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AMERICAN EXPRESS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31 (Millions, except per share amounts) 2010 2009 2008
Revenues
Non-interest revenues
Discount revenue $ 15,111 $ 13,389 $ 15,025
Net card fees 2,102 2,151 2,150
Travel commissions and fees 1,779 1,594 2,010
Other commissions and fees 2,031 1,778 2,307
Securitization income, net —400 1,070
Other 1,927 2,087 2,157
Total non-interest revenues 22,950 21,399 24,719
Interest income
Interest and fees on loans 6,783 4,468 6,159
Interest and dividends on investment securities 443 804 771
Deposits with banks and other 66 59 271
Total interest income 7,292 5,331 7,201
Interest expense
Deposits 546 425 454
Short-term borrowings 337 483
Long-term debt and other 1,874 1,745 2,618
Total interest expense 2,423 2,207 3,555
Net interest income 4,869 3,124 3,646
Total revenues net of interest expense 27,819 24,523 28,365
Provisions for losses
Charge card 595 857 1,363
Cardmember loans 1,527 4,266 4,231
Other 85 190 204
Total provisions for losses 2,207 5,313 5,798
Total revenues net of interest expense after provisions for losses 25,612 19,210 22,567
Expenses
Marketing, promotion, rewards and cardmember services 8,644 6,467 7,361
Salaries and employee benefits 5,566 5,080 6,090
Professional services 2,806 2,408 2,413
Other, net 2,632 2,414 3,122
Total 19,648 16,369 18,986
Pretax income from continuing operations 5,964 2,841 3,581
Income tax provision 1,907 704 710
Income from continuing operations 4,057 2,137 2,871
Loss from discontinued operations, net of tax —(7) (172)
Net income $ 4,057 $ 2,130 $ 2,699
Earnings per Common Share — Basic: (Note 18)
Income from continuing operations attributable to common shareholders
(a)
$ 3.37 $ 1.55 $ 2.47
Loss from discontinued operations —(0.01) (0.14)
Net income attributable to common shareholders
(a)
$ 3.37 $ 1.54 $ 2.33
Earnings per Common Share — Diluted: (Note 18)
Income from continuing operations attributable to common shareholders
(a)
$ 3.35 $ 1.54 $ 2.47
Loss from discontinued operations —— $ (0.15)
Net income attributable to common shareholders
(a)
$ 3.35 $ 1.54 $ 2.32
Average common shares outstanding for earnings per common share:
Basic 1,188 1,168 1,154
Diluted 1,195 1,171 1,156
(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 $51 million, $22 million and $15 million for the years ended December 31, 2010, 2009 and 2008, respectively.
See Notes to Consolidated Financial Statements.
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