American Express Reports Record First Quarter Net Income of $692 Million
Results Reflect Solid Growth in Cardmember Spending and Lending as well as
Strong Credit Quality
NEW YORK, April 25 -- American Express Company
today reported record first quarter net income of $692 million, up 12 percent
from $618 million a year ago. Diluted earnings per share (EPS) rose to $0.53,
up 15 percent from $0.46 a year ago.
(Dollars in millions, except per share amounts)
Quarters Ended Percentage
March 31 Inc/(Dec)
2003 2002
Net Income $692 $618 12%
Revenues $6,023 $5,759 5%
Per Share Net Income
Basic $ 0.53 $ 0.47 13%
Diluted $ 0.53 $ 0.46 15%
Average Common Shares
Outstanding
Basic 1,297 1,325 (2%)
Diluted 1,305 1,335 (2%)
Return on Average Equity* 20.7% 11.5% --
*Computed on a trailing 12-month basis.
The company's return on equity was 20.7 percent.
Revenues on a GAAP basis totaled $6.0 billion, up five percent from $5.8
billion a year ago. A 10 percent rise in spending on American Express cards
and a similar increase in cardmember lending balances more than offset the
impact of weak financial markets on revenues at American Express Financial
Advisors (AEFA).
Consolidated expenses on a GAAP basis totaled $5.0 billion, up three
percent from $4.9 billion a year ago. This increase reflects in part higher
cardmember loyalty expenses and increased card marketing programs. The
increase was partially offset by a lower provision for losses, reflecting
further improvement in credit quality as well as the benefit of lower interest
rates.
"Despite a severe slowdown in the travel sector, continued pressure on
corporate cardmember spending and weak financial markets, we generated our
highest-ever first quarter earnings," said Kenneth I. Chenault, Chairman and
CEO.
"The results for the quarter illustrated some of the fundamental changes
we've been making over the last two years to adapt our business to a more
difficult economic environment. Key factors included:
-- Higher cardmember revenues from retail and everyday spending, which
offset weakness in our traditional travel and entertainment sector.
-- Growth in the cardmember lending portfolio, which provided a strong
complement to our traditional charge card business.
-- Expanded rewards programs, which helped to strengthen cardmember
loyalty and distinguish our products from the competition.
-- Our strong risk management capability, which contributed to
industry-leading credit indicators in the card business.
-- Re-engineering programs, which helped lower our expenses and gave us
the flexibility to re-invest these savings in business-building
initiatives.
-- The shift from the corporate to consumer market, which is producing
stronger and more consistent results at American Express Bank (AEB).
-- An improved risk profile, stronger investment performance and tighter
expense control, which are helping AEFA through prolonged market
weakness and setting the foundation for a turnaround when conditions
improve."
Mr. Chenault added, "Despite some specific areas of weakness, we are
seeing good overall momentum in our business. Fortunately, we entered 2003
with a business plan that took a cautious approach, with no expectation that
economic conditions would significantly improve."
The first quarter revenue growth reflected increases of seven percent at
American Express Travel Related Services (TRS) and 11 percent at AEB,
partially offset by a two percent decline at AEFA. More specifically,
-- Discount revenue from cardmember spending increased seven percent.
-- Net finance charge revenue increased 13 percent from strong growth in
the cardmember lending portfolio.
-- Securitization income rose 27 percent, reflecting a higher level of
securitized lending balances and improved spreads for this portfolio.
-- Investment income and insurance-related revenue rose at AEFA.
These items were partially offset by:
-- A 13 percent decline in management and distribution fees reflecting a
decrease in the assets managed for AEFA clients.
The rise in first quarter expenses reflected an increase of three percent
at TRS, four percent at AEFA, and six percent at AEB. More specifically, the
overall increase reflected:
-- An 11 percent increase in other operating expenses, including an 11
percent increase at TRS. This increase was driven in part by higher
loyalty program costs and the impact of technology and service-related
outsourcing, which transferred certain costs that had previously been
included in human resources expense.
-- A one percent increase in marketing and promotion expenses, including
a seven percent increase at TRS.
-- A one percent increase in human resources expense, as increased costs
related to employee benefits were partially offset by lower staffing
levels and outsourcing.
These items were partially offset by:
-- A 15 percent decline in interest expense, primarily reflecting the
same percent decline in charge card interest expense at TRS.
-- A four percent decrease in total provision for losses. Credit quality
remained very strong in TRS' charge and credit card portfolios as
charge card provision declined 17 percent and lending provision
declined four percent. Reserve coverage ratios remained strong.
Travel Related Services (TRS) reported first quarter 2003 net income of
$584 million, up 25 percent from $467 million a year ago.
On a GAAP basis, TRS' results for both periods included net cardmember
lending securitization gains. Gains for the 2003 quarter totaled $43 million
($28 million after-tax) compared with gains of $42 million ($27 million
after-tax) a year ago.
The following discussion of first quarter results presents TRS segment
results on a "managed basis", as if there had been no cardmember lending
securitization transactions. This is the basis used by management to evaluate
operations and is consistent with industry practice. For further information
about managed basis and reconciliation of GAAP and managed TRS information,
see the "Managed Basis" section below. The AEFA, AEB and Corporate and Other
sections below are presented on a GAAP basis.
Total net revenues increased seven percent from the year-ago period,
reflecting solid increases in spending and borrowing on American Express
cards.
Higher cardmember spending contributed to a seven percent rise in discount
revenue. This was driven by strong growth in the retail and everyday spending
categories. The increase also reflected growth in the number of American
Express Cards, higher average cardmember spending and the continued benefit of
rewards programs.
Net finance charge revenue increased 10 percent, reflecting continued
growth in loan balances. Net card fees also increased.
Total expenses increased three percent. Marketing and promotion expenses
rose eight percent from year-ago levels, reflecting the continued expansion of
card-acquisition programs.
Human resources expense increased two percent as increased costs related
to employee benefits were partially offset by lower staffing levels and
outsourcing. Other operating expenses increased due in part to higher
cardmember loyalty program costs and the impact of technology and
service-related outsourcing, which transferred certain costs that had
previously been included in human resources expense.
The total provision for losses declined seven percent, reflecting very
strong overall credit quality in both the charge card and lending portfolios.
Despite the strong credit quality, reserve coverage of lending receivables was
strengthened in light of continued uncertainty within the economic
environment.
Charge card interest expense decreased 13 percent largely due to lower
funding costs.
American Express Financial Advisors (AEFA) reported first quarter 2003 net
income of $133 million, down 27 percent from $182 million a year ago. Total
revenues decreased two percent.
Continued weakness in the equity markets along with outflows of managed
assets contributed to lower levels of assets under management and management
fees compared with year-ago levels.
On a net basis during the first quarter, AEFA realized a gain of $5
million in its investment portfolio. Year-ago investment gains essentially
offset losses. On a gross basis for the first quarter 2003, AEFA realized
gains of $187 million versus $182 million of impairments and losses, the most
significant of which were airline-related exposures.
Total expenses increased four percent. Human resources expense decreased
four percent, reflecting lower sales-related compensation and continued
benefits of re-engineering and cost controls. Other operating expenses
increased 17 percent. This reflected in part higher expenses resulting from
fewer capitalized costs due to the ongoing impact of the comprehensive review
of Deferred Acquisition Costs-related practices discussed in the third quarter
of 2002.
American Express Bank (AEB) reported net income for the first quarter of
2003 of $19 million up 55 percent from $13 million a year ago.
AEB's results reflect higher foreign currency-related and other revenues,
lower funding costs, and lower provisions for losses primarily due to the
stabilization of write-offs in the consumer lending portfolio. These benefits
were partially offset by higher technology and human resources expenses.
Corporate and Other reported first quarter net expenses of $44 million in
both 2003 and 2002. Results for 2002 include a preferred stock dividend of
$46 million ($39 million after-tax) based on earnings from Lehman Brothers,
which was offset by expenses related to business-building initiatives.
As previously announced, the company began expensing options in 2003. The
effect was not material.
* * *
Managed Basis - TRS
Managed basis means the presentation assumes there have been no
securitization transactions, i.e. all securitized cardmember loans and related
income effects are reflected in the company's balance sheet and income
statement, respectively. The company presents TRS information on a managed
basis because that is the way the company's management views and manages the
business. Management believes that a full picture of trends in the company's
cardmember lending business can only be derived by evaluating the performance
of both securitized and non-securitized cardmember loans.
Asset securitization is just one of several ways for the company to fund
cardmember loans. Use of a managed basis presentation, including
non-securitized and securitized cardmember loans, presents a more accurate
picture of the key dynamics of the cardmember lending business, avoiding
distortions due to the mix of funding sources at any particular point in time.
For example, irrespective of the funding mix, it is important for
management and investors to see metrics, such as changes in delinquencies and
write-off rates, for the entire cardmember lending portfolio because they are
more representative of the economics of the aggregate cardmember relationships
and ongoing business performance and trends over time. It is also important
for investors to see the overall growth of cardmember loans and related
revenue and changes in market share, which are all significant metrics in
evaluating the company's performance and which can only be properly assessed
when all non-securitized and securitized cardmember loans are viewed together
on a managed basis.
The Consolidated Section of this press release and attachments provide the
GAAP presentation for items described on a managed basis.
The following table reconciles the GAAP-basis TRS income statements to the
managed basis information.
Travel Related Services
Selected Financial Information
(Unaudited)
Quarters Ended March 31,
(Dollars in millions)
Preliminary
GAAP Basis
Percentage
2003 2002 Inc/(Dec)
Net Revenues:
Discount Revenue $ 1,976 $ 1,845 7.1%
Net Card Fees 451 423 6.6
Lending:
Finance Charge Revenue 587 532 10.4
Interest Expense 129 127 1.6
Net Finance Charge Revenue 458 405 13.1
Travel Commissions and Fees 340 328 3.7
Travelers Cheque Investment
Income 92 90 2.0
Securitization Income 486 383 26.9
Other Revenues 683 725 (5.8)
Total Net Revenues 4,486 4,199 6.8
Expenses:
Marketing and Promotion 350 326 7.2
Provision for Losses and
Claims:
Charge Card 208 252 (17.2)
Lending 331 346 (4.3)
Other 31 48 (36.5)
Total 570 646 (11.7)
Charge Card Interest Expense 209 244 (14.6)
Human Resources 916 901 1.7
Other Operating Expenses 1,583 1,429 10.7
Restructuring Charges -- (13) --
Total Expenses 3,628 3,533 2.7
Pretax Income 858 666 28.9
Income Tax Provision 274 199 37.8
Net Income $ 584 $ 467 25.2
Travel Related Services
Selected Financial Information
(Unaudited)
Quarters Ended March 31,
(Dollars in millions)
Preliminary
Securitization
Effect Managed Basis
Percentage
2003 2002 2003 2002 Inc/(Dec)
Net Revenues:
Discount Revenue
Net Card Fees
Lending:
Finance Charge
Revenue $ 583 $ 567 $ 1,170 $ 1,099 6.5%
Interest Expense 64 80 193 207 (6.9)
Net Finance Charge
Revenue 519 487 977 892 9.6
Travel Commissions
and Fees
Travelers Cheque
nvestment
Income
Securitization Income (486) (383) -- -- --
Other Revenues 231 149 914 874 4.6
Total Net
Revenues 264 253 4,750 4,452 6.7
Expenses:
Marketing and Promotion (26) (25) 324 301 7.8
Provision for Losses and
Claims:
Charge Card
Lending 307 298 638 644 (1.0)
Other
Total 307 298 877 944 (7.1)
Charge Card Interest
Expense -- (3) 209 241 (13.5)
Human Resources
Other Operating Expenses (17) (17) 1,566 1,412 10.9
Restructuring Charges
Total Expenses $ 264 $ 253 $ 3,892 $ 3,786 2.8
American Express Company (www.americanexpress.com), founded in 1850, is a
global travel, financial and network services provider.
Note: The 2003 First Quarter Earnings Supplement, as well as CFO Gary
Crittenden's presentation from the investor conference call referred to below,
will be available today on the American Express web site at
http://ir.americanexpress.com. An investor conference call to discuss first
quarter earnings results, operating performance and other topics that may be
raised during the discussion will be held at 5:00 p.m. (ET) today. Live audio
of the conference call will be accessible to the general public on the
American Express web site at http://ir.americanexpress.com. A replay of the
conference call also will be available today at the same web site address.
This release includes forward-looking statements, which are subject to
risks and uncertainties. The words "believe," "expect," "anticipate,"
"optimistic," "intend," "plan," "aim," "will," "should," "could," "likely,"
and similar expressions are intended to identify forward-looking statements.
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
company's ability to successfully implement a business model that allows for
significant earnings growth based on revenue growth that is lower than
historical levels, including the ability to improve its operating expense to
revenue ratio both in the short-term and over time, which will depend in part
on the effectiveness of reengineering and other cost-control initiatives, as
well as factors impacting the company's revenues; the company's ability to
grow its business and meet or exceed its return on equity target by
reinvesting approximately 35% of annually-generated capital, and returning
approximately 65% of such capital to shareholders, over time, which will
depend on the company's ability to manage its capital needs and the effect of
business mix, acquisitions and rating agency requirements; the ability to
increase investment spending, which will depend in part on the equity markets
and other factors affecting revenues, and the ability to capitalize on such
investments to improve business metrics; management of credit risk related to
consumer debt, business loans, merchant bankruptcies and other credit
exposures both in the U.S. and internationally; the accuracy of certain
critical accounting estimates, including the provision for credit losses in
the company's outstanding portfolio of loans and receivables, the fair value
of the assets in the company's investment portfolio (including those
investments that are not readily marketable) and the provision for the cost of
Membership Rewards(R); fluctuation in the equity and fixed income markets,
which can affect the amount and types of investment products sold by AEFA, the
market value of its managed assets, management, distribution and other fees
received based on the value of those assets, AEFA's ability to recover
Deferred Acquisition Costs (DAC), as well as the timing of such DAC
amortization, in connection with the sale of annuity, insurance and certain
mutual fund products, and the level of guaranteed minimum death benefits paid
to clients; changes in assumptions relating to DAC, which could impact the
amount of DAC amortization; potential deterioration in AEFA's high-yield and
other investments, which could result in further losses in AEFA's investment
portfolio; the ability of AEFA to sell certain high-yield investments at
expected values and within anticipated timeframes and to maintain its
high-yield portfolio at certain levels in the future; developments relating to
AEFA's platform structure for financial advisors, including the ability to
increase advisor productivity (including adding new clients), increase the
growth of productive new advisors and create efficiencies in the
infrastructure; AEFA's ability to roll out new and attractive products in a
timely manner and effectively manage the economics in selling a growing volume
of non-proprietary products; the ability to improve investment performance in
AEFA's businesses, including attracting and retaining high-quality personnel;
the success, timeliness and financial impact, including costs, cost savings
and other benefits, of re-engineering initiatives being implemented or
considered by the company, including cost management, structural and strategic
measures such as vendor, process, facilities and operations consolidation,
outsourcing (including, among others, technologies operations), relocating
certain functions to lower cost overseas locations, moving internal and
external functions to the Internet to save costs, the scale-back of corporate
lending in certain regions, and planned staff reductions relating to certain
of such re-engineering actions; the ability to control and manage operating,
infrastructure, advertising and promotion and other expenses as business
expands or changes, including balancing the need for longer-term investment
spending; the impact on the company's businesses and uncertainty created by
the September 11th terrorist attacks, and the potential negative effect on the
company's businesses and infrastructure, including information technology
systems, of terrorist attacks or disasters in the future; the impact on the
company's businesses resulting from the recent war in Iraq and its aftermath
and other geopolitical uncertainty; the company's ability to recover under its
insurance policies for losses resulting from the September 11th terrorist
attacks; the overall level of consumer confidence; consumer and business
spending on the company's travel related services products, particularly
credit and charge cards and growth in card lending balances, which depend in
part on the ability to issue new and enhanced card products and increase
revenues from such products, attract new cardholders, capture a greater share
of existing cardholders' spending, sustain premium discount rates, increase
merchant coverage, retain cardmembers after low introductory lending rates
have expired, and expand the global network services business; the impact of
severe acute respiratory syndrome (SARS) on consumer and business spending on
travel; the ability to execute the company's global corporate services
strategy, including greater penetration of middle market companies, increasing
capture of non-T&E spending through greater use of the company's purchasing
card and other means, and further globalizing business capabilities; the
ability to manage and expand cardmember benefits, including Membership
Rewards(R), in a cost effective manner; relationships with third-party
providers of various computer systems and other services integral to the
operations of the company's businesses; the triggering of obligations to make
payments to certain co-brand partners, merchants, vendors and customers under
contractual arrangements with such parties under certain circumstances;
successfully expanding the company's on-line and off-line distribution
channels and cross-selling financial, travel, card and other products and
services to its customer base, both in the U.S. and internationally;
effectively leveraging the company's assets, such as its brand, customers and
international presence, in the Internet environment; investing in and
competing at the leading edge of technology across all businesses; a downturn
in the company's businesses and/or negative changes in the company's and its
subsidiaries' credit ratings, which could result in contingent payments under
contracts, decreased liquidity and higher borrowing costs; increasing
competition in all of the company's major businesses; fluctuations in interest
rates, which impact the company's borrowing costs, return on lending products
and spreads in the investment and insurance businesses; credit trends and the
rate of bankruptcies, which can affect spending on card products, debt
payments by individual and corporate customers and businesses that accept the
company's card products and returns on the company's investment portfolios;
fluctuations in foreign currency exchange rates; political or economic
instability in certain regions or countries, which could affect lending and
other commercial activities, among other businesses, or restrictions on
convertibility of certain currencies; changes in laws or government
regulations, including tax laws affecting the company's businesses or that may
affect the sales of the products and services that it offers, and regulatory
activity in the areas of customer privacy, consumer protection, business
continuity and data protection; the costs and integration of acquisitions; the
adoption of recently issued accounting rules related to the consolidation of
variable interest entities, including those involving collateralized debt
obligations and secured loan trusts, mutual funds, hedge funds and limited
partnerships that the company manages and/or invests in, which could affect
both the company's balance sheet and results of operations; and outcomes and
costs associated with litigation and compliance and regulatory matters. A
further description of these and other risks and uncertainties can be found in
the company's Annual Report on Form 10-K for the year ended December 31, 2002,
and its other reports filed with the SEC.
ALL INFORMATION IN THE FOLLOWING TABLES IS PRESENTED ON A GAAP BASIS,
UNLESS OTHERWISE INDICATED.
(PRELIMINARY)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(MILLIONS)
QUARTERS ENDED
MARCH 31,
PERCENTAGE
2003 2002 INC/(DEC)
REVENUES
DISCOUNT REVENUE $ 1,976 $ 1,845 7.1 %
INTEREST AND DIVIDENDS, NET 767 758 1.2
MANAGEMENT AND DISTRIBUTION FEES 520 597 (12.9)
SECURITIZATION INCOME 486 383 26.9
NET CARD FEES 451 423 6.6
CARDMEMBER LENDING NET FINANCE
CHARGE REVENUE 458 405 13.1
TRAVEL COMMISSIONS AND FEES 340 328 3.7
OTHER REVENUES 1,025 1,020 0.5
TOTAL REVENUES 6,023 5,759 4.6
EXPENSES
HUMAN RESOURCES 1,490 1,478 0.8
PROVISION FOR LOSSES
AND BENEFITS 1,110 1,159 (4.1)
MARKETING AND PROMOTION 364 362 0.7
INTEREST 230 271 (14.9)
OTHER OPERATING EXPENSES 1,833 1,644 11.4
RESTRUCTURING CHARGES -- (13) --
TOTAL EXPENSES 5,027 4,901 2.6
PRETAX INCOME 996 858 16.0
INCOME TAX PROVISION 304 240 26.4
NET INCOME $ 692 $ 618 12.0 %
(PRELIMINARY)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(BILLIONS)
MARCH 31, DECEMBER 31,
2003 2002
ASSETS
CASH AND CASH EQUIVALENTS $ 8 $ 10
ACCOUNTS RECEIVABLE 28 29
INVESTMENTS 54 54
LOANS 27 28
SEPARATE ACCOUNT ASSETS 21 22
OTHER ASSETS 15 14
TOTAL ASSETS $ 153 $ 157
LIABILITIES AND
SHAREHOLDERS' EQUITY
SEPARATE ACCOUNT LIABILITIES $ 21 $ 22
SHORT-TERM DEBT 18 21
LONG-TERM DEBT 17 16
OTHER LIABILITIES 83 84
TOTAL LIABILITIES 139 143
SHAREHOLDERS' EQUITY 14 14
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 153 $ 157
NOTE: CERTAIN PRIOR PERIOD AMOUNTS HAVE BEEN RESTATED TO CONFORM TO
CURRENT YEAR PRESENTATION.
(PRELIMINARY)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(UNAUDITED)
(MILLIONS)
QUARTERS ENDED
MARCH 31,
PERCENTAGE
2003 2002 INC/(DEC)
REVENUES (A)
TRAVEL RELATED SERVICES $ 4,486 $ 4,199 7 %
AMERICAN EXPRESS FINANCIAL
ADVISORS 1,411 1,434 (2)
AMERICAN EXPRESS BANK 197 178 11
6,094 5,811 5
CORPORATE AND OTHER,
INCLUDING ADJUSTMENTS
AND ELIMINATIONS (71) (52) (38)
CONSOLIDATED REVENUES $ 6,023 $ 5,759 5 %
PRETAX INCOME (LOSS)
TRAVEL RELATED SERVICES $ 858 $ 666 29 %
AMERICAN EXPRESS FINANCIAL ADVISORS 178 252 (30)
AMERICAN EXPRESS BANK 29 20 51
1,065 938 14
CORPORATE AND OTHER (69) (80) 12
PRETAX INCOME $ 996 $ 858 16 %
NET INCOME (LOSS)
TRAVEL RELATED SERVICES $ 584 $ 467 25 %
AMERICAN EXPRESS FINANCIAL ADVISORS 133 182 (27)
AMERICAN EXPRESS BANK 19 13 55
736 662 11
CORPORATE AND OTHER (44) (44) (3)
NET INCOME $ 692 $ 618 12 %
(A) MANAGED NET REVENUES ARE REPORTED NET OF AMERICAN EXPRESS FINANCIAL
ADVISORS' PROVISION FOR LOSSES AND BENEFITS AND EXCLUDE THE EFFECT OF
TRS' SECURITIZATION ACTIVITIES. THE FOLLOWING TABLE RECONCILES
CONSOLIDATED GAAP REVENUES TO MANAGED BASIS NET REVENUES:
GAAP REVENUES $ 6,023 $ 5,759 5 %
EFFECT OF TRS SECURITIZATIONS 264 253 4
EFFECT OF AEFA PROVISIONS (506) (470) 8
MANAGED NET REVENUES $ 5,781 $ 5,542 4 %
(PRELIMINARY)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
(UNAUDITED)
QUARTERS ENDED
MARCH 31,
PERCENTAGE
2003 2002 INC/(DEC)
EARNINGS PER SHARE
BASIC
EARNINGS PER COMMON SHARE $ 0.53 $ 0.47 13 %
AVERAGE COMMON SHARES
OUTSTANDING (MILLIONS) 1,297 1,325 (2)%
DILUTED
EARNINGS PER COMMON SHARE $ 0.53 $ 0.46 15 %
AVERAGE COMMON SHARES
OUTSTANDING (MILLIONS) 1,305 1,335 (2)%
CASH DIVIDENDS DECLARED PER
COMMON SHARE $ 0.08 $ 0.08 --
SELECTED STATISTICAL INFORMATION
(UNAUDITED)
QUARTERS ENDED
MARCH 31,
PERCENTAGE
2003 2002 INC/(DEC)
RETURN ON AVERAGE EQUITY* 20.7% 11.5% --
COMMON SHARES OUTSTANDING
(MILLIONS) 1,298 1,329 (2)%
BOOK VALUE PER COMMON SHARE:
ACTUAL $ 10.84 $ 9.40 15 %
EXCLUDING THE EFFECT ON
SHAREHOLDERS' EQUITY OF
SFAS NO. 115 AND SFAS
NO. 133 $ 10.39 $ 9.46 10 %
SHAREHOLDERS' EQUITY (BILLIONS) $ 14.1 $ 12.5 13 %
*COMPUTED ON A TRAILING 12-MONTH BASIS EXCLUDING THE EFFECT ON
SHAREHOLDERS' EQUITY OF UNREALIZED GAINS OR LOSSES RELATED TO SFAS NO. 115,
"ACCOUNTING FOR CERTAIN INVESTMENTS IN DEBT AND EQUITY SECURITIES," AND SFAS
NO. 133, "ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES."
To view additional business segment financials go to:
http://ir.americanexpress.com
SOURCE American Express Company
-0- 04/25/2003
/CONTACT: Molly Faust, +1-212-640-0624, or molly.faust@aexp.com, or
Michael J. O'Neill, +1-212-640-5951, or mike.o'neill@aexp.com, both of
American Express Company/
/FCMN Contact: bet.franzone@aexp.com /
/Web site: http://www.americanexpress.com /
(AXP)
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