EX-99.1 2 a2020restatementexhibi.htm EX-99.1 Document

EXHIBIT 99.1

Global Consumer Services Group (Preliminary)
Selected Income Statement Information
(Millions, except percentages)

Q4'19Q3'19Q2'19Q1'19Q4'18Q3'18Q2'18Q1'18
Non-interest revenues *$4,371  $4,226  $4,193  $3,912  $4,019  $3,850  $3,850  $3,638  
Interest income2,442  2,402  2,297  2,272  2,240  2,140  1,994  1,949  
Interest expense **412  437  446  435  413  380  347  308  
Total revenues net of interest expense6,401  6,191  6,044  5,749  5,846  5,610  5,497  5,279  
Total provisions for losses780  653  651  551  727  609  566  529  
Total revenues net of interest expense after provisions for losses5,621  5,538  5,393  5,198  5,119  5,001  4,931  4,750  
Total expenses *4,463  4,275  4,288  3,984  4,192  3,845  3,793  3,551  
Pretax segment income1,158  1,263  1,105  1,214  927  1,156  1,138  1,199  
Income tax provision177  272  224  260  72  242  233  258  
Segment income$981  $991  $881  $954  $855  $914  $905  $941  
Effective tax rate15.3 %21.5 %20.3 %21.4 %7.8 %20.9 %20.5 %21.5 %
* Reflects changes as a result of enhancements to our transfer pricing methodology related to the sharing of revenues between our card issuing, network and merchant businesses.
** Reflects changes as a result of enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios.


See Appendix III for footnote references.
1

Global Commercial Services
(Preliminary)

Selected Income Statement Information
(Millions, except percentages)
Q4'19Q3'19Q2'19Q1'19Q4'18Q3'18Q2'18Q1'18
Non-interest revenues *$3,187  $3,070  $3,059  $2,926  $2,972  $2,881  $2,876  $2,752  
Interest income493  485  468  454  435  416  393  377  
Interest expense **247  262  269  256  254  237  221  186  
Total revenues net of interest expense3,433  3,293  3,258  3,124  3,153  3,060  3,048  2,943  
Total provisions for losses236  222  206  254  224  200  237  239  
Total revenues net of interest expense after provisions for losses3,197  3,071  3,052  2,870  2,929  2,860  2,811  2,704  
Total expenses *2,560  2,358  2,355  2,225  2,354  2,194  2,204  2,088  
Pretax segment income637  713  697  645  575  666  607  616  
Income tax provision87  145  136  133  44  142  126  140  
Segment income$550  $568  $561  $512  $531  $524  $481  $476  
Effective tax rate13.7 %20.3 %19.5 %20.6 %7.7 %21.3 %20.8 %22.7 %
* Reflects changes as a result of enhancements to our transfer pricing methodology related to the sharing of revenues between our card issuing, network and merchant businesses.
** Reflects changes as a result of enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios.


See Appendix III for footnote references.
2

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

Q4'19Q3'19Q2'19Q1'19Q4'18Q3'18Q2'18Q1'18
Non-interest revenues *$1,505  $1,471  $1,478  $1,449  $1,453  $1,424  $1,442  $1,471  
Interest income6  6  7  9  8  6  7  9  
Interest expense **(62) (74) (87) (80) (74) (65) (56) (49) 
Total revenues net of interest expense1,573  1,551  1,572  1,538  1,535  1,495  1,505  1,529  
Total provisions for losses9  4  3  4  6  6  4  6  
Total revenues net of interest expense after provisions for losses1,564  1,547  1,569  1,534  1,529  1,489  1,501  1,523  
Total expenses *998  845  812  777  988  799  832  880  
Pretax segment income566  702  757  757  541  690  669  643  
Income tax provision92  179  193  186  105  168  184  176  
Segment income $474  $523  $564  $571  $436  $522  $485  $467  
Effective tax rate16.3 %25.5 %25.5 %24.6 %19.4 %24.3 %27.5 %27.4 %
* Reflects changes as a result of enhancements to our transfer pricing methodology related to the sharing of revenues between our card issuing, network and merchant businesses.
** Reflects changes as a result of enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios.


See Appendix III for footnote references.
3

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

Q4'19Q3'19Q2'19Q1'19Q4'18Q3'18Q2'18Q1'18YTD'19YTD'18
Consolidated
Net interest income$2,284  $2,203  $2,074  $2,059  $2,032  $1,961  $1,829  $1,841  $8,620  $7,663  
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *421  461  465  486  445  425  390  332  1,833  1,592  
Interest income not attributable to the Company's Card Member loan portfolio (B)(271) (308) (312) (335) (287) (274) (236) (213) (1,226) (1,010) 
Adjusted net interest income (C)$2,434  $2,356  $2,227  $2,210  $2,190  $2,112  $1,983  $1,960  $9,227  $8,245  
Average Card Member loans (billions)$85.2  $83.3  $81.9  $80.6  $79.4  $76.4  $74.1  $72.7  $82.8  $75.8  
Net interest income divided by average Card Member loans (D)10.7 %10.6 %10.1 %10.2 %10.2 %10.3 %9.9 %10.1 %10.4 %10.1 %
Net interest yield on average Card Member loans (E) *11.3 %11.2 %10.9 %11.1 %10.9 %11.0 %10.7 %10.9 %11.1 %10.9 %
Global Consumer Services Group
U.S.
Net interest income *$1,750  $1,707  $1,606  $1,596  $1,597  $1,535  $1,431  $1,422  $6,659  $5,985  
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *73  68  67  69  66  62  60  44  277  232  
Interest income not attributable to the Company's Card Member loan portfolio (B)(58) (56) (52) (53) (51) (46) (42) (39) (219) (178) 
Adjusted net interest income (C)$1,765  $1,719  $1,621  $1,612  $1,612  $1,551  $1,449  $1,427  $6,717  $6,039  
Average Card Member loans (billions)$60.6  $59.7  $58.8  $58.3  $57.8  $55.4  $53.7  $52.9  $59.4  $55.1  
Net interest income divided by average Card Member loans (D) *11.6 %11.4 %10.9 %11.0 %11.1 %11.1 %10.7 %10.8 %11.2 %10.9 %
Net interest yield on average Card Member loans (E) *11.6 %11.4 %11.1 %11.2 %11.1 %11.1 %10.8 %10.9 %11.3 %11.0 %
Outside the U.S.
Net interest income *$280  $258  $245  $241  $230  $225  $216  $219  $1,024  $890  
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *22  22  20  21  17  19  15  18  85  69  
Interest income not attributable to the Company's Card Member loan portfolio (B)(4) (4) (4) (3) —  (3) (2) (3) (15) (8) 
Adjusted net interest income (C)$298  $276  $261  $259  $247  $241  $229  $234  $1,094  $951  
Average Card Member loans (billions)$10.5  $10.0  $9.9  $9.7  $9.3  $8.9  $8.8  $8.6  $10.0  $8.9  
Net interest income divided by average Card Member loans (D) *10.7 %10.3 %9.9 %9.9 %9.9 %10.1 %9.8 %10.2 %10.2 %10.0 %
Net interest yield on average Card Member loans (E) *11.3 %11.0 %10.6 %10.9 %10.6 %10.7 %10.5 %11.0 %10.9 %10.7 %
Total
Net interest income *$2,030  $1,965  $1,851  $1,837  $1,827  $1,760  $1,647  $1,641  $7,683  $6,875  
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *95  90  87  90  83  81  76  61  362  301  
Interest income not attributable to the Company's Card Member loan portfolio (B)(62) (60) (56) (56) (51) (49) (45) (41) (234) (186) 
Adjusted net interest income (C)$2,063  $1,995  $1,882  $1,871  $1,859  $1,792  $1,678  $1,661  $7,811  $6,990  
Average Card Member loans (billions)$71.1  $69.7  $68.7  $68.0  $67.1  $64.4  $62.5  $61.6  $69.4  $64.0  
Net interest income divided by average Card Member loans (D) *11.4 %11.3 %10.8 %10.8 %10.9 %10.9 %10.5 %10.7 %11.1 %10.7 %
Net interest yield on average Card Member loans (E) *11.5 %11.4 %11.0 %11.2 %11.0 %11.0 %10.8 %10.9 %11.3 %10.9 %
Global Commercial Services
Net interest income *$246  $223  $199  $198  $181  $179  $172  $191  $866  $723  
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio (A) *184  194  201  192  194  183  $171  $145  $771  $693  
Interest income not attributable to the Company's Card Member loan portfolio (B)(59) (55) (55) (52) (44) (42) $(38) $(37) $(221) $(161) 
Adjusted net interest income (C)$371  $362  $345  $338  $331  $320  $305  $299  $1,416  $1,255  
Average Card Member loans (billions)$14.1  $13.6  $13.2  $12.6  $12.4  $12.0  $11.7  $11.2  $13.4  $11.8  
Net interest income divided by average Card Member loans (D) *7.0 %6.6 %6.0 %6.3 %5.8 %6.0 %5.9 %6.8 %6.5 %6.1 %
Net interest yield on average Card Member loans (E) *10.4 %10.5 %10.5 %10.9 %10.6 %10.6 %10.5 %10.8 %10.6 %10.7 %
* Reflects changes as a result of enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios.


See Appendix III for footnote references.
4

American Express Company(Preliminary)
Appendix I
Consolidated Statements of Income *
(Millions, except percentages and per share amounts)
Q4'19Q3'19Q2'19Q1'19Q4'18Q3'18Q2'18Q1'18
Total non-interest revenues$9,081  $8,786  $8,764  $8,305  $8,442  $8,183  $8,173  $7,877  
Total interest income3,085  3,080  2,965  2,954  2,866  2,738  2,540  2,462  
Total interest expense801  877  891  895  834  777  711  621  
Total revenues net of interest expense11,365  10,989  10,838  10,364  10,474  10,144  10,002  9,718  
Total provisions for losses1,024  879  861  809  954  817  806  775  
Total revenues net of interest expense after provisions for losses10,341  10,110  9,977  9,555  9,520  9,327  9,196  8,943  
Total expenses8,355  7,844  7,758  7,597  7,689  7,209  7,105  6,861  
Pretax income1,986  2,266  2,219  1,958  1,831  2,118  2,091  2,082  
Income tax provision (benefit)293  511  458  408  (179) 464  468  448  
Net income$1,693  $1,755  $1,761  $1,550  $2,010  $1,654  $1,623  $1,634  
Net income attributable to common shareholders (F)$1,661  $1,723  $1,729  $1,518  $1,975  $1,621  $1,591  $1,600  
Effective tax rate14.8 %22.6 %20.6 %20.8 %(9.8)%21.9 %22.4 %21.5 %
Earnings Per Common Share
Basic
Net income attributable to common shareholders$2.04  $2.09  $2.07  $1.81  $2.33  $1.89  $1.85  $1.86  
Average common shares outstanding814  825  834  841  850  858  860  859  
Diluted
Net income attributable to common shareholders $2.03  $2.08  $2.07  $1.80  $2.32  $1.88  $1.84  $1.86  
Average common shares outstanding816  827  836  843  852  860  862  861  
Cash dividends declared per common share $0.43  $0.43  $0.39  $0.39  $0.39  $0.39  $0.35  $0.35  
* The American Express Consolidated Statements of Income and Earnings Per Common Share remain unchanged and are being provided for context.


See Appendix III for footnote references.
5

American Express Company (Preliminary)
Appendix II
Selected Income Statement Information by Segment 
(Millions)   

Global Consumer Services Group
(GCSG)		Global Commercial Services
(GCS)		Global Merchant and Network Services
(GMNS)		Corporate and OtherConsolidated
Twelve months ended December 31, 2019     
Non-interest revenues *$16,702  $12,242  $5,903  $89  $34,936  
Interest income9,413  1,900  28  743  12,084  
Interest expense **1,730  1,034  (303) 1,003  3,464  
Total revenues net of interest expense24,385  13,108  6,234  (171) 43,556  
Total provisions for losses2,635  918  20  —  3,573  
Total revenues net of interest expense after provisions for losses21,750  12,190  6,214  (171) 39,983  
Total expenses *17,010  9,498  3,432  1,614  31,554  
Pretax income (loss)4,740  2,692  2,782  (1,785) 8,429  
Income tax provision (benefit)933  501  650  (414) 1,670  
Net income (loss)$3,807  $2,191  $2,132  $(1,371) $6,759  
Twelve months ended December 31, 2018
Non-interest revenues *$15,357  $11,481  $5,790  $47  $32,675  
Interest income8,323  1,621  30  632  10,606  
Interest expense **1,448  898  (244) 841  2,943  
Total revenues net of interest expense22,232  12,204  6,064  (162) 40,338  
Total provisions for losses2,431  900  22  (1) 3,352  
Total revenues net of interest expense after provisions for losses19,801  11,304  6,042  (161) 36,986  
Total expenses *15,381  8,840  3,499  1,144  28,864  
Pretax income (loss)4,420  2,464  2,543  (1,305) 8,122  
Income tax provision (benefit)805  452  633  (689) 1,201  
Net income (loss)$3,615  $2,012  $1,910  $(616) $6,921  
* Reflects changes as a result of enhancements to our transfer pricing methodology related to the sharing of revenues between our card issuing, network and merchant businesses.
** Reflects changes as a result of enhancements to our methodology related to the allocation of certain funding costs primarily related to our Card Member loan and Card Member receivable portfolios.


See Appendix III for footnote references.
6

Appendix III
(Preliminary)

All Information in the preceding tables is presented on a basis prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), unless otherwise indicated.
(A)Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(B)Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.
(C)Adjusted net interest income is a non-GAAP measure that represents net interest income attributable to our Card Member loans (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 represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio.
(D)Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, 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 average Card Member loans.
(E)Net interest yield on average Card Member loans is a non-GAAP measure that is computed by dividing adjusted net interest income by average Card Member loans, computed on an annualized basis. Reserves and net write-offs related to uncollectible interest are recorded through provisions for losses, and thus not included in the net interest yield calculation. The Company believes that net interest yield on average Card Member loans is useful to investors because it provides a measure of profitability of the Company's Card Member loan portfolio.
(F)Represents net income, less (i) earnings allocated to participating share awards of $12 million, $11 million, $13 million, $11 million, $16 million, $13 million, $12 million and $13 million in Q4'19, Q3'19, Q2'19, Q1'19, Q4'18, Q3'18, Q2'18 and Q1'18 respectively; and (ii) dividends on preferred shares of $20 million, $21 million, $19 million, $21 million, $19 million, $20 million, $20 million and $21 million in Q4'19, Q3'19, Q2'19, Q1'19, Q4'18, Q3'18, Q2'18 and Q1'18, respectively.

7