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Previous: AMERICAN ELECTRIC POWER COMPANY INC, U-1, 1997-01-29 |
Next: VAN KAMPEN AMERICAN CAPITAL RESERVE FUND, NSAR-A, 1997-01-29 |
<PAGE>
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 27, 1997
AMERICAN EXPRESS COMPANY
- -----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 1-7657 13-4922250
- -------------------------------- -------------- ------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification)
200 Vesey Street, World Financial Center
New York, New York 10285
- ------------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 640-2000
--------------
- ------------------------------------------------------------------
(Former name or former address, if changed since last report.)
<PAGE>
<PAGE>
Item 5. Other Events
On January 27, 1997, American Express Company issued the
following press release:
NEW YORK, January 27, 1997 -- American Express Company today reported 1996
operating income of $1.74 billion, excluding two fourth quarter items: a
$300 million gain (after-tax) on the exchange of DECS for shares of
common stock of First Data Corporation and a $138 million restructuring
charge (after-tax), primarily at Travel Related Services. The 1996
results are 11 percent higher than 1995 net income of $1.56 billion. On
a per share basis, earnings were $3.57, compared with $3.11 a year
ago, an increase of 15 percent.
Including the gain and restructuring charge in 1996, net income was
$1.90 billion, up 22 percent from a year ago. On a per share basis, net
income increased 25 percent to $3.90.
For the fourth quarter, American Express reported operating income of
$433 million, or $0.90 per share, excluding the gain and the
restructuring charge, compared with net income of $384 million, or
$0.77 per share a year ago, an increase of 17 percent. Including the
gain and the restructuring charge, fourth quarter 1996 net income was
$595 million, or $1.23 per share.
Travel Related Services (TRS) reported 1996 operating income of $1.23
billion, up 13 percent from $1.09 billion a year ago. The 1996 results
exclude a fourth-quarter restructuring charge of $125 million ($196
million pre-tax). The 1995 amount excludes the income of AMEX Life, a
subsidiary sold in October 1995.
Including the restructuring charge in 1996 and AMEX Life's results in 1995,
TRS' net income was $1.11 billion compared with $1.12 billion a year ago.
The fourth quarter restructuring charge reflects TRS' costs of continuing
to reengineer its Card and Travel businesses, approximately two-thirds of
which relate to international markets. The charge includes $70 million
in severance related to a reduction in force of approximately 3,300
employees and $55 million related to the closing of certain leased
facilities, the consolidation of other operations and the write-down of
certain assets or the termination of contractual obligations. It is
expected that these initiatives will be implemented in 1997 and that the
savings will be reinvested into the business with no material immediate
impact on future earnings.
Excluding the revenues for AMEX Life, TRS' revenues increased
approximately 5 percent compared with a year ago. Excluding the 1996
restructuring charge and the AMEX Life expenses in 1995, TRS' expenses
were up approximately 4 percent compared with last year.
Net revenues reflect higher worldwide billed business on American Express
Cards and growth in Cardmember loans outstanding. Billed business rose
due to higher spending per Cardmember, attributable in part to the
benefits of rewards programs and expanded merchant coverage, as well as a
greater number of cards outstanding. These were partially offset by a
decrease in net card fees, in line with the company's strategy of building
its lending portfolio through the issuance of low- and no-fee credit cards.
<PAGE>
<PAGE>
The charge card provision for losses declined slightly with improving
credit quality, particularly in Latin America. The lending provision for
losses rose primarily reflecting growth in outstanding loans.
The increase in operating expenses resulted from the cost of Cardmember
loyalty programs, business growth and investment spending.
Excluding the restructuring charge, TRS reported fourth quarter operating
income of $299 million, compared with $266 million in the 1995 fourth
quarter. Including the charge, TRS' fourth quarter 1996 net income was
$174 million.
American Express Financial Advisors (AEFA) reported record net income in
1996 of $594 million, 18 percent above the $503 million reported in
1995.
Revenue and earnings growth benefited primarily from higher fee revenues
due to an increase in managed assets and growth in distribution fees
primarily from sales of mutual funds.
Record sales were reported for mutual funds and life and other insurance
products. Sales of annuities increased over last year, while sales of
investment certificates decreased.
AEFA reported record fourth quarter net income of $155 million, compared
with $133 million in the 1995 fourth quarter.
American Express Bank (AEB) reported 1996 net income of $68 million, a
12 percent decrease from $77 million in 1995.
The decline in earnings reflects lower revenues and a higher provision for
loan losses, partly offset by reduced expenses. The decrease in revenues
and expenses reflects, in part, the effect of the Bank's continued efforts
to focus on strategic markets and eliminate low return activities. The
increase in the provision for credit losses was due to loan growth and
write-offs.
AEB reported fourth quarter net income of $17 million, compared with
$21 million in the 1995 fourth quarter.
Corporate and Other reported 1996 net expenses of $153 million,
excluding the $300 million after-tax gain on the exchange of DECS
($480 million pre-tax) and a charge primarily related to the early
retirement of debt. This compares with net expenses of $141 million a
year ago. Including these items, Corporate and Other reported 1996 net
income of $134 million. Both years include the Company's share of the
Travelers Inc. revenue and net income participations in accordance with an
agreement related to the 1993 sale of the Shearson Lehman Brothers
Division, which was offset by expenses related to certain business
building initiatives.
For the fourth quarter, net expenses were $38 million, excluding the
above gain and charge, compared with net expenses of $36 million a year
ago. Including these items, Corporate and Other fourth quarter 1996 net
income was $249 million.
<PAGE>
<PAGE>
American Express Company, a global travel, financial and network
services provider founded in 1850, provides customers with a variety of
products and services consistent with its brand. The Company provides
individuals with charge and credit cards, travelers cheques and other
stored value products. It also offers financial planning, brokerage
services, mutual funds, insurance and other investment products.
Through its family of Corporate Card services, American Express helps
companies and institutions manage their travel, entertainment and
purchasing expenses. It provides investment management services and
administers pension and other employee benefit plans. The Company also
offers accounting and tax preparation to small businesses, and financial
education services to employees at their places of work.
As the world's largest travel agency, American Express offers travel
and related consulting services to individuals and corporations around
the globe. The Company also provides banking services to corporations,
wealthy entrepreneurs, financial institutions and retail customers
outside the United States.
<PAGE>
<PAGE>
American Express Company
------------------------
Financial Summary
-----------------
(Unaudited)
(Dollars in millions, except per share amounts)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
-------------- ----------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $3,059 $2,927 4.5%
American Express
Financial Advisors 1,069 973 9.8
American Express Bank 156 158 (1.0)
------- ------
4,284 4,058 5.6
Corporate and Other,
including adjustments and
eliminations (27) (10) #
------- ------
CONSOLIDATED REVENUES (A) $4,257 $4,048 5.1
======= ======
Pretax Operating Income by Industry Segment
- -------------------------------------------
Travel Related Services (B) $403 $371 8.5%
American Express
Financial Advisors 228 203 12.3
American Express Bank 26 32 (16.8)
------- -----
657 606 8.5
Corporate and Other (C) (78) (65) (21.5)
------- -----
PRETAX OPERATING INCOME $579 $541 6.9
======= =====
Operating Income by Industry Segment
- ------------------------------------
Travel Related Services (B) $299 $266 12.3%
American Express
Financial Advisors 155 133 16.5
American Express Bank 17 21 (18.4)
------- -----
471 420 12.1
Corporate and Other(C) (38) (36) (7.3)
------- -----
OPERATING INCOME $433 $384 12.6
FDC Gain/(Restructuring) 162 0 -
------ -----
NET INCOME $595 $384 54.7
====== =====
OPERATING INCOME PER COMMON SHARE $0.90 $0.77 16.9
FDC Gain/(Restructuring) $0.33 $0.00 -
------- ------
NET INCOME PER COMMON SHARE $1.23 $0.77 59.7
======= ======
Cash dividends declared per
common share $0.225 $0.225
====== =======
Average common shares
outstanding (000's) 482,065 493,326
======= =======
Year Ended
December 31, Percentage
1996 1995 Inc/(Dec)
-------------- ----------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $11,630 $11,542 0.8%
American Express
Financial Advisors 4,110 3,691 11.3
American Express Bank 591 643 (7.9)
-------- -------
16,331 15,876 2.9
Corporate and Other,
including adjustments
and eliminations (94) (35) #
-------- --------
CONSOLIDATED REVENUES (A) $16,237 $15,841 2.5
======= ========
Pretax Operating Income by Industry Segment
- -------------------------------------------
Travel Related Services (B) $1,719 $1,579 8.8%
American Express
Financial Advisors 885 755 17.2
American Express Bank 105 115 (8.2)
------- -------
2,709 2,449 10.6
Corporate and Other (C) (309) (266) (16.0)
------- -------
PRETAX OPERATING INCOME $2,400 $2,183 10.0
======= =======
Operating Income by Industry Segment
- ------------------------------------
Travel Related Services (B) $1,230 $1,125 9.4%
American Express
Financial Advisors 594 503 18.0
American Express Bank 68 77 (12.1)
-------- -------
1,892 1,705 11.0
Corporate and Other(C) (153) (141) (7.8)
-------- -------
OPERATING INCOME $1,739 $1,564 11.2
FDC Gain/(Restructuring) 162 0 -
-------- -------
NET INCOME $1,901 $1,564 21.6
======= =======
OPERATING INCOME PER COMMON SHARE $3.57 $3.11 14.8
FDC Gain/(Restructuring) $0.33 $0.00 -
------- -------
NET INCOME PER COMMON SHARE $3.90 $3.11 25.4
======= =======
Cash dividends declared
per common share $0.90 $0.90
======= =======
Average common shares
outstanding (000's) 485,595 497,953
======= =======
(A) Revenues are reported net of interest expense, where
applicable.
(B) TRS' results for the quarter and year ended December 31, 1996
exclude a pretax restructuring charge of $196 million
($125 million after-tax).
(C) Corporate and Other for the quarter and year ended
December 31, 1996 exclude a pretax gain of $480 million
($300 million after-tax) on the exchange of the Company's
DECS (Debt Exchangeable for Common Stock) for shares of
common stock of First Data Corporation and a $20 million
pretax charge ($13 million after-tax) related to the early
retirement of debt and certain restructuring costs.
# Denotes variance of more than 100%.
<PAGE>
<PAGE>
American Express Company
------------------------
Selected Statistical Information
--------------------------------
(Unaudited)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
-------------- ----------
Return on Average Equity* 22.8% 22.0% -
Common Shares Outstanding
(millions) 472.9 483.1 (2.1%)
Book Value per Common Share:
Actual $18.04 $16.60 8.7
Pro Forma** $17.22 $14.79 16.4
Shareholders' Equity
(billions) $8.5 $8.2 3.7
Year Ended
December 31, Percentage
1996 1995 Inc/(Dec)
-------------- ----------
Return on Average Equity* 22.8% 22.0% -
Common Shares Outstanding
(millions) 472.9 483.1 (2.1%)
Book Value per Common Share:
Actual $18.04 $16.60 8.7
Pro Forma** $17.22 $14.79 16.4
Shareholders' Equity
(billions) $8.5 $8.2 3.7
* Excluding the effect of SFAS #115 and, for the quarter and
year ended December 31, 1996, the $300 million gain on the
exchange of the Company's DECS and a $138 million
restructuring charge.
** Excluding the effect of SFAS #115.
<PAGE>
<PAGE>
American Express Company
------------------------
Financial Summary
-----------------
(Unaudited)
(Dollars in millions, except per share amounts)
Quarter Ended
December 31, 1996
-----------------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $3,059
American Express Financial Advisors 1,069
American Express Bank 156
-------
4,284
Corporate and Other,
including adjustments and eliminations (27)
--------
CONSOLIDATED REVENUES (A) $4,257
========
Pretax Operating Income by Industry Segment
- -------------------------------------------
Travel Related Services (B) $403
American Express Financial Advisors 228
American Express Bank 26
--------
657
Corporate and Other (C) (78)
--------
PRETAX OPERATING INCOME $579
========
Operating Income by Industry Segment
- ------------------------------------
Travel Related Services (B) $299
American Express Financial Advisors 155
American Express Bank 17
--------
471
Corporate and Other(C) (38)
--------
OPERATING INCOME $433
FDC Gain/(Restructuring) 162
-------
NET INCOME $595
========
OPERATING INCOME PER COMMON SHARE $0.90
FDC Gain/(Restructuring) $0.33
--------
NET INCOME PER COMMON SHARE $1.23
========
Cash dividends declared per common share $0.225
========
Average common shares outstanding (000's) 482,065
========
<PAGE>
Quarter Ended
September 30, 1996
------------------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $2,920
American Express Financial Advisors 1,021
American Express Bank 151
--------
4,092
Corporate and Other,
including adjustments and eliminations (36)
--------
CONSOLIDATED REVENUES (A) $4,056
========
Pretax Operating Income by Industry Segment
- -------------------------------------------
Travel Related Services (B) $441
American Express Financial Advisors 230
American Express Bank 28
--------
699
Corporate and Other (C) (78)
--------
PRETAX OPERATING INCOME $621
========
Operating Income by Industry Segment
- ------------------------------------
Travel Related Services (B) $323
American Express Financial Advisors 156
American Express Bank 18
--------
497
Corporate and Other(C) (39)
--------
OPERATING INCOME $458
FDC Gain/(Restructuring) 0
--------
NET INCOME $458
========
OPERATING INCOME PER COMMON SHARE $0.95
FDC Gain/(Restructuring) $0.00
-------
NET INCOME PER COMMON SHARE $0.95
========
Cash dividends declared per common share $0.225
========
Average common shares outstanding (000's) 481,865
========
<PAGE>
Quarter Ended
June 30, 1996
-------------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $2,901
American Express Financial Advisors 1,017
American Express Bank 140
--------
4,058
Corporate and Other,
including adjustments and eliminations (14)
--------
CONSOLIDATED REVENUES (A) $4,044
========
Pretax Operating Income by Industry Segment
- -------------------------------------------
Travel Related Services (B) $459
American Express Financial Advisors 231
American Express Bank 22
--------
712
Corporate and Other (C) (76)
--------
PRETAX OPERATING INCOME $636
========
Operating Income by Industry Segment
- ------------------------------------
Travel Related Services (B) $322
American Express Financial Advisors 153
American Express Bank 14
--------
489
Corporate and Other(C) (37)
--------
OPERATING INCOME $452
FDC Gain/(Restructuring) 0
--------
NET INCOME $452
========
OPERATING INCOME PER COMMON SHARE $0.93
FDC Gain/(Restructuring) $0.00
--------
NET INCOME PER COMMON SHARE $0.93
========
Cash dividends declared per common share $0.225
========
Average common shares outstanding (000's) 487,048
========
<PAGE>
Quarter Ended
March 31, 1996
--------------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $2,750
American Express Financial Advisors 1,003
American Express Bank 146
--------
3,899
Corporate and Other,
including adjustments and eliminations (17)
--------
CONSOLIDATED REVENUES (A) $3,882
========
Pretax Operating Income by Industry Segment
- -------------------------------------------
Travel Related Services (B) $416
American Express Financial Advisors 196
American Express Bank 29
--------
641
Corporate and Other (C) (76)
--------
PRETAX OPERATING INCOME $565
========
Operating Income by Industry Segment
- ------------------------------------
Travel Related Services (B) $286
American Express Financial Advisors 130
American Express Bank 19
--------
435
Corporate and Other(C) (39)
--------
OPERATING INCOME $396
FDC Gain/(Restructuring) 0
--------
NET INCOME $396
========
OPERATING INCOME PER COMMON SHARE $0.80
FDC Gain/(Restructuring) $0.00
--------
NET INCOME PER COMMON SHARE $0.80
========
Cash dividends declared per common share $0.225
========
Average common shares outstanding (000's) 490,610
========
<PAGE>
Quarter Ended
December 31, 1995
-----------------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $2,927
American Express Financial Advisors 973
American Express Bank 158
--------
4,058
Corporate and Other,
including adjustments and eliminations (10)
--------
CONSOLIDATED REVENUES (A) $4,048
========
Pretax Operating Income by Industry Segment
- -------------------------------------------
Travel Related Services (B) $371
American Express Financial Advisors 203
American Express Bank 32
--------
606
Corporate and Other (C) (65)
--------
PRETAX OPERATING INCOME $541
========
Operating Income by Industry Segment
- ------------------------------------
Travel Related Services (B) $266
American Express Financial Advisors 133
American Express Bank 21
--------
420
Corporate and Other(C) (36)
--------
OPERATING INCOME $384
FDC Gain/(Restructuring) 0
-------
NET INCOME $384
========
OPERATING INCOME PER COMMON SHARE $0.77
FDC Gain/(Restructuring) $0.00
-------
NET INCOME PER COMMON SHARE $0.77
========
Cash dividends declared per common share $0.225
========
Average common shares outstanding (000's) 493,326
========
(A) Revenues are reported net of interest expense, where
applicable.
(B) TRS' results for the quarter and year ended December 31, 1996
exclude a pretax restructuring charge of $196 million
($125 million after-tax).
(C) Corporate and Other results for the quarter and year ended
December 31, 1996 exclude a pretax gain of $480 million
($300 million after-tax) on the exchange of the Company's
DECS (Debt Exchangeable for Common Stock) for shares of
common stock of First Data Corporation and a $20 million
pretax charge ($13 million after-tax) related to the early
retirement of debt and certain restructuring costs.
<PAGE>
<PAGE>
American Express Company
------------------------
Selected Statistical Information
--------------------------------
(Unaudited)
Quarter Ended
December 31, 1996
-----------------
Return on Average Equity* 22.8%
Common Shares Outstanding (millions) 472.9
Book Value per Common Share:
Actual $18.04
Pro Forma** $17.22
Shareholders' Equity (billions) $8.5
Quarter Ended
September 30, 1996
------------------
Return on Average Equity* 22.8%
Common Shares Outstanding (millions) 473.5
Book Value per Common Share:
Actual $17.41
Pro Forma** $16.19
Shareholders' Equity (billions) $8.2
Quarter Ended
June 30, 1996
-------------
Return on Average Equity* 22.6%
Common Shares Outstanding (millions) 476.6
Book Value per Common Share:
Actual $16.69
Pro Forma** $15.57
Shareholders' Equity (billions) $8.0
Quarter Ended
March 31, 1996
--------------
Return on Average Equity* 22.3%
Common Shares Outstanding (millions) 479.1
Book Value per Common Share:
Actual $16.26
Pro Forma** $14.93
Shareholders' Equity (billions) $8.0
Quarter Ended
December 31, 1995
-----------------
Return on Average Equity* 22.0%
Common Shares Outstanding (millions) 483.1
Book Value per Common Share:
Actual $16.60
Pro Forma** $14.79
Shareholders' Equity (billions) $8.2
* Excluding the effect of SFAS #115 and, for the quarter
ended December 31, 1996, the $300 million gain on
the exchange of the Company's DECS and a $138 million
restructuring charge.
** Excluding the effect of SFAS# 115.
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Statement of Income
----------------------
(Unaudited)
(Dollars in millions)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------- ----------
Net Revenues:
Discount Revenue $1,380 $1,212 13.9%
Net Card Fees 415 431 (3.8)
Travel Commissions and Fees 336 357 (5.8)
Interest and Dividends 156 209 (25.3)
Other Revenues 483 444 8.6
-------- --------
2,770 2,653 4.4
-------- --------
Lending:
Finance Charge Revenue 423 403 5.0
Interest Expense 134 129 3.6
-------- --------
Net Finance Charge
Revenue 289 274 5.7
-------- --------
Total Net Revenues 3,059 2,927 4.5
-------- --------
Expenses:
Marketing and Promotion 268 218 23.0
Provision for Losses and Claims:
Charge Card 113 264 (57.3)
Lending 214 158 35.2
Other 22 35 (34.6)
-------- --------
Total 349 457 (23.6)
-------- --------
Interest Expense:
Charge Card 176 178 (1.2)
Other 65 115 (43.7)
-------- --------
Total 241 293 (17.9)
Net Discount Expense 174 106 65.3
Human Resources 794 731 8.6
Other Operating Expenses 830 751 10.5
-------- --------
Total Expenses 2,656 2,556 3.9
-------- --------
Pretax Income 403 371 8.5
Income Tax Provision 104 105 (1.0)
-------- --------
Operating Income $299* $266 12.3
======== ========
* Excludes restructuring charge of $125 million
after-tax ($196 million pretax).
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-------------------------
Statement of Income
----------------------
(Unaudited)
(Dollars in millions)
Year Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ---------
Net Revenues:
Discount Revenue $5,024 $4,457 12.7%
Net Card Fees 1,668 1,742 (4.3)
Travel Commissions and Fees 1,279 1,288 (0.7)
Interest and Dividends 724 969 (25.3)
Other Revenues 1,867 2,054 (9.1)
-------- --------
10,562 10,510 0.5
-------- --------
Lending:
Finance Charge Revenue 1,575 1,529 3.1
Interest Expense 507 497 2.0
-------- --------
Net Finance Charge
Revenue 1,068 1,032 3.5
-------- --------
Total Net Revenues 11,630 11,542 0.8
-------- --------
Expenses:
Marketing and Promotion 998 950 5.1
Provision for Losses and Claims:
Charge Card 743 835 (11.0)
Lending 635 522 21.7
Other 101 416 (75.9)
-------- --------
Total 1,479 1,773 (16.6)
-------- --------
Interest Expense:
Charge Card 688 673 2.3
Other 347 453 (23.3)
-------- --------
Total 1,035 1,126 (8.0)
Net Discount Expense 554 414 33.7
Human Resources 2,984 2,829 5.5
Other Operating Expenses 2,861 2,871 (0.3)
-------- --------
Total Expenses 9,911 9,963 (0.5)
-------- --------
Pretax Income 1,719 1,579 8.8
Income Tax Provision 489 454 7.5
-------- --------
Operating Income $1,230* $1,125 9.4
======== ========
* Excludes restructuring charge of $125 million
after-tax ($196 million pretax).
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Statement of Income
-----------------------
(Unaudited, Managed Asset Basis)
(Dollars in millions)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Net Revenues:
Discount Revenue $1,380 $1,212 13.9%
Net Card Fees 415 431 (3.8)
Travel Commissions and Fees 336 357 (5.8)
Interest and Dividends 156 209 (25.3)
Other Revenues 450 423 6.1
-------- --------
2,737 2,632 4.0
-------- --------
Lending:
Finance Charge Revenue 463 403 15.0
Interest Expense 150 129 16.0
-------- --------
Net Finance Charge
Revenue 313 274 14.5
-------- --------
Total Net Revenues 3,050 2,906 5.0
-------- --------
Expenses:
Marketing and Promotion 268 218 23.0
Provision for Losses and Claims:
Charge Card 199 308 (35.4)
Lending 235 158 48.3
Other 22 35 (34.6)
-------- --------
Total 456 501 (8.9)
-------- --------
Interest Expense:
Charge Card 234 219 7.1
Other 65 115 (43.7)
-------- --------
Total 299 334 (10.4)
Human Resources 794 731 8.6
Other Operating Expenses 830 751 10.5
-------- --------
Total Expenses 2,647 2,535 4.4
-------- --------
Pretax Income 403 371 8.5
Income Tax Provision 104 105 (1.0)
-------- --------
Operating Income $299* $266 12.3
======== ========
* Excludes restructuring charge of $125 million
after-tax ($196 million pretax).
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Statement of Income
---------------------
(Unaudited, Managed Asset Basis)
(Dollars in millions)
Year Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Net Revenues:
Discount Revenue $5,024 $4,457 12.7%
Net Card Fees 1,664 1,742 (4.5)
Travel Commissions and Fees 1,279 1,288 (0.7)
Interest and Dividends 724 969 (25.3)
Other Revenues 1,714 1,970 (13.0)
-------- --------
10,405 10,426 (0.2)
-------- --------
Lending:
Finance Charge Revenue 1,691 1,529 10.6
Interest Expense 548 497 10.4
-------- --------
Net Finance Charge
Revenue 1,143 1,032 10.7
-------- --------
Total Net Revenues 11,548 11,458 0.8
-------- --------
Expenses:
Marketing and Promotion 998 950 5.1
Provision for Losses and Claims:
Charge Card 989 1,002 (1.4)
Lending 678 522 30.0
Other 101 416 (75.9)
-------- --------
Total 1,768 1,940 (8.9)
-------- --------
Interest Expense:
Charge Card 871 836 4.2
Other 347 453 (23.3)
-------- --------
Total 1,218 1,289 (5.5)
Human Resources 2,984 2,829 5.5
Other Operating Expenses 2,861 2,871 (0.3)
-------- --------
Total Expenses 9,829 9,879 (0.5)
-------- --------
Pretax Income 1,719 1,579 8.8
Income Tax Provision 489 454 7.5
-------- --------
Operating Income $1,230* $1,125 9.4
======== ========
* Excludes restructuring charge of $125 million
after-tax ($196 million pretax).
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
----------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Amounts in billions, except percentages and where indicated)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Total Cards in Force (millions):
United States 29.2 26.7 9.5%
Outside the United States 12.3 11.6 5.4
-------- --------
Total 41.5 38.3 8.2
======== ========
Basic Cards in Force (millions):
United States 22.5 20.0 12.3
Outside the United States 9.6 9.2 4.2
-------- --------
Total 32.1 29.2 9.8
======== ========
Card Billed Business:
United States $36.2 $31.3 15.5
Outside the United States 14.9 12.7 17.8
-------- --------
Total $51.1 $44.0 16.2
======== ========
Average Discount Rate* 2.70% 2.75% -
Average Basic Cardmember
Spending (dollars)* $1,617 $1,528 5.8
Average Fee per Card (dollars)* $41 $46 (10.9)
Travel Sales $4.3 $4.1 4.7
Travel Commissions and Fees/Sales* 7.8% 8.7% -
Travelers Cheque Sales $5.5 $5.1 8.2
Average Travelers Cheques Outstanding $6.0 $6.0 (0.3)
Investments $6.5 $9.2 (29.7)
Travelers Cheques Outstanding $5.8 $5.7 2.5
Total Debt $23.4 $22.3 5.0
Shareholder's Equity $4.7 $4.9 (4.7)
Return on Average Equity** 25.6% 24.6% -
Return on Average Assets** 2.8% 2.5% -
* Computed from information provided herein.
** Excluding the effect of SFAS #115 and the fourth quarter
1996 restructuring charge of $125 million after-tax.
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Amounts in billions, except percentages and where indicated)
Year Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ---------
Total Cards in Force (millions):
United States 29.2 26.7 9.5%
Outside the United States 12.3 11.6 5.4
-------- --------
Total 41.5 38.3 8.2
======== ========
Basic Cards in Force (millions):
United States 22.5 20.0 12.3
Outside the United States 9.6 9.2 4.2
-------- --------
Total 32.1 29.2 9.8
======== ========
Card Billed Business:
United States $131.0 $115.2 13.7
Outside the United States 53.3 47.3 12.7
-------- --------
Total $184.3 $162.5 13.4
======== ========
Average Discount Rate* 2.73% 2.74% -
Average Basic Cardmember
Spending (dollars)* $6,013 $5,814 3.4
Average Fee per Card (dollars)* $42 $47 (10.6)
Travel Sales $15.8 $15.1 4.2
Travel Commissions and Fees/Sale* 8.1% 8.5% -
Travelers Cheque Sales $26.0 $25.6 1.7
Average Travelers Cheques Outstanding $6.0 $6.0 1.2
Investments $6.5 $9.2 (29.7)
Travelers Cheques Outstanding $5.8 $5.7 2.5
Total Debt $23.4 $22.3 5.0
Shareholder's Equity $4.7 $4.9 (4.7)
Return on Average Equity** 25.6% 24.6% -
Return on Average Assets** 2.8% 2.5% -
* Computed from information provided herein.
** Excluding the effect of SFAS #115 and the fourth quarter
1996 restructuring charge of $125 million after-tax.
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Selected Statistical Information (continued)
-------------------------------------------
(Unaudited)
(Amounts in billions, except percentages and where indicated)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Owned and Managed Charge Card
Receivables:
Total Receivables $22.5 $20.5 9.7%
90 Days Past Due as a % of Total 3.2% 3.5% -
Loss Reserves (millions) $923 $952 (3.0)
% of Receivables 4.1% 4.6% -
% of 90 Days Past Due 128% 131% -
Net Loss Ratio 0.51% 0.57% -
Owned and Managed U.S. Cardmember
Lending:
Total Loans $12.7 $10.0 27.9
Past Due Loans as a % of Total:
30-89 Days 2.4% 2.8% -
90+ Days 0.9% 1.0% -
Loss Reserves (millions):
Beginning Balance $427 $389 9.8
Provision 220 162 35.5
Net Charge-Offs/Other (159) (108) 47.3
-------- --------
Ending Balance $488 $443 10.0
======== ========
% of Loans 3.8% 4.5% -
% of Past Due 117% 116% -
Average Loans $12.1 $9.5 28.2
Net Write-Off Rate 5.2% 4.5% -
Net Interest Yield 8.6% 9.9% -
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Selected Statistical Information (continued)
--------------------------------------------
(Unaudited)
(Amounts in billions, except percentages and where indicated)
Year Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Owned and Managed Charge Card
Receivables:
Total Receivables $22.5 $20.5 9.7%
90 Days Past Due as a % of Total 3.2% 3.5% -
Loss Reserves (millions) $923 $952 (3.0)
% of Receivables 4.1% 4.6% -
% of 90 Days Past Due 128% 131% -
Net Loss Ratio 0.51% 0.51% -
Owned and Managed U.S. Cardmember
Lending:
Total Loans $12.7 $10.0 27.9
Past Due Loans as a % of Total:
30-89 Days 2.4% 2.8% -
90+ Days 0.9% 1.0% -
Loss Reserves (millions):
Beginning Balance $443 $329 34.8
Provision 607 505 20.3
Net Charge-Offs/Other (562) (391) 44.2
-------- --------
Ending Balance $488 $443 10.0
======== ========
% of Loans 3.8% 4.5% -
% of Past Due 117% 116% -
Average Loans $10.8 $8.8 22.7
Net Write-Off Rate 5.2% 4.4% -
Net Interest Yield 8.8% 9.9% -
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Statement of Income
-------------------
(Unaudited)
(Dollars in millions)
Quarter Ended
December 31, 1996
-----------------
Net Revenues:
Discount Revenue $1,380
Net Card Fees 415
Travel Commissions and Fees 336
Interest and Dividends 156
Other Revenues 483
---------
2,770
---------
Lending:
Finance Charge Revenue 423
Interest Expense 134
---------
Net Finance Charge Revenue 289
---------
Total Net Revenues 3,059
---------
Expenses:
Marketing and Promotion 268
Provision for Losses and Claims:
Charge Card 113
Lending 214
Other 22
---------
Total 349
---------
Interest Expense:
Charge Card 176
Other 65
---------
Total 241
Net Discount Expense 174
Human Resources 794
Other Operating Expenses 830
---------
Total Expenses 2,656
---------
Pretax Income 403
Income Tax Provision 104
---------
Operating Income $299 *
=========
<PAGE>
Quarter Ended
September 30, 1996
------------------
Net Revenues:
Discount Revenue $1,256
Net Card Fees 418
Travel Commissions and Fees 316
Interest and Dividends 167
Other Revenues 508
----------
2,665
----------
Lending:
Finance Charge Revenue 377
Interest Expense 122
----------
Net Finance Charge Revenue 255
----------
Total Net Revenues 2,920
----------
Expenses:
Marketing and Promotion 278
Provision for Losses and Claims:
Charge Card 172
Lending 107
Other 28
----------
Total 307
----------
Interest Expense:
Charge Card 175
Other 72
----------
Total 247
Net Discount Expense 128
Human Resources 764
Other Operating Expenses 755
----------
Total Expenses 2,479
----------
Pretax Income 441
Income Tax Provision 118
----------
Operating Income $323
==========
Quarter Ended
June 30, 1996
-------------
Net Revenues:
Discount Revenue $1,247
Net Card Fees 414
Travel Commissions and Fees 329
Interest and Dividends 211
Other Revenues 451
----------
2,652
----------
<PAGE>
Lending:
Finance Charge Revenue 371
Interest Expense 122
----------
Net Finance Charge Revenue 249
----------
Total Net Revenues 2,901
----------
Expenses:
Marketing and Promotion 252
Provision for Losses and Claims:
Charge Card 248
Lending 126
Other 26
----------
Total 400
----------
Interest Expense:
Charge Card 171
Other 114
----------
Total 285
Net Discount Expense 125
Human Resources 721
Other Operating Expenses 659
----------
Total Expenses 2,442
----------
Pretax Income 459
Income Tax Provision 137
----------
Operating Income $322
==========
Quarter Ended
March 31, 1996
--------------
Net Revenues:
Discount Revenue $1,141
Net Card Fees 421
Travel Commissions and Fees 298
Interest and Dividends 191
Other Revenues 424
----------
2,475
----------
Lending:
Finance Charge Revenue 404
Interest Expense 129
----------
Net Finance Charge Revenue 275
----------
Total Net Revenues 2,750
----------
<PAGE>
Expenses:
Marketing and Promotion 200
Provision for Losses and Claims:
Charge Card 210
Lending 188
Other 24
----------
Total 422
----------
Interest Expense:
Charge Card 167
Other 95
----------
Total 262
Net Discount Expense 126
Human Resources 704
Other Operating Expenses 620
----------
Total Expenses 2,334
----------
Pretax Income 416
Income Tax Provision 130
----------
Operating Income $286
==========
Quarter Ended
December 31, 1995
-----------------
Net Revenues:
Discount Revenue $1,212
Net Card Fees 431
Travel Commissions and Fees 357
Interest and Dividends 209
Other Revenues 444
----------
2,653
----------
Lending:
Finance Charge Revenue 403
Interest Expense 129
----------
Net Finance Charge Revenue 274
----------
Total Net Revenues 2,927
----------
Expenses:
Marketing and Promotion 218
Provision for Losses and Claims:
Charge Card 264
Lending 158
Other 35
----------
Total 457
----------
<PAGE>
Interest Expense:
Charge Card 178
Other 115
----------
Total 293
Net Discount Expense 106
Human Resources 731
Other Operating Expenses 751
----------
Total Expenses 2,556
----------
Pretax Income 371
Income Tax Provision 105
----------
Operating Income $266
==========
* Excludes restructuring charge of $125 million after-tax
($196 million pretax).
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Statement of Income
-------------------
(Unaudited, Managed Asset Basis)
(Dollars in millions)
Quarter Ended
December 31, 1996
-----------------
Net Revenues:
Discount Revenue $1,380
Net Card Fees 415
Travel Commissions and Fees 336
Interest and Dividends 156
Other Revenues 450
----------
2,737
----------
Lending:
Finance Charge Revenue 463
Interest Expense 150
----------
Net Finance Charge Revenue 313
----------
Total Net Revenues 3,050
----------
Expenses:
Marketing and Promotion 268
Provision for Losses and Claims:
Charge Card 199
Lending 235
Other 22
----------
Total 456
----------
Interest Expense:
Charge Card 234
Other 65
----------
Total 299
Human Resources 794
Other Operating Expenses 830
----------
Total Expenses 2,647
----------
Pretax Income 403
Income Tax Provision 104
----------
Operating Income $299 *
==========
<PAGE>
Quarter Ended
September 30, 1996
------------------
Net Revenues:
Discount Revenue $1,256
Net Card Fees 414
Travel Commissions and Fees 316
Interest and Dividends 167
Other Revenues 463
----------
2,616
----------
Lending:
Finance Charge Revenue 420
Interest Expense 139
----------
Net Finance Charge Revenue 281
----------
Total Net Revenues 2,897
----------
Expenses:
Marketing and Promotion 278
Provision for Losses and Claims:
Charge Card 223
Lending 118
Other 28
----------
Total 369
----------
Interest Expense:
Charge Card 218
Other 72
----------
Total 290
Human Resources 764
Other Operating Expenses 755
----------
Total Expenses 2,456
----------
Pretax Income 441
Income Tax Provision 118
----------
Operating Income $323
==========
Quarter Ended
June 30, 1996
-------------
Net Revenues:
Discount Revenue $1,247
Net Card Fees 414
Travel Commissions and Fees 329
Interest and Dividends 211
Other Revenues 409
----------
2,610
----------
<PAGE>
Lending:
Finance Charge Revenue 403
Interest Expense 130
----------
Net Finance Charge Revenue 273
----------
Total Net Revenues 2,883
----------
Expenses:
Marketing and Promotion 252
Provision for Losses and Claims:
Charge Card 302
Lending 138
Other 26
----------
Total 466
----------
Interest Expense:
Charge Card 212
Other 114
----------
Total 326
Human Resources 721
Other Operating Expenses 659
----------
Total Expenses 2,424
----------
Pretax Income 459
Income Tax Provision 137
----------
Operating Income $322
==========
Quarter Ended
March 31, 1996
--------------
Net Revenues:
Discount Revenue $1,141
Net Card Fees 421
Travel Commissions and Fees 298
Interest and Dividends 191
Other Revenues 393
----------
2,444
----------
Lending:
Finance Charge Revenue 404
Interest Expense 129
----------
Net Finance Charge Revenue 275
----------
Total Net Revenues 2,719
----------
Expenses:
Marketing and Promotion 200
Provision for Losses and Claims:
Charge Card 264
Lending 188
<PAGE>
Other 24
----------
Total 476
----------
Interest Expense:
Charge Card 208
Other 95
----------
Total 303
Human Resources 704
Other Operating Expenses 620
----------
Total Expenses 2,303
----------
Pretax Income 416
Income Tax Provision 130
----------
Operating Income $286
==========
Quarter Ended
December 31, 1995
-----------------
Net Revenues:
Discount Revenue $1,212
Net Card Fees 431
Travel Commissions and Fees 357
Interest and Dividends 209
Other Revenues 423
----------
2,632
----------
Lending:
Finance Charge Revenue 403
Interest Expense 129
----------
Net Finance Charge Revenue 274
----------
Total Net Revenues 2,906
----------
Expenses:
Marketing and Promotion 218
Provision for Losses and Claims:
Charge Card 308
Lending 158
Other 35
----------
Total 501
----------
Interest Expense:
Charge Card 219
Other 115
----------
Total 334
Human Resources 731
Other Operating Expenses 751
----------
Total Expenses 2,535
----------
Pretax Income 371
Income Tax Provision 105
----------
Operating Income $266
==========
* Excludes restructuring charge of $125 million after-tax
($196 million pretax).
<PAGE>
<PAGE>
(Preliminary) Travel Related Services
-----------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Amounts in billions, except percentages and where indicated)
Quarter Ended
December 31, 1996
-----------------
Total Cards in Force (millions):
United States 29.2
Outside the United States 12.3
-------
Total 41.5
=======
Basic Cards in Force (millions):
United States 22.5
Outside the United States 9.6
-------
Total 32.1
=======
Card Billed Business:
United States $36.2
Outside the United States 14.9
-------
Total $51.1
=======
Average Discount Rate* 2.70%
Average Basic Cardmember
Spending (dollars)* $1,617
Average Fee per Card (dollars)* $41
Travel Sales $4.3
Travel Commissions and Fees/Sales* 7.8%
Travelers Cheque Sales $5.5
Average Travelers Cheques Outstanding $6.0
Investments $6.5
Travelers Cheques Outstanding $5.8
Total Debt $23.4
Shareholder's Equity $4.7
Return on Average Equity** 25.6%
Return on Average Assets** 2.8%
Owned and Managed Charge Card
Receivables:
Total Receivables $22.5
90 Days Past Due as a % of Total 3.2%
Loss Reserves (millions) $923
% of Receivables 4.1%
% of 90 Days Past Due 128%
Net Loss Ratio 0.51%
<PAGE>
Owned and Managed U.S. Cardmember
Lending:
Total Loans $12.7
Past Due Loans as a % of Total:
30-89 Days 2.4%
90+ Days 0.9%
Loss Reserves (millions):
Beginning Balance $427
Provision 220
Net Charge-Offs/Other (159)
-------
Ending Balance $488
=======
% of Loans 3.8%
% of Past Due 117%
Average Loans $12.1
Net Write-Off Rate 5.2%
Net Interest Yield 8.6%
Quarter Ended
September 30, 1996
------------------
Total Cards in Force (millions):
United States 28.4
Outside the United States 11.9
-------
Total 40.3
=======
Basic Cards in Force (millions):
United States 21.7
Outside the United States 9.4
-------
Total 31.1
=======
Card Billed Business:
United States $32.7
Outside the United States 13.2
-------
Total $45.9
=======
Average Discount Rate* 2.74%
Average Basic Cardmember
Spending (dollars)* $1,498
Average Fee per Card (dollars)* $42
Travel Sales $3.8
Travel Commissions and Fees/Sales* 8.3%
Travelers Cheque Sales $8.6
Average Travelers Cheques Outstanding $6.6
Investments $6.5
Travelers Cheques Outstanding $6.3
Total Debt $21.8
Shareholder's Equity $5.0
Return on Average Equity** 25.1%
Return on Average Assets** 2.7%
<PAGE>
Owned and Managed Charge Card
Receivables:
Total Receivables $20.7
90 Days Past Due as a % of Total 3.6%
Loss Reserves (millions) $996
% of Receivables 4.8%
% of 90 Days Past Due 134%
Net Loss Ratio 0.54%
Owned and Managed U.S. Cardmember
Lending:
Total Loans $11.2
Past Due Loans as a % of Total:
30-89 Days 2.3%
90+ Days 0.9%
Loss Reserves (millions):
Beginning Balance $468
Provision 98
Net Charge-Offs/Other (139)
-------
Ending Balance $427
=======
% of Loans 3.8%
% of Past Due 119%
Average Loans $11.0
Net Write-Off Rate 5.1%
Net Interest Yield 8.4%
Quarter Ended
June 30, 1996
-------------
Total Cards in Force (millions):
United States 27.5
Outside the United States 11.8
------
Total 39.3
======
Basic Cards in Force (millions):
United States 20.9
Outside the United States 9.3
------
Total 30.2
======
Card Billed Business:
United States $32.6
Outside the United States 13.2
------
Total $45.8
======
Average Discount Rate* 2.72%
Average Basic Cardmember
Spending (dollars)* $1,529
Average Fee per Card (dollars)* $42
Travel Sales $4.0
Travel Commissions and Fees/Sales* 8.2%
Travelers Cheque Sales $6.7
Average Travelers Cheques Outstanding $6.1
<PAGE>
Investments $9.0
Travelers Cheques Outstanding $6.6
Total Debt $21.9
Shareholder's Equity $4.9
Return on Average Equity** 24.8%
Return on Average Assets** 2.6%
Owned and Managed Charge Card
Receivables:
Total Receivables $20.6
90 Days Past Due as a % of Total 3.7%
Loss Reserves (millions) $1,054
% of Receivables 5.1%
% of 90 Days Past Due 138%
Net Loss Ratio 0.51%
Owned and Managed U.S. Cardmember
Lending:
Total Loans $10.5
Past Due Loans as a % of Total:
30-89 Days 2.3%
90+ Days 0.9%
Loss Reserves (millions):
Beginning Balance $483
Provision 119
Net Charge-Offs/Other (134)
------
Ending Balance $468
======
% of Loans 4.5%
% of Past Due 135%
Average Loans $10.5
Net Write-Off Rate 5.2%
Net Interest Yield 8.9%
Quarter Ended
March 31, 1996
--------------
Total Cards in Force (millions):
United States 27.1
Outside the United States 11.6
------
Total 38.7
======
Basic Cards in Force (millions):
United States 20.5
Outside the United States 9.2
------
Total 29.7
======
Card Billed Business:
United States $29.8
Outside the United States 11.8
------
Total $41.6
======
<PAGE>
Average Discount Rate* 2.74%
Average Basic Cardmember
Spending (dollars)* $1,413
Average Fee per Card (dollars)* $44
Travel Sales $3.6
Travel Commissions and Fees/Sales* 8.3%
Travelers Cheque Sales $5.3
Average Travelers Cheques Outstanding $5.7
Investments $9.0
Travelers Cheques Outstanding $5.9
Total Debt $23.1
Shareholder's Equity $4.9
Return on Average Equity** 24.7%
Return on Average Assets** 2.5%
Owned and Managed Charge Card
Receivables:
Total Receivables $18.8
90 Days Past Due as a % of Total 4.1%
Loss Reserves (millions) $991
% of Receivables 5.3%
% of 90 Days Past Due 129%
Net Loss Ratio 0.51%
Owned and Managed U.S. Cardmember
Lending:
Total Loans $10.2
Past Due Loans as a % of Total:
30-89 Days 2.5%
90+ Days 1.0%
Loss Reserves (millions):
Beginning Balance $443
Provision 170
Net Charge-Offs/Other (130)
------
Ending Balance $483
======
% of Loans 4.7%
% of Past Due 136%
Average Loans $10.2
Net Write-Off Rate 5.2%
Net Interest Yield 9.4%
Quarter Ended
December 31, 1995
-----------------
Total Cards in Force (millions):
United States 26.7
Outside the United States 11.6
------
Total 38.3
======
Basic Cards in Force (millions):
United States 20.0
Outside the United States 9.2
------
Total 29.2
======
<PAGE>
Card Billed Business:
United States $31.3
Outside the United States 12.7
------
Total $44.0
======
Average Discount Rate* 2.75%
Average Basic Cardmember
Spending (dollars)* $1,528
Average Fee per Card (dollars)* $46
Travel Sales $4.1
Travel Commissions and Fees/Sales* 8.7%
Travelers Cheque Sales $5.1
Average Travelers Cheques Outstanding $6.0
Investments $9.2
Travelers Cheques Outstanding $5.7
Total Debt $22.3
Shareholder's Equity $4.9
Return on Average Equity** 24.6%
Return on Average Assets** 2.5%
Owned and Managed Charge Card
Receivables:
Total Receivables $20.5
90 Days Past Due as a % of Total 3.5%
Loss Reserves (millions) $952
% of Receivables 4.6%
% of 90 Days Past Due 131%
Net Loss Ratio 0.57%
Owned and Managed U.S. Cardmember
Lending:
Total Loans $10.0
Past Due Loans as a % of Total:
30-89 Days 2.8%
90+ Days 1.0%
Loss Reserves (millions):
Beginning Balance $389
Provision 162
Net Charge-Offs/Other (108)
------
Ending Balance $443
======
% of Loans 4.5%
% of Past Due 116%
Average Loans $9.5
Net Write-Off Rate 4.5%
Net Interest Yield 9.9%
* Computed from information provided herein.
** Excluding the effect of SFAS #115 and the fourth quarter 1996
restructuring charge of $125 million after-tax.
<PAGE>
<PAGE>
(Preliminary) American Express Financial Advisors
-----------------------------------
Statement of Income
---------------------
(Unaudited)
(Dollars in millions)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ -----------
Revenues:
Investment Income $576 $570 1.0%
Management and Distribution Fees 327 261 25.1
Other Revenues 166 142 17.0
-------- --------
Total Revenues 1,069 973 9.8
-------- --------
Expenses:
Provision for Losses and Benefits:
Annuities 309 301 2.7
Insurance 108 105 2.9
Investment Certificates 51 54 (7.0)
-------- --------
Total 468 460 1.6
Human Resources 277 227 22.1
Other Operating Expenses 96 83 16.1
-------- --------
Total Expenses 841 770 9.2
-------- --------
Pretax Income 228 203 12.3
Income Tax Provision 73 70 4.2
-------- --------
Net Income $155 $133 16.5
======== ========
(Preliminary) American Express Financial Advisors
-----------------------------------
Statement of Income
---------------------
(Unaudited)
(Dollars in millions)
Year Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Revenues:
Investment Income $2,267 $2,209 2.6%
Management and Distribution Fees 1,205 935 28.9
Other Revenues 638 547 16.5
-------- --------
Total Revenues 4,110 3,691 11.3
-------- --------
Expenses:
Provision for Losses and Benefits:
Annuities 1,208 1,156 4.4
Insurance 420 401 4.7
Investment Certificates 197 205 (3.6)
-------- --------
Total 1,825 1,762 3.6
Human Resources 1,034 877 17.9
Other Operating Expenses 366 297 23.1
-------- --------
Total Expenses 3,225 2,936 9.8
-------- --------
Pretax Income 885 755 17.2
Income Tax Provision 291 252 15.5
-------- --------
Net Income $594 $503 18.0
======== ========
<PAGE>
<PAGE>
(Preliminary) American Express Financial Advisors
-----------------------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Dollars in millions, except where indicated)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Revenues, Net of Provisions $601 $513 17.3%
Investments (billions) $28.6 $28.8 (0.4)
Client Contract Reserves (billions) $28.9 $28.6 1.0
Shareholder's Equity (billions) $3.2 $3.1 4.5
Return on Average Equity* 20.4% 19.4% -
Life Insurance in Force (billions) $67.3 $59.4 13.2
Assets Owned and/or Managed (billions):
Assets managed for institutions $37.3 $32.0 16.5
Assets owned and managed for individuals:
Owned Assets:
Separate Account Assets 18.5 15.0 23.8
Other Owned Assets 34.2 33.3 2.6
-------- --------
Total Owned Assets 52.7 48.3 9.2
Managed Assets 59.4 49.2 20.6
-------- --------
Total $149.4 $129.5 15.3
======== ========
Market Appreciation (Depreciation) During
the Period:
Owned Assets:
Separate Account Assets $735 $556 32.2
Other Owned Assets $126 $211 (40.3)
Total Managed Assets $3,264 $2,918 11.9
Sales of Selected Products:
Mutual Funds $3,686 $2,967 24.3
Annuities $1,085 $763 42.2
Investment Certificates $233 $88 #
Life and Other Insurance Sales $131 $110 18.9
Number of Financial Advisors 8,340 7,945 5.0
Fees From Financial Plans (thousands) $13,205 $10,986 20.2
Product Sales Generated from Financial
Plans as a Percentage of
Total Sales 64.9% 63.5% -
* Excluding the effect of SFAS #115.
<PAGE>
<PAGE>
(Preliminary) American Express Financial Advisors
-----------------------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Dollars in millions, except where indicated)
Year Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Revenues, Net of Provisions $2,285 $1,929 18.5%
Investments (billions) $28.6 $28.8 (0.4)
Client Contract Reserves (billions) $28.9 $28.6 1.0
Shareholder's Equity (billions) $3.2 $3.1 4.5
Return on Average Equity* 20.4% 19.4% -
Life Insurance in Force (billions) $67.3 $59.4 13.2
Assets Owned and/or Managed (billions):
Assets managed for institutions $37.3 $32.0 16.5
Assets owned and managed for individuals:
Owned Assets:
Separate Account Assets 18.5 15.0 23.8
Other Owned Assets 34.2 33.3 2.6
-------- --------
Total Owned Assets 52.7 48.3 9.2
Managed Assets 59.4 49.2 20.6
-------- --------
Total $149.4 $129.5 15.3
======== ========
Market Appreciation (Depreciation) During
the Period:
Owned Assets:
Separate Account Assets $1,937 $2,839 (31.8)
Other Owned Assets ($232) $927 #
Total Managed Assets $9,063 $12,246 (26.0)
Sales of Selected Products:
Mutual Funds $14,331 $10,202 40.5
Annuities $4,311 $3,520 22.5
Investment Certificates $736 $1,467 (49.8)
Life and Other Insurance Sales $449 $383 17.1
Number of Financial Advisors 8,340 7,945 5.0
Fees From Financial Plans (thousands) $48,072 $40,828 17.7
Product Sales Generated from Financial
Plans as a Percentage
of Total Sales 64.0% 64.1% -
* Excluding the effect of SFAS #115.
# Denotes variance of more than 100%
<PAGE>
<PAGE>
(Preliminary) American Express Financial Advisors
-----------------------------------
Statement of Income
-------------------
(Unaudited)
(Dollars in millions
Quarter Ended
December 31, 1996
-----------------
Revenues:
Investment Income $576
Management and Distribution Fees 327
Other Revenues 166
-------
Total Revenues 1,069
-------
Expenses:
Provision for Losses and Benefits:
Annuities 309
Insurance 108
Investment Certificates 51
-------
Total 468
Human Resources 277
Other Operating Expenses 96
-------
Total Expenses 841
-------
Pretax Income 228
Income Tax Provision 73
-------
Net Income $155
=======
Quarter Ended
September 30, 1996
------------------
Revenues:
Investment Income $560
Management and Distribution Fees 302
Other Revenues 159
-------
Total Revenues 1,021
-------
Expenses:
Provision for Losses and Benefits:
Annuities 303
Insurance 102
Investment Certificates 45
-------
Total 450
Human Resources 259
Other Operating Expenses 82
-------
Total Expenses 791
-------
<PAGE>
Pretax Income 230
Income Tax Provision 74
-------
Net Income $156
=======
Quarter Ended
June 30, 1996
-------------
Revenues:
Investment Income $562
Management and Distribution Fees 296
Other Revenues 159
-------
Total Revenues 1,017
-------
Expenses:
Provision for Losses and Benefits:
Annuities 298
Insurance 102
Investment Certificates 48
-------
Total 448
Human Resources 252
Other Operating Expenses 86
-------
Total Expenses 786
-------
Pretax Income 231
Income Tax Provision 78
-------
Net Income $153
=======
Quarter Ended
March 31, 1996
--------------
Revenues:
Investment Income $569
Management and Distribution Fees 279
Other Revenues 155
-------
Total Revenues 1,003
-------
Expenses:
Provision for Losses and Benefits:
Annuities 298
Insurance 109
Investment Certificates 53
-------
Total 460
Human Resources 246
Other Operating Expenses 101
-------
Total Expenses 807
-------
<PAGE>
Pretax Income 196
Income Tax Provision 66
-------
Net Income $130
=======
Quarter Ended
December 31, 1995
-----------------
Revenues:
Investment Income $570
Management and Distribution Fees 261
Other Revenues 142
-------
Total Revenues 973
-------
Expenses:
Provision for Losses and Benefits:
Annuities 301
Insurance 105
Investment Certificates 54
-------
Total 460
Human Resources 227
Other Operating Expenses 83
-------
Total Expenses 770
-------
Pretax Income 203
Income Tax Provision 70
-------
Net Income $133
=======
<PAGE>
<PAGE>
(Preliminary) American Express Financial Advisors
-----------------------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Dollars in millions, except where indicated)
Quarter Ended
December 31, 1996
-----------------
Revenues, Net of Provisions $601
Investments (billions) $28.6
Client Contract Reserves (billions) $28.9
Shareholder's Equity (billions) $3.2
Return on Average Equity* 20.4%
Life Insurance in Force (billions) $67.3
Assets Owned and/or Managed (billions):
Assets managed for institutions $37.3
Assets owned and managed for individuals:
Owned Assets:
Separate Account Assets 18.5
Other Owned Assets 34.2
-------
Total Owned Assets 52.7
Managed Assets 59.4
-------
Total $149.4
=======
Market Appreciation (Depreciation) During
the Period:
Owned Assets:
Separate Account Assets $735
Other Owned Assets $126
Total Managed Assets $3,264
Sales of Selected Products:
Mutual Funds $3,686
Annuities $1,085
Investment Certificates $233
Life and Other Insurance Sales $131
Number of Financial Advisors 8,340
Fees From Financial Plans (thousands) $13,205
Product Sales Generated from Financial
Plans as a Percentage of Total Sales 64.9%
Quarter Ended
September 30, 1996
------------------
Revenues, Net of Provisions $570
Investments (billions) $28.2
Client Contract Reserves (billions) $28.6
Shareholder's Equity (billions) $3.0
Return on Average Equity* 20.2%
<PAGE>
Life Insurance in Force (billions) $65.2
Assets Owned and/or Managed (billions):
Assets managed for institutions $35.8
Assets owned and managed for individuals:
Owned Assets:
Separate Account Assets 17.5
Other Owned Assets 33.3
-------
Total Owned Assets 50.8
Managed Assets 56.3
-------
Total $142.9
=======
Market Appreciation (Depreciation) During
the Period:
Owned Assets:
Separate Account Assets $354
Other Owned Assets $56
Total Managed Assets $2,380
Sales of Selected Products:
Mutual Funds $3,313
Annuities $946
Investment Certificates $182
Life and Other Insurance Sales $109
Number of Financial Advisors 8,092
Fees From Financial Plans (thousands) $11,660
Product Sales Generated from Financial
Plans as a Percentage of Total Sales 64.7%
Quarter Ended
June 30, 1996
-------------
Revenues, Net of Provisions $570
Investments (billions) $27.9
Client Contract Reserves (billions) $28.3
Shareholder's Equity (billions) $2.9
Return on Average Equity* 19.9%
Life Insurance in Force (billions) $63.0
Assets Owned and/or Managed (billions):
Assets managed for institutions $34.8
Assets owned and managed for individuals:
Owned Assets:
Separate Account Assets 16.7
Other Owned Assets 33.0
-------
Total Owned Assets 49.7
Managed Assets 54.0
-------
Total $138.5
=======
<PAGE>
Market Appreciation (Depreciation) During
the Period:
Owned Assets:
Separate Account Assets $390
Other Owned Assets ($131)
Total Managed Assets $2,254
Sales of Selected Products:
Mutual Funds $3,762
Annuities $1,125
Investment Certificates $186
Life and Other Insurance Sales $113
Number of Financial Advisors 7,997
Fees From Financial Plans (thousands) $11,584
Product Sales Generated from Financial
Plans as a Percentage of Total Sales 62.9%
Quarter Ended
March 31, 1996
--------------
Revenues, Net of Provisions $544
Investments (billions) $28.2
Client Contract Reserves (billions) $28.6
Shareholder's Equity (billions) $2.9
Return on Average Equity* 19.6%
Life Insurance in Force (billions) $61.2
Assets Owned and/or Managed (billions):
Assets managed for institutions $32.7
Assets owned and managed for individuals:
Owned Assets:
Separate Account Assets 15.8
Other Owned Assets 33.2
-------
Total Owned Assets 49.0
Managed Assets 51.4
-------
Total $133.1
=======
Market Appreciation (Depreciation) During
the Period:
Owned Assets:
Separate Account Assets $458
Other Owned Assets (283)
Total Managed Assets $1,165
Sales of Selected Products:
Mutual Funds $3,569
Annuities $1,155
Investment Certificates $136
Life and Other Insurance Sales $95
Number of Financial Advisors 7,954
Fees From Financial Plans (thousands) $11,623
Product Sales Generated from Financial
Plans as a Percentage of Total Sales 63.3%
<PAGE>
Quarter Ended
December 31, 1995
-----------------
Revenues, Net of Provisions $513
Investments (billions) $28.8
Client Contract Reserves (billions) $28.6
Shareholder's Equity (billions) $3.1
Return on Average Equity* 19.4%
Life Insurance in Force (billions) $59.4
Assets Owned and/or Managed (billions):
Assets managed for institutions $32.0
Assets owned and managed for individuals:
Owned Assets:
Separate Account Assets 15.0
Other Owned Assets 33.3
-------
Total Owned Assets 48.3
Managed Assets 49.2
-------
Total $129.5
=======
Market Appreciation (Depreciation) During
the Period:
Owned Assets:
Separate Account Assets $556
Other Owned Assets $211
Total Managed Assets $2,918
Sales of Selected Products:
Mutual Funds $2,967
Annuities $763
Investment Certificates $88
Life and Other Insurance Sales $110
Number of Financial Advisors 7,945
Fees From Financial Plans (thousands) $10,986
Product Sales Generated from Financial
Plans as a Percentage of Total Sales 63.5%
* Excluding the effect of SFAS #115.
<PAGE>
<PAGE>
(Preliminary) American Express Bank
---------------------
Statement of Income
-------------------
(Unaudited)
(Dollars in millions)
Quarter Ended
December 31, Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Net Revenues:
Interest Income $223 $232 (3.9%)
Interest Expense 140 155 (9.5)
-------- --------
Net Interest Income 83 77 7.4
Commissions, Fees and
Other Revenues 57 62 (7.8)
Foreign Exchange Income 16 19 (13.2)
-------- --------
Total Net Revenues 156 158 (1.0)
-------- --------
Provision for Credit Losses 10 2 #
-------- --------
Expenses:
Human Resources 56 57 (2.1)
Other Operating Expenses 64 67 (5.5)
-------- --------
Total Expenses 120 124 (4.0)
-------- --------
Pretax Income 26 32 (16.8)
Income Tax Provision 9 11 (13.7)
-------- --------
Net Income $17 $21 (18.4)
======== ========
# Denotes variance of more than 100%.
<PAGE>
<PAGE>
American Express Bank
---------------------
Statement of Income
-------------------
(Unaudited)
(Dollars in millions)
Year Ended
December 31,
----------------- Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Net Revenues:
Interest Income $842 $925 (9.0%)
Interest Expense 536 604 (11.3)
-------- --------
Net Interest Income 306 321 (4.6)
Commissions, Fees and
Other Revenues 213 243 (12.1)
Foreign Exchange Income 72 79 (8.8)
-------- --------
Total Net Revenues 591 643 (7.9)
-------- --------
Provision for Credit Losses 23 7 #
-------- --------
Expenses:
Human Resources 224 248 (9.5)
Other Operating Expenses 239 273 (12.6)
-------- --------
Total Expenses 463 521 (11.1)
-------- --------
Pretax Income 105 115 (8.2)
Income Tax Provision 37 38 (0.3)
-------- --------
Net Income $68 $77 (12.1)
======== ========
# Denotes variance of more than 100%.
<PAGE>
<PAGE>
(Preliminary) American Express Bank
---------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Dollars in millions, except where indicated)
Quarter Ended
December 31,
----------------- Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Investments (billions) $2.8 $2.5 11.8%
Total Loans (billions) $5.9 $5.4 8.3
Reserve for Credit Losses $117 $111 5.6
Total Nonperforming Loans $35 $34 3.5
Other Real Estate Owned $36 $44 (18.5)
Deposits (billions) $8.7 $8.5 2.0
Shareholder's Equity $799 $837 (4.6)
Return on Average Assets* 0.55% 0.66% -
Return on Average Common Equity* 8.89% 10.54% -
Risk-Based Capital Ratios:
Tier 1 8.8% 8.9% -
Total 12.5% 13.0% -
Leverage Ratio 5.6% 5.8% -
* Excluding the effect of SFAS #115.
(Preliminary) American Express Bank
---------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Dollars in millions, except where indicated)
Year Ended
December 31,
----------------- Percentage
1996 1995 Inc/(Dec)
------ ------ ----------
Investments (billions) $2.8 $2.5 11.8%
Total Loans (billions) $5.9 $5.4 8.3
Reserve for Credit Losses $117 $111 5.6
Total Nonperforming Loans $35 $34 3.5
Other Real Estate Owned $36 $44 (18.5)
Deposits (billions) $8.7 $8.5 2.0
Shareholder's Equity $799 $837 (4.6)
Return on Average Assets* 0.57% 0.59% -
Return on Average Common Equity* 9.22% 9.99% -
Risk-Based Capital Ratios:
Tier 1 8.8% 8.9% -
Total 12.5% 13.0% -
Leverage Ratio 5.6% 5.8% -
* Excluding the effect of SFAS #115.
<PAGE>
<PAGE>
(Preliminary) American Express Bank
---------------------
Statement of Income
-------------------
(Unaudited)
(Dollars in millions)
Quarter Ended
December 31, 1996
-----------------
Net Revenues:
Interest Income $223
Interest Expense 140
-------
Net Interest Income 83
Commissions, Fees and Other Revenues 57
Foreign Exchange Income 16
-------
Total Net Revenues 156
-------
Provision for Credit Losses 10
-------
Expenses:
Human Resources 56
Other Operating Expenses 64
-------
Total Expenses 120
-------
Pretax Income 26
Income Tax Provision 9
-------
Net Income $17
======
Quarter Ended
September 30, 1996
------------------
Net Revenues:
Interest Income $206
Interest Expense 128
-------
Net Interest Income 78
Commissions, Fees and Other Revenues 57
Foreign Exchange Income 16
-------
Total Net Revenues 151
-------
Provision for Credit Losses 5
-------
Expenses:
Human Resources 59
Other Operating Expenses 59
-------
Total Expenses 118
-------
<PAGE>
Pretax Income 28
Income Tax Provision 10
-------
Net Income $18
=======
Quarter Ended
June 30, 1996
-------------
Net Revenues:
Interest Income $207
Interest Expense 135
-------
Net Interest Income 72
Commissions, Fees and Other Revenues 48
Foreign Exchange Income 20
-------
Total Net Revenues 140
-------
Provision for Credit Losses 4
-------
Expenses:
Human Resources 54
Other Operating Expenses 60
-------
Total Expenses 114
-------
Pretax Income 22
Income Tax Provision 8
-------
Net Income $14
=======
Quarter Ended
March 31, 1996
--------------
Net Revenues:
Interest Income $211
Interest Expense 134
-------
Net Interest Income 77
Commissions, Fees and Other Revenues 49
Foreign Exchange Income 20
-------
Total Net Revenues 146
-------
Provision for Credit Losses 4
-------
Expenses:
Human Resources 56
Other Operating Expenses 57
-------
Total Expenses 113
-------
Pretax Income 29
Income Tax Provision 10
-------
Net Income $19
=======
<PAGE>
Quarter Ended
December 31, 1995
-----------------
Net Revenues:
Interest Income $232
Interest Expense 155
-------
Net Interest Income 77
Commissions, Fees and Other Revenues 62
Foreign Exchange Income 19
-------
Total Net Revenues 158
-------
Provision for Credit Losses 2
-------
Expenses:
Human Resources 57
Other Operating Expenses 67
-------
Total Expenses 124
-------
Pretax Income 32
Income Tax Provision 11
-------
Net Income $21
=======
<PAGE>
<PAGE>
(Preliminary) American Express Bank
---------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Dollars in millions, except where indicated)
Quarter Ended
December 31, 1996
-----------------
Investments (billions) $2.8
Total Loans (billions) $5.9
Reserve for Credit Losses $117
Total Nonperforming Loans $35
Other Real Estate Owned $36
Deposits (billions) $8.7
Shareholder's Equity $799
Return on Average Assets* 0.55%
Return on Average Common Equity* 8.89%
Risk-Based Capital Ratios:
Tier 1 8.8%
Total 12.5%
Leverage Ratio 5.6%
Quarter Ended
September 30, 1996
------------------
Investments (billions) $2.5
Total Loans (billions) $5.6
Reserve for Credit Losses $116
Total Nonperforming Loans $31
Other Real Estate Owned $34
Deposits (billions) $8.4
Shareholder's Equity $777
Return on Average Assets* 0.62%
Return on Average Common Equity* 9.61%
Risk-Based Capital Ratios:
Tier 1 9.0%
Total 12.8%
Leverage Ratio 6.0%
Quarter Ended
June 30, 1996
-------------
Investments (billions) $2.1
Total Loans (billions) $5.5
Reserve for Credit Losses $113
Total Nonperforming Loans $38
Other Real Estate Owned $48
Deposits (billions) $7.8
Shareholder's Equity $755
Return on Average Assets* 0.49%
<PAGE>
Return on Average Common Equity* 7.83%
Risk-Based Capital Ratios:
Tier 1 9.1%
Total 12.9%
Leverage Ratio 5.8%
Quarter Ended
March 31, 1996
--------------
Investments (billions) $2.4
Total Loans (billions) $5.3
Reserve for Credit Losses $110
Total Nonperforming Loans $35
Other Real Estate Owned $43
Deposits (billions) $8.1
Shareholder's Equity $746
Return on Average Assets* 0.64%
Return on Average Common Equity* 10.57%
Risk-Based Capital Ratios:
Tier 1 9.0%
Total 12.9%
Leverage Ratio 5.5%
Quarter Ended
December 31, 1995
-----------------
Investments (billions) $2.5
Total Loans (billions) $5.4
Reserve for Credit Losses $111
Total Nonperforming Loans $34
Other Real Estate Owned $44
Deposits (billions) $8.5
Shareholder's Equity $837
Return on Average Assets* 0.66%
Return on Average Common Equity* 10.54%
Risk-Based Capital Ratios:
Tier 1 8.9%
Total 13.0%
Leverage Ratio 5.8%
* Excluding the effect of SFAS #115.
<PAGE>
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
AMERICAN EXPRESS COMPANY
By: /s/ Stephen P. Norman
----------------------------
Name: Stephen P. Norman
Title: Secretary
Dated: January 28, 1997
<PAGE>
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