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Published: 2023-04-20 00:00:00 ET

EX-99.2 3 q123exhibit992.htm EX-99.2 Document

Exhibit 99.2


American Express Company	(Preliminary)
Consolidated Statements of Income
(Millions, except percentages and per share amounts)

		Q1'23			Q4'22			Q3'22			Q2'22			Q1'22			YOY % change
Non-interest revenues
Discount revenue		$	7,947		$	8,183		$	7,848		$	7,873		$	6,835		16
Net card fees		1,713			1,625			1,541			1,481			1,423			20
Service fees and other revenue		1,218			1,181			1,169			1,265			906			34
Processed revenue		420			429			420			416			372			13
Total non-interest revenues		11,298			11,418			10,978			11,035			9,536			18
Interest income
Interest on loans		3,939			3,623			3,164			2,707			2,473			59
Interest and dividends on investment securities		30			34			27			22			13			#
Deposits with banks and other		447			308			183			70			34			#
Total interest income		4,416			3,965			3,374			2,799			2,520			75
Interest expense
Deposits		994			778			440			187			122			#
Long-term debt and other		439			429			356			252			199			#
Total interest expense		1,433			1,207			796			439			321			#
Net interest income		2,983			2,758			2,578			2,360			2,199			36
Total revenues net of interest expense		14,281			14,176			13,556			13,395			11,735			22
Provisions for credit losses
Card Member receivables		222			244			165			138			80			#
Card Member loans		786			757			596			272			(111)			#
Other		47			26			17			—			(2)			#
Total provisions for credit losses		1,055			1,027			778			410			(33)			#
Total revenues net of interest expense after provisions for credit losses		13,226			13,149			12,778			12,985			11,768			12

Expenses
Card Member rewards		3,766			3,729			3,571			3,591			3,111			21
Business development		1,393			1,302			1,194			1,404			1,043			34
Card Member services		983			881			774			678			626			57
Marketing		1,341			1,274			1,458			1,502			1,224			10
Salaries and employee benefits		2,014			2,034			1,748			1,816			1,654			22
Professional services		440			601			500			501			472			(7)
Data processing and equipment		660			732			651			623			600			10
Other, net		462			725			423			327			326			42
Total expenses		11,059			11,278			10,319			10,442			9,056			22
Pretax income		2,167			1,871			2,459			2,543			2,712			(20)
Income tax provision		351			299			580			579			613			(43)
Net income		$	1,816		$	1,572		$	1,879		$	1,964		$	2,099		(13)
Net income attributable to common shareholders (A)		$	1,788		$	1,546		$	1,851		$	1,934		$	2,069		(14)
Effective tax rate		16.2		%	16.0		%	23.6		%	22.8		%	22.6		%

Earnings Per Common Share
Basic
Net income attributable to common shareholders		$	2.41		$	2.08		$	2.47		$	2.57		$	2.73		(12)
Average common shares outstanding		743			745			748			752			757			(2)
Diluted
Net income attributable to common shareholders		$	2.40		$	2.07		$	2.47		$	2.57		$	2.73		(12)
Average common shares outstanding		744			746			749			753			758			(2)
Cash dividends declared per common share		$	0.60		$	0.52		$	0.52		$	0.52		$	0.52		15
# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references


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


	Q1'23			Q4'22			Q3'22			Q2'22			Q1'22			YOY % change
Assets
Cash & cash equivalents	$	41		$	34		$	31		$	26		$	28		46
Card Member receivables, less reserves	57			57			55			56			53			8
Card Member loans, less reserves	105			104			96			92			86			22
Investment securities	4			5			5			4			4			—
Other (B)	29			28			28			27			25			16
Total assets	$	236		$	228		$	215		$	205		$	196		20

Liabilities and Shareholders' Equity
Customer deposits	$	121		$	110		$	103		$	96		$	91		33
Short-term borrowings	2			1			2			2			2			—
Long-term debt	41			43			42			40			38			8
Other (B)	46			49			44			44			43			7
Total liabilities	210			203			191			182			174			21

Shareholders' Equity	26			25			24			23			22			18
Total liabilities and shareholders' equity	$	236		$	228		$	215		$	205		$	196		20

Return on average equity (C)	28.7		%	32.3		%	31.9		%	34.4		%	37.7		%
Return on average common equity (C)	30.1		%	34.1		%	33.6		%	36.5		%	40.0		%
Book value per common share (dollars)	$	32.84		$	31.12		$	29.92		$	28.82		$	27.56		19

See Appendix III for footnote references


American Express Company			(Preliminary)
Consolidated Capital


	Q1'23			Q4'22			Q3'22			Q2'22			Q1'22
Shares Outstanding (in millions)
Beginning of period	743			747			751			755			761
Repurchase of common shares	(1)			(4)			(4)			(4)			(8)
Net impact of employee benefit plans and others	1			—			—			—			2
End of period	743			743			747			751			755

Risk-Based Capital Ratios - Basel III ($ in billions)
Common Equity Tier 1/Risk Weighted Assets (RWA)	10.6		%	10.3		%	10.6		%	10.3		%	10.4		%
Tier 1	11.4		%	11.1		%	11.5		%	11.2		%	11.4		%
Total	13.1		%	12.8		%	13.3		%	13.0		%	12.8		%

Common Equity Tier 1	$	21.1		$	20.0		$	19.3		$	18.5		$	17.6
Tier 1 Capital	$	22.7		$	21.6		$	20.9		$	20.2		$	19.3
Tier 2 Capital	$	3.3		$	3.3		$	3.2		$	3.2		$	2.4
Total Capital	$	26.0		$	24.9		$	24.1		$	23.4		$	21.6
RWA	$	198.7		$	194.4		$	181.7		$	179.2		$	169.4
Tier 1 Leverage	10.0		%	9.9		%	10.1		%	10.3		%	10.4		%
Average Total Assets to calculate the Tier 1 Leverage Ratio (D)	$	226.1		$	218.6		$	207.6		$	195.8		$	185.3

See Appendix III for footnote references


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


	Q1'23		Q4'22		Q3'22		Q2'22		Q1'22		YOY % change
Network volumes (E)	$	398.9	$	413.3	$	394.4	$	394.8	$	350.3	14
Billed business (E)	$	345.5	$	357.4	$	339.0	$	340.9	$	301.0	15
Processed volumes (E)	$	53.4	$	55.9	$	55.4	$	53.9	$	49.3	8

Card Member loans	$	109.1	$	108.0	$	99.0	$	95.4	$	88.8	23

Cards-in-force (millions) (F)	135.7		133.3		131.4		127.5		124.6		9
Proprietary cards-in-force	78.0		76.7		75.6		74.2		72.8		7

Basic cards-in-force (millions) (F)	113.7		111.5		109.9		106.1		103.3		10
Proprietary basic cards-in-force	60.1		59.1		58.2		56.9		55.8		8

Average proprietary basic Card Member spending (dollars)	$	5,792	$	6,087	$	5,886	$	6,052	$	5,452	6

Average fee per card (dollars) (G)	$	88	$	85	$	82	$	81	$	79	11

See Appendix III for footnote references

American Express Company

(Preliminary)

Network Volumes Related Growth


	YOY % change
	Reported					FX-Adjusted (H)
	Q1'23	Q4'22	Q3'22	Q2'22	Q1'22	Q1'23	Q4'22	Q3'22	Q2'22	Q1'22

Network volumes (E)	14%	12%	19%	25%	30%	16%	16%	23%	28%	32%
Billed business (E)	15	13	21	27	34	16	15	24	30	35
U.S. Consumer Services	16	15	22	27	38	n/a	n/a	n/a	n/a	n/a
Commercial Services	10	11	20	27	31	10	11	20	27	31
International Card Services	21	14	21	29	33	29	26	37	43	40
Processed volumes (E)	8	8	10	12	12	15	17	19	19	15

Merchant industry billed business
Goods & Services (G&S) spend (72% of Q1'23 worldwide billed business)	8	7	13	15	19	9	10	16	18	21
T&E spend (28% of Q1'23 worldwide billed business)	37	34	52	80	119	39	38	57	84	121
Airline spend (7% of Q1'23 worldwide billed business)	57	62	110	142	241	60	67	118	148	246

See Appendix III for footnote references


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


	Q1'23			Q4'22			Q3'22			Q2'22			Q1'22			YOY % change
Card Member loans and receivables
Net write-off rate (principal, interest and fees) (J)	1.7		%	1.3		%	1.0		%	0.9		%	0.8		%
Net write-off rate (principal only) (J)(L)	1.6		%	1.2		%	0.9		%	0.8		%	0.7		%
30+ days past due as a % of total (L)	1.2		%	1.1		%	0.9		%	0.7		%	0.8		%

Card Member loans
Total Card Member loans	$	109.1		$	108.0		$	99.0		$	95.4		$	88.8		23
Credit loss reserves (millions)
Beginning balance	$	3,747		$	3,319		$	2,997		$	2,981		$	3,305		13
Provisions - principal, interest and fees	786			757			596			272			(111)			#
Net write-offs - principal less recoveries	(397)			(277)			(203)			(192)			(165)			#
Net write-offs - interest and fees less recoveries	(89)			(68)			(56)			(55)			(50)			78
Other (I)	6			16			(15)			(9)			2			#
Ending balance	$	4,053		$	3,747		$	3,319		$	2,997		$	2,981		36
% of loans	3.7		%	3.5		%	3.4		%	3.1		%	3.4		%
% of past due	330		%	348		%	393		%	441		%	455		%
Average loans	$	107.7		$	103.9		$	97.7		$	92.4		$	86.8		24
Net write-off rate (principal, interest and fees) (J)	1.8		%	1.3		%	1.1		%	1.1		%	1.0		%
Net write-off rate (principal only) (J)	1.5		%	1.1		%	0.8		%	0.8		%	0.8		%
30+ days past due as a % of total	1.1		%	1.0		%	0.9		%	0.7		%	0.7		%

Net interest income divided by average Card Member loans (K)	11.2		%	10.5		%	10.5		%	10.2		%	10.1		%
Net interest yield on average Card Member loans (K)	11.3		%	10.8		%	10.8		%	10.4		%	10.5		%

Card Member receivables
Total Card Member receivables	$	57.5		$	57.6		$	55.3		$	56.0		$	53.2		8
Credit loss reserves (millions)
Beginning balance	$	229		$	159		$	119		$	76		$	64		#
Provisions - principal and fees	222			244			165			138			80			#
Net write-offs - principal and fees less recoveries	(230)			(178)			(122)			(95)			(67)			#
Other (I)	2			4			(3)			—			(1)			#
Ending balance	$	223		$	229		$	159		$	119		$	76		#
% of receivables	0.4		%	0.4		%	0.3		%	0.2		%	0.1		%
Net write-off rate (principal and fees) (J)	1.6		%	1.3		%	0.9		%	0.7		%	0.5		%
Net write-off rate (principal only) (J)(L)	1.9		%	1.4		%	1.0		%	0.8		%	0.6		%
30+ days past due as a % of total (L)	1.4		%	1.3		%	1.1		%	0.8		%	0.8		%


# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references


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


	Q1'23			Q4'22			Q3'22			Q2'22			Q1'22			YOY % change
Other loans (B)
Total other loans	$	5.9		$	5.4		$	4.8		$	4.0		$	3.3		79
Credit loss reserves (millions)
Beginning balance	$	59		$	46		$	38		$	48		$	52		13
Provisions	40			23			14			(6)			(2)			#
Net write-offs	(16)			(10)			(6)			(4)			(2)			#
Other (I)	—			—			—			—			—			—
Ending balance	$	83		$	59		$	46		$	38		$	48		73
% of other loans	1.4		%	1.1		%	1.0		%	1.0		%	1.5		%

Other receivables (B)
Total other receivables	$	3.0		$	3.1		$	3.0		$	3.0		$	2.7		11
Credit loss reserves (millions)
Beginning balance	$	22		$	22		$	23		$	22		$	25		(12)
Provisions	7			3			3			6			—			—
Net write-offs	(3)			(2)			(4)			(6)			(3)			—
Other (I)	(1)			(1)			—			1			—			—
Ending balance	$	25		$	22		$	22		$	23		$	22		14
% of other receivables	0.8		%	0.7		%	0.7		%	0.8		%	0.8		%


# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references

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
Q1'23
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		6		1		1,055
Total revenues net of interest expense after provisions for credit losses	5,999		3,209		2,329		1,735		(46)		13,226
Total expenses	4,869		2,579		2,140		850		621		11,059
Pretax income (loss)	$	1,130	$	630	$	189	$	885	$	(667)	$	2,167
Q1'22
Non-interest revenues	$	3,637	$	2,719	$	1,859	$	1,372	$	(51)	$	9,536
Interest income	1,736		415		324		2		43		2,520
Interest expense	103		87		123		(44)		52		321
Total revenues net of interest expense	5,270		3,047		2,060		1,418		(60)		11,735
Total provisions for credit losses	(116)		1		82		1		(1)		(33)
Total revenues net of interest expense after provisions for credit losses	5,386		3,046		1,978		1,417		(59)		11,768
Total expenses	3,854		2,265		1,734		748		455		9,056
Pretax income (loss)	$	1,532	$	781	$	244	$	669	$	(514)	$	2,712
YOY % change
Non-interest revenues	20		14		22		16		39		18
Interest income	60		70		44		#		#		75
Interest expense	#		#		82		#		#		#
Total revenues net of interest expense	25		15		22		23		25		22
Total provisions for credit losses	#		#		#		#		#		#
Total revenues net of interest expense after provisions for credit losses	11		5		18		22		22		12
Total expenses	26		14		23		14		36		22
Pretax income (loss)	(26)		(19)		(23)		32		(30)		(20)

# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references


U.S. Consumer Services						(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)


	Q1'23			Q4'22			Q3'22			Q2'22			Q1'22			YOY % change
Non-interest revenues	$	4,359		$	4,416		$	4,233		$	4,154		$	3,637		20
Interest income	2,775			2,577			2,251			1,893			1,736			60
Interest expense	551			470			274			136			103			#
Net interest income	2,224			2,107			1,977			1,757			1,633			36
Total revenues net of interest expense	6,583			6,523			6,210			5,911			5,270			25
Total provisions for credit losses	584			542			403			192			(116)			#
Total revenues net of interest expense after provisions for credit losses	5,999			5,981			5,807			5,719			5,386			11
Total expenses	4,869			4,695			4,498			4,446			3,854			26
Pretax segment income	$	1,130		$	1,286		$	1,309		$	1,273		$	1,532		(26)

(Billions, except percentages and where indicated)
Billed business (E)	$	142.3		$	148.9		$	140.3		$	141.1		$	122.7		16
Proprietary cards-in-force (millions) (F)	42.4			41.7			41.2			40.3			39.8			7
Proprietary basic cards-in-force (millions) (F)	29.7			29.2			28.9			28.3			27.9			6
Average proprietary basic Card Member spending (dollars)	$	4,822		$	5,116		$	4,908		$	5,028		$	4,444		9

Segment assets	$	90.6		$	94.4		$	84.8		$	82.4		$	76.7		18

Card Member loans
Total loans	$	72.0		$	72.7		$	66.3		$	63.7		$	59.1		22
Average loans	$	71.6		$	69.4		$	65.3		$	61.6		$	58.1		23
Net write-off rate (principal, interest and fees) (J)	1.9		%	1.3		%	1.1		%	1.1		%	1.0		%
Net write-off rate (principal only) (J)	1.5		%	1.1		%	0.8		%	0.8		%	0.8		%
30+ days past due as a % of total	1.1		%	1.0		%	0.9		%	0.7		%	0.8		%

Net interest income divided by average Card Member loans (K)	12.6		%	12.0		%	12.0		%	11.4		%	11.2		%
Net interest yield on average Card Member loans (K)	12.3		%	11.9		%	11.9		%	11.3		%	11.3		%

Card Member receivables
Total receivables	$	13.3		$	14.3		$	13.2		$	13.8		$	13.4		(1)
Net write-off rate (principal and fees) (J)	1.3		%	1.0		%	0.6		%	0.5		%	0.3		%
Net write-off rate (principal only) (J)	1.2		%	0.9		%	0.6		%	0.5		%	0.2		%
30+ days past due as a % of total	1.0		%	0.9		%	0.9		%	0.6		%	0.6		%


# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references


Commercial Services										(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
	Q1'23			Q4'22			Q3'22				Q2'22			Q1'22			YOY % change
Non-interest revenues	$	3,107		$	3,210		$	3,145			$	3,122		$	2,719		14
Interest income	706			635			552				468			415			70
Interest expense	321			288			201				121			87			#
Net interest income	385			347			351				347			328			17
Total revenues net of interest expense	3,492			3,557			3,496				3,469			3,047			15
Total provisions for credit losses	283			271			196				97			1			#
Total revenues net of interest expense after provisions for credit losses	3,209			3,286			3,300				3,372			3,046			5
Total expenses	2,579			2,739			2,526				2,594			2,265			14
Pretax segment income (loss)	$	630		$	547		$	774			$	778		$	781		(19)

(Billions, except percentages and where indicated)
Billed business (E)	$	125.0		$	130.5		$	127.6			$	127.9		$	113.5		10
Proprietary cards-in-force (millions) (F)	15.2			14.9			14.6				14.2			13.8			10
Average proprietary basic Card Member spending (dollars)	$	8,283		$	8,816		$	8,848			$	9,146		$	8,371		(1)

Segment assets	$	53.8		$	51.4		$	51.3			$	49.4		$	46.6		15

Card Member loans
Total loans	$	24.0		$	21.4		$	20.7			$	19.4		$	18.1		33
Average loans	$	22.1		$	21.2		$	20.1			$	18.8		$	17.2		28
Net write-off rate (principal, interest and fees) (J)	1.4		%	1.1		%	0.8		%		0.8		%	0.7		%
Net write-off rate (principal only) (J)	1.2		%	0.9		%	0.7		%		0.6		%	0.6		%
30+ days past due as a % of total	1.1		%	0.9		%	0.7		%		0.6		%	0.6		%

Net interest income divided by average Card Member loans (K)	7.1		%	6.5		%	6.9		%		7.4		%	7.8		%
Net interest yield on average Card Member loans (K)	9.4		%	8.9		%	8.9		%		8.8		%	8.9		%

Card Member receivables
Total receivables	$	27.5		$	26.9		$	27.6			$	27.1		$	25.7		7
Net write-off rate (principal and fees) (J)	1.5		%	1.1		%	0.7		%		0.6		%	0.5		%
Net write-off rate (principal only) - small business (J)	2.1		%	1.5		%	0.9		%		0.7		%	0.6		%
30+ days past due as a % of total - small business	1.8		%	1.6		%	1.4		%		0.9		%	0.9		%
90+ days past billing as a % of total - corporate	0.5		%	0.6		%	0.6		%		0.4		%	0.3		%

# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references


International Card Services						(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)


	Q1'23			Q4'22			Q3'22			Q2'22			Q1'22			YOY % change
Non-interest revenues	$	2,267		$	2,197		$	2,066		$	2,140		$	1,859		22
Interest income	467			418			364			347			324			44
Interest expense	224			209			178			144			123			82
Net interest income	243			209			186			203			201			21
Total revenues net of interest expense	2,510			2,406			2,252			2,343			2,060			22
Total provisions for credit losses	181			210			176			116			82			#
Total revenues net of interest expense after provisions for credit losses	2,329			2,196			2,076			2,227			1,978			18
Total expenses	2,140			2,211			1,910			2,044			1,734			23
Pretax segment income	$	189		$	(15)		$	166		$	183		$	244		(23)

(Billions, except percentages and where indicated)
Billed business (E)	$	76.9		$	77.1		$	70.2		$	71.0		$	63.3		21
Proprietary cards-in-force (millions) (F)	20.4			20.1			19.8			19.6			19.3			6
Proprietary basic cards-in-force (millions) (F)	15.2			14.9			14.7			14.4			14.2			7
Average proprietary basic Card Member spending (dollars)	$	5,110		$	5,207		$	4,824		$	4,967		$	4,505		13

Segment assets	$	36.3		$	36.9		$	32.9		$	33.7		$	31.7		15

Card Member loans - consumer and small business
Total loans	$	14.0		$	13.8		$	12.0		$	12.3		$	11.5		22
Average loans	$	13.9		$	13.2		$	12.3		$	12.0		$	11.4		22
Net write-off rate (principal, interest and fees) (J)	2.1		%	1.7		%	1.4		%	1.3		%	1.2		%
Net write-off rate (principal only) (J)	1.8		%	1.4		%	1.2		%	1.1		%	1.0		%
30+ days past due as a % of total	1.4		%	1.2		%	1.0		%	0.9		%	0.9		%

Net interest income divided by average Card Member loans (K)	7.0		%	6.3		%	6.0		%	6.7		%	7.1		%
Net interest yield on average Card Member loans (K)	9.2		%	8.4		%	8.0		%	8.6		%	8.9		%

Card Member receivables
Total receivables	$	16.7		$	16.4		$	14.5		$	15.1		$	14.0		19
Net write-off rate (principal and fees) (J)	2.1		%	1.7		%	1.4		%	1.1		%	0.9		%
Net write-off rate (principal only) - consumer and small business (J)	2.4		%	1.9		%	1.6		%	1.2		%	0.9		%
30+ days past due as a % of total - consumer and small business	1.3		%	1.3		%	1.2		%	1.0		%	0.9		%
90+ days past billing as a % of total - corporate	0.4		%	0.5		%	0.5		%	0.5		%	0.4		%
# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references

Global Merchant and Network Services

(Preliminary)

Selected Income Statement and Statistical Information

(Millions, except percentages)


	Q1'23		Q4'22		Q3'22		Q2'22		Q1'22		YOY % change
Non-interest revenues	$	1,596	$	1,621	$	1,562	$	1,568	$	1,372	16
Interest income	14		10		6		5		2		#
Interest expense	(131)		(127)		(97)		(61)		(44)		#
Net interest income	145		137		103		66		46		#
Total revenues net of interest expense	1,741		1,758		1,665		1,634		1,418		23
Total provisions for credit losses	6		1		3		2		1		#
Total revenues net of interest expense after provisions for credit losses	1,735		1,757		1,662		1,632		1,417		22
Total expenses	850		1,066		870		830		748		14
Pretax segment income	$	885	$	691	$	792	$	802	$	669	32

(Billions)
Total network volumes (E)	$	398.9	$	413.3	$	394.4	$	394.8	$	350.3	14

Segment assets	$	17.1	$	20.0	$	15.4	$	16.0	$	16.3	5

# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references


American Express Company						(Preliminary)
Appendix I
Components of Return on Average Equity (ROE) and Return on Average Common Equity (ROCE)
(Millions, except percentages)



	Q1'23			Q4'22			Q3'22			Q2'22			Q1'22
ROE
Annualized Net income	$	7,264		$	7,514		$	7,516		$	7,856		$	8,396
Average shareholders' equity	$	25,352		$	23,289		$	23,587		$	22,809		$	22,280
Return on average equity (C)	28.7		%	32.3		%	31.9		%	34.4		%	37.7		%

Reconciliation of ROCE
Annualized Net income	$	7,264		$	7,514		$	7,516		$	7,856		$	8,396
Preferred share dividends and equity related adjustments	57			57			58			58			57
Earnings allocated to participating share awards and other	55			57			57			60			64
Net income attributable to common shareholders	$	7,152		$	7,400		$	7,401		$	7,738		$	8,275

Average shareholders' equity	$	25,352		$	23,289		$	23,587		$	22,809		$	22,280
Average preferred shares	1,584			1,584			1,584			1,584			1,584
Average common shareholders' equity	$	23,768		$	21,705		$	22,003		$	21,225		$	20,696
Return on average common equity (C)	30.1		%	34.1		%	33.6		%	36.5		%	40.0		%

See Appendix III for footnote references


American Express Company						(Preliminary)
Appendix II
Net Interest Yield on Average Card Member Loans
(Millions, except percentages and where indicated)


	Q1'23			Q4'22			Q3'22			Q2'22			Q1'22
Consolidated
Net interest income	$	2,983		$	2,758		$	2,578		$	2,360		$	2,199
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M)	624			525			374			211			158
Interest income not attributable to our Card Member loan portfolio (N)	(602)			(451)			(300)			(167)			(105)
Adjusted net interest income (K)	$3,005			$2,832			$2,652			$2,404			$2,252
Average Card Member loans (billions)	$	107.7		$	103.9		$	97.7		$	92.4		$	86.8
Net interest income divided by average Card Member loans (K)	11.2		%	10.5		%	10.5		%	10.2		%	10.1		%
Net interest yield on average Card Member loans (K)	11.3		%	10.8		%	10.8		%	10.4		%	10.5		%

U.S. Consumer Services
Net interest income	$	2,224		$	2,107		$	1,977		$	1,756		$	1,633
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M)	36			45			34			27			34
Interest income not attributable to our Card Member loan portfolio (N)	(82)			(73)			(61)			(52)			(42)
Adjusted net interest income (K)	$	2,178		$	2,079		$	1,950		$	1,731		$	1,625
Average Card Member loans (billions)	$	71.6		$	69.4		$	65.3		$	61.6		$	58.1
Net interest income divided by average Card Member loans (K)	12.6		%	12.0		%	12.0		%	11.4		%	11.2		%
Net interest yield on average Card Member loans (K)	12.3		%	11.9		%	11.9		%	11.3		%	11.3		%

Commercial Services
Net interest income	$	385		$	347		$	351		$	347		$	328
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M)	162			158			124			85			63
Interest income not attributable to our Card Member loan portfolio (N)	(38)			(32)			(24)			(18)			(15)
Adjusted net interest income (K)	$	509		$	473		$	451		$	414		$	376
Average Card Member loans (billions)	$	22.1		$	21.2		$	20.1		$	18.8		$	17.2
Net interest income divided by average Card Member loans (K)	7.1		%	6.5		%	6.9		%	7.4		%	7.8		%
Net interest yield on average Card Member loans (K)	9.4		%	8.9		%	8.9		%	8.8		%	8.9		%

International Card Services
Net interest income	$	243		$	209		$	186		$	203		$	201
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M)	88			82			72			61			54
Interest income not attributable to our Card Member loan portfolio (N)	(13)			(11)			(7)			(5)			(4)
Adjusted net interest income (K)	$	318		$	280		$	251		$	259		$	251
Average Card Member loans (billions)	$	14.0		$	13.3		$	12.4		$	12.1		$	11.5
Net interest income divided by average Card Member loans (K)	7.0		%	6.3		%	6.0		%	6.7		%	7.1		%
Net interest yield on average Card Member loans (K)	9.2		%	8.4		%	8.0		%	8.6		%	8.9		%

See Appendix III for footnote references

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 $14 million, $12 million, $14 million, $15 million and $16 million in Q1'23, Q4'22, Q3'22, Q2'22 and Q1'22, respectively; and (ii) dividends on preferred shares of $14 million, $14 million, $14 million, $15 million and $14 million in Q1'23, Q4'22, Q3'22, Q2'22 and Q1'22, 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)						Other includes foreign currency impact on balance sheet re-measurement and translation.
(J)						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.
(K)						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.
(L)						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.
(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.

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.