American Express 2009 Annual Report Download - page 33

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2009 FINANCIAL 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) 2009 2008 2007
Total revenues net of interest expense $24,523 $28,365 $27,559
Provisions for losses $ 5,313 $ 5,798 $ 4,103
Expenses $16,369 $18,986 $17,762
Income from continuing operations $ 2,137 $ 2,871 $ 4,126
Net income $ 2,130 $ 2,699 $ 4,012
Earnings per common share from
continuing operations — diluted $ 1.54 $ 2.47 $ 3.44
Earnings per common share — diluted $ 1.54 $ 2.32 $ 3.34
Return on average equity(a) 14.6% 22.3% 37.3%
Return on average tangible common
equity(b) 17.6% 28.0% 44.0%
(a) ROE is calculated by dividing (i) net income ($2.1 billion, $2.7
billion, and $4.0 billion for 2009, 2008, and 2007, respectively) by
(ii) average total shareholders’ equity ($14.6 billion, $12.1 billion,
and $10.8 billion for 2009, 2008, and 2007, respectively).
(b) Return on average tangible common equity is computed in the
same manner as ROE except the computation of average TCE
excludes average goodwill and other intangibles of $3.0 billion,
$2.5 billion, and $1.6 billion as of December 31, 2009, 2008, and
2007, respectively. The Company believes that return on average
tangible common equity is a useful measure of profitability of its
business.
SELECTED STATISTICAL INFORMATION(a)
Years Ended December 31,
(Billions, except percentages
and where indicated) 2009 2008 2007
Card billed business(b):
United States $ 423.7 $ 471.1 $ 459.3
Outside the United States 196.1 212.2 188.0
Total $ 619.8 $ 683.3 $ 647.3
Total cards-in-force (millions)(c):
United States 48.9 54.0 52.3
Outside the United States 39.0 38.4 34.1
Total 87.9 92.4 86.4
Basic cards-in-force (millions)(c):
United States 38.2 42.0 40.9
Outside the United States 34.3 33.4 29.2
Total 72.5 75.4 70.1
Average discount rate(d) 2.54% 2.55% 2.56%
Average basic cardmember spending
(dollars)(e) $11,213 $12,025 $12,106
Average fee per card (dollars)(e) $36$34$32
Average fee per card adjusted
(dollars)(e)
$40$39$36
(a) See Glossary of Selected Terminology for the definitions of certain
key terms and related information.
(b) 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. Card billed business is reflected in the United
States or outside the United States based on where the
cardmember is domiciled.
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