American Express 2006 Annual Report Download - page 38

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[ 36 ]
2006 fi nancial review
american express company
AMERICAN EXPRESS COMPANY
CONSOLIDATED RESULTS OF OPERATIONS
SUMMARY OF THE COMPANY’S
FINANCIAL PERFORMANCE
Years Ended December 31,
(Millions, except per share
amounts and ratio data) 2006 2005 2004
Net revenues $27,136 $24,068 $21,897
Expenses $21,808 $19,820 $18,066
Income from
continuing operations $3,729$ 3,221 $ 2,686
Net income $3,707$ 3,734 $ 3,445
Earnings per common
share from continuing
operations — diluted $3.01$ 2.56 $ 2.09
Earnings per common
share — diluted $2.99$ 2.97 $ 2.68
Return on average equity(a) 34.7% 25.4% 22.0%
(a) Calculated based on $3.7 billion, $3.7 billion, and $3.4 billion of
net income, and $10.7 billion, $14.7 billion, and $15.7 billion of
average shareholders’ equity for the trailing twelve months ending
December 31, 2006, 2005, and 2004, respectively.
SELECTED STATISTICAL INFORMATION
Years Ended December 31,
(Billions, except percentages
and where indicated) 2006 2005 2004
Card billed business(a):
United States $ 406.8 $ 354.6 $304.8
Outside the United States 154.7 129.8 111.3
Tota l $ 561.5 $ 484.4 $416.1
Total cards-in-force (millions)(a):
United States 48.1 43.0 39.9
Outside the United States 29.9 28.0 25.5
Tota l 78.0 71.0 65.4
Basic cards-in-force (millions)(a):
United States 37.1 32.8 30.3
Outside the United States 25.4 23.2 21.0
Tota l 62.5 56.0 51.3
Average discount rate(b) 2.57% 2.58% 2.61%
Average basic cardmember
spending (dollars)(a) $11,201 $10,445 $9,460
Average fee per card
(dollars)(a)(c) $35$35$34
(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 is computed based on net card fees excluding
the amortization of deferred direct acquisition costs.