax rate
    
33.0
%
    
27.0
%
    
34.8
%
    
37.2
%
    
36.2
%
        
   
(Billions, except percentages and where indicated)
                                                
Card billed business
  
$
77.5
    
$
84.3
    
$
78.6
    
$
93.4
    
$
89.0
      
(13
)
Total cards-in-force (millions)
    
33.2
      
32.7
      
32.3
      
31.8
      
40.9
      
(19
)
Basic cards-in-force (millions)
    
23.7
      
23.3
      
22.9
      
22.6
      
28.8
      
(18
)
Average basic Card Member spending (dollars) (M)
  
$
3,297
    
$
3,643
    
$
3,452
    
$
3,417
    
$
3,092
      
7
  
   
Total segment assets
  
$
81.2
    
$
87.4
    
$
79.4
    
$
81.3
    
$
86.3
      
(6
)
Segment capital (AA)
  
$
7.1
    
$
7.2
    
$
7.5
    
$
6.8
    
$
7.4
      
(4
)
Return on average segment capital (AA)
    
31.9
%
    
34.9
%
    
37.4
%
    
38.9
%
    
31.8
%
        
   
Card Member receivables: (N)
                                                
Total receivables
  
$
10.9
    
$
12.3
    
$
10.1
    
$
10.6
    
$
10.3
      
6
  
30+ days past due as a % of total
    
1.3
%
    
1.2
%
    
1.4
%
    
1.2
%
    
1.4
%
        
Net write-off rate (principal only) (S)
    
1.5
%
    
1.3
%
    
1.1
%
    
1.3
%
    
1.8
%
        
Net write-off rate (principal and fees) (S)
    
1.7
%
    
1.5
%
    
1.3
%
    
1.6
%
    
2.0
%
        
Card Member loans: (N)
                                                
Total loans
  
$
46.7
    
$
48.8
    
$
44.9
    
$
44.6
    
$
42.4
      
10
  
30+ days past due loans as a % of total
    
1.2
%
    
1.1
%
    
1.1
%
    
1.1
%
    
1.0
%
        
Average loans
  
$
47.2
    
$
46.5
    
$
44.8
    
$
43.5
    
$
42.5
      
11
  
Net write-off rate (principal only) (S)
    
1.7
%
    
1.5
%
    
1.6
%
    
1.5
%
    
1.5
%
        
Net write-off rate (principal, interest and fees) (S)
    
2.0
%
    
1.8
%
    
1.9
%
    
1.7
%
    
1.7
%
        
   
Net interest income divided by average loans (U)
    
9.8
%
    
9.5
%
    
9.4
%
    
9.0
%
    
9.3
%
        
Net interest yield on Card Member loans (U)
    
10.0
%
    
9.6
%
    
9.5
%
    
9.1
%
    
9.5
%
        


 
 
See Appendix V for footnote references 
 
-8-


International Consumer and Network Services
 
(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)

 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
YOY % change
  
Non-interest revenues
  
$
1,195
    
$
1,198
    
$
1,205
    
$
1,242
    
$
1,140
      
5
  
Interest income
    
235
      
230
      
231
      
234
      
227
      
4
  
Interest expense
    
53
      
52
      
55
      
58
      
54
      
(2
)
Net interest income
    
182
      
178
      
176
      
176
      
173
      
5
  
Total revenues net of interest expense
    
1,377
      
1,376
      
1,381
      
1,418
      
1,313
      
5
  
Provisions for losses
    
66
      
92
      
84
      
78
      
71
      
(7
)
Total revenues net of interest expense after provisions for losses
    
1,311
      
1,284
      
1,297
      
1,340
      
1,242
      
6
  
Expenses
                                                
Marketing, promotion, rewards, Card Member services and other
    
505
      
642
      
554
      
500
      
481
      
5
  
Salaries and employee benefits and other operating expenses
    
514
      
560
      
535
      
567
      
506
      
2
  
Total expenses
    
1,019
      
1,202
      
1,089
      
1,067
      
987
      
3
  
Pretax segment income
    
292
      
82
      
208
      
273
      
255
      
15
  
Income tax provision/(benefit)
    
74
      
(2
)
    
53
      
45
      
67
      
10
  
Segment income
  
$
218
    
$
84
    
$
155
    
$
228
    
$
188
      
16
  
Effective tax rate
    
25.3
%
    
(2.4
%)
    
25.5
%
    
16.5
%
    
26.3
%
        
   
(Billions, except percentages and where indicated)
                                                
Card billed business
                                                
    Proprietary
  
$
26.6
    
$
28.1
    
$
26.6
    
$
26.5
    
$
24.7
      
8
  
    Global Network Services (GNS)
    
43.4
      
44.6
    
$
44.8
    
$
43.8
    
$
40.5
      
7
  
Total
  
$
70.0
    
$
72.7
    
$
71.4
    
$
70.3
    
$
65.2
      
7
  
   
Total cards-in-force (millions)
                                                
    Proprietary
    
15.3
      
15.0
      
14.8
      
15.0
      
14.8
      
3
  
    GNS
    
49.0
      
48.6
      
48.1
      
48.0
      
47.7
      
3
  
Total
    
64.3
      
63.6
      
62.9
      
63.0
      
62.5
      
3
  
   
Proprietary basic cards-in-force (millions)
    
10.5
      
10.3
      
10.3
      
10.3
      
10.1
      
4
  
Average basic Card Member spending (dollars) (M)
  
$
2,542
    
$
2,720
    
$
2,596
    
$
2,609
    
$
2,455
      
4
  
   
Total segment assets
  
$
36.1
    
$
35.7
    
$
34.4
    
$
35.0
    
$
34.3
      
5
  
Segment capital (AA)
  
$
2.7
    
$
2.5
    
$
2.7
    
$
2.6
    
$
2.5
      
8
  
Return on average segment capital (AA)
    
26.4
%
    
25.4
%
    
26.4
%
    
25.5
%
    
23.6
%
        
   
Card Member receivables:
                                                
Total receivables
  
$
5.5
    
$
6.0
    
$
5.6
    
$
5.6
    
$
5.6
      
(2
)
30+ days past due as a % of total
    
1.5
%
    
1.3
%
    
1.5
%
    
1.4
%
    
1.5
%
        
Net write-off rate (principal only) (S)
    
2.1
%
    
1.8
%
    
2.0
%
    
2.2
%
    
2.2
%
        
Net write-off rate (principal and fees) (S)
    
2.3
%
    
1.9
%
    
2.2
%
    
2.3
%
    
2.4
%
        
Card Member loans:
                                                
Total loans
  
$
6.8
    
$
7.0
    
$
6.7
    
$
6.6
    
$
6.6
      
3
  
30+ days past due loans as a % of total
    
1.7
%
    
1.6
%
    
1.7
%
    
1.7
%
    
1.8
%
        
Average loans
  
$
6.9
    
$
6.8
    
$
6.7
    
$
6.8
    
$
6.8
      
1
  
Net write-off rate (principal only) (S)
    
2.0
%
    
2.0
%
    
2.1
%
    
2.1
%
    
1.9
%
        
Net write-off rate (principal, interest and fees) (S)
    
2.5
%
    
2.5
%
    
2.6
%
    
2.5
%
    
2.4
%
        
   
Net interest income divided by average loans (U)
    
10.6
%
    
10.5
%
    
10.5
%
    
10.4
%
    
10.3
%
        
Net interest yield on Card Member loans (U)
    
11.1
%
    
11.0
%
    
11.2
%
    
10.8
%
    
10.8
%
        


 
See Appendix V for footnote references 
 
-9-

Global Commercial Services
 
(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)

 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
YOY % change
  
Non-interest revenues
  
$
2,271
    
$
2,297
    
$
2,240
    
$
2,280
    
$
2,190
      
4
  
Interest income
    
319
      
296
      
282
      
310
      
321
      
(1
)
Interest expense
    
109
      
104
      
98
      
104
      
95
      
15
  
Net interest income
    
210
      
192
      
184
      
206
      
226
      
(7
)
Total revenues net of interest expense
    
2,481
      
2,489
      
2,424
      
2,486
      
2,416
      
3
  
Provisions for losses
    
208
      
171
      
134
      
139
      
160
      
30
  
Total revenues net of interest expense after provisions for losses
    
2,273
      
2,318
      
2,290
      
2,347
      
2,256
      
1
  
Expenses
                                                
Marketing, promotion, rewards, Card Member services and other
    
938
      
983
      
808
      
841
      
766
      
22
  
Salaries and employee benefits and other operating expenses
    
705
      
790
      
753
      
596
      
729
      
(3
)
Total expenses
    
1,643
      
1,773
      
1,561
      
1,437
      
1,495
      
10
  
Pretax segment income
    
630
      
545
      
729
      
910
      
761
      
(17
)
Income tax provision
    
212
      
163
      
263
      
334
      
276
      
(23
)
Segment income
  
$
418
    
$
382
    
$
466
    
$
576
    
$
485
      
(14
)
Effective tax rate
    
33.7
%
    
29.9
%
    
36.1
%
    
36.7
%
    
36.3
%
        
   
(Billions, except percentages and where indicated)
                                                
Card billed business
  
$
102.8
    
$
105.1
    
$
100.1
    
$
104.3
    
$
98.5
      
4
  
Total cards-in-force (millions)
    
13.7
      
13.6
      
13.6
      
13.4
      
15.2
      
(10
)
Basic cards-in-force (millions)
    
13.7
      
13.6
      
13.6
      
13.4
      
15.2
      
(10
)
Average basic Card Member spending (dollars) (M)
  
$
7,533
    
$
7,729
    
$
7,386
    
$
7,060
    
$
6,509
      
16
  
 
                                                
Total segment assets
  
$
48.3
    
$
46.5
    
$
46.8
    
$
46.2
    
$
46.7
      
3
  
Segment capital (AA)
  
$
7.2
    
$
7.0
    
$
7.3
    
$
7.7
    
$
7.2
      
-
  
Return on average segment capital (AA)
    
25.4
%
    
26.4
%
    
28.0
%
    
28.1
%
    
28.0
%
        
 
                                                
Card Member receivables (N)
  
$
31.2
    
$
29.0
    
$
29.6
    
$
29.1
    
$
28.6
      
9
  
Card Member loans (N)
  
$
10.0
    
$
9.5
    
$
9.1
    
$
8.7
    
$
8.3
      
20
  
   
Card Member receivables: (N)
                                                
Total receivables - GCP  (T)
  
$
16.6
    
$
14.8
    
$
15.8
    
$
15.3
    
$
15.4
      
8
  
90+ days past billing as a % of total - GCP (T)
    
0.7
%
    
0.9
%
    
0.8
%
    
0.7
%
    
0.7
%
        
Net loss ratio (as a % of charge volume) - GCP (T)
    
0.11
%
    
0.10
%
    
0.11
%
    
0.09
%
    
0.08
%
        
Total receivables - Global Small Business Services (GSBS) (AB)
  
$
14.6
    
$
14.3
    
$
13.8
    
$
13.7
    
$
13.2
      
11
  
30+ days past due as a % of total - GSBS
    
1.6
%
    
1.6
%
    
1.5
%
    
1.4
%
    
1.6
%
        
Net write-off rate (principal only) - GSBS (S)
    
1.8
%
    
1.2
%
    
1.3
%
    
1.6
%
    
1.8
%
        
Net write-off rate (principal and fees) - GSBS (S)
    
2.0
%
    
1.4
%
    
1.5
%
    
1.9
%
    
2.1
%
        
Card Member loans: (N) (AC)
                                                
Total loans - GSBS
  
$
10.0
    
$
9.5
    
$
9.0
    
$
8.6
    
$
8.3
      
20
  
30+ days past due as a % of total - GSBS
    
1.2
%
    
1.1
%
    
1.1
%
    
1.1
%
    
1.0
%
        
Average loans - GSBS
  
$
9.6
    
$
9.3
    
$
8.8
    
$
8.5
    
$
8.1
      
19
  
Net write-off rate (principal only) - GSBS (S)
    
1.6
%
    
1.4
%
    
1.5
%
    
1.3
%
    
1.4
%
        
Net write-off rate (principal, interest and fees) - GSBS (S)
    
1.8
%
    
1.7
%
    
1.8
%
    
1.6
%
    
1.6
%
        
   
Net interest income divided by average loans (U)
    
8.7
%
    
8.3
%
    
8.3
%
    
8.2
%
    
8.8
%
        
Net interest yield on Card Member loans (U)
    
11.1
%
    
10.6
%
    
10.6
%
    
10.3
%
    
10.5
%
        


 
See Appendix V for footnote references 
 
-10-


Global Merchant Services
 
(Preliminary)
Selected Income Statement and Statistical Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Millions, except percentages)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
    
YOY % change
  
Non-interest revenues
  
$
1,017
    
$
1,063
    
$
1,044
    
$
1,087
    
$
1,041
      
(2
)
Interest income
    
-
      
-
      
-
      
1
      
-
      
-
  
Interest expense
    
(58
)
    
(57
)
    
(60
)
    
(61
)
    
(59
)
    
(2
)
Net interest income
    
58
      
57
      
60
      
62
      
59
      
(2
)
Total revenues net of interest expense
    
1,075
      
1,120
      
1,104
      
1,149
      
1,100
      
(2
)
Provisions for losses
    
3
      
4
      
8
      
5
      
8
      
(63
)
Total revenues net of interest expense after provisions for losses
    
1,072
      
1,116
      
1,096
      
1,144
      
1,092
      
(2
)
Expenses
                                                
Marketing, promotion, rewards, Card Member services and other
    
32
      
61
      
55
      
58
      
58
      
(45
)
Salaries and employee benefits and other operating expenses
    
473
      
499
      
470
      
489
      
463
      
2
  
Total expenses
    
505
      
560
      
525
      
547
      
521
      
(3
)
Pretax segment income
    
567
      
556
      
571
      
597
      
571
      
(1
)
Income tax provision
    
204
      
187
      
212
      
224
      
214
      
(5
)
Segment income
  
$
363
    
$
369
    
$
359
    
$
373
    
$
357
      
2
  
Effective tax rate
    
36.0
%
    
33.6
%
    
37.1
%
    
37.5
%
    
37.5
%
        
   
Loyalty Coalition revenue
  
$
102
    
$
106
    
$
106
    
$
104
    
$
94
      
9
  
   
(Billions, except percentages and where indicated)
                                                
Average discount rate (O)
    
2.45
%
    
2.44
%
    
2.47
%
    
2.43
%
    
2.44
%
        
Total segment assets
  
$
24.5
    
$
24.3
    
$
23.2
    
$
24.1
    
$
23.7
      
3
  
Segment capital (AA)
  
$
2.7
    
$
2.5
    
$
2.3
    
$
2.4
    
$
2.4
      
13
  
Return on average segment capital (AA)
    
59.1
%
    
60.2
%
    
59.9
%
    
61.9
%
    
62.7
%
        
 
                                                

 

 
See Appendix V for footnote references 

-11-

American Express Company
(Preliminary)
Appendix I
 
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE)
(Millions, except percentages)
 
 

 
 
  
For the Twelve Months Ended
  
 
  
Mar 31,
    
Dec 31,
    
Sep 30,
    
Jun 30,
    
Mar 31,
  
 
  
2017
    
2016
    
2016
    
2016
    
2016
  
ROE
                              
Net income
  
$
5,219
    
$
5,408
    
$
5,482
    
$
5,606
    
$
5,064
  
Average shareholders' equity
  
$
20,786
    
$
20,805
    
$
20,969
    
$
21,195
    
$
21,499
  
Return on average equity (C)
    
25.1
%
    
26.0
%
    
26.1
%
    
26.4
%
    
23.6
%
   
Reconciliation of ROCE
                                        
Net income
  
$
5,219
    
$
5,408
    
$
5,482
    
$
5,606
    
$
5,064
  
Preferred shares dividends and related accretion
    
80
      
80
      
81
      
82
      
83
  
Earnings allocated to participating share awards and other
    
42
      
43
      
43
      
44
      
38
  
Net income attributable to common shareholders
  
$
5,097
    
$
5,285
    
$
5,358
    
$
5,480
    
$
4,943
  
   
Average shareholders' equity
  
$
20,786
    
$
20,805
    
$
20,969
    
$
21,195
    
$
21,499
  
Average preferred shares
    
1,584
      
1,584
      
1,584
      
1,584
      
1,584
  
Average common shareholders' equity
  
$
19,202
    
$
19,221
    
$
19,385
    
$
19,611
    
$
19,915
  
Return on average common equity (C)
    
26.5
%
    
27.5
%
    
27.6
%
    
27.9
%
    
24.8
%

 
 
 See Appendix V for footnote references 
 
 
-12-

American Express Company
 
(Preliminary)
Appendix II
  
 
Components of Return on Average Segment Capital (ROSC)
(Millions, except percentages)
 
 


 
  
For the Twelve Months Ended
  
 
  
Mar 31,
    
Dec 31,
    
Sep 30,
    
Jun 30,
    
Mar 31,
  
 
  
2017
    
2016
    
2016
    
2016
    
2016
  
U.S. Consumer Services
                              
Segment income
  
$
2,288
    
$
2,513
    
$
2,703
    
$
2,843
    
$
2,390
  
Average segment capital (AA)
  
$
7,184
    
$
7,204
    
$
7,235
    
$
7,318
    
$
7,514
  
Return on average segment capital (AA)
    
31.9
%
    
34.9
%
    
37.4
%
    
38.9
%
    
31.8
%
   
International Consumer and Network Services
                                        
Segment income
  
$
685
    
$
655
    
$
711
    
$
711
    
$
676
  
Average segment capital (AA)
  
$
2,592
    
$
2,577
    
$
2,695
    
$
2,790
    
$
2,861
  
Return on average segment capital (AA)
    
26.4
%
    
25.4
%
    
26.4
%
    
25.5
%
    
23.6
%
   
Global Commercial Services
                                        
Segment income
  
$
1,842
    
$
1,909
    
$
2,014
    
$
2,016
    
$
1,990
  
Average segment capital (AA)
  
$
7,262
    
$
7,237
    
$
7,202
    
$
7,170
    
$
7,107
  
Return on average segment capital (AA)
    
25.4
%
    
26.4
%
    
28.0
%
    
28.1
%
    
28.0
%
   
Global Merchant Services
                                        
Segment income
  
$
1,464
    
$
1,458
    
$
1,453
    
$
1,491
    
$
1,487
  
Average segment capital (AA)
  
$
2,478
    
$
2,420
    
$
2,425
    
$
2,409
    
$
2,371
  
Return on average segment capital (AA)
    
59.1
%
    
60.2
%
    
59.9
%
    
61.9
%
    
62.7
%
 
 
See Appendix V for footnote references 
 
-13-


American Express Company
 
(Preliminary)
Appendix III
  
 
  
 
 
 
Net Interest Yield on Card Member Loans
  
 
 
 
 
 
(Millions, except percentages and where indicated)
 
 
 
 
 
 
 
 
 
 
  
 
 
 

 
  
Q1'17
    
Q4'16
    
Q3'16
    
Q2'16
    
Q1'16
  
Consolidated
                              
Net interest income
  
$
1,500
    
$
1,408
    
$
1,334
    
$
1,449
    
$
1,580
  
Exclude:
                                        
Interest expense not attributable to the Company's Card Member loan portfolio
    
252
      
238
      
261
      
247
      
238
  
Interest income not attributable to the Company's Card Member loan portfolio
    
(130
)
    
(94
)
    
(104
)
    
(102
)
    
(103
)
Adjusted net interest income (AD)
  
$
1,622
    
$
1,552
    
$
1,491
    
$
1,594
    
$
1,715
  
Average loans including Held for Sale (billions)
  
$
63.9
    
$
62.6
    
$
60.3
    
$
67.6
    
$
70.8
  
Net interest income divided by average loans (AE)
    
9.4
%
    
9.0
%
    
8.8
%
    
8.6
%
    
8.9
%
Net interest yield on Card Member loans (AF)
    
10.3
%
    
9.9
%
    
9.8
%
    
9.5
%
    
9.7
%
   
U.S. Consumer Services
                                        
Net interest income
  
$
1,162
    
$
1,103
    
$
1,053
    
$
1,139
    
$
1,251
  
Exclude:
                                        
Interest expense not attributable to the Company's Card Member loan portfolio
    
23
      
21
      
20
      
20
      
19
  
Interest income not attributable to the Company's Card Member loan portfolio
    
(18
)
    
(8
)
    
(6
)
    
(5
)
    
(5
)
Adjusted net interest income (AD)
  
$
1,167
    
$
1,116
    
$
1,067
    
$
1,154
    
$
1,265
  
Average loans including Held for Sale (billions)
  
$
47.2
    
$
46.5
    
$
44.8
    
$
50.8
    
$
53.8
  
Net interest income divided by average loans (AE)
    
9.8
%
    
9.5
%
    
9.4
%
    
9.0
%
    
9.3
%
Net interest yield on Card Member loans (AF)
    
10.0
%
    
9.6
%
    
9.5
%
    
9.1
%
    
9.5
%
   
International Consumer and Network Services
                                        
Net interest income
  
$
182
    
$
178
    
$
176
    
$
176
    
$
173
  
Exclude:
                                        
Interest expense not attributable to the Company's Card Member loan portfolio
    
10
      
11
      
12
      
10
      
11
  
Interest income not attributable to the Company's Card Member loan portfolio
  
$
(3
)
    
-
      
-
      
(4
)
    
(3
)
Adjusted net interest income (AD)
  
$
189
    
$
189
    
$
188
    
$
182
    
$
181
  
Average loans (billions)
  
$
6.9
    
$
6.8
    
$
6.7
    
$
6.8
    
$
6.8
  
Net interest income divided by average loans (AE)
    
10.6
%
    
10.5
%
    
10.5
%
    
10.4
%
    
10.3
%
Net interest yield on Card Member loans (AF)
    
11.1
%
    
11.0
%
    
11.2
%
    
10.8
%
    
10.8
%
   
Global Commercial Services
                                        
Net interest income
  
$
210
    
$
193
    
$
184
    
$
206
    
$
226
  
Exclude:
                                        
Interest expense not attributable to the Company's Card Member loan portfolio
    
83
      
81
      
79
      
80
      
72
  
Interest income not attributable to the Company's Card Member loan portfolio
    
(27
)
    
(26
)
    
(28
)
    
(29
)
    
(28
)
Adjusted net interest income (AD)
  
$
266
    
$
248
    
$
235
    
$
257
    
$
270
  
Average loans including Held for Sale (billions)
  
$
9.7
    
$
9.3
    
$
8.8
    
$
10.0
    
$
10.3
  
Net interest income divided by average loans (AE)
    
8.7
%
    
8.3
%
    
8.3
%
    
8.2
%
    
8.8
%
Net interest yield on Card Member loans (AF)
    
11.1
%
    
10.6
%
    
10.6
%
    
10.3
%
    
10.5
%


 
See Appendix V for footnote references 
 
-14-

American Express Company
 
 
 
 
 
 
(Preliminary)
Appendix IV
 
 
 
 
 
 
 
Reconciliations of Adjustments
 
 
 
 
 
 
 
(Millions, except percentages, per share information and where indicated)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                         
 
Q1'17
  
Q1'16
  
YOY % Change
  
Q4'16
  
Q4'15
  
YOY % Change
  
Adjusted Total Revenues Net of Interest Expense
                        
Total revenues net of interest expense
  
$
7,889
    
$
8,088
      
(2
)
  
$
8,022
    
$
8,391
      
(4
)
Estimated Costco-related revenues (AG)
    
-
      
662
              
-
      
757
          
Adjusted Total revenues net of interest expense
  
$
7,889
    
$
7,426
      
6
    
$
8,022
    
$
7,634
      
5
  
FX-adjusted adjusted Total revenues net of interest expense (V)
  
$
7,889
    
$
7,401
      
7
    
$
8,022
    
$
7,535
      
6
  

 
 
See Appendix V for footnote references 

-15-


Appendix V
(Preliminary)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

All Information in the preceding tables is presented on a basis prepared in accordance with U.S. generally accepted accounting principles (GAAP), unless otherwise indicated.  Certain reclassifications of prior period amounts have been made to conform to the current period presentation.  None of the prior period financial information was materially misstated.

(A)
 
Represents net income, less (i) earnings allocated to participating share awards of $10 million, $6 million, $9 million, $17 million and $11 million in Q1'17, Q4'16, Q3'16, Q2'16 and Q1'16, respectively, and (ii) dividends on preferred shares of $21 million, $19 million, $21 million, $19 million and $21 million in Q1'17, Q4'16, Q3'16, Q2'16 and Q1'16, respectively.
(B)
 
Within assets, "other" includes the following items as presented in the Company’s Consolidated Balance Sheets: Other receivables, Other loans (including merchant financing loans), Premises and equipment and Other assets; and within liabilities, "other" includes the following items: Travelers Cheques and other prepaid products, Accounts payable and Other liabilities.
(C)
 
Return on average equity and return on average common equity are calculated by dividing one year period net income/net income attributable to common shareholders by one year average total shareholders’ equity/average common shareholders' equity, respectively.  Refer to Appendix I for components of return on average equity and return on average common equity.
(D)
 
These ratios represent preliminary estimates for the current period as of the date of First Quarter 2017 Earnings Release and may be revised in the Company’s 2017 Form 10-Q for period ended March 31, 2017.
(E)
 
The Company is required to calculate a Supplementary Leverage Ratio, which is defined as Tier 1 Capital divided by Total Leverage Exposure. The Total Leverage Exposure reflects average total consolidated assets with adjustments for Tier 1 Capital deductions and includes off-balance sheet derivatives exposures, repo-style transactions and credit equivalents of undrawn commitments that are both conditionally and unconditionally cancellable.
(F)
 
Presented for the purpose of calculating the Tier 1 Leverage Ratio.
(G)
 
Estimated Common Equity Tier 1 Capital, Tier 1 Capital, Risk-Weighted Assets and Average Total Assets for Supplementary Leverage Capital purposes under the fully phased-in Basel III rules reflect the Company’s current interpretation of the fully phased-in Basel III rules using the standardized approach. The estimated fully phased-in Basel III amounts could change in the future if the Company’s business changes.
(H)
 
The Common Equity Tier 1 Capital ratio under the fully phased-in Basel III rules is calculated as Common Equity Tier 1 Capital under fully phased-in Basel III rules divided by estimated Risk-Weighted Assets under fully phased-in Basel III rules.
(I)
 
The Tier 1 Risk-Based Capital ratio under the fully phased-in Basel III rules is calculated as Tier 1 Risk-Based Capital under the fully phased-in Basel III rules divided by estimated Risk-Weighted Assets under the fully phased-in Basel III rules.
(J)
 
The fully phased-in Basel III Supplementary Leverage Ratio is calculated by dividing fully phased-in Basel III Tier 1 Capital by Total Leverage Exposure (refer to Footnote E for a definition of Total Leverage Exposure).
(K)
 
Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements (non-proprietary billed business), and certain insurance fees charged on proprietary cards.  In-store spend activity within retail cobrand portfolios in GNS, from which the Company earns no revenue, is not included.  Card billed business is reflected in the United States or outside the United States based on where the issuer is located.
(L)
 
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 supplemental cards issued on that account.  Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee Card Members.  Non-proprietary cards-in-force includes all cards that are issued and outstanding under network partnership agreements, except for retail cobrand Card Member accounts that have no out-of-store spend activity during the prior 12-month period.
(M)
 
Average basic Card Member spending and average fee per card are computed from proprietary card activities only. Average fee per card is computed based on net card fees divided by average worldwide proprietary cards-in-force.
(N)
 
Effective December 1, 2015, the Company reclassified the Card Member loans and receivables related to its cobrand partnerships with Costco in the U.S. and JetBlue, to reflect them as Held for Sale (HFS) on the Consolidated Balance Sheets.  The loans were reclassified at their net carrying amount, inclusive of the related reserves for losses.  Accordingly, Card Member loans and receivables and the related credit metrics are presented excluding the HFS loans and receivables for periods subsequent to the reclassification through the sale completion dates.
(O)
 
This calculation is generally designed to reflect pricing at merchants accepting general-purpose American Express cards.  It represents the percentage of billed business (generated from both proprietary and GNS Card Member spending) retained by the Company from merchants it acquires, or for merchants acquired by a third party on its behalf, net of amounts retained by such third party.
(P)
 
Provisions for principal, interest and/or fee reserve components.
(Q)
 
Consists of principal, interest and/or fees, less recoveries.
(R)
 
Card Member loans includes reserves of $60 million and $7 million in Q2’16 and Q1’16, respectively, related to loan balances of $245 million and $20 million, in the same respective periods, reclassified from HFS to held for investment.  In addition, Other includes foreign currency translation adjustments and other items for all periods.
(S)
 
The Company presents a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention.  In addition, because the Company's practice is to include uncollectible interest and/or fees as part of its total provision for losses, a net write-off rate including principal, interest and/or fees is also presented.
(T)
 
GCP includes global, large and middle markets corporate accounts.
(U)
 
See Appendix III for calculations of net interest yield on Card Member loans, a non-GAAP measure, and net interest income divided by average loans, a GAAP measure, and the Company's rationale for presenting net interest yield on Card Member loans.
(V)
 
FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e. assumes the foreign exchange rates used to determine results for Q1'17 apply to the period(s) against which such results are being compared).  The Company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the Company's performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.
(W)
 
Captions not designated as “proprietary” or “GNS” include both proprietary and GNS data.
(X)
 
Included in ICNS.
(Y)
 
Included in USCS.
(Z)
 
Included in GCS.
(AA)
 
Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.  Return on average segment capital is calculated by dividing one year period segment income by one year average segment capital.  Refer to Appendix II for components of return on average segment capital.
(AB)
 
GSBS includes small business in the U.S. and international small business services.
(AC)
 
International GSBS Card Member loans and associated credit metrics continue to be reported within the international consumer business, in the ICNS segment, due to certain system limitations.  These loans are insignificant to both ICNS and GCS.
(AD)
 
Adjusted net interest income, a non-GAAP measure that represents net interest income attributable to our Card Member loans and loans HFS (which includes, on a GAAP basis, interest that is deemed uncollectible), excluding the impact of interest expense and interest income not attributable to our Card Member loans. The Company believes adjusted net interest income is useful to investors because it is a component of net interest yield on Card Member loans.
(AE)
 
This calculation includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on Card Member loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to Card Member loans, and interest expense attributable to other activities, including Card Member receivables.
(AF)
 
Net interest yield on Card Member loans, a non-GAAP measure that is computed by dividing adjusted net interest income by average loans, computed on an annualized basis.  Reserves and net write-offs related to uncollectible interest are recorded through provisions for losses and are thus not included in the net interest yield calculation. Effective January 1, 2016, net interest yield also includes an insignificant amount of net interest income and loans related to certain non-traditional Card Member loans.  The prior periods have been revised to conform with this presentation.  The Company believes net interest yield on Card Member loans is useful to investors because it provides a measure of profitability of the Company's Card Member loan portfolio.
(AG)
 
Represents estimated Discount revenue from Costco in the U.S. for spend on American Express cards and from other merchants for spend on the Costco cobrand card as well as Other fees and commissions and Interest income from Costco cobrand Card Members.


-16-