American Express Company · NYSE:AXP

American Express — Investor Day (February 2013)

79 slides from American Express's investor day presentation, Feb 6, 2013

  1. Slide 1: American Express Company Financial Community Meeting

    American Express Company Financial Community Meeting Kenneth Chenault Chairman and Chief Executive Officer Stephen Squeri Group President, Global Corporate Services February 6, 2013

  2. Slide 2: Agenda

    Agenda  Year-to-Date Financial and Business Performance  Current and Future Growth Drivers  Short-Term Perspective  Operating Expenses  Q&A 2

  3. Slide 3: Financial Performance

    Financial Performance $ in billions; except per share amounts 2011 2012 Total Revenues Net of Interest Expense $30.0 $31.6 Growth vs. Prior Year 9% 5% FX Adjusted Growth vs. Prior Year† 7% 6% Income from Continuing Operations $4.9 $4.5 Diluted EPS from Continuing Operations * $4.09 $3.89 Adjusted Di

  4. Slide 4: Metric Trends

    Metric Trends % increase/(decrease) vs. prior year Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Billed Business* 11% 12% 7% 6% 8% Billed Business FX Adjusted** 11% 13% 9% 8% 7% Total Cards In Force 7% 7% 6% 6% 5% Cardmember Loans 3% 4% 4% 6% 4% Worldwide Lending 2.3% 2.3% 2.2% 1.9% 2.0% Write-off Rate† *Card bille

  5. Slide 5: Billed Business Growth by Region

    Billed Business Growth by Region % increase/(decrease) vs. prior year: 20% 15% 11% 10% 10% 7% 5% 5% 0% Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 US EMEA (FX Adj)* JAPA (FX Adj)* LACC (FX Adj)* Total (FX Adj)* *See Annex 3 for reported billings growth rates. 5

  6. Slide 6: AXP Share of U.S. Charge/Credit Purchase Volume

    AXP Share of U.S. Charge/Credit Purchase Volume 26.3% 26.5% 25.4% 23.7% 24.0% 23.8% 23.0% 22.2% 21.2% 20.6% 20.4% 19.9% 19.9% 19.5% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q3'12 SOURCE: The Nilson Report. General Purpose Charge and Credit. Excludes cash advances. 6

  7. Slide 7: AXP Share of U.S. Purchase Volume

    AXP Share of U.S. Purchase Volume Share of Credit Spend Share of Credit & Debit Spend 26.5% 26.2% 15.5% 14.9% Q3'11 YTD Q3'12 YTD Q3'11 YTD Q3'12 YTD Source: The Nilson Report. Excludes cash advances. Debit spend includes Visa & MasterCard debit volumes. 7

  8. Slide 8: Full Year 2012 Volumes - Relative Performance

    Full Year 2012 Volumes - Relative Performance Total Billed Business Ending Loans $ in billions $ in billions Growth Growth vs. PY 8% 11% 2% 1% 34% 5% (2%) (3%) (7%) 41% 4% 6% vs. PY Ex. Acq 13%† Ex. Acq 0% † $888 $150 $128 $95 $92 $381 $363 $65 $50 $194 $181 $105 AXP JPM* Citi-Global BofA** Cap One†

  9. Slide 9: Dependency Upon Balance Transfer Offers

    Dependency Upon Balance Transfer Offers % of Offers With 0% Intro Rate on Balance Transfers 73% 8% AXP Industry (excl. AXP)* Source: Comperemedia. Represents mail volume in 2012 that had an introductory offer of 0% for balance transfers. Based on a sample of 3,000 U.S. households. Mailings include c

  10. Slide 10: 2012 Revenue Growth vs. Issuing Competitors

    2012 Revenue Growth vs. Issuing Competitors FY'12 % increase/(decrease) vs. prior year: 27% 8% 5% (2%) (3%) (16%) CapitalOne* Discover** AXP JPMorgan Citi BofA*** Source: Company Reports. Note: Issuing Competitors reflect rewards costs as a contra revenue item whereas the majority of AXP membership

  11. Slide 11: 2012 Credit Reserve Release as % of Reported Net Income

    2012 Credit Reserve Release as % of Reported Net Income 31% 29% 26% 13% 6% AXP Citi JPMorgan BofA* Discover** Reported $4.5B $5.1B $3.3B $4.1B $2.3B Net Income SOURCE: Company Reports, net income from continuing operations for AXP and Discover, card segment net income for all others. Assumes a 35% t

  12. Slide 12: AXP Lending Net Write-off Rates vs. Competitors

    AXP Lending Net Write-off Rates vs. Competitors 5.6% 5.7% 4.5% 4.3% 4.3% 4.3% 4.2% 3.5% 3.2% 2.3% 2.3% 2.0% Q4'11 Q4'12 AXP* Discover** JPMorgan Cap One† Bank of Citi-Global America†† *Rates include principal only. See Statistical tables in Q4'12 Earnings Release for net write-off rates including in

  13. Slide 13: Total Operating Expense Growth

    Total Operating Expense Growth % increase/(decrease) vs. prior year YoY Opex Growth 21% 21% YoY Rev Growth YoY Adj Opex Growth* 19% 10% 12% 7% 5% 4% 5% 0% 3% 4% (2%) 2% (4%) (4%) Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Note: Operating Expense includes salaries and employee benefits, pr

  14. Slide 14: Marketing and Promotion Expense

    Marketing and Promotion Expense Marketing and Promotion Expense as % of Managed Revenue* 11.4% 9.3% 8.3% 10.0% 9.5% 9.7% 9.7% 9.2% 8.3% 8.9% 7.4% 2007 2008 2009 2010 2011 2012 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Note: Beginning in 2011, the Company reclassified certain contractual payments to partners as

  15. Slide 15: U.S. Card Industry Mail Volume Trends

    U.S. Card Industry Mail Volume Trends Total Mail Volume (MM) 1,378 1,301 1,263 818 830 783 760 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Source: Comperemedia. Based on a sample of 3,000 U.S. households. Mailings include charge, acquisition and cross-sell mailers, exclude Corporate, retail and loyalt

  16. Slide 16: Peer Issuer Expense Growth Trends

    Peer Issuer Expense Growth Trends Operating and Marketing Expense, Year over Year Growth 36% 27% 23% 20% 16% 13% 9% 5% 1% 0% 2011 2012 (2%) (8%) AXP (Adj)* BofA** Citi*** JPMorgan CapitalOne † Discover†† Note: Operating and Marketing Expense reflects total expenses excluding provision and interest e

  17. Slide 17: Agenda

    Agenda  Year-to-Date Financial and Business Performance  Current and Future Growth Drivers  Short Term Perspective  Operating Expenses  Q&A 17

  18. Slide 18: 2007 vs. 2012 Revenue Mix

    2007 vs. 2012 Revenue Mix Net Interest 19% 15% Income 29% Other Non- 30% Interest Income* 56% Discount Revenue 51% 2007 2012 *Other Non-Interest Income represents net card fees, travel commissions and fees, other commissions and fees and other revenue. In 2012, the Company revised the income stateme

  19. Slide 19: Revenue Mix: Discount Revenue Growth Prospects

    Revenue Mix Growth Prospects Discount Revenue Discount Revenue 56%  Volume and Share Gains & Premium Position  International & B2B Plastic Penetration  GNS Billings Growth  Online Spend Footprint & Growth  Prepaid & SERVE 2012  Value to Merchants 19

  20. Slide 20: Revenue Mix: Other Non-Interest Income Growth Prospects

    Revenue Mix Growth Prospects Other Non-Interest Other Non-Interest Income 29% Income*  Annual Card Fees  GNS Revenues  New Business Initiatives  Prepaid & SERVE Discount Revenue  Loyalty Partner 56% 2012 *Other Non-Interest Income represents net card fees, travel commissions and fees, other com

  21. Slide 21: Revenue Mix: Net Interest Income Growth Prospects

    Revenue Mix Growth Prospects 15% Net Interest Income Net Interest Income  Premium Lending Opportunities Other Non-Interest  Prepaid & SERVE 29% Income* Discount Revenue 56% 2012 *Other Non-Interest Income represents net card fees, travel commissions and fees, other commissions and fees and other r

  22. Slide 22: Revenue Mix

    Revenue Mix Growth Prospects 15% Net Interest Income 29% Other Non-Interest Income* Discount Revenue 56% 2012 *Other Non-Interest Income represents net card fees, travel commissions and fees, other commissions and fees and other revenue. 22

  23. Slide 23: High Spending Cardmembers

    High Spending Cardmembers Q3'12 Trailing 12 Months – Worldwide Average Cardmember Spend $15,550 $11,213 $3,751 $3,063 2012 AXP - Proprietary Cards AXP - Total Visa MasterCard Note: Calculated using a five point average of worldwide total basic cards in force for AXP and credit card and charge accoun

  24. Slide 24: High Spending Cardmembers

    High Spending Cardmembers Q3'12 vs. Q3'07 Trailing 12 Months – Worldwide Average Cardmember Spend $15,550 $11,866 $11,213 $9,667 $3,751 $2,713 $3,063 $2,204 2012 2007 AXP - Proprietary Cards AXP - Total Visa MasterCard Note: Calculated using a five point average of worldwide total basic cards in for

  25. Slide 25: Clinton-Era Tax Increases

    Clinton-Era Tax Increases Income Tax Increase 14% 13% 10% 7% 1992 1993 1994 1995 AXP U.S. Billed Business 25

  26. Slide 26: More Diversified Spend Profile

    More Diversified Spend Profile $ in billions $888 CAGR $647 2007 2012 % Billings from GNS 8% 15% % Billings from International 29% 34% Travel & Entertainment 34% 30% 26

  27. Slide 27: International Business Operations Performance

    International Business Operations* Performance Billed Business Revenue Fx adjusted % increase/(decrease) vs. prior year Fx adjusted % increase/(decrease) vs. prior year ($ in billions) ($ in billions) 10%** 5%** $298 $9.0 $9.5 $271 2011 2012 2011 2012 *International represents the sum of the Europe,

  28. Slide 28: 2012 Performance: Customer Acquisition

    2012 Performance: Customer Acquisition New Accounts Acquired by Product Type New First Year Spend* by Product Type YOY Growth YOY Growth 9% 21% 17% 13% (3%) 5% 2011 2012 Cards Acquired in 2011 Cards Acquired in 2012 Charge Co-Brand Prop Lending Includes customers acquired in the USCS, ICS and GCS se

  29. Slide 29: Small Business Performance

    Small Business Performance U.S. Billed Business Int’l Billed Business Indexed to 2010 Indexed to 2010 +13% CAGR +9% CAGR 127 114 120 111 100 100 2010 2011 2012 2010 2011 2012 % of BB 77% 77% 78% 93% 94% 95% on charge 29

  30. Slide 30: Global Corporate Payments

    Global Corporate Payments Annual New Booked Charge Volume* +14% CAGR 2009 2010 2011 2012 *Booked charge volume from new clients or the expansion of existing client relationships tracked for 13 months, starting with the month when the first dollar was billed. 30

  31. Slide 31: Online Commerce – AXP Global Online Spend

    Online Commerce – AXP Global Online Spend* Estimated Spending: Full Year Online Spend $152B+ 2011 2012 *Primarily includes spending at pure online merchants and spending through known online channels. 31

  32. Slide 32: AXP Digital Highlights

    AXP Digital Highlights Pay with Points redeemed: Cumulative AXP Mobile 155B in 2012 App downloads: vs. 5M 138B in 2011 Registered Card % of Total Payments enrollments: Received Electronically: 3M+ CM enrollments 80%* for our digital marketing offers during 2012 *Electronic includes payments received

  33. Slide 33: Revenue Mix

    Revenue Mix Growth Prospects 15% Net Interest Income 29% Other Non-Interest Income* Discount Revenue 56% 2012 *Other Non-Interest Income represents net card fees, travel commissions and fees, other commissions and fees and other revenue. 33

  34. Slide 34: Enterprise Growth Group - Metric Trends

    Enterprise Growth Group - Metric Trends Figures in millions; sequential growth rates Enterprise Growth Customers* Trans. Volume** $600 3.1 2.1 1.5 $300 1.0 0.6 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q3'12 Q4'12 *Enterprise Growth Customers include General Purpose Reloadable cards, travel cards, Serve, Vente-

  35. Slide 35: Bluebird

    Bluebird r) “ u 4 a x u 4 rt 4 ry u = < =. Bluebird Loaded with features. Not fees. e Checking & Debit Alternative BYAMERICAN EXPRESS

  36. Slide 36: Bluebird Update

    Bluebird Update Bluebird Data Points Economic Drivers  575k+ accounts  Added $275MM in funds to date  85% enrollees new to AXP Franchise  ~45% enrollees under age 35  ~30% funded via Employer Direct Deposit 36

  37. Slide 37: Bluebird

    Bluebird r) “ u 4 a x u 4 rt 4 ry u = < =. Bluebird Loaded with features. Not fees. e Checking & Debit Alternative BYAMERICAN EXPRESS

  38. Slide 38: Loyalty Partner Update

    Loyalty Partner Update Customers (Collectors) Economic Drivers ~34MM ~47MM ~50MM +47% Mexico Mexico India India India Poland Poland Poland Germany Germany Germany Oct'11 Oct'12 Dec'12 * Includes commissions earned from online coalition partners driven by Payback customer purchases on the partner’s w

  39. Slide 39: Loyalty Partner: 2012 Digitization

    Loyalty Partner: 2012 Digitization Viewed eCoupons Activated eCoupons Redeemed eCoupons ~250 MM ~50 MM ~8.5 MM Point of Sale Redemption Rate 3% Payback Email website marketing Mobile app Note: Data collected in the German market from January-October of 2012. 39

  40. Slide 40: Loyalty Partner

    Loyalty Partner nove °PAYBACK O0O® O@®e OO® 40

  41. Slide 41: Slide 41

  42. Slide 42: Agenda

    Agenda  Year-to-Date Financial and Business Performance  Current and Future Growth Drivers  Short Term Perspective  Operating Expenses  Q&A 42

  43. Slide 43: AXP Financial Targets

    AXP Financial Targets On average and over time: Revenue EPS ROE 8% + 12-15% 25% + 43

  44. Slide 44: 2010-2012 Performance Against Financial Targets

    2010-2012 Performance Against Financial Targets $ in billions; except per share amounts 2010 2012 '10-'12 CAGR Total Revenues Net of Interest Expense $27.6 $31.6 Adjusted Diluted EPS* $3.40 $4.40 2 Yr. Avg. Return on Average Equity 28% 23% 25% Adjusted Return on Average Equity** 26% 27% P&L Benefits

  45. Slide 45: AXP Financial Targets

    AXP Financial Targets On average and over time: Revenue EPS ROE 8% + 12-15% 25% + 45

  46. Slide 46: Historical Billings Performance vs. GDP

    Historical Billings Performance vs. GDP '94- '11 Average Annual Growth Rates (excluding '08- '09) AXP U.S. Billings Multiplier ~13% ~2.5x ~4.5x 5% 3% AXP U.S. Billed Business Growth Nominal U.S. GDP Growth Real U.S. GDP Growth Source: Bureau of Economic Analysis (bea.gov). Note: AXP U.S. Billed Busi

  47. Slide 47: Expense to Revenue Ratio

    Expense to Revenue Ratio Adjusted Expenses as % of Managed Revenue* 81% 74% 75% 73% 73% 71% 71% 70% 67% 71% 64% 64% Adj. 70% Adj 2007 2008 2009 2010 2011 2012 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Note: Beginning in 2011, the Company reclassified certain contractual lump sum payments to partners as either c

  48. Slide 48: Strong Capital Position

    Strong Capital Position 2012 Payout Ratio: 98% 12.3% 11.9% 2011 Tier 1 Capital Balance Sheet Dividends Share 2012 Tier 1 Common Ratio Generated Growth/Other Repurchases Common Ratio Note: Payout Ratio is calculated by dividing the total amount returned to shareholders through dividends and share rep

  49. Slide 49: Slide 49

  50. Slide 50: Potential Slow Growth Scenarios

    Potential Slow Growth Scenarios Scenario 1 – Contribution to EPS Growth 700bps (200bps) 500bps 12% (300bps) 5% Revenue OPEX M&P/Rewards Provision/Credit Share EPS Repurchase 50

  51. Slide 51: Potential Slow Growth Scenarios

    Potential Slow Growth Scenarios Scenario 2 – Contribution to EPS Growth 500bps (200bps) 400bps 9% (300bps) 5% Revenue OPEX M&P/Rewards Provision/Credit Share EPS Repurchase 51

  52. Slide 52: Potential Slow Growth Scenarios

    Potential Slow Growth Scenarios Scenario 3 – Contribution to EPS Growth 600bps 15% 700bps (200bps) (300bps) 7% Revenue OPEX M&P/Rewards Provision/Credit Share EPS Repurchase 52

  53. Slide 53: Slide 53

  54. Slide 54: Expense Balance

    Expense Balance Adjusted Total Expense as a % of Managed Revenue* 74% 75% 71% 67% 64% 64% 10% Marketing & 11% 9% 9% Promotion 8% 7% 20% 23% 21% 19% 16% 17% Adjusted CM Rewards & Services* Adjusted Opex* 39% 40% 40% 43% 42% 40% 2007 2008 2009 2010 2011 2012 *Adjusted Total Expenses, Adjusted Cardmemb

  55. Slide 55: Adjusted Total Operating Expenses

    Adjusted Total Operating Expenses* 2009-2012 FX Adjusted to 2011 Rates*** '09-'11 '11 –'12 $ Billions CAGR YOY $12.5 7% $12.8 3% $11.7 Occupancy & $11.0 Equipment, Communications, 1% 8% Adj. Other, Net** Professional Services 10% 1% Adjusted Salaries & 9% 1% Benefits** 2009 2010 2011 2012 *Adjusted

  56. Slide 56: Adjusted Total Operating Expenses

    Adjusted Total Operating Expenses* 2009-2012 FX Adjusted to 2011 Rates*** '09-'11 '11 –'12 $ Billions CAGR YOY $12.5 7% $12.8 3% $11.7 $11.0 Global Services Group (2%) (2%) Technology Development 18% 3% Adjusted Other Opex** 6% 3% Investment Opex 29% 14% 2009 2010 2011 2012 See Glossary of Selected

  57. Slide 57: Operating Expense Growth Targets – Feb 2012

    Operating Expense Growth Targets – Feb 2012 2009-2011 CAGR 2-3 Year (Fx Adj)** Target Revenue 4% Adj. Total Operating Expense* > Revenue Growth < Revenue Growth Global Services Group (2%) Flat to 2% Technology Development Spending 18% Flat to 2% Investment Opex - Sales Force, New Business Initiative

  58. Slide 58: 2012 Performance

    2012 Performance 2011-2012 2009-2011 CAGR 2-3 Year YOY Growth (Fx Adj)** Target (Fx Adj)** Revenue 4% 6% Adj. Total Operating Expense* > Revenue Growth < Revenue Growth 3% Global Services Group (2%) Flat to 2% (2%) Technology Development Spending 18% Flat to 2% 3% Investment Opex - Sales Force, New

  59. Slide 59: Restructuring Overview

    Restructuring Overview $400 Estimated million 5,400 charge in in job Q4 2012 reductions 59

  60. Slide 60: Restructuring Overview

    Restructuring Overview Net Headcount Reductions  Just over 80% of the headcount reductions are in: – Global Services – Travel Businesses – Staff Functions  U.S. and International impact is proportional to AXP employee base 60

  61. Slide 61: Global Services

    Global Services Technologies World Service Global Credit Administration Global Business Services 61

  62. Slide 62: Global Servicing Network

    Global Servicing Network First Call Call Handling Time 19% Improvement Resolution Reduction in 13 seconds >82% Servicing Sites 62

  63. Slide 63: Global Services

    Global Services Technologies World Service Global Credit Administration Global Business Services 63

  64. Slide 64: Global Services Productivity

    Global Services Productivity Indexed to 2009 35% Recommend to Friend 30% (U.S.) 25% Transactions 20% Cards in Force 15% 10% 5% 0% Global Services Group (5%) Operating Expenses (10%) (Fx Adj) * 2009 2010 2011 2012 Note: See Glossary of Selected Terminology for the definitions of certain key terms. *

  65. Slide 65: Travel Businesses

    Travel Businesses  Create an optimal travel servicing network to better meet the needs of our clients  Invest in new capabilities to serve our customers more effectively and efficiently 65

  66. Slide 66: Staff Group Functions

    Con icati S COMMUNICATIONS Structural Efficiencies

  67. Slide 67: Operating Expense Growth Targets – Feb 2012

    Operating Expense Growth Targets – Feb 2012 2-3 Year Target Total Operating Expense < Revenue Growth Global Services Group Flat to 2% Technology Development Spending Flat to 2% Investment Opex Flexible; - Sales Force, New Business Initiatives, Acquisitions & GNS Tied to Revenue Generation - Regulato

  68. Slide 68: Operating Expense Growth Target

    Operating Expense Growth Target 7% 3% <3% 2009-2011 CAGR 2011-2012 2013 & 2014 (Fx Adj)* YOY Growth Annual Target (Fx Adj)* * See Slide 55 for an explanation of FX adjusted information and Annex 8 for growth rates on a GAAP basis. 2009 to 2011 CAGR has also been adjusted for the settlement proceeds

  69. Slide 69: Slide 69

  70. Slide 70: Annex 1: Adjusted Diluted EPS Reconciliation

    Annex 1 Adjusted Diluted EPS Reconciliation 2010 2012 Diluted EPS on a Net Income Basis, Attributable to Common Shareholders $3.35 $3.89 Q4'10 Restructuring Charge* $0.05 Q4'12 Restructuring Charges* $0.25 Q4'12 Membership Rewards Estimation Process Enhancement Expense* $0.19 Q4'12 Cardmember Reimbu

  71. Slide 71: Annex 2: Adjusted Return on Average Equity

    Annex 2 Adjusted Return on Average Equity 2012 ($ in millions) GAAP Net Income $ 4,482 (A) Adjustments for Q4'12 Charges (After-Tax) Restructuring Charges $ 287 Membership Rewards Estimation Process Enhancement Expense $ 212 Cardmember Reimbursements $ 95 Adjusted Net Income $ 5,076 (B) GAAP Average

  72. Slide 72: Annex 3: Region Billed Business Reported & FX Adjusted

    Annex 3 Region Billed Business - Reported & FX Adjusted* % increase/(decrease) vs. prior year: Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 EMEA Reported 4% 13% 23% 15% 4% 4% (4%) (4%) 5% FX Adjusted 10% 10% 11% 8% 4% 6% 4% 3% 5% JAPA Reported 29% 28% 36% 31% 18% 22% 10% 8% 11% FX Adjusted

  73. Slide 73: Annex 4

    Annex 4 ($ in millions) Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 GAAP Total Operating Expenses $2,685 $3,195 $2,752 $2,915 $3,100 $3,197 $3,110 $3,210 $3,052 $3,798 Visa/MasterCard Settlement Payments 220 220 220 220 70 70 Q4'12 Charges: Restructuring Charges* (400) Cardmember Rei

  74. Slide 74: Annex 5

    Annex 5 ($ in millions) 2007 2008 2009 2010 2011 2012 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 GAAP Total Revenues Net of Interest Expense $27,462 $28,227 $24,336 $27,582 $29,962 $31,582 $7,742 $7,614 $7,965 $7,862 $8,141 Securitization Adjustments: Discount revenue, net card fees and other 310 400 331 NA NA N

  75. Slide 75: Annex 6

    Annex 6 ($ in millions) Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 GAAP Total Revenues Net of Interest Expense $7,742 $7,614 $7,965 $7,862 $8,141 Q4'12 Charges: Cardmember Reimbursements* 93 Managed Total Revenues Net of Interest Expense $7,742 $7,614 $7,965 $7,862 $8,234 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 GAAP Total

  76. Slide 76: Annex 7

    Annex 7 ($ in millions) 2007 2008 2009 2010 2011 2012 GAAP Total Revenues, Net of Interest Expense $27,462 $28,227 $24,336 $27,582 $29,962 $31,582 Securitization Adjustments: Discount revenue, net card fees and other 310 400 331 NA NA NA Interest income 3,130 3,512 3,097 NA NA NA Securitization inco

  77. Slide 77: Annex 7 (Continued)

    Annex 7 (Continued) 2007 2008 2009 2010 2011 2012 GAAP Marketing and Promotion Expense $2,630 $2,513 $2,010 $3,147 $2,996 $2,890 GAAP Marketing & Promotion Expense / GAAP Total Revenues Net of Interest Expense 10% 9% 8% 11% 10% 9% GAAP Marketing & Promotion Expense / Mgd Total Revenues Net of Intere

  78. Slide 78: Annex 8

    Annex 8 '09 - '11 CAGR '11 - '12 YoY FX Adjusted† GAAP Basis FX Adjusted† GAAP Basis Total Operating Expense* 7% 12% 3% 10% Salaries & Benefits** 9% 11% 1% 6% Professional Services 10% 11% 1% 0% Occupancy & Equipment, Communicatons and Other, Net* 1% 14% 8% 31% Global Services Group (2%) (1%) (2%) (

  79. Slide 79: Glossary of Selected Terminology

    Glossary of Selected Terminology  Cards-in-force – Represents the number of cards that are issued and outstanding. This includes basic and supplemental cards issued and outstanding within our proprietary and non-proprietary portfolios, except for retail co-brand cardmember accounts which have no ou

American Express Company — Investor Day (February 2013) on 6ix