New York
|
|
1-7657
|
|
13-4922250
|
(State or other jurisdiction
of incorporation or organization)
|
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
200 Vesey Street
New York, New York
|
|
10285
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Not Applicable
|
(Former name or former address, if changed since last report)
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Exhibit
|
Description
|
99.1
|
Press Release, dated July 19, 2017, of American Express Company regarding its financial results for the second quarter of 2017.
|
99.2
|
Additional financial information relating to the financial results of American Express Company for the second quarter of 2017.
|
|
AMERICAN EXPRESS COMPANY
|
|
|
(REGISTRANT)
|
|
|
|
|
|
By:
|
/s/ Carol V. Schwartz
|
|
|
Name: Carol V. Schwartz
|
|
|
Title: Secretary
|
Exhibit
|
Description
|
99.1
|
Press Release, dated July 19, 2017, of American Express Company regarding its financial results for the second quarter of 2017.
|
99.2
|
Additional financial information relating to the financial results of American Express Company for the second quarter of 2017.
|
FOR IMMEDIATE RELEASE
|
·
|
A consumer business generating strong growth internationally and in the U.S. where we have strengthened our product offerings in the premium sector.
|
·
|
A lending business that has broadened our Card Member relationships and successfully balanced growth with strong credit quality.
|
·
|
An industry-leading presence with small and medium-sized enterprises that use our cards for their payment needs.
|
·
|
A larger merchant network that accommodates a greater share of our Card Member spending.
|
·
|
A card acquisition engine that has been successfully redesigned for the digital age.
|
·
|
A more agile technology infrastructure that brings customized products and services to market more quickly and efficiently.
|
·
|
the Company’s ability to achieve its 2017 earnings per common share outlook as well as return on average equity (ROE) expectations for 2017, which will depend in part on the following: revenues growing consistently with current expectations, which could be impacted by, among other things, the factors identified in the subsequent bullet; the level of spend in bonus categories on rewards-based and/or cash-back cards and redemptions of Card Member rewards and offers; the impact of any future contingencies, including, but not limited to, litigation-related settlements, judgments or expenses, the imposition of fines or civil money penalties, an increase in Card Member reimbursements, restructurings, impairments and changes in reserves; write-downs of deferred tax assets as a result of tax law or other changes; credit performance remaining consistent with current expectations; the ability to continue to realize benefits from restructuring actions and operating leverage at levels consistent with current expectations; the amount the Company spends on Card Member engagement and the Company’s ability to drive growth from such investments; changes in interest rates beyond current expectations (including the impact of hedge ineffectiveness and deposit rate increases); the impact of regulation and litigation, which could affect the profitability of the Company’s business activities, limit the Company’s ability to pursue business opportunities, require changes to business practices or alter the Company’s relationships with partners, merchants and Card Members; the Company’s tax rate remaining in line with current expectations, which could be impacted by, among other things, the Company’s geographic mix of income being weighted more to higher tax jurisdictions than expected, changes in tax laws and regulation and unfavorable tax audits and other unanticipated tax items; the impact of accounting changes and reclassifications; and the Company’s ability to continue executing its share repurchase program;
|
·
|
the ability of the Company to grow revenues net of interest expense, which could be impacted by, among other things, weakening economic conditions in the United States or internationally, a decline in consumer confidence impacting the willingness and ability of Card Members to sustain and grow spending, continued growth of Card Member loans, a greater erosion of the average discount rate than expected, the strengthening of the U.S. dollar, a greater impact on discount revenue from cash back and cobrand partner and client incentive payments, more cautious spending by large and global corporate Card Members, the willingness of Card Members to pay higher card fees, and lower spending on new cards acquired than estimated; and will depend on factors such as the Company’s success in addressing competitive pressures and implementing its strategies and business initiatives, including growing profitable spending from existing and new Card Members, increasing penetration among middle market and small business clients, expanding the Company’s international footprint and increasing merchant acceptance;
|
·
|
changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure that may impact the prices charged to merchants that accept American Express cards, competition for cobrand relationships and the success of marketing, promotion or rewards programs;
|
·
|
the Company’s rewards expense and cost of Card Member services growing inconsistently from expectations, which will depend in part on Card Member behavior as it relates to their spending patterns and actual usage and redemption of rewards, as well as the degree of interest of Card Members in the value proposition offered by the Company; increasing competition, which could result in greater rewards offerings; the Company’s ability to enhance card products and services to make them attractive to Card Members; and the amount the Company spends on the promotion of enhanced services and rewards categories and the success of such promotion;
|
·
|
the actual amount to be spent on marketing and promotion, which will be based in part on management’s assessment of competitive opportunities; overall business performance and changes in macroeconomic conditions; the actual amount of advertising and Card Member acquisition costs; competitive pressures that may require additional expenditures; the Company’s ability to continue to shift Card Member acquisition to digital channels; contractual obligations with business partners and other fixed costs and prior commitments; management’s ability to identify attractive investment opportunities and make such investments, which could be impacted by business, regulatory or legal complexities; and the Company’s ability to realize efficiencies, optimize investment spending and control expenses to fund such spending;
|
·
|
the ability of the Company to reduce its overall cost base by $1 billion on a run rate basis by the end of 2017, which will depend in part on the timing and financial impact of reengineering plans, which could be impacted by factors such as the Company’s inability to mitigate the operational and other risks posed by potential staff reductions, the Company’s inability to develop and implement technology resources to realize cost savings and underestimating hiring and other employee needs; the ability of the Company to reduce annual operating expenses, which could be impacted by, among other things, the factors identified below; the ability of the Company to optimize marketing and promotion expenses, which could be impacted by the factors identified in the preceding bullet;
|
·
|
the ability to reduce annual operating expenses, which could be impacted by the need to increase significant categories of operating expenses, such as consulting or professional fees, including as a result of increased litigation, compliance or regulatory-related costs or fraud costs; the ability of the Company to develop, implement and achieve substantial benefits from reengineering plans; higher than expected employee levels; the impact of changes in foreign currency exchange rates on costs; the payment of civil money penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; impairments of goodwill or other assets; management’s decision to increase or decrease spending in such areas as technology, business and product development and sales forces; greater than expected inflation; the Company’s ability to balance expense control and investments in the business; the impact of accounting changes and reclassifications; and the level of M&A activity and related expenses;
|
·
|
the Company’s delinquency and write-off rates and growth of provisions for losses being higher than current expectations, which will depend in part on changes in the level of loan balances and delinquencies, mix of loan balances, loans and receivables related to new Card Members and other borrowers performing as expected, credit performance of new and enhanced lending products, unemployment rates, the volume of bankruptcies and recoveries of previously written-off loans;
|
·
|
the Company’s ability to execute against its lending strategy to grow loans, which may be affected by increasing competition, brand perceptions and reputation, the Company’s ability to manage risk in a growing Card Member loan portfolio, and the behavior of Card Members and their actual spending and borrowing patterns, which in turn may be driven by the Company’s ability to issue new and enhanced card products, offer attractive non-card lending products, capture a greater share of existing Card Members’ spending and borrowings, reduce Card Member attrition and attract new customers;
|
·
|
the possibility that the Company will not execute on its plans to significantly increase merchant coverage, which will depend in part on the success of OptBlue merchant acquirers in signing merchants to accept American Express, which could be impacted by the pricing set by the merchant acquirers, the value proposition offered to small merchants and the efforts of OptBlue merchant acquirers to sign merchants for American Express acceptance, as well as the awareness and willingness of Card Members to use American Express cards at small merchants and of those merchants to accept American Express cards;
|
·
|
the ability of the Company to capture small business and middle market spending, which will depend in part on the willingness and ability of companies to use credit and charge cards for procurement and other business expenditures, perceived or actual difficulties and costs related to setting up card-based B2B payment platforms, the ability of the Company to offer attractive value propositions and card products to potential customers, competition, the Company’s ability to enhance and expand its payment solutions, and the effectiveness of the Company’s marketing and promotion of its corporate payment solutions and small business card products to potential customers;
|
·
|
the ability of the Company to grow internationally, which could be impacted by regulation and business practices, such as those capping interchange or other fees, favoring local competitors or prohibiting or limiting foreign ownership of certain businesses; the Company’s ability to partner with additional GNS issuers as a result of regulation or otherwise and the success of GNS partners in acquiring Card Members and/or merchants; political or economic instability, which could affect lending and other commercial activities; the Company’s ability to tailor products and services to make them attractive to local customers; and competitors with more scale and experience and more established relationships with relevant customers, regulators and industry participants;
|
·
|
the Company’s ability to attract and retain Card Members as well as capture the spending and borrowings of its customers, which will be impacted in part by competition, brand perceptions (including perceptions related to merchant coverage) and reputation and the ability of the Company to develop and market value propositions that appeal to Card Members and new customers and offer attractive services and rewards programs, which will depend in part on ongoing investment in marketing and promotion expenses, new product innovation and development, Card Member acquisition efforts and enrollment processes, including through digital channels, and infrastructure to support new products, services and benefits;
|
·
|
the erosion of the average discount rate by a greater amount than anticipated, including as a result of a greater shift of existing merchants into the OptBlue program, changes in the mix of spending by location and industry, merchant negotiations (including merchant incentives, concessions and volume-related pricing discounts), competition, pricing regulation (including regulation of competitors’ interchange rates in the European Union and elsewhere) and other factors;
|
·
|
changes affecting the ability or desire of the Company to return capital to shareholders through dividends and share repurchases, which will depend on factors such as approval of the Company’s capital plans by its primary regulators, the amount the Company spends on acquisitions of companies and the Company’s results of operations and capital needs and economic environment in any given period;
|
·
|
the Company’s deposit rates increasing faster or slower than current expectations due to changes in the Company’s funding mix, market pressures, regulatory constraints or changes in benchmark interest rates, which could affect the Company’s net interest yield and funding costs;
|
·
|
the Company’s net interest yield on Card Member loans remaining consistent with current expectations, which will be influenced by, among other things, interest rates, changes in consumer behavior that affect loan balances, such as paydown rates, the Company’s Card Member acquisition strategy, product mix, cost of funds, credit actions, including line size and other adjustments to credit availability, potential pricing changes and deposit rates, which could be impact by, among other things, the factors identified in the preceding bullet;
|
·
|
legal and regulatory developments, including with regard to broad payment system regulatory regimes, actions by the CFPB and other regulators and the stricter regulation of financial institutions, which could require the Company to make fundamental changes to many of its business practices; exert further pressure on the average discount rate and GNS volumes; result in increased costs related to regulatory oversight, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or civil money penalties; materially affect capital or liquidity requirements, results of operations, or ability to pay dividends or repurchase of stock; or result in harm to the American Express brand; and
|
·
|
factors beyond the Company’s control such as changes in global economic and business conditions, consumer and business spending, the availability and cost of capital, unemployment rates, geopolitical conditions (including potential impacts resulting from the U.S. Administration and the proposed exit of the U.K. from the European Union), foreign currency rates and interest rates, as well as fire, power loss, disruptions in telecommunications, severe weather conditions, natural disasters, health pandemics, terrorism, cyber attacks or fraud, all of which could significantly affect demand for and spending on American Express cards, delinquency rates, loan balances and other aspects of the Company and its results of operations or disrupt the Company’s global network systems and ability to process transactions.
|
American Express Company
|
(Preliminary)
|
|||||||||||
Appendix I
|
||||||||||||
Reconciliations of Adjustments
|
||||||||||||
(Millions, except percentages)
|
||||||||||||
|
||||||||||||
YOY %
Change
|
||||||||||||
Q2'17
|
Q2'16
|
|||||||||||
Adjusted Total Revenues Net of Interest Expense
|
||||||||||||
Total revenues net of interest expense
|
$
|
8,307
|
$
|
8,235
|
1
|
|||||||
Estimated Costco-related revenues (A)
|
-
|
530
|
||||||||||
Adjusted total revenues net of interest expense
|
$
|
8,307
|
$
|
7,705
|
8
|
|||||||
FX-adjusted Adjusted total revenues net of interest expense (B)
|
$
|
8,307
|
$
|
7,657
|
8
|
|||||||
|
||||||||||||
Adjusted Operating Expenses
|
||||||||||||
Operating expenses (C)
|
$
|
2,669
|
$
|
1,921
|
39
|
|||||||
Gain on sale of Costco portfolio (pre-tax)
|
-
|
1,091
|
||||||||||
Q2’16 Restructuring charge (pre-tax)
|
-
|
232
|
||||||||||
Adjusted Operating expenses
|
$
|
2,669
|
$
|
2,780
|
(4
|
)
|
(A)
|
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.
|
(B)
|
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 Q2'17 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.
|
(C)
|
Operating expenses represent salaries and employee benefits, professional services, occupancy and equipment, communications, and other, net.
|
American Express Company
|
(Preliminary)
|
Consolidated Statements of Income
|
|
(Millions, except percentages and per share amounts)
|
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
YOY % change
|
FY'17
|
FY'16
|
YOY % change
|
|||||||||||||||||||||||||||
Non-interest revenues
|
||||||||||||||||||||||||||||||||||||
Discount revenue
|
$
|
4,815
|
$
|
4,519
|
$
|
4,697
|
$
|
4,516
|
$
|
4,824
|
-
|
$
|
9,334
|
$
|
9,467
|
(1
|
)
|
|||||||||||||||||||
Net card fees
|
771
|
748
|
725
|
747
|
715
|
8
|
1,519
|
1,414
|
7
|
|||||||||||||||||||||||||||
Other fees and commissions
|
752
|
713
|
677
|
694
|
702
|
7
|
1,465
|
1,382
|
6
|
|||||||||||||||||||||||||||
Other
|
439
|
409
|
515
|
483
|
545
|
(19
|
)
|
848
|
1,031
|
(18
|
)
|
|||||||||||||||||||||||||
Total non-interest revenues
|
6,777
|
6,389
|
6,614
|
6,440
|
6,786
|
-
|
13,166
|
13,294
|
(1
|
)
|
||||||||||||||||||||||||||
Interest income
|
||||||||||||||||||||||||||||||||||||
Interest on loans
|
1,947
|
1,860
|
1,759
|
1,690
|
1,818
|
7
|
3,807
|
3,756
|
1
|
|||||||||||||||||||||||||||
Interest and dividends on investment securities
|
23
|
23
|
27
|
34
|
34
|
(32
|
)
|
46
|
70
|
(34
|
)
|
|||||||||||||||||||||||||
Deposits with banks and other
|
82
|
60
|
35
|
40
|
33
|
#
|
142
|
64
|
#
|
|||||||||||||||||||||||||||
Total interest income
|
2,052
|
1,943
|
1,821
|
1,764
|
1,885
|
9
|
3,995
|
3,890
|
3
|
|||||||||||||||||||||||||||
Interest expense
|
||||||||||||||||||||||||||||||||||||
Deposits
|
176
|
149
|
148
|
150
|
150
|
17
|
325
|
300
|
8
|
|||||||||||||||||||||||||||
Long-term debt and other
|
346
|
294
|
265
|
280
|
286
|
21
|
640
|
561
|
14
|
|||||||||||||||||||||||||||
Total interest expense
|
522
|
443
|
413
|
430
|
436
|
20
|
965
|
861
|
12
|
|||||||||||||||||||||||||||
Net interest income
|
1,530
|
1,500
|
1,408
|
1,334
|
1,449
|
6
|
3,030
|
3,029
|
-
|
|||||||||||||||||||||||||||
Total revenues net of interest expense
|
8,307
|
7,889
|
8,022
|
7,774
|
8,235
|
1
|
16,196
|
16,323
|
(1
|
)
|
||||||||||||||||||||||||||
Provisions for losses
|
||||||||||||||||||||||||||||||||||||
Charge card
|
163
|
213
|
200
|
174
|
153
|
7
|
376
|
322
|
17
|
|||||||||||||||||||||||||||
Card Member loans
|
404
|
337
|
404
|
319
|
285
|
42
|
741
|
512
|
45
|
|||||||||||||||||||||||||||
Other
|
17
|
23
|
21
|
11
|
25
|
(32
|
)
|
40
|
63
|
(37
|
)
|
|||||||||||||||||||||||||
Total provisions for losses
|
584
|
573
|
625
|
504
|
463
|
26
|
1,157
|
897
|
29
|
|||||||||||||||||||||||||||
Total revenues net of interest expense after provisions for losses
|
7,723
|
7,316
|
7,397
|
7,270
|
7,772
|
(1
|
)
|
15,039
|
15,426
|
(3
|
)
|
|||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||
Marketing and promotion
|
830
|
700
|
1,205
|
930
|
788
|
5
|
1,530
|
1,515
|
1
|
|||||||||||||||||||||||||||
Card Member rewards
|
1,926
|
1,807
|
1,758
|
1,566
|
1,766
|
9
|
3,733
|
3,469
|
8
|
|||||||||||||||||||||||||||
Card Member services and other
|
349
|
321
|
292
|
278
|
281
|
24
|
670
|
563
|
19
|
|||||||||||||||||||||||||||
Salaries and employee benefits
|
1,293
|
1,264
|
1,207
|
1,263
|
1,451
|
(11
|
)
|
2,557
|
2,789
|
(8
|
)
|
|||||||||||||||||||||||||
Professional services
|
521
|
512
|
721
|
630
|
628
|
(17
|
)
|
1,033
|
1,232
|
(16
|
)
|
|||||||||||||||||||||||||
Occupancy and equipment
|
484
|
475
|
506
|
429
|
438
|
11
|
959
|
903
|
6
|
|||||||||||||||||||||||||||
Other, net
|
371
|
420
|
547
|
439
|
(596
|
)
|
#
|
791
|
(245
|
)
|
#
|
|||||||||||||||||||||||||
Total expenses
|
5,774
|
5,499
|
6,236
|
5,535
|
4,756
|
21
|
11,273
|
10,226
|
10
|
|||||||||||||||||||||||||||
Pretax income
|
1,949
|
1,817
|
1,161
|
1,735
|
3,016
|
(35
|
)
|
3,766
|
5,200
|
(28
|
)
|
|||||||||||||||||||||||||
Income tax provision
|
609
|
580
|
336
|
593
|
1,001
|
(39
|
)
|
1,189
|
1,759
|
(32
|
)
|
|||||||||||||||||||||||||
Net income
|
$
|
1,340
|
$
|
1,237
|
$
|
825
|
$
|
1,142
|
$
|
2,015
|
(33
|
)
|
$
|
2,577
|
$
|
3,441
|
(25
|
)
|
||||||||||||||||||
Net income attributable to common shareholders (A)
|
$
|
1,310
|
$
|
1,206
|
$
|
800
|
$
|
1,112
|
$
|
1,979
|
(34
|
)
|
$
|
2,516
|
$
|
3,373
|
(25
|
)
|
||||||||||||||||||
Effective tax rate
|
31.2
|
%
|
31.9
|
%
|
28.9
|
%
|
34.2
|
%
|
33.2
|
%
|
31.6
|
%
|
33.8
|
%
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Earnings Per Common Share
|
||||||||||||||||||||||||||||||||||||
Basic
|
||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders
|
$
|
1.47
|
$
|
1.34
|
$
|
0.88
|
$
|
1.21
|
$
|
2.11
|
(30
|
)
|
$
|
2.81
|
$
|
3.55
|
(21
|
)
|
||||||||||||||||||
Average common shares outstanding
|
890
|
899
|
910
|
920
|
938
|
(5
|
)
|
895
|
949
|
(6
|
)
|
|||||||||||||||||||||||||
Diluted
|
||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders
|
$
|
1.47
|
$
|
1.34
|
$
|
0.88
|
$
|
1.20
|
$
|
2.10
|
(30
|
)
|
$
|
2.80
|
$
|
3.54
|
(21
|
)
|
||||||||||||||||||
Average common shares outstanding
|
893
|
903
|
913
|
923
|
941
|
(5
|
)
|
898
|
952
|
(6
|
)
|
|||||||||||||||||||||||||
Cash dividends declared per common share
|
$
|
0.32
|
$
|
0.32
|
$
|
0.32
|
$
|
0.32
|
$
|
0.29
|
10
|
$
|
0.64
|
$
|
0.58
|
10
|
# - Denotes a variance of more than 100 percent.
|
|
|
|
|
|
|
|
American Express Company
|
(Preliminary)
|
Consolidated Balance Sheets and Related Statistical Information
|
|
(Billions, except percentages, per share amounts and where indicated)
|
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
YOY % change
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Cash & cash equivalents
|
$
|
30
|
$
|
29
|
$
|
25
|
$
|
27
|
$
|
34
|
(12
|
)
|
||||||||||||
Card Member receivables, less reserves
|
49
|
47
|
47
|
45
|
45
|
9
|
||||||||||||||||||
Card Member Loans, less reserves
|
65
|
62
|
64
|
60
|
59
|
10
|
||||||||||||||||||
Investment securities
|
3
|
4
|
3
|
4
|
4
|
(25
|
)
|
|||||||||||||||||
Other (B)
|
20
|
19
|
20
|
17
|
18
|
11
|
||||||||||||||||||
Total assets
|
$
|
167
|
$
|
161
|
$
|
159
|
$
|
153
|
$
|
160
|
4
|
|||||||||||||
Liabilities and Shareholders' Equity
|
||||||||||||||||||||||||
Customer deposits
|
$
|
58
|
$
|
54
|
$
|
53
|
$
|
54
|
$
|
54
|
7
|
|||||||||||||
Short-term borrowings
|
3
|
4
|
6
|
3
|
2
|
50
|
||||||||||||||||||
Long-term debt
|
52
|
52
|
47
|
45
|
51
|
2
|
||||||||||||||||||
Other (B)
|
33
|
30
|
32
|
30
|
32
|
3
|
||||||||||||||||||
Total liabilities
|
146
|
140
|
138
|
132
|
139
|
5
|
||||||||||||||||||
Shareholders' Equity
|
21
|
21
|
21
|
21
|
21
|
-
|
||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
167
|
$
|
161
|
$
|
159
|
$
|
153
|
$
|
160
|
4
|
|||||||||||||
Return on average equity (C)
|
21.7
|
%
|
25.1
|
%
|
26.0
|
%
|
26.1
|
%
|
26.4
|
%
|
||||||||||||||
Return on average common equity (C)
|
22.9
|
%
|
26.5
|
%
|
27.5
|
%
|
27.6
|
%
|
27.9
|
%
|
||||||||||||||
Book value per common share (dollars)
|
$
|
22.14
|
$
|
21.62
|
$
|
20.93
|
$
|
21.20
|
$
|
20.67
|
7
|
# - Denotes a variance of more than 100 percent.
|
|
|
|
|
|
|
|
|
|
American Express Company
|
(Preliminary)
|
Consolidated Capital
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
|||||||||||||||
Shares Outstanding (in millions)
|
||||||||||||||||||||
Beginning of period
|
895
|
904
|
917
|
925
|
951
|
|||||||||||||||
Repurchase of common shares
|
(10)
|
|
(11)
|
|
(15)
|
|
(8)
|
|
(27)
|
|
||||||||||
Net impact of employee benefit plans and others
|
-
|
2
|
2
|
-
|
1
|
|||||||||||||||
End of period
|
885
|
895
|
904
|
917
|
925
|
|||||||||||||||
Risk-Based Capital Ratios - Transitional Basel III ($ in billions) (D)
|
||||||||||||||||||||
Common Equity Tier 1/Risk Weighted Assets (RWA)
|
12.3
|
%
|
12.7
|
%
|
12.3
|
%
|
13.6
|
%
|
13.5
|
%
|
||||||||||
Tier 1
|
13.5
|
%
|
13.9
|
%
|
13.5
|
%
|
14.9
|
%
|
14.7
|
%
|
||||||||||
Total
|
15.2
|
%
|
15.6
|
%
|
15.2
|
%
|
16.6
|
%
|
16.4
|
%
|
||||||||||
Common Equity Tier 1
|
$
|
16.4
|
$
|
16.3
|
$
|
16.1
|
$
|
16.8
|
$
|
16.5
|
||||||||||
Tier 1 Capital
|
$
|
18.0
|
$
|
17.8
|
$
|
17.7
|
$
|
18.4
|
$
|
18.0
|
||||||||||
Tier 2 Capital
|
$
|
2.3
|
$
|
2.2
|
$
|
2.2
|
$
|
2.1
|
$
|
2.1
|
||||||||||
Total Capital
|
$
|
20.3
|
$
|
20.0
|
$
|
19.9
|
$
|
20.5
|
$
|
20.1
|
||||||||||
RWA
|
$
|
133.5
|
$
|
128.6
|
$
|
131.0
|
$
|
123.6
|
$
|
122.5
|
||||||||||
Tier 1 Leverage
|
11.0
|
%
|
11.5
|
%
|
11.6
|
%
|
11.9
|
%
|
11.5
|
%
|
||||||||||
Supplementary Leverage Ratio (SLR) (E)
|
9.4
|
%
|
9.9
|
%
|
10.0
|
%
|
10.3
|
%
|
9.7
|
%
|
||||||||||
Average Total Assets to calculate the Tier 1 Leverage Ratio (F)
|
$
|
164.2
|
$
|
155.0
|
$
|
152.7
|
$
|
154.2
|
$
|
156.6
|
||||||||||
Total Leverage Exposure to calculate SLR
|
$
|
190.4
|
$
|
180.5
|
$
|
177.5
|
$
|
178.7
|
$
|
186.0
|
||||||||||
Risk-Based Capital Ratios - Estimated fully phased-in Basel III ($ in billions) (D) (G)
|
||||||||||||||||||||
RWA
|
$
|
135.0
|
$
|
130.3
|
$
|
131.9
|
$
|
124.7
|
$
|
123.7
|
||||||||||
Risk-Based Capital (Common Equity Tier 1)
|
$
|
16.1
|
$
|
16.0
|
$
|
15.6
|
$
|
16.3
|
$
|
15.9
|
||||||||||
Risk-Based Capital (Tier 1)
|
$
|
17.7
|
$
|
17.5
|
$
|
17.2
|
$
|
17.9
|
$
|
17.5
|
||||||||||
Common Equity Tier 1 ratio (H)
|
12.0
|
%
|
12.3
|
%
|
11.8
|
%
|
13.1
|
%
|
12.9
|
%
|
||||||||||
Tier 1 Risk-Based Capital Ratio (I)
|
13.1
|
%
|
13.5
|
%
|
13.0
|
%
|
14.3
|
%
|
14.2
|
%
|
||||||||||
Supplementary Leverage Ratio (J)
|
9.3
|
%
|
9.7
|
%
|
9.7
|
%
|
10.0
|
%
|
9.4
|
%
|
American Express Company
|
|
(Preliminary)
|
Selected Card Related Statistical Information
|
|
|
(Billions, except percentages and where indicated)
|
|
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
YOY % change
|
FY'17
|
FY'16
|
YOY % change
|
|||||||||||||||||||||||||||
Card billed business (K)
|
||||||||||||||||||||||||||||||||||||
United States
|
$
|
177.6
|
$
|
165.4
|
$
|
174.4
|
$
|
164.6
|
$
|
185.1
|
(4
|
)
|
$
|
343.0
|
$
|
361.4
|
(5
|
)
|
||||||||||||||||||
Outside the United States
|
92.0
|
86.9
|
88.8
|
86.6
|
84.2
|
9
|
178.9
|
161.7
|
11
|
|||||||||||||||||||||||||||
Worldwide
|
$
|
269.6
|
$
|
252.3
|
$
|
263.2
|
$
|
251.2
|
$
|
269.3
|
-
|
$
|
521.9
|
$
|
523.1
|
-
|
||||||||||||||||||||
Total cards-in-force (L) (millions)
|
||||||||||||||||||||||||||||||||||||
United States
|
48.9
|
48.2
|
47.5
|
47.1
|
47.0
|
4
|
48.9
|
47.0
|
4
|
|||||||||||||||||||||||||||
Outside the United States
|
63.3
|
63.0
|
62.4
|
61.7
|
61.2
|
3
|
63.3
|
61.2
|
3
|
|||||||||||||||||||||||||||
Worldwide
|
112.2
|
111.2
|
109.9
|
108.8
|
108.2
|
4
|
112.2
|
108.2
|
4
|
|||||||||||||||||||||||||||
Basic cards-in-force (L) (millions)
|
||||||||||||||||||||||||||||||||||||
United States
|
38.6
|
38.1
|
37.4
|
37.0
|
37.0
|
4
|
38.6
|
37.0
|
4
|
|||||||||||||||||||||||||||
Outside the United States
|
52.6
|
52.2
|
51.7
|
51.1
|
50.5
|
4
|
52.6
|
50.5
|
4
|
|||||||||||||||||||||||||||
Worldwide
|
91.2
|
90.3
|
89.1
|
88.1
|
87.5
|
4
|
91.2
|
87.5
|
4
|
|||||||||||||||||||||||||||
Average basic Card Member spending (M) (dollars)
|
||||||||||||||||||||||||||||||||||||
United States
|
$
|
5,128
|
$
|
4,859
|
$
|
5,181
|
$
|
4,937
|
$
|
4,672
|
10
|
$
|
9,989
|
$
|
8,941
|
12
|
||||||||||||||||||||
Outside the United States
|
$
|
3,468
|
$
|
3,283
|
$
|
3,401
|
$
|
3,264
|
$
|
3,319
|
4
|
$
|
6,752
|
$
|
6,404
|
5
|
||||||||||||||||||||
Worldwide
|
$
|
4,633
|
$
|
4,387
|
$
|
4,647
|
$
|
4,433
|
$
|
4,313
|
7
|
$
|
9,022
|
$
|
8,280
|
9
|
||||||||||||||||||||
Card Member loans (N)
|
||||||||||||||||||||||||||||||||||||
United States
|
$
|
58.5
|
$
|
56.6
|
$
|
58.3
|
$
|
53.9
|
$
|
53.2
|
10
|
$
|
58.5
|
$
|
53.2
|
10
|
||||||||||||||||||||
Outside the United States
|
$
|
7.5
|
$
|
7.0
|
$
|
7.0
|
$
|
6.7
|
$
|
6.7
|
12
|
$
|
7.5
|
$
|
6.7
|
12
|
||||||||||||||||||||
Worldwide
|
$
|
66.0
|
$
|
63.6
|
$
|
65.3
|
$
|
60.6
|
$
|
59.9
|
10
|
$
|
66.0
|
$
|
59.9
|
10
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Average discount rate (O)
|
2.44
|
%
|
2.45
|
%
|
2.44
|
%
|
2.47
|
%
|
2.43
|
%
|
2.44
|
%
|
2.43
|
%
|
||||||||||||||||||||||
Average fee per card (dollars) (M)
|
$
|
49
|
$
|
48
|
$
|
47
|
$
|
49
|
$
|
42
|
17
|
$
|
49
|
$
|
41
|
20
|
# - Denotes a variance of more than 100 percent.
|
American Express Company
|
(Preliminary)
|
||||||
Selected Credit Related Statistical Information
|
|
|
|
|
|
|
|
(Billions, except percentages and where indicated)
|
|
|
|
|
|
|
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
YOY % change
|
FY'17
|
FY'16
|
YOY % change
|
|||||||||||||||||||||||||||
Worldwide Card Member receivables (N)
|
||||||||||||||||||||||||||||||||||||
Total receivables
|
$
|
49.4
|
$
|
47.6
|
$
|
47.3
|
$
|
45.3
|
$
|
45.2
|
9
|
$
|
49.4
|
$
|
45.2
|
9
|
||||||||||||||||||||
Loss reserves (millions):
|
||||||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
491
|
$
|
467
|
$
|
437
|
$
|
423
|
$
|
446
|
10
|
$
|
467
|
$
|
462
|
1
|
||||||||||||||||||||
Provisions (P)
|
163
|
213
|
200
|
174
|
153
|
7
|
376
|
322
|
17
|
|||||||||||||||||||||||||||
Net write-offs (Q)
|
(179
|
)
|
(194
|
)
|
(156
|
)
|
(159
|
)
|
(173
|
)
|
3
|
(373
|
)
|
(359
|
)
|
4
|
||||||||||||||||||||
Other (R)
|
-
|
5
|
(14
|
)
|
(1
|
)
|
(3
|
)
|
#
|
5
|
(2
|
)
|
#
|
|||||||||||||||||||||||
Ending balance
|
$
|
475
|
$
|
491
|
$
|
467
|
$
|
437
|
$
|
423
|
12
|
$
|
475
|
$
|
423
|
12
|
||||||||||||||||||||
% of receivables
|
1.0
|
%
|
1.0
|
%
|
1.0
|
%
|
1.0
|
%
|
0.9
|
%
|
1.0
|
%
|
0.9
|
%
|
||||||||||||||||||||||
Net write-off rate, excluding Global Corporate Payments (GCP) (principal only) (S)
|
1.5
|
%
|
1.7
|
%
|
1.3
|
%
|
1.4
|
%
|
1.6
|
%
|
1.6
|
%
|
1.7
|
%
|
||||||||||||||||||||||
Net write-off rate, excluding GCP (principal and fees) (S)
|
1.7
|
%
|
2.0
|
%
|
1.5
|
%
|
1.6
|
%
|
1.8
|
%
|
1.8
|
%
|
2.0
|
%
|
||||||||||||||||||||||
30+ days past due as a % of total, excluding GCP
|
1.3
|
%
|
1.5
|
%
|
1.4
|
%
|
1.4
|
%
|
1.3
|
%
|
1.3
|
%
|
1.3
|
%
|
||||||||||||||||||||||
GCP Net loss ratio (as a % of charge volume) (T)
|
0.10
|
%
|
0.11
|
%
|
0.10
|
%
|
0.11
|
%
|
0.09
|
%
|
0.10
|
%
|
0.09
|
%
|
||||||||||||||||||||||
GCP 90+ days past billing as a % of total (T)
|
0.8
|
%
|
0.7
|
%
|
0.9
|
%
|
0.8
|
%
|
0.7
|
%
|
0.8
|
%
|
0.7
|
%
|
||||||||||||||||||||||
Worldwide Card Member loans (N)
|
||||||||||||||||||||||||||||||||||||
Total loans
|
$
|
66.0
|
$
|
63.6
|
$
|
65.3
|
$
|
60.6
|
$
|
59.9
|
10
|
$
|
66.0
|
$
|
59.9
|
10
|
||||||||||||||||||||
Loss reserves (millions):
|
||||||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
1,248
|
$
|
1,223
|
$
|
1,114
|
$
|
1,091
|
$
|
1,012
|
23
|
$
|
1,223
|
$
|
1,028
|
19
|
||||||||||||||||||||
Provisions (P)
|
404
|
337
|
404
|
319
|
285
|
42
|
741
|
512
|
45
|
|||||||||||||||||||||||||||
Net write-offs - principal (Q)
|
(285
|
)
|
(272
|
)
|
(243
|
)
|
(250
|
)
|
(223
|
)
|
28
|
(557
|
)
|
(437
|
)
|
27
|
||||||||||||||||||||
Net write-offs - interest and fees (Q)
|
(55
|
)
|
(51
|
)
|
(47
|
)
|
(48
|
)
|
(40
|
)
|
38
|
(106
|
)
|
(80
|
)
|
33
|
||||||||||||||||||||
Other (R)
|
8
|
11
|
(5
|
)
|
2
|
57
|
(86
|
)
|
19
|
68
|
(72
|
)
|
||||||||||||||||||||||||
Ending balance
|
$
|
1,320
|
$
|
1,248
|
$
|
1,223
|
$
|
1,114
|
$
|
1,091
|
21
|
$
|
1,320
|
$
|
1,091
|
21
|
||||||||||||||||||||
Ending reserves - principal
|
$
|
1,247
|
$
|
1,179
|
$
|
1,160
|
$
|
1,050
|
$
|
1,037
|
20
|
$
|
1,247
|
$
|
1,037
|
20
|
||||||||||||||||||||
Ending reserves - interest and fees
|
$
|
73
|
$
|
69
|
$
|
63
|
$
|
64
|
$
|
54
|
35
|
$
|
73
|
$
|
54
|
35
|
||||||||||||||||||||
% of loans
|
2.0
|
%
|
2.0
|
%
|
1.9
|
%
|
1.8
|
%
|
1.8
|
%
|
2.0
|
%
|
1.8
|
%
|
||||||||||||||||||||||
% of past due
|
167
|
%
|
158
|
%
|
161
|
%
|
160
|
%
|
160
|
%
|
167
|
%
|
160
|
%
|
||||||||||||||||||||||
Average loans
|
$
|
65.1
|
$
|
63.9
|
$
|
62.6
|
$
|
60.3
|
$
|
58.8
|
11
|
$
|
64.6
|
$
|
58.2
|
11
|
||||||||||||||||||||
Net write-off rate (principal only) (S)
|
1.8
|
%
|
1.7
|
%
|
1.6
|
%
|
1.7
|
%
|
1.5
|
%
|
1.7
|
%
|
1.5
|
%
|
||||||||||||||||||||||
Net write-off rate (principal, interest and fees) (S)
|
2.1
|
%
|
2.0
|
%
|
1.9
|
%
|
2.0
|
%
|
1.8
|
%
|
2.1
|
%
|
1.8
|
%
|
||||||||||||||||||||||
30+ days past due loans as a % of total
|
1.2
|
%
|
1.2
|
%
|
1.2
|
%
|
1.1
|
%
|
1.1
|
%
|
1.2
|
%
|
1.1
|
%
|
||||||||||||||||||||||
Net interest income divided by average loans (U)
|
9.4
|
%
|
9.4
|
%
|
9.0
|
%
|
8.8
|
%
|
8.6
|
%
|
9.4
|
%
|
8.8
|
%
|
||||||||||||||||||||||
Net interest yield on Card Member loans (U)
|
10.3
|
%
|
10.3
|
%
|
9.9
|
%
|
9.8
|
%
|
9.5
|
%
|
10.3
|
%
|
9.6
|
%
|
# - Denotes a variance of more than 100 percent.
|
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)
|
||||||||||||||||||||
Q2'17
|
||||||||||||||||||||||||
Non-interest revenues
|
$
|
1,999
|
$
|
1,247
|
$
|
2,368
|
$
|
1,086
|
$
|
77
|
$
|
6,777
|
||||||||||||
Interest income
|
1,369
|
246
|
334
|
1
|
102
|
2,052
|
||||||||||||||||||
Interest expense
|
171
|
60
|
129
|
(65
|
)
|
227
|
522
|
|||||||||||||||||
Total revenues net of interest expense
|
3,197
|
1,433
|
2,573
|
1,152
|
(48
|
)
|
8,307
|
|||||||||||||||||
Total provision
|
345
|
84
|
154
|
0
|
1
|
584
|
||||||||||||||||||
Pretax income (loss)
|
669
|
275
|
773
|
680
|
(448
|
)
|
1,949
|
|||||||||||||||||
Income tax provision (benefit)
|
229
|
66
|
273
|
250
|
(209
|
)
|
609
|
|||||||||||||||||
Net income (loss)
|
440
|
209
|
500
|
430
|
(239
|
)
|
1,340
|
|||||||||||||||||
Q2'16
|
||||||||||||||||||||||||
Non-interest revenues
|
$
|
2,069
|
$
|
1,242
|
$
|
2,280
|
$
|
1,087
|
$
|
108
|
$
|
6,786
|
||||||||||||
Interest income
|
1,278
|
234
|
310
|
1
|
62
|
1,885
|
||||||||||||||||||
Interest expense
|
139
|
58
|
104
|
(61
|
)
|
196
|
436
|
|||||||||||||||||
Total revenues net of interest expense
|
3,208
|
1,418
|
2,486
|
1,149
|
(26
|
)
|
8,235
|
|||||||||||||||||
Total provision
|
237
|
78
|
139
|
5
|
4
|
463
|
||||||||||||||||||
Pretax income (loss)
|
1,698
|
273
|
910
|
597
|
(462
|
)
|
3,016
|
|||||||||||||||||
Income tax provision (benefit)
|
631
|
45
|
334
|
224
|
(233
|
)
|
1,001
|
|||||||||||||||||
Net income (loss)
|
1,067
|
228
|
576
|
373
|
(229
|
)
|
2,015
|
|||||||||||||||||
YOY % change
|
||||||||||||||||||||||||
Non-interest revenues
|
(3
|
)
|
-
|
4
|
-
|
(29
|
)
|
-
|
||||||||||||||||
Interest income
|
7
|
5
|
8
|
-
|
65
|
9
|
||||||||||||||||||
Interest expense
|
23
|
3
|
24
|
7
|
16
|
20
|
||||||||||||||||||
Total revenues net of interest expense
|
(0
|
)
|
1
|
3
|
-
|
85
|
1
|
|||||||||||||||||
Total provision
|
46
|
8
|
11
|
#
|
(75
|
)
|
26
|
|||||||||||||||||
Pretax income (loss)
|
(61
|
)
|
1
|
(15
|
)
|
14
|
(3
|
)
|
(35
|
)
|
||||||||||||||
Income tax provision (benefit)
|
(64
|
)
|
47
|
(18
|
)
|
12
|
(10
|
)
|
(39
|
)
|
||||||||||||||
Net income (loss)
|
(59
|
)
|
(8
|
)
|
(13
|
)
|
15
|
4
|
(33
|
)
|
||||||||||||||
|
# - Denotes a variance of more than 100 percent.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Express Company
|
(Preliminary)
|
|||||
Billed Business Growth Trend
|
|
|
|
|
|
YOY % change
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Reported
|
FX-Adjusted (V)
|
Reported
|
FX-Adjusted (V)
|
||||||||||||||||||||||||||||||||||||||||||||
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
FY'17
|
FY'17
|
||||||||||||||||||||||||||||||||||||
Worldwide (W)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Total Billed Business
|
-
|
(1
|
%)
|
(4
|
%)
|
(3
|
%)
|
3
|
%
|
1
|
%
|
-
|
(3
|
%)
|
(3
|
%)
|
4
|
%
|
-
|
-
|
||||||||||||||||||||||||||||
Proprietary billed business
|
(1
|
)
|
(2
|
)
|
(5
|
)
|
(5
|
)
|
2
|
-
|
(2
|
)
|
(4
|
)
|
(5
|
)
|
3
|
(1
|
)
|
(1
|
)
|
|||||||||||||||||||||||||||
GNS billed business (X)
|
5
|
7
|
3
|
10
|
5
|
5
|
6
|
4
|
10
|
11
|
6
|
6
|
||||||||||||||||||||||||||||||||||||
Airline-related volume (8% of Q2'17 worldwide billed business)
|
1
|
1
|
(3
|
)
|
(6
|
)
|
(4
|
)
|
1
|
2
|
(1
|
)
|
(5
|
)
|
(3
|
)
|
1
|
2
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||
United States (W)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Billed Business
|
(4
|
)
|
(6
|
)
|
(8
|
)
|
(9
|
)
|
2
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
(5
|
)
|
n/a
|
|||||||||||||||||||||||||||||||
Proprietary consumer card billed business (Y)
|
(9
|
)
|
(13
|
)
|
(14
|
)
|
(15
|
)
|
-
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
(11
|
)
|
n/a
|
|||||||||||||||||||||||||||||||
Proprietary small business and corporate services billed business (Z)
|
4
|
2
|
1
|
(1
|
)
|
4
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
3
|
n/a
|
|||||||||||||||||||||||||||||||||||
T&E-related volume (26% of Q2'17 U.S. billed business)
|
(3
|
)
|
(5
|
)
|
(6
|
)
|
(7
|
)
|
(1
|
)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
(4
|
)
|
n/a
|
||||||||||||||||||||||||||||||
Non-T&E-related volume (74% of Q2'17 U.S. billed business)
|
(4
|
)
|
(7
|
)
|
(9
|
)
|
(9
|
)
|
3
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
(6
|
)
|
n/a
|
|||||||||||||||||||||||||||||||
Airline-related volume (7% of Q2'17 U.S. billed business)
|
(1
|
)
|
(4
|
)
|
(6
|
)
|
(11
|
)
|
(8
|
)
|
n/a
|
n/a
|
n/a
|
n/a
|
n/a
|
(3
|
)
|
n/a
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||
Outside the United States (W)
|
||||||||||||||||||||||||||||||||||||||||||||||||
Billed Business
|
9
|
12
|
7
|
10
|
5
|
11
|
13
|
11
|
11
|
10
|
11
|
12
|
||||||||||||||||||||||||||||||||||||
Japan, Asia Pacific & Australia ("JAPA") billed business
|
12
|
16
|
14
|
22
|
12
|
13
|
14
|
13
|
16
|
13
|
14
|
14
|
||||||||||||||||||||||||||||||||||||
Latin America & Canada ("LACC") billed business
|
8
|
10
|
1
|
-
|
(9
|
)
|
9
|
9
|
7
|
7
|
6
|
9
|
9
|
|||||||||||||||||||||||||||||||||||
Europe, Middle East & Africa ("EMEA") billed business
|
7
|
7
|
1
|
2
|
3
|
10
|
12
|
9
|
7
|
6
|
7
|
11
|
||||||||||||||||||||||||||||||||||||
Proprietary consumer card billed business (X)
|
9
|
8
|
4
|
6
|
4
|
12
|
11
|
10
|
8
|
8
|
8
|
12
|
||||||||||||||||||||||||||||||||||||
Proprietary small business and corporate services billed business (Z)
|
8
|
13
|
7
|
6
|
3
|
10
|
14
|
11
|
6
|
6
|
11
|
12
|
U.S. Consumer Services
|
|
(Preliminary)
|
Selected Income Statement and Statistical Information
|
||
(Millions, except percentages)
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
YOY % change
|
FY'17
|
FY'16
|
YOY % change
|
|||||||||||||||||||||||||||
Non-interest revenues
|
$
|
1,999
|
$
|
1,857
|
$
|
1,927
|
$
|
1,849
|
$
|
2,069
|
(3
|
)
|
$
|
3,856
|
$
|
4,098
|
(6
|
)
|
||||||||||||||||||
Interest income
|
1,369
|
1,308
|
1,235
|
1,178
|
1,278
|
7
|
2,677
|
2,669
|
-
|
|||||||||||||||||||||||||||
Interest expense
|
171
|
146
|
132
|
125
|
139
|
23
|
317
|
279
|
14
|
|||||||||||||||||||||||||||
Net interest income
|
1,198
|
1,162
|
1,103
|
1,053
|
1,139
|
5
|
2,360
|
2,390
|
(1
|
)
|
||||||||||||||||||||||||||
Total revenues net of interest expense
|
3,197
|
3,019
|
3,030
|
2,902
|
3,208
|
-
|
6,216
|
6,488
|
(4
|
)
|
||||||||||||||||||||||||||
Provisions for losses
|
345
|
294
|
363
|
275
|
237
|
46
|
639
|
427
|
50
|
|||||||||||||||||||||||||||
Total revenues net of interest expense after provisions for losses
|
2,852
|
2,725
|
2,667
|
2,627
|
2,971
|
(4
|
)
|
5,577
|
6,061
|
(8
|
)
|
|||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||
Marketing, promotion, rewards, Card Member services and other
|
1,469
|
1,297
|
1,425
|
1,274
|
1,369
|
7
|
2,766
|
2,717
|
2
|
|||||||||||||||||||||||||||
Salaries and employee benefits and other operating expenses
|
714
|
728
|
761
|
738
|
(96
|
)
|
#
|
1,442
|
559
|
#
|
||||||||||||||||||||||||||
Total expenses
|
2,183
|
2,025
|
2,186
|
2,012
|
1,273
|
71
|
4,208
|
3,276
|
28
|
|||||||||||||||||||||||||||
Pretax segment income
|
669
|
700
|
481
|
615
|
1,698
|
(61
|
)
|
1,369
|
2,785
|
(51
|
)
|
|||||||||||||||||||||||||
Income tax provision
|
229
|
231
|
130
|
214
|
631
|
(64
|
)
|
460
|
1,024
|
(55
|
)
|
|||||||||||||||||||||||||
Segment income
|
$
|
440
|
$
|
469
|
$
|
351
|
$
|
401
|
$
|
1,067
|
(59
|
)
|
$
|
909
|
$
|
1,761
|
(48
|
)
|
||||||||||||||||||
Effective tax rate
|
34.2
|
%
|
33.0
|
%
|
27.0
|
%
|
34.8
|
%
|
37.2
|
%
|
33.6
|
%
|
36.8
|
%
|
||||||||||||||||||||||
(Billions, except percentages and where indicated)
|
||||||||||||||||||||||||||||||||||||
Card billed business
|
$
|
84.8
|
$
|
77.5
|
$
|
84.3
|
$
|
78.6
|
$
|
93.4
|
(9
|
)
|
$
|
162.2
|
$
|
182.4
|
(11
|
)
|
||||||||||||||||||
Total cards-in-force (millions)
|
33.8
|
33.2
|
32.7
|
32.3
|
31.8
|
6
|
|
33.8
|
31.8
|
6
|
||||||||||||||||||||||||||
Basic cards-in-force (millions)
|
24.2
|
23.7
|
23.3
|
22.9
|
22.6
|
7
|
|
24.2
|
22.6
|
7
|
||||||||||||||||||||||||||
Average basic Card Member spending (dollars) (M)
|
$
|
3,538
|
$
|
3,297
|
$
|
3,643
|
$
|
3,452
|
$
|
3,417
|
4
|
$
|
6,837
|
$
|
6,523
|
5
|
||||||||||||||||||||
Total segment assets
|
$
|
86.8
|
$
|
81.2
|
$
|
87.4
|
$
|
79.4
|
$
|
81.3
|
7
|
$
|
86.8
|
$
|
81.3
|
7
|
||||||||||||||||||||
Segment capital (AA)
|
$
|
7.1
|
$
|
7.1
|
$
|
7.2
|
$
|
7.5
|
$
|
6.8
|
4
|
$
|
7.1
|
$
|
6.8
|
4
|
||||||||||||||||||||
Return on average segment capital (AA)
|
23.3
|
%
|
31.9
|
%
|
34.9
|
%
|
37.4
|
%
|
38.9
|
%
|
23.3
|
%
|
38.9
|
%
|
||||||||||||||||||||||
Card Member receivables: (N)
|
||||||||||||||||||||||||||||||||||||
Total receivables
|
$
|
11.3
|
$
|
10.9
|
$
|
12.3
|
$
|
10.1
|
$
|
10.6
|
7
|
$
|
11.3
|
$
|
10.6
|
7
|
||||||||||||||||||||
30+ days past due as a % of total
|
1.1
|
%
|
1.3
|
%
|
1.2
|
%
|
1.4
|
%
|
1.2
|
%
|
1.1
|
%
|
1.2
|
%
|
||||||||||||||||||||||
Net write-off rate (principal only) (S)
|
1.2
|
%
|
1.5
|
%
|
1.3
|
%
|
1.1
|
%
|
1.3
|
%
|
1.4
|
%
|
1.5
|
%
|
||||||||||||||||||||||
Net write-off rate (principal and fees) (S)
|
1.4
|
%
|
1.7
|
%
|
1.5
|
%
|
1.3
|
%
|
1.6
|
%
|
1.5
|
%
|
1.8
|
%
|
||||||||||||||||||||||
Card Member loans: (N)
|
||||||||||||||||||||||||||||||||||||
Total loans
|
$
|
48.3
|
$
|
46.7
|
$
|
48.8
|
$
|
44.9
|
$
|
44.6
|
8
|
$
|
48.3
|
$
|
44.6
|
8
|
||||||||||||||||||||
30+ days past due loans as a % of total
|
1.1
|
%
|
1.2
|
%
|
1.1
|
%
|
1.1
|
%
|
1.1
|
%
|
1.1
|
%
|
1.1
|
%
|
||||||||||||||||||||||
Average loans
|
$
|
47.7
|
$
|
47.2
|
$
|
46.5
|
$
|
44.8
|
$
|
43.5
|
10
|
$
|
47.6
|
$
|
43.1
|
10
|
||||||||||||||||||||
Net write-off rate (principal only) (S)
|
1.8
|
%
|
1.7
|
%
|
1.5
|
%
|
1.6
|
%
|
1.5
|
%
|
1.7
|
%
|
1.5
|
%
|
||||||||||||||||||||||
Net write-off rate (principal, interest and fees) (S)
|
2.1
|
%
|
2.0
|
%
|
1.8
|
%
|
1.9
|
%
|
1.7
|
%
|
2.0
|
%
|
1.7
|
%
|
||||||||||||||||||||||
Net interest income divided by average loans (U)
|
10.0
|
%
|
9.8
|
%
|
9.5
|
%
|
9.4
|
%
|
9.0
|
%
|
9.9
|
%
|
9.1
|
%
|
||||||||||||||||||||||
Net interest yield on Card Member loans (U)
|
10.1
|
%
|
10.0
|
%
|
9.6
|
%
|
9.5
|
%
|
9.1
|
%
|
10.0
|
%
|
9.3
|
%
|
# - Denotes a variance of more than 100 percent.
|
|
|
|
International Consumer and Network Services
|
|
(Preliminary)
|
Selected Income Statement and Statistical Information
|
||
(Millions, except percentages)
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
YOY % change
|
FY'17
|
FY'16
|
YOY % change
|
|||||||||||||||||||||||||||
Non-interest revenues
|
$
|
1,247
|
$
|
1,195
|
$
|
1,198
|
$
|
1,205
|
$
|
1,242
|
-
|
$
|
2,442
|
$
|
2,382
|
3
|
||||||||||||||||||||
Interest income
|
246
|
235
|
230
|
231
|
234
|
5
|
481
|
461
|
4
|
|||||||||||||||||||||||||||
Interest expense
|
60
|
53
|
52
|
55
|
58
|
3
|
113
|
112
|
1
|
|||||||||||||||||||||||||||
Net interest income
|
186
|
182
|
178
|
176
|
176
|
6
|
368
|
349
|
5
|
|||||||||||||||||||||||||||
Total revenues net of interest expense
|
1,433
|
1,377
|
1,376
|
1,381
|
1,418
|
1
|
2,810
|
2,731
|
3
|
|||||||||||||||||||||||||||
Provisions for losses
|
84
|
66
|
92
|
84
|
78
|
8
|
150
|
149
|
1
|
|||||||||||||||||||||||||||
Total revenues net of interest expense after provisions for losses
|
1,349
|
1,311
|
1,284
|
1,297
|
1,340
|
1
|
2,660
|
2,582
|
3
|
|||||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||
Marketing, promotion, rewards, Card Member services and other
|
561
|
505
|
642
|
554
|
500
|
12
|
1,066
|
981
|
9
|
|||||||||||||||||||||||||||
Salaries and employee benefits and other operating expenses
|
513
|
514
|
560
|
535
|
567
|
(10
|
)
|
1,027
|
1,073
|
(4
|
)
|
|||||||||||||||||||||||||
Total expenses
|
1,074
|
1,019
|
1,202
|
1,089
|
1,067
|
1
|
2,093
|
2,054
|
2
|
|||||||||||||||||||||||||||
Pretax segment income
|
275
|
292
|
82
|
208
|
273
|
1
|
567
|
528
|
7
|
|||||||||||||||||||||||||||
Income tax provision/(benefit)
|
66
|
74
|
(2
|
)
|
53
|
45
|
47
|
140
|
112
|
25
|
||||||||||||||||||||||||||
Segment income
|
$
|
209
|
$
|
218
|
$
|
84
|
$
|
155
|
$
|
228
|
(8
|
)
|
$
|
427
|
$
|
416
|
3
|
|||||||||||||||||||
Effective tax rate
|
24.0
|
%
|
25.3
|
%
|
(2.4
|
%)
|
25.5
|
%
|
16.5
|
%
|
24.7
|
%
|
21.2
|
%
|
||||||||||||||||||||||
(Billions, except percentages and where indicated)
|
||||||||||||||||||||||||||||||||||||
Card billed business
|
||||||||||||||||||||||||||||||||||||
Proprietary
|
$
|
28.9
|
$
|
26.6
|
$
|
28.1
|
$
|
26.6
|
$
|
26.5
|
9
|
$
|
55.5
|
$
|
51.2
|
8
|
||||||||||||||||||||
Global Network Services (GNS)
|
$
|
45.8
|
$
|
43.4
|
$
|
44.6
|
$
|
44.8
|
$
|
43.8
|
5
|
$
|
89.2
|
$
|
84.3
|
6
|
||||||||||||||||||||
Total
|
$
|
74.7
|
$
|
70.0
|
$
|
72.7
|
$
|
71.4
|
$
|
70.3
|
6
|
$
|
144.7
|
$
|
135.5
|
7
|
||||||||||||||||||||
Total cards-in-force (millions)
|
||||||||||||||||||||||||||||||||||||
Proprietary
|
15.4
|
15.3
|
15.0
|
14.8
|
15.0
|
3
|
15.4
|
15.0
|
3
|
|||||||||||||||||||||||||||
GNS
|
49.2
|
49.0
|
48.6
|
48.1
|
48.0
|
3
|
49.2
|
48.0
|
3
|
|||||||||||||||||||||||||||
Total
|
64.6
|
64.3
|
63.6
|
62.9
|
63.0
|
3
|
64.6
|
63.0
|
3
|
|||||||||||||||||||||||||||
Proprietary basic cards-in-force (millions)
|
10.6
|
10.5
|
10.3
|
10.3
|
10.3
|
3
|
10.6
|
10.3
|
3
|
|||||||||||||||||||||||||||
Average basic Card Member spending (dollars) (M)
|
$
|
2,726
|
$
|
2,542
|
$
|
2,720
|
$
|
2,596
|
$
|
2,609
|
4
|
$
|
5,269
|
$
|
5,066
|
4
|
||||||||||||||||||||
Total segment assets
|
$
|
37.6
|
$
|
36.1
|
$
|
35.7
|
$
|
34.4
|
$
|
35.0
|
7
|
$
|
37.6
|
$
|
35.0
|
7
|
||||||||||||||||||||
Segment capital (AA)
|
$
|
2.8
|
$
|
2.7
|
$
|
2.5
|
$
|
2.7
|
$
|
2.6
|
8
|
$
|
2.8
|
$
|
2.6
|
8
|
||||||||||||||||||||
Return on average segment capital (AA)
|
25.2
|
%
|
26.4
|
%
|
25.4
|
%
|
26.4
|
%
|
25.5
|
%
|
25.2
|
%
|
25.5
|
%
|
||||||||||||||||||||||
Card Member receivables:
|
||||||||||||||||||||||||||||||||||||
Total receivables
|
$
|
6.0
|
$
|
5.5
|
$
|
6.0
|
$
|
5.6
|
$
|
5.6
|
7
|
$
|
6.0
|
$
|
5.6
|
7
|
||||||||||||||||||||
30+ days past due as a % of total
|
1.4
|
%
|
1.5
|
%
|
1.3
|
%
|
1.5
|
%
|
1.4
|
%
|
1.4
|
%
|
1.4
|
%
|
||||||||||||||||||||||
Net write-off rate (principal only) (S)
|
1.9
|
%
|
2.1
|
%
|
1.8
|
%
|
2.0
|
%
|
2.2
|
%
|
2.0
|
%
|
2.2
|
%
|
||||||||||||||||||||||
Net write-off rate (principal and fees) (S)
|
2.0
|
%
|
2.3
|
%
|
1.9
|
%
|
2.2
|
%
|
2.3
|
%
|
2.2
|
%
|
2.4
|
%
|
||||||||||||||||||||||
Card Member loans:
|
||||||||||||||||||||||||||||||||||||
Total loans
|
$
|
7.2
|
$
|
6.8
|
$
|
7.0
|
$
|
6.7
|
$
|
6.6
|
9
|
$
|
7.2
|
$
|
6.6
|
9
|
||||||||||||||||||||
30+ days past due loans as a % of total
|
1.7
|
%
|
1.7
|
%
|
1.6
|
%
|
1.7
|
%
|
1.7
|
%
|
1.7
|
%
|
1.7
|
%
|
||||||||||||||||||||||
Average loans
|
$
|
7.1
|
$
|
6.9
|
$
|
6.8
|
$
|
6.7
|
$
|
6.8
|
4
|
$
|
7.0
|
$
|
6.8
|
3
|
||||||||||||||||||||
Net write-off rate (principal only) (S)
|
2.0
|
%
|
2.0
|
%
|
2.0
|
%
|
2.1
|
%
|
2.1
|
%
|
2.0
|
%
|
2.0
|
%
|
||||||||||||||||||||||
Net write-off rate (principal, interest and fees) (S)
|
2.5
|
%
|
2.5
|
%
|
2.5
|
%
|
2.6
|
%
|
2.5
|
%
|
2.5
|
%
|
2.4
|
%
|
||||||||||||||||||||||
Net interest income divided by average loans (U)
|
10.5
|
%
|
10.6
|
%
|
10.5
|
%
|
10.5
|
%
|
10.4
|
%
|
10.5
|
%
|
10.3
|
%
|
||||||||||||||||||||||
Net interest yield on Card Member loans (U)
|
11.2
|
%
|
11.1
|
%
|
11.0
|
%
|
11.2
|
%
|
10.8
|
%
|
11.1
|
%
|
10.8
|
%
|
# - Denotes a variance of more than 100 percent.
|
|
|
Global Commercial Services
|
|
(Preliminary)
|
Selected Income Statement and Statistical Information
|
||
(Millions, except percentages)
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
YOY % change
|
FY'17
|
FY'16
|
YOY % change
|
|||||||||||||||||||||||||||
Non-interest revenues
|
$
|
2,368
|
$
|
2,271
|
$
|
2,297
|
$
|
2,240
|
$
|
2,280
|
4
|
$
|
4,639
|
$
|
4,470
|
4
|
||||||||||||||||||||
Interest income
|
334
|
319
|
296
|
282
|
310
|
8
|
653
|
631
|
3
|
|||||||||||||||||||||||||||
Interest expense
|
129
|
109
|
104
|
98
|
104
|
24
|
238
|
199
|
20
|
|||||||||||||||||||||||||||
Net interest income
|
205
|
210
|
192
|
184
|
206
|
-
|
415
|
432
|
(4
|
)
|
||||||||||||||||||||||||||
Total revenues net of interest expense
|
2,573
|
2,481
|
2,489
|
2,424
|
2,486
|
3
|
5,054
|
4,902
|
3
|
|||||||||||||||||||||||||||
Provisions for losses
|
154
|
208
|
171
|
134
|
139
|
11
|
362
|
299
|
21
|
|||||||||||||||||||||||||||
Total revenues net of interest expense after provisions for losses
|
2,419
|
2,273
|
2,318
|
2,290
|
2,347
|
3
|
4,692
|
4,603
|
2
|
|||||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||
Marketing, promotion, rewards, Card Member services and other
|
949
|
938
|
983
|
808
|
841
|
13
|
1,887
|
1,607
|
17
|
|||||||||||||||||||||||||||
Salaries and employee benefits and other operating expenses
|
697
|
705
|
790
|
753
|
596
|
17
|
1,402
|
1,325
|
6
|
|||||||||||||||||||||||||||
Total expenses
|
1,646
|
1,643
|
1,773
|
1,561
|
1,437
|
15
|
3,289
|
2,932
|
12
|
|||||||||||||||||||||||||||
Pretax segment income
|
773
|
630
|
545
|
729
|
910
|
(15
|
)
|
1,403
|
1,671
|
(16
|
)
|
|||||||||||||||||||||||||
Income tax provision
|
273
|
212
|
163
|
263
|
334
|
(18
|
)
|
485
|
610
|
(20
|
)
|
|||||||||||||||||||||||||
Segment income
|
$
|
500
|
$
|
418
|
$
|
382
|
$
|
466
|
$
|
576
|
(13
|
)
|
$
|
918
|
$
|
1,061
|
(13
|
)
|
||||||||||||||||||
Effective tax rate
|
35.3
|
%
|
33.7
|
%
|
29.9
|
%
|
36.1
|
%
|
36.7
|
%
|
34.6
|
%
|
36.5
|
%
|
||||||||||||||||||||||
(Billions, except percentages and where indicated)
|
||||||||||||||||||||||||||||||||||||
Card billed business
|
$
|
109.0
|
$
|
102.8
|
$
|
105.1
|
$
|
100.1
|
$
|
104.3
|
5
|
$
|
211.9
|
$
|
202.8
|
4
|
||||||||||||||||||||
Total cards-in-force (millions)
|
13.8
|
13.7
|
13.6
|
13.6
|
13.4
|
3
|
13.8
|
13.4
|
3
|
|||||||||||||||||||||||||||
Basic cards-in-force (millions)
|
13.8
|
13.7
|
13.6
|
13.6
|
13.4
|
3
|
13.8
|
13.4
|
3
|
|||||||||||||||||||||||||||
Average basic Card Member spending (dollars) (M)
|
$
|
7,920
|
$
|
7,533
|
$
|
7,729
|
$
|
7,386
|
$
|
7,060
|
12
|
$
|
15,455
|
$
|
13,592
|
14
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total segment assets
|
$
|
51.0
|
$
|
48.3
|
$
|
46.5
|
$
|
46.8
|
$
|
46.2
|
10
|
$
|
51.0
|
$
|
46.2
|
10
|
||||||||||||||||||||
Segment capital (AA)
|
$
|
7.4
|
$
|
7.2
|
$
|
7.0
|
$
|
7.3
|
$
|
7.7
|
(3
|
)
|
$
|
7.4
|
$
|
7.7
|
(3
|
)
|
||||||||||||||||||
Return on average segment capital (AA)
|
24.2
|
%
|
25.4
|
%
|
26.4
|
%
|
28.0
|
%
|
28.1
|
%
|
24.2
|
%
|
28.1
|
%
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Card Member receivables (N)
|
$
|
32.1
|
$
|
31.2
|
$
|
29.0
|
$
|
29.6
|
$
|
29.1
|
10
|
$
|
32.1
|
$
|
29.1
|
10
|
||||||||||||||||||||
Card Member loans (N)
|
$
|
10.4
|
$
|
10.0
|
$
|
9.5
|
$
|
9.1
|
$
|
8.7
|
20
|
$
|
10.4
|
$
|
8.7
|
20
|
||||||||||||||||||||
Card Member receivables: (N)
|
||||||||||||||||||||||||||||||||||||
Total receivables - GCP (T)
|
$
|
16.9
|
$
|
16.6
|
$
|
14.8
|
$
|
15.8
|
$
|
15.3
|
10
|
$
|
16.9
|
$
|
15.3
|
10
|
||||||||||||||||||||
90+ days past billing as a % of total - GCP (T)
|
0.8
|
%
|
0.7
|
%
|
0.9
|
%
|
0.8
|
%
|
0.7
|
%
|
0.8
|
%
|
0.7
|
%
|
||||||||||||||||||||||
Net loss ratio (as a % of charge volume) - GCP (T)
|
0.10
|
%
|
0.11
|
%
|
0.10
|
%
|
0.11
|
%
|
0.09
|
%
|
0.10
|
%
|
0.09
|
%
|
||||||||||||||||||||||
Total receivables - Global Small Business Services (GSBS) (AB)
|
$
|
15.2
|
$
|
14.6
|
$
|
14.3
|
$
|
13.8
|
$
|
13.7
|
11
|
$
|
15.2
|
$
|
13.7
|
11
|
||||||||||||||||||||
30+ days past due as a % of total - GSBS
|
1.4
|
%
|
1.6
|
%
|
1.6
|
%
|
1.5
|
%
|
1.4
|
%
|
1.4
|
%
|
1.4
|
%
|
||||||||||||||||||||||
Net write-off rate (principal only) - GSBS (S)
|
1.6
|
%
|
1.8
|
%
|
1.2
|
%
|
1.3
|
%
|
1.6
|
%
|
1.7
|
%
|
1.7
|
%
|
||||||||||||||||||||||
Net write-off rate (principal and fees) - GSBS (S)
|
1.8
|
%
|
2.0
|
%
|
1.4
|
%
|
1.5
|
%
|
1.9
|
%
|
1.9
|
%
|
2.0
|
%
|
||||||||||||||||||||||
Card Member loans: (N) (AC)
|
||||||||||||||||||||||||||||||||||||
Total loans - GSBS
|
$
|
10.3
|
$
|
10.0
|
$
|
9.5
|
$
|
9.0
|
$
|
8.6
|
20
|
$
|
10.3
|
$
|
8.6
|
20
|
||||||||||||||||||||
30+ days past due as a % of total - GSBS
|
1.1
|
%
|
1.2
|
%
|
1.1
|
%
|
1.1
|
%
|
1.1
|
%
|
1.1
|
%
|
1.1
|
%
|
||||||||||||||||||||||
Average loans - GSBS
|
$
|
10.1
|
$
|
9.6
|
$
|
9.3
|
$
|
8.8
|
$
|
8.5
|
19
|
$
|
9.8
|
$
|
8.3
|
18
|
||||||||||||||||||||
Net write-off rate (principal only) - GSBS (S)
|
1.5
|
%
|
1.6
|
%
|
1.4
|
%
|
1.5
|
%
|
1.3
|
%
|
1.5
|
%
|
1.3
|
%
|
||||||||||||||||||||||
Net write-off rate (principal, interest and fees) - GSBS (S)
|
1.8
|
%
|
1.8
|
%
|
1.7
|
%
|
1.8
|
%
|
1.6
|
%
|
1.8
|
%
|
1.6
|
%
|
||||||||||||||||||||||
Net interest income divided by average loans (U)
|
8.0
|
%
|
8.7
|
%
|
8.3
|
%
|
8.3
|
%
|
8.2
|
%
|
8.3
|
%
|
8.6
|
%
|
||||||||||||||||||||||
Net interest yield on Card Member loans (U)
|
10.9
|
%
|
11.1
|
%
|
10.6
|
%
|
10.6
|
%
|
10.3
|
%
|
11.0
|
%
|
10.5
|
%
|
# - Denotes a variance of more than 100 percent.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Merchant Services
|
|
(Preliminary)
|
||||||||||||||||
Selected Income Statement and Statistical Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
YOY % change
|
FY'17
|
FY'16
|
YOY % change
|
|||||||||||||||||||||||||||
Non-interest revenues
|
$
|
1,086
|
$
|
1,017
|
$
|
1,063
|
$
|
1,044
|
$
|
1,087
|
-
|
$
|
2,103
|
$
|
2,128
|
(1
|
)
|
|||||||||||||||||||
Interest income
|
1
|
-
|
-
|
-
|
1
|
-
|
1
|
1
|
-
|
|||||||||||||||||||||||||||
Interest expense
|
(65
|
)
|
(58
|
)
|
(57
|
)
|
(60
|
)
|
(61
|
)
|
7
|
(123
|
)
|
(120
|
)
|
3
|
||||||||||||||||||||
Net interest income
|
66
|
58
|
57
|
60
|
62
|
6
|
124
|
121
|
2
|
|||||||||||||||||||||||||||
Total revenues net of interest expense
|
1,152
|
1,075
|
1,120
|
1,104
|
1,149
|
-
|
2,227
|
2,249
|
(1
|
)
|
||||||||||||||||||||||||||
Provisions for losses
|
-
|
3
|
4
|
8
|
5
|
#
|
3
|
13
|
(77
|
)
|
||||||||||||||||||||||||||
Total revenues net of interest expense after provisions for losses
|
1,152
|
1,072
|
1,116
|
1,096
|
1,144
|
1
|
2,224
|
2,236
|
(1
|
)
|
||||||||||||||||||||||||||
Expenses
|
||||||||||||||||||||||||||||||||||||
Marketing, promotion, rewards, Card Member services and other
|
37
|
32
|
61
|
55
|
58
|
(36
|
)
|
69
|
116
|
(41
|
)
|
|||||||||||||||||||||||||
Salaries and employee benefits and other operating expenses
|
435
|
473
|
499
|
470
|
489
|
(11
|
)
|
908
|
952
|
(5
|
)
|
|||||||||||||||||||||||||
Total expenses
|
472
|
505
|
560
|
525
|
547
|
(14
|
)
|
977
|
1,068
|
(9
|
)
|
|||||||||||||||||||||||||
Pretax segment income
|
680
|
567
|
556
|
571
|
597
|
14
|
1,247
|
1,168
|
7
|
|||||||||||||||||||||||||||
Income tax provision
|
250
|
204
|
187
|
212
|
224
|
12
|
454
|
438
|
4
|
|||||||||||||||||||||||||||
Segment income
|
$
|
430
|
$
|
363
|
$
|
369
|
$
|
359
|
$
|
373
|
15
|
$
|
793
|
$
|
730
|
9
|
||||||||||||||||||||
Effective tax rate
|
36.8
|
%
|
36.0
|
%
|
33.6
|
%
|
37.1
|
%
|
37.5
|
%
|
36.4
|
%
|
37.5
|
%
|
||||||||||||||||||||||
Loyalty Coalition revenue
|
$
|
114
|
$
|
102
|
$
|
106
|
$
|
106
|
$
|
104
|
10
|
$
|
216
|
$
|
198
|
9
|
||||||||||||||||||||
(Billions, except percentages and where indicated)
|
||||||||||||||||||||||||||||||||||||
Average discount rate (O)
|
2.44
|
%
|
2.45
|
%
|
2.44
|
%
|
2.47
|
%
|
2.43
|
%
|
2.44
|
%
|
2.43
|
%
|
||||||||||||||||||||||
Total segment assets
|
$
|
25.5
|
$
|
24.5
|
$
|
24.3
|
$
|
23.2
|
$
|
24.1
|
6
|
$
|
25.5
|
$
|
24.1
|
6
|
||||||||||||||||||||
Segment capital (AA)
|
$
|
2.7
|
$
|
2.7
|
$
|
2.5
|
$
|
2.3
|
$
|
2.4
|
13
|
$
|
2.7
|
$
|
2.4
|
13
|
||||||||||||||||||||
Return on average segment capital (AA)
|
59.8
|
%
|
59.1
|
%
|
60.2
|
%
|
59.9
|
%
|
61.9
|
%
|
59.8
|
%
|
61.9
|
%
|
||||||||||||||||||||||
|
# - Denotes a variance of more than 100 percent.
|
|
|
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
|
|||||||||||||||||||
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|||||||||||||||
|
2017
|
2017
|
2016
|
2016
|
2016
|
|||||||||||||||
ROE
|
||||||||||||||||||||
Net income
|
$
|
4,544
|
$
|
5,219
|
$
|
5,408
|
$
|
5,482
|
$
|
5,606
|
||||||||||
Average shareholders' equity
|
$
|
20,909
|
$
|
20,786
|
$
|
20,805
|
$
|
20,969
|
$
|
21,195
|
||||||||||
Return on average equity (C)
|
21.7
|
%
|
25.1
|
%
|
26.0
|
%
|
26.1
|
%
|
26.4
|
%
|
||||||||||
Reconciliation of ROCE
|
||||||||||||||||||||
Net income
|
$
|
4,544
|
$
|
5,219
|
$
|
5,408
|
$
|
5,482
|
$
|
5,606
|
||||||||||
Preferred shares dividends and related accretion
|
80
|
80
|
80
|
81
|
82
|
|||||||||||||||
Earnings allocated to participating share awards and other
|
36
|
42
|
43
|
43
|
44
|
|||||||||||||||
Net income attributable to common shareholders
|
$
|
4,428
|
$
|
5,097
|
$
|
5,285
|
$
|
5,358
|
$
|
5,480
|
||||||||||
Average shareholders' equity
|
$
|
20,909
|
$
|
20,786
|
$
|
20,805
|
$
|
20,969
|
$
|
21,195
|
||||||||||
Average preferred shares
|
1,584
|
1,584
|
1,584
|
1,584
|
1,584
|
|||||||||||||||
Average common shareholders' equity
|
$
|
19,325
|
$
|
19,202
|
$
|
19,221
|
$
|
19,385
|
$
|
19,611
|
||||||||||
Return on average common equity (C)
|
22.9
|
%
|
26.5
|
%
|
27.5
|
%
|
27.6
|
%
|
27.9
|
%
|
American Express Company
|
|
(Preliminary)
|
Appendix II
|
|
|
Components of Return on Average Segment Capital (ROSC)
|
||
(Millions, except percentages)
|
|
|
|
For the Twelve Months Ended
|
|||||||||||||||||||
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|||||||||||||||
|
2017
|
2017
|
2016
|
2016
|
2016
|
|||||||||||||||
U.S. Consumer Services
|
||||||||||||||||||||
Segment income
|
$
|
1,661
|
$
|
2,288
|
$
|
2,513
|
$
|
2,703
|
$
|
2,843
|
||||||||||
Average segment capital (AA)
|
$
|
7,133
|
$
|
7,184
|
$
|
7,204
|
$
|
7,235
|
$
|
7,318
|
||||||||||
Return on average segment capital (AA)
|
23.3
|
%
|
31.9
|
%
|
34.9
|
%
|
37.4
|
%
|
38.9
|
%
|
||||||||||
International Consumer and Network Services
|
||||||||||||||||||||
Segment income
|
$
|
666
|
$
|
685
|
$
|
655
|
$
|
711
|
$
|
711
|
||||||||||
Average segment capital (AA)
|
$
|
2,646
|
$
|
2,592
|
$
|
2,577
|
$
|
2,695
|
$
|
2,790
|
||||||||||
Return on average segment capital (AA)
|
25.2
|
%
|
26.4
|
%
|
25.4
|
%
|
26.4
|
%
|
25.5
|
%
|
||||||||||
Global Commercial Services
|
||||||||||||||||||||
Segment income
|
$
|
1,766
|
$
|
1,842
|
$
|
1,909
|
$
|
2,014
|
$
|
2,016
|
||||||||||
Average segment capital (AA)
|
$
|
7,290
|
$
|
7,262
|
$
|
7,237
|
$
|
7,202
|
$
|
7,170
|
||||||||||
Return on average segment capital (AA)
|
24.2
|
%
|
25.4
|
%
|
26.4
|
%
|
28.0
|
%
|
28.1
|
%
|
||||||||||
Global Merchant Services
|
||||||||||||||||||||
Segment income
|
$
|
1,521
|
$
|
1,464
|
$
|
1,458
|
$
|
1,453
|
$
|
1,491
|
||||||||||
Average segment capital (AA)
|
$
|
2,546
|
$
|
2,478
|
$
|
2,420
|
$
|
2,425
|
$
|
2,409
|
||||||||||
Return on average segment capital (AA)
|
59.8
|
%
|
59.1
|
%
|
60.2
|
%
|
59.9
|
%
|
61.9
|
%
|
American Express Company
|
|
(Preliminary)
|
||||||||||||
Appendix III
|
|
|
|
|
||||||||||
Net Interest Yield on Card Member Loans
|
|
|
|
|
|
|||||||||
(Millions, except percentages and where indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2'17
|
Q1'17
|
Q4'16
|
Q3'16
|
Q2'16
|
FY'17
|
FY'16
|
|||||||||||||||||||||
Consolidated
|
||||||||||||||||||||||||||||
Net interest income
|
$
|
1,530
|
$
|
1,500
|
$
|
1,408
|
$
|
1,334
|
$
|
1,449
|
$
|
3,030
|
$
|
3,029
|
||||||||||||||
Exclude:
|
||||||||||||||||||||||||||||
Interest expense not attributable to the Company's Card Member loan portfolio
|
302
|
252
|
238
|
261
|
247
|
554
|
485
|
|||||||||||||||||||||
Interest income not attributable to the Company's Card Member loan portfolio
|
(155
|
)
|
(130
|
)
|
(94
|
)
|
(104
|
)
|
(102
|
)
|
(285
|
)
|
(205
|
)
|
||||||||||||||
Adjusted net interest income (AD)
|
$
|
1,677
|
$
|
1,622
|
$
|
1,552
|
$
|
1,491
|
$
|
1,594
|
$
|
3,299
|
$
|
3,309
|
||||||||||||||
Average loans including Held for Sale (billions)
|
$
|
65.1
|
$
|
63.9
|
$
|
62.6
|
$
|
60.3
|
$
|
67.6
|
$
|
64.6
|
$
|
69.2
|
||||||||||||||
Net interest income divided by average loans (AE)
|
9.4
|
%
|
9.4
|
%
|
9.0
|
%
|
8.8
|
%
|
8.6
|
%
|
9.4
|
%
|
8.8
|
%
|
||||||||||||||
Net interest yield on Card Member loans (AF)
|
10.3
|
%
|
10.3
|
%
|
9.9
|
%
|
9.8
|
%
|
9.5
|
%
|
10.3
|
%
|
9.6
|
%
|
||||||||||||||
U.S. Consumer Services
|
||||||||||||||||||||||||||||
Net interest income
|
$
|
1,198
|
$
|
1,162
|
$
|
1,103
|
$
|
1,053
|
$
|
1,139
|
$
|
2,360
|
$
|
2,390
|
||||||||||||||
Exclude:
|
||||||||||||||||||||||||||||
Interest expense not attributable to the Company's Card Member loan portfolio
|
28
|
23
|
21
|
20
|
20
|
51
|
39
|
|||||||||||||||||||||
Interest income not attributable to the Company's Card Member loan portfolio
|
(23
|
)
|
(18
|
)
|
(8
|
)
|
(6
|
)
|
(5
|
)
|
(41
|
)
|
(10
|
)
|
||||||||||||||
Adjusted net interest income (AD)
|
$
|
1,203
|
$
|
1,167
|
$
|
1,116
|
$
|
1,067
|
$
|
1,154
|
$
|
2,370
|
$
|
2,419
|
||||||||||||||
Average loans including Held for Sale (billions)
|
$
|
47.7
|
$
|
47.2
|
$
|
46.5
|
$
|
44.8
|
$
|
50.8
|
$
|
47.6
|
$
|
52.3
|
||||||||||||||
Net interest income divided by average loans (AE)
|
10.0
|
%
|
9.8
|
%
|
9.5
|
%
|
9.4
|
%
|
9.0
|
%
|
9.9
|
%
|
9.1
|
%
|
||||||||||||||
Net interest yield on Card Member loans (AF)
|
10.1
|
%
|
10.0
|
%
|
9.6
|
%
|
9.5
|
%
|
9.1
|
%
|
10.0
|
%
|
9.3
|
%
|
||||||||||||||
International Consumer and Network Services
|
||||||||||||||||||||||||||||
Net interest income
|
$
|
186
|
$
|
182
|
$
|
178
|
$
|
176
|
$
|
176
|
$
|
368
|
$
|
349
|
||||||||||||||
Exclude:
|
||||||||||||||||||||||||||||
Interest expense not attributable to the Company's Card Member loan portfolio
|
14
|
10
|
11
|
12
|
10
|
24
|
21
|
|||||||||||||||||||||
Interest income not attributable to the Company's Card Member loan portfolio
|
|
(3
|
)
|
|
(3
|
)
|
-
|
-
|
(4
|
)
|
(6
|
)
|
(7
|
)
|
||||||||||||||
Adjusted net interest income (AD)
|
$
|
197
|
$
|
189
|
$
|
189
|
$
|
188
|
$
|
182
|
$
|
386
|
$
|
363
|
||||||||||||||
Average loans (billions)
|
$
|
7.1
|
$
|
6.9
|
$
|
6.8
|
$
|
6.7
|
$
|
6.8
|
$
|
7.0
|
$
|
6.8
|
||||||||||||||
Net interest income divided by average loans (AE)
|
10.5
|
%
|
10.6
|
%
|
10.5
|
%
|
10.5
|
%
|
10.4
|
%
|
10.5
|
%
|
10.3
|
%
|
||||||||||||||
Net interest yield on Card Member loans (AF)
|
11.2
|
%
|
11.1
|
%
|
11.0
|
%
|
11.2
|
%
|
10.8
|
%
|
11.1
|
%
|
10.8
|
%
|
||||||||||||||
Global Commercial Services
|
||||||||||||||||||||||||||||
Net interest income
|
$
|
205
|
$
|
210
|
$
|
193
|
$
|
184
|
$
|
206
|
$
|
415
|
$
|
432
|
||||||||||||||
Exclude:
|
||||||||||||||||||||||||||||
Interest expense not attributable to the Company's Card Member loan portfolio
|
99
|
83
|
81
|
79
|
80
|
182
|
152
|
|||||||||||||||||||||
Interest income not attributable to the Company's Card Member loan portfolio
|
(27
|
)
|
(27
|
)
|
(26
|
)
|
(28
|
)
|
(29
|
)
|
(54
|
)
|
(57
|
)
|
||||||||||||||
Adjusted net interest income (AD)
|
$
|
277
|
$
|
266
|
$
|
248
|
$
|
235
|
$
|
257
|
$
|
543
|
$
|
527
|
||||||||||||||
Average loans including Held for Sale (billions)
|
$
|
10.2
|
$
|
9.7
|
$
|
9.3
|
$
|
8.8
|
$
|
10.0
|
$
|
10.0
|
$
|
10.1
|
||||||||||||||
Net interest income divided by average loans (AE)
|
8.0
|
%
|
8.7
|
%
|
8.3
|
%
|
8.3
|
%
|
8.2
|
%
|
8.3
|
%
|
8.5
|
%
|
||||||||||||||
Net interest yield on Card Member loans (AF)
|
10.9
|
%
|
11.1
|
%
|
10.6
|
%
|
10.6
|
%
|
10.3
|
%
|
11.0
|
%
|
10.5
|
%
|
American Express Company
|
|
|
|
|
|
(Preliminary)
|
|
Appendix IV
|
|
|
|
|
|
|
|
Reconciliations of Adjustments
|
|
|
|
|
|
|
|
(Millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2'17
|
Q2'16
|
YOY % Change
|
||||||||||
Adjusted Total Revenues Net of Interest Expense
|
||||||||||||
Total revenues net of interest expense
|
$
|
8,307
|
$
|
8,235
|
1
|
|||||||
Estimated Costco-related revenues (AG)
|
-
|
530
|
||||||||||
Adjusted total revenues net of interest expense
|
$
|
8,307
|
$
|
7,705
|
8
|
|||||||
FX-adjusted Adjusted Total revenues net of interest expense (V)
|
$
|
8,307
|
$
|
7,657
|
8
|
|||||||
|
||||||||||||
Adjusted Operating Expenses
|
||||||||||||
Operating expenses (AH)
|
$
|
2,669
|
$
|
1,921
|
39
|
|||||||
Gain on sale of Costco portfolio (pre-tax)
|
-
|
1,091
|
||||||||||
Restructuring charge (pre-tax)
|
-
|
232
|
||||||||||
Adjusted Operating Expenses
|
$
|
2,669
|
$
|
2,780
|
(4
|
)
|
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 $11 million, $10 million, $6 million, $9 million and $17 million in Q2'17, Q1'17, Q4'16, Q3'16 and Q2'16, respectively, and (ii) dividends on preferred shares of $19 million, $21 million, $19 million, $21 million and $19 million in Q2'17, Q1'17, Q4'16, Q3'16 and Q2'16, 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 Second Quarter 2017 Earnings Release and may be revised in the Company's 2017 Form 10-Q for period ended June 30, 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 a reserve of $60 million related to loan balances of $245 million in Q2'16, 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 Q2'17 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.
|
(AH)
|
|
Operating expenses represent salaries and employee benefits, professional services, occupancy and equipment, communications, and other, net.
|
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