American Express Company
American Express Second Quarter Earnings from Continuing Operations
Rise 13%; Revenues up 14% on Record Cardmember Spending; Nearly 2 Million
Cards-in-Force Added in the Quarter
American Express Company today reported second quarter income from continuing
operations of $972 million, up 13 percent from $860 million a year ago.
(Millions, except per share amounts)
Quarters Ended Percentage Six Months Ended Percentage
June 30, Inc/(Dec) June 30, Inc/(Dec)
-------------- ---------- ---------------- ----------
2006 2005 2006 2005
------ ------ ------- -------
Revenues $6,878 $6,020 14% $13,210 $11,660 13%
Income From
Continuing
Operations $ 972 $ 860 13% $ 1,848 $ 1,605 15%
(Loss)/Income
From
Discontinued
Operations $ (27) $ 153 # $ (30) $ 354 #
Net Income $ 945 $1,013 (7%) $ 1,818 $ 1,959 (7%)
Earnings Per
Common Share -
Basic:
Income From
Continuing
Operations $ 0.80 $ 0.70 14% $ 1.51 $ 1.30 16%
(Loss)/Income
From
Discontinued
Operations $(0.02) $ 0.12 # $ (0.02) $ 0.29 #
Net Income $ 0.78 $ 0.82 (5%) $ 1.49 $ 1.59 (6%)
Earnings Per
Common Share -
Diluted:
Income From
Continuing
Operations $ 0.78 $ 0.69 13% $ 1.48 $ 1.27 17%
(Loss)/Income
From
Discontinued
Operations $(0.02) $ 0.12 # $ (0.03) $ 0.29 #
Net Income $ 0.76 $ 0.81 (6%) $ 1.45 $ 1.56 (7%)
Average Common
Shares
Outstanding
Basic 1,217 1,231 (1%) 1,224 1,235 (1%)
Diluted 1,242 1,254 (1%) 1,250 1,259 (1%)
Return on Average
Total
Shareholders'
Equity* 29.8% 23.1% 29.8% 23.1%
----------------------------------------------------------------------
* Computed on a trailing 12-month basis using reported net income
over average total shareholders' equity (including discontinued
operations) as included in the Consolidated Financial Statements
prepared in accordance with U.S. generally accepted accounting
principles (GAAP).
# Denotes a variance of more than 100%.
Diluted earnings per share from continuing operations were $0.78, up 13 percent
from $0.69 a year ago.
Including results for businesses that the Company has spun off or sold during
the past year, net income for the second quarter totaled $945 million, down 7
percent from $1.0 billion a year ago.
Net income per share on a diluted basis was $0.76, down 6 percent from $0.81.
The Company's reported return on equity (ROE) was 29.8 percent, up from 23.1
percent a year ago. Pro forma ROE, which is based on continuing operations, was
33.1 percent. (For further information about pro forma ROE, see the "Pro Forma
ROE" section below.)
Consolidated revenues rose 14 percent to $6.9 billion, up from $6.0 billion a
year ago.
Consolidated expenses totaled $5.4 billion, up 11 percent from $4.9 billion a
year ago.
"The second quarter results were driven by record spending on American Express
cards with strong growth among consumers, small businesses and corporations,"
said Kenneth I. Chenault, chairman and chief executive. "Spending on our
network, which includes both proprietary and bank-issued cards, was consistently
strong in all regions worldwide and double-digit revenue growth was well above
our long-term target of 8%.
"Our investments in business building initiatives generated excellent returns.
We expanded our customer base, adding 1.9 million cards-in-force during the last
three months, and more than 7 million since this time last year.
"Overall credit quality remained strong and the underlying momentum of our
business continues to be excellent as we enter the second half of the year."
Results from continuing operations for the quarter included the following
significant items:
-- A $144 million ($131 million after-tax) net gain related to the
completion of the previously announced sale of the Company's card and
related operations in Brazil to Banco Bradesco S.A.;
-- A $62 million ($40 million after-tax) charge related to higher
redemption estimates related to the Membership Rewards program outside
the U.S.;
Significant items in the year-ago quarter included:
-- A $113 million ($73 million after-tax) benefit from the recovery of
September 11th related insurance claims;
-- An $87 million tax benefit resulting from an IRS audit of previous
years' tax returns.
This year's results from continuing operations included $53 million ($34 million
after-tax) of reengineering costs related to restructuring efforts in the
Company's finance, international card and business travel areas. Year ago
reengineering costs totaled $114 million ($74 million after-tax).
Discontinued operations
Discontinued operations for the quarter reflected a loss of $27 million,
primarily from the sale of the Company's international banking operations in
Brazil. The year ago period reflects income from discontinued operations of $153
million primarily related to Ameriprise Financial, Inc., which is no longer part
of American Express.
Segment results
The following discussion of second quarter results presents U.S. Card Services
segment results on a "managed basis," as if there had been no cardmember lending
securitization transactions and to reflect certain tax-exempt investment income
as if it had been earned on a taxable basis. This is the basis used by
management to evaluate operations. For further information about managed basis
and reconciliation of GAAP and managed information, see the "Managed Basis"
section below. The International Card & Global Commercial Services, Global
Network & Merchant Services, and Corporate & Other segment results below are
presented on a GAAP basis.
U.S. Card Services reported second quarter net income of $616 million, up 29
percent from $477 million a year ago.
Total revenues for the second quarter increased 14 percent to $3.7 billion,
reflecting growth in spending and borrowing by U.S. consumers and small
businesses.
Total expenses increased 9 percent. Marketing, promotion, rewards and cardmember
services expenses increased 15 percent, reflecting greater rewards costs and
marketing and promotion activities. Provisions for losses declined 17 percent
due to lower write-offs which benefited from last year's bankruptcy legislation
and improved collections.
International Card & Global Commercial Services ("ICGCS") reported second
quarter net income of $225 million, unchanged from the prior year. The benefit
of higher business volumes and the segment's share of the Brazilian gain were
offset by higher provision expenses, greater Membership Rewards-related costs,
and a substantially higher effective tax rate.
Total revenues for the second quarter increased 9 percent over the year-ago
period to $2.4 billion. Strong growth in spending and borrowing by Cardmembers
more than offset a decline in travel commissions and fees.
Second quarter expenses increased 7 percent over the year-ago period to $2.1
billion. The increase reflected a significantly higher provision for losses and
benefits that was driven by increased write-offs in international markets,
primarily Taiwan, and higher cost of funds related to investment certificates
sold through American Express Bank. Expenses also included the previously
mentioned charge related to the Membership Rewards program outside the U.S.
These items were partially offset by a $119 million ($109 million after-tax)
gain on the sale of the card operations in Brazil, which were reflected as a
contra-expense.
Last year's second quarter included a $33 million benefit from the IRS audit of
tax returns that was mentioned earlier.
Global Network & Merchant Services reported second quarter net income of $200
million, up 29 percent from $155 million a year ago.
Total revenues for the second quarter increased 14 percent over year-ago levels
to $789 million. The increase reflects continued strong growth in billed
business, offset by the impact of a decline in discount rate.
Bank partners that issue cards on the American Express network added 2.6 million
cards-in-force from a year ago. Total cards-in-force at the end of the quarter
also includes an additional 1.3 million cards transferred from ICGCS in
connection with the signing of an independent operator agreement with Banco
Bradesco S.A. Spending on Global Network Services cards increased 31 percent
from a year ago.
Total expenses increased 6 percent from year-ago levels to $474 million.
Marketing and promotion expenses increased 7 percent.
Second quarter expenses are net of $25 million ($22 million after-tax) of the
previously mentioned Brazilian gain. This benefit was substantially offset by an
adjustment in the amortization expenses relating to an overseas joint-venture.
Corporate & Other reported second quarter net expenses of $69 million, compared
with net income of $3 million a year ago. The year ago quarter reflects $112
million of the previously mentioned September 11th insurance recovery and $54
million of the previously mentioned tax benefit resulting from an IRS audit of
previous years' tax returns.
Managed Basis
For U.S. Card Services, managed basis means the presentation assumes there have
been no securitization transactions, i.e. all securitized cardmember loans and
related income effects are reflected as if they were in the Company's balance
sheet and income statements, respectively. 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. Asset securitization is just one of several ways for the
Company to fund cardmember loans. Use of a managed basis presentation, including
non-securitized and securitized cardmember loans, presents a more accurate
picture of the key dynamics of the cardmember lending business, avoiding
distortions due to the mix of funding sources at any particular point in time.
The Company does not currently securitize international loans.
Irrespective of the funding mix, it is important for management and investors to
see metrics, such as changes in delinquencies and write-off rates, for the
entire cardmember lending portfolio because they are more representative of the
economics of the aggregate cardmember relationships and ongoing business
performance and trends over time. It is also important for investors to see the
overall growth of cardmember loans and related revenue 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 managed basis presentation for U.S. Card Services also 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 following table reconciles the GAAP-basis U.S. Card Services income
statements to the managed-basis information.*
U.S. Card Services
Selected Financial Information
(preliminary, millions) GAAP Basis
----------------------------
%
Inc/
Quarters Ended June 30, 2006 2005 (Dec)
-------- ------- -------
Revenues:
Discount revenue, net card
fees and other $ 2,514 $ 2,233 13%
Cardmember lending:
Finance charge revenue 814 587 39
Interest expense 215 140 54
-------- ------- -------
Net finance charge revenue 599 447 34
Securitization income, net 372 296 26
-------- ------- -------
Total revenues 3,485 2,976 17
-------- ------- -------
Expenses:
Marketing, promotion, rewards
and cardmember services 1,106 974 14
Provision for losses 351 367 (4)
Human resources and other
operating expenses 1,108 938 18
-------- ------- -------
Total expenses 2,565 2,279 13
-------- ------- -------
Pretax segment income 920 697 32
Income tax provision 304 220 38
-------- ------- -------
Segment income $ 616 $ 477 29
======== ======= =======
U.S. Card Services
Selected Financial
Information
Securitization Tax Equivalent
(preliminary, millions) Effect Effect Managed Basis
------------- ------------- ---------------
%
Inc/
Quarters Ended June 30, 2006 2005 2006 2005 2006 2005 (Dec)
------ ------ ------ ------ ------ ----- ----
Revenues:
Discount revenue,
net card fees and
other $ 44 $ 51 $ 54 $ 57 $2,612 $2,341 12%
Cardmember lending:
Finance charge revenue 726 618 1,540 1,205 28
Interest expense 257 164 472 304 55
------ ------ ------ ------
Net finance charge
revenue 469 454 1,068 901 19
Securitization income,
net (372) (296) - - -
------ ------ ------ ------ ------ ------
Total revenues 141 209 54 57 3,680 3,242 14
------ ------ ------ ------ ------ ------
Expenses:
Marketing, promotion,
rewards and
cardmember services 9 (1) 1,115 973 15
Provision for losses 127 210 478 577(17)
Human resources and
other operating
expenses 5 - 1,113 938 19
------ ------ ------ ------
Total expenses $ 141 $ 209 2,706 2,488 9
------ ------ ------ ------ ------ ------
Pretax segment income 54 57 974 754 29
Income tax provision $ 54 $ 57 $ 358 $ 277 29
------ ------ ------ ------
* Amounts herein reflect certain reclassifications as noted in the
Company's Form 8-K filed with the SEC dated April 5, 2006.
Pro Forma ROE
The Company's consolidated return on equity (ROE) is calculated on a trailing
12-month basis using reported net income over average total shareholders' equity
(including discontinued operations). The Company also reports pro forma ROE,
which is determined on a trailing 12-month basis using income from continuing
operations (which excludes discontinued operations) over the average month-end
shareholders' equity at September 30, 2005 through June 30, 2006. Management
believes pro forma ROE is an important measure because it reflects performance
of the Company's continuing businesses by excluding the impact of Ameriprise
Financial, Inc. and American Express Tax and Business Services, Inc., which were
disposed of as of September 30, 2005.
ROE Pro Forma ROE
Trailing 12-months net income: Trailing 12-months income from
$3.6 billion continuing operations: $3.5 billion
Trailing 12-months average Average month-end shareholders' equity
total shareholders' for the period from September 30, 2005
equity: $12.0 billion through June 30, 2006: $10.5 billion
ROE: 29.8% Pro forma ROE: 33.1%
American Express Company (www.americanexpress.com) is a leading global payments,
network, travel, and banking company founded in 1850.
Note: The 2006 Second Quarter Earnings Supplement, as well as CFO Gary
Crittenden's presentation from the investor conference call referred to below,
will be available today on the American Express web site at
http://ir.americanexpress.com. An investor conference call to discuss second
quarter earnings results, operating performance and other topics that may be
raised during the discussion will be held at 5:00 p.m. (EST) today. Live audio
of the conference call will be accessible to the general public on the American
Express web site at http://ir.americanexpress.com. A replay of the conference
call also will be available today at the same web site address.
This release includes forward-looking statements, which are subject to risks and
uncertainties. The words "believe," "expect," "anticipate," "optimistic,"
"intend," "plan," "aim," "will," "may," "should," "could," "would," "likely,"
and similar expressions are intended to identify forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. The Company
undertakes no obligation to update or revise any forward-looking statements.
Factors that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the following: the
Company's ability to generate sufficient net income to achieve a return on
equity on a GAAP basis of 28 percent to 30 percent; the Company's ability to
grow its business and 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, over time,
which will depend on the Company's ability to manage its capital needs and the
effect of business mix, acquisitions and rating agency requirements; 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 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, 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 introduce new products, reward program enhancements and service enhancements
on a timely basis during 2006; 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 continuation of favorable
trends, including increased travel and entertainment spending, and the overall
level of consumer confidence; the costs and integration of acquisitions; 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 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; 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; the Company's ability to manage
credit risk related to consumer debt, business loans, merchant bankruptcies and
other credit trends and the rate of bankruptcies, which can affect spending on
card products, debt payments by individual and corporate customers and
businesses that accept the Company's card products and returns on the Company's
investment portfolios; bankruptcies, restructurings or similar events 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; risks associated with the Company's agreements with
Delta Air Lines to prepay $300 million for the future purchases of Delta
SkyMiles rewards points; fluctuations in foreign currency exchange rates;
fluctuations in interest rates, which impact the Company's borrowing costs and
return on lending products; 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
potential negative effect on the Company's businesses and infrastructure,
including information technology, of terrorist attacks, 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; 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, 2005, and
its other reports filed with the SEC.
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
June 30,
------------------- Percentage
2006 2005 Inc/(Dec)
------- ------- -----------
Revenues
Discount revenue $ 3,292 $ 2,860 15 %
Cardmember lending net
finance charge revenue 867 637 36
Net card fees 533 506 5
Travel commissions and fees 483 502 (4)
Other commissions and fees 642 589 9
Securitization income, net 372 296 26
Other investment and
interest income,net 274 269 2
Other 415 361 15
------- -------
Total 6,878 6,020 14
------- -------
Expenses
Marketing, promotion, rewards
and cardmember services 1,671 1,445 16
Human resources 1,276 1,268 1
Provision for losses and benefits:
Charge card 192 234 (18)
Cardmember lending 406 275 48
Investment certificates and
other 132 123 7
------- -------
Total 730 632 16
Professional services 658 544 21
Occupancy and equipment 365 356 3
Interest 336 232 45
Communications 113 113 -
Other 287 309 (7)
------- -------
Total 5,436 4,899 11
------- -------
Pretax income from continuing
operations 1,442 1,121 29
Income tax provision 470 261 80
------- -------
Income from continuing operations 972 860 13
(Loss)/Income from discontinued
operations, net of tax (27) 153 #
------- -------
Net income $ 945 $ 1,013 (7)
======= =======
# Denotes a variance of more than 100%
(Preliminary)
AMERICAN EXPRESS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Billions)
June 30, December 31,
2006 2005
------------ ------------
Assets
Cash and cash equivalents $ 7 $ 7
Accounts receivable 36 35
Investments 22 21
Loans 44 41
Other assets 8 10
------------ ------------
Total assets $ 117 $ 114
============ ============
Liabilities and Shareholders'
Equity
Short-term debt $ 15 $ 16
Long-term debt 36 31
Other liabilities 56 56
------------ ------------
Total liabilities 107 103
------------ ------------
Shareholders' equity 10 11
------------ ------------
Total liabilities and
shareholders' equity $ 117 $ 114
============ ============
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Millions)
Quarters Ended
June 30,
------------------- Percentage
2006 2005 Inc/(Dec)
------- ------- -----------
REVENUES
U.S. Card Services $ 3,485 $ 2,976 17 %
International Card & Global
Commercial Services 2,441 2,248 9
Global Network & Merchant Services 789 691 14
------- -------
6,715 5,915 14
Corporate & Other, including
adjustments and eliminations 163 105 55
------- -------
CONSOLIDATED REVENUES $ 6,878 $ 6,020 14
======= =======
PRETAX INCOME (LOSS) FROM
CONTINUING OPERATIONS
U.S. Card Services $ 920 $ 697 32 %
International Card & Global
Commercial Services 294 244 20
Global Network & Merchant Services 315 245 29
------- -------
1,529 1,186 29
Corporate & Other (87) (65) 34
------- -------
PRETAX INCOME FROM CONTINUING
OPERATIONS $ 1,442 $ 1,121 29
======= =======
NET INCOME (LOSS)
U.S. Card Services $ 616 $ 477 29 %
International Card & Global
Commercial Services 225 225 -
Global Network & Merchant Services 200 155 29
------- -------
1,041 857 21
Corporate & Other (69) 3 #
------- -------
Income from continuing operations 972 860 13
(Loss)/Income from discontinued
operations, net of tax (27) 153 #
------- -------
NET INCOME $ 945 $ 1,013 (7)
======= =======
# Denotes a variance of more than 100%.
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
Quarters Ended
June 30,
------------------- Percentage
2006 2005 Inc/(Dec)
------- ------- -----------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 0.80 $ 0.70 14 %
(Loss)/Income from discontinued
operations (0.02) 0.12 #
------- -------
Net income $ 0.78 $ 0.82 (5)%
======= =======
Average common shares outstanding
(millions) 1,217 1,231 (1)%
======= =======
DILUTED
Income from continuing operations $ 0.78 $ 0.69 13 %
(Loss)/Income from discontinued
operations (0.02) 0.12 #
------- -------
Net income $ 0.76 $ 0.81 (6)%
======= =======
Average common shares outstanding
(millions) 1,242 1,254 (1)%
======= =======
Cash dividends declared
per common share $ 0.15 $ 0.12 25 %
======= =======
SELECTED STATISTICAL INFORMATION
Quarters Ended
June 30,
------------------- Percentage
2006 2005 Inc/(Dec)
------- ------- -----------
Return on average total shareholders'
equity (A) 29.8% 23.1%
Common shares outstanding (millions) 1,216 1,240 (2)%
Book value per common share(B) $ 8.62 $ 13.84 (38)%
Shareholders' equity (billions)(B) $ 10.5 $ 17.2 (39)%
# Denotes a variance of more than 100%.
(A) Computed on a trailing 12-month basis using reported net income
over average total shareholders' equity (including discontinued
operations) as included in the Consolidated Financial Statements
prepared in accordance with GAAP.
(B) Total shareholders' equity and book value per common share
amounts prior to September 30, 2005 include discontinued
operations reflected in the Company's Consolidated Financial
Statements.
AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Millions)
Six Months Ended
June 30,
------------------- Percentage
2006 2005 Inc/(Dec)
------- ------- -----------
Revenues
Discount revenue $ 6,261 $ 5,499 14 %
Cardmember lending net
finance charge revenue 1,596 1,229 30
Net card fees 1,053 1,004 5
Travel commissions and fees 901 924 (2)
Other commissions and fees 1,281 1,147 12
Securitization income, net 758 612 24
Other investment and
interest income,net 549 530 4
Other 811 715 13
------- -------
Total 13,210 11,660 13
------- -------
Expenses
Marketing, promotion, rewards
and cardmember services 3,193 2,768 15
Human resources 2,516 2,455 2
Provision for losses and benefits:
Charge card 401 449 (11)
Cardmember lending 727 570 28
Investment certificates and
other 270 202 34
------- -------
Total 1,398 1,221 14
Professional services 1,219 1,031 18
Occupancy and equipment 711 692 3
Interest 615 433 42
Communications 226 230 (2)
Other 565 621 (9)
------- -------
Total 10,443 9,451 10
------- -------
Pretax income from continuing
operations 2,767 2,209 25
Income tax provision 919 604 52
------- -------
Income from continuing operations 1,848 1,605 15
(Loss)/Income from discontinued
operations, net of tax (30) 354 #
------- -------
Net income $ 1,818 $ 1,959 (7)
======= =======
# Denotes a variance of more than 100%
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY
(Millions)
Six Months Ended
June 30,
------------------- Percentage
2006 2005 Inc/(Dec)
------- ------- -----------
REVENUES
U.S. Card Services $ 6,665 $ 5,753 16 %
International Card & Global
Commercial Services 4,744 4,394 8
Global Network & Merchant Services 1,494 1,329 12
------- -------
12,903 11,476 12
Corporate & Other, including
adjustments and eliminations 307 184 67
------- -------
CONSOLIDATED REVENUES $13,210 $11,660 13
======= =======
PRETAX INCOME (LOSS) FROM
CONTINUING OPERATIONS
U.S. Card Services $ 1,716 $ 1,400 23 %
International Card & Global
Commercial Services 605 486 24
Global Network & Merchant Services 577 416 39
------- -------
2,898 2,302 26
Corporate & Other (131) (93) 41
------- -------
PRETAX INCOME FROM CONTINUING
OPERATIONS $ 2,767 $ 2,209 25
======= =======
NET INCOME (LOSS)
U.S. Card Services $ 1,162 $ 959 21 %
International Card & Global
Commercial Services 438 417 5
Global Network & Merchant Services 366 266 38
------- -------
1,966 1,642 20
Corporate & Other (118) (37) #
------- -------
Income from continuing operations 1,848 1,605 15
(Loss)/Income from discontinued
operations,net of tax (30) 354 #
------- -------
NET INCOME $ 1,818 $ 1,959 (7)
======= =======
# Denotes a variance of more than 100%.
(Preliminary)
AMERICAN EXPRESS COMPANY
FINANCIAL SUMMARY (CONTINUED)
Six Months Ended
June 30,
------------------- Percentage
2006 2005 Inc/(Dec)
------- ------- -----------
EARNINGS PER COMMON SHARE
BASIC
Income from continuing operations $ 1.51 $ 1.30 16 %
(Loss)/Income from discontinued
operations (0.02) 0.29 #
------- -------
Net income $ 1.49 $ 1.59 (6)%
======= =======
Average common shares outstanding
(millions) 1,224 1,235 (1)%
======= =======
DILUTED
Income from continuing operations $ 1.48 $ 1.27 17 %
(Loss)/Income from discontinued
operations (0.03) 0.29 #
------- -------
Net income $ 1.45 $ 1.56 (7)%
======= =======
Average common shares outstanding
(millions) 1,250 1,259 (1)%
======= =======
Cash dividends declared per common
share $ 0.27 $ 0.24 13 %
======= =======
SELECTED STATISTICAL INFORMATION
Six Months Ended
June 30,
------------------- Percentage
2006 2005 Inc/(Dec)
------- ------- -----------
Return on average total shareholders'
equity (A) 29.8% 23.1%
Common shares outstanding (millions) 1,216 1,240 (2)%
Book value per common share(B) $ 8.62 $ 13.84 (38)%
Shareholders' equity (billions)(B) $ 10.5 $ 17.2 (39)%
# Denotes a variance of more than 100%.
(A) Computed on a trailing 12-month basis using reported net income
over average total shareholders' equity (including discontinued
operations) as included in the Consolidated Financial Statements
prepared in accordance with GAAP.
(B) Total shareholders' equity and book value per common share
amounts prior to September 30, 2005 include discontinued
operations reflected in the Company's Consolidated Financial
Statements.
To view additional business segment financials go to:
http://ir.americanexpress.com
CONTACT: American Express Company
Robert Glick, 212-640-1041
robert.a.glick@aexp.com
Michael J. O'Neill, 212-640-5951
mike.o'neill@aexp.com
Amer.Express (LSE:AMX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Amer.Express (LSE:AMX)
Historical Stock Chart
From Oct 2023 to Oct 2024
