REG-American Exp.Co American Express First Quarter EPS of $1.45, Full Year Outlook Reaffirmed <Origin Href="QuoteRef">AXP.N</Origin> - Part 2
21/04/2016 07:05
- Part 2: For the preceding part double click ID:nBw9WQW81a
140 54 95 (59 ) 195 425
Total revenues net of interest expense 3,280 1,313 2,416 1,100 (21 ) 8,088
Total provision 190 71 160 8 5 434
Pretax income (loss) 1,087 255 761 571 (490 ) 2,184
Income tax provision (benefit) 393 67 276 214 (192 ) 758
Net income (loss) 694 188 485 357 (298 ) 1,426
Q1'15
Non-interest revenues $ 2,031 $ 1,145 $ 2,175 $ 1,070 $ 82 $ 6,503
Interest income 1,273 245 278 - 61 1,857
Interest expense 114 63 89 (59 ) 203 410
Total revenues net of interest expense 3,190 1,327 2,364 1,129 (60 ) 7,950
Total provision 193 70 151 6 - 420
Pretax income (loss) 1,041 280 817 586 (408 ) 2,316
Income tax provision (benefit) 382 83 300 217 (191 ) 791
Net income (loss) 659 197 517 369 (217 ) 1,525
YOY % change
Non-interest revenues - - 1 (3 ) 32 -
Interest income 9 (7 ) 15 - 8 8
Interest expense 23 (14 ) 7 - (4 ) 4
Total revenues net of interest expense 3 (1 ) 2 (3 ) (65 ) 2
Total provision (2 ) 1 6 33 - 3
Pretax income (loss) 4 (9 ) (7 ) (3 ) 20 (6 )
Income tax provision (benefit) 3 (19 ) (8 ) (1 ) 1 (4 )
Net income (loss) 5 (5 ) (6 ) (3 ) 37 (6 )
American Express Company (Preliminary)
Billed Business Growth Trend
YOY % change
Reported FX-Adjusted (Y)
Q1'16 Q4'15 Q3'15 Q2'15 Q1'15 Q1'16 Q4'15 Q3'15 Q2'15 Q1'15
Worldwide (Z)
Total Billed Business 3 % 2 % 0 % 2 % 3 % 6 % 5 % 5 % 6 % 7 %
Proprietary billed business 3 1 0 0 2 4 3 3 4 5
GNS billed business (AA) 5 3 (1 ) 5 7 13 14 13 16 16
Airline-related volume (9% of Q1'16 worldwide billed business) (4 ) (5 ) (6 ) (5 ) (3 ) (2 ) (1 ) 0 1 2
United States (Z)
Billed Business 4 4 4 5 6 n/a n/a n/a n/a n/a
Proprietary consumer card billed business (AB) 4 4 4 5 6 n/a n/a n/a n/a n/a
Proprietary small business and corporate services billed business (AC) 5 3 4 4 6 n/a n/a n/a n/a n/a
T&E-related volume (27% of Q1'16 U.S. billed business) 1 2 3 4 5 n/a n/a n/a n/a n/a
Non-T&E-related volume (73% of Q1'16 U.S. billed business) 5 4 4 5 6 n/a n/a n/a n/a n/a
Airline-related volume (8% of Q1'16 U.S. billed business) (5 ) (3 ) (3 ) (2 ) 0 n/a n/a n/a n/a n/a
Outside the United States (Z)
Billed Business 2 (3 ) (8 ) (5 ) (3 ) 9 8 7 8 8
Japan, Asia Pacific & Australia ("JAPA") billed business 8 5 (2 ) 4 6 13 14 13 16 15
Latin America & Canada ("LACC") billed business (14 ) (19 ) (24 ) (18 ) (14 ) 5 0 (5 ) (5 ) (4 )
Europe, Middle East & Africa ("EMEA") billed business 3 (4 ) (5 ) (9 ) (9 ) 8 5 7 7 6
Proprietary consumer card billed business (AA) 1 (8 ) (15 ) (14 ) (12 ) 8 3 (1 ) (1 ) 0
Proprietary small business and corporate services billed business (AC) (3 ) (10 ) (11 ) (11 ) (10 ) 4 2 5 4 3
U.S. Consumer Services (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages) Q1'16 Q4'15 Q3'15 Q2'15 Q1'15 YOY %
change
Non-interest revenues $ 2,029 $ 2,155 $ 2,117 $ 2,176 $ 2,031 -
Interest income 1,391 1,349 1,324 1,252 1,273 9
Interest expense 140 130 123 121 114 23
Net interest income 1,251 1,219 1,201 1,131 1,159 8
Total revenues net of interest expense 3,280 3,374 3,318 3,307 3,190 3
Provisions for losses 190 334 294 243 193 (2 )
Total revenues net of interest expense after provisions for losses 3,090 3,040 3,024 3,064 2,997 3
Expenses
Marketing, promotion, rewards, Card Member services and other 1,348 1,410 1,396 1,366 1,210 11
Salaries and employee benefits and other operating expenses 655 793 768 759 746 (12 )
Total expenses 2,003 2,203 2,164 2,125 1,956 2
Pretax segment income 1,087 837 860 939 1,041 4
Income tax provision 393 296 318 326 382 3
Segment income $ 694 $ 541 $ 542 $ 613 $ 659 5
Effective tax rate 36.2 % 35.4 % 37.0 % 34.7 % 36.7 %
(Billions, except percentages and where indicated)
Card billed business $ 89.0 $ 98.4 $ 92.3 $ 93.6 $ 85.7 4
Total cards-in-force (millions) 40.9 40.7 40.0 39.1 38.6 6
Basic cards-in-force (millions) 28.8 28.6 28.0 27.3 26.9 7
Average basic Card Member spending (dollars) (P) $ 3,092 $ 3,471 $ 3,337 $ 3,472 $ 3,184 (3 )
Total segment assets (AD) $ 86.3 $ 92.7 $ 84.0 $ 84.4 $ 84.0
Segment capital (AE) $ 7.4 $ 7.2 $ 7.3 $ 7.9 $ 7.8
Return on average segment capital (AF) 31.8 % 31.1 % 30.1 % 31.2 % 30.5 %
Return on average tangible segment capital (AF) 33.3 % 32.5 % 31.3 % 32.4 % 31.6 %
Card Member receivables: (Q)
Total receivables $ 10.3 $ 11.8 $ 10.5 $ 10.8 $ 10.5 (1 )
30 days past due as a % of total 1.4 % 1.4 % 1.6 % 1.4 % 1.5 %
Net write-off rate (principal only) (V) 1.8 % 1.6 % 1.5 % 1.2 % 2.1 %
Net write-off rate (principal and fees) (V) 2.0 % 1.8 % 1.7 % 1.4 % 2.3 %
Card Member loans: (Q)
Total loans $ 42.4 $ 43.5 $ 52.2 $ 51.8 $ 50.3 (16 )
30 days past due loans as a % of total 1.0 % 1.0 % 1.0 % 0.9 % 0.9 %
Average loans $ 42.5 $ 50.5 $ 52.1 $ 51.1 $ 50.9 (16 )
Net write-off rate (principal only) (V) 1.5 % 1.4 % 1.3 % 1.4 % 1.5 %
Net write-off rate (principal, interest and fees) (V) 1.7 % 1.6 % 1.5 % 1.6 % 1.7 %
Net interest income divided by average loans (X) 9.3 % 9.1 % 9.2 % 8.9 % 9.1 %
Net interest yield on Card Member loans (X) 9.5 % 9.1 % 9.2 % 9.0 % 9.4 %
# - Denotes a variance of more than 100 percent.
International Consumer and Network Services (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages) Q1'16 Q4'15 Q3'15 Q2'15 Q1'15 YOY %
change
Non-interest revenues $ 1,140 $ 1,178 $ 1,141 $ 1,163 $ 1,145 -
Interest income 227 235 228 237 245 (7 )
Interest expense 54 59 55 58 63 (14 )
Net interest income 173 176 173 179 182 (5 )
Total revenues net of interest expense 1,313 1,354 1,314 1,342 1,327 (1 )
Provisions for losses 71 77 77 76 70 1
Total revenues net of interest expense after provisions for losses 1,242 1,277 1,237 1,266 1,257 (1 )
Expenses
Marketing, promotion, rewards, Card Member services and other 481 547 504 482 447 8
Salaries and employee benefits and other operating expenses 506 545 532 546 530 (5 )
Total expenses 987 1,092 1,036 1,028 977 1
Pretax segment income 255 185 201 238 280 (9 )
Income tax provision/(benefit) 67 45 47 45 83 (19 )
Segment income $ 188 $ 140 $ 154 $ 193 $ 197 (5 )
Effective tax rate 26.3 % 24.3 % 23.4 % 18.9 % 29.6 %
(Billions, except percentages and where indicated)
Card billed business
Proprietary $ 24.7 $ 27.0 $ 25.1 $ 25.5 $ 24.5 1
Global Network Services (GNS) 40.5 43.5 $ 40.8 $ 41.5 $ 38.6 5
Total $ 65.2 $ 70.5 $ 65.9 $ 67.0 $ 63.1 3
Total cards-in-force (millions)
Proprietary 14.8 14.6 14.5 14.5 14.3 3
GNS 47.7 47.4 46.3 45.5 44.5 7
Total 62.5 62.0 60.8 60.0 58.8 6
Proprietary basic cards-in-force (millions) 10.1 9.9 9.9 9.9 9.9 2
Average basic Card Member spending (dollars) (P) $ 2,455 $ 2,718 $ 2,547 $ 2,600 $ 2,454 -
Total segment assets (AD) $ 34.3 $ 35.1 $ 34.5 $ 28.9 $ 28.6
Segment capital (AE) $ 2.5 $ 2.6 $ 3.1 $ 3.1 $ 3.0
Return on average segment capital (AF) 23.6 % 23.8 % 21.9 % 24.8 % 24.3 %
Return on average tangible segment capital (AF) 31.7 % 32.0 % 29.6 % 34.1 % 34.2 %
Card Member receivables: (Q)
Total receivables $ 5.6 $ 5.6 $ 5.2 $ 5.5 $ 5.1 8
30 days past due as a % of total 1.5 % 1.5 % 1.6 % 1.5 % 1.6 %
Net write-off rate (principal only) (V) 2.2 % 2.1 % 2.3 % 2.1 % 1.9 %
Net write-off rate (principal and fees) (V) 2.4 % 2.3 % 2.5 % 2.3 % 2.1 %
Card Member loans: (Q)
Total loans $ 6.6 $ 7.1 $ 6.7 $ 7.2 $ 6.8 (3 )
30 days past due loans as a % of total 1.8 % 1.6 % 1.6 % 1.6 % 1.8 %
Average loans $ 6.8 $ 7.0 $ 6.9 $ 7.0 $ 7.2 (6 )
Net write-off rate (principal only) (V) 1.9 % 1.8 % 1.8 % 2.0 % 2.0 %
Net write-off rate (principal, interest and fees) (V) 2.4 % 2.2 % 2.3 % 2.5 % 2.5 %
Net interest income divided by average loans (X) 10.3 % 10.1 % 10.1 % 10.2 % 10.2 %
Net interest yield on Card Member loans (X) 10.8 % 10.6 % 10.4 % 10.7 % 10.9 %
# - Denotes a variance of more than 100 percent.
Global Commercial Services (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages) Q1'16 Q4'15 Q3'15 Q2'15 Q1'15 YOY %
change
Non-interest revenues $ 2,190 $ 2,253 $ 2,217 $ 2,285 $ 2,175 1
Interest income 321 311 297 289 278 15
Interest expense 95 94 91 91 89 7
Net interest income 226 217 206 198 189 20
Total revenues net of interest expense 2,416 2,470 2,423 2,483 2,364 2
Provisions for losses 160 153 148 136 151 6
Total revenues net of interest expense after provisions for losses 2,256 2,317 2,275 2,347 2,213 2
Expenses
Marketing, promotion, rewards, Card Member services and other 766 784 826 809 723 6
Salaries and employee benefits and other operating expenses 729 772 712 689 673 8
Total expenses 1,495 1,556 1,538 1,498 1,396 7
Pretax segment income 761 761 737 849 817 (7 )
Income tax provision 276 274 269 299 300 (8 )
Segment income $ 485 $ 487 $ 468 $ 550 $ 517 (6 )
Effective tax rate 36.3 % 36.0 % 36.5 % 35.2 % 36.7 %
(Billions, except percentages and where indicated)
Card billed business $ 98.5 $ 103.2 $ 99.5 $ 100.4 $ 95.5 3
Total cards-in-force (millions) 15.2 15.1 15.0 14.7 14.8 3
Basic cards-in-force (millions) 15.2 15.1 15.0 14.7 14.8 3
Average basic Card Member spending (dollars) (P) $ 6,509 $ 6,859 $ 6,711 $ 6,811 $ 6,461 1
Total segment assets (AD) $ 46.7 $ 45.1 $ 45.9 $ 45.9 $ 45.5
Segment capital (AE) $ 7.2 $ 7.0 $ 6.8 $ 7.1 $ 7.3
Return on average segment capital (AF) 28.0 % 28.7 % 34.1 % 35.2 % 34.4 %
Return on average tangible segment capital (AF) 38.8 % 40.0 % 47.5 % 49.2 % 48.4 %
Card Member receivables (Q) $ 28.6 $ 26.7 $ 28.6 $ 28.6 $ 28.1 2
Card Member loans (Q) $ 8.3 $ 8.0 $ 10.0 $ 10.0 $ 9.7 (14 )
Card Member receivables: (Q)
Total receivables - GCP (W) $ 15.4 $ 13.8 $ 15.7 $ 15.9 $ 15.7
90 days past billing as a % of total - GCP (W) 0.7 % 0.9 % 0.7 % 0.7 % 0.7 %
Net loss ratio (as a % of charge volume) - GCP (W) 0.08 % 0.08 % 0.08 % 0.09 % 0.10 %
Total receivables - Global Small Business Services (GSBS) (AG) $ 13.2 $ 12.9 $ 12.9 $ 12.8 $ 12.4 7
30 days past due as a % of total - GSBS 1.6 % 1.7 % 1.6 % 1.6 % 1.8 %
Net write-off rate (principal only) - GSBS (V) 1.8 % 1.6 % 1.8 % 1.9 % 2.2 %
Net write-off rate (principal and fees) - GSBS (V) 2.1 % 1.8 % 2.0 % 2.1 % 2.4 %
Card Member loans: (Q) (AH)
Total loans - GSBS $ 8.3 $ 8.0 $ 10.0 $ 9.9 $ 9.7 (14 )
30 days past due as a % of total - GSBS 1.0 % 1.1 % 1.0 % 0.9 % 1.0 %
Average loans - GSBS $ 8.1 $ 9.6 $ 9.9 $ 9.8 $ 9.5 (15 )
Net write-off rate (principal only) - GSBS (U) 1.4 % 1.2 % 1.3 % 1.3 % 1.3 %
Net write-off rate (principal, interest and fees) - GSBS (U) 1.6 % 1.5 % 1.5 % 1.5 % 1.6 %
Net interest income divided by average loans (X) 8.8 % 8.5 % 8.3 % 8.0 % 7.9 %
Net interest yield on Card Member loans (X) 10.5 % 10.2 % 10.0 % 10.0 % 10.2 %
# - Denotes a variance of more than 100 percent.
Global Merchant Services (Preliminary)
Selected Income Statement and Statistical Information
(Millions, except percentages) Q1'16 Q4'15 Q3'15 Q2'15 Q1'15 YOY %
change
Non-interest revenues $ 1,041 $ 1,148 $ 1,123 $ 1,130 $ 1,070 (3 )
Interest income - - - 1 - -
Interest expense (59 ) (57 ) (46 ) (49 ) (59 ) -
Net interest income 59 57 46 50 59 -
Total revenues net of interest expense 1,100 1,205 1,169 1,180 1,129 (3 )
Provisions for losses 8 9 8 8 6 33
Total revenues net of interest expense after provisions for losses 1,092 1,196 1,161 1,172 1,123 (3 )
Expenses
Marketing, promotion, rewards, Card Member services and other 58 84 78 76 56 4
Salaries and employee benefits and other operating expenses 463 537 449 510 481 (4 )
Total expenses 521 621 527 586 537 (3 )
Pretax segment income 571 575 634 586 586 (3 )
Income tax provision 214 211 237 217 217 (1 )
Segment income $ 357 $ 364 $ 397 $ 369 $ 369 (3 )
Effective tax rate 37.5 % 36.7 % 37.4 % 37.0 % 37.0 %
Loyalty Coalition revenue $ 94 $ 99 $ 100 $ 88 $ 91 3
(Billions, except percentages and where indicated)
Average discount rate (R) 2.44 % 2.42 % 2.46 % 2.49 % 2.49 %
Total segment assets (AD) $ 23.7 $ 23.5 $ 23.3 $ 17.4 $ 17.2
Segment capital (AE) $ 2.4 $ 2.4 $ 2.6 $ 2.3 $ 2.2
Return on average segment capital (AF) 62.7 % 64.8 % 66.9 % 68.0 % 68.9 %
Return on average tangible segment capital (AF) 79.3 % 82.7 % 86.5 % 89.5 % 92.0 %
# - Denotes a variance of more than 100 percent.
American Express Company (Preliminary)
Appendix I
Components of Return on Average Equity (ROE), Return on Average Common Equity (ROCE), and Return on Average Tangible Common Equity (ROTCE)
(Millions, except percentages)
For the Twelve Months Ended
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2016 2015 2015 2015 2015
ROE
Net income $ 5,064 $ 5,163 $ 5,711 $ 5,922 $ 5,978
Average shareholders' equity $ 21,499 $ 21,494 $ 21,349 $ 21,050 $ 20,606
Return on average equity (AI) 23.6 % 24.0 % 26.8 % 28.1 % 29.0 %
Reconciliation of ROCE and ROTCE
Net income $ 5,064 $ 5,163 $ 5,711 $ 5,922 $ 5,978
Preferred shares dividends and related accretion 83 62 42 20 -
Earnings allocated to participating share awards and other 38 38 43 44 45
Net income attributable to common shareholders $ 4,943 $ 5,063 $ 5,626 $ 5,858 $ 5,933
Average shareholders' equity $ 21,499 $ 21,494 $ 21,349 $ 21,050 $ 20,606
Average preferred shares 1,584 1,390 1,081 716 350
Average common shareholders' equity $ 19,915 $ 20,104 $ 20,268 $ 20,334 $ 20,256
Average goodwill and other intangibles 3,742 3,782 3,796 3,802 3,845
Average tangible common shareholders' equity $ 16,173 $ 16,322 $ 16,472 $ 16,532 $ 16,411
Return on average common equity (AI) 24.8 % 25.2 % 27.8 % 28.8 % 29.3 %
Return on average tangible common equity (AJ) 30.6 % 31.0 % 34.2 % 35.4 % 36.2 %
American Express Company (Preliminary)
Appendix II
Components of Return on Average Segment Capital (ROSC) and Return on Average Tangible Segment Capital (ROTSC)
(Millions, except percentages)
For the Twelve Months Ended
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2016 2015 2015 2015 2015
U.S. Consumer Services
Segment income $ 2,390 $ 2,355 $ 2,274 $ 2,355 $ 2,271
Average segment capital $ 7,514 $ 7,560 $ 7,556 $ 7,551 $ 7,440
Average goodwill and other intangibles 330 317 299 280 261
Average tangible segment capital $ 7,184 $ 7,243 $ 7,257 $ 7,271 $ 7,179
Return on average segment capital (AK) 31.8 % 31.1 % 30.1 % 31.2 % 30.5 %
Return on average tangible segment capital (AK) 33.3 % 32.5 % 31.3 % 32.4 % 31.6 %
International Consumer and Network Services
Segment income $ 676 $ 684 $ 627 $ 688 $ 651
Average segment capital $ 2,861 $ 2,873 $ 2,861 $ 2,780 $ 2,675
Average goodwill and other intangibles 727 735 743 759 774
Average tangible segment capital $ 2,134 $ 2,138 $ 2,118 $ 2,021 $ 1,901
Return on average segment capital (AK) 23.6 % 23.8 % 21.9 % 24.8 % 24.3 %
Return on average tangible segment capital (AK) 31.7 % 32.0 % 29.6 % 34.1 % 34.2 %
Global Commercial Services
Segment income $ 1,990 $ 2,022 $ 2,384 $ 2,446 $ 2,352
Average segment capital $ 7,107 $ 7,036 $ 6,988 $ 6,942 $ 6,829
Average goodwill and other intangibles 1,979 1,976 1,973 1,973 1,972
Average tangible segment capital $ 5,128 $ 5,060 $ 5,015 $ 4,969 $ 4,857
Return on average segment capital (AK) 28.0 % 28.7 % 34.1 % 35.2 % 34.4 %
Return on average tangible segment capital (AK) 38.8 % 40.0 % 47.5 % 49.2 % 48.4 %
Global Merchant Services
Segment income $ 1,487 $ 1,499 $ 1,504 $ 1,472 $ 1,462
Average segment capital $ 2,371 $ 2,311 $ 2,248 $ 2,165 $ 2,123
Average goodwill and other intangibles 496 499 508 521 534
Average tangible segment capital $ 1,875 $ 1,812 $ 1,740 $ 1,644 $ 1,589
Return on average segment capital (AK) 62.7 % 64.8 % 66.9 % 68.0 % 68.9 %
Return on average tangible segment capital (AK) 79.3 % 82.7 % 86.5 % 89.5 % 92.0 %
American Express Company (Preliminary)
Appendix III
Net Interest Yield on Card Member Loans
(Millions, except percentages and where indicated)
Q1'16 Q4'15 Q3'15 Q2'15 Q1'15
Consolidated
Net interest income $ 1,580 $ 1,547 $ 1,505 $ 1,423 $ 1,447
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio $ 238 $ 225 $ 232 $ 248 $ 246
Interest income not attributable to the Company's Card Member loan portfolio $ (103 ) $ (90 ) $ (89 ) $ (91 ) $ (87 )
Adjusted net interest income (AL) $ 1,715 $ 1,682 $ 1,648 $ 1,580 $ 1,606
Average loans including Held for Sale (billions) $ 70.8 $ 70.9 $ 69.0 $ 68.0 $ 67.6
Net interest income divided by average loans (AM) 8.9 % 8.7 % 8.7 % 8.4 % 8.6 %
Net interest yield on Card Member loans (AN) 9.7 % 9.4 % 9.5 % 9.3 % 9.6 %
U.S. Consumer Services
Net interest income $ 1,251 $ 1,219 $ 1,201 $ 1,131 $ 1,159
Exclude:
Interest expense not attributable to the Company's Card Member loan portfolio $ 19 $ 19 $ 18 $ 18 $ 17
Interest income not attributable to the Company's Card Member loan portfolio $ (5 ) $ (4 ) $ (5 ) $ (3 ) $ (4 )
Adjusted net interest income (AL) $ 1,265 $ 1,234 $ 1,214 $ 1,146 $ 1,172
Average loans including Held for Sale (billions) $ 53.8 $ 53.7 $ 52.1 $ 51.1 $ 50.9
Net interest income divided by average loans (AM) 9.3 % 9.1 % 9.2 % 8.9 % 9.1 %
Net interest yield on Card Member loans (AN)
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