American Express 2007 Annual Report Download - page 59

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[ 57 ]
2007 FINANCIAL REVIEW
AMERICAN EXPRESS COMPANY
INTERNATIONAL CARD SERVICES
SELECTED INCOME STATEMENT DATA
Years Ended December 31,
(Millions) 2007 2006 2005
Revenues
Discount revenue, net card fees and
other $3,703 $3,405 $3,210
Cardmember lending finance
revenue 1,372 1,146 967
Total revenues 5,075 4,551 4,177
Interest expense
Cardmember lending 493 393 323
Charge card and other 251 193 134
Revenues net of interest expense 4,331 3,965 3,720
Expenses
Marketing, promotion, rewards
and cardmember services 1,566 1,109 998
Human resources and other
operating expenses 1,836 1,692 1,795
Total 3,402 2,801 2,793
Provisions for losses 812 852 629
Pretax segment income 117 312 298
Income tax benefit (174) (31) (8)
Segment income $ 291 $ 343 $ 306
INTERNATIONAL CARD SERVICES
SELECTED STATISTICAL INFORMATION
Years Ended December 31,
(Billions, except percentages
and where indicated) 2007 2006 2005
Card billed business $ 98.0 $ 86.3 $ 76.4
Total cards-in-force (millions) 16.0 15.6 16.3
Basic cards-in-force (millions) 11.3 11.2 11.6
Average basic cardmember
spending (dollars) $ 8,772 $ 7,491 $ 6,805
International Consumer Travel:
Travel sales (millions) $ 1,113 $ 922 $ 885
Travel commissions and
fees/sales 8.6% 8.7% 9.3%
Total segment assets $ 21.4 $ 18.9 $ 17.4
Segment capital(a) $ 2.1 $ 1.7 $ 1.9
Return on segment capital(b) 15.3% 17.9% 16.4%
Cardmember receivables:
Total receivables $ 6.6 $ 6.0 $ 5.5
90 days past due as a % of total 1.8% 2.3% 2.2%
Net loss ratio as a % of
charge volume 0.26% 0.26% 0.25%
Cardmember lending:
Total loans $ 11.2 $ 9.7 $ 8.3
30 days past due loans
as a % of total 2.8% 2.9% 2.8%
Average loans $ 10.0 $ 8.9 $ 7.4
Net write-off rate 5.6% 5.9% 4.7%
Net finance revenue(c)/
average loans 8.8% 8.5% 8.8%
(a) Segment capital includes an allocation attributable to goodwill of $519
million, $518 million, and $542 million as of the years ended December 31,
2007, 2006, and 2005, respectively.
(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) Net finance revenue represents cardmember lending finance revenue less
cardmember lending interest expense.
57