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Published: 2024-04-19 07:02:18 ET
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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)
Q1'24Q4'23Q3'23Q2'23Q1'23YOY % change
Non-interest revenues
Discount revenue$8,380 $8,580 $8,408 $8,481 $7,947 5 
Net card fees1,974 1,907 1,846 1,789 1,713 15 
Service fees and other revenue 1,292 1,294 1,261 1,232 1,218 6 
Processed revenue386 414 424 447 420 (8)
Total non-interest revenues12,032 12,195 11,939 11,949 11,298 6 
Interest income
Interest on loans5,058 4,910 4,635 4,213 3,939 28 
Interest and dividends on investment securities25 31 33 34 30 (17)
Deposits with banks and other692 611 572 528 447 55 
Total interest income5,775 5,552 5,240 4,775 4,416 31 
Interest expense
Deposits1,427 1,385 1,290 1,196 994 44 
Long-term debt and other579 563 508 474 439 32 
Total interest expense2,006 1,948 1,798 1,670 1,433 40 
Net interest income3,769 3,604 3,442 3,105 2,983 26 
Total revenues net of interest expense15,801 15,799 15,381 15,054 14,281 11 
Provisions for credit losses
Card Member receivables196 222 206 230 222 (12)
Card Member loans1,014 1,148 982 923 786 29 
Other59 67 45 45 47 26 
Total provisions for credit losses1,269 1,437 1,233 1,198 1,055 20 
Total revenues net of interest expense after provisions for credit losses14,532 14,362 14,148 13,856 13,226 10 
Expenses
Card Member rewards3,774 3,851 3,794 3,956 3,766 — 
Business development1,392 1,483 1,393 1,388 1,393 — 
Card Member services1,171 1,063 973 949 983 19 
Marketing1,476 1,228 1,236 1,408 1,341 10 
Salaries and employee benefits2,098 2,131 2,047 1,875 2,014 4 
Professional services455 645 477 467 440 3 
Data processing and equipment657 764 704 677 660 — 
Other, net364 685 424 402 462 (21)
Total expenses11,387 11,850 11,048 11,122 11,059 3 
Pretax income3,145 2,512 3,100 2,734 2,167 45 
Income tax provision708 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 rate22.5 %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 outstanding721 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 outstanding722 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)
 Q1'24Q4'23Q3'23Q2'23Q1'23YOY % change
Assets      
Cash & cash equivalents$54 $47 $44 $43 $41 32 
Card Member receivables, less reserves60 60 59 58 57 5 
Card Member loans, less reserves121 121 113 110 105 15 
Investment securities2 2 3 4 4 (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 borrowings2 1 2 2 2 — 
Long-term debt49 48 46 47 41 20 
Other (B)55 55 52 46 46 20 
Total liabilities240 233 224 218 210 14 
Shareholders' Equity29 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
 
 Q1'24Q4'23Q3'23Q2'23Q1'23
Shares Outstanding (in millions) 
Beginning of period723 729 736 743 743 
Repurchase of common shares(5)(6)(8)(7)(1)
Net impact of employee benefit plans and others1 — 1 — 1 
End of period719 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 111.3 %11.3 %11.5 %11.4 %11.4 %
Total13.2 %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 Leverage9.8 %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) 
 Q1'24Q4'23Q3'23Q2'23Q1'23YOY % change
Network volumes (E)$419.2 $434.4 $420.2 $426.6 $398.9 5 
Billed business (E)$367.0 $379.8 $366.2 $368.1 $345.5 6 
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 5 
Proprietary cards-in-force81.1 80.2 79.6 79.3 78.0 4 
Basic cards-in-force (millions) (F)119.8 118.7 115.9 116.0 113.7 5 
Proprietary basic cards-in-force62.3 61.7 61.2 61.0 60.1 4 
Average proprietary basic Card Member spending (dollars)$5,919 $6,179 $6,000 $6,075 $5,792 2 
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
 ReportedFX-Adjusted (H)
 Q1'24Q4'23Q3'23Q2'23Q1'23Q1'24Q4'23Q3'23Q2'23Q1'23
Network volumes (E)5%5%7%8%14%6%5%6%9%16%
Billed business (E)668815767816
U.S. Consumer Services8791016n/an/an/an/an/a
Commercial Services211210211210
International Card Services11141815211313151729
Processed volumes (E)(2)(2)(3)982(1)(1)1315
Merchant industry billed business
Goods & Services (G&S) spend (72% of Q1'24 billed business)6566865669
T&E spend (28% of Q1'24 billed business)8913143789131439
Airline spend (8% of Q1'24 billed business)8713125796121260

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)
 Q1'24Q4'23Q3'23Q2'23Q1'23YOY % 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 fees1,014 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 6 #
Ending balance $5,271 $5,118 $4,721 $4,390 $4,053 30 
% of loans4.2 %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 4 
Credit loss reserves (millions)
Beginning balance$174 $174 $210 $223 $229 (24)
Provisions - principal and fees196 222 206 230 222 (12)
Net write-offs - principal and fees less recoveries(217)(223)(241)(243)(230)(6)
Other (K)(2)1 (1)— 2 #
Ending balance$151 $174 $174 $210 $223 (32)
% of receivables0.3 %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)
 Q1'24Q4'23Q3'23Q2'23Q1'23YOY % 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 #
Provisions53 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 loans1.8 %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 
Provisions6 15 6 2 7 (14)
Net write-offs(6)(16)(3)(3)(3)#
Other (K)— 1 — — (1)#
Ending balance$27 $27 $27 $24 $25 8 
% of other receivables0.7 %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 OtherConsolidated
Q1'24     
Non-interest revenues$4,766 $3,194 $2,437 $1,655 $(20)$12,032 
Interest income3,481 1,005 583 17 689 5,775 
Interest expense748 414 307 (198)735 2,006 
Total revenues net of interest expense7,499 3,785 2,713 1,870 (66)15,801 
Total provisions for credit losses727 355 182 6 (1)1,269 
Total revenues net of interest expense after provisions for credit losses6,772 3,430 2,531 1,864 (65)14,532 
Card Member rewards, business development, Card Member services and marketing4,075 1,819 1,555 352 12 7,813 
Salaries and employee benefits and other operating expenses1,084 733 724 495 538 3,574 
Total expenses5,159 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 income2,775 706 467 14 454 4,416 
Interest expense551 321 224 (131)468 1,433 
Total revenues net of interest expense6,583 3,492 2,510 1,741 (45)14,281 
Total provisions for credit losses584 283 181 6 1 1,055 
Total revenues net of interest expense after provisions for credit losses5,999 3,209 2,329 1,735 (46)13,226 
Card Member rewards, business development, Card Member services and marketing3,813 1,854 1,419 388 9 7,483 
Salaries and employee benefits and other operating expenses1,056 725 721 462 612 3,576 
Total expenses4,869 2,579 2,140 850 621 11,059 
Pretax income (loss)$1,130 $630 $189 $885 $(667)$2,167 
YOY % change
Non-interest revenues9 3 7 4 35 6 
Interest income25 42 25 21 52 31 
Interest expense36 29 37 (51)57 40 
Total revenues net of interest expense14 8 8 7 (47)11 
Total provisions for credit losses24 25 1 — #20 
Total revenues net of interest expense after provisions for credit losses13 7 9 7 (41)10 
Card Member rewards, business development, Card Member services and marketing7 (2)10 (9)33 4 
Salaries and employee benefits and other operating expenses3 1 — 7 (12)— 
Total expenses6 (1)6 — (11)3 
Pretax income (loss)43 39 33 15 8 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)
 Q1'24Q4'23Q3'23Q2'23Q1'23YOY % change
Non-interest revenues$4,766 $4,782 $4,680 $4,643 $4,359 9 
Interest income3,481 3,399 3,228 2,934 2,775 25 
Interest expense748 786 700 647 551 36 
Net interest income2,733 2,613 2,528 2,287 2,224 23 
Total revenues net of interest expense7,499 7,395 7,208 6,930 6,583 14 
Total provisions for credit losses727 860 752 659 584 24 
Total revenues net of interest expense after provisions for credit losses6,772 6,535 6,456 6,271 5,999 13 
Card Member rewards, business development, Card Member services and marketing4,075 3,811 3,804 3,965 3,813 7 
Salaries and employee benefits and other operating expenses1,084 1,255 1,068 1,056 1,056 3 
Total expenses5,159 5,066 4,872 5,021 4,869 6 
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 8 
Proprietary cards-in-force (millions) (F)44.4 43.8 43.4 43.2 42.4 5 
Proprietary basic cards-in-force (millions) (F)31.1 30.7 30.4 30.2 29.7 5 
Average proprietary basic Card Member spending (dollars)$4,962 $5,229 $5,062 $5,181 $4,822 3 
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 total1.4 %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 2 
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 total0.8 %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)
Q1'24Q4'23Q3'23Q2'23Q1'23YOY % change
Non-interest revenues$3,194 $3,266 $3,257 $3,301 $3,107 3 
Interest income1,005 949 881 792 706 42 
Interest expense414 407 391 364 321 29 
Net interest income591 542 490 428 385 54 
Total revenues net of interest expense3,785 3,808 3,747 3,729 3,492 8 
Total provisions for credit losses355 368 323 339 283 25 
Total revenues net of interest expense after provisions for credit losses3,430 3,440 3,424 3,390 3,209 7 
Card Member rewards, business development, Card Member services and marketing1,819 1,855 1,818 1,895 1,854 (2)
Salaries and employee benefits and other operating expenses733 919 754 782 725 1 
Total expenses2,552 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 2 
Proprietary cards-in-force (millions) (F)15.4 15.4 15.4 15.4 15.2 1 
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 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 total1.5 %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 business1.4 %1.5 %1.4 %1.7 %1.8 %
90+ days past billing as a % of total - corporate0.5 %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)
 Q1'24Q4'23Q3'23Q2'23Q1'23YOY % change
Non-interest revenues$2,437 $2,466 $2,390 $2,349 $2,267 7 
Interest income583 574 538 497 467 25 
Interest expense307 348 285 261 224 37 
Net interest income276 226 253 236 243 14 
Total revenues net of interest expense2,713 2,692 2,643 2,585 2,510 8 
Total provisions for credit losses182 194 154 198 181 1 
Total revenues net of interest expense after provisions for credit losses2,531 2,498 2,489 2,387 2,329 9 
Card Member rewards, business development, Card Member services and marketing1,555 1,488 1,376 1,386 1,419 10 
Salaries and employee benefits and other operating expenses724 866 726 748 721 — 
Total expenses2,279 2,354 2,102 2,134 2,140 6 
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 4 
Proprietary basic cards-in-force (millions) (F)15.8 15.6 15.4 15.4 15.2 4 
Average proprietary basic Card Member spending (dollars)$5,436 $5,684 $5,382 $5,360 $5,110 6 
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 total1.3 %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 business1.0 %1.0 %1.1 %1.2 %1.3 %
90+ days past billing as a % of total - corporate0.5 %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)                 
 Q1'24Q4'23Q3'23Q2'23Q1'23YOY % change
Non-interest revenues$1,655 $1,693 $1,656 $1,675 $1,596 4 
Interest income17 15 14 14 14 21 
Interest expense(198)(233)(181)(174)(131)(51)
Net interest income215 248 195 188 145 48 
Total revenues net of interest expense1,870 1,941 1,851 1,863 1,741 7 
Total provisions for credit losses6 14 6 1 6 — 
Total revenues net of interest expense after provisions for credit losses1,864 1,927 1,845 1,862 1,735 7 
Business development, Card Member services and marketing352 457 390 420 388 (9)
Salaries and employee benefits and other operating expenses495 648 469 479 462 7 
Total expenses847 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 5 
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) 
 
Q1'24Q4'23Q3'23Q2'23Q1'23
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 adjustments57 58 58 58 57 
Earnings allocated to participating share awards and other73 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 shares1,584 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) 
 Q1'24Q4'23Q3'23Q2'23Q1'23
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.
15