American Express 2009 Annual Report Download - page 71

CONSOLIDATED STATEMENTS OF INCOME
AMERICAN EXPRESS COMPANY
Years Ended December 31 (Millions, except per share amounts) 2009 2008 2007
Revenues
Non-interest revenues
Discount revenue $13,389 $15,025 $14,596
Net card fees 2,151 2,150 1,919
Travel commissions and fees 1,594 2,010 1,926
Other commissions and fees 1,778 2,307 2,417
Securitization income, net 400 1,070 1,507
Other 2,087 2,157 1,751
Total non-interest revenues 21,399 24,719 24,116
Interest income
Interest and fees on loans 4,468 6,159 6,351
Interest and dividends on investment securities 804 771 673
Deposits with banks and other 59 271 400
Total interest income 5,331 7,201 7,424
Interest expense
Deposits 425 454 566
Short-term borrowings 37 483 731
Long-term debt and other 1,745 2,618 2,684
Total interest expense 2,207 3,555 3,981
Net interest income 3,124 3,646 3,443
Total revenues net of interest expense 24,523 28,365 27,559
Provisions for losses
Charge card 857 1,363 1,140
Cardmember loans 4,266 4,231 2,761
Other 190 204 202
Total provisions for losses 5,313 5,798 4,103
Total revenues net of interest expense after provisions for losses 19,210 22,567 23,456
Expenses
Marketing, promotion, rewards and cardmember services 6,467 7,361 7,817
Salaries and employee benefits 5,080 6,090 5,438
Professional services 2,408 2,413 2,280
Other, net 2,414 3,122 2,227
Total 16,369 18,986 17,762
Pretax income from continuing operations 2,841 3,581 5,694
Income tax provision 704 710 1,568
Income from continuing operations 2,137 2,871 4,126
Loss from discontinued operations, net of tax (7) (172) (114)
Net income $ 2,130 $ 2,699 $ 4,012
Earnings per Common Share — Basic: (Note 18)
Income from continuing operations attributable to common shareholders(a) $ 1.55 $ 2.47 $ 3.49
Loss from discontinued operations (0.01) (0.14) (0.09)
Net income attributable to common shareholders(a) $ 1.54 $ 2.33 $ 3.40
Earnings per Common Share — Diluted: (Note 18)
Income from continuing operations attributable to common shareholders(a) $ 1.54 $ 2.47 $ 3.44
Loss from discontinued operations —(0.15) (0.10)
Net income attributable to common shareholders(a) $ 1.54 $ 2.32 $ 3.34
Average common shares outstanding for earnings per common share:
Basic 1,168 1,154 1,173
Diluted 1,171 1,156 1,193
(a) Represents income from continuing operations or net income, as applicable, less (i) accelerated preferred dividend accretion of $212 million
for the year ended December 31, 2009 due to the repurchase of $3.39 billion of preferred shares issued as part of the Capital Purchase
Program (CPP), (ii) preferred share dividends and related accretion of $94 million for the year ended December 31, 2009, and (iii) earnings
allocated to participating share awards and other items of $22 million, $15 million and $26 million for the years ended December 31, 2009,
2008 and 2007, respectively.
See Notes to Consolidated Financial Statements.
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