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Form 8-K AMERICAN EXPRESS CO For: Oct 22

October 22, 2021 7:05 AM

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
Melanie L. Michel, Melanie.L.Michel@aexp.com, +1.212.640.5574

AMERICAN EXPRESS REPORTS THIRD-QUARTER REVENUE OF $10.9 BILLION
AND EARNINGS PER SHARE OF $2.27

(Millions, except percentages and per share amounts)
Quarters Ended
September 30,		Percentage Inc/(Dec)Nine Months Ended
September 30,		Percentage Inc/(Dec)
2021202020212020
Total Revenues Net of Interest Expense$10,928$8,75125$30,235$26,73613
Total Provisions for Credit Losses$(191)$665#$(1,472)$4,841#
Net Income$1,826$1,07370$6,341$1,697#
Diluted Earnings Per Common Share 1
$2.27$1.3075$7.82$2.01#
Average Diluted Common Shares Outstanding787 805 (2)797 806 (1)
# - Denotes a variance of 100 percent or more.

New York – October 22, 2021 – American Express Company (NYSE: AXP) today reported third-quarter net income of $1.8 billion, or $2.27 per share, compared with net income of $1.1 billion, or $1.30 per share, a year ago.
“Our strong third quarter results once again reflect accelerating momentum in our core business and outstanding credit performance, enabled by the strategic decisions we’ve made over the last several years,” said Stephen J. Squeri, Chairman and Chief Executive Officer.
“Revenues jumped 25% from a year ago and Card Member spending accelerated from the previous quarter, reaching record highs for the third quarter. The growth was powered by consumer and small business spending on goods and services, which grew 19% over Q3 2019 on an FX-adjusted basis. We also saw a continued rebound in travel and entertainment spending, with restaurant spending notably resilient, growing above pre-pandemic levels in the quarter.
“The strategic investments we’ve made over the past year, particularly those to attract new Millennial and Gen Z customers and expand our leadership position with small businesses, are helping fuel the strong momentum we’re seeing in spending, customer acquisition, engagement, and retention. Spending by Millennial and Gen Z Card Members grew 38% above Q3 2019 levels on an FX-adjusted basis. We acquired 2.6 million new proprietary cards in Q3, with acquisitions of our U.S. consumer and small business Platinum and Gold Cards reaching all-time highs while our Card Member retention and satisfaction metrics are better than pre-pandemic levels.

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“We’re operating from a position of strength, and we see more opportunity ahead to drive sustainable, long-term growth. With the progress we’ve made against our key priorities this year, we remain confident in our ability to be within the high end of the range of the EPS expectations we had for 2020 in 2022.”
Third-quarter consolidated total revenues net of interest expense were $10.9 billion, up 25 percent from $8.8 billion a year ago. The quarter primarily reflected growth in Card Member spending, as well as a rise in the average discount rate resulting from the change in the mix of spending driven by increased levels of travel and entertainment spending, compared to the prior year.
Consolidated provisions for credit losses resulted in a benefit of $191 million, compared with a provision expense of $665 million a year ago. The change in provisions primarily reflected credit reserve releases of $393 million and lower net write-offs in the current quarter.
Consolidated expenses were $8.7 billion, up 29 percent from $6.7 billion a year ago, reflecting higher customer engagement costs. Customer engagement costs were up due to an increase in Card Member spending, higher marketing investments to continue building growth momentum, and higher usage of travel-related Card Member benefits. Operating expenses were slightly higher as a result of increased salary and benefits, partially offset by gains related to certain Amex Ventures equity investments.
The consolidated effective tax rate was 25.5 percent, up from 21.3 percent a year ago. The increase primarily reflected changes in the level and geographic mix of pretax income and discrete tax charges in the current quarter.
Global Consumer Services Group reported third-quarter pretax income of $1.5 billion, compared with $1.1 billion a year ago.
Total revenues net of interest expense were $6.4 billion, up 21 percent from $5.3 billion a year ago. The rise primarily reflected an increase in Card Member spending compared to the prior year.
Provisions for credit losses resulted in a benefit of $126 million, primarily reflecting a portion of the previously mentioned reserve releases and lower net write-offs, compared with a provision expense of $411 million a year ago.
Total expenses were $5.0 billion, up 34 percent from $3.8 billion a year ago. The increase primarily reflected higher customer engagement costs due to a rise in Card Member spending, higher marketing investments to continue building growth momentum, and higher usage of travel-related Card Member benefits.
Global Commercial Services reported third-quarter pretax income of $718 million, compared with $272 million a year ago.
Total revenues net of interest expense were $3.2 billion, up 28 percent from $2.5 billion a year ago, primarily reflecting a rise in Card Member spending.
Provisions for credit losses resulted in a benefit of $67 million, primarily reflecting a portion of the previously mentioned reserve releases and lower net write-offs, compared with a provision expense of $250 million a year ago.
Total expenses were $2.6 billion, up 29 percent from $2.0 billion a year ago. The increase primarily reflected higher customer engagement costs due to a rise in Card Member spending and higher marketing investments to continue building growth momentum.
Global Merchant and Network Services reported third-quarter pretax income of $529 million, compared with $326 million a year ago.
Total revenues net of interest expense were $1.3 billion, up 28 percent from $1.0 billion a year ago. The rise reflected an increase in network volumes compared to the prior year.
Total expenses were $779 million, up 13 percent from $691 million a year ago, driven by higher marketing investments.
Corporate and Other reported a third-quarter pretax loss of $285 million, compared with a pretax loss of $359 million a year ago.


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________________________________
Notes:
1Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards and other items of $14 million and $7 million for the three months ended September 30, 2021 and 2020, respectively, and $45 million and $10 million for the nine months ended September 30, 2021 and 2020, respectively, and (ii) dividends on preferred shares of $20 million and $16 million for the three months ended September 30, 2021 and 2020, respectively, and $49 million and $65 million for the nine months ended September 30, 2021 and 2020, respectively, and (iii) an equity-related adjustment of $9 million related to the redemption of preferred shares for the three and nine months ended September 30, 2021.
As used in this release:
•Customer engagement costs represent the aggregate of Card Member rewards, Card Member services, and marketing and business development 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 September 30, 2021 apply to the period(s) against which such results are being compared).
•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 third quarter 2021, 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 third-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, 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 be within the high end of the range of the original earnings per common share (EPS) expectations it had for 2020 in 2022, which will depend in part on spending volumes and therefore on economies continuing to re-open, vaccination rates increasing, travel restrictions lifting, consumers continuing to spend online and on Goods & Services, and the general public feeling comfortable traveling, shopping and dining out again; credit performance and reserve levels; identifying attractive investment opportunities to continue building growth momentum, including customer retention and acquisition efforts; the company’s ability to control operating expenses; the effective tax rate remaining consistent with current levels; and the company’s ability to continue its share repurchase program; any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs;
•the company’s volumes, revenue growth and EPS for 2021 and beyond, which could be impacted by, among other things, uncertainty regarding the continued spread of COVID-19 (including new variants) and the availability, distribution and use of effective treatments and vaccines; a deterioration in global economic and business conditions; consumer and business spending not growing in line with expectations, including Goods & Services spending not continuing to show strong growth and Travel & Entertainment spending not reaching 80 percent of 2019 levels by the fourth quarter of 2021; an inability or unwillingness of Card Members to pay amounts owed to the company; the termination of government support and relief programs; prolonged measures to contain the spread of COVID-19 (including travel restrictions) or premature easing of such containment measures, both of which could further exacerbate the effects on business activity and the company’s Card Members, partners and merchants; health concerns associated with the pandemic continuing to affect consumer behavior, spending levels and preferences, and travel patterns and demand even after government restrictions are lifted and economies re-open; an inability of the company to effectively manage risk in an uncertain environment; market volatility, changes in capital and credit market conditions and the availability and cost of capital; issues impacting brand perceptions and the company’s reputation; the amount and efficacy of investments in share, scale and relevance; an inability of business partners to meet their obligations to the company and the company’s customers due to slowdowns or disruptions in their businesses, bankruptcy or liquidation, or otherwise; 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; 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;
•future credit performance, the level of future delinquency and write-off rates and the amount and timing of future credit 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 performance of accounts as they graduate and exit from financial relief programs; collections capabilities and recoveries of previously written-off loans and receivables; the enrollment in, and effectiveness of, hardship programs and troubled debt restructurings; continued government support for the economy; 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;

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•net interest income and the growth rate of loans outstanding being higher or lower than current expectations, which will depend on the behavior of Card Members and their actual spending, borrowing and paydown patterns; government stimulus, liquidity and financial strength in the company’s customer base and the availability of forbearance programs; the company’s ability to effectively manage risk and enhance Card Member value propositions; changes in interest rates and the company’s cost of funds; credit actions, including line size and other adjustments to credit availability; and the effectiveness of the company’s strategies to capture a greater share of existing Card Members’ spending and borrowings, reduce Card Member attrition and attract new customers;
•the actual amount to be spent on marketing in 2021 and beyond, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance; 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 pace at which the company winds down its value injections efforts; the company’s ability to balance expense control and investments in the business; and management’s ability to 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) and the redemption of rewards and offers (including travel redemptions); the costs related to reward point redemptions; Card Members’ interest in the value propositions offered by the company; further enhancements to product benefits to make them attractive to Card Members, potentially in a manner that is not cost effective; and new and renegotiated contractual obligations with business partners;
•the ability of the company to control its operating expenses and the actual amount the company spends on operating expenses in 2021 and beyond, 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; higher-than-expected inflation; 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; 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; 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;
•net card fees not performing consistent with current expectations, which could be impacted by, among other things, the further deterioration in macroeconomic conditions impacting the ability and desire of Card Members to pay card fees; higher Card Member attrition rates; Card Members continuing to be attracted to the company’s premium card products and the pace of Card Member acquisition activity; and the company’s inability to address competitive pressures and implement its strategies and business initiatives, including introducing new and enhanced benefits and services that are designed for the current environment;
•the average discount rate not performing consistent with current expectations, including as a result of further changes in the mix of spending by location and industry (including the level of T&E spending), merchant negotiations (including merchant incentives, concessions and volume-related pricing discounts), competition, pricing regulation (including regulation of competitors’ interchange rates) and other factors;
•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 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 ability of the company to maintain the Platinum card franchise’s leadership in the premium space,

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competition for new and existing cobrand relationships, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;
•changes affecting the company’s plans regarding the return of capital to shareholders, including the level of share repurchases over the next several quarters, 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; the company’s results of operations and financial condition; the company’s credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;
•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 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 and U.K.; 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 continued waves of COVID-19 cases, whether and when populations achieve herd immunity, 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, 2020, the Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 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)
Q3'21Q2'21Q1'21Q4'20Q3'20YOY % changeYTD'21YTD'20YOY % change
Non-interest revenues
Discount revenue$6,676 $6,327 $5,242 $5,549 $4,999 34 $18,245 $14,852 23 
Net card fees (A)1,312 1,286 1,253 1,222 1,191 10 3,851 3,442 12 
Other fees and commissions632 560 520 516 478 32 1,712 1,647 4 
Other314 252 219 167 209 50 785 707 11 
Total non-interest revenues8,934 8,425 7,234 7,454 6,877 30 24,593 20,648 19 
Interest income
Interest on loans2,256 2,094 2,144 2,236 2,266 — 6,494 7,543 (14)
Interest and dividends on investment securities18 24 24 29 33 (45)66 98 (33)
Deposits with banks and other27 22 24 22 25 8 73 155 (53)
Total interest income2,301 2,140 2,192 2,287 2,324 (1)6,633 7,796 (15)
Interest expense
Deposits109 113 134 155 202 (46)356 788 (55)
Long-term debt and other198 209 228 235 248 (20)635 920 (31)
Total interest expense307 322 362 390 450 (32)991 1,708 (42)
Net interest income1,994 1,818 1,830 1,897 1,874 6 5,642 6,088 (7)
Total revenues net of interest expense10,928 10,243 9,064 9,351 8,751 25 30,235 26,736 13 
Provisions for credit losses
Card Member receivables(12)(125)(10)(54)117 #(147)1,069 #
Card Member loans(177)(396)(573)37 571 #(1,146)3,416 #
Other(2)(85)(92)(94)(23)(91)(179)356 #
Total provisions for credit losses(191)(606)(675)(111)665 #(1,472)4,841 #
Total revenues net of interest expense after provisions for credit losses11,119 10,849 9,739 9,462 8,086 38 31,707 21,895 45 
Expenses
Marketing and business development (A)2,355 2,219 1,766 1,858 1,822 29 6,340 4,889 30 
Card Member rewards3,020 2,712 2,243 2,296 2,004 51 7,975 5,745 39 
Card Member services579 432 317 307 259 #1,328 923 44 
Salaries and employee benefits1,497 1,539 1,550 1,566 1,408 6 4,586 4,152 10 
Professional services490 458 403 523 421 16 1,351 1,266 7 
Data processing and equipment613 577 582 644 577 6 1,772 1,690 5 
Other, net115 (28)(115)410 231 (50)(28)792 #
Total expenses8,669 7,909 6,746 7,604 6,722 29 23,324 19,457 20 
Pretax income2,450 2,940 2,993 1,858 1,364 80 8,383 2,438 #
Income tax provision624 660 758 420 291 #2,042 741 #
Net income$1,826 $2,280 $2,235 $1,438 $1,073 70 $6,341 $1,697 #
Net income attributable to common shareholders (B)$1,783 $2,249 $2,206 $1,415 $1,050 70 $6,238 $1,622 #
Effective tax rate25.5 %22.4 %25.3 %22.6 %21.3 %24.4 %30.4 %
Earnings Per Common Share
Basic
Net income attributable to common shareholders$2.27 $2.81 $2.74 $1.76 $1.31 73 $7.84 $2.01 #
Average common shares outstanding786 801 804 805 804 (2)796 805 (1)
Diluted
Net income attributable to common shareholders $2.27 $2.80 $2.74 $1.76 $1.30 75 $7.82 $2.01 #
Average common shares outstanding787 802 805 806 805 (2)797 806 (1)
Cash dividends declared per common share $0.43 $0.43 $0.43 $0.43 $0.43 — $1.29 $1.29 — 
# - Denotes a variance of 100 percent or more.

See Appendix IV for footnote references
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American Express Company(Preliminary)
Consolidated Balance Sheets and Related Statistical Information
(Billions, except percentages, per share amounts and where indicated)
 Q3'21Q2'21Q1'21Q4'20Q3'20YOY % change
Assets      
Cash & cash equivalents$28 $31 $40 $33 $36 (22)
Card Member receivables, less reserves49 48 42 43 40 23 
Card Member loans, less reserves74 72 66 68 64 16 
Investment securities10 12 21 22 22 (55)
Other (C)23 24 24 25 25 (8)
Total assets$184 $187 $193 $191 $187 (2)
Liabilities and Shareholders' Equity      
Customer deposits$84 $85 $89 $87 $85 (1)
Short-term borrowings2 2 2 2 2 — 
Long-term debt34 37 42 43 45 (24)
Other (C)40 37 36 36 33 21 
Total liabilities160 161 169 168 165 (3)
Shareholders' Equity24 26 24 23 22 9 
Total liabilities and shareholders' equity$184 $187 $193 $191 $187 (2)
Return on average equity (D)32.6 %30.5 %22.6 %14.2 %15.3 %
Return on average common equity (D)34.7 %32.2 %23.9 %14.9 %15.9 %
Book value per common share (dollars)$28.39 $30.02 $28.46 $26.58 $25.19 13 

See Appendix IV for footnote references
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American Express Company(Preliminary)
Consolidated Capital
 
 Q3'21Q2'21Q1'21Q4'20Q3'20
Shares Outstanding (in millions) 
Beginning of period798 803 805 805 805 
Repurchase of common shares(20)(6)(3)— — 
Net impact of employee benefit plans and others— 1 1 — — 
End of period778 798 803 805 805 
Risk-Based Capital Ratios - Basel III ($ in billions) 
Common Equity Tier 1/Risk Weighted Assets (RWA)12.6 %14.2 %14.8 %13.5 %13.9 %
Tier 114.2 %15.3 %16.0 %14.7 %15.1 %
Total15.7 %16.8 %17.5 %16.2 %16.7 %
Common Equity Tier 1$19.1 $21.0 $20.0 $18.7 $18.3 
Tier 1 Capital$21.4 $22.6 $21.6 $20.3 $19.9 
Tier 2 Capital$2.2 $2.2 $2.1 $2.1 $2.2 
Total Capital$23.7 $24.8 $23.6 $22.4 $22.1 
RWA$150.7 $147.5 $135.1 $138.3 $131.9 
Tier 1 Leverage11.8 %12.2 %11.4 %11.0 %10.8 %
Average Total Assets to calculate the Tier 1 Leverage Ratio (E)$182.1 $185.6 $189.3 $185.1 $185.3 

See Appendix IV for footnote references
3

American Express Company(Preliminary)
Selected Card Related Statistical Information 
(Billions, except percentages and where indicated) 
 Q3'21Q2'21Q1'21Q4'20Q3'20YOY % changeYTD'21YTD'20YOY % change
Network volumes (F)
U.S. $232.0 $222.6 $186.2 $195.0 $174.6 33 $640.8 $513.2 25 
Outside the U.S.98.7 93.5 83.1 90.9 80.9 22 275.3 238.7 15 
Total$330.7 $316.1 $269.3 $285.9 $255.5 29 $916.1 $751.9 22 
Billed business (F)$280.4 $267.8 $225.4 $239.8 $213.6 31 $773.6 $630.9 23 
Processed volumes (F)50.3 48.3 43.9 46.1 41.9 20 142.5 121.0 18 
Total$330.7 $316.1 $269.3 $285.9 $255.5 29 $916.1 $751.9 22 
Cards-in-force (millions) (G)
U.S. 56.0 54.8 54.1 53.8 53.6 4 56.0 53.6 4 
Outside the U.S. 63.2 60.2 58.8 58.2 57.9 9 63.2 57.9 9 
Total119.2 115.0 112.9 112.0 111.5 7 119.2 111.5 7 
Proprietary70.6 69.6 69.0 68.9 68.8 3 70.6 68.8 3 
GNS48.6 45.4 43.9 43.1 42.7 14 48.6 42.7 14 
Total119.2 115.0 112.9 112.0 111.5 7 119.2 111.5 7 
Basic cards-in-force (millions) (G)
U.S.44.0 43.0 42.4 42.2 42.0 5 44.0 42.0 5 
Outside the U.S.54.3 51.2 49.8 49.1 48.8 11 54.3 48.8 11 
Total98.3 94.2 92.2 91.3 90.8 8 98.3 90.8 8 
Average proprietary basic Card Member spending (dollars)
U.S.$5,771 $5,607 $4,723 $4,983 $4,486 29 $16,106 $13,110 23 
Outside the U.S.$3,893 $3,686 $3,170 $3,505 $2,989 30 $10,745 $8,776 22 
Average$5,231 $5,051 $4,270 $4,549 $4,041 29 $14,555 $11,814 23 
Card Member loans
U.S.$67.5 $66.2 $61.6 $64.2 $61.4 10 $67.5 $61.4 10 
Outside the U.S.9.5 9.4 8.5 9.2 8.2 16 9.5 8.2 16 
Total$77.0 $75.6 $70.1 $73.4 $69.6 11 $77.0 $69.6 11 
Average discount rate (H)2.32 %2.30 %2.26 %2.25 %2.27 %2.30 %2.29 %
Average fee per card (dollars) (I)$75 $74 $73 $71 $69 9 $74 $66 12 

See Appendix IV for footnote references
4

American Express Company(Preliminary)
Selected Credit Related Statistical Information
(Billions, except percentages and where indicated)
 Q3'21Q2'21Q1'21Q4'20Q3'20YOY % changeYTD'21YTD'20YOY % change
Worldwide Card Member loans         
U.S.$67.5 $66.2 $61.6 $64.2 $61.4 10 $67.5 $61.4 10 
Outside the U.S.$9.5 $9.4 $8.5 $9.2 $8.2 16 $9.5 $8.2 16 
Total loans$77.0 $75.6 $70.1 $73.4 $69.6 11 $77.0 $69.6 11 
Credit loss reserves (millions)
Beginning balance$3,835 $4,467 $5,344 $5,688 $5,628 (32)$5,344 $4,027 33 
Provisions - principal, interest and fees(177)(396)(573)37 571 #(1,146)3,416 #
Net write-offs - principal less recoveries(118)(185)(241)(346)(432)(73)(544)(1,449)(62)
Net write-offs - interest and fees less recoveries(43)(58)(63)(74)(91)(53)(164)(301)(46)
Other (J)(8)7 — 39 12 #(1)(5)(80)
Ending balance $3,489 $3,835 $4,467 $5,344 $5,688 (39)$3,489 $5,688 (39)
% of loans4.5 %5.1 %6.4 %7.3 %8.2 %4.5 %8.2 %
% of past due 666 %782 %723 %727 %679 %666 %679 %
Average loans$76.4 $72.8 $70.7 $71.2 $69.9 9 $73.4 $75.4 (3)
Net write-off rate (principal only) (K)0.6 %1.0 %1.4 %1.9 %2.5 %1.0 %2.6 %
Net write-off rate (principal, interest and fees) (K)0.8 %1.3 %1.7 %2.4 %3.0 %1.3 %3.1 %
30+ days past due as a % of total (L)0.7 %0.6 %0.9 %1.0 %1.2 %0.7 %1.2 %
Net interest income divided by average Card Member loans (M)10.4 %10.0 %10.4 %10.7 %10.7 %10.2 %10.8 % 
Net interest yield on average Card Member loans (M)10.8 %10.6 %11.3 %11.4 %11.6 %10.9 %11.6 % 
Worldwide Card Member receivables         
U.S.$34.8 $33.9 $30.1 $30.5 $29.2 19 $34.8 $29.2 19 
Outside the U.S.$14.0 $13.7 $11.9 $13.2 $11.6 21 $14.0 $11.6 21 
Total receivables$48.8 $47.6 $42.0 $43.7 $40.8 20 $48.8 $40.8 20 
Credit loss reserves (millions)
Beginning balance$73 $202 $267 $422 $519 (86)$267 $126 #
Provisions - principal and fees(12)(125)(10)(54)117 #(147)1,069 #
Net write-offs - principal and fees less recoveries (N)(32)(4)(53)(105)(219)(85)(89)(776)(89)
Other (J)1 — (2)4 5 (80)(1)3 #
Ending balance$30 $73 $202 $267 $422 (93)$30 $422 (93)
% of receivables0.1 %0.2 %0.5 %0.6 %1.0 %0.1 %1.0 %
Net write-off rate (principal and fees) (K)(N)0.3 %— %0.5 %1.0 %2.2 %0.3 %2.3 %
Net write-off rate, excluding Global Corporate Payments (GCP) (principal and fees) (K)(O)0.3 %0.3 %0.6 %1.1 %2.2 %0.4 %2.4 %
Net write-off rate, excluding GCP (principal only) (K)(O)0.2 %0.3 %0.5 %1.0 %2.0 %0.3 %2.2 % 
30+ days past due as a % of total, excluding GCP (L)(O)0.5 %0.5 %0.6 %0.6 %0.9 %0.5 %0.9 % 
Other loans (C)
Total other loans$2.4 $2.2 $2.3 $2.9 $3.5 (31)$2.4 $3.5 (31)
Credit loss reserves (millions)
Beginning balance$72 $143 $238 $370 $423 $(83)$238 $172 38 
Provisions(5)(65)(82)(101)(26)$(81)(152)278 #
Net write-offs— (5)(14)(31)(27)#(19)(80)(76)
Other (J)(1)(1)1 — — — (1)— — 
Ending balance$66 $72 $143 $238 $370 $(82)$66 $370 $(82)
% of other loans2.8 %3.3 %6.2 %8.2 %10.6 %2.8 %10.6 %
Other receivables (C)
Total other receivables$2.7 $2.9 $2.4 $3.0 $2.6 4 $2.7 $2.6 4 
Credit loss reserves (millions)
Beginning balance$39 $67 $85 $85 $94 (59)$85 $27 #
Provisions3 (20)(10)7 3 — (27)78 #
Net write-offs(9)(8)(8)(7)(12)(25)(25)(20)25 
Ending balance$33 $39 $67 $85 $85 (61)$33 $85 (61)
% of other receivables1.2 %1.3 %2.8 %2.8 %3.3 %1.2 %3.3 %
# - Denotes a variance of 100 percent or more.

See Appendix IV for footnote references
5

American Express Company(Preliminary)
Selected Income Statement Information by Segment 
(Millions)   
Global Consumer Services Group
(GCSG) (P)		Global Commercial Services
(GCS)		Global Merchant and Network Services
(GMNS) (P)		Corporate and OtherConsolidated
Q3'21     
Non-interest revenues$4,699 $2,978 $1,280 $(23)$8,934 
Interest income1,879 378 4 40 2,301 
Interest expense174 111 (24)46 307 
Total revenues net of interest expense6,404 3,245 1,308 (29)10,928 
Total provisions for credit losses(126)(67)— 2 (191)
Total revenues net of interest expense after provisions for credit losses6,530 3,312 1,308 (31)11,119 
Marketing, business development, and Card Member rewards and services3,791 1,757 375 31 5,954 
Salaries and employee benefits and other operating expenses1,251 837 404 223 2,715 
Pretax income (loss)1,488 718 529 (285)2,450 
Q3'20
Non-interest revenues$3,632 $2,327 $997 $(79)$6,877 
Interest income1,916 351 4 53 2,324 
Interest expense244 139 (19)86 450 
Total revenues net of interest expense5,304 2,539 1,020 (112)8,751 
Total provisions for credit losses411 250 3 1 665 
Total revenues net of interest expense after provisions for credit losses4,893 2,289 1,017 (113)8,086 
Marketing, business development, and Card Member rewards and services2,547 1,221 297 20 4,085 
Salaries and employee benefits and other operating expenses1,221 796 394 226 2,637 
Pretax income (loss)1,125 272 326 (359)1,364 
YOY % change
Non-interest revenues29 28 28 (71)30 
Interest income(2)8 — (25)(1)
Interest expense(29)(20)26 (47)(32)
Total revenues net of interest expense21 28 28 (74)25 
Total provisions for credit losses#####
Total revenues net of interest expense after provisions for credit losses33 45 29 (73)38 
Marketing, business development, and Card Member rewards and services49 44 26 55 46 
Salaries and employee benefits and other operating expenses2 5 3 (1)3 
Pretax income (loss)32 #62 (21)80 
# - Denotes a variance of 100 percent or more.

See Appendix IV for footnote references
6

American Express Company(Preliminary)
Network Volumes Related Growth 
 YOY % change
 ReportedFX-Adjusted (Q)ReportedFX-Adjusted (Q)
 Q3'21Q2'21Q1'21Q4'20Q3'20Q3'21Q2'21Q1'21Q4'20Q3'20YTD'21YTD'21
Worldwide            
Network volumes (F)29%50%(6)%(14)%(19)%29%46%(8)%(15)%(19)%22%20%
Total billed business (F)3153(7)(15)(20)3151(9)(16)(20)2321
Consumer billed business3462(4)(12)(17)3458(6)(13)(18)2725
Commercial billed business2845(10)(18)(23)2843(12)(19)(23)1816
Processed volumes (F)20333(8)(14)1826(1)(10)(13)1814
U.S.            
Network volumes (F)3353(4)(12)(17)n/an/an/an/an/a25n/a
Total billed business (F)3253(5)(12)(17)n/an/an/an/an/a24n/a
Consumer billed business3763(2)(11)(16)n/an/an/an/an/a30n/a
Commercial billed business2844(8)(15)(19)n/an/an/an/an/a19n/a
Outside the U.S.            
Network volumes (F)2242(10)(18)(23)2032(15)(21)(24)159
Total billed business (F)2855(14)(22)(27)2543(20)(25)(29)1811
Consumer billed business2759(10)(17)(21)2446(17)(20)(23)2114
Commercial billed business2849(20)(31)(37)2738(26)(33)(37)137
Asia Pacific consolidated network volumes1028—(10)(15)1020(7)(15)(17)126
Latin America & Canada network volumes3955(19)(29)(37)3545(18)(25)(31)1816
Europe, Middle East & Africa network volumes3666(21)(28)(30)3151(27)(31)(32)2012
Merchant Industry Metrics
Worldwide billed business (F)
Goods & Services (G&S)-related (79% of Q3'21 worldwide billed business) (R)183485118316411918
T&E-related (21% of Q3'21 worldwide billed business)126347(49)(64)(68)124340(50)(65)(68)3937
Airline-related (3% of Q3'21 worldwide billed business)429#(72)(85)(92)426#(73)(85)(92)2724
U.S. billed business (F)
G&S-related (80% of Q3'21 U.S. billed business) (R)1933752n/an/an/an/an/a19n/a
T&E-related (20% of Q3'21 U.S. billed business)141350(43)(62)(67)n/an/an/an/an/a51n/a
Airline-related (3% of Q3'21 U.S. billed business)421#(67)(82)(90)n/an/an/an/an/a45n/a
# - Denotes a variance of 1,000 percent or more.

See Appendix IV for footnote references
7

Global Consumer Services Group(Preliminary)
Selected Income Statement and Statistical Information (P)
(Millions, except percentages)
 Q3'21Q2'21Q1'21Q4'20Q3'20YOY % changeYTD'21YTD'20YOY % change
Non-interest revenues$4,699 $4,464 $3,819 $3,970 $3,632 29 $12,982 $10,662 22 
Interest income1,879 1,749 1,808 1,901 1,916 (2)5,436 6,298 (14)
Interest expense174 174 188 210 244 (29)536 844 (36)
Net interest income1,705 1,575 1,620 1,691 1,672 2 4,900 5,454 (10)
Total revenues net of interest expense6,404 6,039 5,439 5,661 5,304 21 17,882 16,116 11 
Total provisions for credit losses(126)(342)(504)43 411 #(972)3,107 #
Total revenues net of interest expense after provisions for credit losses6,530 6,381 5,943 5,618 4,893 33 18,854 13,009 45 
Expenses
Marketing, business development, and Card Member rewards and services3,791 3,327 2,627 2,799 2,547 49 9,745 7,042 38 
Salaries and employee benefits and other operating expenses1,251 1,172 1,161 1,359 1,221 2 3,584 3,740 (4)
Total expenses5,042 4,499 3,788 4,158 3,768 34 13,329 10,782 24 
Pretax segment income$1,488 $1,882 $2,155 $1,460 $1,125 32 $5,525 $2,227 #
(Billions, except percentages and where indicated)
Billed business (F)
U.S.$114.9 $110.8 $89.0 $94.8 $83.9 37 $314.7 $242.9 30 
Outside the U.S.$38.2 $35.8 $30.3 $34.7 $30.2 26 $104.3 $86.4 21 
Total$153.1 $146.6 $119.3 $129.5 $114.1 34 $419.0 $329.3 27 
Proprietary cards-in-force (millions) (G)
U.S.38.7 38.1 37.8 37.7 37.5 3 38.7 37.5 3 
Outside the U.S.16.8 16.7 16.7 16.7 16.8 — 16.8 16.8 — 
Total55.5 54.8 54.5 54.4 54.3 2 55.5 54.3 2 
Proprietary basic cards-in-force (millions) (G)
U.S.27.2 26.9 26.7 26.6 26.5 3 27.2 26.5 3 
Outside the U.S.11.7 11.6 11.6 11.6 11.7 — 11.7 11.7 — 
Total38.9 38.5 38.3 38.2 38.2 2 38.9 38.2 2 
Average proprietary basic Card Member spending (dollars)
U.S$4,255 $4,138 $3,336 $3,567 $3,162 35 $11,731 $9,080 29 
Outside the U.S.$3,278 $3,087 $2,616 $2,984 $2,555 28 $8,982 $7,209 25 
Average$3,960 $3,821 $3,118 $3,390 $2,975 33 $10,901 $8,501 28 
Segment assets$91.8 $89.7 $81.9 $87.4 $81.9 12 $91.8 $81.9 12 
Card Member loans
Total loans
U.S.$52.6 $51.8 $48.3 $51.4 $49.8 6 $52.6 $49.8 6 
Outside the U.S.$9.0 $8.8 $8.0 $8.7 $7.7 17 $9.0 $7.7 17 
Total$61.6 $60.6 $56.3 $60.1 $57.5 7 $61.6 $57.5 7 
Average loans
U.S.$52.3 $49.9 $49.0 $50.3 $50.0 5 $50.5 $53.8 (6)
Outside the U.S.$8.9 $8.4 $8.3 $8.3 $7.8 14 $8.5 $8.6 (1)
Total$61.2 $58.3 $57.3 $58.6 $57.8 6 $59.0 $62.4 (5)
Lending Credit Metrics
U.S.         
Net write-off rate (principal only) (K)0.5 %0.9 %1.3 %1.9 %2.4 %0.9 %2.6 % 
Net write-off rate (principal, interest and fees) (K)0.8 %1.2 %1.6 %2.3 %2.9 %1.2 %3.1 % 
30+ days past due as a % of total (L)0.7 %0.6 %0.9 %1.0 %1.1 %0.7 %1.1 % 
Outside the U.S. 
Net write-off rate (principal only) (K)1.3 %2.2 %2.5 %2.5 %3.3 %2.0 %3.2 % 
Net write-off rate (principal, interest and fees) (K)1.7 %2.9 %3.2 %3.1 %4.1 %2.6 %4.0 % 
30+ days past due as a % of total (L)1.0 %1.1 %1.6 %1.7 %1.8 %1.0 %1.8 % 
Total 
Net write-off rate (principal only) (K)0.7 %1.1 %1.4 %2.0 %2.5 %1.1 %2.7 % 
Net write-off rate (principal, interest and fees) (K)0.9 %1.5 %1.8 %2.4 %3.1 %1.4 %3.2 % 
30+ days past due as a % of total (L)0.7 %0.7 %1.0 %1.1 %1.2 %0.7 %1.2 % 
Net interest income divided by average Card Member loans (M)11.1 %10.8 %11.3 %11.5 %11.6 %11.1 %11.7 % 
Net interest yield on average Card Member loans (M)
U.S.11.6 %11.4 %12.1 %12.0 %12.0 %11.7 %11.9 % 
Outside the U.S.9.3 %9.9 %10.9 %11.1 %11.9 %10.0 %12.2 % 
Total11.3 %11.1 %11.9 %11.9 %12.0 %11.4 %12.0 % 
Card Member receivables
U.S.$12.6 $12.9 $11.2 $11.9 $10.3 22 $12.6 $10.3 22 
Outside the U.S.$6.9 $7.0 $6.0 $6.8 $5.8 19 $6.9 $5.8 19 
Total receivables$19.5 $19.9 $17.2 $18.7 $16.1 21 $19.5 $16.1 21 
Charge Credit Metrics         
U.S.         
Net write-off rate (principal only) (K)0.0 %0.0 %— %0.4 %1.0 %0.0 %1.6 % 
Net write-off rate (principal and fees) (K)0.1 %— %0.1 %0.5 %1.1 %0.0 %1.7 % 
30+ days past due as a % of total (L)0.4 %0.3 %0.4 %0.4 %0.6 %0.4 %0.6 % 
Outside the U.S. 
Net write-off rate (principal only) (K)0.6 %1.0 %1.3 %1.3 %2.8 %1.0 %2.9 % 
Net write-off rate (principal and fees) (K)0.7 %1.1 %1.4 %1.5 %3.1 %1.1 %3.1 % 
30+ days past due as a % of total (L)0.7 %0.7 %0.9 %1.0 %1.2 %0.7 %1.2 % 
Total 
Net write-off rate (principal only) (K)0.2 %0.3 %0.5 %0.7 %1.7 %0.3 %2.0 % 
Net write-off rate (principal and fees) (K)0.3 %0.4 %0.6 %0.8 %1.8 %0.4 %2.2 % 
30+ days past due as a % of total (L)0.5 %0.4 %0.6 %0.6 %0.8 %0.5 %0.8 % 
# - Denotes a variance of 100 percent or more.

See Appendix IV for footnote references
8

Global Commercial Services
(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 Q3'21Q2'21Q1'21Q4'20Q3'20YOY % changeYTD'21YTD'20YOY % change
Non-interest revenues$2,978 $2,815 $2,432 $2,523 $2,327 28 $8,225 $7,129 15 
Interest income378 345 336 334 351 8 1,059 1,252 (15)
Interest expense111 111 116 126 139 (20)338 493 (31)
Net interest income267 234 220 208 212 26 721 759 (5)
Total revenues net of interest expense3,245 3,049 2,652 2,731 2,539 28 8,946 7,888 13 
Total provisions for credit losses (N)(67)(235)(162)(164)250 #(464)1,657 #
Total revenues net of interest expense after provisions for credit losses3,312 3,284 2,814 2,895 2,289 45 9,410 6,231 51 
Expenses
Marketing, business development, and Card Member rewards and services1,757 1,630 1,386 1,338 1,221 44 4,773 3,653 31 
Salaries and employee benefits and other operating expenses837 815 763 890 796 5 2,415 2,309 5 
Total expenses2,594 2,445 2,149 2,228 2,017 29 7,188 5,962 21 
Pretax segment income (loss)$718 $839 $665 $667 $272 #$2,222 $269 #
(Billions, except percentages and where indicated)
Billed business (F)$126.1 $119.9 $104.0 $109.1 $98.5 28 $350.0 $297.4 18 
Proprietary cards-in-force (millions) (G)15.1 14.8 14.5 14.5 14.5 4 15.1 14.5 4 
Average Card Member spending (dollars)$8,447 $8,180 $7,159 $7,515 $6,776 25 $23,790 $20,268 17 
Segment assets$48.2 $46.4 $42.4 $42.1 $39.9 21 $48.2 $39.9 21 
Card Member loans
Total loans$15.4 $15.0 $13.8 $13.3 $12.1 27 $15.4 $12.1 27 
Total loans - Global Small Business Services (GSBS)$15.3 $15.0 $13.8 $13.2 $12.0 28 $15.3 $12.0 28 
30+ days past due as a % of total - GSBS (L)0.5 %0.4 %0.6 %0.7 %1.1 %0.5 %1.1 %
Average loans - GSBS$15.2 $14.4 $13.4 $12.5 $12.1 26 $14.3 $13.0 10 
Net write-off rate (principal only) - GSBS (K)0.5 %0.6 %1.0 %1.9 %2.2 %0.7 %2.1 %
Net write-off rate (principal, interest and fees) - GSBS (K)0.6 %0.7 %1.2 %2.2 %2.5 %0.8 %2.4 %
Net interest income divided by average Card Member loans (M)7.0 %6.5 %6.5 %6.6 %7.0 %6.7 %7.7 %
Net interest yield on average Card Member loans (M)8.8 %8.3 %8.7 %9.0 %9.5 %8.6 %10.1 %
Card Member receivables
Total receivables$29.3 $27.7 $24.8 $25.0 $24.7 19 $29.3 $24.7 19 
Net write-off rate (principal and fees) (K)(N)0.2 %(0.2)%0.5 %1.1 %2.5 %0.2 %2.4 %
Total receivables - GCP (O)$12.5 $11.7 $10.5 $10.9 $10.4 20 $12.5 $10.4 20 
90+ days past billing as a % of total - GCP (L)(O)0.3 %0.3 %0.4 %0.6 %0.6 %0.3 %0.6 %
Net write-off rate (principal and fees) - GCP (K)(N)(O)0.2 %(0.9)%0.4 %0.7 %2.4 %(0.1)%2.2 %
Total receivables - GSBS$16.8 $15.9 $14.3 $14.1 $14.3 17 $16.8 $14.3 17 
30+ days past due as a % of total - GSBS (L)0.6 %0.5 %0.6 %0.7 %1.0 %0.6 %1.0 %
Net write-off rate (principal only) - GSBS (K)0.2 %0.2 %0.5 %1.3 %2.3 %0.3 %2.3 %
Net write-off rate (principal and fees) - GSBS (K)0.3 %0.3 %0.5 %1.4 %2.5 %0.4 %2.6 %
# - Denotes a variance of 100 percent or more.

See Appendix IV for footnote references
9

Global Merchant and Network Services(Preliminary)
Selected Income Statement and Statistical Information (P)             
(Millions, except percentages)                 
 Q3'21Q2'21Q1'21Q4'20Q3'20YOY % changeYTD'21YTD'20YOY % change
Non-interest revenues$1,280 $1,204 $1,061 $1,086 $997 28 $3,545 $3,057 16 
Interest income4 4 4 4 4 — 12 14 (14)
Interest expense(24)(20)(17)(21)(19)26 (61)(61)— 
Net interest income28 24 21 25 23 22 73 75 (3)
Total revenues net of interest expense1,308 1,228 1,082 1,111 1,020 28 3,618 3,132 16 
Total provisions for credit losses— (27)(10)12 3 #(37)75 #
Total revenues net of interest expense after provisions for credit losses1,308 1,255 1,092 1,099 1,017 29 3,655 3,057 20 
Expenses
Marketing, business development, and Card Member rewards and services375 373 300 330 297 26 1,048 800 31 
Salaries and employee benefits and other operating expenses404 355 407 493 394 3 1,166 1,218 (4)
Total expenses779 728 707 823 691 13 2,214 2,018 10 
Pretax segment income$529 $527 $385 $276 $326 62 $1,441 $1,039 39 
(Billions)         
Segment assets$14.2 $14.2 $13.6 $14.0 $12.0 18 $14.2 $12.0 18 
# - Denotes a variance of 100 percent or more.

See Appendix IV 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) 
 For the Twelve Months Ended
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020
ROE     
Net income$7,779 $7,026 $5,003 $3,135 $3,390 
Average shareholders' equity$23,832 $23,071 $22,158 $22,002 $22,172 
Return on average equity (D)32.6 %30.5 %22.6 %14.2 %15.3 %
Reconciliation of ROCE     
Net income$7,779 $7,026 $5,003 $3,135 $3,390 
Preferred share dividends and equity related adjustments (S)72 59 61 79 85 
Earnings allocated to participating share awards and other54 47 33 20 23 
Net income attributable to common shareholders (S)$7,653 $6,920 $4,909 $3,036 $3,282 
Average shareholders' equity$23,832 $23,071 $22,158 $22,002 $22,172 
Average preferred shares (S)1,763 1,584 1,584 1,584 1,584 
Average common shareholders' equity$22,069 $21,487 $20,574 $20,418 $20,588 
Return on average common equity (D)34.7 %32.2 %23.9 %14.9 %15.9 %

See Appendix IV for footnote references
11

American Express Company(Preliminary)
Appendix II  
Net Interest Yield on Average Card Member Loans 
(Millions, except percentages and where indicated) 
 Q3'21Q2'21Q1'21Q4'20Q3'20YTD'21YTD'20
Consolidated       
Net interest income$1,994 $1,818 $1,830 $1,897 $1,874 $5,642 $6,088 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (T)172 195 236 254 296 603 1,041 
Interest income not attributable to our Card Member loan portfolio (U)(92)(93)(96)(111)(137)(281)(557)
Adjusted net interest income (V)$2,074 $1,920 $1,970 $2,040 $2,033 $5,964 $6,572 
Average Card Member loans (billions)$76.4 $72.8 $70.7 $71.2 $69.9 $73.4 $75.4 
Net interest income divided by average Card Member loans (W)10.4 %10.0 %10.4 %10.7 %10.7 %10.2 %10.8 %
Net interest yield on average Card Member loans (X)10.8 %10.6 %11.3 %11.4 %11.6 %10.9 %11.6 %
Global Consumer Services Group (P)       
U.S.       
Net interest income$1,524 $1,392 $1,421 $1,490 $1,470 $4,337 $4,732 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (T)31 44 60 64 81 135 224 
Interest income not attributable to our Card Member loan portfolio (U)(27)(22)(25)(33)(42)(74)(156)
Adjusted net interest income (V)$1,528 $1,414 $1,456 $1,521 $1,509 $4,398 $4,800 
Average Card Member loans (billions)$52.3 $49.9 $49.0 $50.3 $50.0 $50.5 $53.8 
Net interest income divided by average Card Member loans (W)11.7 %11.2 %11.6 %11.8 %11.8 %11.5 %11.7 %
Net interest yield on average Card Member loans (X)11.6 %11.4 %12.1 %12.0 %12.0 %11.7 %11.9 %
Outside the U.S.       
Net interest income$181 $183 $199 $201 $202 $563 $721 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (T)29 26 26 34 36 81 71 
Interest income not attributable to our Card Member loan portfolio (U)(2)(2)(2)(2)(3)(6)(9)
Adjusted net interest income (V)$208 $207 $223 $233 $235 $638 $783 
Average Card Member loans (billions)$8.9 $8.4 $8.3 $8.3 $7.8 $8.6 $8.6 
Net interest income divided by average Card Member loans (W)8.1 %8.7 %9.6 %9.7 %10.4 %8.7 %11.2 %
Net interest yield on average Card Member loans (X)9.3 %9.9 %10.9 %11.1 %11.9 %10.0 %12.2 %
Total       
Net interest income$1,705 $1,575 $1,620 $1,691 $1,672 $4,900 $5,454 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (T)60 70 86 98 117 216 295 
Interest income not attributable to our Card Member loan portfolio (U)(29)(24)(27)(35)(45)(80)(166)
Adjusted net interest income (V)$1,736 $1,621 $1,679 $1,754 $1,744 $5,036 $5,583 
Average Card Member loans (billions)$61.2 $58.3 $57.3 $58.6 $57.8 $59.0 $62.4 
Net interest income divided by average Card Member loans (W)11.1 %10.8 %11.3 %11.5 %11.6 %11.1 %11.7 %
Net interest yield on average Card Member loans (X)11.3 %11.1 %11.9 %11.9 %12.0 %11.4 %12.0 %
Global Commercial Services       
Net interest income$267 $234 $220 $208 $212 $721 $759 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (T)88 87 93 103 111 269 375 
Interest income not attributable to our Card Member loan portfolio (U)(17)(22)(22)(25)(34)(62)(145)
Adjusted net interest income (V)$338 $299 $291 $286 $289 $928 $989 
Average Card Member loans (billions)$15.2 $14.5 $13.5 $12.6 $12.1 $14.4 $13.1 
Net interest income divided by average Card Member loans (W)7.0 %6.5 %6.5 %6.6 %7.0 %6.7 %7.7 %
Net interest yield on average Card Member loans (X)8.8 %8.3 %8.7 %9.0 %9.5 %8.6 %10.1 %

See Appendix IV for footnote references
12

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

Q3'21Q2'21Q1'21Q4'20Q3'20YOY % changeYTD'21YTD'20YOY % change
Worldwide Card Member receivables
Net write-offs (millions)
Net write-offs (principal and fees) (K)$32 $4 $53 $105 $219 (85)$89 $776 (89)
Less: Net write-offs (principal and fees) - GCP (K)(N)(O)6 (24)10 18 60 (90)(8)208 #
Net write-offs (principal and fees) - GCSG and GSBS (K)$26 $28 $43 $87 $159 (84)$97 $568 (83)
Less: Net write-offs (fees only) - GCSG and GSBS (K)3 5 7 10 15 (80)15 52 (71)
Net write-offs (principal only) - GCSG and GSBS (K)$23 $23 $36 $77 $144 (84)$82 $516 (84)
Average Card Member receivables
Global Consumer Services Group (GCSG)$19.8 $18.6 $17.1 $17.3 $15.8 25 $18.5 $16.7 11 
Global Small Business Services (GSBS)16.5 15.2 14.0 14.4 13.8 20 15.2 14.9 2 
Average receivables (GCSG and GSBS)$36.3 $33.8 $31.1 $31.7 $29.6 23 $33.7 $31.6 7 
GCP (O)12.0 11.1 10.7 10.7 9.9 21 11.3 $12.6 (10)
Total average receivables$48.3 $44.9 $41.8 $42.4 $39.5 22 $45.0 $44.2 2 
Net write-off rate (principal and fees) (K)0.3 %0.0 %0.5 %1.0 %2.2 %0.3 %2.3 %
Net write-off rate (principal and fees) - GCSG and GSBS (K)0.3 %0.3 %0.6 %1.1 %2.2 %0.4 %2.4 %
Net write-off rate (principal only) - GCSG and GSBS (K)0.2 %0.3 %0.5 %1.0 %2.0 %0.3 %2.2 %
# - Denotes a variance of 100 percent or more.



See Appendix IV for footnote references
13

Appendix IV(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.
(A)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 and business development expense. This change is not material to the Consolidated Financial Statements.
(B)Represents net income, less (i) earnings allocated to participating share awards of $14 million, $16 million, $15 million, $9 million and $7 million in Q3'21, Q2'21, Q1'21, Q4'20 and Q3'20, respectively; (ii) dividends on preferred shares of $20 million, $15 million, $14 million, $14 million and $16 million in Q3'21, Q2'21, Q1'21, Q4'20 and Q3'20, respectively; and (iii) an equity-related adjustment of $9 million related to the redemption of preferred shares in Q3'21 (refer to Footnote "S").
(C)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 and Paycheck Protection Program (PPP)), Premises and equipment and Other assets (including Other receivables); and within liabilities, "other" includes the following items: Accounts payable and Other liabilities.
(D)Return on average equity and return on average common equity are calculated for the relevant periods by dividing the preceding twelve months of net income by the one-year monthly average total shareholders' equity, and the preceding twelve months of net income attributable to common shareholders by the one-year monthly average common shareholders' equity, respectively. Refer to Appendix I for components of return on average equity and return on average common equity.
(E)Presented for the purpose of calculating the Tier 1 Leverage Ratio.
(F)Effective Q1'21, we changed the way we describe our volume metrics:
• Where we previously used the term “Billed Business” to describe our total volumes, we now use the term “Network Volumes.”
• Where we previously used the term “Proprietary Billed Business” to describe transaction volumes from cards and other payment products issued by American Express, we now use the term “Billed Business.”
• Where we previously used the term “GNS Billed Business” to describe transaction volumes from cards issued by GNS partners and joint ventures, we now use the term “Processed Volumes” and in order to provide a more complete view of transactions across our network we have now included in this category transactions associated with certain alternative payment solutions that were not previously reported in our volume metrics.

We believe that these changes provide better differentiation and descriptors for the volumes that run across the American Express network.
(G)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, including joint ventures (GNS cards-in-force) except for GNS retail cobrand cards that have no out of store spend activity during the prior 12 months. 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.
(H)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 network volumes, drive our discount revenue.
(I)Average fee per card is computed based on proprietary net card fees divided by average proprietary total cards-in-force.
(J)Other includes foreign currency impact on balance sheet re-measurement and translation.
(K)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.
(L)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 September 30, 2021. 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.
(M)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 "W" and "X").
(N)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.
(O)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.
(P)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.
(Q)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 Q3'21 apply to the period(s) against which such results are being compared).
(R)Effective Q1'21, we renamed "Non T&E" to "Goods and services (G&S)" which includes spend in merchant categories other than T&E-related merchant categories.
(S)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. The difference between the redemption value and carrying value of the redeemed Series C Preferred Shares resulted in a $9 million reduction to net income available to common shareholders. We intend to redeem in full the $750 million of 5.200% Fixed Rate/Floating Rate Noncumulative Preferred Shares, Series B on November 15, 2021.
(T)Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(U)Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.
(V)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.
(W)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.
(X)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.
14

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