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Section 1: 8-K (FORM 8-K OF AMERICAN EXPRESS COMPANY)



 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  June 20, 2018
 
 
  
 
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
 
 
New York
 
1-7657
 
13-4922250
(State or other jurisdiction
of incorporation or organization)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
 
 
 200 Vesey Street
 
 
  New York, New York
 
 10285
 (Address of principal executive offices)
 
 (Zip Code)
 
 
Registrant's telephone number, including area code: (212) 640-2000
 
 
 Not Applicable
 (Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
 

  

 
 
Item 7.01
Regulation FD Disclosure

 
 
The following information is furnished under Item 7.01 - Regulation FD Disclosure:

During the first quarter of 2018, we announced organizational changes that combined our U.S. and International consumer businesses into a global consumer services organization, and combined our merchant and network-related businesses, among other changes. Our financial disclosures will reflect these organizational changes starting in the second quarter of 2018, which is consistent with when our executives began to review financial information aligned to the new segments. Our new reportable operating segments are as follows:

§
Global Consumer Services Group (GCSG), which primarily issues a wide range of proprietary consumer cards globally. GCSG also provides services to consumers, including travel services and non-card financing products, and manages certain international joint ventures and our partnership agreements in China.

§
Global Merchant and Network Services (GMNS), which operates a global payments network that processes and settles card transactions, acquires merchants and provides multi-channel marketing programs and capabilities, services and data analytics, leveraging our global integrated network. GMNS enters into partnership agreements with third-party card issuers and acquirers, licensing the American Express brand and extending the reach of the global network. GMNS also manages loyalty coalition businesses in certain countries around the world and our reloadable prepaid and gift card businesses.

§
Global Commercial Services (GCS), which primarily issues a wide range of proprietary corporate and small business cards and provides payment and expense management services globally. In addition, GCS provides commercial financing products.

Certain preliminary financial and other information reflecting the realignment of our segments is attached to this report as Exhibit 99.1 and is incorporated herein by reference. Such information is being furnished in order to assist investors in understanding how our business segment results would historically have been presented had such results been reported to reflect the manner in which our business segments are managed effective for the second quarter of 2018. Such information does not represent a restatement of previously-issued consolidated financial statements, but rather represents a reclassification among our segments, and does not affect reported net income, earnings per share, total assets, stockholders' equity or regulatory capital for any of the previously reported periods.

EXHIBIT

99.1


 
-2-
 

 



 
SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 



 
 
 
 
 
AMERICAN EXPRESS COMPANY
(REGISTRANT)
 
 
 
By:
/s/ Tangela S. Richter
 
 
 
Name: Tangela S. Richter
 
 
 
Title: Corporate Secretary
 
 
 
 
 
 



Date:  June 20, 2018
 
 



 
-3-



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Section 2: EX-99.1 (EXHIBIT 99.1)

EXHIBIT 99.1
 
Global Consumer Services Group
 (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 
 
 

 
 
Q1'18
   
Q4'17
   
Q3'17
   
Q2'17
   
Q1'17
   
Q4'16
   
Q3'16
   
Q2'16
   
Q1'16
 
Non-interest revenues
 
$
3,491
   
$
3,535
   
$
3,361
   
$
3,345
   
$
3,137
   
$
3,215
   
$
3,146
   
$
3,373
   
$
3,259
 
Interest income
   
1,949
     
1,848
     
1,781
     
1,616
     
1,544
     
1,466
     
1,409
     
1,511
     
1,619
 
Interest expense
   
327
     
306
     
281
     
247
     
213
     
201
     
203
     
213
     
211
 
Net interest income
   
1,622
     
1,542
     
1,500
     
1,369
     
1,331
     
1,265
     
1,206
     
1,298
     
1,408
 
Total revenues net of interest expense
   
5,113
     
5,077
     
4,861
     
4,714
     
4,468
     
4,480
     
4,352
     
4,671
     
4,667
 
Provisions for losses
   
530
     
641
     
568
     
428
     
359
     
454
     
359
     
315
     
262
 
Total revenues net of interest expense after provisions for losses
   
4,583
     
4,436
     
4,293
     
4,286
     
4,109
     
4,026
     
3,993
     
4,356
     
4,405
 
Expenses
                                                                       
Marketing, business development, rewards, Card Member services
   
2,446
     
2,479
     
2,351
     
2,322
     
2,081
     
2,353
     
2,104
     
2,163
     
2,094
 
Salaries and employee benefits and other operating expenses
   
1,089
     
1,100
     
1,026
     
1,066
     
1,054
     
1,191
     
1,091
     
287
     
989
 
Total expenses
   
3,535
     
3,579
     
3,377
     
3,388
     
3,135
     
3,544
     
3,195
     
2,450
     
3,083
 
Pretax segment income
   
1,048
     
857
     
916
     
898
     
974
     
482
     
798
     
1,906
     
1,322
 
Income tax provision
   
222
     
233
     
236
     
283
     
301
     
100
     
261
     
654
     
454
 
Segment income
 
$
826
   
$
624
   
$
680
   
$
615
   
$
673
   
$
382
   
$
537
   
$
1,252
   
$
868
 
Effective tax rate
   
21.2
%
   
27.2
%
   
25.8
%
   
31.5
%
   
30.9
%
   
20.7
%
   
32.7
%
   
34.3
%
   
34.3
%
   
(Billions, except percentages and where indicated)
                                                                       
Proprietary card billed business (A)
                                                                       
US
 
$
86.0
   
$
91.0
   
$
83.7
   
$
84.8
   
$
77.5
   
$
84.2
   
$
78.6
   
$
93.4
   
$
89.0
 
Outside the United States
 
$
33.3
   
$
33.8
   
$
30.5
   
$
28.8
   
$
26.6
   
$
28.1
   
$
26.5
   
$
26.6
   
$
24.7
 
Total
 
$
119.3
   
$
124.8
   
$
114.2
   
$
113.6
   
$
104.1
   
$
112.3
   
$
105.1
   
$
120.0
   
$
113.7
 
Proprietary cards-in-force (millions) (B)
                                                                       
US
   
36.1
     
34.9
     
34.4
     
33.8
     
33.2
     
32.7
     
32.3
     
31.8
     
40.9
 
Outside the United States
   
16.2
     
15.8
     
15.7
     
15.5
     
15.3
     
15.1
     
14.9
     
15.0
     
14.8
 
Total
   
52.3
     
50.7
     
50.1
     
49.3
     
48.5
     
47.8
     
47.2
     
46.8
     
55.7
 
Proprietary basic cards-in-force (millions) (B)
                                                                       
US
   
25.8
     
25.0
     
24.6
     
24.2
     
23.7
     
23.3
     
22.9
     
22.6
     
28.8
 
Outside the United States
   
11.2
     
10.9
     
10.8
     
10.7
     
10.6
     
10.4
     
10.3
     
10.2
     
10.1
 
Total
   
37.0
     
35.9
     
35.4
     
34.9
     
34.3
     
33.7
     
33.2
     
32.8
     
38.9
 
 
                                                                       
Average proprietary basic Card Member spending (dollars)
     
US
 
$
3,371
   
$
3,672
   
$
3,433
   
$
3,538
   
$
3,297
   
$
3,643
   
$
3,452
   
$
3,417
   
$
3,092
 
Outside the United States
 
$
3,001
   
$
3,106
   
$
2,840
   
$
2,726
   
$
2,542
   
$
2,720
   
$
2,596
   
$
2,609
   
$
2,455
 
Total
 
$
3,259
   
$
3,499
   
$
3,251
   
$
3,289
   
$
3,064
   
$
3,358
   
$
3,186
   
$
3,197
   
$
2,927
 
 
                                                                       
Segment assets (C)
 
$
120.9
   
$
123.6
   
$
117.9
   
$
112.8
   
$
110.1
   
$
114.1
   
$
105.0
   
$
106.1
   
$
111.8
 
 
                                                                       
Card Member loans:
                                                                       
Total loans
                                                                       
US
 
$
52.7
   
$
53.7
   
$
49.3
   
$
48.3
   
$
46.7
   
$
48.8
   
$
44.9
   
$
44.6
   
$
42.4
 
Outside the United States
 
$
8.6
   
$
8.6
   
$
7.8
   
$
7.3
   
$
6.8
   
$
6.9
   
$
6.7
   
$
6.6
   
$
6.7
 
Total
 
$
61.3
   
$
62.3
   
$
57.1
   
$
55.6
   
$
53.5
   
$
55.7
   
$
51.6
   
$
51.2
   
$
49.1
 
 
                                                                       
Average loans
                                                                       
US
 
$
52.9
   
$
51.1
   
$
49.0
   
$
47.7
   
$
47.3
   
$
46.5
   
$
44.8
   
$
43.5
   
$
42.5
 
Outside the United States
 
$
8.7
   
$
8.1
   
$
7.5
   
$
7.1
   
$
6.9
   
$
6.8
   
$
6.7
   
$
6.8
   
$
6.8
 
Total
 
$
61.6
   
$
59.2
   
$
56.5
   
$
54.8
   
$
54.2
   
$
53.3
   
$
51.5
   
$
50.3
   
$
49.3
 
 
                                                                       
Lending Credit Metrics
                                                                       
US
                                                                       
Net write-off rate (principal only) (D)
   
2.0
%
   
1.9
%
   
1.8
%
   
1.8
%
   
1.7
%
   
1.5
%
   
1.6
%
   
1.5
%
   
1.5
%
Net write-off rate (principal, interest and fees) (D)
   
2.4
%
   
2.2
%
   
2.1
%
   
2.1
%
   
2.0
%
   
1.8
%
   
1.9
%
   
1.7
%
   
1.7
%
30+ days past due loans as a % of total
   
1.4
%
   
1.3
%
   
1.3
%
   
1.1
%
   
1.2
%
   
1.1
%
   
1.1
%
   
1.1
%
   
1.0
%
Outside the United States
                                                                       
Net write-off rate (principal only) (D)
   
2.1
%
   
2.0
%
   
2.2
%
   
2.0
%
   
2.0
%
   
2.0
%
   
2.1
%
   
2.1
%
   
1.9
%
Net write-off rate (principal, interest and fees) (D)
   
2.6
%
   
2.4
%
   
2.7
%
   
2.5
%
   
2.5
%
   
2.5
%
   
2.6
%
   
2.5
%
   
2.4
%
30+ days past due loans as a % of total
   
1.6
%
   
1.4
%
   
1.6
%
   
1.7
%
   
1.7
%
   
1.6
%
   
1.7
%
   
1.7
%
   
1.8
%
Total
                                                                       
Net write-off rate (principal only) (D)
   
2.0
%
   
1.9
%
   
1.8
%
   
1.8
%
   
1.7
%
   
1.6
%
   
1.7
%
   
1.5
%
   
1.5
%
Net write-off rate (principal, interest and fees) (D)
   
2.4
%
   
2.3
%
   
2.2
%
   
2.1
%
   
2.1
%
   
1.9
%
   
2.0
%
   
1.8
%
   
1.8
%
30+ days past due loans as a % of total
   
1.4
%
   
1.3
%
   
1.3
%
   
1.2
%
   
1.3
%
   
1.2
%
   
1.2
%
   
1.1
%
   
1.1
%
 
                                                                       
Net interest income divided by average Card Member loans (E)
   
10.5
%
   
10.4
%
   
10.6
%
   
10.0
%
   
9.8
%
   
9.5
%
   
9.4
%
   
9.0
%
   
9.3
%
Net interest yield on average Card Member loans (E)
   
10.8
%
   
10.5
%
   
10.7
%
   
10.2
%
   
10.1
%
   
9.7
%
   
9.7
%
   
9.3
%
   
9.6
%
US
   
10.7
%
   
10.5
%
   
10.6
%
   
10.1
%
   
10.0
%
   
9.5
%
   
9.4
%
   
9.1
%
   
9.4
%
Outside the United States
   
11.0
%
   
10.8
%
   
11.6
%
   
11.2
%
   
11.1
%
   
11.0
%
   
11.2
%
   
10.8
%
   
10.8
%
 
                                                                       
Card Member receivables:
                                                                       
US
 
$
11.7
   
$
13.1
   
$
11.2
   
$
11.3
   
$
10.9
   
$
12.3
   
$
10.1
   
$
10.6
   
$
10.3
 
Outside the United States
 
$
7.0
   
$
7.8
   
$
6.5
   
$
6.0
   
$
5.6
   
$
6.0
   
$
5.6
   
$
5.6
   
$
5.6
 
Total receivables
 
$
18.7
   
$
20.9
   
$
17.7
   
$
17.3
   
$
16.5
   
$
18.3
   
$
15.7
   
$
16.2
   
$
15.9
 
Credit Metrics
                                                                       
US
                                                                       
Net write-off rate (principal only) (D)
   
1.3
%
   
1.3
%
   
1.2
%
   
1.2
%
   
1.5
%
   
1.3
%
   
1.1
%
   
1.3
%
   
1.8
%
Net write-off rate (principal and fees) (D)
   
1.5
%
   
1.4
%
   
1.3
%
   
1.4
%
   
1.7
%
   
1.5
%
   
1.3
%
   
1.6
%
   
2.0
%
30+ days past due loans as a % of total
   
1.3
%
   
1.1
%
   
1.2
%
   
1.1
%
   
1.3
%
   
1.2
%
   
1.4
%
   
1.2
%
   
1.4
%
Outside the United States
                                                                       
Net write-off rate (principal only) (D)
   
2.0
%
   
1.8
%
   
2.2
%
   
1.9
%
   
2.1
%
   
1.8
%
   
2.0
%
   
2.2
%
   
2.2
%
Net write-off rate (principal and fees) (D)
   
2.2
%
   
1.9
%
   
2.4
%
   
2.0
%
   
2.3
%
   
1.9
%
   
2.2
%
   
2.3
%
   
2.4
%
30+ days past due as a % of total
   
1.5
%
   
1.3
%
   
1.4
%
   
1.4
%
   
1.5
%
   
1.3
%
   
1.5
%
   
1.4
%
   
1.5
%
Total
                                                                       
Net write-off rate (principal only) (D)
   
1.6
%
   
1.5
%
   
1.5
%
   
1.5
%
   
1.7
%
   
1.4
%
   
1.5
%
   
1.6
%
   
1.9
%
Net write-off rate (principal and fees) (D)
   
1.7
%
   
1.6
%
   
1.7
%
   
1.6
%
   
1.9
%
   
1.6
%
   
1.6
%
   
1.8
%
   
2.1
%
30+ days past due as a % of total
   
1.4
%
   
1.2
%
   
1.3
%
   
1.2
%
   
1.3
%
   
1.2
%
   
1.4
%
   
1.3
%
   
1.4
%

 
 
Please see Appendix V for footnote references


-1-


 


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

 
 
Q1'18
   
Q4'17
   
Q3'17
   
Q2'17
   
Q1'17
   
Q4'16
   
Q3'16
   
Q2'16
   
Q1'16
 
Non-interest revenues
 
$
2,838
   
$
2,866
   
$
2,734
   
$
2,738
   
$
2,604
   
$
2,654
   
$
2,573
   
$
2,635
   
$
2,511
 
Interest income
   
377
     
357
     
351
     
334
     
319
     
296
     
282
     
310
     
321
 
Interest expense
   
171
     
168
     
159
     
145
     
123
     
120
     
117
     
123
     
112
 
Net interest income
   
206
     
189
     
192
     
189
     
196
     
176
     
165
     
187
     
209
 
Total revenues net of interest expense
   
3,044
     
3,055
     
2,926
     
2,927
     
2,800
     
2,830
     
2,738
     
2,822
     
2,720
 
Provisions for losses
   
240
     
187
     
195
     
152
     
209
     
170
     
135
     
140
     
159
 
Total revenues net of interest expense after provisions for losses
   
2,804
     
2,868
     
2,731
     
2,775
     
2,591
     
2,660
     
2,603
     
2,682
     
2,561
 
Expenses (C)
                                                                       
Marketing, business development, rewards, Card Member services
   
1,374
     
1,362
     
1,312
     
1,347
     
1,290
     
1,383
     
1,165
     
1,213
     
1,105
 
Salaries and employee benefits and other operating expenses
   
722
     
743
     
685
     
692
     
691
     
763
     
692
     
551
     
701
 
Total expenses
   
2,096
     
2,105
     
1,997
     
2,039
     
1,981
     
2,146
     
1,857
     
1,764
     
1,806
 
Pretax segment income
   
708
     
763
     
734
     
736
     
610
     
514
     
746
     
918
     
755
 
Income tax provision
   
162
     
221
     
229
     
259
     
205
     
152
     
270
     
337
     
273
 
Segment income
 
$
546
   
$
542
   
$
505
   
$
477
   
$
405
   
$
362
   
$
476
   
$
581
   
$
482
 
Effective tax rate
   
22.9
%
   
29.0
%
   
31.2
%
   
35.2
%
   
33.6
%
   
29.6
%
   
36.2
%
   
36.7
%
   
36.2
%
   
(Billions, except percentages and where indicated)
                                                                       
Proprietary card billed business (A)
 
$
115.7
   
$
116.6
   
$
109.7
   
$
109.0
   
$
102.8
   
$
105.1
   
$
100.1
   
$
104.3
   
$
98.5
 
Proprietary cards-in-force (millions) (B)
   
14.1
     
14.0
     
13.9
     
13.8
     
13.7
     
13.6
     
13.6
     
13.4
     
15.2
 
Average basic Card Member spending (dollars)
 
$
8,233
   
$
8,356
   
$
7,907
   
$
7,920
   
$
7,533
   
$
7,729
   
$
7,386
   
$
7,060
   
$
6,509
 
 
                                                                       
Segment assets (C)
 
$
52.1
   
$
49.1
   
$
49.3
   
$
47.3
   
$
46.0
   
$
43.3
   
$
43.3
   
$
42.6
   
$
43.8
 
Card Member loans
 
$
11.5
   
$
11.1
   
$
10.7
   
$
10.4
   
$
10.0
   
$
9.5
   
$
9.1
   
$
8.7
   
$
8.3
 
Card Member receivables
 
$
35.5
   
$
33.1
   
$
33.8
   
$
32.1
   
$
31.2
   
$
29.0
   
$
29.6
   
$
29.1
   
$
28.6
 
 
                                                                       
Card Member loans (F):
                                                                       
Total loans - Global Small Business Services (GSBS)
 
$
11.4
   
$
11.0
   
$
10.7
   
$
10.3
   
$
10.0
   
$
9.5
   
$
9.0
   
$
8.6
   
$
8.3
 
30+ days past due as a % of total - GSBS
   
1.3
%
   
1.2
%
   
1.1
%
   
1.1
%
   
1.2
%
   
1.1
%
   
1.1
%
   
1.1
%
   
1.0
%
Average loans - GSBS
 
$
11.1
   
$
10.9
   
$
10.5
   
$
10.1
   
$
9.6
   
$
9.3
   
$
8.8
   
$
8.5
   
$
8.1
 
Net write-off rate (principal only) - GSBS (D)
   
1.6
%
   
1.6
%
   
1.6
%
   
1.5
%
   
1.6
%
   
1.4
%
   
1.5
%
   
1.3
%
   
1.4
%
Net write-off rate (principal, interest and fees) - GSBS (D)
   
1.9
%
   
1.9
%
   
1.9
%
   
1.8
%
   
1.8
%
   
1.7
%
   
1.8
%
   
1.6
%
   
1.6
%
   
Net interest income divided by average Card Member loans (E)
   
7.4
%
   
6.9
%
   
7.3
%
   
7.4
%
   
8.1
%
   
7.6
%
   
7.5
%
   
7.5
%
   
8.1
%
Net interest yield on average Card Member loans (E)
   
10.7
%
   
10.4
%
   
10.7
%
   
10.8
%
   
11.0
%
   
10.5
%
   
10.5
%
   
10.2
%
   
10.5
%
   
Card Member receivables:
                                                                       
Total receivables - Global Commercial Payments (GCP) (G)
 
$
19.3
   
$
17.0
   
$
17.9
   
$
16.9
   
$
16.6
   
$
14.8
   
$
15.8
   
$
15.3
   
$
15.4
 
90+ days past billing as a % of total - GCP
   
0.8
%
   
0.9
%
   
0.9
%
   
0.8
%
   
0.7
%
   
0.9
%
   
0.8
%
   
0.7
%
   
0.7
%
Net loss ratio (as a % of charge volume) - GCP
   
0.10
%
   
0.11
%
   
0.09
%
   
0.10
%
   
0.11
%
   
0.10
%
   
0.11
%
   
0.09
%
   
0.08
%
Total receivables - GSBS
 
$
16.2
   
$
16.1
   
$
15.9
   
$
15.2
   
$
14.6
   
$
14.3
   
$
13.8
   
$
13.7
   
$
13.2
 
30+ days past due as a % of total - GSBS
   
1.8
%
   
1.6
%
   
1.4
%
   
1.4
%
   
1.6
%
   
1.6
%
   
1.5
%
   
1.4
%
   
1.6
%
Net write-off rate (principal only) - GSBS (D)
   
1.7
%
   
1.5
%
   
1.5
%
   
1.6
%
   
1.8
%
   
1.2
%
   
1.3
%
   
1.6
%
   
1.8
%
Net write-off rate (principal and fees) - GSBS (D)
   
1.9
%
   
1.7
%
   
1.7
%
   
1.8
%
   
2.0
%
   
1.4
%
   
1.5
%
   
1.9
%
   
2.1
%
 
                                                                       

 
Please see Appendix V for footnote references

-2-



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

 
 
Q1'18
   
Q4'17
   
Q3'17
   
Q2'17
   
Q1'17
   
Q4'16
   
Q3'16
   
Q2'16
   
Q1'16
 
Non-interest revenues
 
$
1,532
   
$
1,554
   
$
1,491
   
$
1,518
   
$
1,462
   
$
1,523
   
$
1,478
   
$
1,575
   
$
1,517
 
Interest income
   
9
     
10
     
8
     
9
     
15
     
10
     
9
     
5
     
13
 
Interest expense
   
(59
)
   
(55
)
   
(48
)
   
(47
)
   
(38
)
   
(31
)
   
(32
)
   
(36
)
   
(34
)
Net interest income
   
68
     
65
     
56
     
56
     
53
     
41
     
41
     
41
     
47
 
Total revenues net of interest expense
   
1,600
     
1,619
     
1,547
     
1,574
     
1,515
     
1,564
     
1,519
     
1,616
     
1,564
 
Provisions for losses
   
5
     
4
     
9
     
1
     
2
     
2
     
10
     
(2
)
   
14
 
Total revenues net of interest expense after provisions for losses
   
1,595
     
1,615
     
1,538
     
1,573
     
1,513
     
1,562
     
1,509
     
1,618
     
1,550
 
Expenses
                                                                       
Marketing, business development, rewards, Card Member services
   
267
     
332
     
292
     
314
     
289
     
422
     
361
     
397
     
369
 
Salaries and employee benefits and other operating expenses
   
620
     
617
     
685
     
515
     
550
     
606
     
548
     
573
     
572
 
Total expenses
   
887
     
949
     
977
     
829
     
839
     
1,028
     
909
     
970
     
941
 
Pretax segment income
   
708
     
666
     
561
     
744
     
674
     
534
     
600
     
648
     
609
 
Income tax provision
   
192
     
207
     
141
     
268
     
241
     
175
     
220
     
240
     
226
 
Segment income
 
$
516
   
$
459
   
$
420
   
$
476
   
$
433
   
$
359
   
$
380
   
$
408
   
$
383
 
Effective tax rate
   
27.1
%
   
31.1
%
   
25.1
%
   
36.0
%
   
35.8
%
   
32.8
%
   
36.7
%
   
37.0
%
   
37.1
%
 
                                                                       
Loyalty Coalition Revenue
 
$
111
   
$
121
   
$
115
   
$
114
   
$
102
   
$
105
   
$
106
   
$
104
   
$
94
 
   
(Billions, except percentages and where indicated)
                                                                       
   
Average discount rate (H)
   
2.37
%
   
2.37
%
   
2.40
%
   
2.42
%
   
2.43
%
   
2.42
%
   
2.45
%
   
2.41
%
   
2.42
%
Segment assets (C)
 
$
30.9
   
$
30.5
   
$
27.8
   
$
26.7
   
$
25.9
   
$
25.8
   
$
24.3
   
$
25.2
   
$
25.3
 

 
Please see Appendix V for footnote references

-3-





American Express Company *
 (Preliminary)
Appendix I
Consolidated Statements of Income
 
(Millions, except percentages and per share amounts)
 

 
 
Q1'18
   
Q4'17
   
Q3'17
   
Q2'17
   
Q1'17
   
Q4'16
   
Q3'16
   
Q2'16
   
Q1'16
 
Non-interest revenues
                                                     
Discount revenue
 
$
5,889
   
$
6,060
   
$
5,700
   
$
5,743
   
$
5,387
   
$
5,640
   
$
5,408
   
$
5,801
   
$
5,528
 
Net card fees
   
830
     
785
     
786
     
771
     
748
     
725
     
747
     
715
     
699
 
Other fees and commissions
   
781
     
778
     
755
     
746
     
711
     
663
     
686
     
691
     
678
 
Other
   
377
     
345
     
372
     
379
     
361
     
421
     
409
     
421
     
427
 
Total non-interest revenues
   
7,877
     
7,968
     
7,613
     
7,639
     
7,207
     
7,449
     
7,250
     
7,628
     
7,332
 
Interest income
                                                                       
Interest on loans
   
2,326
     
2,205
     
2,131