Earnings Decline on Increased Credit Provisions
American Exp.Co
American Express Company (NYSE: AXP) today reported third-quarter income from
continuing operations of $861 million, down 23 percent from $1.1 billion a year
ago. Diluted earnings per share from continuing operations were $0.74, down 21
percent from $0.94 a year ago.
(Millions, except per share amounts)
Quarters Ended Percentage Nine Months Ended Percentage
September 30, Inc/(Dec) September 30, Inc/(Dec)
--------------- ---------- ----------------- ----------
2008 2007 2008 2007
------- ------- -------- --------
Revenues net
of interest
expense $7,164 $6,956 3% $21,859 $20,235 8%
Income From
Continuing
Operations $ 861 $1,122 (23)% $ 2,565 $ 3,268 (22)%
Loss From
Discontinued
Operations $ (46) $ (55) (16)% $ (106) $ (87) 22%
Net Income $ 815 $1,067 (24)% $ 2,459 $ 3,181 (23)%
Earnings Per
Common Share
- Basic:
Income From
Continuing
Operations $ 0.75 $ 0.96 (22)% $ 2.22 $ 2.77 (20)%
Loss From
Discontinued
Operations $(0.04) $(0.05) (20)% $ (0.09) $ (0.07) 29%
Net Income $ 0.71 $ 0.91 (22)% $ 2.13 $ 2.70 (21)%
Earnings Per
Common Share
- Diluted:
Income From
Continuing
Operations $ 0.74 $ 0.94 (21)% $ 2.21 $ 2.72 (19)%
Loss From
Discontinued
Operations $(0.04) $(0.04) -% $ (0.09) $ (0.07) 29%
Net Income $ 0.70 $ 0.90 (22)% $ 2.12 $ 2.65 (20)%
Average Common
Shares
Outstanding
Basic 1,154 1,170 (1)% 1,154 1,179 (2)%
Diluted 1,158 1,192 (3)% 1,161 1,202 (3)%
Return on
Average
Equity* 27.8% 38.2% 27.8% 38.2%
----------------------------------------------------------------------
* Refer to Appendix I (see financial tables) for the components of
return on average equity.
# Denotes a variance of more than 100%.
Net income totaled $815 million for the quarter, down 24 percent from a year
ago. On a per-share basis, net income was $0.70, down 22 percent from $0.90 a
year ago.
Consolidated revenues net of interest expense rose 3 percent to $7.2 billion, up
from $7.0 billion a year ago.
Consolidated expenses totaled $4.7 billion, up 4 percent from $4.5 billion a
year ago.
Consolidated provisions for losses totaled $1.4 billion, up 51 percent from $905
million a year ago.
The Company's return on average equity (ROE) was 27.8 percent, down from 38.2
percent a year ago.
"While we continued to generate a substantial level of earnings this quarter,
bottom line results were down from a year ago as growth in Cardmember spending
slowed, lending volumes moderated, and we set aside significant additions to our
loan loss reserves," said Kenneth I. Chenault, chairman and chief executive
officer.
"We saw clear signs earlier this year of a weakening environment and the recent
volatility in the financial markets has reinforced our view that consumer and
business sentiment is likely to deteriorate further, translating into weaker
economies around the globe well into 2009. Cardmember spending is likely to
remain soft. Loan growth will be restrained, in part because of the steps we are
taking to reduce credit risks, and credit indicators are likely to reflect the
continued downturn in the economy and throughout the housing sector.
"Against this backdrop, we are moving ahead with reengineering plans that will
free up resources by reducing operating costs and staffing levels. We expect to
complete aspects of this work shortly and, as indicated earlier, to recognize a
restructuring-related charge in the fourth quarter to cover the costs of these
actions.
"Our business model is well positioned to generate earnings and excess capital
even in an economic environment that is likely to be among the weakest in many
years. We believe we have the capital strength, funding resources and
comprehensive liquidity plans to manage successfully through difficult market
conditions.
"We remain confident in our ability to emerge from the downturn in a stronger
competitive position and continue to see growth opportunities in the payments
sector. For now, though, we plan to be very selective with our investment
dollars, balancing near term performance with longer term profitability."
Discontinued operations
Discontinued operations for the third quarter generated a loss of $46 million
compared with a loss of $55 million during the year-ago period, which primarily
reflected the results of American Express International Deposit Company, an
affiliate of the former American Express Bank anticipated to be sold in the
third quarter 2009.
Segment Results
U.S. Card Services reported third-quarter net income of $244 million, down from
$592 million a year ago.
Revenues net of interest expense for the third quarter decreased 4 percent to
$3.5 billion, driven by lower securitization income, net. This decrease was
partially offset by higher net interest income and higher Cardmember spending.
Total expenses increased 6 percent. Marketing, promotion, rewards and Cardmember
services expenses increased 5 percent from the year-ago period reflecting
increased rewards and costs of Cardmember services, which were partially offset
by lower investments in marketing and promotion. Human resources and other
operating expenses increased 7 percent from the year-ago period primarily driven
by investments in technology and increased credit and collection costs.
Provisions for losses increased to $941 million, up from $638 million a year
ago, reflecting increased write-off and past due rates driven by the impact of
the economic slowdown. On a managed basis(1) the net loan write-off rate was
5.9%, up from 5.3% in the second quarter and 3.0% a year ago. Owned net
write-offs were 6.1% in the quarter, up from 5.8% in the second quarter and 3.0%
a year ago.
International Card Services reported third-quarter net income of $67 million,
down 52 percent from $140 million a year ago.
Revenues net of interest expense increased 11 percent to $1.2 billion,
reflecting higher Cardmember spending and borrowing.
Total expenses increased 13 percent reflecting higher volumes and
business-building investments. Human resources and other operating expenses
increased 16 percent from year-ago levels due to higher human resources expense,
greater professional services expense and increased other operating expenses.
Marketing, promotion, rewards and Cardmember services expenses increased 10
percent reflecting greater marketing and promotion expenses and higher volume
related rewards costs.
Provisions for losses rose to $316 million, from $197 million a year ago
reflecting higher past due and write-off rates as well as loan and business
volume growth.
Global Commercial Services reported third-quarter net income of $134 million
compared to $135 million a year ago.
Revenues net of interest expense increased 13 percent to $1.2 billion,
reflecting higher spending by corporate Cardmembers as well as increased travel
commissions and fees.
Total expenses increased 14 percent. Human resources and other operating
expenses increased 12 percent from the year-ago period. Marketing, promotion,
rewards and Cardmember services expenses increased 31 percent from the year-ago
period primarily reflecting a reallocation of rewards costs from U.S. Card
Services.
Both the revenue and expense growth rates were affected by the acquisition of a
commercial card and corporate purchasing unit in March 2008.
Provision for losses totaled $60 million up from $42 million in the year ago
period due to higher write-offs and past due rates.
Global Network & Merchant Services reported third-quarter net income of $258
million, down 3 percent from $266 million a year ago.
Revenues net of interest expense for the third quarter increased 9 percent to
$1.1 billion. The increase reflected continued growth in merchant-related
revenue, primarily from higher company-wide billed business and higher revenues
from Global Network Services' bank partners.
Spending on Global Network Services cards increased 29 percent from year-ago
levels, reflecting growth in spending on cards issued by bank partners.
Cards-in-force issued by bank partners increased 25 percent.
Total expenses increased 11 percent, reflecting higher human resources costs
driven in part by an expansion of the merchant sales force.
Provision for losses increased to $43 million from $23 million in the prior year
reflecting greater merchant-related provisions in the third quarter of 2008
compared to a year ago.
Corporate and Other reported a third-quarter net gain of $158 million, compared
with a net loss of $11 million from a year ago. The net gain reflects the
recognition of $220 million ($136 million after-tax) for the previously
announced MasterCard and Visa settlements and tax benefits due to the revision
of the Company's estimated annual effective tax rate.
American Express Company is a leading global payments and travel company founded
in 1850. For more information, visit www.americanexpress.com.
Note: The 2008 Third Quarter Earnings Supplement will be available today on the
American Express web site at http://ir.americanexpress.com. An investor
conference call will be held at 5:00 p.m. (EDT) today to discuss third-quarter
earnings results. Live audio and presentation slides for the investor conference
call will be available to the general public at http://ir.americanexpress.com. A
replay of the conference call will be available later today at the same web site
address.
This release includes forward-looking statements, which are subject to risks and
uncertainties. The forward-looking statements, which address the Company's
expected business and financial performance, among other matters, contain words
such as "believe," "expect," "anticipate," "optimistic," "intend," "plan,"
"aim," "will," "may," "should," "could," "would," "likely," and similar
expressions. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on which they are
made. The Company undertakes no obligation to update or revise any
forward-looking statements. Factors that could cause actual results to differ
materially from these forward-looking statements include, but are not limited
to, the following: consumer and business spending on the Company's credit and
charge card products and Travelers Cheques and other prepaid products and growth
in card lending balances, which depend in part on the economic environment, and
the ability to issue new and enhanced card and prepaid products, services and
rewards programs, and increase revenues from such products, attract new
Cardmembers, reduce Cardmember attrition, capture a greater share of existing
Cardmembers' spending, and sustain premium discount rates on its card products
in light of regulatory and market pressures, increase merchant coverage, retain
Cardmembers after low introductory lending rates have expired, and expand the
Global Network Services business; the Company's ability to manage credit risk
related to consumer debt, business loans, merchants and other credit trends,
which will depend in part on the economic environment, including, among things,
the housing market, the rates of bankruptcies and unemployment, which can affect
spending on card products, debt payments by individual and corporate customers
and businesses that accept the Company's card products, and on the effectiveness
of the Company's credit models; the impact of the Company's efforts to deal with
delinquent Cardmembers in the current challenging economic environment, which
may affect payment patterns of Cardmembers, the Company's near-term write-off
rates, including during the remainder of 2008 and in 2009, and the volumes of
the Company's loan balances in 2008 and 2009; the write-off and delinquency
rates in the medium- to long-term of Cardmembers added by the Company during the
past few years, which could impact their profitability to the Company; the
Company's ability to effectively implement changes in the pricing of certain of
its products and services; fluctuations in interest rates (including
fluctuations in benchmarks, such as LIBOR and other benchmark rates, and credit
spreads), which impact the Company's borrowing costs, return on lending products
and the value of the Company's investments; the Company's ability to meet its
ROE target range of 33 to 36 percent on average and over time, which will depend
in part on factors such as the Company's ability to generate sufficient revenue
growth and achieve sufficient margins, fluctuations in the capital required to
support its businesses, the mix of the Company's financings, and fluctuations in
the level of the Company's shareholders' equity due to share repurchases,
dividends, changes in accumulated other comprehensive income and accounting
changes, among other things; the actual amount to be spent by the Company on
marketing, promotion, rewards and Cardmember services based on management's
assessment of competitive opportunities and other factors affecting its
judgment; the ability to control and manage operating, infrastructure,
advertising and promotion expenses as business expands or changes, including the
ability to accurately estimate the provision for the cost of the Membership
Rewards program; fluctuations in foreign currency exchange rates; the Company's
ability to grow its business, generate excess capital and, over time, meet or
exceed its return on shareholders' equity target by reinvesting approximately 35
percent of annually-generated capital, and returning approximately 65 percent of
such capital to shareholders 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 success of the Global Network Services business in
partnering with banks in the United States, which will depend in part on the
extent to which such business further enhances the Company's brand, allows the
Company to leverage its significant processing scale, expands merchant coverage
of the network, provides Global Network Services' bank partners in the United
States the benefits of greater Cardmember loyalty and higher spend per customer,
and merchant benefits such as greater transaction volume and additional higher
spending customers; the ability of the Global Network Services business to meet
the performance requirements called for by the Company's recent settlements with
MasterCard and VISA; trends in travel and entertainment spending and the overall
level of consumer confidence; the uncertainties associated with business
acquisitions, including, among others, the failure to realize anticipated
business retention, growth and cost savings, as well as the ability to
effectively integrate the acquired business into the Company's existing
operations; the underlying assumptions and expectations related to the February
2008 sale of the American Express Bank Ltd. businesses and the transaction's
impact on the Company's earnings proving to be inaccurate or unrealized; the
success, timeliness and financial impact (including costs, cost savings and
other benefits including increased revenues), and beneficial effect on the
Company's operating expense to revenue ratio, both in the short-term (including
during 2009) and over time, of reengineering 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, and planned staff reductions relating
to certain of such reengineering actions; the Company's ability to reinvest the
benefits arising from such reengineering actions in its businesses;
bankruptcies, restructurings, consolidations or similar events (including, among
others, the proposed Delta Airlines/Northwest Airlines merger) affecting the
airline or any other industry representing a significant portion of the
Company's billed business, including any potential negative effect on particular
card products and services and billed business generally that could result from
the actual or perceived weakness of key business partners in such industries;
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; 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; the ability of the Company to satisfy its liquidity
needs and execute on its funding plans, which will depend on, among other
things, the Company's future business growth, its credit ratings, market
capacity and demand for securities offered by the Company, performance by the
Company's counterparties under its bank credit facilities and other lending
facilities, regulatory changes, including changes to the policies, rules and
regulations of the Board of Governors of the Federal Reserve System and the
Federal Reserve Bank of San Francisco, the Company's ability to securitize and
sell receivables and the performance of receivables previously sold in
securitization transactions and the Company's ability to meet the criteria for
participation in certain liquidity facilities and other funding programs,
including the Commercial Paper Funding Facility and the Temporary Liquidity
Guarantee Program, being made available through the Federal Reserve Bank of New
York, the Federal Deposit Insurance Corporation and other federal departments
and agencies; accuracy of estimates for the fair value of the assets in the
Company's investment portfolio and, in particular, those investments that are
not readily marketable, including the valuation of the interest-only strip
relating to the Company's lending securitizations; the Company's ability to
invest in technology advances across all areas of its business to stay on the
leading edge of technologies applicable to the payments industry; the Company's
ability to protect its intellectual property rights (IP) and avoid infringing
the IP of other parties; the potential negative effect on the Company's
businesses and infrastructure, including information technology, of terrorist
attacks, natural disasters or other catastrophic events in the future; 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; the potential impact of regulations proposed by federal bank
regulators relating to certain credit and charge card practices, including,
among others, the imposition by card issuers of interest rate increases on
outstanding balances and the allocation of payments in respect of outstanding
balances with different interest rates, which could have an adverse impact on
the Company's net income; accounting changes; outcomes and costs associated with
litigation and compliance and regulatory matters; and competitive pressures in
all of the Company's major businesses. 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, 2007, and its other reports filed with the SEC.
(1) The "managed basis" presentation includes on-balance sheet Cardmember loans
and off-balance sheet securitized Cardmember loans. The difference between the
"owned basis" (GAAP) information and "managed basis" information is attributable
to the effects of securitization activities. Please refer to the information set
forth on Exhibit I for further discussion of the owned and managed basis
presentation.
EXHIBIT I
----------------------------------------------------------------------
AMERICAN EXPRESS COMPANY
U.S. Card Services
(Billions, except percentages)
Quarter Ended Quarter Ended Quarter Ended
September 30, 2008 June 30, 2008 September 30, 2007
Cardmember lending
- owned basis
(A):
Average Loans $ 36.3 $ 38.0 $ 38.6
Net write-off
rate (B) 6.1% 5.8% 3.0%
Cardmember lending
- managed basis
(C):
Average Loans $ 64.7 $ 64.2 $ 60.0
Net write-off
rate (B) 5.9% 5.3% 3.0%
(A) "Owned," a GAAP basis measurement, reflects only Cardmember loans included
in the Company's Consolidated Balance Sheets.
(B) In the third quarter 2008, the Company revised its method of reporting the
Cardmember lending net write-off rate. Historically, the net write-off rate has
been presented using net write-off amounts for principal, interest and fees.
However, industry convention is generally to include only the net write-offs
related to principal in write-off rate disclosures. Accordingly, the Company is
presenting the net write-off rate to reflect the net write-off amounts for
principal only.
(C) The managed basis presentation assumes that there have been no off-balance
sheet securitization transactions, i.e., all securitized Cardmember loans and
related income effects are reflected as if they were in the Company's balance
sheets and income statements, respectively. The difference between the "owned
basis" (GAAP) information and "managed basis" information is attributable to the
effects of securitization activities. The Company presents U.S. Card Services
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. Management also believes that use of a managed basis presentation
presents a more accurate picture of the key dynamics of the Cardmember lending
business. Irrespective of the on and off-balance sheet funding mix, it is
important for management and investors to see metrics 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 in order to evaluate market share. These
metrics are significant in evaluating the Company's performance and can only be
properly assessed when all non-securitized and securitized Cardmember loans are
viewed together on a managed basis. The Company does not currently securitize
international loans.
All information in the following tables is presented on a basis prepared in
accordance with U.S. generally accepted accounting principles (GAAP), unless
otherwise indicated. Amounts have been revised to reflect American Express
International Deposit Company (AEIDC) activities as discontinued operations and
to remove AEIDC from the Corporate & Other segment.
(Preliminary)
American Express Company
----------------------------------------------------------------------
Consolidated Statements of Income
----------------------------------------------------------------------
(Millions)
Quarters Nine Months
Ended Ended
September 30, Percentage September 30, Percentage
------------- ---------------
2008 2007 Inc/(Dec) 2008 2007 Inc/(Dec)
------ ------ ---------- ------- ------- ----------
Revenues
Discount
revenue $3,848 $3,659 5% $11,557 $10,684 8%
Net card fees 577 522 11 1,720 1,506 14
Travel
commissions
and fees 499 484 3 1,566 1,412 11
Other
commissions
and fees 573 644 (11) 1,785 1,767 1
Securitization
income, net 200 392 (49) 871 1,181 (26)
Other 551 443 24 1,588 1,256 26
------ ------ ------- -------
Total 6,248 6,144 2 19,087 17,806 7
------ ------ ------- -------
Interest income
Cardmember
lending
finance
revenue 1,521 1,581 (4) 4,667 4,463 5
Other 238 239 - 723 756 (4)
------ ------ ------- -------
Total 1,759 1,820 (3) 5,390 5,219 3
------ ------ ------- -------
Total
revenues 8,007 7,964 1 24,477 23,025 6
------ ------ ------- -------
Interest expense
Cardmember
lending 346 444 (22) 1,127 1,260 (11)
Charge card
and other 497 564 (12) 1,491 1,530 (3)
------ ------ ------- -------
Total 843 1,008 (16) 2,618 2,790 (6)
------ ------ ------- -------
Revenues net of
interest
expense 7,164 6,956 3 21,859 20,235 8
------ ------ ------- -------
Expenses
Marketing,
promotion,
rewards and
cardmember
services 1,929 1,810 7 5,609 5,098 10
Human
resources 1,465 1,366 7 4,430 4,001 11
Professional
services 608 539 13 1,764 1,634 8
Occupancy and
equipment 398 374 6 1,185 1,054 12
Communications 118 118 - 348 342 2
Other, net 200 339 (41) 770 979 (21)
------ ------ ------- -------
Total 4,718 4,546 4 14,106 13,108 8
------ ------ ------- -------
Provisions for
losses
Charge card 351 279 26 937 721 30
Cardmember
lending 958 579 65 3,304 1,791 84
Other 59 47 26 199 79 #
------ ------ ------- -------
Total 1,368 905 51 4,440 2,591 71
------ ------ ------- -------
Pretax income
from continuing
operations 1,078 1,505 (28) 3,313 4,536 (27)
Income tax
provision 217 383 (43) 748 1,268 (41)
------ ------ ------- -------
Income from
continuing
operations 861 1,122 (23) 2,565 3,268 (22)
Loss from
discontinued
operations, net
of tax (46) (55) (16) (106) (87) 22
------ ------ ------- -------
Net income $815 $1,067 (24) $2,459 $3,181 (23)
====== ====== ======= =======
# - Denotes a variance of more than 100%.
(Preliminary)
American Express Company
----------------------------------------------------------------------
Condensed Consolidated Balance Sheets
----------------------------------------------------------------------
(Billions)
September 30, December 31,
2008 2007
------------- ------------
Assets
Cash and cash equivalents $ 16 $ 9
Accounts receivable 41 42
Investments 13 13
Loans 44 53
Other assets 12 11
Assets of discontinued operations 1 22
------------- ------------
Total assets $ 127 $ 150
============= ============
Liabilities and Shareholders' Equity
Short-term debt $ 14 $ 18
Long-term debt 58 55
Other liabilities 41 44
Liabilities of discontinued operations 1 22
------------- ------------
Total liabilities 114 139
------------- ------------
Shareholders' equity 13 11
------------- ------------
Total liabilities and shareholders'
equity $ 127 $ 150
============= ============
(Preliminary)
American Express Company
----------------------------------------------------------------------
Financial Summary
----------------------------------------------------------------------
(Millions)
Quarters Ended
September 30, Percentage
---------------
2008 2007 Inc/(Dec)
------- ------- ----------
Revenues net of interest expense
-----------------------------------------
U.S. Card Services $3,459 $3,589 (4)%
International Card Services 1,232 1,114 11
Global Commercial Services 1,200 1,064 13
Global Network & Merchant Services 1,071 980 9
------- -------
6,962 6,747 3
Corporate & Other, including
adjustments and eliminations 202 209 (3)
------- -------
CONSOLIDATED REVENUES NET OF INTEREST
EXPENSE $7,164 $6,956 3
======= =======
Pretax income (loss) from continuing
operations
-----------------------------------------
U.S. Card Services $ 364 $ 912 (60)
International Card Services 1 110 (99)
Global Commercial Services 191 187 2
Global Network & Merchant Services 397 389 2
------- -------
953 1,598 (40)
Corporate & Other 125 (93) #
------- -------
PRETAX INCOME FROM CONTINUING OPERATIONS $1,078 $1,505 (28)
======= =======
Net income (loss)
-----------------------------------------
U.S. Card Services $ 244 $ 592 (59)
International Card Services 67 140 (52)
Global Commercial Services 134 135 (1)
Global Network & Merchant Services 258 266 (3)
------- -------
703 1,133 (38)
Corporate & Other 158 (11) #
------- -------
Income from continuing operations 861 1,122 (23)
Loss from discontinued operations, net
of tax (46) (55) (16)
------- -------
NET INCOME $ 815 $1,067 (24)
======= =======
# - Denotes a variance of more than 100%.
Nine Months Ended
September 30, Percentage
-----------------
2008 2007 Inc/(Dec)
-------- -------- ----------
Revenues net of interest expense
---------------------------------------
U.S. Card Services $10,774 $10,513 2 %
International Card Services $ 3,683 3,142 17
Global Commercial Services $ 3,652 3,141 16
Global Network & Merchant Services $ 3,157 2,823 12
-------- --------
21,266 19,619 8
Corporate & Other, including
adjustments and eliminations 593 616 (4)
-------- --------
CONSOLIDATED REVENUES NET OF INTEREST
EXPENSE $21,859 $20,235 8
======== ========
Pretax income (loss) from continuing
operations
---------------------------------------
U.S. Card Services $ 1,092 $ 2,770 (61)
International Card Services $ 191 298 (36)
Global Commercial Services $ 735 600 23
Global Network & Merchant Services $ 1,187 1,181 1
-------- --------
3,205 4,849 (34)
Corporate & Other 108 (313) #
-------- --------
PRETAX INCOME FROM CONTINUING
OPERATIONS $ 3,313 $ 4,536 (27)
======== ========
Net income (loss)
---------------------------------------
U.S. Card Services $ 788 $ 1,816 (57)
International Card Services $ 315 359 (12)
Global Commercial Services $ 512 426 20
Global Network & Merchant Services $ 780 768 2
-------- --------
2,395 3,369 (29)
Corporate & Other 170 (101) #
-------- --------
Income from continuing operations 2,565 3,268 (22)
Loss from discontinued operations,
net of tax (106) (87) 22
-------- --------
NET INCOME $ 2,459 $ 3,181 (23)
======== ========
# - Denotes a variance of more than 100%.
(Preliminary)
American Express Company
----------------------------------------------------------------------
Financial Summary (continued)
----------------------------------------------------------------------
Nine Months
Quarters Ended Ended
September 30, Percentage September 30, Percentage
--------------- ---------------
2008 2007 Inc/(Dec) 2008 2007 Inc/(Dec)
------- ------- ---------- ------- ------- ----------
EARNINGS PER
COMMON SHARE
BASIC
Income from
continuing
operations $ 0.75 $ 0.96 (22)% $ 2.22 $ 2.77 (20)%
Loss from
discontinued
operations (0.04) (0.05) (20) (0.09) (0.07) 29
------- ------- ------- -------
Net income $ 0.71 $ 0.91 (22)% $ 2.13 $ 2.70 (21)%
======= ======= ======= =======
Average
common
shares
outstanding
(millions) 1,154 1,170 (1)% 1,154 1,179 (2)%
======= ======= ======= =======
DILUTED
Income from
continuing
operations $ 0.74 $ 0.94 (21)% $ 2.21 $ 2.72 (19)%
Loss from
discontinued
operations (0.04) (0.04) - (0.09) (0.07) 29
------- ------- ------- -------
Net income $ 0.70 $ 0.90 (22)% $ 2.12 $ 2.65 (20)%
======= ======= ======= =======
Average
common
shares
outstanding
(millions) 1,158 1,192 (3)% 1,161 1,202 (3)%
======= ======= ======= =======
Cash dividends
declared per
common share $ 0.18 $ 0.15 20 % $ 0.54 $ 0.45 20 %
======= ======= ======= =======
Selected Statistical Information
----------------------------------------------------------------------
Nine Months
Quarters Ended Ended
September 30, Percentage September 30, Percentage
--------------- ---------------
2008 2007 Inc/(Dec) 2008 2007 Inc/(Dec)
------- ------- ---------- ------- ------- ----------
Return on
average equity
(A) 27.8% 38.2% 27.8% 38.2%
Return on
average
tangible
equity (A) 34.4% 44.9% 34.4% 44.9%
Common shares
outstanding
(millions) 1,160 1,169 (1)% 1,160 1,169 (1)%
Book value per
common share $10.79 $ 9.32 16 % $10.79 $ 9.32 16 %
Shareholders'
equity
(billions) $ 12.5 $ 10.9 15 % $ 12.5 $ 10.9 15 %
# - Denotes a variance of more than 100%.
(A) Refer to Appendix I for components of return on average equity and
return on average tangible equity.
To view full financial tables go to: http://ir.americanexpress.com
Contact: American Express Company
Media:
Joanna Lambert, 212-640-9668
joanna.g.lambert@aexp.com
or
Michael O'Neill, 212-640-5951
mike.o'neill@aexp.com
or
Investors/Analysts:
Alex Hopwood, 212-640-5495
alex.w.hopwood@aexp.com
or
Ron Stovall, 212-640-5574
ronald.stovall@aexp.com
Amer.Express (LSE:AMX)
Historical Stock Chart
From Jan 2025 to Feb 2025
Amer.Express (LSE:AMX)
Historical Stock Chart
From Feb 2024 to Feb 2025
