American Express 2012 Annual Report Download - page 45

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AMERICAN EXPRESS COMPANY
2012 FINANCIAL REVIEW
U.S. CARD SERVICES
SELECTED STATISTICAL INFORMATION
As of or for the Years Ended December 31,
(Billions, except percentages and where indicated) 2012 2011 2010
Change
2012 vs. 2011
Change
2011 vs. 2010
Card billed business $ 462.3 $ 424.3 $ 378.1 9 % 12%
Total cards-in-force (millions) 42.2 40.9 39.9 3 % 3%
Basic cards-in-force (millions) 31.3 30.4 29.7 3 % 2%
Average basic cardmember spending (dollars)*$ 14,986 $ 14,124 $ 12,795 6 % 10%
U.S. Consumer Travel:
Travel sales (millions) $ 4,042 $ 3,603 $ 3,116 12 % 16%
Travel commissions and fees/sales 7.6% 8.3% 8.2%
Total segment assets $ 98.3 $ 97.8 $ 91.3 1 % 7%
Segment capital (millions) $ 8,714 $ 8,804 $ 7,411 (1)% 19%
Return on average segment capital(a) 28.8% 33.0% 35.0%
Return on average tangible segment capital(a) 30.1% 34.8% 37.8%
Cardmember receivables:
Total receivables $ 21.1 $ 20.6 $ 19.2 2 % 7%
30 days past due as a % of total 1.8% 1.9% 1.5%
Average receivables $ 19.8 $ 18.8 $ 17.1 5 % 10%
Net write-off rate — principal only(b) 1.9% 1.7% 1.6%
Net write-off rate — principal, interest and fees(b) 2.1% 1.9% 1.8%
Cardmember loans:
Total loans $ 56.0 $ 53.7 $ 51.6 4 % 4%
30 days past due loans as a % of total 1.2% 1.4% 2.1%
Net write-off rate — principal only(b) 2.1% 2.9% 5.8%
Net write-off rate — principal, interest and fees(b) 2.3% 3.2% 6.3%
Calculation of Net Interest Yield on Cardmember Loans:
Net interest income (millions) $ 4,577 $ 4,267 $ 4,465
Exclude:
Interest expense not attributable to the Company’s
cardmember loan portfolio (millions) 204 233 231
Interest income not attributable to the Company’s
cardmember loan portfolio (millions) (9) (10) (12)
Adjusted net interest income (millions)(c) $ 4,772 $ 4,490 $ 4,684
Average loans $ 52.8 $ 50.3 $ 49.8
Exclude:
Unamortized deferred card fees, net of direct acquisition
costs of cardmember loans ———
Adjusted average loans(c) $ 52.8 $ 50.3 $ 49.8
Net interest income divided by average loans 8.7% 8.5% 9.0%
Net interest yield on cardmember loans(c) 9.0% 8.9% 9.4%
* Proprietary cards only.
(a) Return on average segment capital is calculated by dividing (i) one-year period segment income ($2.6 billion, $2.7 billion and $2.2 billion for 2012, 2011 and 2010,
respectively) by (ii) one-year average segment capital ($9.0 billion, $8.1 billion and $6.4 billion for 2012, 2011 and 2010, respectively). Return on average tangible
segment capital, a non-GAAP measure, is computed in the same manner as return on average segment capital except the computation of average tangible segment
capital, a non-GAAP measure, excludes from average segment capital average goodwill and other intangibles of $379 million, $425 million and $459 million as of
December 31, 2012, 2011 and 2010, respectively. The Company believes return on average tangible segment capital is a useful measure of the profitability of its
business.
(b) Refer to “Selected Statistical Information” footnote (e) on page 22.
(c) Net interest yield on cardmember loans, adjusted net interest income, and adjusted average loans are non-GAAP measures. The Company believes adjusted net
interest income and adjusted average loans are useful to investors because they are components of net interest yield on cardmember loans, which provides a measure
of profitability of the Company’s cardmember loan portfolio.
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