<SEC-DOCUMENT>0000004962-01-500061.txt : 20011026
<SEC-HEADER>0000004962-01-500061.hdr.sgml : 20011026
ACCESSION NUMBER:		0000004962-01-500061
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20010930
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20011022

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN EXPRESS CO
		CENTRAL INDEX KEY:			0000004962
		STANDARD INDUSTRIAL CLASSIFICATION:	FINANCE SERVICES [6199]
		IRS NUMBER:				134922250
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07657
		FILM NUMBER:		1763348

	BUSINESS ADDRESS:	
		STREET 1:		AMERICAN EXPRESS TWR WORLD FINANCIAL CN
		STREET 2:		200 VESEY ST 49TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10285
		BUSINESS PHONE:		2126402000

	MAIL ADDRESS:	
		STREET 1:		AMERICAN EXPRESS TOWER
		STREET 2:		200 VESEY ST 49TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10285
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>wrap.txt
<DESCRIPTION>8-K
<TEXT>
================================================================================


                      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): October 22, 2001
                          --------------------------



                           AMERICAN EXPRESS COMPANY
            (Exact name of registrant as specified in its charter)

                          --------------------------



          New York                      1-7657                 13-4922250
----------------------------   ------------------------    -------------------
(State or other jurisdiction   (Commission File Number)     (I.R.S. Employer
     of incorporation or                                   Identification No.)
        organization)



       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>
Item 5.   Other Events.

On October 22, 2001, the Registrant issued a press release announcing its 2001
third quarter earnings and distributed a 2001 third Quarter Earnings
Supplement. Such press release is filed herein as Exhibit 99.1, and such
Earnings Supplement is filed herein as Exhibit 99.2.

The Company issued a second quarter 2001 earnings release and earnings
supplement, both of which were filed in an 8-K Report dated July 23, 2001 as
Exhibits 99.1 and 99.2, respectively. The Company subsequently filed a
second quarter Form 10-Q with the U.S. Securities and Exchange Commission
(SEC) on August 14, 2001. The Company issued a first quarter 2001 earnings
release and earnings supplement, both of which were filed in an 8-K Report
dated April 23, 2001 as Exhibits 99.1 and 99.2, respectively. The Company
subsequently filed a first quarter 2001 Form 10-Q with the SEC on May 15,
2001. Certain statistical data contained in such 8-K Reports are
being adjusted as follows (such data area also included in the above
referenced 10-Q Reports):

         In the second quarter 2001 earnings release, under the caption
American Express Financial Advisors' Selected Statistical Information for the
quarter ended June 30, 2001, Cash Sales for Annuities for the quarter ended
June 30, 2001 were $1,406 million, down 10.3%, rather than the reported $1,588
million, up 1.4%. Total Cash Sales were $13,373 million, down 12.3%, rather
than $13,555 million, down 11.1%.

         In the second quarter 2001 earnings release, under the caption
American Express Financial Advisors Selected Statistical Information for the
Quarters Ended June 30, 2001, March 31, 2001, December 31, 2001, September 30,
2000 and June 30, 2000, Cash Sales for Annuities for the quarter ended June
30, 2001 were $1,406 million, rather than the reported $1,588 million. Total
Cash Sales for the quarter ended June 30, 2001 were $13,373 million, rather
than the reported $13,555 million. Cash Sales for Annuities for the quarter
ended March 31, 2001 were $1,427 million, rather than the reported $1,381
million. Total Cash Sales for the quarter ended March 31, 2001 were $16,975
million rather than the reported $16,929 million.

         In the first quarter 2001 earnings release, Cash Sales for Annuities
were up 4.8%, rather than the reported 1.4%. Total Cash Sales for the same
period were up 1.9%, rather than the reported 1.6%.

         On page 10 of the second quarter 2001 earnings supplement, under
Product Sales, total gross cash sales from all products were down 12%, rather
than the reported 11%. Annuity sales were down 10%, rather than the reported
up 1%.

         On page 9 of the first quarter 2001 earnings supplement, under
Product Sales, the sixth line should read as follows:

         -Annuity sales were up 5%, as variable annuity sales rose slightly
and fixed annuity sales improved significantly.



Item 7. Financial Statements, Pro Forma Financial Information And Exhibits

        (c)   Exhibits

         99.1 Press release of American Express Company announcing its 2001
              third quarter earnings, dated October 22, 2001.

         99.2 2001 Third Quarter Earnings Supplement of American
              Express Company.



<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 hereunto duly authorized.

                                       AMERICAN EXPRESS COMPANY
                                       (REGISTRANT)

                                        By /s/  Stephen P. Norman
                                         Name:  Stephen P. Norman
                                         Title: Secretary

DATE:   October 22, 2001


<PAGE>

                                 EXHIBIT INDEX

Item No.                          Description
--------                          -----------

  99.1       Press release of American Express Company announcing its 2001
             third quarter earnings, dated October 22, 2001.

  99.2       2001 Third Quarter Earnings Supplement of American Express
             Company.

<PAGE>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2 BYLAWS
<SEQUENCE>2
<FILENAME>printer.txt
<DESCRIPTION>EXHIBIT 99.2- EARNINGS SUPPLEMENT
<TEXT>
<Page>
                                                        Exhibit 99.2






                                      2001
                                  THIRD QUARTER
                               EARNINGS SUPPLEMENT








THE ENCLOSED SUMMARY SHOULD BE READ IN CONJUNCTION WITH THE TEXT AND STATISTICAL
TABLES INCLUDED IN AMERICAN EXPRESS COMPANY'S (THE "COMPANY" OR "AXP") THIRD
QUARTER 2001 EARNINGS RELEASE.


--------------------------------------------------------------------------------
THIS SUMMARY CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS WHICH ARE SUBJECT TO
RISKS AND UNCERTAINTIES AND SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE.
IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THESE FORWARD-LOOKING STATEMENTS, INCLUDING THE COMPANY'S FINANCIAL AND OTHER
GOALS, ARE SET FORTH ON PAGE 16 HEREIN AND IN THE COMPANY'S 2000 10-K ANNUAL
REPORT, AND OTHER REPORTS, ON FILE WITH THE SECURITIES AND EXCHANGE COMMISSION.
--------------------------------------------------------------------------------



<Page>


                            AMERICAN EXPRESS COMPANY
                               THIRD QUARTER 2001
                                   HIGHLIGHTS


-  Third quarter diluted EPS declined 59%, net revenue (managed basis) decreased
   1%, and ROE was 14%. Results for the quarter were negatively impacted by
   $98MM ($65MM after-tax) due to various costs related to the terrorist attacks
   on September 11, 2001, as well as their impact on an already weakened economy
   and equity markets. In addition, the quarter includes a previously announced
   restructuring charge of $352MM ($232MM after-tax). Excluding the September
   11th related costs and the restructuring charge, diluted EPS declined 17%,
   and ROE was 17%.

-  Compared with the third quarter of 2000:

   - Worldwide billed business declined 3% (down 2% excluding foreign exchange
     translation). Prior to September, worldwide billed business was up
     approximately 2%;
   - TRS' worldwide lending balances on a managed asset basis of $35.0B were up
     18%;
   - Worldwide cards in force increased 9%, up 4.5MM from last year. In the
     third quarter, 600K net new cards were added; and,
   - AEFA assets owned, managed and administered of $234B were 20% lower than
     last year reflecting substantial market depreciation since 3Q '00.

-  American Express expanded its products and services during the quarter as it:

   - Launched/announced several new proprietary card products and services:
     -- The American Express Team New Zealand Credit Card, a co-branded card
        through which AXP will pay a percentage of spending to Team New Zealand
        to support the next defense of the Americas Cup;
     -- The American Express Platinum Card in India;
     -- The first smart credit card, Blue from American Express, in Australia;
     -- Travel Delay Protection, a new service offered to consumer and small
        business cardmembers that will pay for certain lodging expenses in the
        event of a missed connection, delayed flight departure, flight
        cancellation or denied boarding; and,
     -- A new option for U.S. MEMBERSHIP REWARDS and Hilton HHonors enrollees
        who can now earn both HHonors points and MEMBERSHIP REWARDS bonus points
        for the same stay at U.S. HHonors hotels.

   - Launched/announced several new network card partnerships/products:
     -- The AMP Credit Card in New Zealand;
     -- The Unibanca American Express Card in Venezuela;
     -- The Credomatic American Express Card in Panama;
     -- Capital One American Express Cards in the UK;
     -- The Dah Sing UFO American Express Card in Hong Kong; and,
     -- A partnership with Union Bank in Pakistan, transferring existing AXP
        Cards and merchant relationships to the bank.

   - Significantly increased merchant coverage in Japan through an agreement
     with JCB, Japan's largest card issuer and merchant acquirer, and are now
     expanding that partnership to Mexico, India, Australia, New Zealand and
     Canada.

   - Unveiled three products in corporate travel management:
     -- TravelBahn, a custom-built, high-speed data network connecting travel
        counselors' desktops to the tools needed to make travel reservations;
     -- Custom Information Gateway, which integrates proprietary databases and
        web-based tools into a highly-tailored customer services process; and
     -- American Express Deal Power, a tool that puts the travel manager in
        charge of integrated supplier negotiations through dynamic point-of-sale
        tools.

   - Formed a partnership between American Express Property Casualty companies
     and Costco Insurance Agency Inc., a wholly owned subsidiary of Costco
     Wholesale Corporation, to offer auto and homeowners insurance to Costco
     members in 22 states.


                                       1
<Page>

                            AMERICAN EXPRESS COMPANY
                               THIRD QUARTER 2001
                               HIGHLIGHTS (CONT'D)


   - Introduced new products at American Express Financial Advisors:

     -- The American Express Retirement Advisor Advantage Variable Annuity,
        issued by IDS Life Insurance Company, providing added security, asset
        rebalancing and new death benefit options; and,

     -- Two new international equity mutual funds:

        - AXP Partners International Aggressive Growth Fund, co-subadvised by
          American Century Investment Management and Liberty Wagner Asset
          Management L.P.; and,
        - AXP Partners International Select Value Fund, subadvised by Alliance
          Capital Management L.P.

   - Enhanced our Corporate Purchasing Card and Corporate E-Payments services in
     Europe, Asia and Latin America to provide flexible payment solutions for
     billing, invoicing, authentication, authorization, payment terms,
     reconciliation, receivables and international payments.


- Additional progress was made in broadening relationships with existing AXP
   customers as:

   - Approximately 30% of new AEFA clients came from the cardmember base; and


   - AEFA-manufactured investment certificates sold by AEB to its international
     clients continued to grow.


                                       2
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                                  CONSOLIDATED
                                   (UNAUDITED)


<Table>
<Caption>
(millions, except per share amounts)                   Quarters Ended               Percentage
                                                        September 30,                Inc/(Dec)
                                             ---------------------------------    ---------------
                                                   2001              2000
                                                   ----              ----
<S>                                          <C>                    <C>           <C>
CONSOLIDATED REVENUES:
      Net (managed basis)                        $5,478             $5,554              (1)%
                                                 ======             ======
      GAAP reporting basis                       $5,724             $5,981              (4)
                                                 ======             ======

NET INCOME:
      Reported                                     $298               $737             (60)
      Restructuring charge                          232                  -               -
      September 11th items                           65                  -               -
                                                   ----               ----
      Adjusted net income                          $595               $737             (19)
                                                   ====               ====

EPS:
      Reported -- Basic                           $0.23              $0.56             (59)
                                                  =====              =====
      Reported -- Diluted                         $0.22              $0.54             (59)
                                                  =====              =====

      Adjusted -- Diluted                         $0.45              $0.54             (17)
                                                  =====              =====
</Table>

-    Results reflect the negative effect of various items related to the
     terrorist attacks on September 11th and a previously announced
     restructuring charge due to the acceleration of several major reengineering
     initiatives that were planned for 2002.

     -   Excluding the effect of these items, net income would have been $595MM,
         19% lower than last year and diluted EPS would have been $0.45, 17%
         lower, reflecting weak economic and market conditions which
         deteriorated further after September 11th.

     -   The $98MM ($65MM after-tax) of one-time costs and business
         interruption losses related to the September 11th terrorist attacks
         include provisions related to credit exposures to travel industry
         service establishments, insurance claims, and waived finance charges
         and late fees.

         --   The Company also incurred costs of approximately $42MM since
              September 11th, which are expected to be covered by insurance
              and, consequently, did not impact the quarterly results.
              These include the cost of duplicate facilities and equipment
              associated with the relocation of offices in lower
              Manhattan and certain other business recovery expenses. Costs
              associated with the damage to the Company's offices, extra
              operating expenses and business interruption losses are still
              being evaluated. The Company expects that a substantial portion
              of such costs and losses will be covered by insurance.

     -   The restructuring charge of $352MM ($232MM after-tax) includes $184MM
         for severance relating to the elimination of approximately 6,100 jobs,
         and $168MM of other charges relating to the exit of certain locations
         and business lines. The expense savings for 2002 resulting from these
         initiatives is expected to be approximately $325MM, a portion of which
         will flow through to earnings in the form of improved operating expense
         margins. The rest is expected to be reinvested back into business areas
         with high-growth potential. These charges are further discussed within
         each operating segment's overview. The charge, estimated cost savings
         and employee reductions by segment are as follows:

<Table>
<Caption>
                                   Restructuring Charge                                   Cost Savings
                               ------------------------------      Employee         -----------------------------
                                 Pretax          After-tax        Reductions            2002              2003
                               -----------     -------------    ---------------     -----------       -----------
        <S>                    <C>              <C>             <C>                 <C>               <C>
        TRS                       $195              $127             4,700              $250              $260
        AEFA                        62                41               900                40                50
        AEB                         84                57               400                25                35
        Corporate &
         Other                      11                 7               100                10                15
                                  ----              ----              ----              ----              ----
           Total                  $352              $232             6,100              $325              $360
                                  ====              ====             =====              ====              ====
</Table>

         --   The above reduction in force is in addition to approximately 1,600
              positions, which have been or are in the process of being
              eliminated through reengineering activities initiated in the first
              half of this year. These activities in addition to other
              reengineering programs have generated realized savings in
              excess of $700MM during the first nine months of the year.


                                       3
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                              CONSOLIDATED (CONT'D)
                                   (UNAUDITED)

-    CONSOLIDATED REVENUES: Net revenues declined due to lower billed business
     volumes, lower spreads on AEFA's investment portfolio, weaker travel
     revenues, as well as lower management and distribution fees. These items
     were partially offset by an increase in cards in force, larger loan
     balances and greater insurance premiums.


-    CONSOLIDATED EXPENSES: Rose due to the special items mentioned above,
     larger provisions for losses and higher operating expenses. These increases
     were partially offset by lower marketing costs, a decline in human
     resource expenses, and other reengineering activities and expense control
     initiatives.


-    SHARE REPURCHASES: There were no share repurchases during 3Q '01; since the
     inception of repurchase programs in September 1994, 357.2MM shares have
     been acquired. The decision to substantially reduce share repurchases
     during the second half of 2001 was previously announced as a result of the
     negative capital generation impact of the second quarter charges related to
     AEFA's investment portfolio.

<Table>
<Caption>
                                                                        Millions of Shares
                                                              --------------------------------------
     <S>                                                      <C>            <C>             <C>
     -   AVERAGE SHARES:                                      3Q'01          2Q'01            3Q'00
                                                              -----          -----            -----
         Basic                                                1,324          1,321            1,326
                                                              =====          =====            =====
         Diluted                                              1,335          1,336            1,361
                                                              =====          =====            =====
     -   ACTUAL SHARES:
         Shares outstanding --  beginning of period           1,324          1,326            1,333
         Repurchase of common shares                              -             (5)              (5)
         Net settlements -- 3rd party share
          purchase agreements                                    11              1                -
         Employee benefit plans, compensation and other           1              2                1
                                                              -----          -----            -----
         Shares outstanding -- end of period                  1,336          1,324            1,329
                                                              =====          =====            =====
</Table>

                               CORPORATE AND OTHER

-    The net expense of $52MM in 3Q '01 compared with $46MM in 3Q '00 and 2Q
     '01. Included in the 3Q '01 results are $11MM ($7MM after-tax) of the
     previously discussed restructuring charges.


                                       4
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                             TRAVEL RELATED SERVICES
(preliminary)
                              STATEMENTS OF INCOME
                           (UNAUDITED, MANAGED BASIS)

<Table>
<Caption>
                                                        Quarters Ended              Percentage
(millions)                                               September 30,               Inc/(Dec)
                                                 ------------------------------    ------------
                                                     2001               2000
                                                     ----               ----
<S>                                              <C>                  <C>          <C>
Net revenues:
     Discount revenue                              $1,870             $1,963           (5)%
     Net card fees                                    423                420            1
     Lending:
          Finance charge revenue                    1,187              1,052           13
          Interest expense                            358                429          (17)
                                                    -----              -----
               Net finance charge revenue             829                623           33
     Travel commissions and fees                      358                433          (17)
     TC investment income                             103                103            -
     Other revenues                                   883                858            3
                                                    -----              -----
          Total net revenues                        4,466              4,400            2
                                                    -----              -----
Expenses:
     Marketing and promotion                          298                358          (17)
     Provision for losses and claims:
          Charge card                                 284                273            4
          Lending                                     573                386           48
          Other                                        34                 29           21
                                                    -----              -----
               Total                                  891                688           30
                                                    -----              -----
     Charge card interest expense                     365                362            1
     Human resources                                  987              1,017           (3)
     Other operating expenses                       1,335              1,254            6
     Restructuring charge                             195                  -            -
     Disaster recovery charge                          79                  -            -
                                                    -----              -----
          Total expenses                            4,150              3,679           13
                                                    -----              -----
Pretax income                                         316                721          (56)
Income tax provision                                   68                214          (68)
                                                    -----              -----
Net income                                           $248               $507          (51)
                                                    =====              =====
</Table>

Note:  Unless indicated otherwise, the following discussion addresses the
       "managed basis" Statements of Income. The GAAP Statements of Income are
       also included in the Company's Earnings Release.

-    Net income declined 51% reflecting the effect of the restructuring charge
     and the costs directly related to the 9/11 terrorist attacks, as well as
     weak economic conditions which deteriorated further after 9/11.

     -   Excluding these costs and the restructuring charge, net income
         declined 16%.

-    Net revenues rose 2% from increased cards in force and growth in cardmember
     loans outstanding, which was partially offset by lower discount revenue and
     travel commissions and fees, resulting from the terrorist attacks of 9/11
     and continued weakness in the economy.

-    The higher expenses reflect the previously mentioned restructuring and
     disaster recovery charges, as well as greater provisions for losses and
     increased operating costs, which were partially offset by reduced marketing
     and promotion costs, lower human resource expenses and expense control
     initiatives.

     -   TRS recorded a restructuring charge of $195MM ($127MM after-tax)
         in the quarter. The largest component of this charge is $128MM
         in severance costs for the elimination of approximately 4,700
         jobs. The majority of these eliminations relate to accelerating the
         transition of business travel operations to the Internet, introducing
         new technology and consolidating facilities to allow for the further
         reduction of staffing levels in light of slower travel sales, primarily
         in the U.S. The severance also reflects the relocation or outsourcing
         of certain finance, operations, customer support and technology
         functions to lower-cost overseas locations and moving certain employee
         processing and service functions, including Human Resources processes,
         expense report processing and employee travel bookings, to the
         Internet. The remaining charge of $67MM is primarily related to lease
         and equipment abandonment costs.

     -   The disaster recovery charge includes provisions related to credit
         exposures to travel industry service establishments and insurance
         claims, but excludes approximately $8MM of waived finance charges
         and late fees.


                                       5
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                        TRAVEL RELATED SERVICES (CONT'D)

-    On a GAAP reporting basis, TRS recognized pretax gains of $29MM ($19MM
     after-tax) in 3Q '01 and $26MM ($17MM after-tax) in 3Q '00 related to the
     securitization of $0.7B and $0.8B of U.S. Lending receivables,
     respectively. In both periods, these gains were offset by expenses related
     to card acquisition initiatives and, therefore, had no material impact on
     net income or total expenses in either period.

     For purposes of the above "managed basis" Statements of Income, which
     present TRS' results as if there had been no securitizations, such gains
     (reported on the GAAP Statements of Income as a $15MM reduction in the
     Lending Provision for Losses in both periods and increases in Other
     Revenues and Lending Interest Expense) and corresponding changes in
     Marketing and Promotion and Other Operating Expenses have been eliminated.

-    The pretax margin was 7.1% in 3Q '01, down from 16.4% last year due to the
     effect of weaker revenue conditions and the special charges this year.

-    The effective tax rate was 22% in 3Q '01 versus 29% in 2Q '01 and 30% in 3Q
     '00. The decline this quarter reflects the relatively higher Travelers
     Cheque contribution created by the special charges and weaker revenue
     conditions.


                                       6
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                        TRAVEL RELATED SERVICES (CONT'D)

-     DISCOUNT REVENUE: Lower billed business and a lower discount rate yielded
      a 5% decrease in discount revenue.
      -  The average discount rate in 3Q '01 and 2Q '01 was 2.67% versus 2.70%
         in 3Q '00. The decline from last year reflects the cumulative impact
         of stronger than average growth in the lower rate retail and other
         "everyday spend" merchant categories (e.g., supermarkets, discounters,
         etc.), as well as significantly weaker T&E spending within Corporate
         Services during the quarter.
         --  We believe the AXP value proposition is strong. However, continued
             changes in the mix of business, the continued shift to electronic
             data capture, volume related pricing discounts, and selective
             repricing initiatives will probably result in some rate erosion
             over time.

<Table>
<Caption>
                                                                        Quarters Ended              Percentage
                                                                         September 30,              Inc/(Dec)
                                                                ------------------------------    -------------
                                                                    2001               2000
                                                                    ----               ----
        <S>                                                     <C>                   <C>         <C>
        Card billed business (billions):
             United States                                         $54.4              $56.2             (3)%
             Outside the United States                              18.0               18.6             (3)
                                                                   -----              -----
             Total                                                 $72.4              $74.8             (3)
                                                                   =====              =====

        Cards in force (millions):
             United States                                          34.7               32.9              6
             Outside the United States                              20.2               17.5             15
                                                                    ----               ----
             Total                                                  54.9               50.4              9
                                                                    ====               ====

        Basic cards in force (millions):
             United States                                          26.9               25.8              4
             Outside the United States                              15.4               13.4             15
                                                                    ----               ----
             Total                                                  42.3               39.2              8
                                                                    ====               ====

        Spending per basic card in force (dollars) (a):
             United States                                        $2,019             $2,198             (8)
             Outside the United States                            $1,422             $1,641            (13)
             Total                                                $1,846             $2,041            (10)
</Table>

             (a) Proprietary card activity only.

      -  BILLED BUSINESS: The 3% decrease in billed business resulted from lower
         spending per basic cardmember worldwide, which was partially offset by
         growth in cards in force. The lower cardmember spending reflects the
         continuation of generally weaker economic conditions during the
         quarter, as well as a significantly lower level of spending,
         particularly within the travel related categories, subsequent to the
         9/11 terrorist attacks.
         --  U.S. billed business decreased 3% reflecting 3% growth within the
             consumer card business on 11% higher transaction volume, a slight
             decrease within small business services and a 19% decline within
             Corporate Services.
             -  Spending per basic card in force declined 8% reflecting the
                economic and industry factors cited above and the dilutive
                effect of multiple consecutive quarters of strong card growth.
         -- Excluding the impact of foreign exchange translation:
             -   Total billed business outside the U.S. was flat on slight
                 growth in Europe and Asia, offset by mid-single digit declines
                 in Canada and Latin America.
             -   Spending per proprietary basic card in force outside the U.S.
                 declined 10% reflecting the same factors present within the
                 U.S.
         --  Network partnership and Purchasing Card volumes sustained their
             stronger growth levels, in excess of the consolidated worldwide
             billed business growth rate.
         --  Non-T&E related volume categories continued to grow, but were
             offset by lower travel-related volumes. During the first 8 months
             of 2001, non-T&E related volumes in the U.S. represented
             approximately 57% of total billed business and T&E related volumes
             were 43%. U.S. non-T&E related volumes were up 10% during the
             first two months of the third quarter, but flat during September.
             U.S. T&E related volumes were down 7% during the first two months
             and declined 34% in September.
         --  Airline related volume, which represented approximately 17% of
             U.S. billed business during the first eight months of 2001,
             declined approximately 28% as both the average airline charge and
             transaction volume were down double-digits. During September,
             airline volumes were down approximately 50%.
      -  CARDS IN FORCE worldwide rose 9% versus last year.
         --  U.S. card acquisitions during the quarter (100K net new cards
             added) reflect more selective consumer card and small business
             services activities in light of economic conditions.
         --  Outside the United States, 500K cards in force were added during
             the quarter on continued proprietary card and network card growth.


                                       7
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                        TRAVEL RELATED SERVICES (CONT'D)

-     NON-AMEX BRANDED STATISTICS: Total cards in force and billed business
      exclude activities on Non-Amex Branded cards (Visa and Eurocards) issued
      in connection with joint venture activities. These are reported as
      separate line items within TRS' selected statistical information.

<Table>
<Caption>
                                               Quarters Ended            Percentage
                                               September 30,              Inc/(Dec)
                                            -------------------------   -------------
                                              2001             2000
                                              ----             ----
     <S>                                    <C>                <C>      <C>
     Cards in force (millions)                 0.7              0.6            6%
     Billed business (billions)               $0.9             $0.8           10
</Table>

-     NET CARD FEES: Rose slightly as the increase in cards in force was offset
      by the mix shift toward lower and no fee products. The average fee per
      card in force of $34 in 3Q '01 declined from $36 in 3Q '00 and was flat
      with 2Q '01.

-     NET FINANCE CHARGE REVENUE:  Rose 33% on 20% growth in average worldwide
      lending balances.

      -  The yield on the U.S. portfolio rose to 8.8% in 3Q '01 from 7.8% in
         3Q '00 and 8.6% in 2Q '01 as a decrease in the proportion of the
         portfolio on introductory rates and the benefit of lower funding costs,
         which lag in their effect on finance charge revenue, were partially
         offset by the evolving mix of products toward more lower-rate
         offerings.

-     TRAVEL COMMISSIONS AND FEES: Declined 17% on a 28% contraction in travel
      sales due to the effects of the terrorist attacks on 9/11 and the
      previously existing weaker corporate travel environment. Travel sales
      declined 35% during September. The revenue earned per dollar of sales
      increased (9.2% in 3Q '01 versus 8.7% in 2Q '01 and 8.0% in 3Q '00),
      reflecting new fees related to certain client services, which were
      partially offset by continued efforts by airlines to reduce distribution
      costs and by corporate clients to contain travel and entertainment
      expenses.

-     TC INVESTMENT INCOME: Was flat as a higher average investment was offset
      by a decline in the pretax yield. TC sales declined 5% in the quarter
      and 17% in September.

-     OTHER REVENUES: Increased 3% due to higher card-related fees and larger
      insurance premiums.

-     MARKETING AND PROMOTION EXPENSES: Decreased 17% as we rationalized certain
      marketing efforts in light of the weaker business environment.

-     CHARGE CARD INTEREST EXPENSE: Was up 1% due to a slightly higher effective
      cost of funds offset by lower billed business volumes.

-     HUMAN RESOURCE EXPENSES: Decreased 3% versus last year as a result of a
      lower average number of employees and lower levels of incentive
      compensation.

      -  The employee count at 9/01 of 74,500 was up approximately 200 versus
         last year primarily due to increased global technology business demands
         and the substitution of contract programmers with full-time employees.
         In the quarter, the number of employees declined by approximately 1,000
         primarily due to reengineering initiatives.

-     OTHER OPERATING EXPENSES: Were up 6% as higher costs related to business
      growth, cardmember loyalty programs, professional fees for outsourcing
      activities and various business building initiatives were partially
      offset by reengineering activities and cost containment efforts.


                                       8
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                        TRAVEL RELATED SERVICES (CONT'D)

-     CREDIT QUALITY:

      -  As a result of the weaker economy, overall credit quality deteriorated
         modestly in the quarter, but remained at relatively attractive levels.
         While specific quantification of the impact is difficult and
         subjective, the deterioration during the quarter appears to reflect
         some short-term impact on customers from the events of 9/11.

      -  The provision for losses on charge card products rose 4% due to the
         higher past due and write-off levels.

      -  The lending provision for losses was 48% above last year on growth in
         outstanding loans and the weaker credit environment.

      -  Reserve coverage ratios at more than 100% of past due balances remained
         strong.

      -  WORLDWIDE CHARGE CARD:

         --  The write-off rate increased from the historically low levels
             achieved last year. Past due rates also rose versus last year and
             last quarter. The increases partially reflect economic conditions,
             but also the impact of slower volume growth and a lower receivable
             base on the calculation.

<Table>
<Caption>
                                                                                  9/01           6/01           9/00
                                                                             -----------     ----------     ---------
             <S>                                                             <C>             <C>            <C>
             Loss ratio, net of recoveries                                       0.45%          0.42%          0.37%
             90 days past due as a % of receivables                               3.0%           2.9%           2.3%
</Table>

         -- Reserve coverage of past due accounts remained strong.

<Table>
<Caption>
                                                                                  9/01           6/01           9/00
                                                                             -----------     ----------     ---------
             <S>                                                             <C>             <C>            <C>
             Reserves (MM)                                                     $1,026         $1,034           $987
             % of receivables                                                     4.1%           4.0%           3.5%
             % of past due accounts                                               136%           138%           152%
</Table>

      -  U.S. LENDING:

         --  The write-off rate decreased from last quarter but increased versus
             last year. The past due rate rose versus last year and last
             quarter.

<Table>
<Caption>
                                                                                  9/01           6/01            9/00
                                                                             -----------     ----------     ---------
             <S>                                                             <C>             <C>            <C>
             Write-off rate, net of recoveries                                    5.6%          5.7%            4.3%
             30 days past due as a % of loans                                     3.2%          2.9%            2.6%
</Table>

         -- The lending reserve balance increased during the quarter.

<Table>
<Caption>
                                                                                  9/01           6/01            9/00
                                                                             -----------     ----------     ---------
             <S>                                                             <C>             <C>            <C>
             Reserves (MM)                                                     $1,018           $959            $731
             % of total loans                                                     3.3%           3.1%            2.7%
             % of past due accounts                                               101%           107%            103%
</Table>


                                       9
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                       AMERICAN EXPRESS FINANCIAL ADVISORS

(preliminary)                  STATEMENTS OF INCOME
                                   (UNAUDITED)

<Table>
<Caption>
(millions)                                                  Quarters Ended            Percentage
                                                             September 30,             Inc/(Dec)
                                                      -------------------------      -------------
                                                         2001             2000
                                                         ----             ----
<S>                                                   <C>                <C>         <C>
Revenues:
     Investment income                                   $490             $582           (16)%
     Management and distribution fees                     595              700           (15)
     Other revenues                                       307              258            18
                                                        -----            -----
          Total revenues                                1,392            1,540           (10)
     Provision for losses and benefits:
          Annuities                                       242              253            (5)
          Insurance                                       171              146            17
          Investment certificates                          71               89           (20)
                                                        -----            -----
               Total                                      484              488            (1)
                                                        -----            -----
          Total net revenues                              908            1,052           (14)
                                                        -----            -----
Expenses:
     Human resources                                      469              527           (11)
     Other operating expenses                             172              138            24
     Restructuring charge                                  62                -             -
     Disaster recovery charge                              11                -             -
                                                        -----            -----
          Total expenses                                  714              665             7
                                                        -----            -----
Pretax income                                             194              387           (50)
Income tax provision                                       49              118           (58)
                                                        -----            -----
Net income                                               $145             $269           (46)
                                                        =====            =====
</Table>

-    Net income declined 46% reflecting the effect of the restructuring, the
     9/11 related charges and the continuing effect of the weak economy and
     financial markets, which were exacerbated by the terrorist attacks on
     9/11.

     -   AEFA recorded a restructuring charge of $62MM ($41MM after-tax) during
         the quarter. This charge primarily reflects office lease and
         equipment abandonment costs and severance for the elimination of
         approximately 900 jobs as we optimize the client service organization
         and field force leadership structure, and relocate and consolidate
         finance and technology functions.
     -   Also included is an $11MM disaster recovery charge for costs related to
         life insurance claims by clients impacted by the terrorist attacks.
     -   Excluding these charges, net income declined 28%.

-    Net revenues declined 14% reflecting:
     -   Lower spreads on investment portfolio products, mostly reflecting the
         impact of the portfolio repositioning activities discussed as part of
         our 2Q '01 results;
     -   Reduced management fees from lower average managed asset levels;
     -   A decrease in distribution fees from weaker mutual fund sales levels;
         partially offset by higher insurance premiums.

-    The substantial pretax margin decline reflects the relatively weak revenue
     environment and the negative impact of the charges discussed above.

-    The effective tax rate was 25.2% in 3Q '01, versus 30.4% in 3Q '00. The
     decline reflects the relatively greater impact this quarter of tax credits
     from affordable housing project investments due to the substantially lower
     level of pretax income.

-    ASSETS OWNED, MANAGED AND ADMINISTERED:

<Table>
<Caption>
                                                                                       Percentage
     (billions)                                                 September 30,           Inc/(Dec)
                                                        --------------------------    ------------
                                                            2001             2000
                                                            ----             ----
     <S>                                                <C>                <C>        <C>
     Assets owned (excluding separate accounts)            $42.5            $40.6            5%
     Separate account assets                                24.3             36.6          (34)
     Assets managed                                        139.0            178.7          (22)
     Assets administered                                    28.6             38.0          (25)
                                                          ------           ------
                    Total                                 $234.4           $293.9          (20)
                                                          ======           ======
</Table>


                                       10
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                  AMERICAN EXPRESS FINANCIAL ADVISORS (CONT'D)

-    ASSET QUALITY:

     -   Except for modest deterioration in the high yield portfolio and
         rated structured investments, asset quality remains strong.
     -   Non-performing assets relative to invested assets were 0.1% and were
         344% covered by reserves, including those related to the impairment
         of high-yield securities.
     -   High-yield investments totaled $1.4B at 9/30/01, down from $2.7B at
         6/30/01, and represented approximately 4% of AEFA's portfolio. This
         compares to 8% as of 6/30. While most of the portfolio repositioning
         sales were completed prior to 9/11, the impact of the events on the
         market disrupted our ability to fully complete the process,
         particularly the reinvestment of proceeds.  Going forward, we plan to
         work toward a level that's more in line with industry averages of
         approximately 7%
         --   In October, the Company completed a transaction which securitized
              a large portion of its rated CDO securities. The transaction has
              the following consequences:
              -    Pools the performance of 44 separate
                   CDO securities allowing recognition of the investment return
                   related to the overall performance of the portfolio. The
                   ability to evaluate future cash flows at the portfolio
                   level, rather than on a security-by-security basis, should
                   increase the predictability of future earnings; and,
              -    Monetizes a small portion of the CDO securities by selling
                   notes in this structure to third-party investors.
     -   The SFAS No. 115 related mark-to-market adjustment on the portfolio
         (reported in assets pretax) was appreciation of $717MM at 9/01 and
         $182MM at 6/01 versus depreciation of ($808MM) at 9/00.

-    INVESTMENT INCOME:

     -   Gross investment income decreased due to a lower average yield, mostly
         due to the repositioning of the portfolio. The effect of this was
         amplified by our inability to reinvest in appropriate quality high
         yield bonds during September. In addition, there is a larger decrease
         this year in the value of options hedging outstanding stock market
         certificates, which was offset in the certificate provision. Also
         included is a modest loss related to the securitization of CDO's and
         the mark-to-market on the high yield bonds still held for sale at the
         end of September.
     -   Average invested assets of $33.9B (excluding unrealized
         appreciation/depreciation) rose 3% versus $32.9B in 3Q '00.
     -   The average yield on invested assets was 6.7% versus 7.1% in 3Q '00.
     -   Underlying spreads within the insurance and annuity products were down
         versus last year and last quarter; spreads for certificates were up
         versus both periods.

-    MANAGEMENT AND DISTRIBUTION FEES: The decrease of 15% was due to lower
     average assets under management and weaker mutual fund sales, reflecting
     the continued negative impact of weak equity market conditions.

     -  ASSETS MANAGED:

<Table>
<Caption>
                                                                                         Percentage
       (billions)                                           September 30,                 Inc/(Dec)
                                                       ----------------------------    ---------------
                                                            2001              2000
                                                            ----              ----
       <S>                                             <C>                  <C>        <C>
       Assets managed for individuals                      $91.2            $122.0           (25)%
       Assets managed for institutions                      47.8              56.7           (16)
       Separate account assets                              24.3              36.6           (34)
                                                          ------            ------
                      Total                               $163.3            $215.3           (24)
                                                          ======            ======
</Table>

       -- The decline in managed assets since 9/00 resulted from $56.1B of
          market depreciation, partially reflecting the 28% decline in the S&P
          500 during the past year, offset in part by $4.1B of net new money.

       -- The $23.9B decrease in managed assets during 3Q '01 resulted from
          market depreciation of $20.2B and net outflows of $3.7B,
          predominately within institutional and AXP related activities.

           -   Within our retail related activities outflows and redemption
               levels held steady while new money inflows decreased as investor
               activities slowed, particularly in September.

           -   Institutional related activities experienced outflows due to the
               loss of accounts, withdrawals on existing accounts and reduced
               AXP related holdings reflecting the seasonal reduction in the TC
               portfolio and a TRS liquidity oriented portfolio.


                                       11
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                  AMERICAN EXPRESS FINANCIAL ADVISORS (CONT'D)


-    PRODUCT SALES:
     -   Total gross cash sales from all products were down 33% versus 3Q '00 as
         generally weak sales conditions deteriorated even further during the
         latter part of September.
     -   Mutual fund sales decreased 37% as both proprietary and non-proprietary
         fund sales declined. The largest portion of non-proprietary fund sales
         continued to occur in "wrap" accounts. Within proprietary funds:
         --  Bond fund sales grew; sales of equity and money market funds
             declined.
         --  Redemption rates held relatively steady and continued to compare
             favorably with industry levels.
     -   Annuity sales decreased 11%, as growth in fixed annuity sales was
         offset by a decline in variable annuity sales.
     -   Sales of insurance products fell 9% reflecting lower sales of life
         products, partially offset by higher property-casualty sales, in part
         due to sales through Costco.
     -   Certificate sales increased 8% reflecting strength in both advisor
         sales and sales of certificates sold to clients outside the U.S.
         through a joint venture between AEFA and AEB.
     -   Institutional sales declined 75% versus a relatively strong third
         quarter last year, reflecting both lower new sales and lower additional
         contributions.
     -   Other sales increased 37% due to additional contributions from
         existing 401(k) plan sponsors, as well as growth in our limited
         partnership sales and wealth management account activities.
     -   Advisor product sales generated through financial planning and advice
         services were 72% of total sales in 3Q '01 versus 69% in 3Q '00.

-    OTHER REVENUES:  Were up 18% on higher life and property-casualty insurance
     -   Financial planning and advice services fees of $23.1MM fell 11% versus
         3Q '00 reflecting the reduction in the advisor force and the impact of
         the weaker environment. Fees were down in excess of 25% post-9/11.

-    PROVISIONS FOR LOSSES AND BENEFITS: Annuity product provisions decreased
     due to a smaller inforce level and a lower accrual rate. Insurance
     provisions rose due to higher inforce levels, partially offset by lower
     accrual rates. Certificate provisions decreased as higher inforce levels
     were offset by lower accrual rates and the effect on the stock market
     certificate product of greater depreciation this year in the S&P 500.

-    HUMAN RESOURCES: Expenses declined 11% reflecting lower field force
     compensation-related expenses due to the decline in advisors and the impact
     of lower volumes on advisor compensation, as well as the benefits of
     reengineering and cost containment initiatives within the home office where
     employees were down 12% versus 9/30/00.
     -   TOTAL ADVISOR FORCE:  11,385 at 9/01; down 752 advisors, or (6)%,
         versus 9/00 and down 261 advisors versus 6/01.
         --  The decrease in advisors versus 6/01 reflects reduced recruiting
             we worked to improve the advisor platform dynamics, and higher
             termination rates due to the weaker environment and proactive
             efforts to weed out unproductive advisors.
             -  Veteran advisor retention rates remain strong.
         --  In light of current challenging market conditions, we expect to
             continue to carefully manage new advisor additions in coming
             quarters to ensure overall field force costs are appropriately
             controlled and advisor production is maximized.
         --  Total production, advisor productivity and client acquisistions
             were down versus last year reflecting the more difficult selling
             environment.
             -  The total number of clients was up 4% and accounts per client
                were flat. Client retention exceeded 95%.

-    OTHER OPERATING EXPENSES: The increase reflects a relatively low level
     of expenses last year. Expenses declined 1% versus 2Q '01 reflecting the
     success of reengineering activities and continuing efforts to control core
     operating expenses.


                                       12
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                              AMERICAN EXPRESS BANK

(preliminary)                   STATEMENTS OF INCOME
                                   (UNAUDITED)

<Table>
<Caption>
(millions)                                                Quarters Ended               Percentage
                                                           September 30,                Inc/(Dec)
                                                    ----------------------------      --------------
                                                       2001            2000
                                                       ----            ----
<S>                                                 <C>                <C>
Net revenues:
     Interest income                                   $174            $188                 (8)%
     Interest expense                                    98             125                (22)
                                                       ----            ----
           Net interest income                           76              63                 20
     Commissions and fees                                51              54                 (5)
     Foreign exchange income and other revenue           38              29                 30
                                                       ----            ----
           Total net revenues                           165             146                 13
                                                       ----            ----
Expenses:
     Human resources                                     60              65                 (8)
     Other operating expenses                            69              67                  3

     Provision for losses -- ongoing                     14               6                  #
                          -- restructuring related       26               -                  -
                                                       ----            ----
     Total provision                                     40               6                  #
     Restructuring charge                                58               -                  -
                                                       ----            ----
           Total expenses                               227             138                 64
                                                       ----            ----
Pretax (loss)/income                                    (62)              8                  #
Income tax (benefit)/provision                          (19)              1                  #
                                                       ----            ----
Net (loss)/income                                      $(43)             $7                  #
                                                       ====            ====

# Denotes variance in excess of 100%.
</TABLE>

-    AEB recorded a restructuring charge of $84MM ($57MM after-tax) primarily
     reflecting plans to further scale back corporate lending activities in
     parts of Asia, Latin America and Europe. The pretax charge includes $24MM
     of currency translation losses previously recorded in shareholder's equity,
     $29MM of severance benefits for approximately 400 employees and a $26MM
     provision for losses.

-    Excluding the effect of the restructuring charges, net income was
     approximately double last year's amount.

-    Revenues grew 13% as higher net interest income and foreign exchange and
     other revenue was partially offset by lower commissions and fees. AEB's two
     individual oriented businesses continued to grow, despite a more difficult
     market environment, as Private Banking client holdings rose 20% and client
     volumes in Personal Financial Services (PFS) increased 11%. Revenues within
     Corporate Banking declined as we continued to de-emphasize these
     activities.
     - Net interest income rose 20% due to higher consumer loans and lower
       funding costs, partially offset by decreases in Corporate Banking.
     - Commissions and fees were down 5% from lower results in Corporate Banking
       and lower mutual fund fees within our third party activities in the
       Financial Institutions Group, partially offset by higher loan volumes
       in PFS.
     - Foreign exchange income and other revenue increased 30% due to higher
       joint venture earnings, partially offset by lower Corporate Banking
       revenue.

-    Human resource expenses were down reflecting the benefits of a lower
     employee level and reduced costs related to reengineering activities.

-    The ongoing provision for losses increased mostly due to PFS loan growth.

-    AEB remained "well-capitalized".

<Table>
<Caption>
                            9/01          6/01           9/00          Well-Capitalized
                          ----------   -----------    -----------    --------------------
     <S>                  <C>          <C>            <C>            <C>
     Tier 1                  9.9%         10.4%          10.4%                6.0%
     Total                  10.6%         11.1%          11.9%               10.0%
     Leverage Ratio          5.4%          5.8%           5.8%                5.0%
</Table>


                                       13
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                         AMERICAN EXPRESS BANK (CONT'D)
-    EXPOSURES
     - AEB's loans outstanding were $5.6B at 9/01, versus $5.1B at 9/00 and
       $5.5B at 6/01. Activity since 9/00 included a $650MM decrease in
       corporate banking loans and a $1.1B increase in consumer and private
       banking loans, including the transfer of $150MM of collateralized loans
       from Corporate Banking. Compared to 6/01, corporate banking loans
       decreased by $150MM, while consumer and private banking loans increased
       by $200MM. As of 9/01, consumer and private banking loans comprised 55%
       of total loans versus 53% at 6/01 and 39% at 9/00; corporate banking
       loans comprised 22% of total loans versus 24% at 6/01 and 36% at 9/00;
       and financial institution loans comprised 23% of total loans at 9/01 and
       6/01 versus 25% at 9/00.

     - In addition to the loan portfolio, there are other banking activities,
       such as forward contracts, various contingencies and market placements,
       which added approximately $8.0B to the credit exposures at 9/01, $7.6B at
       6/01 and $7.2B at 9/00. Of the $8.0B of additional exposures at 9/01,
       $5.8B were relatively less risky cash and securities related balances.

<Table>
<Caption>
       ($ in billions)                                                        9/30/01
                                                 ------------------------------------------------------------------
                                                                                Net
                                                                            Guarantees                                 6/30/01
                                                             FX and             And                       Total         Total
       Country                                    Loans    Derivatives      Contingents     Other(1)    Exposure(2)   Exposure(2)
       -------                                    -----    -----------      -----------     -----       --------      --------
       <S>                                       <C>       <C>              <C>             <C>         <C>           <C>
       Hong Kong                                   $1.0              -             $0.1      $0.1           $1.2          $1.1
       Indonesia                                      -              -                -         -            0.1           0.1
       Singapore                                    0.5              -              0.1       0.1            0.7           0.6
       Korea                                        0.1              -                -       0.2            0.3           0.5
       Taiwan                                       0.2              -                -       0.1            0.3           0.2
       Japan                                          -              -                -       0.1            0.1           0.1
       Other                                          -              -                -       0.1            0.1           0.2
                                                  -----          -----            -----     -----          -----        ------
           Total Asia/Pacific Region (2)            1.9              -              0.2       0.7            2.9           2.9
                                                  -----          -----            -----     -----          -----        ------

       Chile                                        0.2           $0.1                -       0.1            0.3           0.4
       Brazil                                       0.3              -                -         -            0.4           0.4
       Mexico                                         -              -                -         -            0.1           0.1
       Argentina                                    0.1              -                -         -            0.1           0.1
       Peru                                           -              -                -         -            0.1             -
       Other                                        0.3              -              0.2       0.1            0.7           0.6
                                                  -----          -----            -----     -----          -----        ------
           Total Latin America (2)                  0.9            0.1              0.3       0.3            1.6           1.5
                                                  -----          -----            -----     -----          -----        ------

       India                                        0.3              -              0.1       0.3            0.7           0.7
       Pakistan                                     0.1              -                -       0.1            0.2           0.2
       Other                                        0.1              -              0.1       0.1            0.2           0.2
                                                  -----          -----            -----     -----          -----        ------
           Total Subcontinent (2)                   0.4              -              0.1       0.5            1.1           1.1
                                                  -----          -----            -----     -----          -----        ------

       Egypt                                        0.2              -                -       0.2            0.4           0.4
       Other                                        0.1              -                -         -            0.2           0.2
                                                  -----          -----            -----     -----          -----        ------
           Total Middle East and Africa (2)         0.3              -              0.1       0.2            0.6           0.6
                                                  -----          -----            -----     -----          -----        ------

           Total Europe (2)                         1.6            0.1              0.4       3.0            5.0           4.8

           Total North America (2)                  0.3              -              0.3       1.7            2.3           2.1
                                                  -----          -----            -----     -----          -----        ------

       Total Worldwide (2)                         $5.6           $0.2             $1.5      $6.3          $13.6         $13.1
                                                  =====          =====            =====     =====          =====        ======
</Table>

     (1) Includes cash, placements and securities.
     (2) Individual items may not add to totals due to rounding.
         Note: Includes cross-border and local exposure and does not net local
               funding or liabilities against any local exposure.


                                       14
<Page>

                            AMERICAN EXPRESS COMPANY
                           THIRD QUARTER 2001 OVERVIEW
                         AMERICAN EXPRESS BANK (CONT'D)





-    Total non-performing loans of $133MM were down from $156MM at 9/00 and
     $159MM at 6/01 as a result of decreases within the Corporate Banking
     business. The decreases in both periods are due to loan payments and
     write-offs, mainly in Indonesia, partially offset by net downgrades of the
     risk status of various loans.

-    Other non-performing assets of $2MM at 9/01 and $4MM at 6/01, which
     primarily consisted of other real estate owned, compared with $37MM at 9/00
     which were primarily foreign exchange and derivative contracts. The
     decrease since 9/00 reflects payments/maturities and write-offs, mainly in
     Indonesia.

-    AEB's total reserves at 9/01 of $149MM compared with $130MM at 6/01 and
     $179MM at 9/00 and are allocated as follows:

<Table>
<Caption>
     (millions)                                         9/01        6/01         9/00
                                                     --------    --------     --------
     <S>                                             <C>         <C>          <C>
     Loans                                              $144        $126         $158
     Other Assets, primarily derivatives                   3           3           16
     Other Liabilities                                     2           1            5
                                                        ----        ----         ----
          Total                                         $149        $130         $179
                                                        ====        ====         ====
</Table>

     -   Reserve coverage of non-performing loans of 108% at 9/01 compared with
         79% at 6/01 and 102% at 9/00. Reserve coverage at 9/01 reflects a $26MM
         addition to reserves through the restructuring charge as we scale back
         the Corporate Banking business in certain countries.


-    Management formally reviews the loan portfolio and evaluates credit risk
     throughout the year. This evaluation takes into consideration the financial
     condition of the borrowers, fair market value of collateral, status of
     delinquencies, historical loss experience, industry trends, and the impact
     of current economic conditions. As of September 30, 2001 management
     considers the loss reserve to be appropriate.


                                       15
<Page>

               INFORMATION RELATING TO FORWARD-LOOKING STATEMENTS


This document contains forward-looking statements that are subject to risks and
uncertainties. The words "believe", "expect", "anticipate", "intend", "aim",
"will", "should", and similar expressions are intended to identify these
forward-looking statements. The Company undertakes no obligation to update or
revise any forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements include, but are not
limited to, the following:

Fluctuation in the equity markets, which can affect the amount and types of
investment products sold by AEFA, the market value of its managed assets, and
management and distribution fees received based on those assets; potential
deterioration in the high yield sector and other investment areas, which could
result in further losses in AEFA's investment portfolio; the ability of AEFA to
sell certain high yield investments at expected values and within anticipated
time frames and to maintain its high yield portfolio at certain levels in the
future; developments relating to AEFA's new platform structure for financial
advisors, including the ability to increase advisor productivity, moderate the
growth of new advisors and create efficiencies in the infrastructure; AEFA's
ability to effectively manage the economics in selling a growing volume of
non-proprietary products to clients; investment performance in AEFA's mutual
fund business; the success, timeliness and financial impact, including costs,
cost savings and other benefits, of reengineering initiatives being implemented
or considered by the Company, including cost management, structural and
strategic measures such as vendor, process, facilities and operations
consolidation, outsourcing, relocating certain functions to lower cost overseas
locations, moving internal and external functions to the internet to save costs,
the scale back of corporate lending in certain regions, and planned staff
reductions relating to certain of such reengineering actions; the ability to
control and manage operating, infrastructure, advertising and promotion and
other expenses as business expands or changes, including balancing the need for
longer term investment spending; the Company's ability to recover under its
insurance policies losses resulting from the September 11th terrorist attacks;
consumer and business spending on the Company's travel related services
products, particularly credit and charge cards and growth in card lending
balances, which depend in part on the ability to issue new and enhanced card
products and increase revenues from such products, attract new cardholders,
capture a greater share of existing cardholders' spending, sustain premium
discount rates, increase merchant coverage, retain Cardmembers after low
introductory lending rates have expired, and expand the global network
services business; successfully expanding the Company's on-line and off-line
distribution channels and cross-selling financial, travel, card and other
products and services to its customer base, both in the U.S. and abroad;
effectively leveraging the Company's assets, such as its brand, customers and
international presence, in the Internet environment; investing in and
competing at the leading edge of technology across all businesses; increasing
competition in all of the Company's major businesses; fluctuations in interest
rates, which impacts the Company's borrowing costs, return on lending products
and spreads in the investment and insurance businesses; credit trends and the
rate of bankruptcies, which can affect spending on card products, debt
payments by individual and corporate customers and returns on the Company's
investment portfolios; foreign currency exchange rates; political or economic
instability in certain regions or countries, which could affect commercial
lending activities, among other businesses; legal and regulatory developments,
such as in the areas of consumer privacy and data protection; acquisitions;
and outcomes in litigation. A further description of risks and uncertainties
can be found in the Company's 10-K Annual Report for the fiscal year ending
December 31, 2000 and other reports filed with the SEC.

                                       16

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1 CHARTER
<SEQUENCE>4
<FILENAME>pressrel.txt
<DESCRIPTION>EXHIBIT 99.1- PRESS RELEASE
<TEXT>


                                                           Exhibit 99.1

    News Release     News Release     News Release       News Release


                                                Contact:  Molly Faust
                                                          201/209-5595
                                                          molly.faust@aexp.com

                                                          Michael J. O'Neill
                                                          201/209-5583
                                                          mike.o'neill@aexp.com


FOR IMMEDIATE RELEASE

         New York - October 22, 2001 - AMERICAN EXPRESS COMPANY today reported
third quarter net income of $298 million, down 60 percent from $737 million in
the same period a year ago. Diluted earnings per share were $.22, down 59
percent from a year ago. Net revenues on a managed basis totaled $5.5 billion,
down one percent from $5.6 billion a year ago. The company's return on equity
was 14.2 percent.

         Results for the third quarter were negatively affected by two
significant items: a previously announced restructuring charge of $352 million
pre-tax ($232 million after-tax) and the impacts from the September 11th
terrorist attacks.

         The September 11th events resulted in certain one-time costs and
business interruption losses, including: provisions related to credit
exposures to travel industry service establishments, insurance claims, and
waived finance charges and late fees. The combination of these items totaled
approximately $98 million pre-tax ($65 million after-tax).

         The company also incurred costs of approximately $42 million since
September 11th, which are expected to be covered by insurance. Consequently,
these costs did not impact the quarterly results. These include the cost of
duplicate facilities and equipment associated with the relocation of the
company's offices in lower Manhattan and certain other business recovery
expenses. Costs associated with the damage to the company's offices, extra
operating expenses and business interruption losses are still being evaluated.
The company expects that a substantial portion of such costs and losses will
be covered by insurance.

                                      -1-
<PAGE>

         The third quarter restructuring charge includes severance costs for the
elimination of approximately 6,100 jobs and asset impairment and other costs,
all relating to the consolidation and reorganization of certain business
units, the scale back of corporate lending in certain regions, the migration
of certain processes to lower cost locations, the outsourcing of certain
activities, and the transition of certain processing and service functions to
the Internet. These initiatives are expected to produce expense savings of
approximately $325 million in 2002. A portion of these savings is expected to
flow through to earnings in the form of improved operating expense margins and
the rest is expected to be reinvested back into high-growth areas of the
business.

         In addition to the activities related to the restructuring charge,
the company made strong progress on its global reengineering efforts initiated
in the first half of the year and, as of September 30, had realized savings in
excess of $700 million.

         Net income for the third quarter, adjusted for the restructuring and
one-time costs related to September 11th, was approximately $595 million, down
19 percent. On a similar basis, earnings per share were $.45, down 17 percent.
The company's adjusted return on equity was 16.7 percent.

         "While we were on target to meet prior consensus for third quarter
earnings, the terrorist attacks obviously had a significant impact on the
overall economy and we saw clear evidence of that as consumer spending,
business travel and investment activity slowed after September 11th," said
Kenneth I. Chenault, chairman and chief executive officer, American Express
Company. "In light of the weak economy and financial markets, we are moving
aggressively to lower our operating expenses. The progress we are making on

                                      -2-
<PAGE>
our reengineering initiatives has freed up substantial resources for
investment in our businesses with the strongest growth potential. This, along
with the anticipated benefit of lower interest rates and the strategies in
place to grow our franchise, positions us well to benefit when we see even
a modest improvement in the economy."

         TRAVEL RELATED SERVICES (TRS) reported quarterly net income of $248
million, down 51 percent from $507 million in the third quarter a year ago.
Included in third quarter results are $195 million pre-tax ($127 million
after-tax) of the restructuring charge noted earlier. Also included in the
results are $87 million pre-tax ($57 million after-tax) of one-time costs and
waived fees directly related to the September 11th terrorist attacks.
Excluding these costs and the restructuring charge, TRS' net income would have
been $432 million, down 15 percent from the third quarter last year.

         TRS' net revenues rose two percent, as growth in loans and fee
revenues were partly offset by a three percent decline in billed business and
a 28 percent fall in travel sales. These declines reflect a substantial
decrease in corporate travel and entertainment spending and consumer travel
since September 11th. Prior to September, billed business growth for the
quarter was about two percent as higher consumer and small business spending
offset a decline in corporate travel and entertainment spending. Net finance
charge revenues were higher, due to balance growth and wider net interest
yields. This increase reflects a smaller percentage of loan balances on
introductory rates and the benefit of declining interest rates during the
quarter.
         The provision for losses on the lending portfolios grew as a result
of higher volumes and an increase in U.S. lending write-off rates and

                                      -3-
<PAGE>
delinquencies. Marketing and promotion expenses were lower as TRS scaled back
certain marketing efforts in light of the weaker business environment.
Operating expenses rose, reflecting increased Cardmember loyalty programs and
business volumes. These expenses were partly offset by the benefits of
reengineering and cost-control efforts.

         The above discussion presents TRS results "on a managed basis" as if
there had been no securitization transactions, which conforms to industry
practice. The attached financials present TRS results on both a managed and
reported basis. Net income is the same in both formats.

         On a reported basis, TRS' results included securitization gains of
$29 million pre-tax ($19 million after-tax) and $26 million pre-tax ($17
million after-tax) in the third quarters of 2001 and 2000, respectively. These
gains were offset by expenses related to card acquisition activities and
therefore had no material impact on net income or total expenses.

         AMERICAN EXPRESS FINANCIAL ADVISORS (AEFA) reported quarterly net
income of $145 million, down 46 percent from $269 million in the third quarter
a year ago. Net revenues decreased 14 percent. Included in third quarter
results are $62 million pre-tax ($41 million after-tax) of the restructuring
charge noted earlier and $11 million pre-tax ($8 million after-tax) of
insurance claims directly related to September 11th. Excluding these items,
AEFA's net income would have been $194 million, down 28 percent from last
year.

                                     -4-
<PAGE>
         AEFA results reflect continued weakness in equity markets and
narrower spreads on the investment portfolio. The weakened equity markets led
to significantly lower asset levels and lower sales of investment products. As
a result, management and distribution fees fell 15 percent.

         Operating expenses, excluding the above-mentioned charges, decreased
four percent from a year ago due primarily to lower sales commissions and
continued reengineering and cost-control initiatives.

         As of September 30th, approximately 4 percent of the company's $33
billion investment portfolio consisted of high-yield securities, down from 12
percent a year ago and 8 percent last quarter. The reduction reflects the
activities to date to lower the risk profile of the portfolio and concentrate
on stronger credits.

         AMERICAN EXPRESS BANK (AEB) reported a quarterly net loss of $43
million, compared with $7 million of net income a year ago. Included in third
quarter results are $84 million pre-tax ($57 million after-tax) of the
restructuring charge noted earlier. Excluding these charges, AEB's net income
would have been $15 million, approximately double the earnings recorded in the
same period last year.

         While AEB sustained damage to its premises due to the September 11th
terrorist attacks, the costs are expected to be covered by insurance.
Consequently, these costs did not impact AEB's quarterly results.

         AEB's business results reflect strong performance in Personal
Financial Services and Private Banking. Results also benefited from lower
funding costs and lower operating expenses as a result of AEB's reengineering
efforts. These were offset in part by higher provisions for losses due to
higher Personal Financial Services loan balances, and lower revenue from
Corporate Banking as the company continues to shift its focus to Personal
Financial Services and Private Banking.

                                     -5-
<PAGE>
         CORPORATE AND OTHER reported net expenses of $52 million, compared
with $46 million a year ago. Included in third quarter 2001 results are $11
million pre-tax ($7 million after-tax) of the restructuring charge noted
earlier.

         American Express Company (www.americanexpress.com), founded in 1850,
is a global travel, financial and network services provider.

                                      ***

Note: The 2001 Third Quarter Earnings Supplement will be available today on
the American Express web site at http://ir.americanexpress.com. In addition,
an investor conference call to discuss third quarter earnings results,
operating performance and other topics that may be raised during the
discussion will be held at 5:00 p.m. (ET) today. Live audio of the conference
call will be accessible to the general public on the American Express web site
at http://ir.americanexpress.com. A replay of the conference call also will be
available today at the same web site address.


                                      ***

         THIS DOCUMENT CONTAINS FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO
RISKS AND UNCERTAINTIES. THE WORDS "BELIEVE", "EXPECT", "ANTICIPATE",
"INTEND", "AIM", "WILL", "SHOULD", AND SIMILAR EXPRESSIONS ARE INTENDED TO
IDENTIFY THESE FORWARD-LOOKING STATEMENTS. THE COMPANY UNDERTAKES NO
OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS. FACTORS THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THESE FORWARD-LOOKING
STATEMENTS INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING:

         FLUCTUATION IN THE EQUITY MARKETS, WHICH CAN AFFECT THE AMOUNT AND
TYPES OF INVESTMENT PRODUCTS SOLD BY AEFA, THE MARKET VALUE OF ITS MANAGED
ASSETS, AND MANAGEMENT AND DISTRIBUTION FEES RECEIVED BASED ON THOSE ASSETS;
POTENTIAL DETERIORATION IN THE HIGH-YIELD SECTOR AND OTHER INVESTMENT AREAS,
WHICH COULD RESULT IN FURTHER LOSSES IN AEFA'S INVESTMENT PORTFOLIO; THE
ABILITY OF AEFA TO SELL CERTAIN HIGH-YIELD INVESTMENTS AT EXPECTED VALUES AND
WITHIN ANTICIPATED TIME FRAMES AND TO MAINTAIN ITS HIGH-YIELD PORTFOLIO AT
CERTAIN LEVELS IN THE FUTURE; DEVELOPMENTS RELATING TO AEFA'S NEW PLATFORM

                                     -6-
<PAGE>
STRUCTURE FOR FINANCIAL ADVISORS, INCLUDING THE ABILITY TO INCREASE ADVISOR
PRODUCTIVITY, MODERATE THE GROWTH OF NEW ADVISORS AND CREATE EFFICIENCIES IN
THE INFRASTRUCTURE; AEFA'S ABILITY TO EFFECTIVELY MANAGE THE ECONOMICS IN
SELLING A GROWING VOLUME OF NON-PROPRIETARY PRODUCTS TO CLIENTS; INVESTMENT
PERFORMANCE IN AEFA'S BUSINESSES; THE SUCCESS, TIMELINESS AND FINANCIAL
IMPACT, INCLUDING COSTS, COST SAVINGS AND OTHER BENEFITS, OF REENGINEERING
INITIATIVES BEING IMPLEMENTED OR CONSIDERED BY THE COMPANY, INCLUDING COST
MANAGEMENT, STRUCTURAL AND STRATEGIC MEASURES SUCH AS VENDOR, PROCESS,
FACILITIES AND OPERATIONS CONSOLIDATION, OUTSOURCING, RELOCATING CERTAIN
FUNCTIONS TO LOWER COST OVERSEAS LOCATIONS, MOVING INTERNAL AND EXTERNAL
FUNCTIONS TO THE INTERNET TO SAVE COSTS, THE SCALE BACK OF CORPORATE LENDING
IN CERTAIN REGIONS, AND PLANNED STAFF REDUCTIONS RELATING TO CERTAIN OF SUCH
REENGINEERING ACTIONS; THE ABILITY TO CONTROL AND MANAGE OPERATING,
INFRASTRUCTURE, ADVERTISING AND PROMOTION AND OTHER EXPENSES AS BUSINESS
EXPANDS OR CHANGES, INCLUDING BALANCING THE NEED FOR LONGER TERM INVESTMENT
SPENDING; THE COMPANY'S ABILITY TO RECOVER UNDER ITS INSURANCE POLICIES FOR
LOSSES RESULTING FROM THE SEPTEMBER 11TH TERRORIST ATTACKS; CONSUMER AND
BUSINESS SPENDING ON THE COMPANY'S TRAVEL RELATED SERVICES PRODUCTS,
PARTICULARLY CREDIT AND CHARGE CARDS AND GROWTH IN CARD LENDING BALANCES,
WHICH DEPEND IN PART ON THE ABILITY TO ISSUE NEW AND ENHANCED CARD PRODUCTS
AND INCREASE REVENUES FROM SUCH PRODUCTS, ATTRACT NEW CARDHOLDERS, CAPTURE A
GREATER SHARE OF EXISTING CARDHOLDERS' SPENDING, SUSTAIN PREMIUM DISCOUNT
RATES, INCREASE MERCHANT COVERAGE, RETAIN CARDMEMBERS AFTER LOW INTRODUCTORY
LENDING RATES HAVE EXPIRED, AND EXPAND THE GLOBAL NETWORK SERVICES BUSINESS;
SUCCESSFULLY EXPANDING THE COMPANY'S ON-LINE AND OFF-LINE DISTRIBUTION
CHANNELS AND CROSS-SELLING FINANCIAL, TRAVEL, CARD AND OTHER PRODUCTS AND
SERVICES TO ITS CUSTOMER BASE, BOTH IN THE U.S. AND ABROAD; EFFECTIVELY
LEVERAGING THE COMPANY'S ASSETS, SUCH AS ITS BRAND, CUSTOMERS AND
INTERNATIONAL PRESENCE, IN THE INTERNET ENVIRONMENT; INVESTING IN AND
COMPETING AT THE LEADING EDGE OF TECHNOLOGY ACROSS ALL BUSINESSES; INCREASING
COMPETITION IN ALL OF THE COMPANY'S MAJOR BUSINESSES; FLUCTUATIONS IN INTEREST
RATES, WHICH IMPACTS THE COMPANY'S BORROWING COSTS, RETURN ON LENDING PRODUCTS
AND SPREADS IN THE INVESTMENT AND INSURANCE BUSINESSES; CREDIT TRENDS AND THE
RATE OF BANKRUPTCIES, WHICH CAN AFFECT SPENDING ON CARD PRODUCTS, DEBT
PAYMENTS BY INDIVIDUAL AND CORPORATE CUSTOMERS AND RETURNS ON THE COMPANY'S
INVESTMENT PORTFOLIOS; FOREIGN CURRENCY EXCHANGE RATES; POLITICAL OR ECONOMIC
INSTABILITY IN CERTAIN REGIONS OR COUNTRIES, WHICH COULD AFFECT COMMERCIAL
LENDING ACTIVITIES, AMONG OTHER BUSINESSES; LEGAL AND REGULATORY DEVELOPMENTS,
SUCH AS IN THE AREAS OF CONSUMER PRIVACY AND DATA PROTECTION; ACQUISITIONS;
AND OUTCOMES IN LITIGATION. A FURTHER DESCRIPTION OF RISKS AND UNCERTAINTIES
CAN BE FOUND IN THE COMPANY'S 10-K ANNUAL REPORT FOR THE FISCAL YEAR ENDING
DECEMBER 31, 2000 AND OTHER REPORTS FILED WITH THE SEC.

                                      ###

                                     -7-



<Page>

(Preliminary)                AMERICAN EXPRESS COMPANY
                                FINANCIAL SUMMARY
                                   (Unaudited)

(Dollars in millions)

<Table>
<Caption>
                                                     Quarters Ended                            Nine Months Ended
                                                      September 30,                               September 30,
                                                ------------------------  Percentage        ------------------------  Percentage
                                                  2001          2000       Inc/(Dec)          2001          2000       Inc/(Dec)
                                                  ----          ----       ---------          ----          ----       ---------
<S>                                             <C>          <C>          <C>               <C>           <C>         <C>
NET REVENUES (MANAGED BASIS) (A)
  Travel Related Services                        $ 4,466        $ 4,400            2 %       $ 13,575      $ 12,898            5 %
  American Express Financial Advisors                908          1,052          (14)           1,876         3,153          (40)
  American Express Bank                              165            146           13              481           447            8
                                                ---------    -----------                    ----------    ----------
                                                   5,539          5,598           (1)          15,932        16,498           (3)
  Corporate and Other,
    including adjustments and eliminations           (61)           (44)         (37)            (162)         (127)         (28)
                                                ---------    -----------                    ----------    ----------

CONSOLIDATED NET REVENUES (MANAGED BASIS) (A)    $ 5,478        $ 5,554           (1)        $ 15,770      $ 16,371           (4)
                                                =========    ===========                    ==========    ==========

PRETAX INCOME (LOSS)(B)
  Travel Related Services                        $   316        $   721          (56)        $  1,783      $  2,073          (14)
  American Express Financial Advisors                194            387          (50)            (243)        1,138            -
  American Express Bank                              (62)             8            -              (30)           26            -
                                                ---------    -----------                    ----------    ----------
                                                     448          1,116          (60)           1,510         3,237          (53)
  Corporate and Other                                (94)           (87)          (9)            (262)         (242)          (9)
                                                ---------    -----------                    ----------    ----------

PRETAX INCOME (B)                                $   354        $ 1,029          (66)        $  1,248       $ 2,995          (58)
                                                =========    ===========                    ==========    ==========

NET INCOME (LOSS) (B)
  Travel Related Services                        $   248        $   507          (51)        $  1,289      $  1,460          (12)
  American Express Financial Advisors                145            269          (46)            (110)          790            -
  American Express Bank                              (43)             7            -              (22)           22            -
                                                ---------    -----------                    ----------    ----------
                                                     350            783          (55)           1,157         2,272          (49)
  Corporate and Other                                (52)           (46)         (13)            (143)         (139)          (2)
                                                ---------    -----------                    ----------    ----------

NET INCOME (B)                                   $   298        $   737          (60)        $  1,014      $  2,133          (52)
                                                =========    ===========                    ==========    ==========
</Table>

(A)  Managed net revenues are reported net of interest expense, where
     applicable, and American Express Financial Advisors' provision for losses
     and benefits, and exclude the effect of TRS' securitization activities.
(B)  Included in 2001 income are two significant third quarter items, a
     restructuring charge of $352 million ($232 million after-tax),
     and one-time costs (including waived fees) of $98 million ($65 million
     after-tax) resulting from the September 11, 2001 terrorist attack on
     New York City.


                                                                              9
<Page>

(Preliminary)               AMERICAN EXPRESS COMPANY
                          FINANCIAL SUMMARY (CONTINUED)
                                   (Unaudited)

<Table>
<Caption>
                                                       Quarters Ended                          Nine Months Ended
                                                        September 30,                             September 30,
                                                 ------------------------    Percentage       ---------------------    Percentage
                                                     2001         2000        Inc/(Dec)         2001        2000        Inc/(Dec)
                                                     ----         ----        ---------         ----        ----        ---------
<S>                                              <C>            <C>          <C>              <C>          <C>         <C>
EARNINGS PER SHARE

BASIC
  Earnings Per Common Share                          $ 0.23       $ 0.56           (59)%        $ 0.77      $ 1.61           (52)%
                                                 ===========    =========                     =========    ========
  Average common shares outstanding (millions)        1,324        1,326             -           1,323       1,328             -
                                                 ===========    =========                     =========    ========

DILUTED
  Earnings Per Common Share                          $ 0.22       $ 0.54           (59)         $ 0.76      $ 1.57           (52)
                                                 ===========    =========                     =========    ========
  Average common shares outstanding (millions)        1,335        1,361            (2)          1,338       1,361            (2)
                                                 ===========    =========                     =========    ========

Cash dividends declared per common share             $ 0.08       $ 0.08             -          $ 0.24      $ 0.24             -
                                                 ===========    =========                     =========    ========
</Table>

                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

<Table>
<Caption>
                                                       Quarters Ended                          Nine Months Ended
                                                        September 30,                             September 30,
                                                 ------------------------    Percentage       ---------------------    Percentage
                                                     2001         2000        Inc/(Dec)         2001        2000        Inc/(Dec)
                                                     ----         ----        ---------         ----        ----        ---------
<S>                                              <C>              <C>        <C>              <C>          <C>         <C>
Return on Average Equity*                            14.2 %       25.5 %             -          14.2 %     25.5 %             -
Common Shares Outstanding (millions)                  1,336        1,329             -           1,336      1,329             -
Book Value per Common Share:
  Actual                                             $ 9.16       $ 8.44            9%          $ 9.16     $ 8.44            9%
  Pro Forma*                                         $ 8.92       $ 8.68            3%          $ 8.92     $ 8.68            3%
Shareholders' Equity (billions)                      $ 12.2       $ 11.2            9%          $ 12.2     $ 11.2            9%
</Table>

* Excludes the effect on Shareholders' Equity of SFAS No. 115 and SFAS No. 133.
  The Company adopted SFAS No. 133 on January 1, 2001.


                                                                            10
<Page>


(Preliminary)                AMERICAN EXPRESS COMPANY
                                FINANCIAL SUMMARY
                                   (Unaudited)
(Dollars in millions)

<Table>
<Caption>
                                                                                       Quarters Ended
                                                   ------------------------------------------------------------------------------
                                                    September 30,     June 30,      March 31,      December 31,    September 30,
                                                        2001           2001           2001            2000              2000
                                                        ----           ----           ----            ----              ----
<S>                                                <C>              <C>            <C>            <C>             <C>
NET REVENUES (MANAGED BASIS) (A)
  Travel Related Services                                $ 4,466        $ 4,644        $ 4,465         $ 4,543           $ 4,400
  American Express Financial Advisors                        908            162            806           1,066             1,052
  American Express Bank                                      165            159            158             144               146
                                                   --------------   ------------   ------------   -------------   ---------------
                                                           5,539          4,965          5,429           5,753             5,598
  Corporate and Other,
    including adjustments and eliminations                   (61)           (55)           (48)            (39)              (44)
                                                   --------------   ------------   ------------   -------------   ---------------

CONSOLIDATED NET REVENUES (MANAGED BASIS) (A)            $ 5,478        $ 4,910        $ 5,381         $ 5,714           $ 5,554
                                                   ==============   ============   ============   =============   ===============

PRETAX INCOME (LOSS)(B)
  Travel Related Services                                $   316        $   730        $   737         $   641           $   721
  American Express Financial Advisors                        194           (508)            70             344               387
  American Express Bank                                      (62)            18             14               8                 8
                                                   --------------   ------------   ------------   -------------   ---------------
                                                             448            240            821             993             1,116
  Corporate and Other                                        (94)           (87)           (80)            (80)              (87)
                                                   --------------   ------------   ------------   -------------   ---------------

PRETAX INCOME (B)                                        $   354        $   153        $   741         $   913           $ 1,029
                                                   ==============   ============   ============   =============   ===============

NET INCOME (LOSS) (B)
  Travel Related Services                                $   248        $   519        $   522         $   470           $   507
  American Express Financial Advisors                        145           (307)            51             242               269
  American Express Bank                                      (43)            12              9               6                 7
                                                   --------------   ------------   ------------   -------------   ---------------
                                                             350            224            582             718               783
  Corporate and Other                                        (52)           (46)           (44)            (41)              (46)
                                                   --------------   ------------   ------------   -------------   ---------------

NET INCOME (B)                                           $   298        $   178        $   538         $   677           $   737
                                                   ==============   ============   ============   =============   ===============
</Table>

(A)  Managed net revenues are reported net of interest expense, where
     applicable, and American Express Financial Advisors' provision for losses
     and benefits, and exclude the effect of TRS' securitization activities.
(B)  Included in 2001 income are two significant third quarter items, a
     restructuring charge of $352 million ($232 million after-tax), and
     one-time costs (including waived fees) of $98 million ($65 million
     after-tax) resulting from the September 11, 2001 terrorist attack on
     New York City.


                                                                             11
<Page>

(Preliminary)               AMERICAN EXPRESS COMPANY
                          FINANCIAL SUMMARY (CONTINUED)
                                   (Unaudited)

<Table>
<Caption>
                                                                                  Quarters Ended
                                                 ---------------------------------------------------------------------------------
                                                    September 30,     June 30,       March 31,       December 31,    September 30,
                                                        2001           2001            2001             2000             2000
                                                        ----           ----            ----             ----             ----
<S>                                              <C>                  <C>           <C>             <C>              <C>
EARNINGS PER SHARE

BASIC
  Earnings Per Common Share                               $ 0.23        $  0.13         $  0.41          $  0.51          $  0.56
                                                 ================    ===========    ============    =============    =============
  Average common shares outstanding (millions)             1,324          1,321           1,323            1,322            1,326
                                                 ================    ===========    ============    =============    =============

DILUTED
  Earnings Per Common Share                               $ 0.22        $  0.13         $  0.40          $  0.50          $  0.54
                                                 ================    ===========    ============    =============    =============
  Average common shares outstanding (millions)             1,335          1,336           1,344            1,355            1,361
                                                 ================    ===========    ============    =============    =============

Cash dividends declared per common share                  $ 0.08        $  0.08         $  0.08          $  0.08          $  0.08
                                                 ================    ===========    ============    =============    =============
</Table>

                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

<Table>
<Caption>
                                                                                  Quarters Ended
                                                 ---------------------------------------------------------------------------------
                                                    September 30,     June 30,       March 31,       December 31,    September 30,
                                                        2001           2001            2001             2000             2000
                                                        ----           ----            ----             ----             ----
<S>                                              <C>                  <C>            <C>             <C>             <C>
Return on Average Equity*                                  14.2%          18.2%           23.5%            25.3%            25.5%
Common Shares Outstanding (millions)                       1,336          1,324           1,326            1,326            1,329
Book Value per Common Share:
     Actual                                               $ 9.16        $  8.88         $  9.02          $  8.81          $  8.44
     Pro Forma*                                           $ 8.92        $  8.84         $  8.94          $  8.92          $  8.68
Shareholders' Equity (billions)                           $ 12.2        $  11.8         $  12.0          $  11.7          $  11.2
</Table>

* Excludes the effect on Shareholders' Equity of SFAS No. 115 and SFAS No. 133.
  The Company adopted SFAS No. 133 on January 1, 2001.


                                                                             12

<PAGE>
(Preliminary)             AMERICAN EXPRESS COMPANY
                        RESTRUCTURING CHARGE SUMMARY
                      QUARTER ENDED SEPTEMBER 30, 2001
                                (Unaudited)
<TABLE>
<CAPTION>
(Dollars in millions)

                                               Restructuring Charge                                  Expected Cost Savings
                                       ----------------------------------        Employee       ---------------------------------
                                          Pre-tax           After-tax           Reductions          2002               2003
                                           ------           ---------           ----------          ----               ----
<S>                                    <C>               <C>                   <C>              <C>                <C>
  Travel Related Services                       $ 195              $ 127               4,700            $ 250              $ 260
  American Express Financial Advisors              62                 41                 900               40                 50
  American Express Bank                            84                 57                 400               25                 35
  Corporate and Other                              11                  7                 100               10                 15
                                       ---------------    ---------------      --------------   --------------     --------------

  TOTAL                                         $ 352              $ 232               6,100            $ 325              $ 360
                                       ===============    ===============      ==============   ==============     ==============
</TABLE>

                                                                             13
<Page>

(Preliminary)                TRAVEL RELATED SERVICES
                              STATEMENTS OF INCOME
                           (Unaudited, Managed Basis)
(Dollars in millions)

<Table>
<Caption>
                                                                     Quarters Ended
                                                                      September 30,
                                                           ---------------------------------     Percentage
                                                                 2001               2000          Inc/(Dec)
                                                                 ----               ----          ---------
<S>                                                        <C>                 <C>               <C>
Net Revenues:
  Discount Revenue                                               $ 1,870            $ 1,963           (4.8)%
  Net Card Fees                                                      423                420            0.5
  Lending:
    Finance Charge Revenue                                         1,187              1,052           12.8
    Interest Expense                                                 358                429          (16.6)
                                                           --------------     --------------
      Net Finance Charge Revenue                                     829                623           33.1
  Travel Commissions and Fees                                        358                433          (17.4)
  Travelers Cheque Investment Income                                 103                103             -
  Other Revenues                                                     883                858            2.9
                                                           --------------     --------------
        Total Net Revenues                                         4,466              4,400            1.5
                                                           --------------     --------------
Expenses:
  Marketing and Promotion                                            298                358          (16.9)
  Provision for Losses and Claims:
    Charge Card                                                      284                273            3.9
    Lending                                                          573                386           48.3
    Other                                                             34                 29           20.6
                                                           --------------     --------------
      Total                                                          891                688           29.5
  Charge Card Interest Expense                                       365                362            0.7
  Human Resources                                                    987              1,017           (2.8)
  Other Operating Expenses                                         1,335              1,254            6.4
  Restructuring Charge                                               195                  -             -
  Disaster Recovery Charge (A)                                        79                  -             -
                                                           --------------     --------------
        Total Expenses                                             4,150              3,679           12.8
                                                           --------------     --------------
Pretax Income                                                        316                721          (56.1)
Income Tax Provision                                                  68                214          (68.0)
                                                           --------------     --------------
Net Income                                                       $   248            $   507          (51.0)
                                                           ==============     ==============
</Table>

(A) The disaster recovery charge excludes approximately $8 million of waived
    finance charges and late fees.

These Statements of Income are provided on a Managed Basis for analytical
purposes only. They present the income statements of TRS as if there had been no
securitization transactions. On a GAAP reporting basis, TRS recognized pretax
gains of $29 million ($19 million after-tax) and $26 million ($17 million
after-tax) in the third quarters of 2001 and 2000, respectively, related to the
securitization of U.S. receivables. These gains were invested in card
acquisition activities and had no material impact on Net Income or Total
Expenses in either quarter. For purposes of this presentation such gains and
corresponding changes in Marketing and Promotion and Other Operating Expenses
have been eliminated in each quarter.


                                                                             14
<Page>

(Preliminary)                TRAVEL RELATED SERVICES
                              STATEMENTS OF INCOME
                        (Unaudited, GAAP Reporting Basis)

(Dollars in millions)
<Table>
<Caption>
                                                                     Quarters Ended
                                                                      September 30,
                                                           ---------------------------------     Percentage
                                                                 2001               2000          Inc/(Dec)
                                                                 ----               ----          ---------
<S>                                                        <C>                <C>                <C>
Net Revenues:
  Discount Revenue                                               $ 1,870            $ 1,963           (4.8)%
  Net Card Fees                                                      423                418            1.0
  Lending:
    Finance Charge Revenue                                           458                504           (9.2)
    Interest Expense                                                 236                272          (13.1)
                                                           --------------     --------------
      Net Finance Charge Revenue                                     222                232           (4.6)
  Travel Commissions and Fees                                        358                433          (17.4)
  Travelers Cheque Investment Income                                 103                103             -
  Other Revenues                                                   1,252              1,190            5.4
                                                           --------------     --------------
        Total Net Revenues                                         4,228              4,339           (2.6)
                                                           --------------     --------------
Expenses:
  Marketing and Promotion                                            314                373          (15.8)
  Provision for Losses and Claims:
    Charge Card                                                      284                236           20.3
    Lending                                                          302                267           13.2
    Other                                                             34                 29           20.6
                                                           --------------     --------------
      Total                                                          620                532           16.7
  Charge Card Interest Expense                                       369                312           17.8
  Net Discount Expense                                                 -                119             -
  Human Resources                                                    987              1,017           (2.8)
  Other Operating Expenses                                         1,348              1,265            6.5
  Restructuring Charge                                               195                  -             -
  Disaster Recovery Charge (A)                                        79                  -             -
                                                           --------------     --------------
        Total Expenses                                             3,912              3,618            8.1
                                                           --------------     --------------
Pretax Income                                                        316                721          (56.1)
Income Tax Provision                                                  68                214          (68.0)
                                                           --------------     --------------
Net Income                                                       $   248            $   507          (51.0)
                                                           ==============     ==============
</Table>
(A) The disaster recovery charge excludes approximately $8 million of waived
    finance charges and late fees.

                                                                            15
<Page>

(Preliminary)              TRAVEL RELATED SERVICES
                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

(Amounts in billions, except percentages and where indicated)
<Table>
<Caption>
                                                                     Quarters Ended
                                                                      September 30,
                                                           ---------------------------------       Percentage
                                                                 2001               2000            Inc/(Dec)
                                                                 ----               ----            ---------
<S>                                                        <C>                <C>                  <C>
Total Cards in Force (millions):
  United States                                                     34.7               32.9            5.5 %
  Outside the United States                                         20.2               17.5           14.9
                                                           --------------     --------------
      Total                                                         54.9               50.4            8.8
                                                           ==============     ==============
Basic Cards in Force (millions):
  United States                                                     26.9               25.8            4.3
  Outside the United States                                         15.4               13.4           15.1
                                                           --------------     --------------
      Total                                                         42.3               39.2            8.0
                                                           ==============     ==============
Card Billed Business:
  United States                                                  $  54.4            $  56.2           (3.3)
  Outside the United States                                         18.0               18.6           (3.2)
                                                           --------------     --------------
      Total                                                      $  72.4            $  74.8           (3.2)
                                                           ==============     ==============

Average Discount Rate (A)                                         2.67 %             2.70 %              -
Average Basic Cardmember Spending (dollars) (A)                  $ 1,846            $ 2,041            (9.6)
Average Fee per Card - Managed (dollars) (A)                     $    34            $    36            (5.6)
Non-Amex Brand (B):
  Cards in Force (millions)                                          0.7                0.6             5.9
  Billed Business                                                $   0.9            $   0.8             9.9
Travel Sales                                                     $   3.9            $   5.4          (27.5)
  Travel Commissions and Fees/Sales (C)                            9.2 %              8.0 %              -
Travelers Cheque:
  Sales                                                          $   7.3            $   7.7           (4.6)
  Average Outstanding                                            $   6.8            $   6.9           (1.6)
  Average Investments                                            $   7.0            $   6.7            4.5
  Tax Equivalent Yield                                             8.8 %              8.8 %              -
Total Debt                                                       $  38.0            $  35.2            8.1
Shareholder's Equity                                             $   6.6            $   6.3            5.2
Return on Average Equity (D)                                      27.0 %             32.6 %              -
Return on Average Assets (E)                                       2.6 %              3.0 %              -
</Table>

(A)    Computed from proprietary card activities only.
(B)    This data relates to Visa and Eurocards issued in connection with joint
       venture activities.
(C)    Computed from information provided herein.
(D)    Excludes the effect on Shareholder's Equity of SFAS No. 115 and SFAS
       No. 133. The Company adopted SFAS No. 133 on January 1, 2001.
(E)    Excludes the effect on total assets of SFAS No. 115 and SFAS No. 133 to
       the extent that they directly affect Shareholder's Equity.


                                                                          16
<Page>

(Preliminary)              TRAVEL RELATED SERVICES
                  SELECTED STATISTICAL INFORMATION (CONTINUED)
                           (Unaudited, Managed Basis)

(Amounts in billions, except percentages and where indicated)
<Table>
<Caption>
                                                                      Quarters Ended
                                                                       September 30,
                                                           ---------------------------------       Percentage
                                                                 2001               2000            Inc/(Dec)
                                                                 ----               ----            ---------
<S>                                                        <C>                <C>                  <C>
Charge Card Receivables:
  Total Receivables                                             $   24.8           $   28.1          (11.8)%
  90 Days Past Due as a % of Total                                 3.0 %              2.3 %             -
  Loss Reserves (millions)                                      $  1,026           $    987            4.0
    % of Receivables                                               4.1 %              3.5 %             -
    % of 90 Days Past Due                                          136 %              152 %             -
  Net Loss Ratio                                                  0.45 %             0.37 %             -

U.S. Lending:
  Total Loans                                                   $   31.3           $   27.1           15.4
  Past Due Loans as a % of Total:
    30-89 Days                                                     2.2 %              1.8 %             -
    90+ Days                                                       1.0 %              0.8 %             -
  Loss Reserves (millions):
    Beginning Balance                                              $ 959           $    686           39.8
      Provision                                                      493                328           50.3
      Net Charge-Offs/Other                                         (434)              (283)          53.3
                                                           --------------     --------------
    Ending Balance                                              $  1,018           $    731           39.3
                                                           ==============     ==============
    % of Loans                                                     3.3 %              2.7 %             -
    % of Past Due                                                  101 %              103 %             -
  Average Loans                                                 $   31.0           $   26.6           16.1
  Net Write-Off Rate                                               5.6 %              4.3 %             -
  Net Interest Yield                                               8.8 %              7.8 %             -
</Table>


                                                                             17
<Page>

(Preliminary)                TRAVEL RELATED SERVICES
                              STATEMENTS OF INCOME
                           (Unaudited, Managed Basis)

(Dollars in millions)
<Table>
<Caption>
                                                                              Quarters Ended
                                            ------------------------------------------------------------------------------------
                                             September 30,       June 30,         March 31,       December 31,     September 30,
                                                 2001             2001              2001             2000              2000
                                                 ----             ----              ----             ----              ----
<S>                                         <C>                <C>              <C>              <C>              <C>
Net Revenues:
  Discount Revenue                              $   1,870        $   2,007         $   1,925        $   2,062         $   1,963
  Net Card Fees                                       423              420               422              417               420
  Lending:
    Finance Charge Revenue                          1,187            1,159             1,120            1,090             1,052
    Interest Expense                                  358              408               429              448               429
                                            --------------     ------------     -------------    -------------    --------------
      Net Finance Charge Revenue                      829              751               691              642               623
  Travel Commissions and Fees                         358              427               418              442               433
  Travelers Cheque Investment Income                  103              100                98               95               103
  Other Revenues                                      883              939               911              885               858
                                            --------------     ------------     -------------    -------------    --------------
        Total Net Revenues                          4,466            4,644             4,465            4,543             4,400
                                            --------------     ------------     -------------    -------------    --------------
Expenses:
  Marketing and Promotion                             298              269               296              314               358
  Provision for Losses and Claims:
    Charge Card                                       284              320               285              262               273
    Lending                                           573              564               501              432               386
    Other                                              34               25                24               19                29
                                            --------------     ------------     -------------    -------------    --------------
      Total                                           891              909               810              713               688
  Charge Card Interest Expense                        365              383               393              383               362
  Human Resources                                     987            1,053             1,034            1,046             1,017
  Other Operating Expenses                          1,335            1,300             1,195            1,446             1,254
  Restructuring Charge                                195                -                 -                -                 -
  Disaster Recovery Charge (A)                         79                -                 -                -                 -
                                            --------------     ------------     -------------    -------------    --------------
        Total Expenses                              4,150            3,914             3,728            3,902             3,679
                                            --------------     ------------     -------------    -------------    --------------
Pretax Income                                         316              730               737              641               721
Income Tax Provision                                   68              211               215              171               214
                                            --------------     ------------     -------------    -------------    --------------
Net Income                                      $     248        $     519         $     522        $     470         $     507
                                            ==============     ============     =============    =============    ==============
</Table>

(A) The disaster recovery charge excludes approximately $8 million of waived
    finance charges and late fees.

These Statements of Income are provided on a Managed Basis for analytical
purposes only. They present the income statements of TRS as if there had been no
securitization transactions. On a GAAP reporting basis, TRS recognized pretax
gains of $29 million ($19 million after-tax) in the third quarter of 2001, $84
million ($55 million after-tax) in the second quarter of 2001, $42 million ($27
million after-tax) in the first quarter of 2001 and $26 million ($17 million
after-tax) in the third quarter of 2000, related to the securitization of U.S.
receivables. These gains were invested in card acquisition activities and had no
material impact on Net Income or Total Expenses in any quarter. For purposes of
this presentation such gains and corresponding changes in Marketing and
Promotion and Other Operating Expenses have been eliminated in each quarter.


                                                                             18

<Page>

(Preliminary)                TRAVEL RELATED SERVICES
                              STATEMENTS OF INCOME
                        (Unaudited, GAAP Reporting Basis)

(Dollars in millions)
<Table>
<Caption>
                                                                               Quarters Ended
                                             -------------------------------------------------------------------------------------
                                              September 30,       June 30,         March 31,      December 31,      September 30,
                                                  2001             2001              2001            2000               2000
                                                  ----             ----              ----            ----               ----
<S>                                          <C>               <C>               <C>              <C>              <C>
Net Revenues:
  Discount Revenue                                $   1,870       $    2,007         $   1,925       $   2,062          $   1,963
  Net Card Fees                                         423              404               422             417                418
  Lending:
    Finance Charge Revenue                              458              467               518             498                504
    Interest Expense                                    236              267               278             277                272
                                             ---------------   --------------    --------------   -------------    ---------------
      Net Finance Charge Revenue                        222              200               240             221                232
  Travel Commissions and Fees                           358              427               418             442                433
  Travelers Cheque Investment Income                    103              100                98              95                103
  Other Revenues                                      1,252            1,358             1,223           1,184              1,190
                                             ---------------   --------------    --------------   -------------    ---------------
        Total Net Revenues                            4,228            4,496             4,326           4,421              4,339
                                             ---------------   --------------    --------------   -------------    ---------------
Expenses:
  Marketing and Promotion                               314              320               321             314                373
  Provision for Losses and Claims:
    Charge Card                                         284              319               249             228                236
    Lending                                             302              346               287             277                267
    Other                                                34               25                24              19                 29
                                             ---------------   --------------    --------------   -------------    ---------------
      Total                                             620              690               560             524                532
  Charge Card Interest Expense                          369              387               349             336                312
  Net Discount Expense                                    -              (17)              113             114                119
  Human Resources                                       987            1,053             1,034           1,046              1,017
  Other Operating Expenses                            1,348            1,333             1,212           1,446              1,265
  Restructuring Charge                                  195                -                 -               -                  -
  Disaster Recovery Charge (A)                           79                -                 -               -                  -
                                             ---------------   --------------    --------------   -------------    ---------------
        Total Expenses                                3,912            3,766             3,589           3,780              3,618
                                             ---------------   --------------    --------------   -------------    ---------------
Pretax Income                                           316              730               737             641                721
Income Tax Provision                                     68              211               215             171                214
                                             ---------------   --------------    --------------   -------------    ---------------
Net Income                                        $     248       $      519         $     522       $     470          $     507
                                             ===============   ==============    ==============   =============    ===============
</Table>

(A) The disaster recovery charge excludes approximately $8 million of waived
    finance charges and late fees.

                                                                             19
<Page>

(Preliminary)                TRAVEL RELATED SERVICES
                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

(Amounts in billions, except percentages and where indicated)
<Table>
<Caption>
                                                                                      Quarters Ended
                                                    -------------------------------------------------------------------------------
                                                     September 30,      June 30,      March 31,       December 31,    September 30,
                                                         2001            2001           2001             2000             2000
                                                         ----            ----           ----             ----             ----
<S>                                                 <C>               <C>            <C>             <C>              <C>
Total Cards in Force (millions):
  United States                                              34.7            34.6           34.2             33.3             32.9
  Outside the United States                                  20.2            19.7           19.0             18.4             17.5
                                                    --------------    ------------   ------------    -------------    -------------
      Total                                                  54.9            54.3           53.2             51.7             50.4
                                                    ==============    ============   ============    =============    =============
Basic Cards in Force (millions):
  United States                                              26.9            26.9           26.9             26.3             25.8
  Outside the United States                                  15.4            15.0           14.4             13.9             13.4
                                                    --------------    ------------   ------------    -------------    -------------
      Total                                                  42.3            41.9           41.3             40.2             39.2
                                                    ==============    ============   ============    =============    =============
Card Billed Business:
  United States                                          $   54.4       $    58.8       $   55.6         $   59.0         $   56.2
  Outside the United States                                  18.0            18.5           18.4             20.0             18.6
                                                    --------------    ------------   ------------    -------------    -------------
      Total                                              $   72.4       $    77.3       $   74.0         $   79.0         $   74.8
                                                    ==============    ============   ============    =============    =============
Average Discount Rate (A)                                  2.67 %          2.67 %         2.68 %           2.69 %           2.70 %
Average Basic Cardmember Spending (dollars) (A)          $  1,846       $   1,986       $  1,933         $  2,113         $  2,041
Average Fee per Card - Managed (dollars) (A)             $     34       $      34       $     35         $     35         $     36
Non-Amex Brand (B):
  Cards in Force (millions)                                   0.7             0.7            0.6              0.6              0.6
  Billed Business                                        $    0.9       $     0.8       $    0.8         $    1.1         $    0.8
Travel Sales                                             $    3.9       $     4.9       $    5.0         $    5.5         $    5.4
  Travel Commissions and Fees/Sales (C)                     9.2 %           8.7 %          8.4 %            8.0 %            8.0 %
Travelers Cheque:
  Sales                                                  $    7.3       $     6.5       $    5.0         $    5.1         $    7.7
  Average Outstanding                                    $    6.8       $     6.5       $    6.1         $    6.2         $    6.9
  Average Investments                                    $    7.0       $     6.5       $    6.3         $    6.2         $    6.7
  Tax Equivalent Yield                                      8.8 %           9.0 %          9.1 %            9.1 %            8.8 %
Total Debt                                               $   38.0       $    37.6       $   35.5         $   40.0         $   35.2
Shareholder's Equity                                     $    6.6       $     6.7       $    6.7         $    6.6         $    6.3
Return on Average Equity (D)                               27.0 %          32.0 %         33.0 %           33.0 %           32.6 %
Return on Average Assets (E)                                2.6 %           3.0 %          3.1 %            3.0 %            3.0 %
</Table>

(A)    Computed from proprietary card activities only.
(B)    This data relates to Visa and Eurocards issued in connection with joint
       venture activities.
(C)    Computed from information provided herein.
(D)    Excludes the effect on Shareholder's Equity of SFAS No. 115 and SFAS
       No. 133. The Company adopted SFAS No. 133 on January 1, 2001.
(E)    Excludes the effect on total assets of SFAS No. 115 and SFAS No. 133 to
       the extent that they directly affect Shareholder's Equity.


                                                                             20
<Page>

(Preliminary)                TRAVEL RELATED SERVICES
                  SELECTED STATISTICAL INFORMATION (CONTINUED)
                           (Unaudited, Managed Basis)

(Amounts in billions, except percentages and where indicated)
<Table>
<Caption>
                                                                             Quarters Ended
                                         -----------------------------------------------------------------------------------------
                                           September 30,       June 30,         March 31,         December 31,      September 30,
                                                2001             2001              2001               2000               2000
                                                ----             ----              ----               ----               ----
<S>                                      <C>                 <C>              <C>                <C>               <C>
Charge Card Receivables:
  Total Receivables                            $    24.8        $    26.1         $    26.4          $    29.0          $    28.1
  90 Days Past Due as a % of Total                  3.0%            2.9 %             2.7 %              2.3 %              2.3 %
  Loss Reserves (millions)                     $   1,026        $   1,034         $   1,004          $     964          $     987
    % of Receivables                               4.1 %            4.0 %             3.8 %              3.3 %              3.5 %
    % of 90 Days Past Due                          136 %            138 %             139 %              142 %              152 %
  Net Loss Ratio                                  0.45 %           0.42 %            0.35 %             0.36 %             0.37 %

U.S. Lending:
  Total Loans                                  $    31.3        $    31.2         $    30.2          $    28.7          $    27.1
  Past Due Loans as a % of Total:
    30-89 Days                                     2.2 %            1.9 %             2.0 %              1.9 %              1.8 %
    90+ Days                                       1.0 %            1.0 %             0.9 %              0.9 %              0.8 %
  Loss Reserves (millions):
    Beginning Balance                          $     959        $     907         $     820          $     731          $     686
      Provision                                      493              495               426                377                328
      Net Charge-Offs/Other                         (434)            (443)             (339)              (288)              (283)
                                         ----------------    -------------    --------------     --------------    ---------------
    Ending Balance                             $   1,018        $     959         $     907          $     820          $     731
                                         ================    =============    ==============     ==============    ===============
    % of Loans                                     3.3 %            3.1 %             3.0 %              2.9 %              2.7 %
    % of Past Due                                  101 %            107 %             103 %              104 %              103 %
  Average Loans                                $    31.0        $    30.3         $    28.9          $    27.6          $    26.6
  Net Write-Off Rate                               5.6 %            5.7 %             5.1 %              4.4 %              4.3 %
  Net Interest Yield                                8.8%            8.6 %             8.3 %              7.7 %              7.8 %
</Table>



                                                                             21
<Page>

(Preliminary)          AMERICAN EXPRESS FINANCIAL ADVISORS
                              STATEMENTS OF INCOME
                                   (Unaudited)

(Dollars in millions)
<Table>
<Caption>
                                                                    Quarters Ended
                                                                     September 30,
                                                         ---------------------------------    Percentage
                                                                 2001              2000        Inc/(Dec)
                                                                 ----              ----        ---------
<S>                                                      <C>                <C>               <C>
Net Revenues:
  Investment Income                                             $   490           $   582         (15.8)%
  Management and Distribution Fees                                  595               700         (15.0)
  Other Revenues                                                    307               258          18.5
                                                         ---------------    --------------
    Total Revenues                                                1,392             1,540          (9.7)
  Provision for Losses and Benefits:
    Annuities                                                       242               253          (4.7)
    Insurance                                                       171               146          17.3
    Investment Certificates                                          71                89         (19.8)
                                                         ---------------    --------------
      Total                                                         484               488          (0.9)
                                                         ---------------    --------------
    Net Revenues                                                    908             1,052         (13.7)
                                                         ---------------    --------------

Expenses:
  Human Resources                                                   469               527         (11.0)
  Other Operating Expenses                                          172               138          23.8
  Restructuring Charge                                               62                 -            -
  Disaster Recovery Charge                                           11                 -            -
                                                         ---------------    --------------
    Total Expenses                                                  714               665           7.2
                                                         ---------------    --------------
Pretax Income                                                       194               387         (49.8)
Income Tax Provision                                                 49               118         (58.4)
                                                         ---------------    --------------
Net Income                                                      $   145           $   269         (46.1)
                                                         ===============    ==============
</Table>


                                                                            22
<Page>

(Preliminary)          AMERICAN EXPRESS FINANCIAL ADVISORS
                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

(Dollars in millions, except where indicated)
<Table>
<Caption>
                                                                     Quarters Ended
                                                                      September 30,
                                                         ---------------------------------    Percentage
                                                                 2001              2000        Inc/(Dec)
                                                                 ----              ----        ---------
<S>                                                      <C>                <C>               <C>
Investments (billions)*                                       $    32.9          $   30.0           9.7 %
Client Contract Reserves (billions)                           $    32.6          $   31.4           3.9
Shareholder's Equity (billions)                               $     5.5          $    4.2          31.5
Return on Average Equity **                                       2.7 %            23.1 %             -

Life Insurance in Force (billions)                            $   104.8          $   95.8           9.4
Assets Owned, Managed or
  Administered (billions):
    Assets Managed for Institutions                           $    47.8          $   56.7         (15.6)
    Assets Owned, Managed or Administered
      for Individuals:
      Owned Assets:
        Separate Account Assets                                    24.3              36.6         (33.6)
        Other Owned Assets                                         42.5              40.6           4.7
                                                         ---------------    --------------
          Total Owned Assets                                       66.8              77.2         (13.5)
      Managed Assets                                               91.2             122.0         (25.3)
      Administered Assets                                          28.6              38.0         (24.8)
                                                         ---------------    --------------
        Total                                                 $   234.4          $  293.9         (20.3)
                                                         ===============    ==============
Market Appreciation (Depreciation) During
  the Period:
  Owned Assets:
    Separate Account Assets                                   $  (4,470)         $   (203)            #
    Other Owned Assets                                        $     535          $    163             #
  Total Managed Assets                                        $ (15,719)         $    (76)            #

Cash Sales:
  Mutual Funds                                                $   7,384          $ 11,698         (36.9)
  Annuities                                                       1,308             1,465         (10.8)
  Investment Certificates                                           941               868           8.4
  Life and Other Insurance Products                                 200               220          (8.7)
  Institutional                                                     488             1,922         (74.6)
  Other                                                           1,115               815          36.8
                                                         ---------------    --------------
Total Cash Sales                                              $  11,436          $ 16,988         (32.7)
                                                         ===============    ==============

Number of Financial Advisors                                     11,385            12,137          (6.2)
Fees from Financial Plans and Advice Services                 $    23.1          $   26.1         (11.4)
Percentage of Total Sales from Financial Plans
  and Advice Services                                            72.4 %            69.2 %             -
</Table>

*  Excludes cash, derivatives, short term and other investments.
** Excludes the effect on Shareholder's Equity of SFAS No. 115 and
   SFAS No. 133. The Company adopted SFAS No. 133 on January 1, 2001.
#  Denotes a variance of more than 100%.


                                                                            23
<Page>

(Preliminary)          AMERICAN EXPRESS FINANCIAL ADVISORS
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

(Dollars in millions)
<Table>
<Caption>
                                                                                Quarters Ended
                                            --------------------------------------------------------------------------------------
                                             September 30,       June 30,          March 31,       December 31,     September 30,
                                                  2001             2001              2001              2000              2000
                                                  ----             ----              ----              ----              ----
<S>                                         <C>                 <C>               <C>             <C>               <C>
Net Revenues:
  Investment Income                               $    490         $   (246)         $    368          $    546          $    582
  Management and Distribution Fees                     595              623               638               722               700
  Other Revenues                                       307              290               277               273               258
                                            ---------------     ------------      ------------    --------------    --------------
    Total Revenues                                   1,392              667             1,283             1,541             1,540
  Provision for Losses and Benefits:
    Annuities                                          242              255               238               251               253
    Insurance                                          171              152               157               134               146
    Investment Certificates                             71               98                82                90                89
                                            ---------------     ------------      ------------    --------------    --------------
      Total                                            484              505               477               475               488
                                            ---------------     ------------      ------------    --------------    --------------
    Net Revenues                                       908              162               806             1,066             1,052
                                            ---------------     ------------      ------------    --------------    --------------

Expenses:
  Human Resources                                      469              496               548               540               527
  Other Operating Expenses                             172              174               188               182               138
  Restructuring Charge                                  62                -                 -                 -                 -
  Disaster Recovery Charge                              11                -                 -                 -                 -
                                            ---------------     ------------      ------------    --------------    --------------
    Total Expenses                                     714              670               736               722               665
                                            ---------------     ------------      ------------    --------------    --------------
Pretax Income (Loss)                                   194             (508)               70               344               387
Income Tax Provision (Benefit)                          49             (201)               19               102               118
                                            ---------------     ------------      ------------    --------------    --------------
Net Income (Loss)                                 $    145         $   (307)         $     51          $    242          $    269
                                            ===============     ============      ============    ==============    ==============
</Table>


                                                                             24
<Page>

(Preliminary)          AMERICAN EXPRESS FINANCIAL ADVISORS
                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

(Dollars in millions, except where indicated)
<Table>
<Caption>
                                                                                  Quarters Ended
                                                  --------------------------------------------------------------------------------
                                                   September 30,     June 30,        March 31,      December 31,    September 30,
                                                        2001           2001            2001             2000             2000
                                                        ----           ----            ----             ----             ----
<S>                                               <C>               <C>            <C>             <C>              <C>
Investments (billions)*                                $    32.9       $   32.0       $    31.2        $    30.5         $   30.0
Client Contract Reserves (billions)                    $    32.6       $   32.1       $    31.7        $    31.4         $   31.4
Shareholder's Equity (billions)                        $     5.5       $    4.6       $     4.7        $     4.4         $    4.2
Return on Average Equity**                                 2.7 %          5.4 %          17.8 %           22.6 %           23.1 %

Life Insurance in Force (billions)                     $   104.8       $  102.3       $   100.0        $    98.1         $   95.8
Assets Owned, Managed or
  Administered (billions):
    Assets Managed for Institutions                    $    47.8       $   54.3       $    53.7        $    55.0         $   56.7
    Assets Owned, Managed or Administered
      for Individuals:
      Owned Assets:
        Separate Account Assets                             24.3           28.9            27.4             32.3             36.6
        Other Owned Assets                                  42.5           41.6            42.0             41.3             40.6
                                                  ---------------   ------------   -------------   --------------   --------------
          Total Owned Assets                                66.8           70.5            69.4             73.6             77.2
      Managed Assets                                        91.2          104.0            99.8            112.0            122.0
      Administered Assets                                   28.6           33.0            30.8             34.4             38.0
                                                  ---------------   ------------   -------------   --------------   --------------
        Total                                          $   234.4       $  261.8       $   253.7        $   275.0         $  293.9
                                                  ===============   ============   =============   ==============   ==============
Market Appreciation (Depreciation) During
  the Period:
  Owned Assets:
    Separate Account Assets                            $  (4,470)      $  1,248       $  (5,204)       $  (4,937)        $   (203)
    Other Owned Assets                                 $     535       $    229       $     608        $     153         $    163
  Total Managed Assets                                 $ (15,719)      $  4,552       $ (16,657)       $ (14,923)        $    (76)

Cash Sales:
  Mutual Funds                                         $   7,384       $  8,394       $   9,889        $   9,890         $ 11,698
  Annuities                                                1,308          1,406***        1,427***         1,493            1,465
  Investment Certificates                                    941          1,017             954              722              868
  Life and Other Insurance Products                          200            233             244              225              220
  Institutional                                              488          1,265           2,506            1,571            1,922
  Other                                                    1,115          1,058           1,955            1,508              815
                                                  ---------------   ------------   -------------   --------------   --------------
Total Cash Sales                                       $  11,436       $ 13,373***    $  16,975***     $  15,409         $ 16,988
                                                  ===============   ============   =============   ==============   ==============

Number of Financial Advisors                              11,385         11,646          12,052           12,663           12,137
Fees from Financial Plans and Advice Services          $    23.1       $   29.7       $    27.6        $    21.4         $   26.1
Percentage of Total Sales from Financial Plans
  and Advice Services                                     72.4 %         72.3 %          73.0 %           70.3 %           69.2 %
</Table>
*   Excludes cash, derivatives, short term and other investments.
**  Excludes the effect on Shareholder's Equity of SFAS No. 115 and
    SFAS No. 133. The Company adopted SFAS No. 133 on January 1, 2001.
*** Revised from previous disclosure.

                                                                             25
<Page>

(Preliminary)                AMERICAN EXPRESS BANK
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

(Dollars in millions)
<Table>
<Caption>
                                                                  Quarters Ended
                                                                  September 30,
                                                       --------------------------------     Percentage
                                                              2001              2000         Inc/(Dec)
                                                              ----              ----         ---------
<S>                                                    <C>               <C>                <C>
Net Revenues:
  Interest Income                                            $   174           $   188          (7.7)%
  Interest Expense                                                98               125         (21.8)
                                                       --------------    --------------
    Net Interest Income                                           76                63          20.3
  Commissions and Fees                                            51                54          (5.4)
  Foreign Exchange Income & Other Revenue                         38                29          30.1
                                                       --------------    --------------
    Total Net Revenues                                           165               146          12.8
                                                       --------------    --------------

Expenses:
  Human Resources                                                 60                65          (8.2)
  Other Operating Expenses                                        69                67           3.2
  Provision for Losses:
    Ongoing                                                        14                 6             #
    Restructuring related*                                         26                 -             -
                                                       --------------    --------------
      Total                                                        40                 6             #
    Restructuring Charge*                                          58                 -             -
                                                       --------------    --------------
      Total Expenses                                              227               138          64.3
                                                       --------------    --------------
Pretax (Loss) Income                                             (62)                8             -
Income Tax (Benefit) Provision                                   (19)                1             -
                                                       --------------    --------------
Net (Loss) Income                                            $   (43)          $     7             -
                                                       ==============    ==============
</Table>

* AEB recorded an aggregate third quarter 2001 restructuring charge of $84
  million pretax consisting of $26 million of additional provision for losses
  and $58 million for severance, foreign currency translation losses previously
  recorded in shareholder's equity and other charges.
# Denotes a variance of more than 100%.


                                                                             26
<Page>

(Preliminary)                AMERICAN EXPRESS BANK
                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

(Dollars in billions, except where indicated)
<Table>
<Caption>
                                                                  Quarters Ended
                                                                   September 30,
                                                          -----------------------------      Percentage
                                                              2001              2000           Inc/(Dec)
                                                              ----              ----           ---------
<S>                                                       <C>                  <C>           <C>
Total Shareholder's Equity (millions)                        $   771           $   729           5.8 %
Return on Average Common Equity (A)                           (2.4)%             4.1 %             -
Return on Average Assets (B)                                 (0.13)%            0.24 %             -
Total Loans                                                  $   5.6           $   5.1           8.4
Total Non-performing Loans (millions)                        $   133           $   156         (14.3)
Other Non-performing Assets (millions)                       $     2           $    37         (94.0)
Reserve for Credit Losses (millions) (C)                     $   149           $   179         (17.0)
Loan Loss Reserves as a % of Total Loans                       2.6 %             3.1 %             -
Deposits                                                     $   8.7           $   8.0           8.3
Assets Managed (D) / Administered                            $  11.3           $  10.2          10.4
Assets of Non-Consolidated Joint
  Ventures                                                   $   2.0           $   2.3         (15.2)
Risk-Based Capital Ratios:
  Tier 1                                                       9.9 %            10.4 %             -
  Total                                                       10.6 %            11.9 %             -
Leverage Ratio                                                 5.4 %             5.8 %             -
</Table>

(A)    Excludes the effect on Shareholder's Equity of SFAS No. 115 and SFAS
       No. 133. The Company adopted SFAS No. 133 on January 1, 2001.
(B)    Excludes the effect on total assets of SFAS No. 115 and SFAS No. 133
       to the extent that they directly affect Shareholder's Equity.
(C)    Allocation:

<Table>
      <S>                                              <C>               <C>
        Loans                                                  $   144           $   158
        Other Assets, primarily derivatives                          3                16
        Other Liabilities                                            2                 5
                                                        --------------    --------------
        Total Reserve for Credit Losses                        $   149           $   179
                                                        ==============    ==============
</Table>

(D)    Includes assets managed by American Express Financial Advisors.


                                                                            27
<Page>

(Preliminary)                AMERICAN EXPRESS BANK
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

(Dollars in millions)
<Table>
<Caption>
                                                                               Quarters Ended
                                              ------------------------------------------------------------------------------------
                                               September 30,      June 30,        March 31,       December 31,      September 30,
                                                    2001            2001             2001             2000               2000
                                                    ----            ----             ----             ----               ----
<S>                                           <C>                <C>             <C>             <C>               <C>
Net Revenues:
  Interest Income                                  $     174       $     182        $     187        $     181          $     188
  Interest Expense                                        98             110              122              122                125
                                              ---------------    ------------    -------------   --------------    ---------------
    Net Interest Income                                   76              72               65               59                 63
  Commissions and Fees                                    51              51               52               52                 54
  Foreign Exchange Income & Other Revenue                 38              36               41               33                 29
                                              ---------------    ------------    -------------   --------------    ---------------
    Total Net Revenues                                   165             159              158              144                146
                                              ---------------    ------------    -------------   --------------    ---------------

Expenses:
  Human Resources                                         60              62               62               60                 65
  Other Operating Expenses                                69              65               66               68                 67
  Provision for Losses:
    Ongoing                                               14              14               16                8                  6
    Restructuring related*                                26               -                -                -                  -
                                             ---------------    ------------    -------------   --------------    ---------------
      Total                                               40              14               16                8                  6
    Restructuring Charge*                                 58               -                -                -                  -
                                             ---------------    ------------    -------------   --------------    ---------------
      Total Expenses                                     227             141              144              136                138
                                             ---------------    ------------    -------------   --------------    ---------------
Pretax (Loss) Income                                    (62)             18               14                8                  8
Income Tax (Benefit) Provision                          (19)              6                5                2                  1
                                             ---------------    ------------    -------------   --------------    ---------------
Net (Loss) Income                                 $     (43)      $      12        $       9        $       6          $       7
                                             ===============    ============    =============   ==============    ===============
</Table>

* AEB recorded an aggregate third quarter 2001 restructuring charge of $84
  million pretax consisting of $26 million of additional provision for losses
  and $58 million for severance, foreign currency translation losses previously
  recorded in shareholder's equity and other charges.
                                                                             28
<Page>

(Preliminary)                AMERICAN EXPRESS BANK
                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

(Dollars in billions, except where indicated)
<Table>
<Caption>
                                                                                Quarters Ended
                                               ------------------------------------------------------------------------------------
                                                September 30,      June 30,        March 31,       December 31,      September 30,
                                                     2001            2001             2001             2000               2000
                                                     ----            ----             ----             ----               ----
<S>                                             <C>                <C>             <C>             <C>               <C>
Total Shareholder's Equity (millions)               $     771       $     767        $     774        $     754          $     729
Return on Average Common Equity (A)                    (2.4)%           5.2 %            4.6 %            4.4 %              4.1 %
Return on Average Assets (B)                          (0.13)%          0.30 %           0.26 %           0.26 %             0.24 %
Total Loans                                         $     5.6       $     5.5        $     5.4        $     5.3          $     5.1
Total Non-performing Loans (millions)               $     133       $     159        $     187        $     137          $     156
Other Non-performing Assets (millions)              $       2       $       4        $      24        $      24          $      37
Reserve for Credit Losses (millions) (C)            $     149       $     130        $     164        $     153          $     179
Loan Loss Reserves as a % of Total Loans                2.6 %           2.3 %            2.8 %            2.6 %              3.1 %
Deposits                                            $     8.7       $     8.5        $     8.5        $     8.0          $     8.0
Assets Managed (D) / Administered                   $    11.3       $    11.1        $    10.7        $    10.6          $    10.2
Assets of Non-Consolidated Joint
    Ventures                                        $     2.0       $     2.0        $     2.1         $    2.1          $     2.3
Risk-Based Capital Ratios:
    Tier 1                                              9.9 %          10.4 %           10.7 %           10.1 %             10.4 %
    Total                                              10.6 %          11.1 %           11.4 %           11.4 %             11.9 %
Leverage Ratio                                          5.4 %           5.8 %            5.8 %            5.9 %              5.8 %
</Table>

(A)    Excludes the effect on Shareholder's Equity of SFAS No. 115 and SFAS
       No. 133. The Company adopted SFAS No. 133 on January 1, 2001.
(B)    Excludes the effect on total assets of SFAS No. 115 and SFAS No. 133
       to the extent that they directly affect Shareholder's Equity.
(C)    Allocation:

<Table>
        <S>                                    <C>               <C>              <C>             <C>               <C>
        Loans                                       $     144       $     126        $     149        $     137          $     158
        Other Assets, primarily derivatives                 3               3               12               14                 16
        Other Liabilities                                   2               1                3                2                  5
                                               ---------------   -------------    -------------   --------------    ---------------
        Total Reserve for Credit Losses             $     149       $     130        $     164        $     153          $     179
                                               ===============   =============    =============   ==============    ===============
</Table>

(D)    Includes assets managed by American Express Financial Advisors.


                                                                             29
<Page>



(Preliminary)                 American Express Bank
                         Exposures By Country and Region
                                   (Unaudited)

 (Dollars in billions)
<Table>
<Caption>
                                                                          Net
                                                                       Guarantees                     9/30/01           6/30/01
                                                         FX and           and                          Total            Total
 Country                                   Loans       Derivatives     Contingents     Other*        Exposure**       Exposure**
--------------------------------------   ----------   -------------   ------------   ---------   ---------------   --------------
<S>                                      <C>          <C>             <C>            <C>         <C>               <C>
 Hong Kong                                 $   1.0      $       -       $     0.1     $   0.1        $      1.2       $      1.1
 Indonesia                                      -               -              -           -                0.1              0.1
 Singapore                                     0.5              -             0.1         0.1               0.7              0.6
 Korea                                         0.1              -              -          0.2               0.3              0.5
 Taiwan                                        0.2              -              -          0.1               0.3              0.2
 Japan                                          -               -              -          0.1               0.1              0.1
 Other                                          -               -              -          0.1               0.1              0.2
                                         ----------   -------------   ------------   ---------   ---------------  ---------------
     Total Asia/Pacific Region**               1.9              -             0.2         0.7               2.9              2.9
                                         ----------   -------------   ------------   ---------   ---------------  ---------------

 Chile                                         0.2             0.1             -          0.1               0.3              0.4
 Brazil                                        0.3              -              -           -                0.4              0.4
 Mexico                                         -               -              -           -                0.1              0.1
 Peru                                           -               -              -           -                0.1               -
 Argentina                                     0.1              -              -           -                0.1              0.1
 Other                                         0.3              -             0.2         0.1               0.7              0.6
                                         ----------   -------------   ------------   ---------   ---------------  ---------------
     Total Latin America**                     0.9             0.1            0.3         0.3               1.6              1.5
                                         ----------   -------------   ------------   ---------   ---------------  ---------------

 India                                         0.3              -             0.1         0.3               0.7              0.7
 Pakistan                                      0.1              -              -          0.1               0.2              0.2
 Other                                         0.1              -             0.1         0.1               0.2              0.2
                                         ----------   -------------   ------------   ---------   ---------------  ---------------
     Total Subcontinent**                      0.4              -             0.1         0.5               1.1              1.1
                                         ----------   -------------   ------------   ---------   ---------------  ---------------

 Egypt                                         0.2              -              -          0.2               0.4              0.4
 Other                                         0.1              -              -           -                0.2              0.2
                                         ----------   -------------   ------------   ---------   ---------------  ---------------
      Total Middle East & Africa**             0.3              -             0.1         0.2               0.6              0.6
                                         ----------   -------------   ------------   ---------   ---------------  ---------------

      Total Europe                             1.6             0.1            0.4         3.0               5.0              4.8

      Total North America                      0.3              -             0.3         1.7               2.3              2.1
                                         ----------   -------------   ------------   ---------   ---------------  ---------------

 Total Worldwide**                         $   5.6      $      0.2      $     1.5     $   6.3        $     13.6       $     13.1
                                         ==========   =============   ============   =========   ===============  ===============
</Table>

     *    Includes cash, placements and securities.
    **    Individual items may not add to totals due to rounding.

Note: Includes cross-border and local exposure and does not net local funding
      or liabilities against any local exposure.


                                                                            30

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
