ex99_2.htm

All information in the following tables is presented on a basis prepared in accordance with U.S. generally accepted accounting principles (GAAP),

unless otherwise indicated.

(Preliminary)

American Express Company

Consolidated Statements of Income

(Millions)

	Quarters Ended								Nine Months Ended
	September 30,					Percentage			September 30,					Percentage
	2010		2009			Inc/(Dec)			2010		2009			Inc/(Dec)

Revenues
Non-interest revenues
Discount revenue	$	3,818	$	3,373			13	%	$	11,018	$	9,744			13	%
Net card fees		527		538			(2	)		1,568		1,602			(2	)
Travel commissions and fees		487		383			27			1,307		1,155			13
Other commissions and fees		515		448			15			1,512		1,340			13
Securitization income, net (A)		N/A		71			-			N/A		210			-
Other		502		449			12			1,413		1,569			(10	)
Total non-interest revenues		5,849		5,262			11			16,818		15,620			8
Interest income
Interest and fees on loans		1,675		1,059			58			5,107		3,432			49
Interest and dividends on investment securities		103		229			(55	)		345		579			(40	)
Deposits with banks and other		16		9			78			45		48			(6	)
Total interest income		1,794		1,297			38			5,497		4,059			35
Interest expense
Deposits		141		109			29			406		299			36
Short-term borrowings		-		2			-			2		36			(94	)
Long-term debt and other		469		432			9			1,410		1,310			8
Total interest expense		610		543			12			1,818		1,645			11
Net interest income		1,184		754			57			3,679		2,414			52
Total revenues net of interest expense		7,033		6,016			17			20,497		18,034			14
Provisions for losses
Charge card		89		143			(38	)		412		716			(42	)
Cardmember loans		262		989			(74	)		1,490		3,706			(60	)
Other		22		46			(52	)		66		143			(54	)
Total provisions for losses		373		1,178			(68	)		1,968		4,565			(57	)
Total revenues net of interest expense after provisions for losses		6,660		4,838			38			18,529		13,469			38

Expenses
Marketing and promotion		847		504			68			2,244		1,201			87
Cardmember rewards		1,269		983			29			3,685		2,858			29
Cardmember services		135		132			2			406		374			9
Salaries and employee benefits		1,354		1,261			7			3,996		3,884			3
Professional services		701		575			22			1,898		1,693			12
Occupancy and equipment		371		374			(1	)		1,134		1,124			1
Communications		92		105			(12	)		284		315			(10	)
Other, net		251		(14	)		#			395		140			#
Total		5,020		3,920			28			14,042		11,589			21
Pretax income from continuing operations		1,640		918			79			4,487		1,880			#
Income tax provision		547		276			98			1,492		453			#
Income from continuing operations		1,093		642			70			2,995		1,427			#
Loss from discontinued operations, net of tax		-		(2	)		-			-		(13	)		-
Net income	$	1,093	$	640			71		$	2,995	$	1,414			#
Income from continuing operations attributable to common shareholders (B)	$	1,080	$	634			70		$	2,957	$	1,108			#
Net income attributable to common shareholders (B)	$	1,080	$	632			71		$	2,957	$	1,095			#

______________________

# - Denotes a variance of more than 100%.

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(B) Represents income from continuing operations or net income, as applicable, less (i) accelerated preferred dividend accretion of $212 million for the nine months ended September 30, 2009 due to the repurchase of $3.39 billion of preferred shares issued as part of the Capital Purchase Program (CPP), (ii) preferred shares dividends and related accretion of $94 million for the nine months ended September 30, 2009, and (iii) earnings allocated to participating share awards and other items of $13 million and $8 million for the three months ended September 30, 2010 and 2009, respectively, and $38 million and $13 million for the nine months ended September 30, 2010 and 2009, respectively.

(Preliminary)

American Express Company

Condensed Consolidated Balance Sheets

(Billions)

	September 30,		December 31,
	2010		2009

Assets
Cash	$	21	$	17
Accounts receivable		38		38
Investment securities		17		24
Loans		53		30
Other assets		17		16
Total assets	$	146	$	125

Liabilities and Shareholders' Equity
Customer deposits	$	28	$	26
Short-term borrowings		2		2
Long-term debt		69		52
Other liabilities		31		31
Total liabilities		130		111

Shareholders' equity		16		14
Total liabilities and shareholders' equity	$	146	$	125

(Preliminary)

American Express Company

Financial Summary

(Millions)

	Quarters Ended									Nine Months Ended
	September 30,						Percentage			September 30,						Percentage
	2010			2009			Inc/(Dec)			2010			2009			Inc/(Dec)

Total revenues net of interest expense
U.S. Card Services	$	3,664		$	2,982			23	%	$	10,847		$	8,965			21	%
International Card Services		1,169			1,157			1			3,416			3,314			3
Global Commercial Services		1,144			975			17			3,250			2,911			12
Global Network & Merchant Services		1,118			976			15			3,183			2,749			16
		7,095			6,090			17			20,696			17,939			15
Corporate & Other, including adjustments and eliminations		(62	)		(74	)		(16	)		(199	)		95			#

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	7,033		$	6,016			17		$	20,497		$	18,034			14

Pretax income (loss) from continuing operations
U.S. Card Services	$	971		$	218			#		$	2,476		$	(60	)		#
International Card Services		145			136			7			530			236			#
Global Commercial Services		240			148			62			616			364			69
Global Network & Merchant Services		422			371			14			1,254			1,123			12
		1,778			873			#			4,876			1,663			#
Corporate & Other		(138	)		45			#			(389	)		217			#

PRETAX INCOME FROM CONTINUING OPERATIONS	$	1,640		$	918			79		$	4,487		$	1,880			#

Net income (loss)
U.S. Card Services	$	595		$	158			#		$	1,545		$	(2	)		#
International Card Services		153			133			15			464			263			76
Global Commercial Services		159			102			56			368			250			47
Global Network & Merchant Services		259			248			4			795			737			8
		1,166			641			82			3,172			1,248			#
Corporate & Other		(73	)		1			#			(177	)		179			#
Income from continuing operations		1,093			642			70			2,995			1,427			#
Loss from discontinued operations, net of tax		-			(2	)		-			-			(13	)		-

NET INCOME	$	1,093		$	640			71		$	2,995		$	1,414			#

______________________

# - Denotes a variance of more than 100%.

(Preliminary)

American Express Company

Financial Summary (continued)

	Quarters Ended								Nine Months Ended
	September 30,					Percentage			September 30,					Percentage
	2010		2009			Inc/(Dec)			2010		2009			Inc/(Dec)
EARNINGS PER COMMON SHARE

BASIC
Income from continuing operations attributable to common shareholders	$	0.91	$	0.54			69	%	$	2.49	$	0.95			#	%
Loss from discontinued operations		-		-			-			-		(0.01	)		-
Net income attributable to common shareholders	$	0.91	$	0.54			69	%	$	2.49	$	0.94			#	%

Average common shares outstanding (millions)		1,193		1,178			1	%		1,189		1,164			2	%

DILUTED
Income from continuing operations attributable to common shareholders	$	0.90	$	0.54			67	%	$	2.47	$	0.95			#	%
Loss from discontinued operations		-		(0.01	)		-			-		(0.01	)		-
Net income attributable to common shareholders	$	0.90	$	0.53			70	%	$	2.47	$	0.94			#	%

Average common shares outstanding (millions)		1,199		1,181			2	%		1,195		1,166			2	%

Cash dividends declared per common share	$	0.18	$	0.18			-	%	$	0.54	$	0.54			-	%

Selected Statistical Information

	Quarters Ended									Nine Months Ended
	September 30,						Percentage			September 30,						Percentage
	2010			2009			Inc/(Dec)			2010			2009			Inc/(Dec)

Return on average equity (A)		25.9	%		11.7	%					25.9	%		11.7	%
Return on average common equity (A)		25.6	%		10.4	%					25.6	%		10.4	%
Return on average tangible common equity (A)		33.1	%		13.5	%					33.1	%		13.5	%
Common shares outstanding (millions)		1,204			1,189			1	%		1,204			1,189			1	%
Book value per common share	$	13.22		$	11.72			13	%	$	13.22		$	11.72			13	%
Shareholders' equity (billions)	$	15.9		$	13.9			14	%	$	15.9		$	13.9			14	%

______________________

# - Denotes a variance of more than 100%.

(A) Refer to Appendix I for components of return on average equity, return on average common equity and return on average tangible common equity.

(Preliminary)

American Express Company

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,						Percentage
	2010			2009			Inc/(Dec)
Card billed business (A):
United States	$	120.5		$	106.5			13	%
Outside the United States		58.8			50.1			17
Total	$	179.3		$	156.6			14

Total cards-in-force (millions) (B):
United States		48.1			49.4			(3	)%
Outside the United States		40.9			39.0			5
Total		89.0			88.4			1

Basic cards-in-force (millions) (B):
United States		37.2			38.6			(4	)%
Outside the United States		36.2			34.3			6
Total		73.4			72.9			1

Average discount rate (C)		2.56	%		2.54	%
Average basic cardmember spending (dollars) (D)	$	3,330		$	2,898			15	%
Average fee per card (dollars) (D)	$	38		$	37			3	%
Average fee per card adjusted (dollars) (D)	$	41		$	41			-	%

______________________

(A) 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 co-brand portfolios in Global Network Services, from which the Company earns no revenue, is not included in non-proprietary billed business. Card billed business is reflected in the United States or outside the United States based on where the cardmember is domiciled.

(B) Total cards-in-force represents the number of cards that are issued and outstanding. Proprietary basic consumer cards-in-force includes basic cards issued to the primary account owner and does not include additional supplemental cards issued on that account. Proprietary basic small business and corporate cards-in-force include basic and supplemental cards issued to employee cardmembers. Non-proprietary cards-in-force includes all cards that are issued and outstanding under network partnership agreements, except for retail co-brand cardmember accounts which have no out-of-store spend activity during the prior 12 month period.

(C) This calculation is designed to reflect pricing at merchants accepting general purpose American Express cards. It represents the percentage of billed business (both proprietary and Global Network Services) retained by the Company from merchants it acquires, prior to payments to third parties unrelated to merchant acceptance.

(D) Average basic cardmember spending and average fee per card are computed from proprietary card activities only. Average fee per card is computed based on net card fees, including the amortization of deferred direct acquisition costs, plus card fees included in interest and fees on loans (including related amortization of deferred direct acquisition costs), divided by average worldwide proprietary cards-in-force. The card fees related to cardmember loans included in interest and fees on loans were $58 million and $47 million for the quarters ended September 30, 2010 and 2009, respectively. The adjusted average fee per card is computed in the same manner, but excludes amortization of deferred direct acquisition costs (a portion of which is charge card related and included in net card fees and a portion of which is lending related and included in interest and fees on loans). The amount of amortization excluded was $49 million and $57 million for the quarters ended September 30, 2010 and 2009, respectively. The Company presents adjusted average fee per card because management believes that this metric presents a useful indicator of card fee pricing across a range of its proprietary card products.

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,						Percentage
	2010			2009			Inc/(Dec)
Worldwide cardmember receivables:
Total receivables	$	35.1		$	32.1			9	%
Loss reserves (millions):
Beginning balance	$	440		$	714			(38	)%
Provisions for losses on authorized transactions (A)		53			118			(55	)
Net write-offs		(116	)		(265	)		(56	)
Other		(13	)		32			#
Ending balance	$	364		$	599			(39	)
% of receivables		1.0	%		1.9	%
Net write-off rate - USCS		1.6	%		3.2	%
30 days past due as a % of total - USCS		1.7	%		2.2	%
Net loss ratio (as a % of charge volume) - ICS/GCS		0.09	%		0.28	%
90 days past billing as a % of total - ICS/GCS		0.8	%		1.9	%

Worldwide cardmember loans - (GAAP basis portfolio) (B):
Total loans	$	57.2		$	31.5			82	%
30 days past due loans as a % of total		2.5	%		4.0	%
Loss reserves (millions):
Beginning balance	$	4,866		$	3,219			51	%
Adoption of new GAAP consolidation standard		N/A			N/A
Provisions for losses on authorized transactions		239			973			(75	)
Net write-offs - principal		(728	)		(731	)		-
Net write-offs - interest and fees		(81	)		(90	)		(10	)
Other		22			(12	)		#
Ending balance	$	4,318		$	3,359			29
Ending Reserves - principal	$	4,210		$	3,246			30
Ending Reserves - interest and fees	$	108		$	113			(4	)
% of loans		7.5	%		10.7	%
% of past due		302	%		264	%
Average loans	$	57.4		$	32.3			78	%
Net write-off rate		5.1	%		9.1	%
Net interest income divided by average loans (C) (D)		8.2	%		9.3	%
Net interest yield on cardmember loans (C)		9.5	%		10.2	%

Worldwide cardmember loans - (managed basis portfolio) (E):
Total loans	$	57.2		$	60.7			(6	)%
30 days past due loans as a % of total		2.5	%		4.0	%
Net write-offs - principal (millions)	$	728		$	1,327			(45	)
Average loans	$	57.4		$	61.8			(7	)%
Net write-off rate		5.1	%		8.6	%
Net interest yield on cardmember loans (C)		9.5	%		10.2	%

______________________

# - Denotes a variance of more than 100%.

(A) Represents loss provisions for cardmember receivables consisting of principal (resulting from authorized transactions) and fee reserve components. Adjustments to cardmember receivables resulting from unauthorized transactions have been reclassified from this line to "Other" for all periods presented.

(B) For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the "owned" basis presentation. The information presented on a GAAP basis for the quarter ended September 30, 2009 includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of GAAP governing the accounting for transfers of financial assets and consolidation of variable interest entities (the “new GAAP”). Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 19 for a discussion of GAAP basis information.

(C) See Appendix III for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. Management believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(D) This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

(E) For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans. The adoption of new GAAP on January 1, 2010 resulted in accounting for both the Company's securitized and non-securitized cardmember loans in the consolidated financial statements. As a result, the Company's 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable. Refer to page 19 for a discussion of managed basis information.

(Preliminary)

American Express Company

Consolidated Statements of Income

(Millions)

	Quarters Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2010		2010		2010		2009		2009

Revenues
Non-interest revenues
Discount revenue	$	3,818	$	3,734	$	3,466	$	3,645	$	3,373
Net card fees		527		520		521		549		538
Travel commissions and fees		487		434		386		439		383
Other commissions and fees		515		497		500		438		448
Securitization income, net (A)		N/A		N/A		N/A		190		71
Other		502		485		426		518		449
Total non-interest revenues		5,849		5,670		5,299		5,779		5,262
Interest income
Interest and fees on loans		1,675		1,657		1,775		1,036		1,059
Interest and dividends on investment securities		103		125		117		225		229
Deposits with banks and other		16		16		13		11		9
Total interest income		1,794		1,798		1,905		1,272		1,297
Interest expense
Deposits		141		137		128		126		109
Short-term borrowings		-		1		1		1		2
Long-term debt and other		469		472		469		435		432
Total interest expense		610		610		598		562		543
Net interest income		1,184		1,188		1,307		710		754
Total revenues net of interest expense		7,033		6,858		6,606		6,489		6,016
Provisions for losses
Charge card		89		96		227		141		143
Cardmember loans		262		540		688		560		989
Other		22		16		28		47		46
Total provisions for losses		373		652		943		748		1,178
Total revenues net of interest expense after provision for losses		6,660		6,206		5,663		5,741		4,838

Expenses
Marketing and promotion		847		802		595		713		504
Cardmember rewards		1,269		1,198		1,218		1,178		983
Cardmember services		135		122		149		143		132
Salaries and employee benefits		1,354		1,315		1,327		1,196		1,261
Professional services		701		636		561		715		575
Occupancy and equipment		371		379		384		495		374
Communications		92		97		95		99		105
Other, net		251		62		82		241		(14	)
Total		5,020		4,611		4,411		4,780		3,920
Pretax income from continuing operations		1,640		1,595		1,252		961		918
Income tax provision		547		578		367		251		276
Income from continuing operations		1,093		1,017		885		710		642
Income (Loss) from discontinued operations, net of tax		-		-		-		6		(2	)
Net income	$	1,093	$	1,017	$	885	$	716	$	640
Income from continuing operations attributable to common shareholders (B)	$	1,080	$	1,004	$	873	$	701	$	634
Net income attributable to common shareholders (B)	$	1,080	$	1,004	$	873	$	707	$	632

______________________

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(B) Represents income from continuing operations or net income, as applicable, less (i) earnings allocated to participating share awards and other items of $13 million for the quarter ended September 30, 2010, $13 million for the quarter ended June 30, 2010, $12 million for the quarter ended March 31, 2010, $9 million for the quarter ended December 31, 2009, and $8 million for the quarter ended September 30, 2009, respectively.

(Preliminary)

American Express Company

Financial Summary

(Millions)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Total revenues net of interest expense
U.S. Card Services	$	3,664		$	3,645		$	3,538		$	3,188		$	2,982
International Card Services		1,169			1,108			1,139			1,215			1,157
Global Commercial Services		1,144			1,084			1,022			1,072			975
Global Network & Merchant Services		1,118			1,068			997			1,031			976
		7,095			6,905			6,696			6,506			6,090
Corporate & Other, including adjustments and eliminations		(62	)		(47	)		(90	)		(17	)		(74	)

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE	$	7,033		$	6,858		$	6,606		$	6,489		$	6,016

Pretax income (loss) from continuing operations
U.S. Card Services	$	971		$	828		$	677		$	646		$	218
International Card Services		145			201			184			40			136
Global Commercial Services		240			240			136			141			148
Global Network & Merchant Services		422			417			415			322			371
		1,778			1,686			1,412			1,149			873
Corporate & Other		(138	)		(91	)		(160	)		(188	)		45

PRETAX INCOME FROM CONTINUING OPERATIONS	$	1,640		$	1,595		$	1,252		$	961		$	918

Net income (loss)
U.S. Card Services	$	595		$	522		$	428		$	413		$	158
International Card Services		153			160			151			69			133
Global Commercial Services		159			117			92			100			102
Global Network & Merchant Services		259			269			267			200			248
		1,166			1,068			938			782			641
Corporate & Other		(73	)		(51	)		(53	)		(72	)		1
Income from continuing operations		1,093			1,017			885			710			642
Income (Loss) from discontinued operations, net of tax		-			-			-			6			(2	)

NET INCOME	$	1,093		$	1,017		$	885		$	716		$	640

(Preliminary)

American Express Company

Financial Summary (continued)

	Quarters Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2010		2010		2010		2009		2009
EARNINGS PER COMMON SHARE

BASIC
Income from continuing operations attributable to common shareholders	$	0.91	$	0.84	$	0.74	$	0.59	$	0.54
Income from discontinued operations		-		-		-		0.01		-
Net income attributable to common shareholders	$	0.91	$	0.84	$	0.74	$	0.60	$	0.54

Average common shares outstanding (millions)		1,193		1,190		1,185		1,179		1,178

DILUTED
Income from continuing operations attributable to common shareholders	$	0.90	$	0.84	$	0.73	$	0.59	$	0.54
Income (Loss) from discontinued operations		-		-		-		0.01		(0.01	)
Net income attributable to common shareholders	$	0.90	$	0.84	$	0.73	$	0.60	$	0.53

Average common shares outstanding (millions)		1,199		1,197		1,191		1,184		1,181

Cash dividends declared per common share	$	0.18	$	0.18	$	0.18	$	0.18	$	0.18

Selected Statistical Information

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Return on average equity (A)		25.9	%		23.5	%		18.0	%		14.6	%		11.7	%
Return on average common equity (A)		25.6	%		23.2	%		17.1	%		13.6	%		10.4	%
Return on average tangible common equity (A)		33.1	%		30.0	%		22.2	%		17.6	%		13.5	%
Common shares outstanding (millions)		1,204			1,202			1,198			1,192			1,189
Book value per common share	$	13.22		$	12.08		$	11.21		$	12.08		$	11.72
Shareholders' equity (billions)	$	15.9		$	14.5		$	13.4		$	14.4		$	13.9

______________________

(A) Refer to Appendix I for components of return on average equity, return on average common equity and return on average tangible common equity.

(Preliminary)

American Express Company

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009
Card billed business (A):
United States	$	120.5		$	119.7		$	108.0		$	115.0		$	106.5
Outside the United States		58.8			55.6			53.0			57.6			50.1
Total	$	179.3		$	175.3		$	161.0		$	172.6		$	156.6
Total cards-in-force (millions) (B):
United States		48.1			49.0			48.8			48.9			49.4
Outside the United States		40.9			39.9			39.2			39.0			39.0
Total		89.0			88.9			88.0			87.9			88.4
Basic cards-in-force (millions) (B):
United States		37.2			38.1			38.1			38.2			38.6
Outside the United States		36.2			35.2			34.4			34.3			34.3
Total		73.4			73.3			72.5			72.5			72.9

Average discount rate (C)		2.56	%		2.56	%		2.55	%		2.51	%		2.54	%
Average basic cardmember spending (dollars) (D)	$	3,330		$	3,288		$	3,012		$	3,209		$	2,898
Average fee per card (dollars) (D)	$	38		$	37		$	37		$	39		$	37
Average fee per card adjusted (dollars) (D)	$	41		$	41		$	40		$	42		$	41

______________________

(D) Average basic cardmember spending and average fee per card are computed from proprietary card activities only. Average fee per card is computed based on net card fees, including the amortization of deferred direct acquisition costs, plus card fees included in interest and fees on loans (including related amortization of deferred direct acquisition costs), divided by average worldwide proprietary cards-in-force. The card fees related to cardmember loans included in interest and fees on loans were $58 million for the quarter ended September 30, 2010, $48 million for the quarter ended June 30, 2010, $51 million for the quarter ended March 31, 2010, $54 million for the quarter ended December 31, 2009, and $47 million for the quarter ended September 30, 2009, respectively. The adjusted average fee per card is computed in the same manner, but excludes amortization of deferred direct acquisition costs (a portion of which is charge card related and included in net card fees and a portion of which is lending related and included in interest and fees on loans). The amount of amortization excluded for these periods were $49 million for the quarter ended September 30, 2010, $56 million for the quarter ended June 30, 2010, $51 million for the quarter ended March 31, 2010, $54 million for the quarter ended December 31, 2009, and $57 million for the quarter ended September 30, 2009, respectively. The Company presents adjusted average fee per card because management believes that this metric presents a useful indicator of card fee pricing across a range of its proprietary card products.

(Preliminary)

American Express Company

Selected Statistical Information (continued)

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Worldwide cardmember receivables:
Total receivables	$	35.1		$	34.6		$	33.7		$	33.7		$	32.1
Loss reserves (millions):
Beginning balance	$	440		$	498		$	546		$	599		$	714
Provisions for losses on authorized transactions (A)		53			55			184			116			118
Net write-offs (B)		(116	)		(121	)		(244	)		(194	)		(265	)
Other		(13	)		8			12			25			32
Ending balance	$	364		$	440		$	498		$	546		$	599
% of receivables		1.0	%		1.3	%		1.5	%		1.6	%		1.9	%
Net write-off rate - USCS		1.6	%		1.6	%		1.7	%		1.9	%		3.2	%
30 days past due as a % of total - USCS		1.7	%		1.5	%		1.9	%		1.8	%		2.2	%
Net loss ratio (as a % of charge volume) - ICS/GCS (B) (C)		0.09	%		0.10	%		0.38	%		0.22	%		0.28	%
90 days past billing as a % of total - ICS/GCS (B)		0.8	%		1.0	%		0.9	%		1.6	%		1.9	%

Worldwide cardmember loans - (GAAP basis portfolio) (D):
Total loans	$	57.2		$	57.3		$	57.6		$	32.8		$	31.5
30 days past due loans as a % of total		2.5	%		2.8	%		3.3	%		3.6	%		4.0	%
Loss reserves (millions):
Beginning balance	$	4,866		$	5,314		$	3,268		$	3,359		$	3,219
Adoption of new GAAP consolidation standard (E)		N/A			N/A		$	2,531			N/A			N/A
Provisions for losses on authorized transactions		239			520			670			544			973
Net write-offs - principal		(728	)		(867	)		(1,035	)		(589	)		(731	)
Net write-offs - interest and fees		(81	)		(92	)		(114	)		(72	)		(90	)
Other		22			(9	)		(6	)		26			(12	)
Ending balance	$	4,318		$	4,866		$	5,314		$	3,268		$	3,359
Ending Reserves - principal	$	4,210		$	4,743		$	5,161		$	3,172		$	3,246
Ending Reserves - interest and fees	$	108		$	123		$	153		$	96		$	113
% of loans		7.5	%		8.5	%		9.2	%		10.0	%		10.7	%
% of past due		302	%		307	%		277	%		279	%		264	%
Average loans	$	57.4		$	57.5		$	59.3		$	31.8		$	32.3
Net write-off rate		5.1	%		6.0	%		7.0	%		7.4	%		9.1	%
Net interest income divided by average loans (F) (G)		8.2	%		8.3	%		8.9	%		8.9	%		9.3	%
Net interest yield on cardmember loans (F)		9.5	%		9.6	%		10.3	%		10.0	%		10.2	%

Worldwide cardmember loans - (managed basis portfolio) (H):
Total loans	$	57.2		$	57.3		$	57.6		$	61.8		$	60.7
30 days past due loans as a % of total		2.5	%		2.8	%		3.3	%		3.6	%		4.0	%
Net write-offs - principal (millions)	$	728		$	867		$	1,035		$	1,106		$	1,327
Average loans	$	57.4		$	57.5		$	59.3		$	60.9		$	61.8
Net write-off rate		5.1	%		6.0	%		7.0	%		7.3	%		8.6	%
Net interest yield on cardmember loans (F)		9.5	%		9.6	%		10.3	%		10.3	%		10.2	%

______________________

(B) Effective January 1, 2010, the Company revised the time period in which past due cardmember receivables in International Card Services and Global Commercial Services are written off to when they are 180 days past due or earlier, consistent with applicable bank regulatory guidance and the write-off methodology adopted for U.S. Card Services in the fourth quarter of 2008. Previously, receivables were written off when they were 360 days past billing or earlier. Therefore, the net write-offs for the first quarter of 2010 include net write-offs of approximately $60 million for International Card Services and approximately $48 million for Global Commercial Services resulting from this write-off methodology change, which increased the net loss ratios and decreased the 90 days past billing metrics for these segments, but did not have a substantial impact on provisions for losses. If these amounts had been excluded from net write-offs, the combined net loss ratio for International Card Services/Global Commercial Services for the first quarter of 2010 would have been 0.13%.

(C) Beginning with the first quarter of 2010, the Company has revised the net loss ratio to exclude net write-offs related to unauthorized transactions, consistent with the methodology for calculation of the net write-off rate for U.S. Card Services. The metrics for prior periods have not been revised for this change as it was deemed immaterial.

(D) For periods ended on or prior to December 31, 2009, the Company's cardmember loans and related debt performance information on a GAAP basis was referred to as the "owned" basis presentation. The information presented on a GAAP basis for such periods includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans . Refer to page 19 for a discussion of GAAP basis information.

(E) Reflects the new GAAP effective January 1, 2010, which resulted in the consolidation of the American Express Credit Account Master Trust (the Lending Trust), reflecting $29.0 billion of additional cardmember loans along with a $2.5 billion loan loss reserve on the Company's balance sheets.

(F) See Appendix III for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. Management believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(G) This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

(H) For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans. The adoption of new GAAP on January 1, 2010 resulted in accounting for both the Company's securitized and non-securitized cardmember loans in the consolidated financial statements. As a result, the Company's 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable. Refer to page 19 for a discussion of managed basis information.

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	September 30,				Percentage
	2010		2009		Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	2,540	$	2,262		12	%
Securitization income, net (A)		N/A		71		-
Interest income		1,334		776		72
Interest expense		210		127		65
Net interest income		1,124		649		73
Total revenues net of interest expense		3,664		2,982		23
Provisions for losses		274		850		(68	)
Total revenues net of interest expense after provisions for losses		3,390		2,132		59
Expenses
Marketing, promotion, rewards and cardmember services		1,455		1,050		39
Salaries and employee benefits and other operating expenses		964		864		12
Total		2,419		1,914		26
Pretax segment income		971		218		#
Income tax provision		376		60		#
Segment income	$	595	$	158		#

______________________

# - Denotes a variance of more than 100%.

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(Preliminary)

U.S. Card Services

Selected Financial Information

Managed Basis Presentation

The following table sets forth portfolio financial information for the quarters ended September 30, 2010 and September 30, 2009. The September 30, 2010 financial information was determined in accordance with the new GAAP effective January 1, 2010. The September 30, 2009 information includes the "owned" (GAAP) basis presentation, together with the adjustments for securitization activity to arrive at the "managed" (non-GAAP) basis presentation. For additional information, see “Cardmember Loan Portfolio Presentation” below.

(Millions)

	Quarters Ended
	September 30,					Percentage
	2010		2009			Inc/(Dec)

Income Statement Data
Discount revenue, net card fees and other:
Reported for the period (GAAP)	$	2,540	$	2,262			12	%
Securitization adjustments		N/A		82			-
Managed discount revenue, net card fees and other	$	2,540	$	2,344			8

Interest income:
Reported for the period (GAAP)	$	1,334	$	776			72
Securitization adjustments		N/A		714			-
Managed interest income	$	1,334	$	1,490			(10	)

Securitization income, net: (A)
Reported for the period (GAAP)		N/A	$	71			-
Securitization adjustments		N/A		(71	)		-
Managed securitization income, net		N/A	$	-			-

Interest expense:
Reported for the period (GAAP)	$	210	$	127			65
Securitization adjustments		N/A		58			-
Managed interest expense	$	210	$	185			14

Provisions for losses:
Reported for the period (GAAP)	$	274	$	850			(68	)
Securitization adjustments		N/A		529	(B)		-
Managed provisions for losses	$	274	$	1,379	(B)		(80	)

______________________

# - Denotes a variance of more than 100%.

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(B) Includes provisions for losses for off-balance sheet cardmember loans based on the same methodology as applied to on-balance sheet cardmember loans, except that any quarterly adjustment to reserve levels for on-balance sheet loans to address external environmental factors was not applied to adjust the provision expense for the securitized portfolio.

Cardmember Loan Portfolio Presentation

For periods ended on or prior to December 31, 2009, the Company’s non-securitized cardmember loans and related debt performance information on a GAAP basis was referred to as the “owned” basis presentation. For such periods, the Company also provided information on a non-GAAP “managed” basis. Unlike the GAAP basis presentation, the managed basis presentation in such periods assumed there had been no off-balance sheet securitizations for the Company’s U.S. Card Services segment (the Company does not currently securitize its international cardmember loans), resulting in the inclusion of all securitized and non-securitized cardmember loans and related debt in the Company’s performance information.

Under the GAAP basis presentation prior to securitization for periods ended on or prior to December 31, 2009, revenues and expenses from cardmember loans and related debt were reflected in the Company’s income statements in other commissions and fees, net interest income and provisions for losses for cardmember loans. At the time of a securitization transaction, the securitized cardmember loans were removed from the Company’s balance sheet, and the resulting gain on sale was reflected in securitization income, net, as well as a reduction to provisions for losses (credit reserves were no longer recorded for the cardmember loans once sold). Over the life of a securitization transaction, the Company recognized the net cash flow from interest and fee collections on interests sold to investors (the investors’ interests) after deducting interest paid on the investors’ certificates, credit losses, contractual service fees, other expenses and changes in the fair value of the interest-only strip (referred to as “excess spread”). These amounts, in addition to servicing fees and the non-credit components of the gains/(losses) from securitization activities were reflected in securitization income, net. The Company also recognized interest income over the life of the securitization transaction related to the interest it retained (i.e., the seller’s interest).

At the maturity of a securitization transaction, cardmember loans on the balance sheet increased, and the impact of the incremental required loss reserves was recorded in provisions for losses.

Under the managed basis presentation for periods ended on or prior to December 31, 2009, revenues and expenses related to securitized cardmember loans and related debt were reflected in other commissions and fees (included in discount revenue, net card fees and other), interest income, interest expense and provisions for losses. In addition, there was no securitization income, net as this presentation assumed no securitization transactions had occurred.

Historically, the Company included U.S. Card Services information on a managed basis, as that was the manner in which the Company’s management viewed and managed the business. Management believed that a full picture of trends in the Company’s cardmember loans business could only be derived by evaluating the performance of both securitized and non-securitized cardmember loans, as the presentation of the entire cardmember loan portfolio was more representative of the economics of the aggregate cardmember relationships and ongoing business performance and related trends over time. The managed basis presentation also provided investors a more comprehensive assessment of the information necessary for the Company and investors to evaluate the Company’s market share.

The adoption of new GAAP on January 1, 2010 resulted in accounting for both the Company's securitized and non-securitized cardmember loans in the consolidated financial statements. As a result, the Company's 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable.

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,						Percentage
	2010			2009			Inc/(Dec)

Card billed business	$	95.2		$	85.2			12	%
Total cards-in-force (millions)		39.9			39.8			-	%
Basic cards-in-force (millions)		29.7			29.7			-	%
Average basic cardmember spending (dollars)	$	3,219		$	2,851			13	%

U.S. Consumer Travel:
Travel sales (millions)	$	828		$	629			32	%
Travel commissions and fees/sales		8.6	%		8.4	%

Total segment assets	$	82.2		$	53.2			55	%
Segment capital (millions) (A)	$	7,011		$	5,493			28	%
Return on average segment capital (B)		32.8	%		2.6	%
Return on average tangible segment capital (B)		35.5	%		2.8	%

Cardmember receivables:
Total receivables	$	16.5		$	15.9			4	%
30 days past due as a % of total		1.7	%		2.2	%
Average receivables	$	16.9		$	15.8			7	%
Net write-off rate		1.6	%		3.2	%

Cardmember loans - (GAAP basis portfolio) (C):
Total loans	$	48.7		$	22.7			#	%
30 days past due loans as a % of total		2.5	%		4.2	%
Average loans	$	49.1		$	23.4			#	%
Net write-off rate		5.2	%		9.8	%
Net interest income divided by average loans (D) (E)		9.1	%		11.0	%
Net interest yield on cardmember loans (D)		9.3	%		9.4	%

Cardmember loans - (managed basis portfolio) (F):
Total loans	$	48.7		$	51.9			(6	) %
30 days past due loans as a % of total		2.5	%		4.1	%
Average loans	$	49.1		$	52.9			(7	) %
Net write-off rate		5.2	%		8.9	%
Net interest yield on cardmember loans (D)		9.3	%		9.8	%

______________________

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the "owned" basis presentation. The information presented on a GAAP basis for the quarter ended September 30, 2009 includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 19 for a discussion of GAAP basis information.

(D) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. Management believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(E) This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

(F) For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans. The adoption of new GAAP on January 1, 2010 resulted in accounting for both the Company's securitized and non-securitized cardmember loans in the consolidated financial statements. As a result, the Company's 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable. Refer to page 19 for a discussion of managed basis information.

(Preliminary)

U.S. Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2010		2010		2010		2009		2009

Revenues
Discount revenue, net card fees and other	$	2,540	$	2,534	$	2,317	$	2,377	$	2,262
Securitization income, net (A)		N/A		N/A		N/A		190		71
Interest income		1,334		1,315		1,411		754		776
Interest expense		210		204		190		133		127
Net interest income		1,124		1,111		1,221		621		649
Total revenues net of interest expense		3,664		3,645		3,538		3,188		2,982
Provisions for losses		274		519		687		346		850
Total revenues net of interest expense after provisions for losses		3,390		3,126		2,851		2,842		2,132
Expenses
Marketing, promotion, rewards and cardmember services		1,455		1,386		1,301		1,306		1,050
Salaries and employee benefits and other operating expenses		964		912		873		890		864
Total		2,419		2,298		2,174		2,196		1,914
Pretax segment income		971		828		677		646		218
Income tax provision		376		306		249		233		60
Segment income	$	595	$	522	$	428	$	413	$	158

______________________

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(Preliminary)

U.S. Card Services

Selected Financial Information

Managed Basis Presentation

The following table sets forth portfolio financial information for the quarters ended September 30, 2010, June 30, 2010, March 31, 2010, December 31, 2009 and September 30, 2009. The September 30, 2010, June 30, 2010 and March 31, 2010 financial information was determined in accordance with the new GAAP effective January 1, 2010. The December 31, 2009 and September 30, 2009 information includes the "owned" (GAAP) basis presentation, together with the adjustments for securitization activity to arrive at the "managed" (non-GAAP) basis presentation. For additional information, please see "Cardmember Loan Portfolio Presentation" discussion on page 19.

(Millions)

	Quarters Ended
	September 30,		June 30,		March 31,		December 31,			September 30,
	2010		2010		2010		2009			2009

Income Statement Data
Discount revenue, net card fees and other:
Reported for the period (GAAP)	$	2,540	$	2,534	$	2,317	$	2,377		$	2,262
Securitization adjustments		N/A		N/A		N/A		71			82
Managed discount revenue, net card fees and other	$	2,540	$	2,534	$	2,317	$	2,448		$	2,344

Interest income:
Reported for the period (GAAP)	$	1,334	$	1,315	$	1,411	$	754		$	776
Securitization adjustments		N/A		N/A		N/A		726			714
Managed interest income	$	1,334	$	1,315	$	1,411	$	1,480		$	1,490

Securitization income, net (A):
Reported for the period (GAAP)		N/A		N/A		N/A	$	190		$	71
Securitization adjustments		N/A		N/A		N/A		(190	)		(71	)
Managed securitization income, net		N/A		N/A		N/A	$	-		$	-

Interest expense:
Reported for the period (GAAP)	$	210	$	204	$	190	$	133		$	127
Securitization adjustments		N/A		N/A		N/A		55			58
Managed interest expense	$	210	$	204	$	190	$	188		$	185

Provisions for losses:
Reported for the period (GAAP)	$	274	$	519	$	687	$	346		$	850
Securitization adjustments		N/A		N/A		N/A		572	(B)		529	(B)
Managed provisions for losses	$	274	$	519	$	687	$	918	(B)	$	1,379	(B)

______________________

(A) In accordance with the new GAAP effective January 1, 2010, the Company no longer reports securitization income, net in its income statement.

(Preliminary)

U.S. Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Card billed business	$	95.2		$	94.6		$	84.9		$	92.1		$	85.2
Total cards-in-force (millions)		39.9			39.6			39.5			39.5			39.8
Basic cards-in-force (millions)		29.7			29.5			29.4			29.5			29.7
Average basic cardmember spending (dollars)	$	3,219		$	3,212		$	2,884		$	3,112		$	2,851

U.S. Consumer Travel:
Travel sales	$	0.8		$	0.8		$	0.7		$	0.6		$	0.6
Travel commissions and fees/sales		8.6	%		7.9	%		7.8	%		8.5	%		8.4	%

Total segment assets	$	82.2		$	82.4		$	75.3		$	57.9		$	53.2
Segment capital (A)	$	7.0		$	6.0		$	5.3		$	6.0		$	5.5
Return on average segment capital (B)		32.8	%		26.9	%		15.8	%		8.0	%		2.6	%
Return on average tangible segment capital (B)		35.5	%		29.2	%		17.2	%		8.7	%		2.8	%

Cardmember receivables:
Total receivables	$	16.5		$	17.3		$	16.6		$	17.8		$	15.9
30 days past due as a % of total		1.7	%		1.5	%		1.9	%		1.8	%		2.2	%
Average receivables	$	16.9		$	17.1		$	16.7		$	16.5		$	15.8
Net write-off rate		1.6	%		1.6	%		1.7	%		1.9	%		3.2	%

Cardmember loans - (GAAP basis portfolio) (C):
Total loans	$	48.7		$	49.0		$	49.2		$	23.5		$	22.7
30 days past due loans as a % of total		2.5	%		2.7	%		3.3	%		3.7	%		4.2	%
Average loans	$	49.1		$	49.1		$	50.5		$	22.7		$	23.4
Net write-off rate		5.2	%		6.2	%		7.2	%		8.0	%		9.8	%
Net interest income divided by average loans (D) (E)		9.1	%		9.1	%		9.8	%		10.9	%		11.0	%
Net interest yield on cardmember loans (D)		9.3	%		9.3	%		10.0	%		9.4	%		9.4	%

Cardmember loans - (managed basis portfolio) (F):
Total loans	$	48.7		$	49.0		$	49.2		$	52.6		$	51.9
30 days past due loans as a % of total		2.5	%		2.7	%		3.3	%		3.7	%		4.1	%
Average loans	$	49.1		$	49.1		$	50.5		$	51.8		$	52.9
Net write-off rate		5.2	%		6.2	%		7.2	%		7.5	%		8.9	%
Net interest yield on cardmember loans (D)		9.3	%		9.3	%		10.0	%		10.0	%		9.8	%

______________________

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) For periods ended on or prior to December 31, 2009, the Company’s cardmember loans and related debt performance information on a GAAP basis was referred to as the "owned" basis presentation. The information presented on a GAAP basis for such periods includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 19 for a discussion of GAAP basis information.

(D) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. Managment believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(Preliminary)

International Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	September 30,					Percentage
	2010			2009		Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	932		$	878		6	%
Interest income		342			384		(11	)
Interest expense		105			105		-
Net interest income		237			279		(15	)
Total revenues net of interest expense		1,169			1,157		1
Provisions for losses		64			250		(74	)
Total revenues net of interest expense after provisions for losses		1,105			907		22
Expenses
Marketing, promotion, rewards and cardmember services		428			302		42
Salaries and employee benefits and other operating expenses		532			469		13
Total		960			771		25
Pretax segment income		145			136		7
Income tax (benefit) provision		(8	)		3		#
Segment income	$	153		$	133		15

______________________

# - Denotes variance of more than 100%.

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,						Percentage
	2010			2009			Inc/(Dec)

Card billed business	$	27.1		$	24.2			12	%
Total cards-in-force (millions)		15.0			15.2			(1	)%
Basic cards-in-force (millions)		10.4			10.6			(2	)%
Average basic cardmember spending (dollars)	$	2,609		$	2,273			15	%

International Consumer Travel:
Travel sales (millions)	$	291		$	258			13	%
Travel commissions and fees/sales		7.9	%		8.5	%

Total segment assets	$	21.4		$	19.5	*		10	%
Segment capital (millions) (A)	$	2,077		$	2,251			(8	)%
Return on average segment capital (B)		24.8	%		13.2	%
Return on average tangible segment capital (B)		33.8	%		17.6	%

Cardmember receivables:
Total receivables	$	6.2		$	5.6			11	%
90 days past billing as a % of total		1.0	%		2.5	%
Net loss ratio (as a % of charge volume)		0.14	%		0.37	%

Cardmember loans:
Total loans	$	8.5		$	8.8			(3	)%
30 days past due loans as a % of total		2.8	%		3.7	%
Average loans	$	8.3		$	8.9			(7	)%
Net write-off rate		4.3	%		7.1	%
Net interest income divided by average loans (C) (D)		11.3	%		12.4	%
Net interest yield on cardmember loans (C)		11.1	%		12.4	%

______________________

* Revised from prior disclosure for the reclassification of book overdrafts as discussed in the Company's Form 10-Q for the second quarter of 2010.

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. Managment believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(Preliminary)

International Card Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	September 30,			June 30,		March 31,		December 31,			September 30,
	2010			2010		2010		2009			2009

Revenues
Discount revenue, net card fees and other	$	932		$	865	$	882	$	944		$	878
Interest income		342			342		363		384			384
Interest expense		105			99		106		113			105
Net interest income		237			243		257		271			279
Total revenues net of interest expense		1,169			1,108		1,139		1,215			1,157
Provisions for losses		64			90		158		324			250
Total revenues net of interest expense after provisions for losses		1,105			1,018		981		891			907
Expenses
Marketing, promotion, rewards and cardmember services		428			376		350		374			302
Salaries and employee benefits and other operating expenses		532			441		447		477			469
Total		960			817		797		851			771
Pretax segment income		145			201		184		40			136
Income tax (benefit) provision		(8	)		41		33		(29	)		3
Segment income	$	153		$	160	$	151	$	69		$	133

(Preliminary)

International Card Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Card billed business	$	27.1		$	25.5		$	24.4		$	27.5		$	24.2
Total cards-in-force (millions)		15.0			15.0			15.0			15.0			15.2
Basic cards-in-force (millions)		10.4			10.4			10.4			10.5			10.6
Average basic cardmember spending (dollars)	$	2,609		$	2,449		$	2,340		$	2,618		$	2,273

International Consumer Travel:
Travel sales	$	0.3		$	0.3		$	0.3		$	0.3		$	0.3
Travel commissions and fees/sales		7.9	%		8.0	%		7.3	%		9.0	%		8.5	%

Total segment assets	$	21.4		$	20.0		$	20.4	*	$	20.6	*	$	19.5	*
Segment capital (A)	$	2.1		$	2.0		$	2.1		$	2.3		$	2.3
Return on average segment capital (B)		24.8	%		23.6	%		19.7	%		15.1	%		13.2	%
Return on average tangible segment capital (B)		33.8	%		31.8	%		26.5	%		20.1	%		17.6	%

Cardmember receivables:
Total receivables	$	6.2		$	5.6		$	5.5		$	5.9		$	5.6
90 days past billing as a % of total (C)		1.0	%		1.0	%		1.1	%		2.1	%		2.5	%
Net loss ratio (as a % of charge volume) (C) (D)		0.14	%		0.15	%		0.53	%		0.37	%		0.37	%

Cardmember loans:
Total loans	$	8.5		$	8.3		$	8.4		$	9.2		$	8.8
30 days past due loans as a % of total		2.8	%		3.0	%		3.3	%		3.3	%		3.7	%
Average loans	$	8.3		$	8.3		$	8.8		$	9.0		$	8.9
Net write-off rate		4.3	%		4.9	%		5.5	%		6.1	%		7.1	%
Net interest income divided by average loans (E) (F)		11.3	%		11.7	%		11.8	%		11.9	%		12.4	%
Net interest yield on cardmember loans (E)		11.1	%		11.4	%		11.7	%		11.7	%		12.4	%

______________________

* Revised from prior disclosure for the reclassification of book overdrafts as discussed in the Company's Form 10-Q for the second quarter of 2010.

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) Effective January 1, 2010, the Company revised the time period in which past due cardmember receivables in International Card Services are written off to when they are 180 days past due or earlier, consistent with applicable bank regulatory guidance and the write-off methodology adopted for U.S. Card Services in the fourth quarter of 2008. Previously, receivables were written off when they were 360 days past billing or earlier. Therefore, the net write-offs for the first quarter of 2010 include net write-offs of approximately $60 million for International Card Services resulting from this write-off methodology change, which increased the net loss ratio and decreased the 90 days past billing metric for this segment, but did not have a substantial impact on provisions for losses. If this amount had been excluded from net write-offs, the net loss ratio for International Card Services for the first quarter of 2010 would have been 0.17%.

(D) Beginning with the first quarter of 2010, the Company has revised the net loss ratio to exclude net write-offs related to unauthorized transactions, consistent with the methodology for calculation of the net write-off rate for U.S. Card Services. The metrics for prior periods have not been revised for this change as it was deemed immaterial.

(E) See Appendix IV for calculations of net interest yield on cardmember loans, a non-GAAP measure and net interest income divided by average loans, a GAAP measure. Management believes net interest yield on cardmember loans is useful to investors because it provides a measure of profitability of the Company’s cardmember loans portfolio.

(F) This calculation includes elements of total interest income and total interest expense that are not attributable to the cardmember loan portfolio, and thus is not representative of net interest yield on cardmember loans. The calculation includes interest income and interest expense attributable to investment securities and other interest-bearing deposits as well as to cardmember loans, and interest expense attributable to other activities, including cardmember receivables.

(Preliminary)

Global Commercial Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	September 30,						Percentage
	2010			2009			Inc/(Dec)

Revenues
Discount revenue, net card fees and other	$	1,200		$	1,017			18	%
Interest income		2			1			100
Interest expense		58			43			35
Net interest expense		(56	)		(42	)		33
Total revenues net of interest expense		1,144			975			17
Provisions for losses		22			40			(45	)
Total revenues net of interest expense after provisions for losses		1,122			935			20
Expenses
Marketing, promotion, rewards and cardmember services		110			81			36
Salaries and employee benefits and other operating expenses		772			706			9
Total		882			787			12
Pretax segment income		240			148			62
Income tax provision		81			46			76
Segment income	$	159		$	102			56

______________________

# - Denotes variance of more than 100%.

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,						Percentage
	2010			2009			Inc/(Dec)

Card billed business	$	33.2		$	27.9			19	%
Total cards-in-force (millions)		7.0			7.1			(1	)%
Basic cards-in-force (millions)		7.0			7.1			(1	)%
Average basic cardmember spending (dollars)	$	4,734		$	3,907			21	%

Global Corporate Travel:
Travel sales	$	4.2		$	3.5			20	%
Travel commissions and fees/sales		9.3	%		8.8	%

Total segment assets	$	21.3		$	22.8	*		(7	)%
Segment capital (millions) (A)	$	3,633		$	3,679			(1	)%
Return on average segment capital (B)		13.0	%		6.6	%
Return on average tangible segment capital (B)		28.1	%		14.2	%

Cardmember receivables:
Total receivables	$	12.2		$	10.4			17	%
90 days past billing as a % of total		0.7	%		1.5	%
Net loss ratio (as a % of charge volume)		0.06	%		0.23	%

______________________

* Revised from prior disclosure for the reclassification of book overdrafts as discussed in the Company's Form 10-Q for the second quarter of 2010.

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(Preliminary)

Global Commercial Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Revenues
Discount revenue, net card fees and other	$	1,200		$	1,138		$	1,069		$	1,120		$	1,017
Interest income		2			2			1			1			1
Interest expense		58			56			48			49			43
Net interest expense		(56	)		(54	)		(47	)		(48	)		(42	)
Total revenues net of interest expense		1,144			1,084			1,022			1,072			975
Provisions for losses		22			28			78			37			40
Total revenues net of interest expense after provisions for losses		1,122			1,056			944			1,035			935
Expenses
Marketing, promotion, rewards and cardmember services		110			107			113			98			81
Salaries and employee benefits and other operating expenses		772			709			695			796			706
Total		882			816			808			894			787
Pretax segment income		240			240			136			141			148
Income tax provision		81			123			44			41			46
Segment income	$	159		$	117		$	92		$	100		$	102

(Preliminary)

Global Commercial Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Card billed business	$	33.2		$	32.9		$	30.8		$	31.0		$	27.9
Total cards-in-force (millions)		7.0			7.0			7.0			7.1			7.1
Basic cards-in-force (millions)		7.0			7.0			7.0			7.1			7.1
Average basic cardmember spending (dollars)	$	4,734		$	4,712		$	4,400		$	4,357		$	3,907

Global Corporate Travel:
Travel sales	$	4.2		$	4.6		$	4.1		$	4.1		$	3.5
Travel commissions and fees/sales		9.3	%		7.6	%		7.4	%		8.8	%		8.8	%

Total segment assets	$	21.3		$	23.5		$	23.5		$	23.0	*	$	22.8	*
Segment capital (A)	$	3.6		$	3.5		$	3.4		$	3.7		$	3.7
Return on average segment capital (B)		13.0	%		11.5	%		10.1	%		9.7	%		6.6	%
Return on average tangible segment capital (B)		28.1	%		25.0	%		21.9	%		20.8	%		14.2	%

Cardmember receivables:
Total receivables	$	12.2		$	11.5		$	11.4		$	9.8		$	10.4
90 days past billing as a % of total (C)		0.7	%		1.0	%		0.8	%		1.4	%		1.5	%
Net loss ratio (as a % of charge volume) (C) (D)		0.06	%		0.06	%		0.28	%		0.14	%		0.23	%

______________________

* Revised from prior disclosure for the reclassification of book overdrafts as discussed in the Company's Form 10-Q for the second quarter of 2010.

(A) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(B) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(C) Effective January 1, 2010, the Company revised the time period in which past due cardmember receivables in Global Commercial Services are written off to when they are 180 days past due or earlier, consistent with applicable bank regulatory guidance and the write-off methodology adopted for U.S. Card Services in the fourth quarter of 2008. Previously, receivables were written off when they were 360 days past billing or earlier. Therefore, the net write-offs for the first quarter of 2010 include net write-offs of approximately $48 million for Global Commercial Services resulting from this write-off methodology change, which increased the net loss ratio and decreased the 90 days past billing metric for this segment, but did not have a substantial impact on provisions for losses. If this amount had been excluded from net write-offs, the net loss ratio for Global Commercial Services for the first quarter of 2010 would have been 0.11%.

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	September 30,						Percentage
	2010			2009			Inc/(Dec)
Revenues
Discount revenue, fees and other	$	1,066		$	937			14	%
Interest income		1			-			#
Interest expense		(51	)		(39	)		31
Net interest income		52			39			33
Total revenues net of interest expense		1,118			976			15
Provisions for losses		13			33			(61	)
Total revenues net of interest expense after provisions for losses		1,105			943			17
Expenses
Marketing and promotion		208			157			32
Salaries and employee benefits and other operating expenses		475			415			14
Total		683			572			19
Pretax segment income		422			371			14
Income tax provision		163			123			33
Segment income	$	259		$	248			4

______________________

# - Denotes variance of more than 100%.

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,						Percentage
	2010			2009			Inc/(Dec)

Global Card billed business (A)	$	179.3		$	156.6			14	%

Global Network & Merchant Services:
Total segment assets	$	12.7		$	10.6	*		20	%
Segment capital (millions) (B)	$	1,831		$	1,493			23	%
Return on average segment capital (C)		63.1	%		71.0	%
Return on average tangible segment capital (C)		64.6	%		72.8	%

Global Network Services (D):
Card billed business	$	23.1		$	18.6			24	%
Total cards-in-force (millions)		27.1			26.3			3	%

______________________

* Revised from prior disclosure for the reclassification of book overdrafts as discussed in the Company's Form 10-Q for the second quarter of 2010.

(A) Global 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 co-brand portfolios in Global Network Services, from which the Company earns no revenue, is not included in non-proprietary billed business.

(B) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(C) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(D) For non-proprietary retail co-brand partners, Global Network Services metrics exclude cardmember accounts which have no out-of-store spend activity during the prior 12 month period.

(Preliminary)

Global Network & Merchant Services

Selected Income Statement Data

(Millions)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009
Revenues
Discount revenue, fees and other	$	1,066		$	1,021		$	949		$	986		$	937
Interest income		1			1			1			1			-
Interest expense		(51	)		(46	)		(47	)		(44	)		(39	)
Net interest income		52			47			48			45			39
Total revenues net of interest expense		1,118			1,068			997			1,031			976
Provisions for losses		13			12			21			34			33
Total revenues net of interest expense after provisions for losses		1,105			1,056			976			997			943
Expenses
Marketing and promotion		208			209			166			206			157
Salaries and employee benefits and other operating expenses		475			430			395			469			415
Total		683			639			561			675			572
Pretax segment income		422			417			415			322			371
Income tax provision		163			148			148			122			123
Segment income	$	259		$	269		$	267		$	200		$	248

(Preliminary)

Global Network & Merchant Services

Selected Statistical Information

(Billions, except percentages and where indicated)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Global Card billed business (A)	$	179.3		$	175.3		$	161.0		$	172.6		$	156.6

Global Network & Merchant Services:
Total segment assets	$	12.7		$	11.9		$	11.4	*	$	11.3	*	$	10.6	*
Segment capital (B)	$	1.8		$	1.8		$	1.4		$	1.4		$	1.5
Return on average segment capital (C)		63.1	%		65.2	%		65.8	%		65.7	%		71.0	%
Return on average tangible segment capital (C)		64.6	%		66.8	%		67.4	%		67.4	%		72.8	%

Global Network Services (D):
Card billed business	$	23.1		$	21.6		$	20.1		$	21.4		$	18.6
Total cards-in-force (millions)		27.1			27.3			26.5			26.3			26.3

______________________

* Revised from prior disclosure for the reclassification of book overdrafts as discussed in the Company's Form 10-Q for the second quarter of 2010.

(B) Segment capital represents capital allocated to a segment based upon specific business operational needs, risk measures, and regulatory capital requirements.

(C) Refer to Appendix II for components of return on average segment capital and return on average tangible segment capital.

(D) For non-proprietary retail co-brand partners, Global Network Services metrics exclude cardmember accounts which have no out-of-store spend activity during the prior 12 month period.

(Preliminary)

American Express Company

Components of Return on Average Equity (ROE), Return on Average Common Equity (ROCE),

and Return on Average Tangible Common Equity (ROTCE)

Appendix I

(Millions)

	For the Twelve Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

ROE

Net income	$	3,711		$	3,258		$	2,578		$	2,130		$	1,654
Average shareholders' equity	$	14,307		$	13,863		$	14,290		$	14,570		$	14,151
Return on average equity (A)		25.9	%		23.5	%		18.0	%		14.6	%		11.7	%

Reconciliation of ROCE and ROTCE

Net income	$	3,711		$	3,258		$	2,578		$	2,130		$	1,654
Preferred shares dividends and related accretion		-			-			234			306			306
Earnings allocated to participating share awards and other		47			42			30			22			14
Net income attributable to common shareholders	$	3,664		$	3,216		$	2,314		$	1,802		$	1,334

Average shareholders' equity	$	14,307		$	13,863		$	14,290		$	14,570		$	14,151
Average preferred shares		-			-			782			1,303			1,303
Average common shareholders' equity	$	14,307		$	13,863		$	13,508		$	13,267		$	12,848
Average goodwill and other intangibles		3,234			3,157			3,081			3,009			2,944
Average tangible common shareholders' equity	$	11,073		$	10,706		$	10,427		$	10,258		$	9,904
Return on average common equity (A)		25.6	%		23.2	%		17.1	%		13.6	%		10.4	%
Return on average tangible common equity (B)		33.1	%		30.0	%		22.2	%		17.6	%		13.5	%

______________________

(A) 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.

(B) Return on average tangible common equity is computed in the same manner as return on average common equity except the computation of average tangible common shareholders' equity excludes average goodwill and other intangibles. Management believes that return on average tangible common equity is a useful measure of the profitability of its business.

(Preliminary)

American Express Company

Components of Return on Average Segment Capital (ROSC) and Return on Average Tangible Segment Capital (ROTSC)

Appendix II (A)

(Millions)

	For the Twelve Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

U.S. Card Services
Segment income	$	1,958		$	1,521		$	846		$	411		$	124
Average segment capital	$	5,966		$	5,664		$	5,367		$	5,145		$	4,835
Average goodwill and other intangibles		454			447			440			432			383
Average tangible segment capital	$	5,512		$	5,217		$	4,927		$	4,713		$	4,452
Return on average segment capital (B)		32.8	%		26.9	%		15.8	%		8.0	%		2.6	%
Return on average tangible segment capital (B)		35.5	%		29.2	%		17.2	%		8.7	%		2.8	%

International Card Services
Segment income	$	533		$	513		$	431		$	332		$	296
Average segment capital	$	2,146		$	2,174		$	2,183		$	2,205		$	2,234
Average goodwill and other intangibles		567			561			554			551			551
Average tangible segment capital	$	1,579		$	1,613		$	1,629		$	1,654		$	1,683
Return on average segment capital (B)		24.8	%		23.6	%		19.7	%		15.1	%		13.2	%
Return on average tangible segment capital (B)		33.8	%		31.8	%		26.5	%		20.1	%		17.6	%

Global Commercial Services
Segment income	$	468		$	411		$	361		$	350		$	236
Average segment capital	$	3,587		$	3,571		$	3,581		$	3,623		$	3,603
Average goodwill and other intangibles		1,924			1,930			1,936			1,937			1,938
Average tangible segment capital	$	1,663		$	1,641		$	1,645		$	1,686		$	1,665
Return on average segment capital (B)		13.0	%		11.5	%		10.1	%		9.7	%		6.6	%
Return on average tangible segment capital (B)		28.1	%		25.0	%		21.9	%		20.8	%		14.2	%

Global Network & Merchant Services
Segment income	$	995		$	984		$	954		$	937		$	980
Average segment capital	$	1,578		$	1,510		$	1,449		$	1,426		$	1,381
Average goodwill and other intangibles		37			36			34			36			35
Average tangible segment capital	$	1,541		$	1,474		$	1,415		$	1,390		$	1,346
Return on average segment capital (B)		63.1	%		65.2	%		65.8	%		65.7	%		71.0	%
Return on average tangible segment capital (B)		64.6	%		66.8	%		67.4	%		67.4	%		72.8	%

______________________

(A) Beginning in the first quarter of 2010, the Company changed the manner in which it allocates interest expense and capital to its reportable operating segments. The change reflects modifications in allocation methodology that management believes to more accurately reflect funding and capital characteristics of the Company's segments. The segment results, and accordingly, ROSC and ROTSC for periods prior to the first quarter of 2010 have been revised for this change.

(B) Return on average segment capital is calculated by dividing one year period segment income by one year average segment capital. Return on average tangible segment capital is computed in the same manner as return on average segment capital except the computation of average tangible segment capital excludes average goodwill and other intangibles. Management believes that return on average tangible segment capital is a useful measure of the profitability of its business.

(Preliminary)

American Express Company

Net Interest Yield on Cardmember Loans

Appendix III (A)

(millions)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

Calculation based on 2010 and 2009 GAAP information (B):
Net interest income	$	1,184		$	1,188		$	1,307		$	710		$	754
Average loans (billions)	$	57.4		$	57.5		$	59.3		$	31.8		$	32.3
Adjusted net interest income (C)	$	1,381		$	1,379		$	1,498		$	807		$	837
Adjusted average loans (billions) (D)	$	57.4		$	57.4		$	59.2		$	31.9		$	32.4
Net interest income divided by average loans (E)		8.2	%		8.3	%		8.9	%		8.9	%		9.3	%
Net interest yield on cardmember loans (F)		9.5	%		9.6	%		10.3	%		10.0	%		10.2	%

Calculation based on 2010 and 2009 managed information (G):
Net interest income (H)	$	1,184		$	1,188		$	1,307		$	1,381		$	1,410
Average loans (billions)	$	57.4		$	57.5		$	59.3		$	60.9		$	61.8
Adjusted net interest income (C)	$	1,381		$	1,379		$	1,498		$	1,577		$	1,594
Adjusted average loans (billions) (D)	$	57.4		$	57.4		$	59.2		$	61.0		$	62.0
Net interest yield on cardmember loans (F)		9.5	%		9.6	%		10.3	%		10.3	%		10.2	%

______________________

(A) Beginning in the first quarter of 2010, the Company changed the manner in which it allocates interest expense and capital to its reportable operating segments. The change reflects modifications in allocation methodology that management believes to more accurately reflect the funding and capital characteristics of the Company's segments. The change to interest allocation impacted the consolidated net interest yield on cardmember loans. Accordingly, the net interest yields for periods prior to the first quarter of 2010 have been revised for this change.

(B) For periods ended on or prior to December 31, 2009, the Company's cardmember loans and related debt performance information on a GAAP basis was referred to as the "owned" basis presentation. The information presented on a GAAP basis for such periods includes only non-securitized cardmember loans that were included in the Company’s balance sheet. Effective January 1, 2010, the Company’s securitized portfolio of cardmember loans and related debt is also consolidated on its balance sheet upon the adoption of the new GAAP. Accordingly, beginning January 1, 2010, the GAAP basis presentation includes both securitized and non-securitized cardmember loans. Refer to page 19 for a discussion of GAAP basis information.

(C) Represents net interest income allocated to the Company's cardmember loans portfolio on a GAAP or managed basis, as applicable, in each case excluding the impact of card fees on loans and balance transfer fees attributable to the Company's cardmember loans.

(D) Represents average cardmember loans on a GAAP or managed basis, as applicable, in each case excluding the impact of deferred card fees, net of deferred direct acquisition costs of cardmember loans.

(F) Net interest yield on cardmember loans is a non-GAAP financial measure that represents the net spread earned on cardmember loans. Net interest yield on cardmember loans is computed by dividing adjusted net interest income by adjusted average loans, computed on an annualized basis. The calculation of net interest yield on cardmember loans includes interest that is deemed uncollectible. For all presentations of net interest yield on cardmember loans, reserves and net write-offs related to uncollectible interest are recorded through provisions for losses - cardmember loans; therefore, such reserves and net write-offs are not included in the net interest yield calculation.

(G) For periods ended on or prior to December 31, 2009, information presented is based on the Company’s historical non-GAAP, or “managed” basis presentation. Unlike the GAAP basis presentation, the information presented on a managed basis in such periods includes both the securitized and non-securitized cardmember loans. The adoption of new GAAP on January 1, 2010 resulted in accounting for both the Company's securitized and non-securitized cardmember loans in the consolidated financial statements. As a result, the Company's 2010 GAAP presentations and managed basis presentations prior to 2010 are generally comparable. Refer to page 19 for a discussion of managed basis information.

(H) For periods ended on or prior to December 31, 2009, the information presented includes the adjustments to the GAAP "owned" basis presentation for such periods attributable to securitization activity for interest income and interest expense to arrive at the non-GAAP "managed" basis information, which adjustments are set forth under the U.S. Card Services managed basis presentation on page 22.

(Preliminary)

U. S. Card Services and International Card Services

Net Interest Yield on Cardmember Loans

Appendix IV (A)

(millions)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009

USCS - Calculation based on 2010 and 2009 GAAP information (B):
Net interest income	$	1,124		$	1,111		$	1,221		$	621		$	649
Average loans (billions)	$	49.1		$	49.1		$	50.5		$	22.7		$	23.4
Adjusted net interest income (C)	$	1,150		$	1,145		$	1,246		$	537		$	558
Adjusted average loans (billions) (D)	$	49.2		$	49.2		$	50.5		$	22.8		$	23.5
Net interest income divided by average loans (E)		9.1	%		9.1	%		9.8	%		10.9	%		11.0	%
Net interest yield on cardmember loans (F)		9.3	%		9.3	%		10.0	%		9.4	%		9.4	%

USCS - Calculation based on 2010 and 2009 managed information (G):
Net interest income (H)	$	1,124		$	1,111		$	1,221		$	1,292		$	1,305
Average loans (billions)	$	49.1		$	49.1		$	50.5		$	51.8		$	52.9
Adjusted net interest income (C)	$	1,150		$	1,145		$	1,246		$	1,308		$	1,315
Adjusted average loans (billions) (D)	$	49.2		$	49.2		$	50.5		$	51.9		$	53.0
Net interest yield on cardmember loans (F)		9.3	%		9.3	%		10.0	%		10.0	%		9.8	%

ICS:
Net interest income	$	237		$	243		$	257		$	271		$	279
Average loans (billions)	$	8.3		$	8.3		$	8.8		$	9.0		$	8.9
Adjusted net interest income (C)	$	231		$	234		$	253		$	269		$	279
Adjusted average loans (billions) (D)	$	8.2		$	8.2		$	8.8		$	9.1		$	8.9
Net interest income divided by average loans (E)		11.3	%		11.7	%		11.8	%		11.9	%		12.4	%
Net interest yield on cardmember loans (F)		11.1	%		11.4	%		11.7	%		11.7	%		12.4	%

______________________

(A) Beginning in the first quarter of 2010, the Company changed the manner in which it allocates capital and related interest expense to its reportable operating segments to more accurately reflect the funding and capital characteristics of its segments. The change to interest allocation impacted the segments' net interest yield on cardmember loans. Accordingly, the net interest yields for periods prior to the first quarter of 2010 have been revised for this change.