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Published: 2023-07-21 00:00:00 ET
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EX-99.2 3 q223exhibit992.htm EX-99.2 Document

Exhibit 99.2
American Express Company(Preliminary)
Consolidated Statements of Income
(Millions, except percentages and per share amounts)
Q2'23Q1'23Q4'22Q3'22Q2'22YOY % changeFY'23FY'22YOY % change
Non-interest revenues
Discount revenue$8,481 $7,947 $8,183 $7,848 $7,873 8 $16,428 $14,708 12 
Net card fees1,789 1,713 1,625 1,541 1,481 21 3,502 2,904 21 
Service fees and other revenue 1,232 1,218 1,181 1,169 1,265 (3)2,450 2,171 13 
Processed revenue447 420 429 420 416 7 867 788 10 
Total non-interest revenues11,949 11,298 11,418 10,978 11,035 8 23,247 20,571 13 
Interest income
Interest on loans4,213 3,939 3,623 3,164 2,707 56 8,152 5,180 57 
Interest and dividends on investment securities34 30 34 27 22 55 64 35 83 
Deposits with banks and other528 447 308 183 70 #975 104 #
Total interest income4,775 4,416 3,965 3,374 2,799 71 9,191 5,319 73 
Interest expense
Deposits1,196 994 778 440 187 #2,190 309 #
Long-term debt and other474 439 429 356 252 88 913 451 #
Total interest expense1,670 1,433 1,207 796 439 #3,103 760 #
Net interest income3,105 2,983 2,758 2,578 2,360 32 6,088 4,559 34 
Total revenues net of interest expense15,054 14,281 14,176 13,556 13,395 12 29,335 25,130 17 
Provisions for credit losses
Card Member receivables230 222 244 165 138 67 452 218 #
Card Member loans923 786 757 596 272 #1,709 161 #
Other45 47 26 17 — — 92 (2)#
Total provisions for credit losses1,198 1,055 1,027 778 410 #2,253 377 #
Total revenues net of interest expense after provisions for credit losses13,856 13,226 13,149 12,778 12,985 7 27,082 24,753 9 
Expenses
Card Member rewards3,956 3,766 3,729 3,571 3,591 10 7,722 6,702 15 
Business development1,388 1,393 1,302 1,194 1,404 (1)2,781 2,447 14 
Card Member services949 983 881 774 678 40 1,932 1,304 48 
Marketing1,408 1,341 1,274 1,458 1,502 (6)2,749 2,726 1 
Salaries and employee benefits1,875 2,014 2,034 1,748 1,816 3 3,889 3,470 12 
Professional services467 440 601 500 501 (7)907 973 (7)
Data processing and equipment677 660 732 651 623 9 1,337 1,223 9 
Other, net402 462 725 423 327 23 864 653 32 
Total expenses11,122 11,059 11,278 10,319 10,442 7 22,181 19,498 14 
Pretax income2,734 2,167 1,871 2,459 2,543 8 4,901 5,255 (7)
Income tax provision560 351 299 580 579 (3)911 1,192 (24)
Net income$2,174 $1,816 $1,572 $1,879 $1,964 11 $3,990 $4,063 (2)
Net income attributable to common shareholders (A)$2,142 $1,788 $1,546 $1,851 $1,934 11 $3,930 $4,003 (2)
Effective tax rate20.5 %16.2 %16.0 %23.6 %22.8 %18.6 %22.7 %
Earnings Per Common Share
Basic
Net income attributable to common shareholders$2.89 $2.41 $2.08 $2.47 $2.57 12 $5.30 $5.30 — 
Average common shares outstanding740 743 745 748 752 (2)741 755 (2)
Diluted
Net income attributable to common shareholders $2.89 $2.40 $2.07 $2.47 $2.57 12 $5.29 $5.30 — 
Average common shares outstanding741 744 746 749 753 (2)742 756 (2)
Cash dividends declared per common share $0.60 $0.60 $0.52 $0.52 $0.52 15 $1.20 $1.04 15 
# - 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)
 Q2'23Q1'23Q4'22Q3'22Q2'22YOY % change
Assets      
Cash & cash equivalents$43 $41 $34 $31 $26 65 
Card Member receivables, less reserves58 57 57 55 56 4 
Card Member loans, less reserves110 105 104 96 92 20 
Investment securities4 4 5 5 4 — 
Other (B)30 29 28 28 27 11 
Total assets$245 $236 $228 $215 $205 20 
Liabilities and Shareholders' Equity      
Customer deposits$123 $121 $110 $103 $96 28 
Short-term borrowings2 2 1 2 2 — 
Long-term debt47 41 43 42 40 18 
Other (B)46 46 49 44 44 5 
Total liabilities218 210 203 191 182 20 
Shareholders' Equity27 26 25 24 23 17 
Total liabilities and shareholders' equity$245 $236 $228 $215 $205 20 
Return on average equity (C)33.0 %28.7 %32.3 %31.9 %34.4 %
Return on average common equity (C)34.6 %30.1 %34.1 %33.6 %36.5 %
Book value per common share (dollars)$34.11 $32.84 $31.12 $29.92 $28.82 18 

See Appendix III for footnote references
2

American Express Company(Preliminary)
Consolidated Capital
 
 Q2'23Q1'23Q4'22Q3'22Q2'22
Shares Outstanding (in millions) 
Beginning of period743 743 747 751 755 
Repurchase of common shares(7)(1)(4)(4)(4)
Net impact of employee benefit plans and others— 1 — — — 
End of period736 743 743 747 751 
Risk-Based Capital Ratios - Basel III ($ in billions) 
Common Equity Tier 1/Risk Weighted Assets (RWA)10.6 %10.6 %10.3 %10.6 %10.3 %
Tier 111.4 %11.4 %11.1 %11.5 %11.2 %
Total13.1 %13.1 %12.8 %13.3 %13.0 %
Common Equity Tier 1$21.8 $21.1 $20.0 $19.3 $18.5 
Tier 1 Capital$23.4 $22.7 $21.6 $20.9 $20.2 
Tier 2 Capital$3.4 $3.3 $3.3 $3.2 $3.2 
Total Capital$26.8 $26.0 $24.9 $24.1 $23.4 
RWA$205.3 $198.7 $194.4 $181.7 $179.2 
Tier 1 Leverage9.9 %10.0 %9.9 %10.1 %10.3 %
Average Total Assets to calculate the Tier 1 Leverage Ratio (D)$237.0 $226.1 $218.6 $207.6 $195.8 

See Appendix III for footnote references
3

American Express Company(Preliminary)
Selected Card Related Statistical Information 
(Billions, except percentages and where indicated) 
 Q2'23Q1'23Q4'22Q3'22Q2'22YOY % changeFY'23FY'22YOY % change
Network volumes (E)$426.6 $398.9 $413.3 $394.4 $394.8 8 $825.5 $745.1 11 
Billed business (E)$368.1 $345.5 $357.4 $339.0 $340.9 8 $713.6 $641.9 11 
Processed volumes (E)$58.5 $53.4 $55.9 $55.4 $53.9 9 $111.9 $103.2 8 
Card Member loans$114.6 $109.1 $108.0 $99.0 $95.4 20 $114.6 $95.4 20 
Cards-in-force (millions) (F)137.9 135.7 133.3 131.4 127.5 8 137.9 127.5 8 
Proprietary cards-in-force79.3 78.0 76.7 75.6 74.2 7 79.3 74.2 7 
Basic cards-in-force (millions) (F)116.0 113.7 111.5 109.9 106.1 9 116.0 106.1 9 
Proprietary basic cards-in-force61.0 60.1 59.1 58.2 56.9 7 61.0 56.9 7 
Average proprietary basic Card Member spending (dollars)$6,075 $5,792 $6,087 $5,886 $6,052 — $11,869 $11,512 3 
Average fee per card (dollars) (G)$91 $88 $85 $82 $81 12 $90 $80 13 

See Appendix III for footnote references
4

American Express Company(Preliminary)
Network Volumes Related Growth 
 YOY % change
 ReportedFX-Adjusted (H)ReportedFX-Adjusted (H)
 Q2'23Q1'23Q4'22Q3'22Q2'22Q2'23Q1'23Q4'22Q3'22Q2'22FY'23FY'23
Network volumes (E)8%14%12%19%25%9%16%16%23%28%11%12%
Billed business (E)8151321278161524301112
U.S. Consumer Services1016152227n/an/an/an/an/a13n/a
Commercial Services21011202721011202766
International Card Services152114212917292637431823
Processed volumes (E)98810121315171919814
Merchant industry billed business
Goods & Services (G&S) spend (73% of Q2'23 worldwide billed business)68713156910161878
T&E spend (27% of Q2'23 worldwide billed business)143734528014393857842425
Airline spend (7% of Q2'23 worldwide billed business)1257621101421260671181483133

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)
 Q2'23Q1'23Q4'22Q3'22Q2'22YOY % changeFY'23FY'22YOY % change
Card Member loans and receivables
Net write-off rate (principal, interest and fees) (J)2.0 %1.7 %1.3 %1.0 %0.9 %1.9 %0.9 %
Net write-off rate (principal only) (J)(L)1.8 %1.6 %1.2 %0.9 %0.8 %1.7 %0.8 %
30+ days past due as a % of total (L)1.2 %1.2 %1.1 %0.9 %0.7 %1.2 %0.7 %
Card Member loans         
Total Card Member loans$114.6 $109.1 $108.0 $99.0 $95.4 20 $114.6 $95.4 20 
Credit loss reserves (millions)
Beginning balance$4,053 $3,747 $3,319 $2,997 $2,981 36 $3,747 $3,305 13 
Provisions - principal, interest and fees923 786 757 596 272 #1,709 161 #
Net write-offs - principal less recoveries(490)(397)(277)(203)(192)#(887)(357)#
Net write-offs - interest and fees less recoveries(107)(89)(68)(56)(55)95 (196)(105)87 
Other (I)11 6 16 (15)(9)#17 (7)#
Ending balance $4,390 $4,053 $3,747 $3,319 $2,997 46 $4,390 $2,997 46 
% of loans3.8 %3.7 %3.5 %3.4 %3.1 %3.8 %3.1 %
% of past due 336 %330 %348 %393 %441 %336 %441 %
Average loans$112.4 $107.7 $103.9 $97.7 $92.4 22 $110.2 $89.7 23 
Net write-off rate (principal, interest and fees) (J) (L)2.1 %1.8 %1.3 %1.1 %1.1 %2.0 %1.0 %
Net write-off rate (principal only) (J) (L)1.7 %1.5 %1.1 %0.8 %0.8 %1.6 %0.8 %
30+ days past due as a % of total (L)1.1 %1.1 %1.0 %0.9 %0.7 %1.1 %0.7 %
Net interest income divided by average Card Member loans (K)11.1 %11.2 %10.5 %10.5 %10.2 %11.1 %10.2 % 
Net interest yield on average Card Member loans (K)11.2 %11.3 %10.8 %10.8 %10.4 %11.2 %10.5 % 
Card Member receivables         
Total Card Member receivables$58.2 $57.5 $57.6 $55.3 $56.0 4 $58.2 $56.0 4 
Credit loss reserves (millions)
Beginning balance$223 $229 $159 $119 $76 #$229 $64 #
Provisions - principal and fees230 222 244 165 138 67 452 218 #
Net write-offs - principal and fees less recoveries(243)(230)(178)(122)(95)#(473)(162)#
Other (I)— 2 4 (3)— — 2 (1)#
Ending balance$210 $223 $229 $159 $119 76 $210 $119 76 
% of receivables0.4 %0.4 %0.4 %0.3 %0.2 %0.4 %0.2 %
Net write-off rate (principal and fees) (J)1.7 %1.6 %1.3 %0.9 %0.7 %1.6 %0.6 %
Net write-off rate (principal only) (J)(L)1.9 %1.9 %1.4 %1.0 %0.8 %1.9 %0.7 % 
30+ days past due as a % of total (L)1.2 %1.4 %1.3 %1.1 %0.8 %1.2 %0.8 % 
# - 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)
 Q2'23Q1'23Q4'22Q3'22Q2'22YOY % changeFY'23FY'22YOY % change
Other loans (B)
Total other loans$6.3 $5.9 $5.4 $4.8 $4.0 58 $6.3 $4.0 58 
Credit loss reserves (millions)
Beginning balance$83 $59 $46 $38 $48 73 $59 $52 13 
Provisions43 40 23 14 (6)#83 (8)#
Net write-offs(28)(16)(10)(6)(4)#(44)(6)#
Other (I)— — — — — — — — — 
Ending balance$98 $83 $59 $46 $38 #$98 $38 #
% of other loans1.6 %1.4 %1.1 %1.0 %1.0 %1.6 %1.0 %
Other receivables (B)
Total other receivables$3.1 $3.0 $3.1 $3.0 $3.0 3 $3.1 $3.0 3 
Credit loss reserves (millions)
Beginning balance$25 $22 $22 $23 $22 14 $22 $25 (12)
Provisions2 7 3 3 6 (67)9 6 50 
Net write-offs(3)(3)(2)(4)(6)(50)(6)(9)(33)
Other (I)— (1)(1)— 1 #(1)1 #
Ending balance$24 $25 $22 $22 $23 4 $24 $23 4 
% of other receivables0.8 %0.8 %0.7 %0.7 %0.8 %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 OtherConsolidated
Q2'23     
Non-interest revenues$4,643 $3,301 $2,349 $1,675 $(19)$11,949 
Interest income2,934 792 497 14 538 4,775 
Interest expense647 364 261 (174)572 1,670 
Total revenues net of interest expense6,930 3,729 2,585 1,863 (53)15,054 
Total provisions for credit losses659 339 198 1 1 1,198 
Total revenues net of interest expense after provisions for credit losses6,271 3,390 2,387 1,862 (54)13,856 
Total expenses5,021 2,677 2,134 899 391 11,122 
Pretax income (loss)$1,250 $713 $253 $963 $(445)$2,734 
Q2'22
Non-interest revenues$4,154 $3,122 $2,140 $1,568 $51 $11,035 
Interest income1,893 468 347 5 86 2,799 
Interest expense136 121 144 (61)99 439 
Total revenues net of interest expense5,911 3,469 2,343 1,634 38 13,395 
Total provisions for credit losses192 97 116 2 3 410 
Total revenues net of interest expense after provisions for credit losses5,719 3,372 2,227 1,632 35 12,985 
Total expenses4,446 2,594 2,044 830 528 10,442 
Pretax income (loss)$1,273 $778 $183 $802 $(493)$2,543 
YOY % change
Non-interest revenues12 6 10 7 #8 
Interest income55 69 43 ##71 
Interest expense##81 ###
Total revenues net of interest expense17 7 10 14 #12 
Total provisions for credit losses##71 (50)(67)#
Total revenues net of interest expense after provisions for credit losses10 1 7 14 #7 
Total expenses13 3 4 8 (26)7 
Pretax income (loss)(2)(8)38 20 10 8 
# - 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)
 Q2'23Q1'23Q4'22Q3'22Q2'22YOY % changeFY'23FY'22YOY % change
Non-interest revenues$4,643 $4,359 $4,416 $4,233 $4,154 12 $9,002 $7,791 16 
Interest income2,934 2,775 2,577 2,251 1,893 55 5,709 3,629 57 
Interest expense647 551 470 274 136 #1,198 239 #
Net interest income2,287 2,224 2,107 1,977 1,757 30 4,511 3,390 33 
Total revenues net of interest expense6,930 6,583 6,523 6,210 5,911 17 13,513 11,181 21 
Total provisions for credit losses659 584 542 403 192 #1,243 76 #
Total revenues net of interest expense after provisions for credit losses6,271 5,999 5,981 5,807 5,719 10 12,270 11,105 10 
Total expenses5,021 4,869 4,695 4,498 4,446 13 9,890 8,300 19 
Pretax segment income$1,250 $1,130 $1,286 $1,309 $1,273 (2)$2,380 $2,805 (15)
(Billions, except percentages and where indicated)
Billed business (E)$155.4 $142.3 $148.9 $140.3 $141.1 10 $297.6 $263.7 13 
Proprietary cards-in-force (millions) (F)43.2 42.4 41.7 41.2 40.3 7 43.2 40.3 7 
Proprietary basic cards-in-force (millions) (F)30.2 29.7 29.2 28.9 28.3 7 30.2 28.3 7 
Average proprietary basic Card Member spending (dollars)$5,181 $4,822 $5,116 $4,908 $5,028 3 $10,005 $9,480 6 
Segment assets$94.9 $90.6 $94.4 $84.8 $82.4 15 $94.9 $82.4 15 
Card Member loans
Total loans$75.6 $72.0 $72.7 $66.3 $63.7 19 $75.6 $63.7 19 
Average loans$74.2 $71.6 $69.4 $65.3 $61.6 20 $73.1 $60.0 22 
Net write-off rate (principal, interest and fees) (J)2.1 %1.9 %1.3 %1.1 %1.1 %2.0 %1.1 % 
Net write-off rate (principal only) (J)1.7 %1.5 %1.1 %0.8 %0.8 %1.6 %0.8 % 
30+ days past due as a % of total1.1 %1.1 %1.0 %0.9 %0.7 %1.1 %0.7 % 
Net interest income divided by average Card Member loans (K)12.4 %12.6 %12.0 %12.0 %11.4 %12.4 %11.4 % 
Net interest yield on average Card Member loans (K)12.1 %12.3 %11.9 %11.9 %11.3 %12.2 %11.3 % 
Card Member receivables
Total receivables$13.7 $13.3 $14.3 $13.2 $13.8 (1)$13.7 $13.8 (1)
Net write-off rate (principal and fees) (J)1.3 %1.3 %1.0 %0.6 %0.5 %1.3 %0.4 % 
Net write-off rate (principal only) (J)1.2 %1.2 %0.9 %0.6 %0.5 %1.2 %0.4 % 
30+ days past due as a % of total0.8 %1.0 %0.9 %0.9 %0.6 %0.8 %0.6 % 
# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references
9

Commercial Services(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
Q2'23Q1'23Q4'22Q3'22Q2'22YOY % changeFY'23FY'22YOY % change
Non-interest revenues$3,301 $3,107 $3,210 $3,145 $3,122 6 $6,408 $5,841 10 
Interest income792 706 635 552 468 69 1,498 883 70 
Interest expense364 321 288 201 121 #685 208 #
Net interest income428 385 347 351 347 23 813 675 20 
Total revenues net of interest expense3,729 3,492 3,557 3,496 3,469 7 7,221 6,516 11 
Total provisions for credit losses339 283 271 196 97 #622 98 #
Total revenues net of interest expense after provisions for credit losses3,390 3,209 3,286 3,300 3,372 1 6,599 6,418 3 
Total expenses2,677 2,579 2,739 2,526 2,594 3 5,256 4,859 8 
Pretax segment income (loss)$713 $630 $547 $774 $778 (8)$1,343 $1,559 (14)
(Billions, except percentages and where indicated)
Billed business (E)$130.2 $125.0 $130.5 $127.6 $127.9 2 $255.2 $241.5 6 
Proprietary cards-in-force (millions) (F)15.4 15.2 14.9 14.6 14.2 8 15.4 14.2 8 
Average proprietary basic Card Member spending (dollars)$8,490 $8,283 $8,816 $8,848 $9,146 (7)$16,775 $17,526 (4)
Segment assets$54.3 $53.8 $51.4 $51.3 $49.4 10 $54.3 $49.4 10 
Card Member loans
Total loans$23.8 $23.1 $21.4 $20.7 $19.4 23 $23.8 $19.4 23 
Average loans$23.5 $22.1 $21.2 $20.1 $18.8 25 $22.8 $17.9 27 
Net write-off rate (principal, interest and fees) (J)1.9 %1.4 %1.1 %0.8 %0.8 %1.7 %0.7 %
Net write-off rate (principal only) (J)1.6 %1.2 %0.9 %0.7 %0.6 %1.4 %0.6 %
30+ days past due as a % of total1.2 %1.1 %0.9 %0.7 %0.6 %1.2 %0.6 %
Net interest income divided by average Card Member loans (K)7.3 %7.1 %6.5 %6.9 %7.4 %7.2 %7.6 %
Net interest yield on average Card Member loans (K)9.6 %9.4 %8.9 %8.9 %8.8 %9.5 %8.9 %
Card Member receivables
Total receivables$27.2 $27.5 $26.9 $27.6 $27.1 — $27.2 $27.1 — 
Net write-off rate (principal and fees) (J)1.5 %1.5 %1.1 %0.7 %0.6 %1.5 %0.5 %
Net write-off rate (principal only) - small business (J)2.1 %2.1 %1.5 %0.9 %0.7 %2.1 %0.6 %
30+ days past due as a % of total - small business1.7 %1.8 %1.6 %1.4 %0.9 %1.7 %0.9 %
90+ days past billing as a % of total - corporate0.5 %0.5 %0.6 %0.6 %0.4 %0.5 %0.4 %
# - Denotes a variance of 100 percent or more.

See Appendix III for footnote references
10

International Card Services(Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages)
 Q2'23Q1'23Q4'22Q3'22Q2'22YOY % changeFY'23FY'22YOY % change
Non-interest revenues$2,349 $2,267 $2,197 $2,066 $2,140 10 $4,616 $3,999 15 
Interest income497 467 418 364 347 43 964 671 44 
Interest expense261 224 209 178 144 81 485 267 82 
Net interest income236 243 209 186 203 16 479 404 19 
Total revenues net of interest expense2,585 2,510 2,406 2,252 2,343 10 5,095 4,403 16 
Total provisions for credit losses198 181 210 176 116 71 379 198 91 
Total revenues net of interest expense after provisions for credit losses2,387 2,329 2,196 2,076 2,227 7 4,716 4,205 12 
Total expenses2,134 2,140 2,211 1,910 2,044 4 4,274 3,778 13 
Pretax segment income$253 $189 $(15)$166 $183 38 $442 $427 4 
(Billions, except percentages and where indicated)
Billed business (E)$81.8 $76.9 $77.1 $70.2 $71.0 15 $158.7 $134.2 18 
Proprietary cards-in-force (millions) (F)20.7 20.4 20.1 19.8 19.6 6 20.7 19.6 6 
Proprietary basic cards-in-force (millions) (F)15.4 15.2 14.9 14.7 14.4 7 15.4 14.4 7 
Average proprietary basic Card Member spending (dollars)$5,360 $5,110 $5,207 $4,824 $4,967 8 $10,473 $9,476 11 
Segment assets$38.2 $36.3 $36.9 $32.9 $33.7 13 $38.2 $33.7 13 
Card Member loans - consumer and small business
Total loans$15.2 $14.0 $13.8 $12.0 $12.3 24 $15.2 $12.3 24 
Average loans $14.7 $13.9 $13.2 $12.3 $12.0 23 $14.4 $11.8 22 
Net write-off rate (principal, interest and fees) (J)2.8 %2.1 %1.7 %1.4 %1.3 %2.5 %1.3 %
Net write-off rate (principal only) (J)2.4 %1.8 %1.4 %1.2 %1.1 %2.1 %1.0 %
30+ days past due as a % of total1.3 %1.4 %1.2 %1.0 %0.9 %1.3 %0.9 %
Net interest income divided by average Card Member loans (K)6.4 %7.0 %6.3 %6.0 %6.7 %6.7 %6.9 %
Net interest yield on average Card Member loans (K)9.0 %9.2 %8.4 %8.0 %8.6 %9.1 %8.7 %
Card Member receivables
Total receivables$17.3 $16.7 $16.4 $14.5 $15.1 15 $17.3 $15.1 15 
Net write-off rate (principal and fees) (J)2.3 %2.1 %1.7 %1.4 %1.1 %2.2 %1.0 %
Net write-off rate (principal only) - consumer and small business (J)2.5 %2.4 %1.9 %1.6 %1.2 %2.4 %1.1 %
30+ days past due as a % of total - consumer and small business1.2 %1.3 %1.3 %1.2 %1.0 %1.2 %1.0 %
90+ days past billing as a % of total - corporate0.5 %0.4 %0.5 %0.5 %0.5 %0.5 %0.5 %

See Appendix III for footnote references
11

Global Merchant and Network Services(Preliminary)
Selected Income Statement and Statistical Information             
(Millions, except percentages)                 
 Q2'23Q1'23Q4'22Q3'22Q2'22YOY % changeFY'23FY'22YOY % change
Non-interest revenues$1,675 $1,596 $1,621 $1,562 $1,568 7 $3,271 $2,940 11 
Interest income14 14 10 6 5 #28 7 #
Interest expense(174)(131)(127)(97)(61)#(305)(105)#
Net interest income188 145 137 103 66 #333 112 #
Total revenues net of interest expense1,863 1,741 1,758 1,665 1,634 14 3,604 3,052 18 
Total provisions for credit losses1 6 1 3 2 (50)7 3 #
Total revenues net of interest expense after provisions for credit losses1,862 1,735 1,757 1,662 1,632 14 3,597 3,049 18 
Total expenses899 850 1,066 870 830 8 1,749 1,578 11 
Pretax segment income$963 $885 $691 $792 $802 20 $1,848 $1,471 26 
(Billions)         
Total network volumes (E)$426.6 $398.9 $413.3 $394.4 $394.8 8 $825.5 $745.1 11 
Segment assets$17.0 $17.1 $20.0 $15.4 $16.0 6 $17.0 $16.0 6 
# - Denotes a variance of 100 percent or more.

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) 
 
Q2'23Q1'23Q4'22Q3'22Q2'22
ROE     
Annualized Net income$8,696 $7,264 $7,514 $7,516 $7,856 
Average shareholders' equity$26,347 $25,352 $23,289 $23,587 $22,809 
Return on average equity (C)33.0 %28.7 %32.3 %31.9 %34.4 %
Reconciliation of ROCE     
Annualized Net income$8,696 $7,264 $7,514 $7,516 $7,856 
Preferred share dividends and equity related adjustments58 57 57 58 58 
Earnings allocated to participating share awards and other69 55 57 57 60 
Net income attributable to common shareholders$8,569 $7,152 $7,400 $7,401 $7,738 
Average shareholders' equity$26,347 $25,352 $23,289 $23,587 $22,809 
Average preferred shares1,584 1,584 1,584 1,584 1,584 
Average common shareholders' equity$24,763 $23,768 $21,705 $22,003 $21,225 
Return on average common equity (C)34.6 %30.1 %34.1 %33.6 %36.5 %

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) 
 Q2'23Q1'23Q4'22Q3'22Q2'22FY'23FY'22
Consolidated       
Net interest income$3,105 $2,983 $2,758 $2,578 $2,360 $6,088$4,559
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M)728 624 525 374 211 1,352 369 
Interest income not attributable to our Card Member loan portfolio (N)(703)(602)(451)(300)(167)(1,305)(272)
Adjusted net interest income (K)$3,130$3,005$2,832$2,652$2,404$6,135$4,656
Average Card Member loans (billions)$112.4 $107.7 $103.9 $97.7 $92.4 $110.2 $89.7 
Net interest income divided by average Card Member loans (K)11.1 %11.2 %10.5 %10.5 %10.2 %11.1 %10.2 %
Net interest yield on average Card Member loans (K)11.2 %11.3 %10.8 %10.8 %10.4 %11.2 %10.5 %
U.S. Consumer Services
Net interest income$2,287 $2,224 $2,107 $1,977 $1,757 $4,511 $3,390 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M)44 36 45 34 26 80 60 
Interest income not attributable to our Card Member loan portfolio (N)(91)(82)(73)(61)(52)(173)(94)
Adjusted net interest income (K)$2,240 $2,178 $2,079 $1,950 $1,731 $4,418 $3,356 
Average Card Member loans (billions)$74.2 $71.6 $69.4 $65.3 $61.6 $73.1 $59.9 
Net interest income divided by average Card Member loans (K)12.4 %12.6 %12.0 %12.0 %11.4 %12.4 %11.4 %
Net interest yield on average Card Member loans (K)12.1 %12.3 %11.9 %11.9 %11.3 %12.2 %11.3 %
Commercial Services
Net interest income$428 $385 $347 $351 $347 $813 $675 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M)178 162 158 124 85 340 148 
Interest income not attributable to our Card Member loan portfolio (N)(46)(38)(32)(24)(18)(84)(34)
Adjusted net interest income (K)$560 $509 $473 $451 $414 $1,069 $789 
Average Card Member loans (billions)$23.5 $22.1 $21.2 $20.1 $18.8 $22.8 $17.9 
Net interest income divided by average Card Member loans (K)7.3 %7.1 %6.5 %6.9 %7.4 %7.2 %7.6 %
Net interest yield on average Card Member loans (K)9.6 %9.4 %8.9 %8.9 %8.8 %9.5 %8.9 %
International Card Services
Net interest income$236 $243 $209 $186 $203 $479 $404 
Exclude:
Interest expense not attributable to our Card Member loan portfolio (M)110 88 82 72 61 198 115 
Interest income not attributable to our Card Member loan portfolio (N)(16)(13)(11)(7)(5)(29)(8)
Adjusted net interest income (K)$330 $318 $280 $251 $259 $648 $511 
Average Card Member loans (billions)$14.7 $14.0 $13.3 $12.4 $12.1 $14.4 $11.8 
Net interest income divided by average Card Member loans (K)6.4 %7.0 %6.3 %6.0 %6.7 %6.7 %6.9 %
Net interest yield on average Card Member loans (K)9.0 %9.2 %8.4 %8.0 %8.6 %9.1 %8.7 %
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 $17 million, $14 million, $12 million, $14 million and $15 million in Q2'23, Q1'23, Q4'22, Q3'22 and Q2'22, respectively; and (ii) dividends on preferred shares of $15 million, $14 million, $14 million, $14 million and $15 million in Q2'23, Q1'23, Q4'22, Q3'22 and Q2'22, 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.
15