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Section 1: 8-K (8-K)

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0000004962false00000049622019-10-182019-10-18


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): October 18, 2019
 
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
   
New York 1-7657 13-4922250
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
200 Vesey Street,
New York, New York 10285
(Address of principal executive offices and zip code)
(212) 640-2000
(Registrant's telephone number, including area code)

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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Shares (par value $0.20 per Share) AXP New York Stock Exchange
 
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 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure

The following information is furnished under Item 2.02 – Results of Operations and Financial Condition and Item 7.01 – Regulation FD Disclosure:
On October 18, 2019, American Express Company (the “Company”) issued a press release regarding its financial results for the third quarter of 2019. A copy of such press release is attached to this report as Exhibit 99.1. The Company also made available additional information relating to the financial results for the third quarter of 2019. Such additional financial information is attached to this report as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

ExhibitDescription
99.1
99.2
104The cover page of this Current Report on Form 8-K, formatted as inline XBRL.


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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: October 18, 2019
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Section 2: EX-99.1 (EX-99.1 OF AMERICAN EXPRESS COMPANY)

Document

EXHIBIT 99.1

NEWS RELEASENEWS RELEASENEWS RELEASENEWS RELEASE
400446721_axplogo1.jpg
FOR IMMEDIATE RELEASE
Media Contacts:
Marina H. Norville, marina.h.norville@aexp.com, +1.212.640.2832
Andrew R. Johnson, andrew.r.johnson@aexp.com , +1.212.640.8610

Investors/Analysts Contacts:
Rosie C. Perez, rosario.c.perez@aexp.com, +1.212.640.5574
Melanie L. Michel, melanie.l.michel@aexp.com, +1.212.640.5574

AMERICAN EXPRESS REPORTS THIRD-QUARTER EARNINGS PER SHARE OF $2.08
STRONG REVENUE GROWTH REFLECTS HIGHER CARD MEMBER SPENDING, NET INTEREST
INCOME AND CARD FEES
(Millions, except percentages and per share amounts)

Quarters Ended
September 30,
Percentage Inc/(Dec)Nine Months Ended
September 30,
Percentage Inc/(Dec)
2019201820192018
Total Revenues Net of Interest Expense$10,989  $10,144  8$32,191  $29,864  8
Net Income$1,755  $1,654  6$5,066  $4,911  3
Diluted Earnings Per Common Share 1
$2.08  $1.88  11$5.95  $5.59  6
Adjusted Diluted Earnings Per Common Share 2
$2.08  $1.88  11$6.16  $5.59  10
Average Diluted Common Shares Outstanding827  860  (4)835  861  (3)

New York – October 18, 2019 - American Express Company (NYSE: AXP) today reported third-quarter net income of $1.8 billion, up 6 percent from $1.7 billion a year ago. Diluted earnings per share was $2.08, up 11 percent from $1.88 per share a year ago.

Third-quarter consolidated total revenues net of interest expense were $11.0 billion, up 8 percent from $10.1 billion a year ago. Excluding the impact of foreign exchange rates, adjusted revenues net of interest expense grew 9 percent.3 The increases reflected higher Card Member spending, net interest income and card fees.

Credit indicators remained strong and consolidated provisions for losses were $879 million, up 8 percent from $817 million a year ago. The increase reflected slightly higher net write-offs and delinquencies.



1


Consolidated expenses were $7.8 billion, up 9 percent from $7.2 billion a year ago. The rise reflected, in part, growth in rewards and other customer engagement costs driven by increased Card Member spending and continued investments in cobrand partnerships. Operating expenses were up 5 percent from a year ago, driven by salaries and employee benefits.4

The consolidated effective tax rate was 23 percent, up from 22 percent a year ago.

"Our results continued the steady performance we’ve been delivering for several years now, marking the 9th straight quarter of FX-adjusted revenue growth of at least 8 percent," said Steve Squeri, chairman and chief executive officer. "I'm pleased with the breadth and consistency of our revenue growth, driven by a well-balanced mix of Card Member spending, loans and membership revenues from our fee-based products, which grew 19 percent and exceeded $1 billion this quarter for the first time.

"The trends we saw in the business this quarter continue to be consistent with an economy that continues to grow, albeit at a more modest pace than last year. FX-adjusted proprietary Card Member spending rose 7 percent, led by strong consumer growth in both the U.S. and International markets. Our loan portfolio grew 9 percent, with over 60 percent of that growth again coming from existing Card Members. Credit quality metrics remained at industry-leading levels.

"The disciplined approach we’ve been taking for the past few years to refresh our products continues to translate into increased engagement with existing customers and a redefinition of membership with new benefits, broader access to lifestyle experiences and more customized rewards. Card Members appreciate the added value we are providing, which is helping us earn a greater share of their overall spending and borrowing, while also attracting 2.9 million new proprietary Card Members to American Express this quarter.

"I feel very good about our ability to continue delivering high levels of revenue growth and double-digit EPS growth. We are reaffirming our 2019 EPS guidance range and expect revenue growth of 8 to 10 percent for the fourth quarter."5

Global Consumer Services Group reported third-quarter net income of $857 million, up 10 percent from $779 million a year ago.

Total revenues net of interest expense were $6.0 billion, up 11 percent from $5.4 billion a year ago. The rise primarily reflected higher net interest income, Card Member spending and card fees.

Provisions for losses totaled $653 million, up 7 percent from $609 million a year ago. The increase reflected slightly higher net lending write-offs and delinquencies.

Total expenses were $4.3 billion, up 11 percent from $3.8 billion a year ago. The rise reflected, in part, growth in rewards and other customer engagement costs driven by increased Card Member spending and continued investments in cobrand partnerships.

The effective tax rate was 21 percent, up from 20 percent a year ago.

Global Commercial Services reported third-quarter net income of $629 million, up 4 percent from $606 million a year ago.

Total revenues net of interest expense were $3.4 billion, up 7 percent from $3.2 billion a year ago. The increase primarily reflected higher Card Member spending.

Provisions for losses totaled $222 million, up 10 percent from $201 million a year ago. The increase reflected slightly higher delinquencies and net write-offs.



2


Total expenses were $2.4 billion, up 8 percent from $2.2 billion a year ago. The rise reflected, in part, growth in rewards and other customer engagement costs driven by increased Card Member spending.

The effective tax rate was 21 percent, down from 22 percent a year ago.

Global Merchant and Network Services reported third-quarter net income of $600 million, up 3 percent from $580 million a year ago.

Total revenues net of interest expense were $1.7 billion, up 5 percent from $1.6 billion a year ago. The rise primarily reflected increased Card Member spending.

Total expenses were $855 million, up 6 percent from $807 million a year ago. The rise primarily reflected network partner payments and other business development costs.

The effective tax rate was 25 percent, up from 24 percent a year ago.

Corporate and Other reported third-quarter net loss of $331 million, compared with net loss of $311 million a year ago.


________________________________
1Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards and other items of $11 million and $13 million for the three months ended September 30, 2019 and 2018, respectively, and $35 million and $38 million for the nine months ended September 30, 2019 and 2018, respectively, and (ii) dividends on preferred shares of $21 million and $20 million for the three months ended September 30, 2019 and 2018, respectively, and $61 million for both the nine months ended September 30, 2019 and 2018.
2Adjusted diluted earnings per common share, a non-GAAP measure, excludes the impact of a litigation-related charge in Q1‘19. See Appendix I for a reconciliation to EPS on a GAAP basis. Management believes adjusted EPS is useful in evaluating the ongoing operating performance of the company.
3As reported in this release, FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into U.S. dollars (e.g., assumes the foreign exchange rates used to determine results for the three months ended September 30, 2019 apply to the period(s) against which such results are being compared). Management believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the company’s performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates. FX-adjusted revenues constitute non-GAAP measures.
4Operating expenses represent salaries and employee benefits, professional services, occupancy and equipment, and other expenses.
5The company's 2019 EPS guidance on a GAAP basis, which includes the impact of a litigation-related charge in Q1'19, is between $7.64 and $8.14. The 2019 adjusted EPS guidance, a non-GAAP measure, is between $7.85 and $8.35 and excludes the litigation-related charge and any contingencies that may occur in the fourth quarter. See Appendix I for a reconciliation. Management believes the presentation of adjusted EPS guidance is useful in evaluating the ongoing operating performance of the company.
###

About American Express
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

Key links to products, services and corporate responsibility information: charge and credit cards, business credit cards, travel services, gift cards, prepaid cards, merchant services, Accertify, InAuth, corporate card, business travel, and corporate responsibility.



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This earnings release should be read in conjunction with the company’s statistical tables for the third quarter 2019, available on the American Express website at http://ir.americanexpress.com and in a Form 8-K furnished today with the Securities and Exchange Commission.

An investor conference call will be held at 8:30 a.m. (ET) today to discuss third-quarter earnings results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned American Express Investor Relations website. A replay of the conference call will be available later today at the same website address.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address American Express Company’s current expectations regarding business and financial performance, including management’s outlook for 2019, among other matters, contain words such as “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:

the company’s ability to achieve its 2019 earnings per common share (EPS) outlook and fourth quarter 2019 EPS consistent with expectations and grow earnings per share in the future, which will depend in part on revenue growth, credit performance and the effective tax rate remaining consistent with current expectations, the company’s ability to control operating expense growth and generate operating leverage, and the company’s ability to continue executing its share repurchase program; any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs as well as the following: issues impacting brand perceptions and the company’s reputation; the impact of any future contingencies, including, but not limited to, restructurings, impairments, changes in reserves, legal costs, the imposition of fines or civil money penalties and increases in Card Member reimbursements; the amount and efficacy of investments in customer engagement; changes in interest rates beyond current expectations; a greater impact from new or renegotiated cobrand agreements than expected, which could be affected by spending volumes and customer acquisition; and the impact of regulation and litigation, which could affect the profitability of the company’s business activities, limit the company’s ability to pursue business opportunities, require changes to business practices or alter the company’s relationships with partners, merchants and Card Members;

the ability of the company to achieve its fourth quarter 2019 revenue growth outlook, which could be impacted by, among other things, weakening economic conditions in the United States or internationally; a decline in consumer confidence impacting the willingness and ability of Card Members to sustain and grow spending and revolve balances; a slowdown in corporate spending; growth in Card Member loans and the yield on Card Member loans not remaining consistent with current expectations; the average discount rate changing by a greater amount than expected; the strengthening of the U.S. dollar beyond expectations; Card Members continuing to be attracted to the company’s premium card products; and the company’s inability to address competitive pressures and implement its strategies and business initiatives, including within the premium consumer segment, commercial payments, the global network and digital environment;

changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure that may impact the prices charged to merchants that accept American Express cards, competition for new and existing cobrand relationships, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;

the growth of provisions for losses being higher or lower than current expectations, which will depend in part on changes in the level of loan and receivable balances and delinquency and write-off rates; the impact of new accounting guidance and the Current Expected Credit Loss methodology; newer vintages performing as expected; credit performance of non-card lending products; collections capabilities and recoveries of previously written-off loans and receivables; and macroeconomic factors like unemployment rates and the volume of bankruptcies;




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cost of Card Member services growing inconsistently from expectations, which will depend in part on an inability to cost effectively enhance card products and services; the degree of interest of Card Members in the value proposition offered by the company; increasing competition, which could result in additional benefits and services; the company’s ability to enhance card products and services to make them attractive to Card Members; and the pace and cost of the expansion of the company’s global lounge collection;




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the company’s ability to control operating expense growth, which could be impacted by increases in costs, such as cyber, fraud or compliance expenses or consulting, legal and other professional fees, including as a result of increased litigation or internal and regulatory reviews; higher than expected employee levels; an inability to innovate efficient channels of customer interactions, such as chat supported by artificial intelligence, or customer acquisition; the impact of changes in foreign currency exchange rates on costs; the payment of civil money penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; impairments of goodwill or other assets; management’s decision to increase or decrease spending in such areas as technology, business and product development, sales force, premium servicing and digital capabilities; and the level of M&A activity and related expenses;

changes affecting the company’s plans regarding the return of capital to shareholders through dividends and share repurchases, which will depend on factors such as capital levels and regulatory capital ratios; changes in the stress testing and capital planning process and approval of the company’s capital plans; the amount of capital required to support asset growth; the amount the company spends on acquisitions of companies; the company’s results of operations and financial condition; and the economic environment and market conditions in any given period;

the possibility that the company will not execute on its plans to expand merchant coverage, which will depend in part on the success of the company, OptBlue merchant acquirers and GNS partners in signing merchants to accept American Express, which could be impacted by the value propositions offered by the company to merchants and merchant acquirers for card acceptance, as well as the awareness and willingness of Card Members to use American Express cards at merchants and of those merchants who agree to accept American Express cards to do so;

a failure in or breach of the company’s operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt its operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;

legal and regulatory developments, which could require the company to make fundamental changes to many of its business practices, including its ability to continue certain cobrand and agent relationships in their current form in the EU; exert further pressure on the average discount rate and GNS volumes; result in increased costs related to regulatory oversight, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or civil money penalties; materially affect capital or liquidity requirements, results of operations, or ability to pay dividends or repurchase stock; or result in harm to the American Express brand; and

factors beyond the company’s control such as changes in global economic and business conditions, consumer and business spending generally, the availability and cost of capital, unemployment rates, geopolitical conditions, Brexit, trade policies, foreign currency rates and interest rates, as well as fire, power loss, disruptions in telecommunications, severe weather conditions, natural and man-made disasters, health pandemics or terrorism, any of which could significantly affect demand for and spending on American Express cards, delinquency rates, loan and receivable balances and other aspects of the company’s business and its results of operations or disrupt the company’s global network systems and ability to process transactions.

A further description of these uncertainties and other risks can be found in American Express Company’s Annual Report on Form 10-K for the year ended December 31, 2018, the company’s Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2019 and the company’s other reports filed with the Securities and Exchange Commission.




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American Express Company (Preliminary)
Appendix I
Reconciliations of Adjustments

Q3'19 YTDQ3’18 YTDPercentage Inc/(Dec)
Diluted earnings per common share$5.95  $5.59  6
Q1’19 litigation-related charge (pre-tax)
0.27
Tax impact of litigation-related charge
(0.06)
Net Impact of Q1’19 litigation-related charge0.21
Adjusted diluted earnings per common share$6.16  $5.59  10


2019 EPS Range
GAAP EPS Outlook$7.64  $8.14  
Q1’19 litigation-related charge (pre-tax)0.270.27
Tax impact of litigation-related charge(0.06)(0.06)
Net Impact of Q1’19 litigation-related charge0.210.21
Adjusted EPS Outlook$7.85  $8.35  





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Section 3: EX-99.2 (EX-99.2 OF AMERICAN EXPRESS COMPANY)

Document

EXHIBIT 99.2
American Express Company(Preliminary)
Consolidated Statements of Income
(Millions, except percentages and per share amounts)
Q3'19Q2'19Q1'19Q4'18Q3'18YOY % changeYTD'19YTD'18YOY % change
Non-interest revenues
Discount revenue$6,566  $6,577  $6,195  $6,457  $6,181   $19,338  $18,264   
Net card fees1,033  988  944  897  870  19  2,965  2,544  17  
Other fees and commissions825  837  803  788  798   2,465  2,365   
Other362  362  363  300  334   1,087  1,060   
Total non-interest revenues8,786  8,764  8,305  8,442  8,183   25,855  24,233   
Interest income
Interest on loans2,885  2,764  2,725  2,674  2,554  13  8,374  7,267  15  
Interest and dividends on investment securities53  52  33  35  35  51  138  83  66  
Deposits with banks and other142  149  196  157  149  (5) 487  390  25  
Total interest income3,080  2,965  2,954  2,866  2,738  12  8,999  7,740  16  
Interest expense
Deposits401  406  399  377  340  18  1,206  910  33  
Long-term debt and other476  485  496  457  437   1,457  1,199  22  
Total interest expense877  891  895  834  777  13  2,663  2,109  26  
Net interest income2,203  2,074  2,059  2,032  1,961  12  6,336  5,631  13  
Total revenues net of interest expense10,989  10,838  10,364  10,474  10,144   32,191  29,864   
Provisions for losses
Charge card238  224  253  236  214  11  715  701   
Card Member loans604  603  525  679  560   1,732  1,587   
Other37  34  31  39  43  (14) 102  110  (7) 
Total provisions for losses879  861  809  954  817   2,549  2,398   
Total revenues net of interest expense after provisions for losses10,110  9,977  9,555  9,520  9,327   29,642  27,466   
Expenses
Marketing and business development1,818  1,773  1,573  1,820  1,642  11  5,164  4,650  11  
Card Member rewards2,614  2,652  2,451  2,516  2,400   7,717  7,180   
Card Member services558  563  550  495  457  22  1,671  1,282  30  
Salaries and employee benefits1,499  1,367  1,422  1,294  1,350  11  4,288  3,956   
Professional services491  512  494  671  489  —  1,497  1,454   
Occupancy and equipment544  517  508  540  489  11  1,569  1,493   
Other, net320  374  599  353  382  (16) 1,293  1,160  11  
Total expenses7,844  7,758  7,597  7,689  7,209   23,199  21,175  10  
Pretax income2,266  2,219  1,958  1,831  2,118   6,443  6,291   
Income tax provision (benefit)511  458  408  (179) 464  10  1,377  1,380  —  
Net income$1,755  $1,761  $1,550  $2,010  $1,654   $5,066  $4,911   
Net income attributable to common shareholders (A)$1,723  $1,729  $1,518  $1,975  $1,621   $4,970  $4,812   
Effective tax rate22.6 %20.6 %20.8 %(9.8)%21.9 %21.4 %21.9 %
Earnings Per Common Share
Basic
Net income attributable to common shareholders2.09  2.07  1.81  2.33  1.89  11  5.97  5.60   
Average common shares outstanding825  834  841  850  858  (4) 833  859  (3) 
Diluted
Net income attributable to common shareholders 2.08  2.07  1.80  2.32  1.88  11  5.95  5.59   
Average common shares outstanding827  836  843  852  860  (4) 835  861  (3) 
Cash dividends declared per common share 0.43  0.39  0.39  0.39  0.39  10  1.21  1.09  11  






























































See Appendix IV for footnote references.
1


American Express Company(Preliminary)
Consolidated Balance Sheets and Related Statistical Information 
(Billions, except percentages, per share amounts and where indicated) 

 Q3'19Q2'19Q1'19Q4'18Q3'18YOY % change
Assets      
Cash & cash equivalents$24  $27  $33  $27  $30  (20) 
Card Member receivables, less reserves56  58  56  55  55   
Card Member loans, less reserves81  81  79  80  76   
Investment securities     33  
Other (B)25  23  23  22  22  14  
Total assets$194  $198  $197  $189  $189   
Liabilities and Shareholders' Equity      
Customer deposits$73  $73  $73  $70  $69   
Short-term borrowings     50  
Long-term debt58  58  58  58  55   
Other (B)37  41  42  36  42  (12) 
Total liabilities171  175  175  167  168   
Shareholders' Equity23  23  22  22  21  10  
Total liabilities and shareholders' equity$194  $198  $197  $189  $189   
Return on average equity (C)31.5 %31.6 %31.9 %33.5 %18.1 %
Return on average common equity (C)33.2 %33.4 %33.7 %35.6 %19.0 %
Book value per common share (dollars)$26.12  $25.84  $24.65  $24.45  $23.27  12  



























See Appendix IV for footnote references.
2


American Express Company(Preliminary)
Consolidated Capital
 
 Q3'19Q2'19Q1'19Q4'18Q3'18
Shares Outstanding (in millions) 
Beginning of period832  837  847  854  861  
Repurchase of common shares(11) (6) (12) (8) (7) 
Net impact of employee benefit plans and others—    1.0  —  
End of period821  832  837  847  854  
Risk-Based Capital Ratios - Basel III ($ in billions) (D) 
Common Equity Tier 1/Risk Weighted Assets (RWA)11.0 %11.0 %10.8 %11.0 %10.8 %
Tier 112.0 %12.0 %11.8 %12.0 %11.8 %
Total13.6 %13.6 %13.4 %13.6 %13.4 %
Common Equity Tier 1$18.0  $18.2  $17.4  $17.5  $16.6  
Tier 1 Capital$19.6  $19.8  $19.0  $19.1  $18.2  
Tier 2 Capital$2.6  $2.7  $2.6  $2.6  $2.5  
Total Capital$22.2  $22.5  $21.6  $21.7  $20.7  
RWA$163.4  $165.3  $161.3  $158.8  $154.7  
Tier 1 Leverage10.3 %10.5 %10.0 %10.4 %10.1 %
Supplementary Leverage Ratio (SLR) (E)8.8 %9.0 %8.6 %8.9 %8.6 %
Average Total Assets to calculate the Tier 1 Leverage Ratio (F)$190.4  $189.2  $189.4  $183.2  $179.8  
Total Leverage Exposure to calculate SLR$221.8  $220.7  $221.4  $214.4  $210.7  






























See Appendix IV for footnote references.
3


American Express Company (Preliminary)
Selected Card Related Statistical Information  
(Billions, except percentages and where indicated)  

 Q3'19Q2'19Q1'19Q4'18Q3'18YOY % changeYTD'19YTD'18YOY % change
Billed business (G)
U.S.$206.2  $209.2  $195.5  $205.1  $194.6   $610.9  $572.5   
Outside the U.S.102.0  102.5  100.2  103.9  100.1   304.7  302.5   
Total$308.2  $311.7  $295.7  $309.0  $294.7   $915.6  $875.0   
Proprietary$266.2  $269.4  $253.3  $264.4  $250.2   $788.9  $738.2   
Global Network Services (GNS)42.0  42.3  42.4  44.6  44.5  (6) 126.7  136.8  (7) 
Total$308.2  $311.7  $295.7  $309.0  $294.7   $915.6  $875.0   
Cards-in-force (millions) (H)
U.S.54.3  54.0  54.1  53.7  53.0   54.3  53.0   
Outside the U.S.60.2  60.2  59.8  60.3  62.1  (3) 60.2  62.1  (3) 
Total114.5  114.2  113.9  114.0  115.1  (1) 114.5  115.1  (1) 
Proprietary69.9  69.7  69.7  69.1  68.5   69.9  68.5   
GNS44.6  44.5  44.2  44.9  46.6  (4) 44.6  46.6  (4) 
Total114.5  114.2  113.9  114.0  115.1  (1) 114.5  115.1  (1) 
Basic cards-in-force (millions) (H)
U.S.42.7  42.5  42.5  42.3  41.7   42.7  41.7   
Outside the U.S.50.3  50.3  49.9  50.3  51.8  (3) 50.3  51.8  (3) 
Total93.0  92.8  92.4  92.6  93.5  (1) 93.0  93.5  (1) 
Average proprietary basic Card Member spending (dollars)
U.S.$5,366  $5,445  $5,082  $5,369  $5,169   $15,889  $15,462   
Outside the U.S.$4,027  $4,059  $3,927  $4,103  $3,864   $12,023  $11,647   
Average$4,964  $5,030  $4,741  $4,997  $4,784   $14,737  $14,336   
Card Member loans
U.S.$73.2  $72.6  $70.8  $72.0  $68.1   $73.2  $68.1   
Outside the U.S.10.5  10.6  10.2  9.9  9.5  11  10.5  9.5  11  
Total$83.7  $83.2  $81.0  $81.9  $77.6   $83.7  $77.6   
Average discount rate (I)2.39 %2.37 %2.37 %2.36 %2.38 %2.38 %2.37 %
Average fee per card (dollars) (J)$59  $57  $54  $52  $51  16  $57  $51  12  



See Appendix IV for footnote references.
4


American Express Company(Preliminary)
Selected Credit Related Statistical Information
(Billions, except percentages and where indicated)

 Q3'19Q2'19Q1'19Q4'18Q3'18YOY % changeYTD'19YTD'18YOY % change
Worldwide Card Member loans         
Total loans$83.7  $83.2  $81.0  $81.9  $77.6   $83.7  $77.6   
Loss reserves (millions)
Beginning balance$2,168  $2,121  $2,134  $1,937  $1,840  18  $2,134  $1,706  25  
Provisions - principal, interest and fees604  603  525  679  560   1,732  1,587   
Net write-offs - principal less recoveries(447) (463) (457) (399) (393) 14  (1,367) (1,140) 20  
Net write-offs - interest and fees less recoveries(91) (94) (92) (79) (77) 18  (277) (225) 23  
Other (K)(2)  11  (4)   10   11  
Ending balance $2,232  $2,168  $2,121  $2,134  $1,937  15  $2,232  $1,937  15  
Ending reserves - principal$2,112  $