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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): April 19, 2024
 
AMERICAN EXPRESS COMPANY
(Exact name of registrant as specified in its charter)
   
New York   1-7657   13-4922250
(State or other jurisdiction of incorporation)   (Commission File Number)   (IRS Employer Identification No.)
200 Vesey Street,
New York, New York 10285
(Address of principal executive offices and zip code)
(212) 640-2000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Shares (par value $0.20 per Share)   AXP   New York Stock Exchange
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

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





Item 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure
The following information is furnished under Item 2.02 – Results of Operations and Financial Condition and Item 7.01 – Regulation FD Disclosure:
On April 19, 2024, American Express Company (the “Company”) issued a press release regarding its financial results for the first quarter of 2024. A copy of such press release is attached to this report as Exhibit 99.1. The Company also made available additional information relating to the financial results for the first quarter of 2024. Such additional financial information is attached to this report as Exhibit 99.2.
Item 9.01    Financial Statements and Exhibits

(d) Exhibits
Exhibit Description
99.1
99.2
104 The cover page of this Current Report on Form 8-K, formatted as inline XBRL.



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SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  AMERICAN EXPRESS COMPANY
  (REGISTRANT)
     
  By: /s/ Kristina V. Fink
    Name:  Kristina V. Fink
    Title:    Corporate Secretary
 
Date: April 19, 2024
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EX-99.1 2 q124exhibit991.htm EX-99.1 Document

EXHIBIT 99.1
NEWS RELEASE NEWS RELEASE NEWS RELEASE NEWS RELEASE
axplogo1a.jpg

Media Contacts:
Giovanna Falbo, Giovanna.Falbo@aexp.com, +1.212.640.0327
Andrew R. Johnson, Andrew.R.Johnson@aexp.com, +1.212.640.8610

Investors/Analysts Contacts:
Kartik Ramachandran, Kartik.Ramachandran@aexp.com, +1.212.640.5574
Michelle A. Scianni, Michelle.A.Scianni@aexp.com, +1.212.640.5574

AMERICAN EXPRESS FIRST-QUARTER REVENUE INCREASED 11% TO $15.8 BILLION AND EPS INCREASED 39% TO $3.33, REFLECTING CONTINUED BUSINESS MOMENTUM

COMPANY REAFFIRMS FULL-YEAR 2024 REVENUE AND EPS GUIDANCE

(Millions, except per share amounts, and where indicated)
Quarters Ended
March 31,
Percentage Inc/(Dec)
2024 2023
Billed Business (Billions)
FX-adjusted 1
$367.0
$345.5
$344.1
6%
7%
Total Revenues Net of Interest Expense
FX-adjusted 1
$15,801
$14,281
$14,230
11%
11%
Net Income $2,437 $1,816 34%
Diluted Earnings Per Common Share 2
$3.33 $2.40 39%
Average Diluted Common Shares Outstanding 722  744  (3)%


New York – April 19, 2024 – American Express Company (NYSE: AXP) today reported first-quarter net income of $2.4 billion, or $3.33 per share, compared with net income of $1.8 billion, or $2.40 per share, a year ago.
“We have started 2024 off strong, with our first-quarter results reflecting the positive trends we have seen in our business the last several years,” said Stephen J. Squeri, Chairman and Chief Executive Officer. “Revenue increased 11 percent from a year earlier to $15.8 billion and EPS increased 39 percent to $3.33.
“Our continued investments in our value propositions, marketing, brand and technology capabilities have helped drive high levels of engagement with our premium customers. Overall Card Member spending grew 7 percent on an FX-adjusted basis, with spending by U.S. consumer Card Members up 8 percent from a year earlier and spending in our International Card Services segment increasing 13 percent on an FX-adjusted basis.
“We continue to attract high-spending, high credit-quality customers to the franchise, with new card acquisitions accelerating sequentially to 3.4 million in the quarter. Our fee-based products accounted for around 70 percent of the new account acquisitions we saw in the quarter, and we continue to see strong demand from Millennial and Gen Z consumers, who accounted for over 60 percent of new consumer account acquisitions globally.

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Our credit metrics remain best in class.
“Based on our results to date and the trends we are seeing in our business, we continue to expect full-year 2024 revenue growth of 9 percent to 11 percent and EPS of $12.65 to $13.15.”
First-quarter consolidated total revenues net of interest expense were $15.8 billion, up 11 percent from $14.3 billion a year ago. The increase was primarily driven by higher net interest income and increased Card Member spending.
Consolidated provisions for credit losses were $1.3 billion, compared with $1.1 billion a year ago. The increase reflected higher net write-offs, partially offset by a lower net reserve build of $148 million, compared with a net reserve build of $320 million a year ago.
Consolidated expenses were $11.4 billion, up 3 percent from $11.1 billion a year ago. The increase primarily reflected higher customer engagement costs, which were driven by higher Card Member spending, increased usage of travel-related benefits and higher marketing investments, partially offset by a $196 million benefit resulting from enhancements to the models for estimating future Membership Rewards redemptions.
The consolidated effective tax rate was 22.5 percent, up from 16.2 percent a year ago, primarily reflecting discrete tax benefits in the prior year.
# # #
This earnings release should be read in conjunction with the company’s statistical tables for the first quarter 2024, which include information regarding our reportable operating segments, available on the American Express Investor Relations website at http://ir.americanexpress.com and in a Form 8-K furnished today with the Securities and Exchange Commission.
An investor conference call will be held at 8:30 a.m. (ET) today to discuss first-quarter results. Live audio and presentation slides for the investor conference call will be available to the general public on the above-mentioned American Express Investor Relations website. A replay of the conference call will be available later today at the same website address.

________________________________
1 As used in this release, FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translations into U.S. dollars (i.e., assumes the foreign exchange rates used to determine results for current period apply to the corresponding prior-year period against which such results are being compared). FX-adjusted revenues is a non-GAAP measure. The company believes the presentation of information on an FX-adjusted basis is helpful to investors by making it easier to compare the company’s performance in one period to that of another period without the variability caused by fluctuations in currency exchange rates.
2 Diluted earnings per common share (EPS) was reduced by the impact of (i) earnings allocated to participating share awards of $18 million and $14 million for the three months ended March 31, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $14 million for both the three months ended March 31, 2024 and 2023.
As used in this release:
•Card Member spending (billed business) represents transaction volumes, including cash advances, on payment products issued by American Express.
•Customer engagement costs represent the aggregate of Card Member rewards, business development, Card Member services, and marketing expenses.
•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.



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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, X.com/americanexpress, and youtube.com/americanexpress.
Key links to products, services and corporate sustainability information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Accertify, Business Blueprint, Resy, corporate card, business travel, diversity and inclusion, corporate sustainability and Environmental, Social, and Governance reports.
Source: American Express Company
Location: Global

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address American Express Company’s current expectations regarding business and financial performance, including management’s outlook for 2024 and long-term growth aspiration, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “continue” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update or revise any forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to, the following:
•the company’s ability to achieve its 2024 earnings per common share (EPS) outlook and grow EPS in the future consistent with the company’s growth aspiration, which will depend in part on revenue growth, credit performance and the effective tax rate remaining consistent with current expectations and the company’s ability to continue investing at high levels in areas that can drive sustainable growth (including its brand, value propositions, customers, colleagues, marketing, technology and coverage), controlling operating expenses, effectively managing risk and executing its share repurchase program, any of which could be impacted by, among other things, the factors identified in the subsequent paragraphs as well as the following: macroeconomic conditions, such as recession risks, changes in interest rates, effects of inflation, labor shortages or higher rates of unemployment, supply chain issues, energy costs and fiscal and monetary policies; geopolitical instability, including the ongoing Ukraine and Israel wars, broader regional hostilities and tensions involving China and the U.S.; the impact of any future contingencies, including, but not limited to, legal costs and settlements, the imposition of fines or monetary penalties, increases in Card Member remediation, investment gains or losses, restructurings, impairments and changes in reserves; issues impacting brand perceptions and the company’s reputation; impacts related to new or renegotiated cobrand and other partner agreements and joint ventures; and the impact of regulation and litigation, which could affect the profitability of the company’s business activities, limit the company’s ability to pursue business opportunities, require changes to business practices or alter the company’s relationships with Card Members, partners and merchants;
•the company’s ability to achieve its 2024 revenue growth outlook and grow revenues net of interest expense in the future consistent with the company’s growth aspiration, which could be impacted by, among other things, the factors identified above and in the subsequent paragraphs, as well as the following: spending volumes and the spending environment not being consistent with expectations, including T&E spend growing slower than expected, further slowing in spend by U.S. small and mid-sized enterprise or U.S. large and global corporate customers, or a general slowdown or increase in volatility in consumer and business spending volumes; changes in foreign currency exchange rates; an inability to address competitive pressures, innovate and expand the company’s products and services, leverage the advantages of the company’s differentiated business model, attract customers across generations and age cohorts, including Millennial and Gen Z customers, and implement strategies and business initiatives, including within the premium consumer space, commercial payments and the global network; the effects of regulatory initiatives on fees; and merchant discount rates changing by a greater or lesser amount than expected;

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•net card fees not performing consistently with expectations, which could be impacted by, among other things, a deterioration in macroeconomic conditions impacting the ability and desire of Card Members to pay card fees; higher Card Member attrition rates; the pace of Card Member acquisition activity and demand for the company’s fee-based products; and the company’s inability to address competitive pressures, develop attractive premium value propositions and implement its strategy of refreshing card products, enhancing and delivering benefits and services and continuing to innovate with respect to its products;
•net interest income, the effects of changes in interest rates and the growth of loans and Card Member receivables outstanding, and the portion of which that is interest bearing, being higher or lower than expectations, which could be impacted by, among other things, the behavior and financial strength of Card Members and their actual spending, borrowing and paydown patterns; the company’s ability to effectively manage underwriting risk and enhance Card Member value propositions to continue to attract premium Card Members; changes in benchmark interest rates, including where such changes affect the company’s assets or liabilities differently than expected; changes in capital and credit market conditions and the availability and cost of capital; credit actions, including line size and other adjustments to credit availability; the yield on Card Member loans not remaining consistent with current expectations; the company’s deposit levels or the interest rates it offers on deposits changing from current expectations; and the effectiveness of the company’s strategies to capture a greater share of existing Card Members’ spending and borrowings, and attract new, and retain existing, customers;
•future credit performance, the level of future delinquency, reserve and write-off rates and the amount and timing of future reserve builds and releases, which will depend in part on macroeconomic factors such as unemployment rates, GDP and the volume of bankruptcies; the ability and willingness of Card Members to pay amounts owed to the company; changes in consumer behavior that affect loan and receivable balances (such as paydown and revolve rates); the credit profiles of new customers acquired; the enrollment in, and effectiveness of, financial relief programs and the performance of accounts as they exit from such programs; the impact of the usage of debt settlement companies; collections capabilities and recoveries of previously written-off loans and receivables; and governmental actions providing forms of relief with respect to certain loans and fees, and the termination of such actions;
•the actual amount to be spent on Card Member rewards and services and business development, and the relationship of these variable customer engagement costs to revenues, which could be impacted by continued changes in macroeconomic conditions and Card Member behavior as it relates to their spending patterns (including the level of spend in bonus categories), the redemption of rewards and offers (including travel redemptions) and usage of travel-related benefits; the costs related to reward point redemptions; further enhancements to product benefits to make them attractive to Card Members and prospective customers, potentially in a manner that is not cost effective; new and renegotiated contractual obligations with business partners; the company’s ability to identify and negotiate partner-funded value for Card Members; and the pace and cost of the expansion of the company’s global lounge collection;
•the actual amount the company spends on marketing in 2024 and beyond and the efficiency of its marketing spending, which will be based in part on continued changes in the macroeconomic and competitive environment and business performance, including the levels of demand for the company’s products; management’s decisions regarding the timing of spending on marketing and the effectiveness of management’s investment optimization process; management’s identification and assessment of attractive investment opportunities; management’s ability to develop premium value propositions and drive customer demand; the receptivity of Card Members and prospective customers to advertising and customer acquisition initiatives; and the company’s ability to realize marketing efficiencies and balance expense control and investments in the business;

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•the company’s ability to control operating expenses, including relative to future revenue growth, and the actual amount spent on operating expenses in 2024 and beyond, which could be impacted by, among other things, salary and benefit expenses to attract and retain talent; a persistent inflationary environment; the company’s ability to realize operational efficiencies, including through automation; management’s decision to increase or decrease spending in such areas as technology, business and product development, sales force, premium servicing and digital capabilities; the company’s ability to innovate efficient channels of customer interactions and the willingness of Card Members to self-service and address issues through digital channels; restructuring activity; supply chain issues; fraud costs; compliance expenses and consulting, legal and other professional services fees, including as a result of litigation or internal and regulatory reviews; regulatory assessments; the level of M&A activity and related expenses, including related to the completion of the company’s sale of Accertify; information or cybersecurity incidents; the payment of fines, penalties, disgorgement, restitution, non-income tax assessments and litigation-related settlements; the performance of Amex Ventures and other of the company’s investments; impairments of goodwill or other assets; and the impact of changes in foreign currency exchange rates on costs, such as due to the devaluation of foreign currencies;
•the company’s tax rate not remaining consistent with expectations, which could be impacted by, among other things, further changes in tax laws and regulation (or the expiration of provisions of tax laws or regulations), the implementation of tax guidelines by jurisdictions, the company’s geographic mix of income, unfavorable tax audits and other unanticipated tax items;
•changes affecting the company’s plans regarding the return of capital to shareholders, which will depend on factors such as the company’s capital levels and regulatory capital ratios; changes in the stress testing and capital planning process and new rulemakings and guidance from the Federal Reserve and other banking regulators, including changes to regulatory capital requirements, such as final rules resulting from the Basel III rule proposal; results of operations and financial condition; credit ratings and rating agency considerations; and the economic environment and market conditions in any given period;
•changes affecting the expected timing for closing the sale of Accertify, the amount of the potential gain the company recognizes upon the closing and the portion of such gain management determines to reinvest back into the business, which will depend on regulatory and other approvals, consultation requirements, the execution of ancillary agreements, the cost and availability of financing for the purchaser to fund the transaction and the potential loss of key customers, vendors and other business partners and management’s decisions regarding future operations, strategies and business initiatives;
•changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure and competitor settlements and mergers that may materially impact the prices charged to merchants that accept American Express cards and surcharging by merchants, the desirability of the company’s premium card products, competition for new and existing cobrand relationships, competition with respect to new products, services and technologies, competition from new and non-traditional competitors and the success of marketing, promotion and rewards programs;
•the company’s ability to grow its leadership in commercial payments and capture future spending growth in this sector, including with respect to small and mid-sized enterprise customers, which will depend in part on competition, the willingness and ability of companies to use credit and charge cards for procurement and other business expenditures as well as use the company’s other products and services for financing needs, perceived or actual difficulties and costs related to setting up B2B payment platforms, the company’s ability to offer attractive value propositions and new products to potential customers, the company’s ability to enhance and expand its payment and lending solutions and build out a multi-product digital ecosystem to integrate its broad product set, which is dependent on the company’s continued investment in capabilities, features, functionalities, platforms and technologies;
•the company’s ability to successfully invest in and compete with respect to technological developments and digital payment and travel solutions, which will depend in part on the company’s success in evolving its products and processes for the digital environment, developing new features in the Amex app and enhancing its digital channels, building partnerships and executing programs with other companies, effectively utilizing artificial intelligence and machine learning and increasing automation to address servicing and other customer needs, and supporting the use of our products as a means of payment through online and mobile channels, all of which will be impacted by investment levels, new product innovation and development and infrastructure to support new products, services, benefits and partner integrations;

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•a failure in or breach of the company’s operational or security systems, processes or infrastructure, or those of third parties, including as a result of cyberattacks, which could compromise the confidentiality, integrity, privacy and/or security of data, disrupt the company’s operations, reduce the use and acceptance of American Express cards and lead to regulatory scrutiny, litigation, remediation and response costs, and reputational harm;
•legal and regulatory developments, which could affect the profitability of the company’s business activities; limit the company’s ability to pursue business opportunities or conduct business in certain jurisdictions; require changes to business practices or governance, 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; impact card fees and rewards programs; exert further pressure on merchant discount rates and the company’s GNS business, as well as result in an increase in surcharging or steering; alter the competitive landscape; subject the company to heightened regulatory scrutiny and result in increased costs related to regulatory oversight and compliance, litigation-related settlements, judgments or expenses, restitution to Card Members or the imposition of fines or monetary 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 global economic and business conditions, consumer and business spending generally, unemployment rates, geopolitical conditions, including further escalations or widening of ongoing military conflicts and regional hostilities, adverse developments affecting third parties, including other financial institutions, merchants or vendors, as well as severe weather conditions, natural disasters, power loss, disruptions in telecommunications, health pandemics, 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, deposit levels 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, 2023 and the company’s other reports filed with the Securities and Exchange Commission.

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EX-99.2 3 q124exhibit992.htm EX-99.2 Document

EXHIBIT 99.2
American Express Company (Preliminary)
Consolidated Statements of Income
(Millions, except percentages and per share amounts)
Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Non-interest revenues
Discount revenue $ 8,380  $ 8,580  $ 8,408  $ 8,481  $ 7,947 
Net card fees 1,974  1,907  1,846  1,789  1,713  15 
Service fees and other revenue 1,292  1,294  1,261  1,232  1,218 
Processed revenue 386  414  424  447  420  (8)
Total non-interest revenues 12,032  12,195  11,939  11,949  11,298 
Interest income
Interest on loans 5,058  4,910  4,635  4,213  3,939  28 
Interest and dividends on investment securities 25  31  33  34  30  (17)
Deposits with banks and other 692  611  572  528  447  55 
Total interest income 5,775  5,552  5,240  4,775  4,416  31 
Interest expense
Deposits 1,427  1,385  1,290  1,196  994  44 
Long-term debt and other 579  563  508  474  439  32 
Total interest expense 2,006  1,948  1,798  1,670  1,433  40 
Net interest income 3,769  3,604  3,442  3,105  2,983  26 
Total revenues net of interest expense 15,801  15,799  15,381  15,054  14,281  11 
Provisions for credit losses
Card Member receivables 196  222  206  230  222  (12)
Card Member loans 1,014  1,148  982  923  786  29 
Other 59  67  45  45  47  26 
Total provisions for credit losses 1,269  1,437  1,233  1,198  1,055  20 
Total revenues net of interest expense after provisions for credit losses 14,532  14,362  14,148  13,856  13,226  10 
Expenses
Card Member rewards 3,774  3,851  3,794  3,956  3,766  — 
Business development 1,392  1,483  1,393  1,388  1,393  — 
Card Member services 1,171  1,063  973  949  983  19 
Marketing 1,476  1,228  1,236  1,408  1,341  10 
Salaries and employee benefits 2,098  2,131  2,047  1,875  2,014 
Professional services 455  645  477  467  440 
Data processing and equipment 657  764  704  677  660  — 
Other, net 364  685  424  402  462  (21)
Total expenses 11,387  11,850  11,048  11,122  11,059 
Pretax income 3,145  2,512  3,100  2,734  2,167  45 
Income tax provision 708  579  649  560  351  #
Net income $ 2,437  $ 1,933  $ 2,451  $ 2,174  $ 1,816  34 
Net income attributable to common shareholders (A) $ 2,405  $ 1,904  $ 2,418  $ 2,142  $ 1,788  35 
Effective tax rate 22.5  % 23.0  % 20.9  % 20.5  % 16.2  %
Earnings Per Common Share
Basic
Net income attributable to common shareholders $ 3.34  $ 2.63  $ 3.30  $ 2.89  $ 2.41  39 
Average common shares outstanding 721  725  732  740  743  (3)
Diluted
Net income attributable to common shareholders $ 3.33  $ 2.62  $ 3.30  $ 2.89  $ 2.40  39 
Average common shares outstanding 722  726  733  741  744  (3)
Cash dividends declared per common share $ 0.70  $ 0.60  $ 0.60  $ 0.60  $ 0.60  17 
# - Denotes a variance of 100 percent or more.
See Appendix III for footnote references
1


American Express Company (Preliminary)
Consolidated Balance Sheets and Related Statistical Information
(Billions, except percentages, per share amounts and where indicated)
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Assets            
Cash & cash equivalents $ 54  $ 47  $ 44  $ 43  $ 41  32 
Card Member receivables, less reserves 60  60  59  58  57 
Card Member loans, less reserves 121  121  113  110  105  15 
Investment securities (50)
Other (B) 32  31  32  30  29  10 
Total assets $ 269  $ 261  $ 251  $ 245  $ 236  14 
Liabilities and Shareholders' Equity            
Customer deposits $ 134  $ 129  $ 124  $ 123  $ 121  11 
Short-term borrowings — 
Long-term debt 49  48  46  47  41  20 
Other (B) 55  55  52  46  46  20 
Total liabilities 240  233  224  218  210  14 
Shareholders' Equity 29  28  27  27  26  12 
Total liabilities and shareholders' equity $ 269  $ 261  $ 251  $ 245  $ 236  14 
Return on average equity (C) 34.3  % 31.5  % 36.3  % 33.0  % 28.7  %
Return on average common equity (C) 35.9  % 33.0  % 38.0  % 34.6  % 30.1  %
Book value per common share (dollars) $ 37.79  $ 36.61  $ 35.32  $ 34.11  $ 32.84  15 

See Appendix III for footnote references
2


American Express Company (Preliminary)
Consolidated Capital
 
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23
Shares Outstanding (in millions)  
Beginning of period 723  729  736  743  743 
Repurchase of common shares (5) (6) (8) (7) (1)
Net impact of employee benefit plans and others —  — 
End of period 719  723  729  736  743 
Risk-Based Capital Ratios - Basel III ($ in billions)  
Common Equity Tier 1/Risk Weighted Assets (RWA) 10.6  % 10.5  % 10.7  % 10.6  % 10.6  %
Tier 1 11.3  % 11.3  % 11.5  % 11.4  % 11.4  %
Total 13.2  % 13.1  % 13.4  % 13.1  % 13.1  %
Common Equity Tier 1 $ 23.7  $ 23.2  $ 22.5  $ 21.8  $ 21.1 
Tier 1 Capital $ 25.3  $ 24.8  $ 24.0  $ 23.4  $ 22.7 
Tier 2 Capital $ 4.1  $ 4.0  $ 4.0  $ 3.4  $ 3.3 
Total Capital $ 29.4  $ 28.8  $ 28.0  $ 26.8  $ 26.0 
RWA $ 223.4  $ 219.7  $ 209.4  $ 205.3  $ 198.7 
Tier 1 Leverage 9.8  % 9.9  % 10.0  % 9.9  % 10.0  %
Average Total Assets to calculate the Tier 1 Leverage Ratio (D) $ 257.6  $ 249.6  $ 240.9  $ 237.0  $ 226.1 

See Appendix III for footnote references
3


American Express Company (Preliminary)
Selected Card Related Statistical Information  
(Billions, except percentages and where indicated)  
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Network volumes (E) $ 419.2  $ 434.4  $ 420.2  $ 426.6  $ 398.9 
Billed business (E) $ 367.0  $ 379.8  $ 366.2  $ 368.1  $ 345.5 
Processed volumes (E) $ 52.2  $ 54.6  $ 54.0  $ 58.5  $ 53.4  (2)
Card Member loans $ 126.6  $ 126.0  $ 118.0  $ 114.6  $ 109.1  16 
Cards-in-force (millions) (F) 142.4  141.2  138.2  137.9  135.7 
Proprietary cards-in-force 81.1  80.2  79.6  79.3  78.0 
Basic cards-in-force (millions) (F) 119.8  118.7  115.9  116.0  113.7 
Proprietary basic cards-in-force 62.3  61.7  61.2  61.0  60.1 
Average proprietary basic Card Member spending (dollars) $ 5,919  $ 6,179  $ 6,000  $ 6,075  $ 5,792 
Average fee per card (dollars) (G) $ 98  $ 95  $ 93  $ 91  $ 88  11 

See Appendix III for footnote references
4


American Express Company (Preliminary)
Network Volumes Related Growth  
  YOY % change
  Reported FX-Adjusted (H)
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 Q1'24 Q4'23 Q3'23 Q2'23 Q1'23
Network volumes (E) 5% 5% 7% 8% 14% 6% 5% 6% 9% 16%
Billed business (E) 6 6 8 8 15 7 6 7 8 16
U.S. Consumer Services 8 7 9 10 16 n/a n/a n/a n/a n/a
Commercial Services 2 1 1 2 10 2 1 1 2 10
International Card Services 11 14 18 15 21 13 13 15 17 29
Processed volumes (E) (2) (2) (3) 9 8 2 (1) (1) 13 15
Merchant industry billed business
Goods & Services (G&S) spend (72% of Q1'24 billed business) 6 5 6 6 8 6 5 6 6 9
T&E spend (28% of Q1'24 billed business) 8 9 13 14 37 8 9 13 14 39
Airline spend (8% of Q1'24 billed business) 8 7 13 12 57 9 6 12 12 60

See Appendix III for footnote references
5


American Express Company (Preliminary)
Selected Credit Related Statistical Information
Card Member Loans and Card Member Receivables
(Billions, except percentages and where indicated)
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Card Member loans and receivables
Net write-off rate (principal, interest and fees) (I) 2.3  % 2.2  % 2.0  % 2.0  % 1.7  %
Net write-off rate (principal only) (I)(J) 2.1  % 2.0  % 1.8  % 1.8  % 1.6  %
30+ days past due as a % of total (J) 1.3  % 1.3  % 1.2  % 1.2  % 1.2  %
Card Member loans            
Total Card Member loans $ 126.6  $ 126.0  $ 118.0  $ 114.6  $ 109.1  16 
Credit loss reserves (millions)
Beginning balance $ 5,118  $ 4,721  $ 4,390  $ 4,053  $ 3,747  37 
Provisions - principal, interest and fees 1,014  1,148  982  923  786  29 
Net write-offs - principal less recoveries (705) (631) (525) (490) (397) 78 
Net write-offs - interest and fees less recoveries (150) (133) (114) (107) (89) 69 
Other (K) (6) 13  (12) 11  #
Ending balance $ 5,271  $ 5,118  $ 4,721  $ 4,390  $ 4,053  30 
% of loans 4.2  % 4.1  % 4.0  % 3.8  % 3.7  %
% of past due 297  % 297  % 316  % 336  % 330  %
Average loans $ 124.7  $ 121.8  $ 116.6  $ 112.4  $ 107.7  16 
Net write-off rate (principal, interest and fees) (I) 2.7  % 2.5  % 2.2  % 2.1  % 1.8  %
Net write-off rate (principal only) (I)(J) 2.3  % 2.1  % 1.8  % 1.7  % 1.5  %
30+ days past due as a % of total (J) 1.4  % 1.4  % 1.3  % 1.1  % 1.1  %
Net interest income divided by average Card Member loans (L) 12.2  % 11.7  % 11.7  % 11.1  % 11.2  %
Net interest yield on average Card Member loans (L) 12.0  % 11.7  % 11.7  % 11.2  % 11.3  %
Card Member receivables            
Total Card Member receivables $ 59.8  $ 60.4  $ 58.8  $ 58.2  $ 57.5 
Credit loss reserves (millions)
Beginning balance $ 174  $ 174  $ 210  $ 223  $ 229  (24)
Provisions - principal and fees 196  222  206  230  222  (12)
Net write-offs - principal and fees less recoveries (217) (223) (241) (243) (230) (6)
Other (K) (2) (1) —  #
Ending balance $ 151  $ 174  $ 174  $ 210  $ 223  (32)
% of receivables 0.3  % 0.3  % 0.3  % 0.4  % 0.4  %
Net write-off rate (principal and fees) (I) 1.5  % 1.5  % 1.7  % 1.7  % 1.6  %
Net write-off rate (principal only) (I)(J) 1.7  % 1.7  % 1.9  % 1.9  % 1.9  %
30+ days past due as a % of total (J) 1.1  % 1.1  % 1.1  % 1.2  % 1.4  %
# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references
6


American Express Company (Preliminary)
Selected Credit Related Statistical Information
Other Loans and Other Receivables
(Billions, except percentages and where indicated)
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Other loans (B)
Total other loans $ 7.6  $ 7.1  $ 6.6  $ 6.3  $ 5.9  29 
Credit loss reserves (millions)
Beginning balance $ 126  $ 108  $ 98  $ 83  $ 59  #
Provisions 53  52  39  43  40  33 
Net write-offs (43) (34) (29) (28) (16) #
Other (K) —  —  —  —  —  — 
Ending balance $ 136  $ 126  $ 108  $ 98  $ 83  64 
% of other loans 1.8  % 1.8  % 1.6  % 1.6  % 1.4  %
Other receivables (B)
Total other receivables $ 3.8  $ 3.7  $ 4.4  $ 3.1  $ 3.0  27 
Credit loss reserves (millions)
Beginning balance $ 27  $ 27  $ 24  $ 25  $ 22  23 
Provisions 15  (14)
Net write-offs (6) (16) (3) (3) (3) #
Other (K) —  —  —  (1) #
Ending balance $ 27  $ 27  $ 27  $ 24  $ 25 
% of other receivables 0.7  % 0.7  % 0.6  % 0.8  % 0.8  %
# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references
7


American Express Company (Preliminary)
Selected Income Statement Information by Segment  
(Millions)      
U.S. Consumer Services
(USCS)
Commercial Services
(CS)
International Card Services
(ICS)
Global Merchant and Network Services
(GMNS)
Corporate and Other Consolidated
Q1'24          
Non-interest revenues $ 4,766  $ 3,194  $ 2,437  $ 1,655  $ (20) $ 12,032 
Interest income 3,481  1,005  583  17  689  5,775 
Interest expense 748  414  307  (198) 735  2,006 
Total revenues net of interest expense 7,499  3,785  2,713  1,870  (66) 15,801 
Total provisions for credit losses 727  355  182  (1) 1,269 
Total revenues net of interest expense after provisions for credit losses 6,772  3,430  2,531  1,864  (65) 14,532 
Card Member rewards, business development, Card Member services and marketing 4,075  1,819  1,555  352  12  7,813 
Salaries and employee benefits and other operating expenses 1,084  733  724  495  538  3,574 
Total expenses 5,159  2,552  2,279  847  550  11,387 
Pretax income (loss) $ 1,613  $ 878  $ 252  $ 1,017  $ (615) $ 3,145 
Q1'23
Non-interest revenues $ 4,359  $ 3,107  $ 2,267  $ 1,596  $ (31) $ 11,298 
Interest income 2,775  706  467  14  454  4,416 
Interest expense 551  321  224  (131) 468  1,433 
Total revenues net of interest expense 6,583  3,492  2,510  1,741  (45) 14,281 
Total provisions for credit losses 584  283  181  1,055 
Total revenues net of interest expense after provisions for credit losses 5,999  3,209  2,329  1,735  (46) 13,226 
Card Member rewards, business development, Card Member services and marketing 3,813  1,854  1,419  388  7,483 
Salaries and employee benefits and other operating expenses 1,056  725  721  462  612  3,576 
Total expenses 4,869  2,579  2,140  850  621  11,059 
Pretax income (loss) $ 1,130  $ 630  $ 189  $ 885  $ (667) $ 2,167 
YOY % change
Non-interest revenues 35 
Interest income 25  42  25  21  52  31 
Interest expense 36  29  37  (51) 57  40 
Total revenues net of interest expense 14  (47) 11 
Total provisions for credit losses 24  25  —  # 20 
Total revenues net of interest expense after provisions for credit losses 13  (41) 10 
Card Member rewards, business development, Card Member services and marketing (2) 10  (9) 33 
Salaries and employee benefits and other operating expenses —  (12) — 
Total expenses (1) —  (11)
Pretax income (loss) 43  39  33  15  45 
# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references
8


U.S. Consumer Services (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Non-interest revenues $ 4,766  $ 4,782  $ 4,680  $ 4,643  $ 4,359 
Interest income 3,481  3,399  3,228  2,934  2,775  25 
Interest expense 748  786  700  647  551  36 
Net interest income 2,733  2,613  2,528  2,287  2,224  23 
Total revenues net of interest expense 7,499  7,395  7,208  6,930  6,583  14 
Total provisions for credit losses 727  860  752  659  584  24 
Total revenues net of interest expense after provisions for credit losses 6,772  6,535  6,456  6,271  5,999  13 
Card Member rewards, business development, Card Member services and marketing 4,075  3,811  3,804  3,965  3,813 
Salaries and employee benefits and other operating expenses 1,084  1,255  1,068  1,056  1,056 
Total expenses 5,159  5,066  4,872  5,021  4,869 
Pretax segment income $ 1,613  $ 1,469  $ 1,584  $ 1,250  $ 1,130  43 
(Billions, except percentages and where indicated)
Billed business (E) $ 153.4  $ 159.7  $ 153.5  $ 155.4  $ 142.3 
Proprietary cards-in-force (millions) (F) 44.4  43.8  43.4  43.2  42.4 
Proprietary basic cards-in-force (millions) (F) 31.1  30.7  30.4  30.2  29.7 
Average proprietary basic Card Member spending (dollars) $ 4,962  $ 5,229  $ 5,062  $ 5,181  $ 4,822 
Segment assets $ 104.3  $ 107.2  $ 98.2  $ 94.9  $ 90.6  15 
Card Member loans
Total loans $ 82.3  $ 83.2  $ 77.7  $ 75.6  $ 72.0  14 
Average loans $ 81.7  $ 80.3  $ 77.1  $ 74.2  $ 71.6  14 
Net write-off rate (principal, interest and fees) (I) 2.8  % 2.5  % 2.2  % 2.1  % 1.9  %
Net write-off rate (principal only) (I) 2.3  % 2.1  % 1.7  % 1.7  % 1.5  %
30+ days past due as a % of total 1.4  % 1.4  % 1.3  % 1.1  % 1.1  %
Net interest income divided by average Card Member loans (L) 13.4  % 12.9  % 13.0  % 12.4  % 12.6  %
Net interest yield on average Card Member loans (L) 13.0  % 12.7  % 12.7  % 12.1  % 12.3  %
Card Member receivables
Total receivables $ 13.6  $ 14.8  $ 13.2  $ 13.7  $ 13.3 
Net write-off rate (principal and fees) (I) 1.5  % 1.3  % 1.3  % 1.3  % 1.3  %
Net write-off rate (principal only) (I) 1.3  % 1.2  % 1.2  % 1.2  % 1.2  %
30+ days past due as a % of total 0.8  % 0.8  % 0.9  % 0.8  % 1.0  %

See Appendix III for footnote references
9


Commercial Services (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Non-interest revenues $ 3,194  $ 3,266  $ 3,257  $ 3,301  $ 3,107 
Interest income 1,005  949  881  792  706  42 
Interest expense 414  407  391  364  321  29 
Net interest income 591  542  490  428  385  54 
Total revenues net of interest expense 3,785  3,808  3,747  3,729  3,492 
Total provisions for credit losses 355  368  323  339  283  25 
Total revenues net of interest expense after provisions for credit losses 3,430  3,440  3,424  3,390  3,209 
Card Member rewards, business development, Card Member services and marketing 1,819  1,855  1,818  1,895  1,854  (2)
Salaries and employee benefits and other operating expenses 733  919  754  782  725 
Total expenses 2,552  2,774  2,572  2,677  2,579  (1)
Pretax segment income $ 878  $ 666  $ 852  $ 713  $ 630  39 
(Billions, except percentages and where indicated)
Billed business (E) $ 127.1  $ 131.3  $ 129.5  $ 130.2  $ 125.0 
Proprietary cards-in-force (millions) (F) 15.4  15.4  15.4  15.4  15.2 
Average proprietary basic Card Member spending (dollars) $ 8,261  $ 8,515  $ 8,434  $ 8,490  $ 8,283  — 
Segment assets $ 58.1  $ 55.4  $ 56.6  $ 54.3  $ 53.8 
Card Member loans
Total loans $ 27.6  $ 25.8  $ 25.2  $ 23.8  $ 23.1  19 
Average loans $ 26.6  $ 25.6  $ 24.4  $ 23.5  $ 22.1  20 
Net write-off rate (principal, interest and fees) (I) 2.6  % 2.4  % 2.0  % 1.9  % 1.4  %
Net write-off rate (principal only) (I) 2.3  % 2.1  % 1.8  % 1.6  % 1.2  %
30+ days past due as a % of total 1.5  % 1.4  % 1.2  % 1.2  % 1.1  %
Net interest income divided by average Card Member loans (L) 9.0  % 8.4  % 8.0  % 7.3  % 7.1  %
Net interest yield on average Card Member loans (L) 10.6  % 10.3  % 10.1  % 9.6  % 9.4  %
Card Member receivables
Total receivables $ 27.0  $ 26.2  $ 28.3  $ 27.2  $ 27.5  (2)
Net write-off rate (principal and fees) (I) 1.4  % 1.5  % 1.5  % 1.5  % 1.5  %
Net write-off rate (principal only) - small business (I) 2.1  % 2.0  % 2.1  % 2.1  % 2.1  %
30+ days past due as a % of total - small business 1.4  % 1.5  % 1.4  % 1.7  % 1.8  %
90+ days past billing as a % of total - corporate 0.5  % 0.4  % 0.4  % 0.5  % 0.5  %

See Appendix III for footnote references
10


International Card Services (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Non-interest revenues $ 2,437  $ 2,466  $ 2,390  $ 2,349  $ 2,267 
Interest income 583  574  538  497  467  25 
Interest expense 307  348  285  261  224  37 
Net interest income 276  226  253  236  243  14 
Total revenues net of interest expense 2,713  2,692  2,643  2,585  2,510 
Total provisions for credit losses 182  194  154  198  181 
Total revenues net of interest expense after provisions for credit losses 2,531  2,498  2,489  2,387  2,329 
Card Member rewards, business development, Card Member services and marketing 1,555  1,488  1,376  1,386  1,419  10 
Salaries and employee benefits and other operating expenses 724  866  726  748  721  — 
Total expenses 2,279  2,354  2,102  2,134  2,140 
Pretax segment income (loss) $ 252  $ 144  $ 387  $ 253  $ 189  33 
(Billions, except percentages and where indicated)
Billed business (E) $ 85.4  $ 88.1  $ 82.7  $ 81.8  $ 76.9  11 
Proprietary cards-in-force (millions) (F) 21.3  21.0  20.8  20.7  20.4 
Proprietary basic cards-in-force (millions) (F) 15.8  15.6  15.4  15.4  15.2 
Average proprietary basic Card Member spending (dollars) $ 5,436  $ 5,684  $ 5,382  $ 5,360  $ 5,110 
Segment assets $ 41.5  $ 42.2  $ 38.6  $ 38.2  $ 36.3  14 
Card Member loans - consumer and small business
Total loans $ 16.7  $ 17.0  $ 15.1  $ 15.2  $ 14.0  19 
Average loans $ 16.4  $ 15.9  $ 15.1  $ 14.7  $ 13.9  18 
Net write-off rate (principal, interest and fees) (I) 2.6  % 2.5  % 2.6  % 2.8  % 2.1  %
Net write-off rate (principal only) (I) 2.2  % 2.1  % 2.1  % 2.4  % 1.8  %
30+ days past due as a % of total 1.3  % 1.3  % 1.4  % 1.3  % 1.4  %
Net interest income divided by average Card Member loans (L) 6.8  % 5.6  % 6.6  % 6.4  % 7.0  %
Net interest yield on average Card Member loans (L) 9.5  % 9.1  % 9.4  % 9.0  % 9.2  %
Card Member receivables
Total receivables $ 19.2  $ 19.4  $ 17.3  $ 17.3  $ 16.7  15 
Net write-off rate (principal and fees) (I) 1.6  % 1.8  % 2.2  % 2.3  % 2.1  %
Net write-off rate (principal only) - consumer and small business (I) 1.7  % 1.8  % 2.4  % 2.5  % 2.4  %
30+ days past due as a % of total - consumer and small business 1.0  % 1.0  % 1.1  % 1.2  % 1.3  %
90+ days past billing as a % of total - corporate 0.5  % 0.5  % 0.6  % 0.5  % 0.4  %

See Appendix III for footnote references
11


Global Merchant and Network Services (Preliminary)
Selected Income Statement and Statistical Information                          
(Millions, except percentages)                                  
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 YOY % change
Non-interest revenues $ 1,655  $ 1,693  $ 1,656  $ 1,675  $ 1,596 
Interest income 17  15  14  14  14  21 
Interest expense (198) (233) (181) (174) (131) (51)
Net interest income 215  248  195  188  145  48 
Total revenues net of interest expense 1,870  1,941  1,851  1,863  1,741 
Total provisions for credit losses 14  — 
Total revenues net of interest expense after provisions for credit losses 1,864  1,927  1,845  1,862  1,735 
Business development, Card Member services and marketing 352  457  390  420  388  (9)
Salaries and employee benefits and other operating expenses 495  648  469  479  462 
Total expenses 847  1,105  859  899  850  — 
Pretax segment income $ 1,017  $ 822  $ 986  $ 963  $ 885  15 
(Billions)            
Total network volumes (E) $ 419.2  $ 434.4  $ 420.2  $ 426.6  $ 398.9 
Segment assets $ 24.9  $ 23.7  $ 20.8  $ 17.0  $ 17.1  46 

See Appendix III for footnote references
12


American Express Company (Preliminary)
Appendix I  
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE)
(Millions, except percentages)  
 
Q1'24 Q4'23 Q3'23 Q2'23 Q1'23
ROE          
Annualized Net income $ 9,748  $ 8,374  $ 9,804  $ 8,696  $ 7,264 
Average shareholders' equity $ 28,410  $ 26,557  $ 27,013  $ 26,347  $ 25,352 
Return on average equity (C) 34.3  % 31.5  % 36.3  % 33.0  % 28.7  %
Reconciliation of ROCE          
Annualized Net income $ 9,748  $ 8,374  $ 9,804  $ 8,696  $ 7,264 
Preferred share dividends and equity related adjustments 57  58  58  58  57 
Earnings allocated to participating share awards and other 73  64  75  69  55 
Net income attributable to common shareholders $ 9,618  $ 8,252  $ 9,671  $ 8,569  $ 7,152 
Average shareholders' equity $ 28,410  $ 26,557  $ 27,013  $ 26,347  $ 25,352 
Average preferred shares 1,584  1,584  1,584  1,584  1,584 
Average common shareholders' equity $ 26,826  $ 24,973  $ 25,429  $ 24,763  $ 23,768 
Return on average common equity (C) 35.9  % 33.0  % 38.0  % 34.6  % 30.1  %

See Appendix III for footnote references
13


American Express Company (Preliminary)
Appendix II  
Net Interest Yield on Average Card Member Loans  
(Millions, except percentages and where indicated)  
  Q1'24 Q4'23 Q3'23 Q2'23 Q1'23
Consolidated          
Net interest income $ 3,769  $ 3,604  $ 3,442  $ 3,105  $ 2,983 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M) 882  821  770  728  624 
Interest income not attributable to our Card Member loan portfolio (N) (916) (824) (767) (703) (602)
Adjusted net interest income (L) $ 3,735  $ 3,601  $ 3,445  $ 3,130  $ 3,005 
Average Card Member loans (billions) $ 124.7  $ 121.8  $ 116.6  $ 112.4  $ 107.7 
Net interest income divided by average Card Member loans (L) 12.2  % 11.7  % 11.7  % 11.1  % 11.2  %
Net interest yield on average Card Member loans (L) 12.0  % 11.7  % 11.7  % 11.2  % 11.3  %
U.S. Consumer Services
Net interest income $ 2,733  $ 2,613  $ 2,528  $ 2,287  $ 2,224 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M) 36  71  41  44  36 
Interest income not attributable to our Card Member loan portfolio (N) (122) (112) (101) (91) (82)
Adjusted net interest income (L) $ 2,647  $ 2,572  $ 2,468  $ 2,240  $ 2,178 
Average Card Member loans (billions) $ 81.7  $ 80.3  $ 77.1  $ 74.2  $ 71.6 
Net interest income divided by average Card Member loans (L) 13.4  % 12.9  % 13.0  % 12.4  % 12.6  %
Net interest yield on average Card Member loans (L) 13.0  % 12.7  % 12.7  % 12.1  % 12.3  %
Commercial Services
Net interest income $ 591  $ 542  $ 490  $ 428  $ 385 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M) 184  186  185  178  162 
Interest income not attributable to our Card Member loan portfolio (N) (74) (65) (55) (46) (38)
Adjusted net interest income (L) $ 701  $ 663  $ 620  $ 560  $ 509 
Average Card Member loans (billions) $ 26.6  $ 25.6  $ 24.4  $ 23.5  $ 22.1 
Net interest income divided by average Card Member loans (L) 9.0  % 8.4  % 8.0  % 7.3  % 7.1  %
Net interest yield on average Card Member loans (L) 10.6  % 10.3  % 10.1  % 9.6  % 9.4  %
International Card Services
Net interest income $ 276  $ 226  $ 253  $ 236  $ 243 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M) 126  156  121  110  88 
Interest income not attributable to our Card Member loan portfolio (N) (15) (16) (17) (16) (13)
Adjusted net interest income (L) $ 387  $ 366  $ 357  $ 330  $ 318 
Average Card Member loans (billions) $ 16.4  $ 15.9  $ 15.1  $ 14.7  $ 14.0 
Net interest income divided by average Card Member loans (L) 6.8  % 5.6  % 6.6  % 6.4  % 7.0  %
Net interest yield on average Card Member loans (L) 9.5  % 9.1  % 9.4  % 9.0  % 9.2  %
See Appendix III for footnote references
14


Appendix III (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) Represents net income, less (i) earnings allocated to participating share awards of $18 million, $14 million, $19 million, $17 million and $14 million in Q1'24, Q4'23, Q3'23, Q2'23 and Q1'23, respectively; and (ii) dividends on preferred shares of $14 million, $15 million, $14 million, $15 million and $14 million in Q1'24, Q4'23, Q3'23, Q2'23 and Q1'23, respectively.
(B) Within assets, "other" includes the following items as presented in our Consolidated Balance Sheets: Other loans, less reserves for credit losses (including merchant financing loans), Premises and equipment and Other assets (including Other receivables); and within liabilities, "other" includes the following items: Accounts payable and Other liabilities.
(C) Return on Average Equity (ROE) is calculated by dividing annualized net income for the period by average shareholders' equity for the period. Return on Average Common Equity (ROCE) is calculated by dividing annualized net income attributable to common shareholders for the period by average common shareholders' equity for the period.
(D) Presented for the purpose of calculating the Tier 1 Leverage Ratio.
(E) Network volumes represent our total volumes. Billed business represents transaction volumes from payment products issued by American Express. Processed volumes represent transaction volumes from cards issued by network partners and those associated with alternative payment solutions.
(F) Cards-in-force represent the number of cards that are issued and outstanding by American Express (proprietary cards-in-force) and cards issued and outstanding under network partnership agreements with banks and other institutions. Basic cards-in-force excludes supplemental cards issued on consumer accounts. Cards-in-force is useful in understanding the size of our Card Member base.
(G) Average fee per card is computed on an annualized basis based on proprietary net card fees divided by average proprietary total cards-in-force.
(H) FX-adjusted information assumes a constant exchange rate between the periods being compared for purposes of conversion into U.S. dollars (e.g., assumes the foreign exchange rates used to determine results for the current period apply to the corresponding prior year period against which such results are being compared).
(I) Our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses and we therefore present a net write-off rate including principal, interest and/or fees. We also present a net write-off rate based on principal losses only to be consistent with industry convention.
(J) Net write-off rate for principal losses only and 30+ days past due metrics represent consumer and small business, and are not available for corporate due to system constraints.
(K) Other includes foreign currency impact on balance sheet re-measurement and translation.
(L) Net interest income divided by average Card Member loans, computed on an annualized basis, 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. Net interest yield on average Card Member loans, a non-GAAP measure, is computed by dividing adjusted net interest income (also a non-GAAP measure) by average Card Member loans, computed on an annualized basis. Adjusted net interest income 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. 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. See Appendix II for calculations of net interest income divided by average Card Member loans and net interest yield on average Card Member loans.
(M) Primarily represents interest expense attributable to maintaining our corporate liquidity pool and funding Card Member receivables.
(N) Primarily represents interest income attributable to Other loans, interest-bearing deposits and the fixed income investment portfolios.
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