4Q 06 ER Tables Final
Transcrição
4Q 06 ER Tables Final
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 herein reflect certain reclassifications as noted in the Company's Form 8-K dated April 5, 2006 filed with the Securities and Exchange Commission. (Preliminary) American Express Company Consolidated Statements of Income (Millions) Quarters Ended December 31, 2006 2005 Net revenues Discount revenue Cardmember lending finance charge revenue, net of interest Net card fees Travel commissions and fees Other commissions and fees Securitization income, net Other investment and interest income, net of interest Other Total Expenses Marketing, promotion, rewards and cardmember services Human resources Provision for losses and benefits: Charge card Cardmember lending Investment certificates and other Total Professional services Occupancy and equipment Interest Communications Other Total Pretax income from continuing operations Income tax provision Income from continuing operations (Loss)/Income from discontinued operations, net of tax Net income $ $ 3,458 990 479 450 654 347 265 565 7,208 $ Years Ended December 31, Percentage Inc/(Dec) 2006 12 % 41 (8) 3 4 18 (5) 33 13 1,734 1,336 1,581 1,177 10 14 6,516 5,065 5,841 4,829 12 5 277 484 130 891 807 405 338 116 358 5,985 1,223 298 925 (3) 922 290 415 108 813 714 390 249 115 382 5,421 959 208 751 (6) 745 (4) 17 20 10 13 4 36 1 (6) 10 28 43 23 (50) 24 935 1,623 529 3,087 2,710 1,491 1,236 449 1,254 21,808 5,328 1,599 3,729 (22) 3,707 1,038 1,349 386 2,773 2,308 1,428 920 457 1,264 19,820 4,248 1,027 3,221 513 3,734 (10) 20 37 11 17 4 34 (2) (1) 10 25 56 16 # (1) $ 12,978 3,457 1,994 1,778 2,555 1,489 1,078 1,807 27,136 $ $ 11,489 2,580 2,033 1,780 2,375 1,260 1,055 1,496 24,068 Percentage Inc/(Dec) 3,096 703 518 435 630 295 279 424 6,380 $ $ 2005 13 % 34 (2) 8 18 2 21 13 # - Denotes a variance of more than 100%. 8 (Preliminary) American Express Company Condensed Consolidated Balance Sheets (Billions) Assets Cash and cash equivalents Accounts receivable Investments Loans Other assets Total assets Liabilities and Shareholders' Equity Short-term debt Long-term debt Other liabilities Total liabilities Shareholders' equity Total liabilities and shareholders' equity December 31, 2006 December 31, 2005 $ 8 39 21 50 10 128 $ 15 43 59 117 $ $ $ $ 11 128 $ $ 7 35 21 41 10 114 16 31 56 103 11 114 9 (Preliminary) American Express Company Financial Summary (Millions) Quarters Ended December 31, 2006 2005 Net Revenues U.S. Card Services International Card & Global Commercial Services Global Network & Merchant Services $ Corporate & Other, including adjustments and eliminations CONSOLIDATED NET REVENUES Pretax Income (Loss) From Continuing Operations U.S. Card Services International Card & Global Commercial Services Global Network & Merchant Services Net Income (Loss) U.S. Card Services International Card & Global Commercial Services Global Network & Merchant Services 3,181 2,299 725 6,205 175 18 6 20 14 2006 % $ (14) Percentage Inc/(Dec) 2005 13,955 9,464 3,161 26,580 $ 556 27,136 $ 11,978 8,905 2,747 23,630 17 6 15 12 438 27 24,068 13 $ 7,208 $ 6,380 13 $ $ 770 262 297 1,329 (106) $ 538 290 252 1,080 (121) 43 (10) 18 23 (12) $ 3,305 1,148 1,188 5,641 (313) $ 2,571 1,093 882 4,546 (298) 29 5 35 24 5 $ 1,223 $ 959 28 $ 5,328 $ 4,248 25 $ 535 231 201 967 (42) 925 (3) $ 414 233 166 813 (62) 751 (6) 29 (1) 21 19 (32) 23 (50) $ 2,277 885 779 3,941 (212) 3,729 (22) $ 1,816 899 573 3,288 (67) 3,221 513 25 (2) 36 20 # 16 # $ 922 $ 745 24 $ 3,707 $ 3,734 (1) Corporate & Other Income from continuing operations (Loss)/Income from discontinued operations, net of tax NET INCOME $ 150 Corporate & Other PRETAX INCOME FROM CONTINUING OPERATIONS 3,756 2,433 869 7,058 Years Ended December 31, Percentage Inc/(Dec) % # - Denotes a variance of more than 100%. 10 (Preliminary) American Express Company Financial Summary (continued) Quarters Ended December 31, 2006 2005 Years Ended December 31, Percentage Inc/(Dec) 2006 2005 Percentage Inc/(Dec) EARNINGS PER COMMON SHARE BASIC Income from continuing operations (Loss)/Income from discontinued operations Net income $ $ Average common shares outstanding (millions) DILUTED Income from continuing operations (Loss)/Income from discontinued operations Net income $ $ 1,196 $ $ Average common shares outstanding (millions) Cash dividends declared per common share 0.77 0.77 0.76 (0.01) 0.75 $ $ 1,224 $ 0.15 $ % $ % $ 0.61 (0.01) 0.60 26 # 28 1,232 (3) % 0.60 (0.01) 0.59 27 27 1,258 (3) % 0.12 25 $ $ 1,212 % $ % $ % 3.08 (0.02) 3.06 3.01 (0.02) 2.99 1,233 $ $ 1,238 $ 0.57 2.61 0.42 3.03 2.56 0.41 2.97 1,258 $ 0.48 18 # 1 % % (2) % 18 # 1 % % (2) % 19 % Selected Statistical Information Quarters Ended December 31, 2006 2005 Return on average total shareholders' equity (A) Common shares outstanding (millions) Book value per common share Shareholders' equity (billions) $ $ 34.7% 1,199 8.76 10.5 $ $ 25.4% 1,241 8.50 10.5 Years Ended December 31, Percentage Inc/(Dec) (3) % 3 % - % 2006 $ $ 34.7% 1,199 8.76 10.5 2005 $ $ 25.4% 1,241 8.50 10.5 Percentage Inc/(Dec) (3) % 3 % - % # - Denotes a variance of more than 100%. (A) Computed on a trailing 12-month basis using net income over average total shareholders' equity (including discontinued operations) as included in the Consolidated Financial Statements prepared in accordance with GAAP. 11 (Preliminary) American Express Company Selected Statistical Information (Billions, except percentages and where indicated) Quarters Ended December 31, 2006 2005 Card billed business (A): United States Outside the United States Total $ $ 109.7 43.8 153.5 $ $ Years Ended December 31, Percentage Inc/(Dec) 96.9 35.7 132.6 13 % 23 16 2006 $ $ 406.8 154.7 561.5 2005 $ $ Percentage Inc/(Dec) 354.6 129.8 484.4 15 % 19 16 Total cards-in-force (millions) (A): United States Outside the United States Total 48.1 29.9 78.0 43.0 28.0 71.0 12 % 7 10 48.1 29.9 78.0 43.0 28.0 71.0 12 % 7 10 Basic cards-in-force (millions) (A): United States Outside the United States Total 37.1 25.4 62.5 32.8 23.2 56.0 13 % 9 12 37.1 25.4 62.5 32.8 23.2 56.0 13 % 9 12 2.55% 2,778 35 5.2 8.4% 7 % - % 6 % $ $ $ - % - % - % $ $ $ 19.7 7.0 7.7 4.9% 7.6% $ $ $ 19.7 7.1 7.8 5.1% 7.9% - % (1) % (1) % 1 % 11 % $ $ 7.2 22.5 $ $ 7.1 20.3 1 % 11 % Average discount rate (B) Average basic cardmember spending (dollars) (A) Average fee per card (dollars) (A) (C) Travel sales Travel commissions and fees/sales Worldwide Travelers Cheque and prepaid products: Sales Average outstanding Average investments Investment yield (D) Tax equivalent yield - managed (D) International banking: Total loans Private banking holdings $ $ $ 2.55% 2,985 35 5.5 8.2% $ $ $ $ $ $ 4.8 6.9 7.6 4.9% 7.5% $ $ $ 4.8 6.9 7.6 5.1% 7.9% $ $ 7.2 22.5 $ $ 7.1 20.3 2.57% 11,201 35 21.8 8.2% $ $ $ 2.58% 10,445 35 20.6 8.6% 7 % - % 6 % (A) Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements and certain insurance fees charged on proprietary cards. Cards-in-force include proprietary cards and cards issued under network partnership agreements. Average basic cardmember spending and average fee per card are computed from proprietary card activities only. (B) Computed as follows: Discount Revenue from all card spending (proprietary and Global Network Services) at merchants divided by all billed business (proprietary and Global Network Services) generating discount revenue at such merchants. Only merchants acquired by the Company are included in the computation. (C) Average fee per card are computed based on net card fees excluding the amortization of deferred acquisition costs. (D) Investment yield represents earnings on certain tax-exempt securities. The tax equivalent yield - managed represents earnings on such tax-exempt securities as if it had been earned on a taxable basis and assumes an income tax-rate of 35 percent. 12 (Preliminary) American Express Company Selected Statistical Information (continued) (Billions, except percentages and where indicated) Quarters Ended December 31, 2006 Worldwide cardmember receivables: Total receivables 90 days past due as a % of total Loss reserves (millions): % of receivables % of 90 days past due Net loss ratio as a % of charge volume Worldwide cardmember lending - owned basis (A): Total loans 30 days past due loans as a % of total Loss reserves (millions): Beginning balance Provision Net write-offs Other Ending balance % of loans % of past due Average loans Net write-off rate Net finance charge revenue(B)/average loans Worldwide cardmember lending - managed basis (C): Total loans 30 days past due loans as a % of total Loss reserves (millions): Beginning balance Provision Net write-offs Other Ending balance % of loans % of past due Average loans Net write-off rate Net finance charge revenue(B)/average loans $ 2005 37.4 1.8% 981 2.6% 147% 0.26% $ $ 43.3 2.7% $ 33.1 2.5% $ 1,126 451 (405) (1) 1,171 $ 952 374 (323) (7) 996 $ $ $ 2.7% 98% 40.2 4.0% 9.8% $ $ $ 34.2 1.6% 942 2.8% 177% 0.29% 3.0% 122% 31.0 4.2% 9.0% $ 63.5 2.6% $ 54.3 2.4% $ 1,571 608 (557) 1,622 $ 1,401 671 (596) (7) 1,469 $ $ 2.6% 97% 60.4 3.7% 9.5% $ $ 2.7% 114% 51.9 4.6% 9.4% Years Ended December 31, Percentage Inc/(Dec) 2006 9 % $ 4 % $ 31 % 18 % 21 25 (86) 18 2005 37.4 1.8% 981 2.6% 147% 0.24% $ $ 43.3 2.7% $ 996 1,507 (1,359) 27 1,171 $ 2.7% 98% 36.5 3.7% 9.5% 34.2 1.6% 942 2.8% 177% 0.26% 9 % 4 % $ 33.1 2.5% 31 % $ 972 1,227 (1,155) (48) 996 2 23 18 # 18 % 3.0% 122% 28.3 4.1% 9.1% 29 % 17 % $ $ 30 % $ 17 % $ 63.5 2.6% $ 54.3 2.4% 12 % (9) (7) # 10 $ 1,469 1,991 (1,933) 95 1,622 $ 1,475 2,097 (2,055) (48) 1,469 16 % $ $ 2.6% 97% 56.9 3.4% 9.4% Percentage Inc/(Dec) $ $ $ 2.7% 114% 48.9 4.2% 9.3% - % (5) (6) # 10 16 % # - Denotes a variance of more than 100%. (A) "Owned" or GAAP basis measurement reflects only cardmember loans included in the Company's Consolidated Balance Sheets. (B) Computed on an annualized basis. (C) 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. Refer to the information set forth under U.S. Card Services Selected Financial Information on page 20 for further discussion of the managed basis presentation. 13 (Preliminary) American Express Company Consolidated Statements of Income (Millions) December 31, 2006 Net revenues Discount revenue Cardmember lending finance charge revenue, net of interest Net card fees Travel commissions and fees Other commissions and fees Securitization income, net Other investment and interest income, net of interest Other Total Expenses Marketing, promotion, rewards and cardmember services Human resources Provision for losses and benefits: Charge card Cardmember lending Investment certificates and other Total Professional services Occupancy and equipment Interest Communications Other Total Pretax income from continuing operations Income tax provision Income from continuing operations (Loss)/Income from discontinued operations, net of tax Net income $ $ 3,458 990 479 450 654 347 265 565 7,208 September 30, 2006 Quarters Ended June 30, 2006 $ $ 3,259 912 462 427 620 384 264 431 6,759 3,292 839 533 483 642 372 274 415 6,850 March 31, 2006 $ 2,969 716 520 418 639 386 275 396 6,319 December 31, 2005 $ 3,096 703 518 435 630 295 279 424 6,380 1,734 1,336 1,589 1,213 1,671 1,276 1,522 1,240 1,581 1,177 277 484 130 891 807 405 338 116 358 5,985 1,223 298 925 (3) 922 257 412 129 798 684 375 324 107 331 5,421 1,338 382 956 11 967 192 406 132 730 658 365 308 113 287 5,408 1,442 470 972 (27) 945 209 321 138 668 561 346 266 113 278 4,994 1,325 449 876 (3) 873 290 415 108 813 714 390 249 115 382 5,421 959 208 751 (6) 745 $ $ $ $ 14 (Preliminary) American Express Company Financial Summary (Millions) December 31, 2006 Net Revenues U.S. Card Services International Card & Global Commercial Services Global Network & Merchant Services $ Corporate & Other, including adjustments and eliminations CONSOLIDATED NET REVENUES Pretax Income (Loss) From Continuing Operations U.S. Card Services International Card & Global Commercial Services Global Network & Merchant Services Net Income (Loss) U.S. Card Services International Card & Global Commercial Services Global Network & Merchant Services $ $ 3,534 2,287 798 6,619 140 3,485 2,441 789 6,715 March 31, 2006 $ 135 3,180 2,303 705 6,188 December 31, 2005 $ 131 3,181 2,299 725 6,205 175 $ 7,208 $ 6,759 $ 6,850 $ 6,319 $ 6,380 $ 770 262 297 1,329 (106) $ 819 281 314 1,414 (76) $ 920 294 315 1,529 (87) $ 796 311 262 1,369 (44) $ 538 290 252 1,080 (121) $ 1,223 $ 1,338 $ 1,442 $ 1,325 $ 959 $ 535 231 201 967 (42) 925 (3) $ 580 216 212 1,008 (52) 956 11 $ 616 225 200 1,041 (69) 972 (27) $ 546 213 166 925 (49) 876 (3) $ 414 233 166 813 (62) 751 (6) $ 922 $ 967 $ 945 $ 873 $ 745 Corporate & Other Income from continuing operations (Loss)/Income from discontinued operations, net of tax NET INCOME Quarters Ended June 30, 2006 150 Corporate & Other PRETAX INCOME FROM CONTINUING OPERATIONS 3,756 2,433 869 7,058 September 30, 2006 15 (Preliminary) American Express Company Financial Summary (continued) December 31, 2006 September 30, 2006 Quarters Ended June 30, 2006 $ $ March 31, 2006 December 31, 2005 EARNINGS PER COMMON SHARE BASIC Income from continuing operations (Loss)/Income from discontinued operations Net income $ $ Average common shares outstanding (millions) DILUTED Income from continuing operations (Loss)/Income from discontinued operations Net income $ 1,196 $ $ Average common shares outstanding (millions) Cash dividends declared per common share 0.77 0.77 0.76 (0.01) 0.75 0.15 $ 1,202 $ $ 1,224 $ 0.79 0.01 0.80 0.78 0.01 0.79 0.15 $ $ 1,217 $ $ 1,227 $ 0.80 (0.02) 0.78 0.78 (0.02) 0.76 0.15 $ $ 1,232 $ $ 1,242 $ 0.71 0.71 0.70 (0.01) 0.69 1,232 $ $ 1,258 $ 0.12 0.61 (0.01) 0.60 0.60 (0.01) 0.59 1,258 $ 0.12 Selected Statistical Information December 31, 2006 Return on average total shareholders' equity (A) Common shares outstanding (millions) Book value per common share Shareholders' equity (billions) $ $ 34.7% 1,199 8.76 10.5 September 30, 2006 $ $ 33.6% 1,204 8.93 10.8 Quarters Ended June 30, 2006 $ $ 29.8% 1,216 8.62 10.5 March 31, 2006 $ $ 27.3% 1,233 8.60 10.6 December 31, 2005 $ $ 25.4% 1,241 8.50 10.5 (A) Computed on a trailing 12-month basis using net income over average total shareholders' equity (including discontinued operations) as included in the Consolidated Financial Statements prepared in accordance with GAAP. 16 (Preliminary) American Express Company Selected Statistical Information (Billions, except percentages and where indicated) December 31, 2006 Card billed business (A): United States Outside the United States Total $ $ Total cards-in-force (millions) (A): United States Outside the United States Total Basic cards-in-force (millions) (A): United States Outside the United States Total Average discount rate (B) Average quarterly basic cardmember spending (dollars) (A) Average fee per card (dollars) (A) (C) Travel sales Travel commissions and fees/sales Worldwide Travelers Cheque and prepaid products: Sales Average outstanding Average investments Investment yield (D) Tax equivalent yield - managed (D) International banking: Total loans Private banking holdings $ $ $ 109.7 43.8 153.5 September 30, 2006 Quarters Ended June 30, 2006 $ $ $ 101.7 38.6 140.3 $ 102.5 38.0 140.5 March 31, 2006 $ $ 92.9 34.3 127.2 December 31, 2005 $ $ 96.9 35.7 132.6 48.1 29.9 78.0 46.8 29.7 76.5 45.4 29.0 74.4 44.0 28.5 72.5 43.0 28.0 71.0 37.1 25.4 62.5 36.0 25.2 61.2 34.8 24.1 58.9 33.7 23.6 57.3 32.8 23.2 56.0 2.55% 2,985 35 5.5 8.2% $ $ $ 2.57% 2,770 34 5.1 8.4% $ $ $ 2.57% 2,821 34 5.9 8.2% $ $ $ 2.58% 2,612 34 5.3 7.9% $ $ $ 2.55% 2,778 35 5.2 8.4% $ $ $ 4.8 6.9 7.6 4.9% 7.5% $ $ $ 5.6 7.2 7.9 4.9% 7.5% $ $ $ 5.1 7.0 7.6 5.0% 7.7% $ $ $ 4.2 6.9 7.7 5.0% 7.7% $ $ $ 4.8 6.9 7.6 5.1% 7.9% $ $ 7.2 22.5 $ $ 7.2 22.0 $ $ 7.2 21.2 $ $ 7.2 20.8 $ $ 7.1 20.3 (A) Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements and certain insurance fees charged on proprietary cards. Cards-in-force include proprietary cards and cards issued under network partnership agreements. Average basic cardmember spending and average fee per card are computed from proprietary card activities only. (B) Computed as follows: Discount Revenue from all card spending (proprietary and Global Network Services) at merchants divided by all billed business (proprietary and Global Network Services) generating discount revenue at such merchants. Only merchants acquired by the Company are included in the computation. (C) Average fee per card are computed based on net card fees excluding the amortization of deferred acquisition costs. (D) Investment yield represents earnings on certain tax-exempt securities. The tax equivalent yield - managed represents earnings on such tax-exempt securities as if it had been earned on a taxable basis and assumes an income tax-rate of 35 percent. 17 (Preliminary) American Express Company Selected Statistical Information (continued) (Billions, except percentages and where indicated) December 31, 2006 Worldwide cardmember receivables: Total receivables 90 days past due as a % of total Loss reserves (millions): % of receivables % of 90 days past due Net loss ratio as a % of charge volume Worldwide cardmember lending - owned basis (A): Total loans 30 days past due loans as a % of total Loss reserves (millions): Beginning balance Provision Net write-offs Other Ending balance % of loans % of past due Average loans Net write-off rate Net finance charge revenue(B)/average loans Worldwide cardmember lending - managed basis (C): Total loans 30 days past due loans as a % of total Loss reserves (millions): Beginning balance Provision Net write-offs Other Ending balance % of loans % of past due Average loans Net write-off rate Net finance charge revenue(B)/average loans $ September 30, 2006 37.4 1.8% 981 2.6% 147% 0.26% $ $ 43.3 2.7% $ 1,126 451 (405) (1) 1,171 2.7% 98% 40.2 4.0% 9.8% $ $ $ Quarters Ended June 30, 2006 35.0 1.8% 947 2.7% 149% 0.26% $ $ 38.3 2.8% $ 1,086 381 (353) 12 1,126 2.9% 106% 37.5 3.8% 9.6% $ $ $ March 31, 2006 34.7 1.8% 948 2.7% 150% 0.24% $ $ 36.3 2.7% $ 1,053 376 (331) (12) 1,086 3.0% 113% 35.2 3.8% 9.6% $ $ $ December 31, 2005 33.2 1.8% 978 2.9% 163% 0.19% $ $ 32.7 2.6% $ 33.1 2.5% $ 996 299 (270) 28 1,053 3.2% 123% 32.4 3.3% 8.9% $ 952 374 (323) (7) 996 3.0% 122% 31.0 4.2% 9.0% $ $ $ $ $ $ 34.2 1.6% 942 2.8% 177% 0.29% $ 63.5 2.6% $ 58.5 2.7% $ 56.5 2.5% $ 53.5 2.5% $ 54.3 2.4% $ 1,571 608 (557) 1,622 2.6% 97% 60.4 3.7% 9.5% $ 1,546 512 (498) 11 1,571 2.7% 101% 57.6 3.5% 9.6% $ 1,554 478 (474) (12) 1,546 2.7% 110% 55.3 3.4% 9.5% $ 1,469 393 (404) 96 1,554 2.9% 116% 53.7 3.0% 9.1% $ 1,401 671 (596) (7) 1,469 2.7% 114% 51.9 4.6% 9.4% $ $ $ $ $ $ $ $ $ $ (A) "Owned" or GAAP basis measurement reflects only cardmember loans included in the Company's Consolidated Balance Sheets (B) Computed on an annualized basis. (C) 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. Refer to the information set forth under U.S. Card Services Selected Financial Information on page 20 for further discussion of the managed basis presentation. 18 (Preliminary) U.S. Card Services Selected Income Statement Data (Millions) Quarters Ended December 31, 2006 Net revenues: Discount revenue, net card fees and other Cardmember lending: Finance charge revenue Interest expense Net finance charge revenue Securitization income, net Total net revenues Expenses: Marketing, promotion, rewards and cardmember services Provision for losses Human resources and other operating expenses Total expenses Pretax segment income Income tax provision Segment income $ $ 2,679 2005 $ Years Ended December 31, Percentage Inc/(Dec) 2006 12 % 1,018 288 730 347 3,756 685 200 485 295 3,181 49 44 51 18 18 3,434 957 2,477 1,489 13,955 2,408 616 1,792 1,260 11,978 43 55 38 18 17 1,242 526 1,218 2,986 770 235 535 1,097 509 1,037 2,643 538 124 414 13 3 17 13 43 90 29 4,509 1,630 4,511 10,650 3,305 1,028 2,277 3,911 1,676 3,820 9,407 2,571 755 1,816 15 (3) 18 13 29 36 25 $ 9,989 $ $ 8,926 Percentage Inc/(Dec) 2,401 $ $ 2005 12 % 19 (Preliminary) U.S. Card Services Selected Financial Information Managed Basis Presentation (Millions) Quarters Ended December 31, 2006 2005 Income Statement Data Discount revenue, net card fees and other Reported for the period (GAAP) Securitization adjustments Tax adjustments Managed discount revenue, net card fees and other Net finance charge revenue Reported for the period (GAAP) Securitization adjustments Managed net finance charge revenue Securitization income, net Reported for the period (GAAP) Securitization adjustments Managed securitization income, net Provision for losses Reported for the period (GAAP) Securitization adjustments Managed provision for losses $ $ $ $ $ $ $ $ 2,679 56 53 2,788 730 450 1,180 347 (347) - 526 153 679 $ $ $ $ $ $ $ $ Years Ended December 31, 2006 2005 Percentage Inc/(Dec) 2,401 53 56 2,510 485 518 1,003 12 % 6 (5) 11 51 (13) 18 295 (295) - 18 18 - 509 287 796 3 (47) (15) $ $ $ $ $ $ $ $ 9,989 199 217 10,405 2,477 1,880 4,357 1,489 (1,489) - 1,630 550 2,180 $ $ $ $ 8,926 210 226 9,362 12 % (5) (4) 11 1,792 1,953 3,745 38 (4) 16 $ 1,260 (1,260) $ - $ $ Percentage Inc/(Dec) 1,676 924 2,600 18 18 - (3) (40) (16) For U.S. Card Services, the managed basis presentation reflects an increase to interest income recorded to enable management to evaluate tax exempt investments on a basis consistent with taxable investment securities. On a GAAP basis, interest income associated with tax exempt investments is recorded based on amounts earned. Accordingly, information presented on a managed basis assumes that tax exempt securities earned income at rates as if the securities produced taxable income with a corresponding increase in the provision for income taxes. The managed basis presentation also 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. For the managed basis presentation, revenue and expenses related to securitized cardmember loans are reflected in net card fees and other, net finance charge revenue, and credit provision. On a managed basis, there is no securitization income, net, as the managed basis presentation assumes no securitization transactions have occurred. 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. 20 (Preliminary) U.S. Card Services Selected Financial Information Managed Basis Presentation (Millions) December 31, 2006 Income Statement Data Discount revenue, net card fees and other Reported for the period (GAAP) Securitization adjustments Tax adjustments Managed discount revenue, net card fees and other Net finance charge revenue Reported for the period (GAAP) Securitization adjustments Managed net finance charge revenue Securitization income, net Reported for the period (GAAP) Securitization adjustments Managed securitization income, net Provision for losses Reported for the period (GAAP) Securitization adjustments Managed provision for losses $ $ $ $ $ $ $ $ 2,679 56 53 2,788 730 450 1,180 347 (347) - 526 153 679 September 30, 2006 Quarters Ended June 30, 2006 $ $ $ $ $ $ $ $ $ 2,482 51 55 2,588 668 475 1,143 384 (384) - 446 144 590 $ $ $ $ $ $ $ 2,514 44 54 2,612 599 469 1,068 372 (372) - 351 127 478 March 31, 2006 $ $ $ $ $ $ $ $ 2,314 48 55 2,417 480 486 966 386 (386) - 307 126 433 December 31, 2005 $ $ $ $ $ $ $ $ 2,401 53 56 2,510 485 518 1,003 295 (295) - 509 287 796 See prior page for discussion of managed basis presentation. 21 (Preliminary) U.S. Card Services Selected Statistical Information (Billions, except percentages and where indicated) Quarters Ended December 31, 2006 2005 Card billed business Total cards-in-force (millions) Basic cards-in-force (millions) Average basic cardmember spending (dollars) U.S. Consumer Travel Travel sales (millions) Travel commissions and fees/sales Worldwide Travelers Cheque and prepaid products: Sales Average outstanding Average investments Investment yield (A) Tax equivalent yield - managed (A) Total segment assets Segment capital Return on segment capital (B) Cardmember receivables: Total receivables 90 days past due as a % of total Net loss ratio as a % of charge volume Cardmember lending - owned basis (C): Total loans 30 days past due loans as a % of total Average loans Net write-off rate Net finance charge revenue(D)/average loans Cardmember lending - managed basis (E): Total loans 30 days past due loans as a % of total Average loans Net write-off rate Net finance charge revenue(D)/average loans $ $ 90.8 40.7 30.1 3,044 $ $ Years Ended December 31, Percentage Inc/(Dec) 80.8 37.5 27.7 2,945 2006 12 9 9 3 % $ % $ 333.4 40.7 30.1 11,521 2005 $ $ 292.8 37.5 27.7 10,996 Percentage Inc/(Dec) 14 9 9 5 % % 27 % $ 597 8.2% $ 475 8.4% 26 % $ 2,357 8.4% $ 1,853 8.7% $ $ $ 4.8 6.9 7.6 4.9% 7.5% $ $ $ 4.8 6.9 7.6 5.1% 7.9% - % % % $ $ $ 19.7 7.0 7.7 4.9% 7.6% $ $ $ 19.7 7.1 7.8 5.1% 7.9% - % (1) % (1) % $ $ 79.7 5.0 46.2% $ $ 70.3 5.1 38.9% 13 % (2) % $ $ 79.7 5.0 46.2% $ $ 70.3 5.1 38.9% 13 % (2) % $ 20.6 2.1% 0.32% $ 19.2 1.8% 0.38% 7 % $ 20.6 2.1% 0.28% $ 19.2 1.8% 0.30% 7 % $ 33.6 2.7% 30.9 3.5% 9.4% $ 24.8 2.3% 23.2 4.1% 8.4% 35 % $ $ % % $ 24.8 2.3% 21.0 3.9% 8.5% 35 33 33.6 2.7% 27.6 3.0% 9.0% 31 % 17 % $ 17 % 16 % $ 16 % $ $ $ 53.8 2.6% 51.1 3.3% 9.2% $ $ $ 46.0 2.3% 44.1 4.6% 9.1% 53.8 2.6% 48.0 2.9% 9.1% $ $ $ 46.0 2.3% 41.5 4.1% 9.0% (A) Investment yield represents earnings on certain tax-exempt securities. The tax equivalent yield - managed represents earnings on such tax-exempt securities as if it had been earned on a taxable basis and assumes an income tax-rate of 35 percent. (B) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures and regulatory capital requirements. (C) "Owned" or GAAP basis measurement reflects only cardmember loans included in the Company's Consolidated Balance Sheets. (D) Computed on an annualized basis. (E) 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. Refer to the information set forth under U.S. Card Services Selected Financial Information on page 20 for further discussion of the managed basis presentation. 22 (Preliminary) U.S. Card Services Selected Income Statement Data (Millions) December 31, 2006 Net revenues: Discount revenue, net card fees and other Cardmember lending: Finance charge revenue Interest expense Net finance charge revenue Securitization income, net Total net revenues Expenses: Marketing, promotion, rewards and cardmember services Provision for losses Human resources and other operating expenses Total expenses Pretax segment income Income tax provision Segment income $ $ 2,679 September 30, 2006 Quarters Ended June 30, 2006 $ $ 2,482 2,514 March 31, 2006 $ 2,314 December 31, 2005 $ 2,401 1,018 288 730 347 3,756 928 260 668 384 3,534 814 215 599 372 3,485 674 194 480 386 3,180 685 200 485 295 3,181 1,242 526 1,218 2,986 770 235 535 1,127 446 1,142 2,715 819 239 580 1,106 351 1,108 2,565 920 304 616 1,034 307 1,043 2,384 796 250 546 1,097 509 1,037 2,643 538 124 414 $ $ $ $ 23 (Preliminary) U.S. Card Services Selected Statistical Information (Billions, except percentages and where indicated) December 31, 2006 Card billed business Total cards-in-force (millions) Basic cards-in-force (millions) Average quarterly basic cardmember spending (dollars) U.S. Consumer Travel Travel sales Travel commissions and fees/sales Worldwide Travelers Cheque and prepaid products: Sales Average outstanding Average investments Investment yield (A) Tax equivalent yield - managed (A) Total segment assets Segment capital Return on segment capital (B) Cardmember receivables: Total receivables 90 days past due as a % of total Net loss ratio as a % of charge volume Cardmember lending - owned basis (C): Total loans 30 days past due loans as a % of total Average loans Net write-off rate Net finance charge revenue(D)/average loans Cardmember lending - managed basis (E): Total loans 30 days past due loans as a % of total Average loans Net write-off rate Net finance charge revenue(D)/average loans $ $ 90.8 40.7 30.1 3,044 September 30, 2006 Quarters Ended June 30, 2006 $ $ $ 83.4 39.9 29.5 2,852 $ 83.9 39.1 28.9 2,925 March 31, 2006 $ $ 75.3 38.3 28.4 2,690 December 31, 2005 $ $ 80.8 37.5 27.7 2,945 $ 0.6 8.2% $ 0.6 8.5% $ 0.7 8.5% $ 0.5 8.1% $ 0.5 8.4% $ $ $ 4.8 6.9 7.6 4.9% 7.5% $ $ $ 5.6 7.2 7.9 4.9% 7.5% $ $ $ 5.1 7.0 7.6 5.0% 7.7% $ $ $ 4.2 6.9 7.7 5.0% 7.7% $ $ $ 4.8 6.9 7.6 5.1% 7.9% $ $ 79.7 5.0 46.2% $ $ 75.1 4.9 44.0% $ $ 70.8 4.7 41.8% $ $ 66.6 5.0 39.4% $ $ 70.3 5.1 38.9% $ 20.6 2.1% 0.32% $ 18.2 2.3% 0.33% $ 18.5 2.3% 0.28% $ 17.2 2.3% 0.20% $ 19.2 1.8% 0.38% $ 33.6 2.7% 30.9 3.5% 9.4% $ 29.3 2.7% 28.6 3.1% 9.2% $ 27.6 2.5% 26.4 2.9% 9.1% $ 24.3 2.4% 24.0 2.6% 8.1% $ 24.8 2.3% 23.2 4.1% 8.4% 53.8 2.6% 51.1 3.3% 9.2% $ 49.5 2.6% 48.7 3.0% 9.3% $ 47.8 2.4% 46.5 2.9% 9.2% $ 45.1 2.4% 45.3 2.6% 8.7% $ $ $ $ $ $ $ $ $ $ $ $ 46.0 2.3% 44.1 4.6% 9.1% (A) Investment yield represents earnings on certain tax-exempt securities. The tax equivalent yield - managed represents earnings on such tax-exempt securities as if it had been earned on a taxable basis and assumes an income tax-rate of 35 percent. (B) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures and regulatory capital requirements. (C) "Owned" or GAAP basis measurement reflects only cardmember loans included in the Company's Consolidated Balance Sheets. (D) Computed on an annualized basis. (E) 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. Refer to the information set forth under U.S. Card Services Selected Financial Information on page 20 for further discussion of the managed basis presentation. 24 (Preliminary) International Card & Global Commercial Services Selected Income Statement Data (Millions) Quarters Ended December 31, 2006 Net revenues: Discount revenue, net card fees and other Cardmember lending: Finance charge revenue Interest expense Net finance charge revenue Total net revenues Expenses: Marketing, promotion, rewards and cardmember services Provision for losses and benefits Human resources and other operating expenses Total expenses Pretax segment income Income tax provision Segment income $ $ 2,220 2005 $ 2,115 Years Ended December 31, Percentage Inc/(Dec) 2006 5 % $ 8,656 2005 $ 8,221 Percentage Inc/(Dec) 5 % 329 116 213 2,433 278 94 184 2,299 18 23 16 6 1,240 432 808 9,464 1,035 351 684 8,905 20 23 18 6 346 316 1,509 2,171 262 31 231 321 286 1,402 2,009 290 57 233 8 10 8 8 (10) (46) (1) 1,429 1,358 5,529 8,316 1,148 263 885 1,269 1,023 5,520 7,812 1,093 194 899 13 33 6 5 36 (2) $ $ $ 25 (Preliminary) International Card & Global Commercial Services Selected Statistical Information (Billions, except percentages and where indicated) Quarters Ended December 31, 2006 2005 Card billed business Total cards-in-force (millions) Basic cards-in-force (millions) Average basic cardmember spending (dollars) Global Corporate & International Consumer Travel Travel sales Travel commissions and fees/sales International banking: Total loans Private banking holdings Total segment assets Segment capital Return on segment capital (A) Cardmember receivables: Total receivables 90 days past due as a % of total Net loss ratio as a % of charge volume Cardmember lending: Total loans 30 days past due loans as a % of total Average loans Net write-off rate Net finance charge revenue(B)/average loans $ $ 51.2 22.3 17.9 2,874 $ $ 45.1 22.7 18.0 2,534 Years Ended December 31, Percentage Inc/(Dec) 2006 14 % (2) (1) 13 % $ $ 193.1 22.3 17.9 10,681 2005 $ $ 168.5 22.7 18.0 9,641 Percentage Inc/(Dec) 15 % (2) (1) 11 % $ 4.9 8.1% $ 4.7 8.4% 4 % $ 19.4 8.1% $ 18.8 8.6% 3 % $ $ 7.2 22.5 $ $ 7.1 20.3 1 % 11 % $ $ 7.2 22.5 $ $ 7.1 20.3 1 % 11 % $ $ 57.7 4.1 20.9% $ $ 51.7 4.1 23.2% 12 % - % $ $ 57.7 4.1 20.9% $ $ 51.7 4.1 23.2% 12 % - % $ 16.3 1.4% 0.19% $ 14.5 1.3% 0.18% 12 % $ 16.3 1.4% 0.18% $ 14.5 1.3% 0.21% 12 % $ 9.7 2.9% 9.3 5.7% 9.1% $ 8.3 2.8% 7.8 4.4% 9.4% 17 % $ $ $ 8.3 2.8% 7.4 4.7% 9.3% 17 % 19 % 9.7 2.9% 8.9 5.9% 9.1% $ $ $ 20 % (A) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures and regulatory capital requirements. (B) Computed on an annualized basis. 26 (Preliminary) International Card & Global Commercial Services Selected Income Statement Data (Millions) December 31, 2006 Net revenues: Discount revenue, net card fees and other Cardmember lending: Finance charge revenue Interest expense Net finance charge revenue Total net revenues Expenses: Marketing, promotion, rewards and cardmember services Provision for losses and benefits Human resources and other operating expenses Total expenses Pretax segment income Income tax provision Segment income $ $ 2,220 September 30, 2006 Quarters Ended June 30, 2006 $ $ 2,086 2,241 March 31, 2006 $ 2,109 December 31, 2005 $ 2,115 329 116 213 2,433 310 109 201 2,287 308 108 200 2,441 293 99 194 2,303 278 94 184 2,299 346 316 1,509 2,171 262 31 231 330 329 1,347 2,006 281 65 216 410 364 1,373 2,147 294 69 225 343 349 1,300 1,992 311 98 213 321 286 1,402 2,009 290 57 233 $ $ $ $ 27 (Preliminary) International Card & Global Commercial Services Selected Statistical Information (Billions, except percentages and where indicated) December 31, 2006 Card billed business Total cards-in-force (millions) Basic cards-in-force (millions) Average quarterly basic cardmember spending (dollars) Global Corporate & International Consumer Travel Travel sales Travel commissions and fees/sales International banking: Total loans Private banking holdings Total segment assets Segment capital Return on segment capital (A) Cardmember receivables: Total receivables 90 days past due as a % of total Net loss ratio as a % of charge volume Cardmember lending: Total loans 30 days past due loans as a % of total Average loans Net write-off rate Net finance charge revenue(B)/average loans $ $ 51.2 22.3 17.9 2,874 September 30, 2006 Quarters Ended June 30, 2006 $ $ $ 47.5 22.1 17.7 2,642 $ 49.2 22.2 17.8 2,654 March 31, 2006 $ $ 45.2 23.2 18.4 2,494 December 31, 2005 $ $ 45.1 22.7 18.0 2,534 $ 4.9 8.1% $ 4.5 8.3% $ 5.2 8.1% $ 4.8 7.8% $ 4.7 8.4% $ $ 7.2 22.5 $ $ 7.2 22.0 $ $ 7.2 21.2 $ $ 7.2 20.8 $ $ 7.1 20.3 $ $ 57.7 4.1 20.9% $ $ 57.3 4.4 21.2% $ $ 55.3 4.3 22.6% $ $ 53.0 4.3 23.2% $ $ 51.7 4.1 23.2% $ 16.3 1.4% 0.19% $ 16.4 1.3% 0.18% $ 15.8 1.3% 0.18% $ 15.6 1.3% 0.17% $ 14.5 1.3% 0.18% $ 9.7 2.9% 9.3 5.7% 9.1% $ 9.0 3.1% 8.9 5.9% 8.9% $ 8.7 3.2% 8.8 6.4% 9.1% $ 8.4 3.2% 8.4 5.5% 9.4% $ 8.3 2.8% 7.8 4.4% 9.4% $ $ $ $ $ (A) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures and regulatory capital requirements. (B) Computed on an annualized basis. 28 (Preliminary) Global Network & Merchant Services Selected Income Statement Data (Millions) Quarters Ended December 31, 2006 Net revenues: Discount revenue, fees and other Expenses: Marketing and promotion Provision for losses Human resources and other operating expenses Total expenses Pretax segment income Income tax provision Segment income 2005 $ 869 $ 125 46 401 572 297 96 201 Years Ended December 31, 2006 2005 Percentage Inc/(Dec) $ 725 $ 141 13 319 473 252 86 166 20 % (11) # 26 21 18 12 21 $ 3,161 $ 518 89 1,366 1,973 1,188 409 779 $ 2,747 $ 604 66 1,195 1,865 882 309 573 Percentage Inc/(Dec) 15 % (14) 35 14 6 35 32 36 29 (Preliminary) Global Network & Merchant Services Selected Statistical Information (Billions, except percentages and where indicated) Quarters Ended December 31, 2006 2005 Years Ended December 31, 2006 2005 Percentage Inc/(Dec) Percentage Inc/(Dec) Global Card billed business (A) $ 153.5 $ 132.6 16 % $ 561.5 $ 484.4 16 % Global Network & Merchant Services: Total segment assets Segment capital (millions) Return on segment capital (B) $ $ 4.4 1,272 60.3% $ $ 4.5 1,316 49.2% (2) % (3) % $ $ 4.4 1,272 60.3% $ $ 4.5 1,316 49.2% (2) % (3) % Global Network Services: Card billed business Total cards-in-force (millions) $ 11.5 15.0 $ 6.9 10.8 67 % 39 % $ 35.4 15.0 $ 24.0 10.8 48 % 39 % (A) Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements and certain insurance fees charged on proprietary cards. (B) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures and regulatory capital requirements. 30 (Preliminary) Global Network & Merchant Services Selected Income Statement Data (Millions) December 31, 2006 Net revenues: Discount revenue, fees and other Expenses: Marketing and promotion Provision for losses Human resources and other operating expenses Total expenses Pretax segment income Income tax provision Segment income $ 869 $ 125 46 401 572 297 96 201 September 30, 2006 $ 798 $ 118 19 347 484 314 102 212 Quarters Ended June 30, 2006 $ 789 $ 140 14 320 474 315 115 200 March 31, 2006 $ 705 $ 135 10 298 443 262 96 166 December 31, 2005 $ 725 $ 141 13 319 473 252 86 166 31 (Preliminary) Global Network & Merchant Services Selected Statistical Information (Billions, except percentages and where indicated) December 31, 2006 September 30, 2006 Quarters Ended June 30, 2006 March 31, 2006 December 31, 2005 Global Card billed business (A) $ 153.5 $ 140.3 $ 140.5 $ 127.2 $ 132.6 Global Network & Merchant Services: Total segment assets Segment capital Return on segment capital (B) $ $ 4.4 1.3 60.3% $ $ 5.1 1.3 57.9% $ $ 6.2 1.3 53.8% $ $ 5.7 1.3 51.7% $ $ 4.5 1.3 49.2% Global Network Services: Card billed business Total cards-in-force (millions) $ 11.5 15.0 $ 9.7 14.5 $ 7.6 13.1 $ 6.6 11.0 $ 6.9 10.8 (A) Global Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements and certain insurance fees charged on proprietary cards. (B) Computed on a trailing 12-month basis using segment income and equity capital allocated to segments based upon specific business operational needs, risk measures and regulatory capital requirements. 32