<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>file003.txt
<DESCRIPTION>ADDITIONAL FINANCIAL INFORMATION
<TEXT>
<PAGE>
EXHIBIT 99.2
All information in the following tables is presented on a basis prepared in
accordance with accounting principles generally accepted in the United States
(GAAP), unless otherwise indicated.
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended Six Months Ended
June 30, June 30,
------------------------ Percentage ------------------------ Percentage
2003 2002 Inc/(Dec) 2003 2002 Inc/(Dec)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Revenues
Discount revenue $ 2,152 $ 1,997 7.7 % $ 4,128 $ 3,842 7.4 %
Interest and dividends, net 780 658 18.6 1,547 1,416 9.3
Securitization income 630 540 16.8 1,116 923 21.0
Management and distribution fees 569 609 (6.5) 1,089 1,206 (9.7)
Net card fees 455 429 6.0 906 852 6.3
Cardmember lending net finance charge revenue 397 366 8.6 855 771 11.0
Travel commissions and fees 373 369 1.0 713 697 2.2
Other revenues 1,000 977 2.3 2,025 1,997 1.4
---------- ---------- ---------- ----------
Total revenues 6,356 5,945 6.9 12,379 11,704 5.8
Expenses
Human resources 1,576 1,454 8.4 3,066 2,932 4.6
Provision for losses and benefits 1,075 1,104 (2.8) 2,185 2,263 (3.5)
Marketing and promotion 443 386 14.5 807 748 7.8
Interest 231 277 (16.6) 461 548 (15.8)
Other operating expenses 1,934 1,776 9.0 3,767 3,420 10.2
Restructuring charges - (6) - - (19) -
Disaster recovery charge - (7) - - (7) -
---------- ---------- ---------- ----------
Total expenses 5,259 4,984 5.5 10,286 9,885 4.0
---------- ---------- ---------- ----------
Pretax income 1,097 961 14.3 2,093 1,819 15.1
Income tax provision 335 278 21.0 639 518 23.5
---------- ---------- ---------- ----------
Net income $ 762 $ 683 11.5% $ 1,454 $ 1,301 11.7 %
========== ========== ========== ==========
</Table>
1
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<Table>
<Caption>
(Billions)
June 30, December 31,
2003 2002
------------ ------------
<S> <C> <C>
Assets
Cash and cash equivalents $ 7 $ 10
Accounts receivable 29 29
Investments 56 54
Loans 28 28
Separate account assets 24 22
Other assets 15 14
------------ ------------
Total assets $ 159 $ 157
============ ============
Liabilities and Shareholders' Equity
Separate account liabilities $ 24 $ 22
Short-term debt 17 21
Long-term debt 18 16
Other liabilities 86 84
------------ ------------
Total liabilities 145 143
------------ ------------
Shareholders' Equity 14 14
------------ ------------
Total liabilities and shareholders' equity $ 159 $ 157
============ ============
</Table>
Note: Certain prior period amounts have been restated to conform to current
year presentation.
2
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended Six Months Ended
June 30, June 30,
------------------------ Percentage ------------------------ Percentage
2003 2002 Inc/(Dec) 2003 2002 Inc/(Dec)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES (A)
Travel Related Services $ 4,734 $ 4,462 6 % $ 9,220 $ 8,661 6 %
American Express Financial Advisors 1,496 1,351 11 2,907 2,785 4
American Express Bank 200 180 11 397 358 11
---------- ---------- ---------- ----------
6,430 5,993 7 12,524 11,804 6
Corporate and other,
including adjustments and eliminations (74) (48) (52) (145) (100) (45)
---------- ---------- ---------- ----------
CONSOLIDATED REVENUES $ 6,356 $ 5,945 7 % $ 12,379 $ 11,704 6 %
========== ========== ========== ==========
PRETAX INCOME (LOSS)
Travel Related Services $ 937 $ 822 14 % $ 1,795 $ 1,488 21 %
American Express Financial Advisors 209 202 4 387 454 (15)
American Express Bank 39 27 43 68 47 46
---------- ---------- ---------- ----------
1,185 1,051 13 2,250 1,989 13
Corporate and other (88) (90) 3 (157) (170) 7
---------- ---------- ---------- ----------
PRETAX INCOME $ 1,097 $ 961 14 % $ 2,093 $ 1,819 15 %
========== ========== ========== ==========
NET INCOME (LOSS)
Travel Related Services $ 634 $ 565 12 % $ 1,218 $ 1,032 18 %
American Express Financial Advisors 157 145 8 290 327 (11)
American Express Bank 27 18 45 46 31 49
---------- ---------- ---------- ----------
818 728 12 1,554 1,390 12
Corporate and other (56) (45) (21) (100) (89) (12)
---------- ---------- ---------- ----------
NET INCOME $ 762 $ 683 11 % $ 1,454 $ 1,301 12 %
========== ========== ========== ==========
</Table>
(A) Managed net revenues are reported net of American Express Financial
Advisors' provision for losses and benefits and exclude the effect of
TRS' securitization activities. The following table reconciles
consolidated GAAP revenues to Managed Basis net revenues:
<Table>
<S> <C> <C> <C> <C> <C> <C>
GAAP revenues $ 6,356 $ 5,945 7 % $ 12,379 $ 11,704 6 %
Effect of TRS securitizations 216 193 480 446
Effect of AEFA provisions (526) (458) (1,032) (928)
---------- ---------- ---------- ----------
Managed net revenues $ 6,046 $ 5,680 6 % $ 11,827 $ 11,222 5 %
========== ========== ========== ==========
</Table>
3
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
(Unaudited)
<Table>
<Caption>
Quarters Ended Six Months Ended
June 30, June 30,
------------------------ Percentage ------------------------ Percentage
2003 2002 Inc/(Dec) 2003 2002 Inc/(Dec)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS PER SHARE
BASIC
Earnings per common share $ 0.59 $ 0.52 13 % $ 1.13 $ 0.98 15 %
========== ========== ========== ==========
Average common shares outstanding (millions) 1,283 1,325 (3) % 1,290 1,325 (3) %
========== ========== ========== ==========
DILUTED
Earnings per common share $ 0.59 $ 0.51 16 % $ 1.12 $ 0.97 15 %
========== ========== ========== ==========
Average common shares outstanding (millions) 1,295 1,341 (3) % 1,300 1,338 (3) %
========== ========== ========== ==========
Cash dividends declared per common share $ 0.10 $ 0.08 25 % $ 0.18 $ 0.16 13 %
========== ========== ========== ==========
</Table>
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
Quarters Ended Six Months Ended
June 30, June 30,
------------------------ Percentage ------------------------ Percentage
2003 2002 Inc/(Dec) 2003 2002 Inc/(Dec)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Return on average total shareholders' equity (A) 20.1% 15.2% - 20.1% 15.2% -
Common shares outstanding (millions) 1,286 1,332 (3) % 1,286 1,332 (3) %
Book value per common share $ 11.27 $ 9.98 13 % $ 11.27 $ 9.98 13 %
Shareholders' equity (billions) $ 14.5 $ 13.3 9 % $ 14.5 $ 13.3 9 %
</Table>
(A) Computed on a trailing 12-month basis using total shareholders' equity as
reported in the Consolidated Financial Statements prepared in accordance
with GAAP. All return on average total shareholders' equity and return
on average total asset calculations in this and following tables are
revised from amounts previously reported. Previously, these calculations
excluded the effect on shareholders' equity and total assets of
Statement of Financial Accounting Standards (SFAS) No. 115,
"Accounting for Certain Investments in Debt and Equity Securities"
and SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activities."
4
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Revenues
Discount revenue $ 2,152 $ 1,976 $ 2,122 $ 1,967 $ 1,997
Interest and dividends, net 780 767 816 759 658
Securitization income 630 486 518 500 540
Management and distribution fees 569 520 528 551 609
Net card fees 455 451 435 439 429
Cardmember lending net finance charge revenue 397 458 382 332 366
Travel commissions and fees 373 340 369 342 369
Other revenues 1,000 1,025 1,026 1,017 977
---------- ----------- ------------- ------------- -----------
Total revenues 6,356 6,023 6,196 5,907 5,945
Expenses
Human resources 1,576 1,490 1,379 1,414 1,454
Provision for losses and benefits 1,075 1,110 1,250 1,073 1,104
Marketing and promotion 443 364 397 403 386
Interest 231 230 270 264 277
Other operating expenses 1,934 1,833 1,937 1,796 1,776
Restructuring charges - - 14 (2) (6)
Disaster recovery charge - - - - (7)
---------- ----------- ------------- ------------- -----------
Total expenses 5,259 5,027 5,247 4,948 4,984
---------- ----------- ------------- ------------- -----------
Pretax income 1,097 996 949 959 961
Income tax provision 335 304 266 272 278
---------- ----------- ------------- ------------- -----------
Net income $ 762 $ 692 $ 683 $ 687 $ 683
========== =========== ============= ============= ===========
</Table>
5
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
REVENUES (A)
Travel Related Services $ 4,734 $ 4,486 $ 4,665 $ 4,395 $ 4,462
American Express Financial Advisors 1,496 1,411 1,444 1,388 1,351
American Express Bank 200 197 188 199 180
---------- ----------- ------------- ------------- -----------
6,430 6,094 6,297 5,982 5,993
Corporate and other,
including adjustments and eliminations (74) (71) (101) (75) (48)
---------- ----------- ------------- ------------- -----------
CONSOLIDATED REVENUES $ 6,356 $ 6,023 $ 6,196 $ 5,907 $ 5,945
========== =========== ============= ============= ===========
PRETAX INCOME (LOSS)
Travel Related Services $ 937 $ 858 $ 794 $ 798 $ 822
American Express Financial Advisors 209 178 206 205 202
American Express Bank 39 29 36 38 27
---------- ----------- ------------- ------------- -----------
1,185 1,065 1,036 1,041 1,051
Corporate and other (88) (69) (87) (82) (90)
---------- ----------- ------------- ------------- -----------
PRETAX INCOME $ 1,097 $ 996 $ 949 $ 959 $ 961
========== =========== ============= ============= ===========
NET INCOME (LOSS)
Travel Related Services $ 634 $ 584 $ 550 $ 553 $ 565
American Express Financial Advisors 157 133 153 152 145
American Express Bank 27 19 24 25 18
---------- ----------- ------------- ------------- -----------
818 736 727 730 728
Corporate and other (56) (44) (44) (43) (45)
---------- ----------- ------------- ------------- -----------
NET INCOME $ 762 $ 692 $ 683 $ 687 $ 683
========== =========== ============= ============= ===========
(A) Managed net revenues are reported net of American Express Financial
Advisors' provision for losses and benefits and exclude the effect of
TRS' securitization activities. The following table reconciles
consolidated GAAP revenues to Managed Basis net revenues:
GAAP revenues $ 6,356 $ 6,023 $ 6,196 $ 5,907 $ 5,945
Effect of TRS securitizations 216 264 224 278 193
Effect of AEFA provisions (526) (506) (539) (487) (458)
---------- ----------- ------------- ------------- -----------
Managed net revenues $ 6,046 $ 5,781 $ 5,881 $ 5,698 $ 5,680
========== =========== ============= ============= ===========
</Table>
6
<Page>
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
(Unaudited)
<Table>
<Caption>
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
EARNINGS PER SHARE
BASIC
Earnings per common share $ 0.59 $ 0.53 $ 0.52 $ 0.52 $ 0.52
========== =========== ============= ============= ===========
Average common shares outstanding (millions) 1,283 1,297 1,309 1,323 1,325
========== =========== ============= ============= ===========
DILUTED
Earnings per common share $ 0.59 $ 0.53 $ 0.52 $ 0.52 $ 0.51
========== =========== ============= ============= ===========
Average common shares outstanding (millions) 1,295 1,305 1,317 1,330 1,341
========== =========== ============= ============= ===========
Cash dividends declared per common share $ 0.10 $ 0.08 $ 0.08 $ 0.08 $ 0.08
========== =========== ============= ============= ===========
</Table>
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Return on average total shareholders' equity (A) 20.1% 20.0% 20.2% 17.8% 15.2%
Common shares outstanding (millions) 1,286 1,298 1,305 1,325 1,332
Book value per common share $ 11.27 $ 10.84 $ 10.63 $ 10.55 $ 9.98
Shareholders' equity (billions) $ 14.5 $ 14.1 $ 13.9 $ 14.0 $ 13.3
</Table>
(A) Computed on a trailing 12-month basis using total shareholders' equity as
reported in the Consolidated Financial Statements prepared in accordance
with GAAP.
7
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended
June 30,
------------------------ Percentage
2003 2002 Inc/(Dec)
---------- ---------- ----------
<S> <C> <C> <C>
Net revenues:
Discount revenue $ 2,152 $ 1,997 7.7 %
Net card fees 455 429 6.0
Lending:
Finance charge revenue 512 493 4.1
Interest expense 115 127 (9.2)
--------- ---------
Net finance charge revenue 397 366 8.6
Travel commissions and fees 373 369 1.0
Travelers Cheque investment income 92 95 (2.2)
Securitization income 630 540 16.8
Other revenues 635 666 (4.7)
--------- ---------
Total net revenues 4,734 4,462 6.1
--------- ---------
Expenses:
Marketing and promotion 417 365 14.5
Provision for losses and claims:
Charge card 205 280 (27.0)
Lending 278 290 (4.4)
Other 37 37 1.1
--------- ---------
Total 520 607 (14.5)
Charge card interest expense 204 256 (20.1)
Human resources 965 879 9.8
Other operating expenses 1,691 1,539 9.9
Restructuring charges - (6) -
--------- ---------
Total expenses 3,797 3,640 4.3
--------- ---------
Pretax income 937 822 14.0
Income tax provision 303 257 18.2
--------- ---------
Net income $ 634 $ 565 12.1 %
========= =========
</Table>
8
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED FINANCIAL INFORMATION
(Unaudited)
<Table>
<Caption>
Quarters Ended June 30,
(Millions) Securitization
GAAP Basis Effect Managed Basis
--------------------- Percentage ------------------- ------------------- Percentage
2003 2002 Inc/(Dec) 2003 2002 2003 2002 Inc/(Dec)
--------- --------- ---------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net revenues:
Discount revenue $ 2,152 $ 1,997 7.7 %
Net card fees 455 429 6.0
Lending:
Finance charge revenue 512 493 4.1 $ 652 $ 623 $ 1,164 $ 1,116 4.3 %
Interest expense 115 127 (9.2) 50 73 165 200 (17.7)
--------- --------- -------- -------- -------- --------
Net finance charge revenue 397 366 8.6 602 550 999 916 9.1
Travel commissions and fees 373 369 1.0
Travelers Cheque investment income 92 95 (2.2)
Securitization income 630 540 16.8 (630) (540) - - -
Other revenues 635 666 (4.7) 244 183 879 849 3.6
--------- --------- -------- -------- -------- --------
Total net revenues 4,734 4,462 6.1 216 193 4,950 4,655 6.3
--------- --------- -------- -------- -------- --------
Expenses:
Marketing and promotion 417 365 14.5 (48) (51) 369 314 17.6
Provision for losses and claims:
Charge card 205 280 (27.0)
Lending 278 290 (4.4) 297 282 575 572 0.4
Other 37 37 1.1
--------- --------- -------- -------- -------- --------
Total 520 607 (14.5) 297 282 817 889 (8.2)
Charge card interest expense 204 256 (20.1) - (4) 204 252 (19.0)
Human resources 965 879 9.8
Other operating expenses 1,691 1,539 9.9 (33) (34) 1,658 1,505 10.2
Restructuring charges - (6) -
--------- --------- -------- -------- -------- --------
Total expenses 3,797 3,640 4.3 $ 216 $ 193 $ 4,013 $ 3,833 4.7
--------- --------- -------- -------- -------- --------
Pretax income 937 822 14.0
Income tax provision 303 257 18.2
--------- ---------
Net income $ 634 $ 565 12.1 %
========= =========
</Table>
Securitization income represents revenue associated with retained and
subordinated interests in securitized loans, servicing income from loans
sold and gains recorded at the time of securitization, excluding related
discounts netted in other revenues. Management views the gains from
securitizations as discretionary benefits to be used for card
acquisition expenses, which are reflected in marketing and promotion
expense and other operating expenses. Consequently, the above managed
Selected Financial Information for the quarters ended June 30, 2003
and 2002 assume that gains of $81 million and $85 million, respectively, from
lending securitizations were offset by higher marketing and promotion expense
of $48 million and $51 million, respectively, and other operating expense of
$33 million and $34 million, respectively. Accordingly, the incremental
expenses, as well as the gains, have been eliminated.
9
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED FINANCIAL INFORMATION
(Unaudited)
<Table>
<Caption>
Quarters Ended
(Millions) GAAP Basis Securitization Effect Managed Basis
----------------------------- ------------------------------ ------------------------------
March December September March December September March December September
31, 31, 30, 31, 31, 30, 31, 31, 30,
2003 2002 2002 2003 2002 2002 2003 2002 2002
------- -------- --------- ------- -------- --------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net revenues:
Discount revenue $1,976 $ 2,122 $ 1,967
Net card fees 451 435 439
Lending:
Finance charge revenue 587 514 456 $ 583 $ 641 $ 678 $ 1,170 $ 1,155 $ 1,134
Interest expense 129 132 124 64 89 98 193 221 222
------ -------- --------- ------- -------- --------- ------ -------- ---------
Net finance charge revenue 458 382 332 519 552 580 977 934 912
Travel commissions and fees 340 369 342
Travelers Cheque investment income 92 94 96
Securitization income 486 518 500 (486) (518) (500) - - -
Other revenues 683 745 719 231 190 198 914 935 917
------ -------- --------- ------- -------- -------- ------ -------- ---------
Total net revenues 4,486 4,665 4,395 264 224 278 4,750 4,889 4,673
------ -------- --------- ------- -------- -------- ------ -------- ---------
Expenses:
Marketing and promotion 350 371 394 (26) - (5) 324 371 389
Provision for losses and claims:
Charge card 208 237 191
Lending 331 414 319 307 227 291 638 641 610
Other 31 26 38
------ -------- --------- ------- -------- -------- ------ -------- ---------
Total 570 677 548 307 227 291 877 904 839
Charge card interest expense 209 252 249 - (3) (4) 209 249 245
Human resources 916 852 871
Other operating expenses 1,583 1,704 1,535 (17) - (4) 1,566 1,704 1,531
Restructuring charges - 15 -
------ -------- --------- ------- -------- -------- ------- -------- ---------
Total expenses 3,628 3,871 3,597 $ 264 $ 224 $ 278 $ 3,892 $ 4,095 $ 3,875
------ -------- --------- ------- -------- -------- ------- -------- ---------
Pretax income 858 794 798
Income tax provision 274 244 245
------ -------- ---------
Net income $ 584 $ 550 $ 553
====== ======== =========
</Table>
Securitization income represents revenue associated with retained and
subordinated interests in securitized loans, servicing income from loans
sold and gains recorded at the time of securitization, excluding related
discounts netted in other revenues. Management views the gains from
securitizations as discretionary benefits to be used for card
acquisition expenses, which are reflected in marketing and promotion
expense and other operating expenses. Consequently, the above
managed Selected Financial Information for the quarters ended March 31, 2003
and September 30, 2002 assume that gains of $43 million and $9 million,
respectively, from lending securitizations were offset by higher marketing
and promotion expense of $26 million and $5 million, respectively, and other
operating expense of $17 million and $4 million, respectively. Accordingly,
the incremental expenses, as well as the gains, have been eliminated.
10
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
(Billions, except percentages and where indicated)
Quarters Ended
June 30,
---------------------------- Percentage
2003 2002 Inc/(Dec)
-------- -------- ----------
<S> <C> <C> <C>
Total cards-in-force (millions):
United States 35.7 34.8 2.8 %
Outside the United States (A) 22.9 21.1 8.2
-------- --------
Total 58.6 55.9 4.8 %
======== ========
Basic cards-in-force (millions):
United States 27.3 26.7 2.1 %
Outside the United States (A) 18.9 16.1 8.2 (A)
-------- --------
Total 46.2 42.8 4.5 % (A)
======== ========
Card billed business
United States $ 64.6 $ 58.7 9.9 %
Outside the United States 21.5 19.4 10.9
-------- --------
Total $ 86.1 $ 78.1 10.1 %
======== ========
Average discount rate (A) 2.59 % 2.65 % -
Average basic cardmember spending (dollars) (A) $ 2,054 $ 1,993 6.6 % (A)
Average fee per card (dollars) (A) $ 34 $ 34 -
Non-Amex brand (B):
Cards-in-force (millions) 0.7 0.7 (0.4)
Billed business $ 1.0 $ 0.9 5.7
Travel sales $ 3.9 $ 4.3 (8.7)%
Travel commissions and fees/sales (C) 9.6 % 8.7 % -
Travelers Cheque:
Sales $ 4.4 $ 5.8 (23.2)%
Average outstanding $ 6.4 $ 6.4 0.2 %
Average investments $ 6.9 $ 6.7 2.4 %
Tax equivalent yield 8.4 % 8.8 % -
Total debt $ 34.2 $ 34.1 0.2 %
Shareholder's equity $ 7.8 $ 6.8 13.9 %
Return on average total shareholder's equity (D) 31.5 % 21.2 % -
Return on average total assets (E) 3.4 % 2.1 % -
</Table>
(A) Cards-in-force include proprietary cards and cards issued under network
partnership agreements outside the U.S. Average discount rate, average
basic cardmember spending and average fee per card are computed from
proprietary card activities only. At September 30, 2002, 1.5 million of
Canadian lending cards were transferred to basic (though these types of
cards were available under a supplemental card program) as the specific
cards were issued under a stand-alone offer. The impact of this transfer
on the quarter ended June 30, 2002 would have been to increase basic
cards-in-force outside the U.S. to 17.4 million and decrease average
basic cardmember spending to $1,926. Percentages of increase are
calculated assuming the transfer had occurred at the time the cards were
issued.
(B) This data relates to Visa and Eurocards issued in connection with joint
venture activities.
(C) Computed from information provided herein.
(D) Computed on a trailing 12-month basis using total shareholder's equity
as reported in the Consolidated Financial Statements prepared in
accordance with GAAP.
(E) Computed on a trailing 12-month basis using total assets as reported in
the Consolidated Financial Statements prepared in accordance with GAAP.
11
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED STATISTICAL INFORMATION (CONTINUED)
(Unaudited)
<Table>
<Caption>
(Billions, except percentages and where indicated)
Quarters Ended
June 30,
------------------------------------ Percentage
2003 2002 Inc/(Dec)
--------- --------- ---------
<S> <C> <C> <C>
Charge card receivables:
Total receivables $ 26.0 $ 24.6 5.7 %
90 days past due as a % of total 2.1 % 2.6 % -
Loss reserves (millions) $ 943 $ 1,039 (9.3)%
% of receivables 3.6 % 4.2 % -
% of 90 days past due 171 % 164 % -
Net loss ratio 0.29 % 0.40 % -
U.S. Lending (Owned Basis):
Total loans $ 16.5 $ 14.1 16.8 %
Past due loans as a % of total:
30-89 days 1.7 % 1.9 % -
90+ days 1.1 % 1.2 % -
Loss reserves (millions):
Beginning balance $ 790 $ 676 16.9 %
Provision 165 176 (6.8)
Net charge-offs/other (182) (225) (19.2)
--------- ---------
Ending balance $ 773 $ 627 23.2 %
========= =========
% of loans 4.7 % 4.4 % -
% of past due 169 % 140 % -
Average loans $ 16.1 $ 14.7 9.6 %
Net write-off rate 4.9 % 6.3 % -
U.S. Lending - Managed Basis:
Total loans $ 36.0 $ 31.6 14.0 %
Past due loans as a % of total:
30-89 days 1.7 % 1.9 % -
90+ days 1.0 % 1.2 % -
Loss reserves (millions):
Beginning balance $ 1,347 $ 1,144 17.7 %
Provision 461 458 0.7
Net charge-offs/other (458) (481) (4.7)
--------- ---------
Ending balance $ 1,350 $ 1,121 20.4 %
========= =========
% of loans 3.7 % 3.5 % -
% of past due 136 % 115 % -
Average loans $ 35.3 $ 31.8 11.2 %
Net write-off rate 5.4 % 6.2 % -
Net interest yield 8.9 % 9.8 % -
</Table>
12
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
(Millions) Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Net revenues:
Discount revenue $ 2,152 $ 1,976 $ 2,122 $ 1,967 $ 1,997
Net card fees 455 451 435 439 429
Lending:
Finance charge revenue 512 587 514 456 493
Interest expense 115 129 132 124 127
---------- ----------- ------------- ------------- -----------
Net finance charge revenue 397 458 382 332 366
Travel commissions and fees 373 340 369 342 369
Travelers Cheque investment income 92 92 94 96 95
Securitization income 630 486 518 500 540
Other revenues 635 683 745 719 666
---------- ----------- ------------- ------------- -----------
Total net revenues 4,734 4,486 4,665 4,395 4,462
---------- ----------- ------------- ------------- -----------
Expenses:
Marketing and promotion 417 350 371 394 365
Provision for losses and claims:
Charge card 205 208 237 191 280
Lending 278 331 414 319 290
Other 37 31 26 38 37
---------- ----------- ------------- ------------- -----------
Total 520 570 677 548 607
Charge card interest expense 204 209 252 249 256
Human resources 965 916 852 871 879
Other operating expenses 1,691 1,583 1,704 1,535 1,539
Restructuring charges - - 15 - (6)
---------- ----------- ------------- ------------- -----------
Total expenses 3,797 3,628 3,871 3,597 3,640
---------- ----------- ------------- ------------- -----------
Pretax income 937 858 794 798 822
Income tax provision 303 274 244 245 257
---------- ----------- ------------- ------------- -----------
Net income $ 634 $ 584 $ 550 $ 553 $ 565
========== =========== ============= ============= ===========
</Table>
13
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED MANAGED BASIS INFORMATION
(Unaudited)
<Table>
<Caption>
(Millions) Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Lending finance charge revenue $ 1,164 $ 1,170 $ 1,155 $ 1,134 $ 1,116
Lending interest expense 165 193 221 222 200
Other revenues 879 914 935 917 849
Marketing and promotion 369 324 371 389 314
Lending provision 575 638 641 610 572
Charge card interest expense 204 209 249 245 252
Other operating expenses 1,658 1,566 1,704 1,531 1,505
</Table>
14
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
(Billions, except percentages and where indicated)
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Total cards-in-force (millions):
United States 35.7 35.4 35.1 34.8 34.8
Outside the United States (A) 22.9 22.4 22.2 21.6 21.1
---------- ----------- ------------- ------------- -----------
Total 58.6 57.8 57.3 56.4 55.9
========== =========== ============= ============= ===========
Basic cards-in-force (millions):
United States 27.3 27.1 26.9 26.7 26.7
Outside the United States (A) 18.9 18.5 18.3 17.8 16.1
---------- ----------- ------------- ------------- -----------
Total 46.2 45.6 45.2 44.5 42.8
========== =========== ============= ============= ===========
Card billed business
United States $ 64.6 $ 58.9 $ 62.9 $ 58.2 $ 58.7
Outside the United States 21.5 19.9 21.2 19.4 19.4
---------- ----------- ------------- ------------- -----------
Total $ 86.1 $ 78.8 $ 84.1 $ 77.6 $ 78.1
========== =========== ============= ============= ===========
Average discount rate (A) 2.59 % 2.60 % 2.62 % 2.63 % 2.65 %
Average basic cardmember spending (dollars) (A) $ 2,054 $ 1,894 $ 2,050 $ 1,906 $ 1,993
Average fee per card - managed (dollars) (A) $ 34 $ 35 $ 34 $ 34 $ 34
Non-Amex brand (B):
Cards-in-force (millions) 0.7 0.7 0.7 0.7 0.7
Billed business $ 1.0 $ 0.9 $ 1.0 $ 0.9 $ 0.9
Travel sales $ 3.9 $ 3.7 $ 3.8 $ 3.7 $ 4.3
Travel commissions and fees/sales (C) 9.6 % 9.3 % 9.6 % 9.3 % 8.7 %
Travelers Cheque:
Sales $ 4.4 $ 4.1 $ 4.8 $ 6.9 $ 5.8
Average outstanding $ 6.4 $ 6.5 $ 6.5 $ 7.0 $ 6.4
Average investments $ 6.9 $ 6.9 $ 6.8 $ 7.3 $ 6.7
Tax equivalent yield 8.4 % 8.6 % 8.7 % 8.4 % 8.8 %
Total debt $ 34.2 $ 34.1 $ 36.4 $ 33.2 $ 34.1
Shareholder's equity $ 7.8 $ 7.5 $ 7.3 $ 7.4 $ 6.8
Return on average total shareholder's equity (D) 31.5 % 31.3 % 30.3 % 25.4 % 21.2 %
Return on average total assets (E) 3.4 % 3.3 % 3.2 % 2.6 % 2.1 %
</Table>
(A) Cards-in-force include proprietary cards and cards issued under network
partnership agreements outside the U.S. Average discount rate, average
basic cardmember spending and average fee per card are computed from
proprietary card activities only. At September 30, 2002, 1.5 million of
Canadian lending cards were transferred to basic (though these types of
cards were available under a supplemental card program) as the specific
cards were issued under a stand-alone offer. The impact of this transfer
on the quarter ended June 30, 2002 would have been to increase basic
cards-in-force outside the U.S. to 17.4 million and decrease average
basic cardmember spending to $1,926. Percentages of increase are
calculated assuming the transfer had occurred at the time the cards were
issued.
(B) This data relates to Visa and Eurocards issued in connection with joint
venture activities.
(C) Computed from information provided herein.
(D) Computed on a trailing 12-month basis using total shareholder's equity
as reported in the Consolidated Financial Statements prepared in
accordance with GAAP.
(E) Computed on a trailing 12-month basis using total assets as reported in
the Consolidated Financial Statements prepared in accordance with GAAP.
15
<Page>
(Preliminary)
TRAVEL RELATED SERVICES
SELECTED STATISTICAL INFORMATION (CONTINUED)
(Unaudited)
<Table>
<Caption>
(Billions, except percentages and where indicated)
Quarters Ended
------------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Charge card receivables:
Total receivables $ 26.0 $ 24.3 $ 26.3 $ 24.1 $ 24.6
90 days past due as a % of total 2.1 % 2.4 % 2.2 % 2.4 % 2.6 %
Loss reserves (millions) $ 943 $ 923 $ 930 $ 934 (A) $ 1,039
% of receivables 3.6 % 3.8 % 3.5 % 3.9 % 4.2 %
% of 90 days past due 171 % 159 % 162 % 161 % 164 %
Net loss ratio 0.29 % 0.28 % 0.32 % 0.40 % 0.40 %
U.S. Lending (Owned Basis):
Total loans $ 16.5 $ 16.5 $ 17.1 $ 14.9 $ 14.1
Past due loans as a % of total:
30-89 days 1.7 % 1.9 % 2.0 % 2.0 % 1.9 %
90+ days 1.1 % 1.2 % 1.3 % 1.2 % 1.2 %
Loss reserves (millions):
Beginning balance $ 790 $ 798 $ 669 $ 627 $ 676
Provision 165 200 318 217 176
Net charge-offs/other (182) (208) (189) (175) (225)
---------- ----------- ------------- ------------- -----------
Ending balance $ 773 $ 790 $ 798 $ 669 $ 627
========== =========== ============= ============= ===========
% of loans 4.7 % 4.8 % 4.7 % 4.5 % 4.4 %
% of past due 169 % 155 % 143 % 139 % 140 %
Average loans $ 16.1 $ 16.6 $ 15.7 $ 14.2 $ 14.7
Net write-off rate 4.9 % 5.4 % 5.2 % 5.5 % 6.3 %
U.S. Lending - Managed Basis:
Total loans $ 36.0 $ 34.6 $ 34.3 $ 32.2 $ 31.6
Past due loans as a % of total:
30-89 days 1.7 % 1.9 % 1.9 % 2.0 % 1.9 %
90+ days 1.0 % 1.2 % 1.2 % 1.2 % 1.2 %
Loss reserves (millions):
Beginning balance $ 1,347 $ 1,297 $ 1,193 $ 1,121 $ 1,144
Provision 461 507 547 507 458
Net charge-offs/other (458) (457) (443) (435) (A) (481)
---------- ----------- ------------- ------------- -----------
Ending balance $ 1,350 $ 1,347 $ 1,297 $ 1,193 (A) $ 1,121
========== =========== ============= ============= ===========
% of loans 3.7 % 3.9 % 3.8 % 3.7 % 3.5 %
% of past due 136 % 127 % 120 % 118 %(A) 115 %
Average loans $ 35.3 $ 34.2 $ 32.9 $ 32.2 $ 31.8
Net write-off rate 5.4 % 5.5 % 5.5 % 5.7 %(A) 6.2 %
Net interest yield 8.9 % 9.4 % 9.8 % 9.7 % 9.8 %
</Table>
(A) Revised as per the 8-K filed with the SEC on December 16, 2002.
16
<Page>
(Preliminary)
AMERICAN EXPRESS FINANCIAL ADVISORS
STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended
June 30,
---------------------------- Percentage
2003 2002 Inc/(Dec)
------------ ------------ ----------
<S> <C> <C> <C>
Revenues:
Investment income $ 571 $ 435 31.3 %
Management and distribution fees 571 609 (6.1)
Other revenues 354 307 14.8
------------ ------------
Total revenues 1,496 1,351 10.7
------------ ------------
Expenses:
Provision for losses and benefits:
Annuities 280 245 14.3
Insurance 187 181 3.7
Investment certificates 59 32 83.1
------------ ------------
Total 526 458 14.9
Human resources 508 493 2.9
Other operating expenses 253 205 23.2
Disaster recovery charge - (7) -
------------ ------------
Total expenses 1,287 1,149 11.9
------------ ------------
Pretax income 209 202 3.7
Income tax provision 52 57 (6.7)
------------ ------------
Net income $ 157 $ 145 7.7 %
============ ============
</Table>
17
<Page>
(Preliminary)
AMERICAN EXPRESS FINANCIAL ADVISORS
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
(Millions, except where indicated)
Quarters Ended
June 30,
---------------------------- Percentage
2003 2002 Inc/(Dec)
------------ ------------ ----------
<S> <C> <C> <C>
Investments (billions) (A) $ 42.4 $ 33.9 25.1 %
Client contract reserves (billions) $ 40.2 $ 34.0 18.4 %
Shareholder's equity (billions) $ 6.7 $ 5.7 16.6 %
Return on average total shareholder's equity (B) 9.6 % 11.6 % -
Life insurance inforce (billions) $ 124.4 $ 114.2 8.9 %
Assets owned, managed or
administered (billions):
Assets managed for institutions $ 43.8 $ 46.5 (6.0)%
Assets owned, managed or administered
for individuals:
Owned assets:
Separate account assets 24.1 24.6 (2.1)
Other owned assets 52.2 44.4 17.7
------------ ------------
Total owned assets 76.3 69.0 10.6
Managed assets 87.3 89.7 (2.6)
Administered assets 37.4 32.9 13.8
------------ ------------
Total $ 244.8 $ 238.1 2.8 %
============ ============
Market appreciation (depreciation) during
the period:
Owned assets:
Separate account assets $ 2,620 $ (2,675) #
Other owned assets $ 399 $ 516 (22.7)%
Managed assets $ 9,457 $ (9,123) #
Cash sales:
Mutual funds $ 7,150 $ 8,940 (20.0)%
Annuities 2,581 2,054 25.7
Investment certificates 1,607 1,186 35.5
Life and other insurance products 188 175 7.8
Institutional 722 376 92.3
Other 1,531 1,504 1.7
------------ ------------
Total cash sales $ 13,779 $ 14,235 (3.2)%
============ ============
Number of financial advisors 11,667 11,360 2.7 %
Fees from financial plans and advice services $ 33.5 $ 30.0 11.5 %
Percentage of total sales from financial plans
and advice services 74.0 % 72.7 % -
</Table>
# - Denotes a variance of more than 100%.
(A) Excludes cash, derivatives, short-term and other investments.
(B) Computed on a trailing 12-month basis using total shareholder's equity
as reported in the Consolidated Financial Statements prepared in
accordance with GAAP.
18
<Page>
(Preliminary)
AMERICAN EXPRESS FINANCIAL ADVISORS
STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Revenues:
Investment income $ 571 $ 558 $ 577 $ 517 $ 435
Management and distribution fees 571 522 535 551 609
Other revenues 354 331 332 320 307
---------- ----------- ------------- ------------- -----------
Total revenues 1,496 1,411 1,444 1,388 1,351
---------- ----------- ------------- ------------- -----------
Expenses:
Provision for losses and benefits:
Annuities 280 273 283 259 245
Insurance 187 192 203 182 181
Investment certificates 59 41 53 46 32
---------- ----------- ------------- ------------- -----------
Total 526 506 539 487 458
Human resources 508 479 449 457 493
Other operating expenses 253 248 250 239 205
Disaster recovery charge - - - - (7)
---------- ----------- ------------- ------------- -----------
Total expenses 1,287 1,233 1,238 1,183 1,149
---------- ----------- ------------- ------------- -----------
Pretax income 209 178 206 205 202
Income tax provision 52 45 53 53 57
---------- ----------- ------------- ------------- -----------
Net income $ 157 $ 133 $ 153 $ 152 $ 145
========== =========== ============= ============= ===========
</Table>
19
<Page>
(Preliminary)
AMERICAN EXPRESS FINANCIAL ADVISORS
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Investments (billions) (A) $ 42.4 $ 40.3 $ 38.2 $ 35.8 $ 33.9
Client contract reserves (billions) $ 40.2 $ 38.6 $ 37.3 $ 36.1 $ 34.0
Shareholder's equity (billions) $ 6.7 $ 6.3 $ 6.3 $ 6.2 $ 5.7
Return on average total shareholder's equity (B) 9.6 % 9.8 % 10.9 % 11.3 % 11.6 %
Life insurance inforce (billions) $ 124.4 $ 121.4 $ 119.0 $ 116.3 $ 114.2
Assets owned, managed or
administered (billions):
Assets managed for institutions $ 43.8 $ 41.4 $ 42.3 $ 43.3 $ 46.5
Assets owned, managed or administered
for individuals:
Owned assets:
Separate account assets 24.1 21.3 22.0 21.1 24.6
Other owned assets 52.2 51.5 51.7 47.8 44.4
---------- ----------- ------------- ------------- -----------
Total owned assets 76.3 72.8 73.7 68.9 69.0
Managed assets 87.3 79.9 81.6 79.4 89.7
Administered assets 37.4 34.0 33.0 29.9 32.9
---------- ----------- ------------- ------------- -----------
Total $ 244.8 $ 228.1 $ 230.6 $ 221.5 $ 238.1
========== =========== ============= ============= ===========
Market appreciation (depreciation) during
the period:
Owned assets:
Separate account assets $ 2,620 $ (471) $ 1,040 $ (3,143) $ (2,675)
Other owned assets $ 399 $ 20 $ 23 $ 637 $ 516
Managed assets $ 9,457 $ (1,145) $ 3,334 $ (11,013) $ (9,123)
Cash sales:
Mutual funds $ 7,150 $ 6,800 $ 6,563 $ 7,693 $ 8,940
Annuities 2,581 2,205 2,284 2,656 2,054
Investment certificates 1,607 1,067 959 1,299 1,186
Life and other insurance products 188 162 182 170 175
Institutional 722 1,036 756 781 376
Other 1,531 1,683 1,269 1,399 1,504
---------- ----------- ------------- ------------- -----------
Total cash sales $ 13,779 $ 12,953 $ 12,013 $ 13,998 $ 14,235
========== =========== ============= ============= ===========
Number of financial advisors 11,667 11,606 11,689 11,353 11,360
Fees from financial plans and advice services $ 33.5 $ 31.7 $ 26.8 $ 27.4 $ 30.0
Percentage of total sales from financial plans
and advice services 74.0 % 75.6 % 74.4 % 73.0 % 72.7 %
</Table>
(A) Excludes cash, derivatives, short-term and other investments.
(B) Computed on a trailing 12-month basis using total shareholder's equity
as reported in the Consolidated Financial Statements prepared in
accordance with GAAP.
20
<Page>
(Preliminary)
AMERICAN EXPRESS BANK
STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended
June 30,
------------------------ Percentage
2003 2002 Inc/(Dec)
---------- ---------- ----------
<S> <C> <C> <C>
Net revenues:
Interest income $ 148 $ 149 (0.7)%
Interest expense 57 60 (4.7)
---------- ----------
Net interest income 91 89 1.9
Commissions and fees 57 53 7.5
Foreign exchange income & other revenues 52 38 35.9
---------- ----------
Total net revenues 200 180 10.8
---------- ----------
Expenses:
Human resources 64 60 5.0
Other operating expenses 70 55 27.5
Provision for losses 27 38 (27.6)
---------- ----------
Total expenses 161 153 5.1
---------- ----------
Pretax income 39 27 43.4
Income tax provision 12 9 39.5
---------- ----------
Net income $ 27 $ 18 45.2 %
========== ==========
</Table>
21
<Page>
(Preliminary)
AMERICAN EXPRESS BANK
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
(Billions, except where indicated)
Quarters Ended
June 30,
------------------------ Percentage
2003 2002 Inc/(Dec)
---------- ---------- ----------
<S> <C> <C> <C>
Total shareholder's equity (millions) $ 955 $ 812 17.5 %
Return on average total common shareholder's equity (A) 11.4 % (0.4)% -
Return on average total assets (B) 0.75 % (0.02)% -
Total loans $ 5.8 $ 5.6 4.7 %
Total non-performing loans (millions) (C) $ 102 $ 121 (15.5)%
Other non-performing assets (millions) $ 16 $ 2 #
Reserve for credit losses (millions) (D) $ 151 $ 160 (5.6)%
Loan loss reserves as a % of total loans 2.4 % 2.8 % -
Total Personal Financial Services (PFS) loans $ 1.5 $ 1.8 (17.2)%
30+ days past due PFS loans as a % of total 5.5 % 4.6 % -
Deposits $ 10.1 $ 8.7 15.6 %
Assets managed (E) / administered $ 14.1 $ 12.4 14.3 %
Assets of non-consolidated joint
ventures $ 1.8 $ 1.9 (2.6)%
Risk-based capital ratios:
Tier 1 10.5 % 10.1 % -
Total 10.7 % 10.6 % -
Leverage ratio 5.5 % 5.2 % -
</Table>
# Denotes a variance of more than 100%.
(A) Computed on a trailing 12-month basis using total common
shareholder's equity as reported in the Consolidated Financial
Statements prepared in accordance with GAAP.
(B) Computed on a trailing 12-month basis using total assets as reported
in the Consolidated Financial Statements prepared in accordance with
GAAP.
(C) AEB defines non-performing loans as loans (other than certain
smaller-balance consumer loans) on which the accrual of interest is
discontinued because the contractual payment of principal or
interest has become 90 days past due or if, in management's opinion,
the borrower is unlikely to meet its contractual obligations. For
smaller-balance consumer loans, management establishes reserves it
believes to be adequate to absorb credit losses inherent in the
portfolio. Generally, these loans are written off in full when an
impairment is determined or when the loan becomes 120 or 180 days
past due, depending on loan type.
(D) Allocation (millions):
<Table>
<S> <C> <C>
Loans $ 142 $ 153
Other assets, primarily foreign exchange
and other derivatives 5 6
Unfunded contingents 4 1
---------- ----------
Total reserve for credit losses $ 151 $ 160
========== ==========
</Table>
(E) Includes assets managed by American Express Financial Advisors.
22
<Page>
(Preliminary)
AMERICAN EXPRESS BANK
STATEMENTS OF INCOME
(Unaudited)
<Table>
<Caption>
(Millions)
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Net revenues:
Interest income $ 148 $ 149 $ 156 $ 158 $ 149
Interest expense 57 60 65 63 60
---------- ----------- ------------- ------------- -----------
Net interest income 91 89 91 95 89
Commissions and fees 57 55 58 54 53
Foreign exchange income & other revenues 52 53 39 50 38
---------- ----------- ------------- ------------- -----------
Total net revenues 200 197 188 199 180
---------- ----------- ------------- ------------- -----------
Expenses:
Human resources 64 61 59 62 60
Other operating expenses 70 73 63 64 55
Provision for losses 27 34 31 37 38
Restructuring charges* - - (1) (2) -
---------- ----------- ------------- ------------- -----------
Total expenses 161 168 152 161 153
---------- ----------- ------------- ------------- -----------
Pretax income 39 29 36 38 27
Income tax provision 12 10 12 13 9
---------- ----------- ------------- ------------- -----------
Net income $ 27 $ 19 $ 24 $ 25 $ 18
========== =========== ============= ============= ===========
</Table>
* The fourth and third quarter 2002 restructuring charge amounts represent
reversals of 2001 charges of $2.5 million ($1.6 million after-tax) and $5.9
million ($3.8 million after-tax), respectively. These amounts were partially
offset by fourth and third quarter 2002 restructuring charges of $1.5
million ($0.7 million after-tax) and $3.9 million ($2.4 million after-tax),
respectively. The fourth quarter 2002 restructuring charge was comprised of
primarily severance costs. The third quarter 2002 restructuring charge was
comprised of $2.0 million pretax of severance costs and $1.9 million pretax
of other charges.
23
<Page>
(Preliminary)
AMERICAN EXPRESS BANK
SELECTED STATISTICAL INFORMATION
(Unaudited)
<Table>
<Caption>
(Billions, except where indicated)
Quarters Ended
----------------------------------------------------------------------
June 30, March 31, December 31, September 30, June 30,
2003 2003 2002 2002 2002
---------- ----------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Total shareholder's equity (millions) $ 955 $ 918 $ 947 $ 899 $ 812
Return on average total common shareholder's equity (A) 11.4 % 10.9 % 10.6 % 9.1 % (0.4)%
Return on average total assets (B) 0.75 % 0.71 % 0.66 % 0.55 % (0.02)%
Total loans $ 5.8 $ 5.7 $ 5.6 $ 5.5 $ 5.6
Total non-performing loans (millions) (C) $ 102 $ 106 $ 119 $ 120 $ 121
Other non-performing assets (millions) $ 16 $ 15 $ 15 $ 17 $ 2
Reserve for credit losses (millions) (D) $ 151 $ 155 $ 158 $ 166 $ 160
Loan loss reserves as a % of total loans 2.4 % 2.5 % 2.7 % 2.8 % 2.8 %
Total Personal Financial Services (PFS) loans $ 1.5 $ 1.5 $ 1.6 $ 1.6 $ 1.8
30+ days past due PFS loans as a % of total 5.5 % 5.0 % 5.4 % 4.9 % 4.6 %
Deposits $ 10.1 $ 9.5 $ 9.5 $ 8.6 $ 8.7
Assets managed (E) / administered $ 14.1 $ 13.1 $ 12.5 $ 12.2 $ 12.4
Assets of non-consolidated joint
ventures $ 1.8 $ 1.7 $ 1.8 $ 1.8 $ 1.9
Risk-based capital ratios:
Tier 1 10.5 % 10.8 % 10.9 % 10.2 % 10.1 %
Total 10.7 % 11.0 % 11.4 % 10.9 % 10.6 %
Leverage ratio 5.5 % 5.5 % 5.3 % 5.3 % 5.2 %
</Table>
(A) Computed on a trailing 12-month basis using total common
shareholder's equity as reported in the Consolidated Financial
Statements prepared in accordance with GAAP.
(B) Computed on a trailing 12-month basis using total assets as reported
in the Consolidated Financial Statements prepared in accordance with
GAAP.
(C) AEB defines non-performing loans as loans (other than certain
smaller-balance consumer loans) on which the accrual of interest is
discontinued because the contractual payment of principal or
interest has become 90 days past due or if, in management's opinion,
the borrower is unlikely to meet its contractual obligations. For
smaller-balance consumer loans, management establishes reserves it
believes to be adequate to absorb credit losses inherent in the
portfolio. Generally, these loans are written off in full when an
impairment is determined or when the loan becomes 120 or 180 days
past due, depending on loan type.
(D) Allocation (millions):
<Table>
<S> <C> <C> <C> <C> <C>
Loans $ 142 $ 145 $ 151 $ 156 $ 153
Other assets, primarily foreign exchange
and other derivatives 5 5 6 9 6
Unfunded contingents 4 5 1 1 1
---------- ----------- ------------- ------------- -----------
Total reserve for credit losses $ 151 $ 155 $ 158 $ 166 $ 160
========== =========== ============= ============= ===========
</Table>
(E) Includes assets managed by American Express Financial Advisors.
24
</TEXT>
</DOCUMENT>