REG-American Exp.Co American Express Reports Third Quarter Earnings from Continuing Operations of $642 Million; EPS of $0.54

http://www.businesswire.com/news/home/20091022006536/en

NEW YORK--(Business Wire)--

American Express Company (NYSE: AXP) today reported third-quarter income from
continuing operations of $642 million, down 25 percent from $861 million a year
ago. Diluted earnings per share from continuing operations were $0.54, down 27
percent from $0.74 a year ago.

(Millions, except per share amounts)
Quarters Ended Percentage Nine Months Ended Percentage
September 30, Inc/(Dec) September 30, Inc/(Dec)
2009 2008 2009 2008
Total Revenues Net of Interest Expense $ 6,016 $ 7,164 (16 )% $ 18,034 $ 21,859 (17 )%

Income From Continuing Operations $ 642 $ 861 (25 )% $ 1,427 $ 2,565 (44 )%
Loss From Discontinued Operations $ (2 ) $ (46 ) (96 )% $ (13 ) $ (106 ) (88 )%
Net Income $ 640 $ 815 (21 )% $ 1,414 $ 2,459 (42 )%

Earnings Per Common Share - Diluted:
Income From Continuing Operations Attributable to Common Shareholders1 $ 0.54 $ 0.74 (27 )% $ 0.95 $ 2.20 (57 )%
Loss From Discontinued Operations $ (0.01 ) $ (0.04 ) (75 )% $ (0.01 ) $ (0.10 ) (90 )%
Net Income Attributable to Common Shareholders1 $ 0.53 $ 0.70 (24 )% $ 0.94 $ 2.10 (55 )%
Average Diluted Common Shares Outstanding 1,181 1,158 2 % 1,166 1,161 - %
Return on Average Equity 11.7 % 27.8 % 11.7 % 27.8 %
Return on Average Common Equity 10.4 % 27.6 % 10.4 % 27.6 %

The third quarter results included a $180 million ($113 million after-tax)
non-recurring benefit associated with the company`s accounting for a net
investment in consolidated foreign subsidiaries (discussed in more detail
later). Excluding that benefit, adjusted diluted earnings per share from
continuing operations were $0.44.2

Net income totaled $640 million for the quarter, down 21 percent from $815
million a year ago. Diluted per-share net income of $0.53 was down 24 percent
from $0.70 a year ago. Excluding the non-recurring benefit mentioned above,
adjusted diluted per-share net income was $0.43.2

Consolidated revenues net of interest expense declined 16 percent to $6.0
billion, down from $7.2 billion a year ago.

Consolidated provisions for losses totaled $1.2 billion, down 13 percent from
$1.4 billion a year ago.

Consolidated expenses totaled $3.9 billion, down 17 percent from $4.7 billion a
year ago, reflecting in part the results of the company`s reengineering
initiatives.

At the end of the quarter, the company`s tier-one risk based capital ratio was
9.7 percent. Its tier-one common risk based ratio was 9.7 percent, which
compared favorably to the regulatory benchmark3 of 4 percent.

The company's return on average equity (ROE) was 11.7 percent, down from 27.8
percent a year ago. Return on average common equity (ROCE), was 10.4 percent,
down from 27.6 percent a year ago.

"Our results showed further progress in navigating through the most difficult
economic environment in decades," said Kenneth I. Chenault, chairman and chief
executive officer.

"We generated substantial earnings this quarter due, in part, to the
reengineering efforts that have successfully lowered our expense base. Just as
important, we stepped up investments in the business with a focus on: premium
cobranded products, charge card offerings and brand building initiatives in the
U.S. and select international markets. We funded these investments, as expected,
from the benefits we realized from better credit metrics during the past several
months.

"While third quarter revenues declined because cardmember spending and loan
volumes were down from year-ago levels, overall billings have stabilized during
the last few months and we saw indications that spending by corporate
cardmembers is beginning to pick up.

"During the quarter, we also expanded our deposit gathering activities, raising
a net $4.1 billion as part of our funding strategy based on staying liquid at a
time when the credit markets remain volatile.

"At the start of the year the economy appeared to be in a freefall, the drop in
cardmember spending was accelerating and loan loss rates were rising rapidly.
Today, while there is still reason to be cautious about high unemployment
levels, we are seeing broad-based improvements in credit quality, the trends in
cardmember spending are encouraging and there are signs that the recession may
be approaching an end.

"Our three priorities remain: staying liquid, staying profitable and investing
selectively for growth. However, in anticipation of sequential improvement in
our loan loss provision during the fourth quarter, we are focused more and more
on the third priority - investing in the business to make sure we capitalize on
growth opportunities."

During the third quarter, the translation effects of a comparatively stronger
U.S. dollar contributed to lower non-U.S. revenues, provisions and expenses,
compared to the year-ago quarter.

Discontinued operations

Discontinued operations for the third quarter generated a loss of $2 million
compared with a loss of $46 million during the year-ago period.

Segment Results

U.S. Card Services reported third-quarter net income of $109 million, compared
to net income of $244 million a year ago.

Total revenues net of interest expense for the third quarter decreased 16
percent to $2.9 billion, driven by reduced cardmember spending, lower
securitization income, net and lower loan balances.

Provisions for losses totaled $850 million, a decrease of 10 percent from $941
million a year ago. The decrease reflected lower loans and receivables, as well
as recent improvements in credit trends in both the charge and lending
portfolios. On a managed basis4, the net loan write-off rate was 8.9 percent,
down from 10.0 percent in the second quarter and up from 5.9 percent a year ago.
Owned net write-off rate was 9.8 percent in the quarter, down from 10.3 percent
in the second quarter and up from 6.1 percent a year ago.

Total expenses decreased 11 percent. Marketing, promotion, rewards and
cardmember services expenses decreased 16 percent from the year-ago period,
reflecting lower rewards costs and reduced investments in marketing and
promotion. Salaries and employee benefits and other operating expenses decreased
5 percent from year-ago levels, primarily due to the benefits of ongoing
reengineering initiatives.

International Card Services reported third-quarter net income of $127 million,
compared to $67 million a year ago.

Total revenues net of interest expense decreased 7 percent to $1.1 billion,
primarily driven by reduced cardmember spending and lower loan balances.

Provisions for losses totaled $250 million, a decrease of 21 percent from $316
million a year ago, primarily reflecting a lower level of loans and receivables.

Total expenses decreased 16 percent. Marketing, promotion, rewards and
cardmember services expenses decreased 22 percent from year-ago levels,
reflecting reduced marketing investments and lower rewards costs. Salaries and
employee benefits and other operating expenses decreased 11 percent from
year-ago levels, primarily due to the benefits of ongoing reengineering
initiatives.

Global Commercial Services reported a third quarter net income of $116 million,
compared to $134 million a year ago.

Total revenues net of interest expense decreased 17 percent to $997 million,
reflecting lower travel commissions and fees and reduced spending by corporate
cardmembers compared to year ago levels.

Total expenses decreased 17 percent. Marketing, promotion, rewards and
cardmember services expenses decreased 28 percent from the year-ago period,
primarily reflecting lower rewards costs. Salaries and employee benefits and
other operating expenses decreased 16 percent from the year-ago period,
primarily due to the benefits of ongoing reengineering initiatives.

Global Network & Merchant Services reported third-quarter net income of $240
million, compared to $258 million a year ago.

Total revenues net of interest expense decreased 10 percent to $963 million,
primarily reflecting lower merchant-related revenues driven by a decrease in
global card billed business.

Total expenses decreased 11 percent. Marketing and promotion expenses increased
5 percent from the year-ago period, primarily reflecting higher brand-related
marketing investments. Salaries and employee benefits and other operating
expenses decreased 15 percent, primarily due to the benefits of ongoing
reengineering initiatives.

Corporate and Other reported a third-quarter net income of $50 million, compared
with net income of $158 million a year ago. The results for both periods
reflected the recognition of $220 million ($136 million after-tax) for the
previously announced MasterCard and Visa settlements.

This year`s quarter included the previously mentioned non-recurring $180 million
($113 million after-tax) benefit associated with the company`s accounting for a
net investment in consolidated foreign subsidiaries. Of this benefit, $135
million ($85 million after-tax) represents a correction of an error related to
the accounting for cumulative translation adjustments in prior periods. The
impact of the incorrect accounting was not material to any of the quarterly or
annual periods in which it occurred. The error resulted in a $60 million ($38
million after-tax) income overstatement in the second quarter 2009, a $135
million ($85 million after-tax) income understatement in the fourth quarter 2008
and minimal amounts for all other periods affected dating back to third quarter
2007, when the incorrect accounting originated. A non-recurring $45 million ($28
million after-tax) related benefit was also recorded in the current quarter as a
result of changes in the fair value of certain foreign exchange forward
contracts that are economic hedges to foreign currency exposures of net
investments in consolidated foreign subsidiaries.

These amounts were more than offset by items that included higher tax expense
due primarily to a revision in the company`s estimated annual effective tax rate
and increased funding costs.

American Express Company is a leading global payments and travel company founded
in 1850. For more information, visit www.americanexpress.com.

***

The 2009 third Quarter Earnings Supplement will be available today on the
American Express web site at http://ir.americanexpress.com. An investor
conference call will be held at 5:00 p.m. (ET) today to discuss third-quarter
earnings results. Live audio and presentation slides for the investor conference
call will be available to the general public at the same web site. A replay of
the conference call will be available later today at the same web site address.

EXHIBIT 1

AMERICAN EXPRESS COMPANY
U.S. Card Services

(Billions, except percentages)

Quarter Ended Quarter Ended Quarter Ended
September 30, 2009 June 30, 2009 September 30, 2008

Cardmember lending - owned basis (A):
Average Loans $23.4 $26.5 $36.3
Net write-off rate 9.8 % 10.3 % 6.1 %

Cardmember lending - managed basis (B):
Average Loans $52.9 $55.1 $64.6
Net write-off rate 8.9 % 10.0 % 5.9 %

(A) "Owned," a GAAP basis measurement, reflects only cardmember loans included in the company's Consolidated Balance Sheets.

(B) The managed basis presentation assumes that there have been no off-balance sheet securitization transactions, i.e., all securitized cardmember loans and related income effects are reflected as if they were in the company's balance sheets and income statements, respectively. The difference between the "owned basis" (GAAP) information and "managed basis" information is attributable to the effects of securitization activities. The company presents U.S. Card Services information on a managed basis because
that is the way the company's management views and manages the business. Management believes that a full picture of trends in the company's cardmember lending business can only be derived by evaluating the performance of both securitized and non-securitized cardmember loans. Management also believes that use of a managed basis presentation presents a more comprehensive portrayal of the key dynamics of the cardmember lending business. Irrespective of the on and off-balance sheet funding mix, it is important
for management and investors to see metrics for the entire cardmember lending portfolio because they are more representative of the economics of the aggregate cardmember relationships and ongoing business performance and trends over time. It is also important for investors to see the overall growth of cardmember loans and related revenue in order to evaluate market share. These metrics are significant in evaluating the company's performance and can only be properly assessed when all non-securitized and
securitized cardmember loans are viewed together on a managed basis. The company does not currently securitize international loans.

1 Represents income from continuing operations or net income, as applicable,
less:

(i) accelerated preferred dividend accretion of $212 million for the nine months
ended September 30, 2009 due to the repurchase of $3.39 billion of preferred
shares issued as part of the Capital Purchase Program (CPP),

(ii) preferred shares dividends and related accretion of $94 million for the
nine months ended September 30, 2009, and

(iii) earnings allocated to participating share awards and other items of $8
million and $5 million for the three-months ended September 30, 2009 and 2008,
respectively, and $13 million and $14 million for the nine months ended
September 30, 2009 and 2008, respectively.

2 Management believes the adjusted per share numbers provide useful metrics to
evaluate the ongoing operating performance of the company.

3 The regulatory benchmark of 4 percent was used by the Federal Reserve within
the Supervisory Capital Assessment Program earlier this year.

4 Please refer to the information set forth on Exhibit I for further discussion
of the owned and managed basis presentations.

Forward Looking Statements:

This report 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 the Company`s
expected business and financial performance, among other matters, contain words
such as "believe," "expect," "anticipate," "optimistic," "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 manage credit risk related to
consumer debt, business loans, merchants and other credit trends, which will
depend in part on (i) the economic environment, including, among other things,
the housing market, the rates of bankruptcies and unemployment, which can affect
spending on card products, debt payments by individual and corporate customers
and businesses that accept the Company`s card products, (ii) the effectiveness
of the Company`s credit models and (iii) the impact of recently enacted statutes
and proposed legislative initiatives affecting the credit card business,
including, without limitation, The Credit Card Accountability Responsibility and
Disclosure Act of 2009; the impact of the Company`s efforts to deal with
delinquent cardmembers in the current challenging economic environment, which
may affect payment patterns of cardmembers and the perception of the Company`s
services, products and brands; the Company`s near-term write-off rates,
including those for the fourth quarter of 2009, which will depend in part on
changes in the level of the Company's loan balances, delinquency rates of
cardmembers, unemployment rates and the volume of bankruptcies; differences
between owned (i.e., GAAP) and managed write-off rates, which can be impacted by
factors such as the various types of customer accounts in the portfolios of the
Company and the lending securitization trust; consumer and business spending on
the Company`s credit and charge card products and Travelers Cheques and other
prepaid products and growth in card lending balances, which depend in part on
the economic environment, and the ability to issue new and enhanced card and
prepaid products, services and rewards programs, and increase revenues from such
products, attract new cardmembers, reduce cardmember attrition, capture a
greater share of existing cardmembers` spending, and sustain premium discount
rates on its card products in light of regulatory and market pressures, increase
merchant coverage, retain cardmembers after low introductory lending rates have
expired, and expand the Global Network Services business; the write-off and
delinquency rates in the medium- to long-term of cardmembers added by the
Company during the past few years, which could impact their profitability to the
Company; the Company`s ability to effectively implement changes in the pricing
of certain of its products and services; fluctuations in interest rates
(including fluctuations in benchmarks, such as LIBOR and other benchmark rates,
and credit spreads), which impact the Company`s borrowing costs, return on
lending products and the value of the Company`s investments; the actual amount
to be spent by the Company on marketing, promotion, rewards and cardmember
services based on management`s assessment of competitive opportunities and other
factors affecting its judgment, and during the remainder of 2009, the extent of
provision benefit, if any, from lower than expected write offs; the ability to
control and manage operating, infrastructure, advertising and promotion expenses
as business expands or changes, including the ability to accurately estimate the
provision for the cost of the Membership Rewards program; fluctuations in
foreign currency exchange rates; the Company`s ability to grow its business and
generate excess capital and earnings in a manner and at levels that will allow
the Company to return a portion of capital to shareholders, which will depend on
the Company`s ability to manage its capital needs, and the effect of business
mix, acquisitions and rating agency and regulatory requirements, including those
arising from the Company`s status as a bank holding Company; the ability of the
Company to meet its objectives with respect to the growth of its brokered retail
CD program, brokerage sweep account program and the direct deposit initiative;
the success of the Global Network Services business in partnering with banks in
the United States, which will depend in part on the extent to which such
business further enhances the Company`s brand, allows the Company to leverage
its significant processing scale, expands merchant coverage of the network,
provides Global Network Services` bank partners in the United States the
benefits of greater cardmember loyalty and higher spend per customer, and
merchant benefits such as greater transaction volume and additional higher
spending customers; the ability of the Global Network Services business to meet
the performance requirements called for by the Company`s settlements with
MasterCard and Visa; trends in travel and entertainment spending and the overall
level of consumer confidence; the uncertainties associated with business
acquisitions, including, among others, the failure to realize anticipated
business retention, growth and cost savings, as well as the ability to
effectively integrate the acquired business into the Company`s existing
operations; the success, timeliness and financial impact (including costs, cost
savings, and other benefits, including increased revenues), and beneficial
effect on the Company`s operating expense to revenue ratio, both in the
short-term (including during 2009) and over time, of reengineering initiatives
being implemented or considered by the Company, including cost management,
structural and strategic measures such as vendor, process, facilities and
operations consolidation, outsourcing (including, among others, technologies
operations), relocating certain functions to lower-cost overseas locations,
moving internal and external functions to the internet to save costs, and
planned staff reductions relating to certain of such reengineering actions; the
Company`s ability to reinvest the benefits arising from such reengineering
actions in its businesses; bankruptcies, restructurings, consolidations or
similar events (including, among others, the Delta Air Lines/Northwest Airlines
merger) affecting the airline or any other industry representing a significant
portion of the Company`s billed business, including any potential negative
effect on particular card products and services and billed business generally
that could result from the actual or perceived weakness of key business partners
in such industries; the triggering of obligations to make payments to certain
co-brand partners, merchants, vendors and customers under contractual
arrangements with such parties under certain circumstances; a downturn in the
Company`s businesses and/or negative changes in the Company`s and its
subsidiaries` credit ratings, which could result in contingent payments under
contracts, decreased liquidity and higher borrowing costs; the ability of the
Company to satisfy its liquidity needs and execute on its funding plans, which
will depend on, among other things, the Company`s future business growth, its
credit ratings, market capacity and demand for securities offered by the
Company, performance by the Company`s counterparties under its bank credit
facilities and other lending facilities, regulatory changes, including changes
to the policies, rules and regulations of the Board of Governors of the Federal
Reserve System and the Federal Reserve Bank of San Francisco, the Company`s
ability to securitize and sell receivables and the performance of receivables
previously sold in securitization transactions and the Company`s ability to meet
the criteria for participation in certain liquidity facilities and other funding
programs, including the Commercial Paper Funding Facility and the Temporary
Liquidity Guarantee Program, being made available through the Federal Reserve
Bank of New York, the Federal Deposit Insurance Corporation and other federal
departments and agencies; accuracy of estimates for the fair value of the assets
in the Company`s investment portfolio and, in particular, those investments that
are not readily marketable, including the valuation of the interest-only strip
relating to the Company`s lending securitizations and the ability of our charge
card and lending trusts to maintain excess spreads at levels sufficient to avoid
material set-asides or early amortization of our charge card and lending
securitizations, which will depend on various factors such as income derived
from the relevant portfolios and their respective credit performances; the
increase in excess spread resulting from the designation of discount option
receivables with respect to the American Express Credit Account Master Trust,
which will depend in part on the monthly principal payment rate posted to
accounts in, and the credit performance of, the securitized lending portfolio;
the Company`s ability to avoid material losses on its investment portfolio,
including its investments in state and municipal obligations, the issuers of
which could be adversely affected by the challenging economic environment; the
Company`s ability to invest in technology advances across all areas of its
business to stay on the leading edge of technologies applicable to the payment
industry; the Company`s ability to attract and retain executive management and
other key employees; the Company`s ability to protect its intellectual property
rights (IP) and avoid infringing the IP of other parties; the potential negative
effect on the Company`s businesses and infrastructure, including information
technology, of terrorist attacks, natural disasters or other catastrophic events
in the future; political or economic instability in certain regions or
countries, which could affect lending and other commercial activities, among
other businesses, or restrictions on convertibility of certain currencies;
changes in laws or government regulations; the potential impact of The Credit
Card Accountability Responsibility and Disclosure Act of 2009 and regulations
recently adopted by federal bank regulators relating to certain credit and
charge card practices, including, among others, the imposition by card issuers
of interest rate increases on outstanding balances and the allocation of
payments in respect of outstanding balances with different interest rates, which
could have an adverse impact on the Company`s net income; accounting changes,
including the Financial Accounting Standards Board`s recent adoption of changes
to the accounting of off-balance sheet activities or other potential regulatory
interpretations in this area, which, when effective, will result in the
Company`s having to consolidate the assets and liabilities of the lending
securitization trust, thereby requiring the Company to reestablish loss
reserves, which could reduce the Company`s regulatory capital ratios and/or
change the presentation of its financial statements; outcomes and costs
associated with litigation and compliance and regulatory matters; and
competitive pressures in all of the Company`s major businesses. A further
description of these and other risks and uncertainties can be found in the
Company`s Annual Report on Form 10-K for the year ended December 31, 2008, the
Company`s Quarterly Reports on Form 10-Q for the quarters ended March 31 and
June 30, 3009, and the Company`s other reports filed with the SEC.

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

(Preliminary)
American Express Company
Consolidated Statements of Income

(Millions)
Quarters Ended Nine Months Ended
September 30, Percentage September 30, Percentage
2009 2008 Inc/(Dec) 2009 2008 Inc/(Dec)

Revenues
Non-interest revenues
Discount revenue $ 3,373 $ 3,848 (12 ) % $ 9,744 $ 11,557 (16 ) %
Net card fees 538 541 (1 ) 1,602 1,614 (1 )
Travel commissions and fees 383 499 (23 ) 1,155 1,566 (26 )
Other commissions and fees 448 573 (22 ) 1,340 1,785 (25 )
Securitization income, net 71 200 (65 ) 210 871 (76 )
Other 449 553 (19 ) 1,569 1,591 (1 )
Total non-interest revenues 5,262 6,214 (15 ) 15,620 18,984 (18 )
Interest income
Interest and fees on loans 1,059 1,560 (32 ) 3,432 4,795 (28 )
Interest and dividends on investment securities 229 200 15 579 603 (4 )
Deposits with banks and other 9 74 (88 ) 48 235 (80 )
Total interest income 1,297 1,834 (29 ) 4,059 5,633 (28 )
Interest expense
Deposits 109 109 - 299 381 (22 )
Short-term borrowings 2 114 (98 ) 36 411 (91 )
Long-term debt and other 432 661 (35 ) 1,310 1,966 (33 )
Total interest expense 543 884 (39 ) 1,645 2,758 (40 )
Net interest income 754 950 (21 ) 2,414 2,875 (16 )
Total revenues net of interest expense 6,016 7,164 (16 ) 18,034 21,859 (17 )
Provisions for losses
Charge card 143 351 (59 ) 716 937 (24 )
Cardmember lending 989 958 3 3,706 3,304 12
Other 46 50 (8 ) 143 153 (7 )
Total provisions for losses 1,178 1,359 (13 ) 4,565 4,394 4
Total revenues net of interest expense after provisions for losses 4,838 5,805 (17 ) 13,469 17,465 (23 )

Expenses
Marketing and promotion 504 649 (22 ) 1,201 1,906 (37 )
Cardmember rewards 983 1,132 (13 ) 2,858 3,301 (13 )
Cardmember services 132 148 (11 ) 374 402 (7 )
Salaries and employee benefits 1,261 1,465 (14 ) 3,884 4,430 (12 )
Professional services 575 608 (5 ) 1,693 1,764 (4 )
Occupancy and equipment 374 398 (6 ) 1,124 1,185 (5 )
Communications 105 118 (11 ) 315 348 (9 )
Other, net (14 ) 209 # 140 816 (83 )
Total 3,920 4,727 (17 ) 11,589 14,152 (18 )
Pretax income from continuing operations 918 1,078 (15 ) 1,880 3,313 (43 )
Income tax provision 276 217 27 453 748 (39 )
Income from continuing operations 642 861 (25 ) 1,427 2,565 (44 )
Loss from discontinued operations, net of tax (2 ) (46 ) (96 ) (13 ) (106 ) (88 )
Net income $ 640 $ 815 (21 ) $ 1,414 $ 2,459 (42 )
Income from continuing operations attributable to common shareholders (A) $ 634 $ 856 (26 ) $ 1,108 $ 2,551 (57 )
Net income attributable to common shareholders (A) $ 632 $ 810 (22 ) $ 1,095 $ 2,445 (55 )

# - Denotes a variance of more than 100%.

(A) Represents income from continuing operations or net income, as applicable, less (i) accelerated preferred dividend accretion of $212 million for the nine months ended September 30, 2009 due to the repurchase of $3.39 billion of preferred shares issued as part of the Capital Purchase Program (CPP), (ii) preferred shares dividends and related accretion of $94 million for the nine months ended September 30, 2009, and (iii) earnings allocated to participating share awards and other items of $8 million and
$5 million for the three months ended September 30, 2009 and 2008, respectively, and $13 million and $14 million for the nine months ended September 30, 2009 and 2008, respectively.

(Preliminary)
American Express Company
Condensed Consolidated Balance Sheets

(Billions)

September 30, December 31,
2009 2008

Assets
Cash $ 19 $ 21
Accounts receivable 35 37
Investment securities 24 13
Loans 29 41
Other assets 13 14
Total assets $ 120 $ 126

Liabilities and Shareholders' Equity
Customer deposits $ 24 $ 15
Short-term borrowings 2 9
Long-term debt 53 60
Other liabilities 27 30
Total liabilities 106 114

Shareholders' equity 14 12
Total liabilities and shareholders' equity $ 120 $ 126

(Preliminary)
American Express Company
Financial Summary

(Millions)
Quarters Ended Nine Months Ended
September 30, Percentage September 30, Percentage
2009 2008 Inc/(Dec) 2009 2008 Inc/(Dec)

Total revenues net of interest expense
U.S. Card Services $ 2,903 $ 3,459 (16 ) % $ 8,782 $ 10,774 (18 ) %
International Card Services 1,148 1,232 (7 ) 3,262 3,683 (11 )
Global Commercial Services 997 1,200 (17 ) 2,944 3,652 (19 )
Global Network & Merchant Services 963 1,071 (10 ) 2,709 3,157 (14 )
6,011 6,962 (14 ) 17,697 21,266 (17 )
Corporate & Other,
including adjustments and eliminations 5 202 (98 ) 337 593 (43 )

CONSOLIDATED TOTAL REVENUES NET OF INTEREST EXPENSE $ 6,016 $ 7,164 (16 ) $ 18,034 $ 21,859 (17 )

Pretax income (loss) from continuing operations
U.S. Card Services $ 139 $ 364 (62 ) $ (243 ) $ 1,092 #
International Card Services 127 1 # 184 191 (4 )
Global Commercial Services 170 191 (11 ) 397 735 (46 )
Global Network & Merchant Services 358 397 (10 ) 1,083 1,187 (9 )
794 953 (17 ) 1,421 3,205 (56 )
Corporate & Other 124 125 (1 ) 459 108 #

PRETAX INCOME FROM CONTINUING OPERATIONS $ 918 $ 1,078 (15 ) $ 1,880 $ 3,313 (43 )

Net income (loss)
U.S. Card Services $ 109 $ 244 (55 ) $ (116 ) $ 788 #
International Card Services 127 67 90 230 315 (27 )
Global Commercial Services 116 134 (13 ) 273 512 (47 )
Global Network & Merchant Services 240 258 (7 ) 713 780 (9 )
592 703 (16 ) 1,100 2,395 (54 )

Corporate & Other 50 158 (68 ) 327 170 92
Income from continuing operations 642 861 (25 ) 1,427 2,565 (44 )
Loss from discontinued operations, net of tax (2 ) (46 ) (96 ) (13 ) (106 ) (88 )

NET INCOME $ 640 $ 815 (21 ) $ 1,414 $ 2,459 (42 )

# - Denotes a variance of more than 100%.

(Preliminary)
American Express Company
Financial Summary (continued)

Quarters Ended Nine Months Ended
September 30, Percentage September 30, Percentage
2009 2008 Inc/(Dec) 2009 2008 Inc/(Dec)
EARNINGS PER COMMON SHARE

BASIC
Income from continuing operations attributable to common shareholders $ 0.54 $ 0.74 (27) % $ 0.95 $ 2.21 (57) %
Loss from discontinued operations - (0.04) # (0.01) (0.09) (89)
Net income attributable to common shareholders $ 0.54 $ 0.70 (23) % $ 0.94 $ 2.12 (56) %

Average common shares outstanding (millions) 1,178 1,154 2 % 1,164 1,154 1 %

DILUTED
Income from continuing operations attributable to common shareholders $ 0.54 $ 0.74 (27) % $ 0.95 $ 2.20 (57) %
Loss from discontinued operations (0.01) (0.04) (75) (0.01) (0.10) (90)
Net income attributable to common shareholders $ 0.53 $ 0.70 (24) % $ 0.94 $ 2.10 (55) %

Average common shares outstanding (millions) 1,181 1,158 2 % 1,166 1,161 - %

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

Selected Statistical Information

Quarters Ended Nine Months Ended
September 30, Percentage September 30, Percentage
2009 2008 Inc/(Dec) 2009 2008 Inc/(Dec)

Return on average equity (A) 11.7% 27.8% 11.7% 27.8%
Return on average common equity (A) 10.4% 27.6% 10.4% 27.6%
Return on average tangible common equity (A) 13.5% 34.2% 13.5% 34.2%
Common shares outstanding (millions) 1,189 1,160 3 % 1,189 1,160 3 %
Book value per common share $ 11.72 $ 10.79 9 % $ 11.72 $ 10.79 9 %
Shareholders' equity (billions) $ 13.9 $ 12.5 11 % $ 13.9 $ 12.5 11 %

# - Denotes a variance of more than 100%.

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

To view full financial tables, go to http://ir.americanexpress.com.

American Express Company
Media:
Joanna Lambert, 212-640-9668
joanna.g.lambert@aexp.com
or
Michael O`Neill, 212-640-5951
mike.o`neill@aexp.com
or
Investors/Analysts:
Malkah Groner, 212-640-6657
malkah.y.groner@aexp.com
or
Ron Stovall, 212-640-5574
ronald.stovall@aexp.com

American Express Company

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