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<SEC-DOCUMENT>0000004962-08-000001.txt : 20080110
<SEC-HEADER>0000004962-08-000001.hdr.sgml : 20080110
<ACCEPTANCE-DATETIME>20080110162425
ACCESSION NUMBER:		0000004962-08-000001
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080110
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20080110
DATE AS OF CHANGE:		20080110

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:		08523873

	BUSINESS ADDRESS:	
		STREET 1:		200 VESEY STREET
		STREET 2:		50TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10285
		BUSINESS PHONE:		2126402000

	MAIL ADDRESS:	
		STREET 1:		200 VESEY STREET
		STREET 2:		50TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10285
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>jan10_8k.txt
<DESCRIPTION>8-K
<TEXT>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

         Date of Report (Date of earliest event reported: January 10, 2008


                            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)     (IRS Employer
     of incorporation                                      Identification No.)
     or 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

                                      None
               --------------------------------------------------
          (Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

         Written communications pursuant to Rule 425 under the Securities Act
- ----     (17 CFR 230.425)

         Soliciting material pursuant to Rule 14a-12 under the Exchange Act
- ----     (17 CFR 240.14a-12)

         Pre-commencement communications pursuant to Rule 14d-2(b) under the
- ----     Exchange Act (17 CFR 240.14d-2(b))

         Pre-commencement communications pursuant to Rule 13e-4(c) under the
- ----     Exchange Act (17 CFR 240.13e-4(c))



<PAGE>
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION


  The following information is furnished under Item 2.02 - Results of
Operations and Financial Condition and Item 7.01 - Regulation FD Disclosure:

     On January 10, 2008, American Express Company issued a press release
regarding certain expected fourth quarter and full year 2007 financial
results, as well as the company's outlook for its 2008 financial results.
A copy of such press release is attached to this report as Exhibit 99.1 and is
hereby incorporated herein by reference.


EXHIBIT

99.1        Press Release, dated January 10, 2008, 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:   January 10, 2008

<PAGE>

                                  EXHIBIT INDEX


Exhibit
No.         Description
- ---------   -----------
99.1        Press Release, dated January 10, 2008, of American Express Company.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>pressrelex991.txt
<DESCRIPTION>PRESS RELEASE DATED JANUARY 10, 2008
<TEXT>
                                                                    EXHIBIT 99.1

 NEWS RELEASE      NEWS RELEASE      NEWS RELEASE      NEWS RELEASE      NEWS RE

[LOGO OF AMERICAN EXPRESS COMPANY]

CONTACTS:        Media:  Joanna Lambert                  Michael O'Neill
                         212-640-9668                    212-640-5951
                         joanna.g.lambert@aexp.com       mike.o'neill@aexp.com

    Investors/Analysts:  Alex Hopwood                    Ron Stovall
                         212-640-5495                    212-640-5574
                         alex.w.hopwood@aexp.com         ronald.stovall@aexp.com

FOR IMMEDIATE RELEASE
- --------------------------------------------------------------------------------
                   AMERICAN EXPRESS SEES WEAKER U.S. ECONOMY

            WILL INCREASE RESERVES WITH APPROXIMATELY $440 MILLION
                             FOURTH QUARTER CHARGE

                   COMPANY ADOPTS CAUTIOUS OUTLOOK FOR 2008


New York, January 10, 2008 -- American Express Company (NYSE:AXP) said today
that it is seeing signs of a weaker U.S. economy, as Cardmember spending began
to slow and delinquencies and loan write-offs trended upward during December.
Given the credit-related trends, the Company will take a pre-tax charge of
approximately $440 million (approximately $275 million after-tax) for the
fourth quarter. This charge will raise worldwide lending reserves to one
hundred percent of past-due loans and increase reserves related to the charge
card portfolio. Additionally, the Company said it is adopting a more cautious
view for 2008.

American Express said it expects to report overall growth in worldwide
Cardmember spending of about 16 percent for the fourth quarter (13 percent on
a foreign exchange adjusted basis). The growth rate, however, trailed off to
13 percent in December (10 percent FX adjusted) with particular weakness in
U.S. billings. The Company also expects to report that delinquencies in the
managed U.S. lending portfolio increased to approximately 3.2 percent in the
fourth quarter of 2007 from 2.9 percent in the third quarter, and that the
write-off rate in this portfolio increased to approximately 4.3 percent from
3.7 percent for the same periods.(1)

In light of the fourth quarter charge, American Express expects fully-diluted
earnings per share from continuing operations to be in the range of $0.70 to
$0.72 for the quarter. Those results would compare with fourth-quarter
year-ago earnings of $0.73 per share. For the full year 2007, fully-diluted
EPS from continuing operations is expected to be in the range of $3.38 to
$3.40, an increase of approximately 16 percent from 2006. The Company is
scheduled to report fourth quarter earnings on January 28.


- --------------------
(1) The "managed basis" presentation includes on-balance sheet Cardmember
loans and off-balance sheet securitized Cardmember loans. The difference
between the "owned basis" (GAAP) information and "managed basis" information
is attributable to the effects of securitization activities. Please refer to
the information set forth on Appendix I for further discussion of the owned
and managed basis presentation.


                                     -1-
<PAGE>
Kenneth I. Chenault, Chairman and Chief Executive Officer of American Express
Company, said: "While overall Cardmember spending continued to be relatively
strong and we benefited from a focus on the affluent sector of the market, we
did see some negative credit trends among U.S. consumers during December,
particularly in California, Florida and other parts of the country most
affected by the housing downturn. Increasing our reserves reflects the most
recent credit trends and puts us in an appropriately stronger position for
2008, when we expect those trends to translate into increased write-offs."

As previously announced, fourth quarter results will also recognize the $1.13
billion ($700 million after-tax) initial payment in the Company's settlement
agreement with Visa, along with a number of significant additional expenses.
These expenses include:
        o Approximately $140 million (approximately $90 million after-tax) of
          incremental investments in business building initiatives above the
          level planned for the quarter.
        o $74 million ($46 million after-tax) in litigation-related costs
          pertaining to the lawsuit against Visa and MasterCard.
        o $50 million ($31 million after-tax) in additional contributions to
          the American Express Charitable Fund, which supports the Company's
          ongoing philanthropic activities.

In addition, the Company expects to incur costs of approximately $685 million
(approximately $430 million after-tax) related to its previously announced
evaluation of enhancements to its method of estimating its liability for
Membership Rewards. These enhancements will incorporate an actuarial based
approach and reflect recent trends in redemption. The global ultimate
redemption rate assumption for current program participants increased to
approximately 90 percent. The higher level reflects the Company's effort to
drive further Cardmember usage of the Membership Rewards program, which in
turn strengthens customer loyalty and spending on American Express cards.

OUTLOOK FOR 2008 FINANCIAL RESULTS

In light of the weakening U.S. economy, American Express is taking a more
cautious view of the environment in 2008.

Based on business and economic trends during December, the Company expects
that growth in Cardmember spending will slow in the year ahead. The Company's
2008 business plan currently assumes worldwide billed business growth of
approximately 8 to 10 percent for the full year. While such growth would be
higher than industry-wide levels during the recent strong economy, it will
still represent a decline from the levels American Express has been generating
in recent years. The 2008 business plan also assumes write-off levels in the
managed U.S. lending portfolio will average 5.1 to 5.3 percent for the full
year.(1)

"In line with our cautious outlook for 2008, we plan to curtail certain
discretionary expenses and hold full-year marketing and promotion expenses
somewhat below 2007 levels. Spending at this level should still allow us to
capitalize on competitive opportunities and position the Company to continue
to gain share over the medium-to-long term," said Mr. Chenault.

American Express believes that in the current business and economic
environment, the flexibility it has built into its business model should
generally position the Company to grow earnings per share in the 10 to 12
percent range. However, several significant gains and tax benefits in 2007
will have a negative impact on year-over-year comparisons in 2008. As a
result, the Company expects reported earnings per share for 2008 to increase
in the 4 to 6 percent range from 2007 levels.

                                     -2-
<PAGE>
Quarterly results varied during 2007, reflecting significant items that
occurred in each period and substantially different levels of spending on
marketing and promotion initiatives. Because of these factors, year-over-year
EPS comparisons are likely to show significant variances by quarter - with
2008 first quarter earnings below last year's level in part as a result of the
relatively low level of marketing and promotion expenditures in the first
quarter of 2007.

American Express reaffirmed its long-term financial targets of 12 to 15
percent EPS growth, at least 8 percent revenue growth and return on equity of
33 to 36 percent, on average and over time.

"Our plans for the coming year assume a moderately weaker U.S. economy with
employment levels, consumer spending and market interest rates that do not
show significant deterioration from today's levels. They also assume write-off
rates that are above the historic lows of recent years, but still below what
we experienced in 2001 and 1991, the last two economic downturns in the United
States.

"Since then, we have built a market leadership position with customized
products, innovative rewards programs and a high-spending customer base. We
are less weighted toward the travel and entertainment sector and have a larger
presence in everyday categories where consumers don't typically reduce their
spending during economic downturns to the same extent as they do in T&E
spending. Additionally, our focus on the prime and affluent sectors should
help us weather the current conditions better than many competitors, although
clearly we are not immune from further deterioration in the overall economy
and credit environment," added Mr. Chenault.

ED. NOTE: AMERICAN EXPRESS COMPANY WILL HOLD A CONFERENCE CALL FOR INVESTORS
WITH CHIEF FINANCIAL OFFICER, DANIEL T. HENRY, TO DISCUSS THIS ANNOUNCEMENT
TODAY AT 5:00 P.M. (EST). INVESTORS MAY CALL 866.269.9613 OR 612.288.0340,
CONFERENCE ID: 906356.

A LIVE AUDIO WEBCAST OF THE INVESTOR CONFERENCE CALL WILL BE AVAILABLE TO THE
GENERAL PUBLIC ON THE AMERICAN EXPRESS WEB SITE AT
HTTP://IR.AMERICANEXPRESS.COM. A REPLAY OF THE INVESTOR CONFERENCE CALL WILL
BE AVAILABLE LATER THIS EVENING AT THE SAME WEB SITE ADDRESS.

American Express Company is a leading global payments, network and travel
company founded in 1850. For more information, visit WWW.AMERICANEXPRESS.COM.

                                      ***

THIS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS, WHICH ARE SUBJECT TO RISKS
AND UNCERTAINTIES. THE FORWARD-LOOKING STATEMENTS, WHICH ADDRESS THE COMPANY'S
EXPECTED BUSINESS AND FINANCIAL PERFORMANCE, AMONG OTHER MATTERS, CONTAIN
WORDS SUCH AS "BELIEVE," "EXPECT," "ANTICIPATE," "OPTIMISTIC," "INTEND,"
"PLAN," "AIM," "WILL," "MAY," "SHOULD," "COULD," "WOULD," "LIKELY," AND
SIMILAR EXPRESSIONS. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON
THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH
THEY ARE MADE. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER

                                     -3-
<PAGE>
MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED
TO, THE FOLLOWING: ADJUSTMENTS ARISING IN THE NORMAL COURSE OF COMPLETING THE
COMPANY'S FOURTH QUARTER AND YEAR END FINANCIAL CLOSING PROCESS; CONSUMER AND
BUSINESS SPENDING ON THE COMPANY'S CREDIT AND CHARGE CARD PRODUCTS AND
TRAVELERS CHEQUES AND OTHER PREPAID PRODUCTS AND GROWTH IN CARD LENDING
BALANCES, WHICH DEPEND IN PART ON THE ECONOMIC ENVIRONMENT, AND THE ABILITY TO
ISSUE NEW AND ENHANCED CARD AND PREPAID PRODUCTS, SERVICES AND REWARDS
PROGRAMS, AND INCREASE REVENUES FROM SUCH PRODUCTS, ATTRACT NEW CARDMEMBERS,
REDUCE CARDMEMBER ATTRITION, CAPTURE A GREATER SHARE OF EXISTING CARDMEMBERS'
SPENDING, AND SUSTAIN PREMIUM DISCOUNT RATES ON ITS CARD PRODUCTS IN LIGHT OF
REGULATORY AND MARKET PRESSURES, INCREASE MERCHANT COVERAGE, RETAIN
CARDMEMBERS AFTER LOW INTRODUCTORY LENDING RATES HAVE EXPIRED, AND EXPAND THE
GLOBAL NETWORK SERVICES BUSINESS; THE COMPANY'S ABILITY TO MANAGE CREDIT RISK
RELATED TO CONSUMER DEBT, BUSINESS LOANS, MERCHANTS AND OTHER CREDIT TRENDS,
WHICH WILL DEPEND IN PART ON THE ECONOMIC ENVIRONMENT, THE RATES OF
BANKRUPTCIES AND UNEMPLOYMENT, WHICH CAN AFFECT SPENDING ON CARD PRODUCTS,
DEBT PAYMENTS BY INDIVIDUAL AND CORPORATE CUSTOMERS AND BUSINESSES THAT ACCEPT
THE COMPANY'S CARD PRODUCTS, AND ON THE EFFECTIVENESS OF THE COMPANY'S CREDIT
MODELS; FLUCTUATIONS IN INTEREST RATES (INCLUDING FLUCTUATIONS IN BENCHMARKS,
SUCH AS LIBOR AND OTHER BENCHMARK RATES, USED TO PRICE LOANS AND OTHER
INDEBTEDNESS, AS WELL AS CREDIT SPREADS IN THE PRICING OF LOANS AND OTHER
INDEBTEDNESS), WHICH IMPACT THE COMPANY'S BORROWING COSTS, RETURN ON LENDING
PRODUCTS AND THE VALUE OF THE COMPANY'S INVESTMENTS; THE COMPANY'S ABILITY TO
MEET ITS ROE TARGET RANGE OF 33 TO36 PERCENT ON AVERAGE AND OVER TIME, WHICH
WILL DEPEND IN PART ON FACTORS SUCH AS THE COMPANY'S ABILITY TO GENERATE
SUFFICIENT REVENUE GROWTH AND ACHIEVE SUFFICIENT MARGINS, FLUCTUATIONS IN THE
CAPITAL REQUIRED TO SUPPORT ITS BUSINESSES, THE MIX OF THE COMPANY'S
FINANCINGS, AND FLUCTUATIONS IN THE LEVEL OF THE COMPANY'S SHAREHOLDERS'
EQUITY DUE TO SHARE REPURCHASES, DIVIDENDS, CHANGES IN ACCUMULATED OTHER
COMPREHENSIVE INCOME AND ACCOUNTING CHANGES, AMONG OTHER THINGS; THE ACTUAL
AMOUNT TO BE SPENT BY THE COMPANY ON MARKETING, PROMOTION, REWARDS AND
CARDMEMBER SERVICES BASED ON MANAGEMENT'S ASSESSMENT OF COMPETITIVE
OPPORTUNITIES AND OTHER FACTORS AFFECTING ITS JUDGMENT; THE ABILITY TO CONTROL
AND MANAGE OPERATING, INFRASTRUCTURE, ADVERTISING AND PROMOTION EXPENSES AS
BUSINESS EXPANDS OR CHANGES, INCLUDING THE ABILITY TO ACCURATELY ESTIMATE THE
PROVISION FOR THE COST OF THE MEMBERSHIP REWARDS PROGRAM; FLUCTUATIONS IN
FOREIGN CURRENCY EXCHANGE RATES; THE COMPANY'S ABILITY TO GROW ITS BUSINESS
AND MEET OR EXCEED ITS RETURN ON SHAREHOLDERS' EQUITY TARGET BY REINVESTING
APPROXIMATELY 35 PERCENT OF ANNUALLY-GENERATED CAPITAL, AND RETURNING
APPROXIMATELY 65 PERCENT OF SUCH CAPITAL TO SHAREHOLDERS, OVER TIME, WHICH
WILL DEPEND ON THE COMPANY'S ABILITY TO MANAGE ITS CAPITAL NEEDS AND THE
EFFECT OF BUSINESS MIX, ACQUISITIONS AND RATING AGENCY REQUIREMENTS; THE
SUCCESS OF THE GLOBAL NETWORK SERVICES BUSINESS IN PARTNERING WITH BANKS IN
THE UNITED STATES, WHICH WILL DEPEND IN PART ON THE EXTENT TO WHICH SUCH
BUSINESS FURTHER ENHANCES THE COMPANY'S BRAND, ALLOWS THE COMPANY TO LEVERAGE
ITS SIGNIFICANT PROCESSING SCALE, EXPANDS MERCHANT COVERAGE OF THE NETWORK,
PROVIDES GLOBAL NETWORK SERVICES' BANK PARTNERS IN THE UNITED STATES THE
BENEFITS OF GREATER CARDMEMBER LOYALTY AND HIGHER SPEND PER CUSTOMER, AND
MERCHANT BENEFITS SUCH AS GREATER TRANSACTION VOLUME AND ADDITIONAL HIGHER
SPENDING CUSTOMERS; TRENDS IN TRAVEL AND ENTERTAINMENT SPENDING AND THE
OVERALL LEVEL OF CONSUMER CONFIDENCE; THE COSTS AND INTEGRATION OF
ACQUISITIONS; THE UNDERLYING ASSUMPTIONS AND EXPECTATIONS RELATED TO THE SALE
OF THE AMERICAN EXPRESS BANK LTD. BUSINESSES PROVING TO BE INACCURATE OR
UNREALIZED, INCLUDING, AMONG OTHER THINGS, THE LIKELIHOOD OF AND EXPECTED
TIMING FOR COMPLETION OF THE TRANSACTION, THE PROCEEDS TO BE RECEIVED BY THE
COMPANY IN THE TRANSACTION AND THE TRANSACTION'S IMPACT ON THE COMPANY'S
EARNINGS; THE SUCCESS, TIMELINESS AND FINANCIAL IMPACT (INCLUDING COSTS, COST

                                     -4-
<PAGE>
SAVINGS AND OTHER BENEFITS INCLUDING INCREASED REVENUES), AND BENEFICIAL
EFFECT ON THE COMPANY'S OPERATING EXPENSE TO REVENUE RATIO, BOTH IN THE
SHORT-TERM AND OVER TIME, 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 (INCLUDING, AMONG OTHERS, TECHNOLOGIES OPERATIONS), RELOCATING
CERTAIN FUNCTIONS TO LOWER-COST OVERSEAS LOCATIONS, MOVING INTERNAL AND
EXTERNAL FUNCTIONS TO THE INTERNET TO SAVE COSTS, AND PLANNED STAFF REDUCTIONS
RELATING TO CERTAIN OF SUCH REENGINEERING ACTIONS; THE COMPANY'S ABILITY TO
REINVEST THE BENEFITS ARISING FROM SUCH REENGINEERING ACTIONS IN ITS
BUSINESSES; BANKRUPTCIES, RESTRUCTURINGS, CONSOLIDATIONS OR SIMILAR EVENTS
AFFECTING THE AIRLINE OR ANY OTHER INDUSTRY REPRESENTING A SIGNIFICANT PORTION
OF THE COMPANY'S BILLED BUSINESS, INCLUDING ANY POTENTIAL NEGATIVE EFFECT ON
PARTICULAR CARD PRODUCTS AND SERVICES AND BILLED BUSINESS GENERALLY THAT COULD
RESULT FROM THE ACTUAL OR PERCEIVED WEAKNESS OF KEY BUSINESS PARTNERS IN SUCH
INDUSTRIES; THE TRIGGERING OF OBLIGATIONS TO MAKE PAYMENTS TO CERTAIN CO-BRAND
PARTNERS, MERCHANTS, VENDORS AND CUSTOMERS UNDER CONTRACTUAL ARRANGEMENTS WITH
SUCH PARTIES UNDER CERTAIN CIRCUMSTANCES; A DOWNTURN IN THE COMPANY'S
BUSINESSES AND/OR NEGATIVE CHANGES IN THE COMPANY'S AND ITS SUBSIDIARIES'
CREDIT RATINGS, WHICH COULD RESULT IN CONTINGENT PAYMENTS UNDER CONTRACTS,
DECREASED LIQUIDITY AND HIGHER BORROWING COSTS; ACCURACY OF ESTIMATES FOR THE
FAIR VALUE OF THE ASSETS IN THE COMPANY'S INVESTMENT PORTFOLIO AND, IN
PARTICULAR, THOSE INVESTMENTS THAT ARE NOT READILY MARKETABLE, INCLUDING THE
VALUATION OF THE INTEREST-ONLY STRIP RELATING TO THE COMPANY'S LENDING
SECURITIZATIONS; THE COMPANY'S ABILITY TO INVEST IN TECHNOLOGY ADVANCES ACROSS
ALL AREAS OF ITS BUSINESS TO STAY ON THE LEADING EDGE OF TECHNOLOGIES
APPLICABLE TO THE PAYMENTS INDUSTRY; THE COMPANY'S ABILITY TO PROTECT ITS
INTELLECTUAL PROPERTY RIGHTS (IP) AND AVOID INFRINGING THE IP OF OTHER
PARTIES; THE POTENTIAL NEGATIVE EFFECT ON THE COMPANY'S BUSINESSES AND
INFRASTRUCTURE, INCLUDING INFORMATION TECHNOLOGY, OF TERRORIST ATTACKS,
NATURAL DISASTERS OR OTHER CATASTROPHIC EVENTS IN THE FUTURE; POLITICAL OR
ECONOMIC INSTABILITY IN CERTAIN REGIONS OR COUNTRIES, WHICH COULD AFFECT
LENDING AND OTHER COMMERCIAL ACTIVITIES, AMONG OTHER BUSINESSES, OR
RESTRICTIONS ON CONVERTIBILITY OF CERTAIN CURRENCIES; CHANGES IN LAWS OR
GOVERNMENT REGULATIONS; ACCOUNTING CHANGES; OUTCOMES AND COSTS ASSOCIATED WITH
LITIGATION AND COMPLIANCE AND REGULATORY MATTERS; AND COMPETITIVE PRESSURES IN
ALL OF THE COMPANY'S MAJOR BUSINESSES. A FURTHER DESCRIPTION OF THESE AND
OTHER RISKS AND UNCERTAINTIES CAN BE FOUND IN THE COMPANY'S ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2006, AND ITS OTHER REPORTS FILED
WITH THE SEC.

                                      ***

                                     -5-
<PAGE>

APPENDIX I

                           AMERICAN EXPRESS COMPANY
                              U.S. CARD SERVICES
<TABLE>
<CAPTION>
(BILLIONS, EXCEPT PERCENTAGES AND WHERE INDICATED)

                                                     Estimated Quarter Ended            Quarter Ended
                                                     December 31, 2007                  September 30, 2007

<S>                                                         <C>                           <C>
Cardmember lending - owned basis (A):
  Total Loans                                                  $43.3                         $40.0
  30 days past due loans as a % of total                         3.5%                          3.1%
  Average Loans                                                $40.9                         $38.6
  Net write-off rate                                             4.3%                          3.7%

Cardmember lending - managed basis (B)(C):
  Total Loans                                                  $66.0                         $61.5
  30 days past due loans as a % of total                         3.2%                          2.9%
  Average Loans                                                $63.2                         $60.0
  Net write-off rate                                             4.3%                          3.7%


                                                     Estimated Year Ending
                                                     December 31, 2008

Cardmember lending - owned basis (A):
  Average Loans                                                $44.1
  Net write-off rate                                         5.2-5.4%

Cardmember lending - managed basis (B)(C):
  Average Loans                                                $69.4
  Net write-off rate                                         5.1-5.3%
</TABLE>


(A) "Owned," a GAAP basis measurement, reflects only Cardmember loans included
in the Company's Consolidated Balance Sheets.

(B) Includes on-balance sheet Cardmember loans and off-balance sheet
securitized Cardmember loans. The difference between the "owned basis" (GAAP)
information and "managed basis" information is attributable to the effects of
securitization activities.

(C) For U.S. Card Services, the managed basis presentation assumes that there
have been no off-balance sheet securitization transactions, i.e., all
securitized Cardmember loans and related income effects are reflected as if
they were in the Company's balance sheets and income statements, respectively.

The Company presents U.S. Card Services information on a managed basis because
that is the way the Company's management views and manages the business.
Management believes that a full picture of trends in the Company's Cardmember
lending business can only be derived by evaluating the performance of both
securitized and non-securitized Cardmember loans. Management also believes
that use of a managed basis presentation presents a more accurate picture of
the key dynamics of the Cardmember lending business. Irrespective of the on
and off-balance sheet funding mix, it is important for management and
investors to see metrics for the entire Cardmember lending portfolio because
they are more representative of the economics of the aggregate Cardmember
relationships and ongoing business performance and trends over time. It is
also important for investors to see the overall growth of Cardmember loans and
related revenue in order to evaluate market share. These metrics are
significant in evaluating the Company's performance and can only be properly
assessed when all non-securitized and securitized Cardmember loans are viewed
together on a managed basis. The Company does not currently securitize
international loans.


                                     -6-
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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