Form 8-K AMERICAN EXPRESS CO For: Apr 22

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April 22, 2022 7:02 AM EDT

EXHIBIT 99.1
NEWS RELEASENEWS RELEASENEWS RELEASENEWS RELEASE
axplogo1a.jpg
FOR IMMEDIATE RELEASE
Media Contacts:
Leah M. Gerstner, Leah.M.Gerstner@aexp.com, +1.212.640.3174
Andrew R. Johnson, Andrew.R.Johnson@aexp.com, +1.212.640.8610

Investors/Analysts Contacts:
Vivian Y. Zhou, Vivian.Y.Zhou@aexp.com, +1.212.640.5574
Michelle A. Scianni, Michelle.A.Scianni@aexp.com, +1.212.640.5574

AMERICAN EXPRESS FIRST-QUARTER REVENUE INCREASES 29% TO $11.7 BILLION, DRIVEN BY STRONG CARD MEMBER SPENDING GLOBALLY

FIRST-QUARTER EARNINGS PER SHARE WAS $2.73

COMPANY REAFFIRMS 2022 REVENUE AND EPS GUIDANCE

($ in millions, except per share amounts, and where indicated)
Quarters Ended
March 31,		Percentage Inc/(Dec)
20222021
Total Network Volumes (Billions)$350.3$269.330%
Total Revenues Net of Interest Expense$11,735$9,06429%
Total Provisions for Credit Losses$(33)$(675)95%
Net Income$2,099$2,235(6)%
Diluted Earnings Per Common Share 1
$2.73$2.74—
Average Diluted Common Shares Outstanding758 805 (6)%
New York – April 22, 2022 – American Express Company (NYSE: AXP) today reported first-quarter net income of $2.1 billion, or $2.73 per share, compared with net income of $2.2 billion, or $2.74 per share, a year ago.
“Our strong first-quarter results demonstrated the continued business momentum we’ve achieved over the last several quarters despite the uncertain macro environment,” said Stephen J. Squeri, Chairman and Chief Executive Officer. “Revenues were up 29 percent year-over-year, driven by Card Member spending growth of 35 percent globally on an FX-adjusted basis, with volumes reaching a monthly record high in March.
"This performance was enabled by our ongoing investments in areas critical to sustainable, long-term growth, including customer acquisition, engagement and retention. We added 3 million new proprietary cards in the quarter, as acquisitions of U.S. Consumer Platinum and Gold Cards and U.S. Business Platinum Cards reached all-time highs for the quarter. With travel activity continuing to pick up, we also had record monthly acquisitions for our Delta Cards in March.

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“We also saw increased engagement across our customer categories, led by strong spending by Millennial and Gen Z Card Members and small and medium-sized businesses, which were up 56 percent and 30 percent, respectively, on an FX-adjusted basis over last year. Goods and Services spending, which is the largest category of spending on our network, continued to accelerate in the quarter, growing 21 percent on an FX-adjusted basis over last year. Travel and Entertainment spending was up 121 percent on an FX-adjusted basis over a year ago and essentially reached pre-pandemic levels globally for the first time in March, driven by continued strength in consumer travel.
“Our customer retention remained at very high levels throughout the quarter, demonstrating the high value that customers place on American Express Membership.
“These results are in line with our expectations for the full year, and we are reaffirming our full-year guidance of 18 to 20 percent revenue growth and earnings per share between $9.25 and $9.65.”
First-quarter consolidated total revenues net of interest expense were $11.7 billion, up 29 percent from $9.1 billion a year ago. The increase primarily reflected growth in Card Member spending compared to the prior year.
Consolidated provisions for credit losses resulted in a benefit of $33 million, compared with a benefit of $675 million a year ago. The change primarily reflected a significantly lower net reserve release in the current quarter compared with a year ago, partially offset by lower net write-offs in the current quarter, with credit metrics remaining near historic lows.
Consolidated expenses were $9.1 billion, up 34 percent from $6.7 billion a year ago, reflecting higher customer engagement costs primarily driven by a 30 percent increase in network volumes. Operating expenses were also higher, primarily reflecting net gains on Amex Ventures equity investments in the prior year and increased compensation costs in the current quarter.
The consolidated effective tax rate was 22.6 percent, down from 25.3 percent a year ago. The decrease primarily reflected discrete tax benefits in the current quarter.
Global Consumer Services Group reported first-quarter pretax income of $1.7 billion, compared with $2.1 billion a year ago.
Total revenues net of interest expense were $6.9 billion, up 27 percent from $5.4 billion a year ago. The increase primarily reflected growth in Card Member spending compared to the prior year.
Provisions for credit losses resulted in a benefit of $55 million, compared with a benefit of $503 million a year ago. The change primarily reflected a significantly lower net reserve release in the current quarter compared with a year ago, partially offset by lower net write-offs in the current quarter.
Total expenses were $5.2 billion, up 38 percent from $3.8 billion a year ago. The increase reflected higher customer engagement costs primarily driven by increased network volumes. Operating expenses were also higher primarily as a result of increased compensation, as well as technology and servicing costs.
Global Commercial Services reported first-quarter pretax income of $804 million, compared with $675 million a year ago.
Total revenues net of interest expense were $3.5 billion, up 31 percent from $2.7 billion a year ago, primarily reflecting growth in Card Member spending compared to the prior year.
Provisions for credit losses were $21 million, compared with a benefit of $161 million a year ago. The change primarily reflected lower reserve releases compared with a year ago, partially offset by lower net write-offs in the current quarter.
Total expenses were $2.7 billion, up 24 percent from $2.1 billion a year ago, reflecting higher customer engagement costs primarily driven by increased network volumes. Operating expenses were also higher primarily as a result of increased compensation, as well as technology and servicing costs.
Global Merchant and Network Services reported first-quarter pretax income of $687 million, compared with $385 million a year ago.
Total revenues net of interest expense were $1.4 billion, up 30 percent from $1.1 billion a year ago, primarily reflecting an increase in network volumes compared to the prior year.

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Total expenses were $715 million, up 1 percent from $707 million a year ago.
Corporate and Other reported a first-quarter pretax loss of $514 million, compared with a pretax loss of $212 million a year ago. The decline was primarily driven by net gains on Amex Ventures equity investments in the prior year.

________________________________
Notes:
1
Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards and other items of $16 million and $15 million for the three months ended March 31, 2022 and 2021, respectively, and, (ii) dividends on preferred shares of $14 million for both the three months ended March 31, 2022 and 2021.
As used in this release:
•Card Member spending (billed business) represents transaction volumes, including cash advances, on payment products issued by American Express.
•Customer engagement costs represent the aggregate of Card Member rewards, business development, Card Member services, and marketing expenses.
•FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for the three months ended March 31, 2022 apply to the period against which such results are being compared).
•Network volumes represent the total of billed business and processed volumes.
•Operating expenses represent salaries and employee benefits, professional services, data processing and equipment, and other, net.
•Reserve releases and reserve builds represent the portion of the provisions for credit losses for the period related to increasing or decreasing reserves for credit losses as a result of, among other things, changes in volumes, macroeconomic outlook, portfolio composition, and credit quality of portfolios. Reserve releases represent the amount by which net write-offs exceed the provisions for credit losses. Reserve builds represent the amount by which the provisions for credit losses exceed net write-offs.
###
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: personal cards, business cards, travel services, gift cards, prepaid cards, merchant services, Accertify, Kabbage, Resy, corporate card, business travel, diversity and inclusion, corporate responsibility and Environmental, Social, and Governance reports.
Source: American Express Company
Location: Global
This earnings release should be read in conjunction with the company’s statistical tables for the first quarter 2022, available on the American Express Investor Relations 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 first-quarter 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.

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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 2022, expectations for 2023 and aspirations for 2024 and beyond, among other matters, contain words such as “believe,” “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 2022 earnings per common share (EPS) outlook, grow earnings in the future and execute on its growth plan, which will depend in part on revenue growth, credit performance and the effective tax rate remaining consistent with current expectations and the company’s ability to continue investing in its brand, customers, value proposition, coverage, technology and talent, controlling operating expenses, effectively managing risk and 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: the extent and duration of the effect of the pandemic on the economy, consumer and business spending, and customer behaviors, such as with respect to travel, dining, shopping and in-person events; Russia’s invasion of Ukraine and related geopolitical impacts; the effects and duration of inflation, staffing shortages, supply chain issues and increased energy costs; the impact on consumers and businesses as forbearance and government support programs end; issues impacting brand perceptions and the company’s reputation; the impact of any future contingencies, including, but not limited to, restructurings, investment gains or losses, impairments, changes in reserves, legal costs and settlements, the imposition of fines or civil money penalties and increases in Card Member remediation; impacts related to new or renegotiated cobrand and other partner agreements; 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 Card Members, partners and merchants;
•the company’s ability to achieve its 2022 revenue growth outlook, its revenue growth expectations for 2023 and its revenue growth aspirations for 2024 and beyond, which could be impacted by, among other things, the factors identified above and in the subsequent paragraphs as well as the following: a deterioration in global economic and business conditions; consumer and business spending volumes not growing in line with expectations; the amount and efficacy of investments in share, scale and relevance; an inability to address competitive pressures and implement strategies and business initiatives, including within the premium consumer space, commercial payments, the global merchant network and digital environment; uncertainty regarding the continued spread of COVID-19 (including new variants) and the availability, distribution and use of effective treatments and vaccines; prolonged measures to contain the spread of COVID-19 (including travel restrictions), concern of the possible imposition of further containment measures and health concerns associated with the pandemic continuing to affect customer behaviors and travel patterns and demand, any of which could further exacerbate the effects on economic activity and travel-related revenues; and merchant discount rates changing by a greater or lesser amount than expected;
•net card fees not performing consistently with expectations, which could be impacted by, among other things, a deterioration in macroeconomic conditions impacting the ability and desire of Card Members to pay card fees; higher Card Member attrition rates; the pace of Card Member acquisition activity; and the company’s inability to address competitive pressures, develop attractive value propositions and implement its strategy of refreshing card products and enhancing benefits and services;
•net interest income and the growth rate of loans outstanding being higher or lower than expectations, which could be impacted by, among other things, the behavior of Card Members and their actual spending, borrowing and paydown patterns; the company’s ability to effectively manage risk and enhance Card Member value

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propositions; changes in benchmark interest rates; changes in capital and credit market conditions and the availability and cost of capital; credit actions, including line size and other adjustments to credit availability; the yield on Card Member loans not remaining consistent with current expectations; and the effectiveness of the company’s strategies to capture a greater share of existing Card Members’ spending and borrowings, and attract new, and retain existing, customers;
•future credit performance, the level of future delinquency and write-off rates and the amount and timing of future reserve builds and releases, which will depend in part on changes in consumer behavior that affect loan and receivable balances (such as paydown and revolve rates); macroeconomic factors such as unemployment rates, GDP and the volume of bankruptcies; the ability and willingness of Card Members to pay amounts owed to the company, particularly as forbearance and government support programs end; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; collections capabilities and recoveries of previously written-off loans and receivables; and governmental actions that provide forms of relief with respect to certain loans and fees, such as limiting debt collections efforts and encouraging or requiring extensions, modifications or forbearance;
•the actual amount the company spends on marketing in 2022 and beyond, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance; the effectiveness of management’s investment optimization process, management’s identification and assessment of attractive investment opportunities and the receptivity of Card Members and prospective customers to advertising and customer acquisition initiatives; the company’s ability to balance expense control and investments in the business; and management’s ability to drive increases in revenues and realize efficiencies and optimize investment spending;
•the actual amount to be spent on Card Member rewards and services and business development, and the relationship of these variable customer engagement costs to revenues, which could be impacted by continued changes in macroeconomic conditions and Card Member behavior as it relates to their spending patterns (including the level of spend in bonus categories), the redemption of rewards and offers (including travel redemptions) and usage of travel-related benefits; the costs related to reward point redemptions; inflation; further enhancements to product benefits to make them attractive to Card Members and prospective customers, potentially in a manner that is not cost effective; new and renegotiated contractual obligations with business partners; and the pace and cost of the expansion of the company’s global lounge collection;
•the company’s ability to control operating expenses, the actual amount spent on operating expenses in 2022 and beyond and the relationship of operating expense growth to revenue growth, which could be impacted by, among other things, salary and benefit expenses to attract and retain talent; costs due to new hybrid working arrangements; supply chain issues; a persistent inflationary environment; management’s decision to increase or decrease spending in such areas as technology, business and product development, sales force, premium servicing and digital capabilities depending on overall business performance; the company’s ability to innovate efficient channels of customer interactions and the willingness of Card Members to self-service and address issues through digital channels; the company’s ability to increase automation more generally and leverage and grow its scale; restructuring activity; fraud costs; information security or compliance expenses or consulting, legal and other professional services fees, including as a result of litigation or internal and regulatory reviews; the level of M&A activity and related expenses; information or cyber security incidents; the payment of civil money penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; impairments of goodwill or other assets; and the impact of changes in foreign currency exchange rates on costs
•the company’s tax rate not remaining consistent with current levels, which could be impacted by, among other things, changes in tax laws and regulation, the company’s geographic mix of income, unfavorable tax audits and other unanticipated tax items;
•changes affecting the company’s plans regarding the return of capital to shareholders, which will depend on factors such as capital levels and regulatory capital ratios; changes in the stress testing and capital planning process and new guidance from the Federal Reserve; results of operations and financial condition; credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;

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•our ability to implement our ESG strategies and initiatives, which depend in part on the amount and efficacy of our investments in product innovations, marketing campaigns, our supply chain and operations, and philanthropic, colleague and community programs; customer behaviors; and the cost and availability of solutions for a low carbon economy;
•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure that may materially impact the prices charged to merchants that accept American Express cards, the desirability of the company’s premium card products, competition for new and existing cobrand relationships, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;
•the possibility the actual amount the company earns from new Card Members will be lower than estimated, which will depend in part on factors such as changes in the economic and business environment, the effectiveness of the company’s marketing and loyalty programs to continue to engage Card Members and the willingness of Card Members to sustain spending and borrowing behaviors;
•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 the company’s 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 affect the profitability of the company’s business activities; limit the company’s ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or alter the company’s relationships with Card Members, partners, merchants and other third parties, including its ability to continue certain cobrand relationships in the EU; exert further pressure on the average discount rate and the company’s GNS business; 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 result in harm to the American Express brand; and
•factors beyond the company’s control such as a further escalation of the military conflict between Russia and Ukraine, future waves of COVID-19 cases, the severity and contagiousness of new variants, severe weather conditions, natural disasters, power loss, disruptions in telecommunications, terrorism and other catastrophic events, 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 results of operations or disrupt its 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, 2021 and the company’s other reports filed with the Securities and Exchange Commission.

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Exhibit 99.2
American Express Company(Preliminary)
Consolidated Statements of Income
(Millions, except percentages and per share amounts)
Q1'22Q4'21Q3'21Q2'21Q1'21YOY % change
Non-interest revenues
Discount revenue (A)$6,835 $7,149 $6,369 $6,044 $5,001 37 
Net card fees (B)1,423 1,344 1,312 1,286 1,253 14 
Service fees and other revenue (C)906 1,134 839 705 638 42 
Processed revenue (D)372 410 414 390 342 9 
Total non-interest revenues9,536 10,037 8,934 8,425 7,234 32 
Interest income
Interest on loans2,473 2,356 2,256 2,094 2,144 15 
Interest and dividends on investment securities13 17 18 24 24 (46)
Deposits with banks and other34 27 27 22 24 42 
Total interest income2,520 2,400 2,301 2,140 2,192 15 
Interest expense
Deposits122 102 109 113 134 (9)
Long-term debt and other199 190 198 209 228 (13)
Total interest expense321 292 307 322 362 (11)
Net interest income2,199 2,108 1,994 1,818 1,830 20 
Total revenues net of interest expense11,735 12,145 10,928 10,243 9,064 29 
Provisions for credit losses
Card Member receivables80 74 (12)(125)(10)#
Card Member loans(111)(9)(177)(396)(573)81 
Other(2)(12)(2)(85)(92)98 
Total provisions for credit losses(33)53 (191)(606)(675)95 
Total revenues net of interest expense after provisions for credit losses11,768 12,092 11,119 10,849 9,739 21 
Expenses
Card Member rewards3,111 3,032 3,020 2,712 2,243 39 
Business development1,043 1,128 943 889 802 30 
Card Member services626 665 579 432 317 97 
Marketing (B)1,224 1,585 1,412 1,330 964 27 
Salaries and employee benefits1,654 1,654 1,497 1,539 1,550 7 
Professional services472 607 490 458 403 17 
Data processing and equipment600 659 613 577 582 3 
Other, net326 456 115 (28)(115)#
Total expenses9,056 9,786 8,669 7,909 6,746 34 
Pretax income2,712 2,306 2,450 2,940 2,993 (9)
Income tax provision613 587 624 660 758 (19)
Net income$2,099 $1,719 $1,826 $2,280 $2,235 (6)
Net income attributable to common shareholders (E)$2,069 $1,679 $1,783 $2,249 $2,206 (6)
Effective tax rate22.6 %25.5 %25.5 %22.4 %25.3 %
Earnings Per Common Share
Basic
Net income attributable to common shareholders$2.73 $2.19 $2.27 $2.81 $2.74 — 
Average common shares outstanding757 768 786 801 804 (6)
Diluted
Net income attributable to common shareholders $2.73 $2.18 $2.27 $2.80 $2.74 — 
Average common shares outstanding758 769 787 802 805 (6)
Cash dividends declared per common share $0.52 $0.43 $0.43 $0.43 $0.43 21 
# - Denotes a variance of 100 percent or more.

See Appendix VI for footnote references
1

American Express Company(Preliminary)
Consolidated Balance Sheets and Related Statistical Information
(Billions, except percentages, per share amounts and where indicated)
 Q1'22Q4'21Q3'21Q2'21Q1'21YOY % change
Assets      
Cash & cash equivalents$28 $22 $28 $31 $40 (30)
Card Member receivables, less reserves53 54 49 48 42 26 
Card Member loans, less reserves86 85 74 72 66 30 
Investment securities4 3 10 12 21 (81)
Other (F)25 25 23 24 24 4 
Total assets$196 $189 $184 $187 $193 2 
Liabilities and Shareholders' Equity      
Customer deposits$91 $84 $84 $85 $89 2 
Short-term borrowings2 2 2 2 2 — 
Long-term debt38 39 34 37 42 (10)
Other (F)43 42 40 37 36 19 
Total liabilities174 167 160 161 169 3 
Shareholders' Equity22 22 24 26 24 (8)
Total liabilities and shareholders' equity$196 $189 $184 $187 $193 2 
Return on average equity (G)37.7 %33.7 %29.2 %36.5 %37.7 %
Return on average common equity (G)40.0 %35.8 %31.0 %38.4 %39.9 %
Book value per common share (dollars)$27.56 $27.05 $28.39 $30.02 $28.46 (3)

See Appendix VI for footnote references
2

American Express Company(Preliminary)
Consolidated Capital
 
 Q1'22Q4'21Q3'21Q2'21Q1'21
Shares Outstanding (in millions) 
Beginning of period761 778 798 803 805 
Repurchase of common shares(8)(17)(20)(6)(3)
Net impact of employee benefit plans and others2 — — 1.0 1 
End of period755 761 778 798 803 
Risk-Based Capital Ratios - Basel III ($ in billions) 
Common Equity Tier 1/Risk Weighted Assets (RWA)10.4 %10.5 %12.6 %14.2 %14.8 %
Tier 111.4 %11.5 %14.2 %15.3 %16.0 %
Total12.8 %12.9 %15.7 %16.8 %17.5 %
Common Equity Tier 1$17.6 $17.6 $19.1 $21.0 $20.0 
Tier 1 Capital$19.3 $19.2 $21.4 $22.6 $21.6 
Tier 2 Capital$2.4 $2.3 $2.2 $2.2 $2.1 
Total Capital$21.6 $21.5 $23.7 $24.8 $23.6 
RWA$169.4 $166.5 $150.7 $147.5 $135.1 
Tier 1 Leverage10.4 %10.5 %11.8 %12.2 %11.4 %
Average Total Assets to calculate the Tier 1 Leverage Ratio (H)$185.3 $183.5 $182.1 $185.6 $189.3 

See Appendix VI for footnote references
3

American Express Company(Preliminary)
Selected Card Related Statistical Information 
(Billions, except percentages and where indicated) 
 Q1'22Q4'21Q3'21Q2'21Q1'21YOY % change
Network volumes (I)
U.S. $244.5 $256.2 $232.0 $222.6 $186.2 31 
Outside the U.S.105.8 111.9 98.7 93.5 83.1 27 
Total$350.3 $368.1 $330.7 $316.1 $269.3 30 
Billed business (I)$301.0 $316.2 $280.4 $267.8 $225.4 34 
Processed volumes (I)49.3 51.9 50.3 48.3 43.9 12 
Total$350.3 $368.1 $330.7 $316.1 $269.3 30 
Cards-in-force (millions) (J)
U.S. 57.7 56.4 56.0 54.8 54.1 7 
Outside the U.S. 66.9 65.3 63.2 60.2 58.8 14 
Total124.6 121.7 119.2 115.0 112.9 10 
Proprietary72.8 71.4 70.6 69.6 69.0 6 
Basic cards-in-force (millions) (J)
U.S.45.4 44.3 44.0 43.0 42.4 7 
Outside the U.S.57.9 56.4 54.3 51.2 49.8 16 
Total103.3 100.7 98.3 94.2 92.2 12 
Average proprietary basic Card Member spending (dollars)
U.S.$5,965 $6,351 $5,771 $5,607 $4,723 26 
Outside the U.S.$4,165 $4,502 $3,893 $3,686 $3,170 31 
Average$5,452 $5,822 $5,231 $5,051 $4,270 28 
Card Member loans
U.S.$77.2 $76.9 $67.5 $66.2 $61.6 25 
Outside the U.S.11.6 11.7 9.5 9.4 8.5 36 
Total$88.8 $88.6 $77.0 $75.6 $70.1 27 
Average discount rate (K)2.32 %2.30 %2.32 %2.30 %2.26 %
Average fee per card (dollars) (L)$79 $76 $75 $74 $73 8 

See Appendix VI for footnote references
4

American Express Company(Preliminary)
Selected Credit Related Statistical Information
(Billions, except percentages and where indicated)
 Q1'22Q4'21Q3'21Q2'21Q1'21YOY % change
Worldwide Card Member loans      
U.S.$77.2 $76.9 $67.5 $66.2 $61.6 25 
Outside the U.S.$11.6 $11.7 $9.5 $9.4 $8.5 36 
Total loans$88.8 $88.6 $77.0 $75.6 $70.1 27 
Credit loss reserves (millions)
Beginning balance$3,305 $3,489 $3,835 $4,467 $5,344 (38)
Provisions - principal, interest and fees(111)(9)(177)(396)(573)81 
Net write-offs - principal less recoveries(165)(128)(118)(185)(241)(32)
Net write-offs - interest and fees less recoveries(50)(43)(43)(58)(63)(21)
Other (M)2 (4)(8)7 — — 
Ending balance $2,981 $3,305 $3,489 $3,835 $4,467 (33)
% of loans3.4 %3.7 %4.5 %5.1 %6.4 %
% of past due 455 %555 %666 %782 %723 %
Average loans$86.8 $82.9 $76.4 $72.8 $70.7 23 
Net write-off rate (principal only) (N)0.8 %0.6 %0.6 %1.0 %1.4 %
Net write-off rate (principal, interest and fees) (N)1.0 %0.8 %0.8 %1.3 %1.7 %
30+ days past due as a % of total (O)0.7 %0.7 %0.7 %0.6 %0.9 %
Net interest income divided by average Card Member loans (P)10.1 %10.2 %10.4 %10.0 %10.4 %
Net interest yield on average Card Member loans (P)10.5 %10.3 %10.8 %10.6 %11.3 %
Worldwide Card Member receivables      
U.S.$38.2 $38.4 $34.8 $33.9 $30.1 27 
Outside the U.S.$15.0 $15.2 $14.0 $13.7 $11.9 26 
Total receivables$53.2 $53.6 $48.8 $47.6 $42.0 27 
Credit loss reserves (millions)
Beginning balance$64 $30 $73 $202 $267 (76)
Provisions - principal and fees80 74 (12)(125)(10)#
Net write-offs - principal and fees less recoveries (Q)(67)(40)(32)(4)(53)26 
Other (M)(1)— 1 — (2)(50)
Ending balance$76 $64 $30 $73 $202 (62)
% of receivables0.1 %0.1 %0.1 %0.2 %0.5 %
Net write-off rate (principal and fees) (N)(Q)0.5 %0.3 %0.3 %— %0.5 %
Net write-off rate, excluding Global Corporate Payments (GCP) (principal and fees) (N)(R)0.6 %0.4 %0.3 %0.3 %0.6 %
Net write-off rate, excluding GCP (principal only) (N)(R)0.6 %0.3 %0.2 %0.3 %0.5 %
30+ days past due as a % of total, excluding GCP (O)(R)0.8 %0.6 %0.5 %0.5 %0.6 %
Other loans (F)
Total other loans$3.3 $2.9 $2.4 $2.2 $2.3 43 
Credit loss reserves (millions)
Beginning balance$52 $66 $72 $143 $238 (78)
Provisions(2)(12)(5)(65)(82)98 
Net write-offs(2)(2)— (5)(14)(86)
Other (M)— — (1)(1)1 #
Ending balance$48 $52 $66 $72 $143 (66)
% of other loans1.5 %1.8 %2.8 %3.3 %6.2 %
Other receivables (F)
Total other receivables$2.7 $2.7 $2.7 $2.9 $2.4 13 
Credit loss reserves (millions)
Beginning balance$25 $33 $39 $67 $85 (71)
Provisions— — 3 (20)(10)#
Net write-offs(3)(8)(9)(8)(8)(63)
Ending balance$22 $25 $33 $39 $67 (67)
% of other receivables0.8 %0.9 %1.2 %1.3 %2.8 %
# - Denotes a variance of 100 percent or more.

See Appendix VI for footnote references
5

American Express Company(Preliminary)
Selected Income Statement Information by Segment 
(Millions)   
Global Consumer Services Group
(GCSG) (S)		Global Commercial Services
(GCS)		Global Merchant and Network Services
(GMNS) (S)		Corporate and OtherConsolidated
Q1'22     
Non-interest revenues$5,049 $3,180 $1,356 $(49)$9,536 
Interest income2,040 436 2 42 2,520 
Interest expense192 122 (44)51 321 
Total revenues net of interest expense6,897 3,494 1,402 (58)11,735 
Total provisions for credit losses(55)21 — 1 (33)
Total revenues net of interest expense after provisions for credit losses6,952 3,473 1,402 (59)11,768 
Total expenses5,217 2,669 715 455 9,056 
Pretax income (loss)1,735 804 687 (514)2,712 
Q1'21
Non-interest revenues$3,809 $2,442 $1,061 $(78)$7,234 
Interest income1,808 336 4 44 2,192 
Interest expense188 116 (17)75 362 
Total revenues net of interest expense5,429 2,662 1,082 (109)9,064 
Total provisions for credit losses(503)(161)(10)(1)(675)
Total revenues net of interest expense after provisions for credit losses5,932 2,823 1,092 (108)9,739 
Total expenses3,787 2,148 707 104 6,746 
Pretax income (loss)2,145 675 385 (212)2,993 
YOY % change
Non-interest revenues33 30 28 37 32 
Interest income13 30 (50)(5)15 
Interest expense2 5 #(32)(11)
Total revenues net of interest expense27 31 30 47 29 
Total provisions for credit losses89 ###95 
Total revenues net of interest expense after provisions for credit losses17 23 28 45 21 
Total expenses38 24 1 #34 
Pretax income (loss)(19)19 78 #(9)
# - Denotes a variance of 100 percent or more.

See Appendix VI for footnote references
6

American Express Company(Preliminary)
Network Volumes Related Growth 
 YOY % change
 ReportedFX-Adjusted (T)
 Q1'22Q4'21Q3'21Q2'21Q1'21Q1'22Q4'21Q3'21Q2'21Q1'21
Worldwide          
Network volumes (I)30%29%29%50%(6)%32%30%29%46%(8)%
Total billed business (I)34323153(7)35333151(9)
Consumer billed business37343462(4)39353458(6)
Commercial billed business30292845(10)32302843(12)
Processed volumes (I)12132033315151826(1)
U.S.          
Network volumes (I)31313353(4)n/an/an/an/an/a
Total billed business (I)33333253(5)n/an/an/an/an/a
Consumer billed business38373763(2)n/an/an/an/an/a
Commercial billed business30292844(8)n/an/an/an/an/a
Outside the U.S.          
Network volumes (I)27232242(10)33262032(15)
Total billed business (I)34292855(14)41322543(20)
Consumer billed business36282759(10)43322446(17)
Commercial billed business32302849(20)39342738(26)
Asia Pacific, Australia & New Zealand network volumes13121028—19161020(7)
Latin America, Canada & Caribbean network volumes39363955(19)40383545(18)
Europe, the Middle East & Africa network volumes50383666(21)57403151(27)
Merchant Industry Metrics
Worldwide billed business (I)
Goods & Services (G&S)-related (77% of Q1'22 worldwide billed business)191918348211918316
T&E-related (23% of Q1'22 worldwide billed business)119130126347(49)121132124340(50)
Airline-related (5% of Q1'22 worldwide billed business)241271429#(72)246274426#(73)
U.S. billed business (I)
G&S-related (77% of Q1'22 U.S. billed business)202019337n/an/an/an/an/a
T&E-related (23% of Q1'22 U.S. billed business)110134141350(43)n/an/an/an/an/a
Airline-related (5% of Q1'22 U.S. billed business)217264421#(67)n/an/an/an/an/a
# - Denotes a variance of 1,000 percent or more.

See Appendix VI for footnote references
7

Global Consumer Services Group(Preliminary)
Selected Income Statement and Statistical Information (S)
(Millions, except percentages)
 Q1'22Q4'21Q3'21Q2'21Q1'21YOY % change
Non-interest revenues$5,049 $5,181 $4,704 $4,466 $3,809 33 
Interest income2,040 1,955 1,879 1,749 1,808 13 
Interest expense192 181 174 174 188 2 
Net interest income1,848 1,774 1,705 1,575 1,620 14 
Total revenues net of interest expense6,897 6,955 6,409 6,041 5,429 27 
Total provisions for credit losses(55)27 (126)(343)(503)89 
Total revenues net of interest expense after provisions for credit losses6,952 6,928 6,535 6,384 5,932 17 
Total expenses5,217 5,619 5,043 4,500 3,787 38 
Pretax segment income$1,735 $1,309 $1,492 $1,884 $2,145 (19)
(Billions, except percentages and where indicated)
Billed business (I)
U.S.$122.7 $129.5 $114.9 $110.8 $89.0 38 
Outside the U.S.$41.1 $44.6 $38.2 $35.8 $30.3 36 
Total$163.8 $174.1 $153.1 $146.6 $119.3 37 
Proprietary cards-in-force (millions) (J)
U.S.39.8 39.0 38.7 38.1 37.8 5 
Outside the U.S.17.2 17.0 16.8 16.7 16.7 3 
Total57.0 56.0 55.5 54.8 54.5 5 
Proprietary basic cards-in-force (millions) (J)
U.S.27.9 27.3 27.2 26.9 26.7 4 
Outside the U.S.12.1 11.9 11.7 11.6 11.6 4 
Total40.0 39.2 38.9 38.5 38.3 4 
Average proprietary basic Card Member spending (dollars)
U.S$4,444 $4,755 $4,255 $4,138 $3,336 33 
Outside the U.S.$3,434 $3,770 $3,278 $3,087 $2,616 31 
Average$4,138 $4,457 $3,960 $3,821 $3,118 33 
Segment assets$101.0 $102.1 $91.8 $89.7 $81.9 23 
Card Member loans
Total loans
U.S.$59.1 $59.8 $52.6 $51.8 $48.3 22 
Outside the U.S.$10.4 $10.7 $9.0 $8.8 $8.0 30 
Total$69.5 $70.5 $61.6 $60.6 $56.3 23 
Average loans
U.S.$58.1 $56.1 $52.3 $49.9 $49.0 19 
Outside the U.S.$10.4 $10.0 $8.9 $8.4 $8.3 25 
Total$68.5 $66.1 $61.2 $58.3 $57.3 20 
Lending Credit Metrics
U.S.      
Net write-off rate (principal only) (N)0.8 %0.6 %0.5 %0.9 %1.3 %
Net write-off rate (principal, interest and fees) (N)1.0 %0.8 %0.8 %1.2 %1.6 %
30+ days past due as a % of total (O)0.8 %0.7 %0.7 %0.6 %0.9 %
Outside the U.S.
Net write-off rate (principal only) (N)1.0 %0.9 %1.3 %2.2 %2.5 %
Net write-off rate (principal, interest and fees) (N)1.3 %1.2 %1.7 %2.9 %3.2 %
30+ days past due as a % of total (O)0.9 %0.8 %1.0 %1.1 %1.6 %
Total
Net write-off rate (principal only) (N)0.8 %0.6 %0.7 %1.1 %1.4 %
Net write-off rate (principal, interest and fees) (N)1.1 %0.9 %0.9 %1.5 %1.8 %
30+ days past due as a % of total (O)0.8 %0.7 %0.7 %0.7 %1.0 %
Net interest income divided by average Card Member loans (P)10.8 %10.7 %11.1 %10.8 %11.3 %
Net interest yield on average Card Member loans (P)
U.S.11.3 %11.2 %11.6 %11.4 %12.1 %
Outside the U.S.9.3 %8.0 %9.3 %9.9 %10.9 %
Total11.0 %10.7 %11.3 %11.1 %11.9 %
Card Member receivables
U.S.$13.4 $14.7 $12.6 $12.9 $11.2 20 
Outside the U.S.$7.2 $7.7 $6.9 $7.0 $6.0 20 
Total receivables$20.6 $22.4 $19.5 $19.9 $17.2 20 
Charge Credit Metrics      
U.S.      
Net write-off rate (principal only) (N)0.2 %0.2 %— %— %— %
Net write-off rate (principal and fees) (N)0.3 %0.2 %0.1 %— %0.1 %
30+ days past due as a % of total (O)0.6 %0.4 %0.4 %0.3 %0.4 %
Outside the U.S.
Net write-off rate (principal only) (N)0.9 %0.5 %0.6 %1.0 %1.3 %
Net write-off rate (principal and fees) (N)0.9 %0.6 %0.7 %1.1 %1.4 %
30+ days past due as a % of total (O)1.0 %0.7 %0.7 %0.7 %0.9 %
Total
Net write-off rate (principal only) (N)0.5 %0.3 %0.2 %0.3 %0.5 %
Net write-off rate (principal and fees) (N)0.5 %0.3 %0.3 %0.4 %0.6 %
30+ days past due as a % of total (O)0.7 %0.5 %0.5 %0.4 %0.6 %

See Appendix VI for footnote references
8

Global Commercial Services
(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 Q1'22Q4'21Q3'21Q2'21Q1'21YOY % change
Non-interest revenues$3,180 $3,257 $2,975 $2,811 $2,442 30 
Interest income436 401 378 345 336 30 
Interest expense122 111 111 111 116 5 
Net interest income314 290 267 234 220 43 
Total revenues net of interest expense3,494 3,547 3,242 3,045 2,662 31 
Total provisions for credit losses (Q)21 25 (66)(236)(161)#
Total revenues net of interest expense after provisions for credit losses3,473 3,522 3,308 3,281 2,823 23 
Total expenses2,669 2,822 2,594 2,446 2,148 24 
Pretax segment income (loss)$804 $700 $714 $835 $675 19 
(Billions, except percentages and where indicated)
Billed business (I)$135.7 $140.9 $126.1 $119.9 $104.0 30 
Proprietary cards-in-force (millions) (J)15.8 15.4 15.1 14.8 14.5 9 
Average Card Member spending (dollars)$8,682 $9,235 $8,447 $8,180 $7,159 21 
Segment assets$55.6 $52.9 $48.2 $46.4 $42.4 31 
Card Member loans
Total loans$19.4 $18.1 $15.4 $15.0 $13.8 41 
Total loans - Global Small Business Services (GSBS)$19.3 $18.0 $15.3 $15.0 $13.8 40 
30+ days past due as a % of total - GSBS (O)0.6 %0.5 %0.5 %0.4 %0.6 %
Average loans - GSBS$18.2 $16.7 $15.2 $14.4 $13.4 36 
Net write-off rate (principal only) - GSBS (N)0.6 %0.5 %0.5 %0.6 %1.0 %
Net write-off rate (principal, interest and fees) - GSBS (N)0.7 %0.6 %0.6 %0.7 %1.2 %
Net interest income divided by average Card Member loans (P)6.9 %6.9 %7.0 %6.5 %6.5 %
Net interest yield on average Card Member loans (P)8.6 %8.5 %8.8 %8.3 %8.7 %
Card Member receivables
Total receivables$32.5 $31.3 $29.3 $27.7 $24.8 31 
Net write-off rate (principal and fees) (N)(Q)0.5 %0.3 %0.2 %(0.2)%0.5 %
Total receivables - GCP (R)$14.5 $13.3 $12.5 $11.7 $10.5 38 
90+ days past billing as a % of total - GCP (O)(R)0.3 %0.3 %0.3 %0.3 %0.4 %
Net write-off rate (principal and fees) - GCP (N)(Q)(R)0.2 %0.2 %0.2 %(0.9)%0.4 %
Total receivables - GSBS$18.0 $18.0 $16.8 $15.9 $14.3 26 
30+ days past due as a % of total - GSBS (O)0.9 %0.7 %0.6 %0.5 %0.6 %
Net write-off rate (principal only) - GSBS (N)0.7 %0.3 %0.2 %0.2 %0.5 %
Net write-off rate (principal and fees) - GSBS (N)0.8 %0.4 %0.3 %0.3 %0.5 %
# - Denotes a variance of 100 percent or more.

See Appendix VI for footnote references
9

Global Merchant and Network Services(Preliminary)
Selected Income Statement and Statistical Information (S)             
(Millions, except percentages)                 
 Q1'22Q4'21Q3'21Q2'21Q1'21YOY % change
Non-interest revenues$1,356 $1,416 $1,278 $1,204 $1,061 28 
Interest income2 4 4 4 4 (50)
Interest expense(44)(31)(24)(20)(17)#
Net interest income46 35 28 24 21 #
Total revenues net of interest expense1,402 1,451 1,306 1,228 1,082 30 
Total provisions for credit losses— — — (27)(10)#
Total revenues net of interest expense after provisions for credit losses1,402 1,451 1,306 1,255 1,092 28 
Total expenses715 946 779 728 707 1 
Pretax segment income$687 $505 $527 $527 $385 78 
(Billions)      
Segment assets$16.1 $15.2 $14.2 $14.2 $13.6 18 
# - Denotes a variance of 100 percent or more.

See Appendix VI for footnote references
10

American Express Company(Preliminary)
Appendix I 
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE)
(Millions, except percentages) 
 
Q1'22Q4'21Q3'21Q2'21Q1'21
ROE     
Annualized Net income$8,396 $8,060 $7,304 $9,120 $8,940 
Average shareholders' equity$22,280 $23,910 $24,982 $24,994 $23,716 
Return on average equity (G)37.7 %33.7 %29.2 %36.5 %37.7 %
Reconciliation of ROCE     
Annualized Net income$8,396 $8,060 $7,304 $9,120 $8,940 
Preferred share dividends and equity related adjustments (U)57 87 118 57 58 
Earnings allocated to participating share awards and other64 56 54 65 58 
Net income attributable to common shareholders (U)$8,275 $7,917 $7,132 $8,998 $8,824 
Average shareholders' equity$22,280 $23,910 $24,982 $24,994 $23,716 
Average preferred shares (U)1,584 1,820 1,955 1,584 1,584 
Average common shareholders' equity$20,696 $22,090 $23,027 $23,410 $22,132 
Return on average common equity (G)40.0 %35.8 %31.0 %38.4 %39.9 %

See Appendix VI for footnote references
11

American Express Company(Preliminary)
Appendix II  
Net Interest Yield on Average Card Member Loans 
(Millions, except percentages and where indicated) 
 Q1'22Q4'21Q3'21Q2'21Q1'21
Consolidated     
Net interest income$2,199 $2,108 $1,994 $1,818 $1,830 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (V)158 135 172 195 236 
Interest income not attributable to our Card Member loan portfolio (W)(105)(98)(92)(93)(96)
Adjusted net interest income (X)$2,252 $2,145 $2,074 $1,920 $1,970 
Average Card Member loans (billions)$86.8 $82.9 $76.4 $72.8 $70.7 
Net interest income divided by average Card Member loans (Y)10.1 %10.2 %10.4 %10.0 %10.4 %
Net interest yield on average Card Member loans (Z)10.5 %10.3 %10.8 %10.6 %11.3 %
Global Consumer Services Group (S)     
U.S.     
Net interest income$1,633 $1,596 $1,524 $1,392 $1,421 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (V)34 23 31 44 60 
Interest income not attributable to our Card Member loan portfolio (W)(42)(36)(27)(22)(25)
Adjusted net interest income (X)$1,625 $1,583 $1,528 $1,414 $1,456 
Average Card Member loans (billions)$58.1 $56.1 $52.3 $49.9 $49.0 
Net interest income divided by average Card Member loans (Y)11.2 %11.4 %11.7 %11.2 %11.6 %
Net interest yield on average Card Member loans (Z)11.3 %11.2 %11.6 %11.4 %12.1 %
Outside the U.S.     
Net interest income$215 $178 $181 $183 $199 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (V)26 27 29 26 26 
Interest income not attributable to our Card Member loan portfolio (W)(3)(2)(2)(2)(2)
Adjusted net interest income (X)$238 $203 $208 $207 $223 
Average Card Member loans (billions)$10.4 $10.0 $8.9 $8.4 $8.3 
Net interest income divided by average Card Member loans (Y)8.3 %7.1 %8.1 %8.7 %9.6 %
Net interest yield on average Card Member loans (Z)9.3 %8.0 %9.3 %9.9 %10.9 %
Total     
Net interest income$1,848 $1,774 $1,705 $1,575 $1,620 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (V)59 50 60 70 86 
Interest income not attributable to our Card Member loan portfolio (W)(44)(38)(29)(24)(27)
Adjusted net interest income (X)$1,863 $1,786 $1,736 $1,621 $1,679 
Average Card Member loans (billions)$68.5 $66.1 $61.2 $58.3 $57.3 
Net interest income divided by average Card Member loans (Y)10.8 %10.7 %11.1 %10.8 %11.3 %
Net interest yield on average Card Member loans (Z)11.0 %10.7 %11.3 %11.1 %11.9 %
Global Commercial Services     
Net interest income$314 $290 $267 $234 $220 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (V)91 86 88 87 93 
Interest income not attributable to our Card Member loan portfolio (W)(16)(17)(17)(22)(22)
Adjusted net interest income (X)$389 $359 $338 $299 $291 
Average Card Member loans (billions)$18.3 $16.8 $15.2 $14.5 $13.5 
Net interest income divided by average Card Member loans (Y)6.9 %6.9 %7.0 %6.5 %6.5 %
Net interest yield on average Card Member loans (Z)8.6 %8.5 %8.8 %8.3 %8.7 %

See Appendix VI for footnote references
12

American Express Company(Preliminary)
Appendix III
Card Member Receivables Net Write-offs Components
(Billions, except percentages and where indicated)

Q1'22Q4'21Q3'21Q2'21Q1'21YOY % change
Worldwide Card Member receivables
Net write-offs (millions)
Net write-offs (principal and fees) (N)$67 $40 $32 $4 $53 26 
Less: Net write-offs (principal and fees) - GCP (N)(Q)(R)8 6 6 (24)10 (20)
Net write-offs (principal and fees) - GCSG and GSBS (N)$59 $34 $26 $28 $43 37 
Less: Net write-offs (fees only) - GCSG and GSBS (N)6 4 3 5 7 (14)
Net write-offs (principal only) - GCSG and GSBS (N)$53 $30 $23 $23 $36 47 
Average Card Member receivables
Global Consumer Services Group (GCSG)$20.5 $21.0 $19.8 $18.6 $17.1 20 
Global Small Business Services (GSBS)17.3 17.5 16.5 15.2 14.0 24 
Average receivables (GCSG and GSBS)$37.8 $38.5 $36.3 $33.8 $31.1 22 
GCP (R)13.2 13.2 12.0 11.1 10.7 23 
Total average receivables$51.0 $51.7 $48.3 $44.9 $41.8 22 
Net write-off rate (principal and fees) (N)0.5 %0.3 %0.3 %— %0.5 %
Net write-off rate (principal and fees) - GCSG and GSBS (N)0.6 %0.4 %0.3 %0.3 %0.6 %
Net write-off rate (principal only) - GCSG and GSBS (N)0.6 %0.3 %0.2 %0.3 %0.5 %
# - Denotes a variance of 100 percent or more.



See Appendix VI for footnote references
13


American Express Company(Preliminary)
Appendix IV
(Non Interest Revenues, Marketing and business development and Segment Non-interest revenues)
(Millions, except where indicated)

Effective for the first quarter of 2022, we made the following changes:
• Processed revenue represents revenues earned from processed volumes, previously reported in Discount revenue, Other fees and commissions and Other revenue.
• Service fees and other revenue combines the remaining balances from Other fees and commissions and Other revenue.
• Updated the methodology used for allocating certain revenues across reportable operating segments.
• Disaggregated Marketing and business development expense into Business Development expense and Marketing expense.
Q4'21Q3'21Q2'21Q1'21Q4'20Q3'20Q2'20Q1'20Q4'19Q3'19Q2'19Q1'19FY 2021FY 2020FY 2019
RptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcst
Non-interest revenues
Discount revenue (A)$7,482 $7,149 $6,676 $6,369 $6,327 $6,044 $5,242 $5,001 $5,549 $5,284 $4,999 $4,764 $4,015 $3,830 $5,838 $5,557 $6,829 $6,487 $6,566 $6,232 $6,577 $6,248 $6,195 $5,882 $25,727 $24,563 $20,401 $19,435 $26,167 $24,849 
Net card fees1,344 1,344 1,312 1,312 1,286 1,286 1,253 1,253 1,222 1,222 1,191 1,191 1,141 1,141 1,110 1,110 1,077 1,077 1,033 1,033 988 988 944 944 5,195 5,195 4,664 4,664 4,042 4,042 
Service fees and other revenue (C)1,134 839 705 638 594 600 561 947 1,094 1,096 1,113 1,079 3,316 2,702 4,382 
Other fees and commissions680 632 560 520 516 478 449 720 832 825 837 803 2,392 2,163 3,297 
Other revenue531 314 252 219 167 209 186 312 343 362 362 363 1,316 874 1,430 
Processed revenue (D)410 414 390 342 354 322 259 366 423 425 415 400 1,556 1,301 1,663 
Total non-interest revenues$10,037 $10,037 $8,934 $8,934 $8,425 $8,425 $7,234 $7,234 $7,454 $7,454 $6,877 $6,877 $5,791 $5,791 $7,980 $7,980 $9,081 $9,081 $8,786 $8,786 $8,764 $8,764 $8,305 $8,305 $34,630 $34,630 $28,102 $28,102 $34,936 $34,936 
Expenses
Marketing$1,585 $1,412 $1,330 $964 $1,030 $1,122 $745 $799 $975 $911 $884 $813 $5,291 $3,696 $3,583 
Business development1,128 943 889 802 828 700 617 906 978 910 892 762 3,762 3,051 3,542 
Marketing and business development$2,713 $2,355 $2,219 $1,766 $1,858 $1,822 $1,362 $1,705 $1,953 $1,821 $1,776 $1,575 $9,053 $6,747 $7,125 
Billed business (Billions)316.2 280.4 267.8 225.4 239.8 213.6 174.7 242.6 281.6 266.2 269.5 253.2 1,089.8 870.7 1,070.5 
Processed volumes (Billions)51.9 50.3 48.3 43.9 46.1 41.9 36.3 42.8 50.1 48.5 48.3 48.3 194.4 167.1 195.2 
Total Non-interest revenues by segment
GCSG5,175 5,181 4,699 4,704 4,464 4,466 3,819 3,809 3,970 3,963 3,632 3,630 3,024 3,030 4,006 3,986 4,509 4,511 4,333 4,333 4,304 4,304 4,032 4,034 18,157 18,160 14,632 14,609 17,178 17,182 
GCS3,264 3,257 2,978 2,975 2,815 2,811 2,432 2,442 2,523 2,527 2,327 2,327 2,014 2,003 2,788 2,800 3,187 3,178 3,070 3,064 3,059 3,053 2,926 2,918 11,489 11,485 9,652 9,657 12,242 12,213 
GMNS1,419 1,416 1,280 1,278 1,204 1,204 1,061 1,061 1,086 1,089 997 998 827 831 1,233 1,237 1,370 1,372 1,360 1,363 1,368 1,371 1,330 1,333 4,964 4,959 4,143 4,155 5,428 5,439 
Corporate and Other179 183 (23)(23)(58)(56)(78)(78)(125)(125)(79)(78)(74)(73)(47)(43)15 20 23 26 33 36 17 20 20 26 (325)(319)88 102 
AXP Consolidated10,037 10,037 8,934 8,934 8,425 8,425 7,234 7,234 7,454 7,454 6,877 6,877 5,791 5,791 7,980 7,980 9,081 9,081 8,786 8,786 8,764 8,764 8,305 8,305 34,630 34,630 28,102 28,102 34,936 34,936 


See Appendix VI for footnote references
14

American Express Company(Preliminary)
Appendix V
(Return on Average Equity and Return on Average Common Equity)

Effective for the first quarter of 2022, the interim period calculation methodologies for Return on average equity and Return on average common equity were modified to present the returns for the period on an annualized basis rather than the preceding twelve months. Prior period amounts have been recast to conform with current period presentation.

Q4'21Q3'21Q2'21Q1'21YTD Q3'21YTD Q2'21
RptdRcstRptdRcstRptdRcstRptdRcstRptdRcstRptdRcst
Return on average equity (G)33.7 %33.7 %32.6 %29.2 %30.5 %36.5 %22.6 %37.7 %32.6 %34.7 %30.5 %37.1 %
Return on average common equity (G)35.8 %35.8 %34.7 %31.0 %32.2 %38.4 %23.9 %39.9 %
See Appendix VI for footnote references
15

Appendix VI(Preliminary)
All Information in the preceding tables is presented on a basis prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), unless otherwise indicated. Certain reclassifications of prior period amounts have been made to conform to the current period presentation. See Appendix IV and V for certain prior period recast amounts.
(A)Discount revenue represents the proportion of billed business earned and retained by us for facilitating transactions between Card Members and merchants on payment products issued by American Express.
(B)Effective April 1, 2021, we prospectively changed the recognition of certain costs paid to a third party previously recognized over the twelve month card membership period in Net card fees in the Consolidated Statements of Income; such costs are now recorded as incurred in Marketing expenses.
(C)Service fees and other revenue includes service fees and travel commissions earned from merchants and other customers which are generally recognized in the period when the service is performed, and delinquency and foreign currency-related fees which are primarily recognized in the period when they are charged to the Card Member. In addition, Service fees and other revenue includes income (losses) from our investments in which we have significant influence, and therefore account for under the equity method.
(D)Processed revenue includes revenues related to network partnership agreements, comprising royalties, fees and amounts earned for facilitating transactions on cards issued by network partners. Processed revenue also includes fees earned on alternative payment solutions facilitated by American Express.
(E)Represents net income, less (i) earnings allocated to participating share awards of $16 million, $11 million, $14 million, $16 million and $15 million in Q1'22, Q4'21, Q3'21, Q2'21 and Q1'21, respectively; (ii) dividends on preferred shares of $14 million, $22 million, $20 million, $15 million and $14 million in Q1'22, Q4'21, Q3'21, Q2'21 and Q1'21, respectively; and (iii) equity-related adjustments of $7 million and $9 million in Q4'21 and Q3'21, respectively, related to the redemption of preferred shares. (refer to Footnote "U").
(F)Within assets, "other" includes the following items as presented in our Consolidated Balance Sheets: Other loans, less reserves for credit losses (including merchant financing loans), Premises and equipment and Other assets (including Other receivables); and within liabilities, "other" includes the following items: Accounts payable and Other liabilities.
(G)Effective Q1'22, we have changed the way we calculate Return on Average Equity (ROE) and Return on Average Common Equity (ROCE). ROE is calculated by dividing annualized net income for the period by average shareholders' equity for the period. ROCE is calculated by dividing annualized net income attributable to common shareholders for the period by average common shareholders' equity for the period.
(H)Presented for the purpose of calculating the Tier 1 Leverage Ratio.
(I)Billed business represents transaction volumes from payment products issued by American Express. Processed volumes represent transaction volumes from cards issued by network partners and those associated with alternative payment solutions. Network volumes represent our total volumes.
(J)Cards-in-force represent the number of cards that are issued and outstanding by American Express (proprietary cards-in-force) and cards issued and outstanding under network partnership agreements with banks and other institutions. Basic cards-in-force excludes supplemental cards issued on consumer accounts. Cards-in-force is useful in understanding the size of our Card Member base.
(K)Average discount rate calculation is generally designed to reflect the average pricing at all merchants accepting American Express cards and represents the percentage of network volumes retained by us from spend at merchants we acquire, or from merchants acquired by third parties on our behalf, net of amounts retained by such third parties. The average discount rate, together with billed business, drive our discount revenue.
(L)Average fee per card is computed on an annualized basis based on proprietary net card fees divided by average proprietary total cards-in-force.
(M)Other includes foreign currency impact on balance sheet re-measurement and translation.
(N)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. We believe the net write-off rate, excluding GCP net write-offs, a non-GAAP measure, is useful to show the write-off rate based on principal losses only for the Card Member receivables portfolios for which data is available (i.e., Global Consumer and Global Small Business Services). See Appendix III for a reconciliation.
(O)Beginning Q1'20, we offered Customer Pandemic Relief programs to provide short-term support for customers impacted by COVID-19. These programs are no longer widely available and negligible balances remained in the programs as of March 31, 2022. Delinquency status is generally frozen at enrollment, and loans that are current at enrollment do not age, regardless of whether payment is made. Upon exiting the program, delinquency aging resumes where it had left off at enrollment.
(P)See Appendix II for calculations of net interest yield on average Card Member loans, a non-GAAP measure, and net interest income divided by average Card Member loans, a GAAP measure, and the Company's rationale for presenting net interest yield on average Card Member loans (refer to Footnotes "Y" and "Z").
(Q)Q2'21 includes a $37 million partial recovery in Card Member receivables related to a corporate client bankruptcy, which had resulted in a $53 million write-off in the prior year in the Global Commercial Services (GCS) segment.
(R)GCP reflects global, large and middle market corporate accounts. GCP delinquency data for periods other than 90+ days past billing and the net write-off rate based on principal losses only are not available due to system constraints.
(S)As a result of organizational changes announced during the second quarter of 2021, our loyalty coalition business results, which were previously reported within the GMNS segment, are now reported within the GCSG segment. Prior period segment results have been revised to conform with current period presentation.
(T)FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for Q1'22 apply to the period(s) against which such results are being compared).
(U)On August 3, 2021, we issued $1.6 billion of 3.550% Fixed Rate Reset Noncumulative Preferred Shares, Series D. With the proceeds from that issuance, we redeemed in full the $850 million of 4.900% Fixed Rate/Floating Rate Noncumulative Preferred Shares, Series C on September 15, 2021 and the $750 million of 5.200% Fixed Rate/Floating Rate Noncumulative Preferred Shares, Series B on November 15, 2021. The difference between the redemption value and carrying value of the redeemed Series B and C Preferred Shares resulted in reductions of $7 million and $9 million to net income available to common shareholders, in Q4'21 and Q3'21, respectively.
(V)Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(W)Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.
(X)Adjusted net interest income is a non-GAAP measure that represents net interest income attributable to our Card Member loans (which includes, on a GAAP basis, interest that is deemed uncollectible), excluding the impact of interest expense and interest income not attributable to our Card Member loans. We believe adjusted net interest income is useful to investors because it represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a measure of profitability of our Card Member loan portfolio.
(Y)Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, includes elements of total interest income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans.
(Z)Net interest yield on average Card Member loans is a non-GAAP measure that is computed by dividing adjusted net interest income by average Card Member loans, computed on an annualized basis. Reserves and net write-offs related to uncollectible interest are recorded through provisions for credit losses, and thus not included in the net interest yield calculation. We believe that net interest yield on average Card Member loans is useful to investors because it provides a measure of profitability of our Card Member loan portfolio.
16

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