American Express 2003 Annual Report Download - page 47

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TRAVEL RELATED SERVICES
Results of Operations
STATEMENTS OF INCOME
Years Ended December 31, (Millions) 2003 2002 2001
Net revenues:
Discount revenue $8,781 $7,931 $ 7,714
Net card fees 1,835 1,726 1,675
Lending:
Finance charge revenue 2,525 2,338 2,643
Interest expense 483 510 939
Net finance charge revenue 2,042 1,828 1,704
Travel commissions and fees 1,507 1,408 1,537
Other commissions and fees 1,901 1,833 1,861
Travelers Cheque investment income 367 375 394
Securitization income, net 1,150 1,049 846
Other revenues 1,606 1,571 1,628
Total net revenues 19,189 17,721 17,359
Expenses:
Marketing, promotion, rewards and cardmember services 3,814 3,027 2,654
Provision for losses and claims:
Charge card 853 960 1,195
Lending 1,218 1,369 1,318
Other 127 149 164
Total 2,198 2,478 2,677
Charge card interest expense 786 1,001 1,443
Net discount expense ——96
Human resources 3,822 3,503 3,992
Other operating expenses 4,998 4,636 4,025
Restructuring charges —(4) 414
Disaster recovery charge ——79
Total expenses 15,618 14,641 15,380
Pretax income 3,571 3,080 1,979
Income tax provision 1,141 945 520
Net income $2,430 $2,135 $ 1,459
Note: Certain reclassifications of prior period amounts have been made to conform to the current presentation.
Travel Related Services reported net income of $2.4 billion in 2003, a 14 percent increase from $2.1 billion in 2002, which
increased 46 percent from 2001. Results for 2001 included restructuring charges of $414 million ($267 million after-tax)
and one-time costs and waived customer fees directly related to the September 11th terrorist attacks of $87 million ($57
million after-tax).
(p.45_axp_ financial review)