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<SEC-DOCUMENT>0000004962-08-000025.txt : 20081020
<SEC-HEADER>0000004962-08-000025.hdr.sgml : 20081020
<ACCEPTANCE-DATETIME>20081020161611
ACCESSION NUMBER:		0000004962-08-000025
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20081020
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20081020
DATE AS OF CHANGE:		20081020

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:		081131584

	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>thirdqearningswrap.txt
<DESCRIPTION>8-K AMERICAN EXPRESS COMPANY EARNINGS RELEASE
<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): October 20, 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.)


       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 AND ITEM 7.01 REGULATION
FD DISCLOSURE

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

     On October 20, 2008, American Express Company issued a press release
announcing its financial results for the third quarter of 2008. A copy of such
press release is attached to this report as Exhibit 99.1 and is hereby
incorporated herein by reference. In addition, in conjunction with the
announcement of its financial results, American Express Company distributed
additional financial information relating to its 2008 third quarter financial
results and a 2008 Third Quarter Earnings Supplement. Such additional financial
information and the 2008 Third Quarter Earnings Supplement are attached to this
report as Exhibits 99.2 and 99.3, respectively, and each is hereby incorporated
by reference.


EXHIBIT

99.1      Press Release, dated October 20, 2008, of American Express Company
          announcing its financial results for the third quarter of 2008.

99.2      Additional financial information relating to the financial results of
          American Express Company for the third quarter of 2008.

99.3      2008 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 20, 2008

<PAGE>

                                  EXHIBIT INDEX


Exhibit
No.         Description
- ---------   -----------
99.1        Press Release, dated October 20, 2008, of American Express Company
            announcing its financial results for the third quarter of 2008.

99.2        Additional financial information relating to the financial
            results of American Express Company for the third quarter of
            2008.

99.3        2008 Third Quarter Earnings Supplement of American Express Company.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99_1pressrelease.txt
<DESCRIPTION>EXHIBIT 99.1 PRESS RELEASE
<TEXT>
                                                                    EXHIBIT 99.1

NEWS RELEASE    NEWS RELEASE    NEWS RELEASE    NEWS RELEASE    NEWS RELEASE

[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
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------

                 AMERICAN EXPRESS THIRD QUARTER REVENUES RISE
                EARNINGS DECLINE ON INCREASED CREDIT PROVISIONS


                     (Millions, except per share amounts)

                                                Quarters Ended          Percentage         Nine Months Ended       Percentage
                                                 September 30,           Inc/(Dec)           September 30,          Inc/(Dec)
                                                 -------------           ---------           -------------          ---------
                                               2008          2007                          2008         2007
                                               ----          ----                          ----         ----
<S>                                    <C>            <C>                <C>       <C>           <C>                <C>
   Revenues net of interest expense        $  7,164       $ 6,956            3%        $ 21,859      $ 20,235           8%

   Income From Continuing Operations       $    861       $ 1,122          (23)%       $  2,565      $  3,268         (22)%
   Loss From Discontinued Operations       $    (46)      $   (55)         (16)%       $   (106)     $    (87)         22%
   Net Income                              $    815       $ 1,067          (24)%       $  2,459      $  3,181         (23)%

   Earnings Per Common Share - Basic:
      Income From Continuing Operations    $   0.75       $  0.96          (22)%       $   2.22      $   2.77         (20)%
      Loss From Discontinued Operations    $  (0.04)      $ (0.05)         (20)%       $  (0.09)     $  (0.07)         29%
      Net Income                           $   0.71       $  0.91          (22)%       $   2.13      $   2.70         (21)%

   Earnings Per Common Share - Diluted:
      Income From Continuing Operations    $   0.74       $  0.94          (21)%       $   2.21      $   2.72         (19)%
      Loss From Discontinued Operations    $  (0.04)      $ (0.04)           -%        $  (0.09)     $  (0.07)         29%
      Net Income                           $   0.70       $  0.90          (22)%       $   2.12      $   2.65         (20)%

   Average Common Shares Outstanding
      Basic                                   1,154         1,170           (1)%          1,154         1,179         (2)%
      Diluted                                 1,158         1,192           (3)%          1,161         1,202         (3)%

   Return on Average Equity*                   27.8%         38.2%                         27.8%         38.2%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Refer to Appendix I for the components of return on average equity.

# Denotes a variance of more than 100%.

<PAGE>
New York - October 20, 2008 - American Express Company (NYSE: AXP) today
reported third-quarter income from continuing operations of $861 million, down
23 percent from $1.1 billion a year ago. Diluted earnings per share from
continuing operations were $0.74, down 21 percent from $0.94 a year ago.

Net income totaled $815 million for the quarter, down 24 percent from a year
ago. On a per-share basis, net income was $0.70, down 22 percent from $0.90 a
year ago.

Consolidated revenues net of interest expense rose 3 percent to $7.2 billion,
up from $7.0 billion a year ago.

Consolidated expenses totaled $4.7 billion, up 4 percent from $4.5 billion a
year ago.

Consolidated provisions for losses totaled $1.4 billion, up 51 percent from
$905 million a year ago.

The Company's return on average equity (ROE) was 27.8 percent, down from 38.2
percent a year ago.

"While we continued to generate a substantial level of earnings this quarter,
bottom line results were down from a year ago as growth in Cardmember spending
slowed, lending volumes moderated, and we set aside significant additions to
our loan loss reserves," said Kenneth I. Chenault, chairman and chief
executive officer.

"We saw clear signs earlier this year of a weakening environment and the
recent volatility in the financial markets has reinforced our view that
consumer and business sentiment is likely to deteriorate further, translating
into weaker economies around the globe well into 2009. Cardmember spending is
likely to remain soft. Loan growth will be restrained, in part because of the
steps we are taking to reduce credit risks, and credit indicators are likely
to reflect the continued downturn in the economy and throughout the housing
sector.

"Against this backdrop, we are moving ahead with reengineering plans that will
free up resources by reducing operating costs and staffing levels. We expect
to complete aspects of this work shortly and, as indicated earlier, to
recognize a restructuring-related charge in the fourth quarter to cover the
costs of these actions.

"Our business model is well positioned to generate earnings and excess capital
even in an economic environment that is likely to be among the weakest in many
years. We believe we have the capital strength, funding resources and
comprehensive liquidity plans to manage successfully through difficult market
conditions.


                                     -2-
<PAGE>
"We remain confident in our ability to emerge from the downturn in a stronger
competitive position and continue to see growth opportunities in the payments
sector. For now, though, we plan to be very selective with our investment
dollars, balancing near term performance with longer term profitability."


DISCONTINUED OPERATIONS

Discontinued operations for the third quarter generated a loss of $46 million
compared with a loss of $55 million during the year-ago period, which
primarily reflected the results of American Express International Deposit
Company, an affiliate of the former American Express Bank anticipated to be
sold in the third quarter 2009.


SEGMENT RESULTS

U.S. CARD SERVICES reported third-quarter net income of $244 million, down
from $592 million a year ago.

Revenues net of interest expense for the third quarter decreased 4 percent to
$3.5 billion, driven by lower securitization income, net. This decrease was
partially offset by higher net interest income and higher Cardmember spending.

Total expenses increased 6 percent. Marketing, promotion, rewards and
Cardmember services expenses increased 5 percent from the year-ago period
reflecting increased rewards and costs of Cardmember services, which were
partially offset by lower investments in marketing and promotion. Human
resources and other operating expenses increased 7 percent from the year-ago
period primarily driven by investments in technology and increased credit and
collection costs.

Provisions for losses increased to $941 million, up from $638 million a year
ago, reflecting increased write-off and past due rates driven by the impact of
the economic slowdown. On a managed basis* the net loan write-off rate was
5.9%, up from 5.3% in the second quarter and 3.0% a year ago. Owned net
write-offs were 6.1% in the quarter, up from 5.8% in the second quarter and
3.0% a year ago.


- ----------------------------------------------------
*   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 Exhibit I for further discussion of the owned and
managed basis presentation.


                                     -3-
<PAGE>
INTERNATIONAL CARD SERVICES reported third-quarter net income of $67 million,
down 52 percent from $140 million a year ago.

Revenues net of interest expense increased 11 percent to $1.2 billion,
reflecting higher Cardmember spending and borrowing.

Total expenses increased 13 percent reflecting higher volumes and
business-building investments. Human resources and other operating expenses
increased 16 percent from year-ago levels due to higher human resources
expense, greater professional services expense and increased other operating
expenses. Marketing, promotion, rewards and Cardmember services expenses
increased 10 percent reflecting greater marketing and promotion expenses and
higher volume related rewards costs.

Provisions for losses rose to $316 million, from $197 million a year ago
reflecting higher past due and write-off rates as well as loan and business
volume growth.

GLOBAL COMMERCIAL SERVICES reported third-quarter net income of $134 million
compared to $135 million a year ago.

Revenues net of interest expense increased 13 percent to $1.2 billion,
reflecting higher spending by corporate Cardmembers as well as increased
travel commissions and fees.

Total expenses increased 14 percent. Human resources and other operating
expenses increased 12 percent from the year-ago period. Marketing, promotion,
rewards and Cardmember services expenses increased 31 percent from the
year-ago period primarily reflecting a reallocation of rewards costs from U.S.
Card Services.

Both the revenue and expense growth rates were affected by the acquisition of
a commercial card and corporate purchasing unit in March 2008.

Provision for losses totaled $60 million up from $42 million in the year ago
period due to higher write-offs and past due rates.

GLOBAL NETWORK & MERCHANT SERVICES reported third-quarter net income of $258
million, down 3 percent from $266 million a year ago.

Revenues net of interest expense for the third quarter increased 9 percent to
$1.1 billion. The increase reflected continued growth in merchant-related
revenue, primarily from higher company-wide billed business and higher
revenues from Global Network Services' bank partners.


                                     -4-
<PAGE>
Spending on Global Network Services cards increased 29 percent from year-ago
levels, reflecting growth in spending on cards issued by bank partners.
Cards-in-force issued by bank partners increased 25 percent.

Total expenses increased 11 percent, reflecting higher human resources costs
driven in part by an expansion of the merchant sales force.

Provision for losses increased to $43 million from $23 million in the prior
year reflecting greater merchant-related provisions in the third quarter of
2008 compared to a year ago.

CORPORATE AND OTHER reported a third-quarter net gain of $158 million,
compared with a net loss of $11 million from a year ago. The net gain reflects
the recognition of $220 million ($136 million after-tax) for the previously
announced MasterCard and Visa settlements and tax benefits due to the revision
of the Company's estimated annual effective tax rate.

American Express Company is a leading global payments and travel company
founded in 1850. For more information, visit www.americanexpress.com.

                                      ***

Note: The 2008 Third Quarter Earnings Supplement will be available today on
the American Express web site at http://ir.americanexpress.com. An investor
conference call will be held at 5:00 p.m. (EDT) today to discuss third-quarter
earnings results. Live audio and presentation slides for the investor
conference call will be available to the general public at
http://ir.americanexpress.com. A replay of the conference call will be
available later today at the same web site address.

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
materially from these forward-looking statements include, but are not limited
to, the following: 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,


                                     -6-
<PAGE>
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, including, among things, the housing market, 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; the impact of the Company's efforts to deal with delinquent
Cardmembers in the current challenging economic environment, which may affect
payment patterns of Cardmembers, the Company's near-term write-off rates,
including during the remainder of 2008 and in 2009, and the volumes of the
Company's loan balances in 2008 and 2009; the write-off and delinquency rates
in the medium- to long-term of Cardmembers added by the Company during the
past few years, which could impact their profitability to the Company; the
Company's ability to effectively implement changes in the pricing of certain
of its products and services; fluctuations in interest rates (including
fluctuations in benchmarks, such as LIBOR and other benchmark rates, and
credit spreads), 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 to 36 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,
generate excess capital and, over time, 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 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


                                     -7-
<PAGE>
additional higher spending customers; the ability of the Global Network
Services business to meet the performance requirements called for by the
Company's recent settlements with MasterCard and VISA; trends in travel and
entertainment spending and the overall level of consumer confidence; the
uncertainties associated with business acquisitions, including, among others,
the failure to realize anticipated business retention, growth and cost
savings, as well as the ability to effectively integrate the acquired business
into the Company's existing operations; the underlying assumptions and
expectations related to the February 2008 sale of the American Express Bank
Ltd. businesses and the transaction's impact on the Company's earnings proving
to be inaccurate or unrealized; the success, timeliness and financial impact
(including costs, cost savings and other benefits including increased
revenues), and beneficial effect on the Company's operating expense to revenue
ratio, both in the short-term (including during 2009) 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 (including, among others, the
proposed Delta Airlines/Northwest Airlines merger) 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; the ability of the Company to satisfy its
liquidity needs and execute on its funding plans, which will depend on, among
other things, the Company's future business growth, its credit ratings, market
capacity and demand for securities offered by the Company, performance by the
Company's counterparties under its bank credit facilities and other lending
facilities, regulatory changes, including changes to the policies, rules and
regulations of the Board of Governors of the Federal Reserve System and the
Federal Reserve Bank of San Francisco, the Company's ability to securitize and
sell receivables and the performance of receivables previously sold in
securitization transactions and the Company's ability to meet the criteria for
participation in certain liquidity facilities and other funding programs,
including the Commercial Paper Funding Facility and the Temporary Liquidity
Guarantee Program, being made available through the Federal Reserve Bank of
New York, the Federal Deposit Insurance Corporation and other federal
departments and agencies; 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; the potential
impact of regulations proposed by federal bank regulators relating to certain
credit and charge card practices, including, among others, the imposition by
card issuers of interest rate increases on outstanding balances and the
allocation of payments in respect of outstanding balances with different
interest rates, which could have an adverse impact on the Company's net
income; 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, 2007, and its other reports filed with the SEC.

                                     -8-
<PAGE>
EXHIBIT I
                           AMERICAN EXPRESS COMPANY
                              U.S. Card Services
<TABLE>
<CAPTION>
(Billions, except percentages)

                                            Quarter Ended        Quarter Ended       Quarter Ended
                                            September 30, 2008   June 30, 2008       September 30, 2007
                                            ------------------   ------------------  ------------------
<S>                                          <C>                  <C>                 <C>
Cardmember lending - owned basis (A):
  Average Loans                                $  36.3              $  38.0             $  38.6
  Net write-off rate (B)                           6.1%                 5.8%                3.0%

Cardmember lending - managed basis (C):
   Average Loans                               $  64.7              $  64.2             $  60.0
   Net write-off rate (B)                          5.9%                 5.3%                3.0%
</TABLE>


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

(B) In the third quarter 2008, the Company revised its method of reporting the
Cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. Accordingly,
the Company is presenting the net write-off rate to reflect the net write-off
amounts for principal only.

(C) 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 difference between the "owned
basis" (GAAP) information and "managed basis" information is attributable to
the effects of securitization activities. 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.


                                      -9-
<PAGE>

All information in the following tables is presented on a basis prepared in
accordance with U.S. generally accepted accounting principles (GAAP), unless
otherwise indicated. Amounts have been revised to reflect American Express
International Deposit Company (AEIDC) activities as discontinued operations
and to remove AEIDC from the Corporate & Other segment.

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                       CONSOLIDATED STATEMENTS OF INCOME

(Millions)

<Table>
<Caption>
                                                         Quarters Ended                 Nine Months Ended
                                                           September 30,                  September 30,
                                                         ---------------   Percentage   -----------------   Percentage
                                                          2008     2007     Inc/(Dec)     2008      2007     Inc/(Dec)
                                                         ------   ------   ----------   -------   -------   ----------
<S>                                                      <C>      <C>          <C>      <C>       <C>          <C>
Revenues
  Discount revenue                                       $3,848   $3,659         5%     $11,557   $10,684        8%
  Net card fees                                             577      522        11        1,720     1,506       14
  Travel commissions and fees                               499      484         3        1,566     1,412       11
  Other commissions and fees                                573      644       (11)       1,785     1,767        1
  Securitization income, net                                200      392       (49)         871     1,181      (26)
  Other                                                     551      443        24        1,588     1,256       26
                                                         ------   ------                -------   -------
     Total                                                6,248    6,144         2       19,087    17,806        7
                                                         ------   ------                -------   -------
Interest income
  Cardmember lending finance revenue                      1,521    1,581        (4)       4,667     4,463        5
  Other                                                     238      239         -          723       756       (4)
                                                         ------   ------                -------   -------
     Total                                                1,759    1,820        (3)       5,390     5,219        3
                                                         ------   ------                -------   -------
         Total revenues                                   8,007    7,964         1       24,477    23,025        6
                                                         ------   ------                -------   -------
Interest expense
  Cardmember lending                                        346      444       (22)       1,127     1,260      (11)
  Charge card and other                                     497      564       (12)       1,491     1,530       (3)
                                                         ------   ------                -------   -------
     Total                                                  843    1,008       (16)       2,618     2,790       (6)
                                                         ------   ------                -------   -------
Revenues net of interest expense                          7,164    6,956         3       21,859    20,235        8
                                                         ------   ------                -------   -------

Expenses
  Marketing, promotion, rewards
      and cardmember services                             1,929    1,810         7        5,609     5,098       10
  Human resources                                         1,465    1,366         7        4,430     4,001       11
  Professional services                                     608      539        13        1,764     1,634        8
  Occupancy and equipment                                   398      374         6        1,185     1,054       12
  Communications                                            118      118         -          348       342        2
  Other, net                                                200      339       (41)         770       979      (21)
                                                         ------   ------                -------   -------
     Total                                                4,718    4,546         4       14,106    13,108        8
                                                         ------   ------                -------   -------
Provisions for losses
  Charge card                                               351      279        26          937       721       30
  Cardmember lending                                        958      579        65        3,304     1,791       84
  Other                                                      59       47        26          199        79        #
                                                         ------   ------                -------   -------
     Total                                                1,368      905        51        4,440     2,591       71
                                                         ------   ------                -------   -------
Pretax income from continuing operations                  1,078    1,505       (28)       3,313     4,536      (27)
Income tax provision                                        217      383       (43)         748     1,268      (41)
                                                         ------   ------                -------   -------
Income from continuing operations                           861    1,122       (23)       2,565     3,268      (22)
Loss from discontinued operations, net of tax               (46)     (55)      (16)        (106)      (87)      22
                                                         ------   ------                -------   -------
Net income                                               $  815   $1,067       (24)     $ 2,459   $ 3,181      (23)
                                                         ======   ======                =======   =======
</Table>

# - Denotes a variance of more than 100%.

                                      -10-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                     CONDENSED CONSOLIDATED BALANCE SHEETS

(Billions)

<Table>
<Caption>

                                                   September 30,   December 31,
                                                       2008           2007
                                                   -------------   ------------
<S>                                                    <C>             <C>
Assets
  Cash and cash equivalents                            $ 16            $  9
  Accounts receivable                                    41              42
  Investments                                            13              13
  Loans                                                  44              53
  Other assets                                           12              11
  Assets of discontinued operations                       1              22
                                                       ----            ----
    Total assets                                       $127            $150
                                                       ====            ====

Liabilities and Shareholders' Equity
  Short-term debt                                      $ 14            $ 18
  Long-term debt                                         58              55
  Other liabilities                                      41              44
  Liabilities of discontinued operations                  1              22
                                                       ----            ----
    Total liabilities                                   114             139
                                                       ----            ----

  Shareholders' equity                                   13              11
                                                       ----            ----
    Total liabilities and shareholders' equity         $127            $150
                                                       ====            ====
</Table>

                                      -11-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                               FINANCIAL SUMMARY

(Millions)

<Table>
<Caption>
                                                         Quarters Ended                 Nine Months Ended
                                                           September 30,                    September 30,
                                                         ---------------   Percentage   -----------------   Percentage
                                                          2008     2007     Inc/(Dec)     2008      2007     Inc/(Dec)
                                                         ------   ------   ----------   -------   -------   ----------
<S>                                                      <C>      <C>         <C>       <C>       <C>          <C>
REVENUES NET OF INTEREST EXPENSE
  U.S. Card Services                                     $3,459   $3,589       (4)%     $10,774   $10,513        2%
  International Card Services                             1,232    1,114       11       $ 3,683     3,142       17
  Global Commercial Services                              1,200    1,064       13       $ 3,652     3,141       16
  Global Network & Merchant Services                      1,071      980        9       $ 3,157     2,823       12
                                                         ------   ------                -------   -------
                                                          6,962    6,747        3        21,266    19,619        8
  Corporate & Other,
    including adjustments and eliminations                  202      209       (3)          593       616       (4)
                                                         ------   ------                -------   -------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE            $7,164   $6,956        3       $21,859   $20,235        8
                                                         ======   ======                =======   =======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
  U.S. Card Services                                     $  364   $  912      (60)      $ 1,092   $ 2,770      (61)
  International Card Services                                 1      110      (99)      $   191       298      (36)
  Global Commercial Services                                191      187        2       $   735       600       23
  Global Network & Merchant Services                        397      389        2       $ 1,187     1,181        1
                                                         ------   ------                -------   -------
                                                            953    1,598      (40)        3,205     4,849      (34)
  Corporate & Other                                         125      (93)       #           108      (313)       #
                                                         ------   ------                -------   -------

PRETAX INCOME FROM CONTINUING OPERATIONS                 $1,078   $1,505      (28)      $ 3,313   $ 4,536      (27)
                                                         ======   ======                =======   =======

NET INCOME (LOSS)
  U.S. Card Services                                     $  244   $  592      (59)      $   788   $ 1,816      (57)
  International Card Services                                67      140      (52)      $   315       359      (12)
  Global Commercial Services                                134      135       (1)      $   512       426       20
  Global Network & Merchant Services                        258      266       (3)      $   780       768        2
                                                         ------   ------                -------   -------
                                                            703    1,133      (38)        2,395     3,369      (29)

  Corporate & Other                                         158      (11)       #           170      (101)       #
                                                         ------   ------                -------   -------
  Income from continuing operations                         861    1,122      (23)        2,565     3,268      (22)
  Loss from discontinued operations, net of tax             (46)     (55)     (16)         (106)      (87)      22
                                                         ------   ------                -------   -------

NET INCOME                                               $  815   $1,067      (24)      $ 2,459   $ 3,181      (23)
                                                         ======   ======                =======   =======
</Table>

# - Denotes a variance of more than 100%.

                                      -12-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                         FINANCIAL SUMMARY (CONTINUED)

<Table>
<Caption>
                                                         Quarters Ended                 Nine Months Ended
                                                          September 30,                    September 30,
                                                         ---------------   Percentage   -----------------   Percentage
                                                          2008     2007     Inc/(Dec)     2008      2007     Inc/(Dec)
                                                         ------  -------   ----------   -------   -------   ----------
<S>                                                      <C>     <C>          <C>       <C>       <C>         <C>
EARNINGS PER COMMON SHARE

BASIC
      Income from continuing operations                  $ 0.75  $ 0.96       (22)%     $ 2.22    $ 2.77      (20)%
      Loss from discontinued operations                   (0.04)  (0.05)      (20)       (0.09)    (0.07)      29
                                                         ------  ------                 ------    ------
      Net income                                         $ 0.71  $ 0.91       (22)%     $ 2.13    $ 2.70      (21)%
                                                         ======  ======                 ======    ======

      Average common shares outstanding (millions)        1,154   1,170        (1)%      1,154     1,179       (2)%
                                                         ======  ======                 ======    ======

DILUTED
      Income from continuing operations                  $ 0.74  $ 0.94       (21)%     $ 2.21    $ 2.72      (19)%
      Loss from discontinued operations                   (0.04)  (0.04)        -        (0.09)    (0.07)      29
                                                         ------  ------                 ------    ------
      Net income                                         $ 0.70  $ 0.90       (22)%     $ 2.12    $ 2.65      (20)%
                                                         ======  ======                 ======    ======

      Average common shares outstanding (millions)        1,158   1,192        (3)%      1,161     1,202       (3)%
                                                         ======  ======                 ======    ======

Cash dividends declared per common share                 $ 0.18  $ 0.15        20%      $ 0.54    $ 0.45       20%
                                                         ======  ======                 ======    ======
</Table>

                       SELECTED STATISTICAL INFORMATION

<Table>
<Caption>
                                                          Quarters Ended                 Nine Months Ended
                                                           September 30,                    September 30,
                                                         ----------------   Percentage   -----------------   Percentage
                                                           2008     2007     Inc/(Dec)     2008      2007     Inc/(Dec)
                                                         -------   ------   ----------   -------   -------   ----------
<S>                                                       <C>      <C>          <C>       <C>       <C>         <C>
Return on average equity (A)                                27.8%    38.2%                  27.8%     38.2%
Return on average tangible equity (A)                       34.4%    44.9%                  34.4%     44.9%
Common shares outstanding (millions)                       1,160    1,169       (1)%       1,160     1,169      (1)%
Book value per common share                               $10.79   $ 9.32       16%       $10.79    $ 9.32      16%
Shareholders' equity (billions)                           $ 12.5   $ 10.9       15%       $ 12.5    $ 10.9      15%
</Table>

# - Denotes a variance of more than 100%.

(A) Refer to Appendix I for components of return on average equity and return
on average tangible equity.

                                      -13-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99_2financials.txt
<DESCRIPTION>EXHIBIT 99.2 FINANCIALS
<TEXT>
                                                                EXHIBIT 99.2

All information in the following tables is presented on a basis prepared in
accordance with U.S. generally accepted accounting principles (GAAP), unless
otherwise indicated. Amounts have been revised to reflect American Express
International Deposit Company (AEIDC) activities as discontinued operations
and to remove AEIDC from the Corporate & Other segment.

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                       CONSOLIDATED STATEMENTS OF INCOME

(Millions)

<Table>
<Caption>
                                                         Quarters Ended                 Nine Months Ended
                                                           September 30,                  September 30,
                                                         ---------------   Percentage   -----------------   Percentage
                                                          2008     2007     Inc/(Dec)     2008      2007     Inc/(Dec)
                                                         ------   ------   ----------   -------   -------   ----------
<S>                                                      <C>      <C>          <C>      <C>       <C>          <C>
Revenues
  Discount revenue                                       $3,848   $3,659         5%     $11,557   $10,684        8%
  Net card fees                                             577      522        11        1,720     1,506       14
  Travel commissions and fees                               499      484         3        1,566     1,412       11
  Other commissions and fees                                573      644       (11)       1,785     1,767        1
  Securitization income, net                                200      392       (49)         871     1,181      (26)
  Other                                                     551      443        24        1,588     1,256       26
                                                         ------   ------                -------   -------
     Total                                                6,248    6,144         2       19,087    17,806        7
                                                         ------   ------                -------   -------
Interest income
  Cardmember lending finance revenue                      1,521    1,581        (4)       4,667     4,463        5
  Other                                                     238      239         -          723       756       (4)
                                                         ------   ------                -------   -------
     Total                                                1,759    1,820        (3)       5,390     5,219        3
                                                         ------   ------                -------   -------
         Total revenues                                   8,007    7,964         1       24,477    23,025        6
                                                         ------   ------                -------   -------
Interest expense
  Cardmember lending                                        346      444       (22)       1,127     1,260      (11)
  Charge card and other                                     497      564       (12)       1,491     1,530       (3)
                                                         ------   ------                -------   -------
     Total                                                  843    1,008       (16)       2,618     2,790       (6)
                                                         ------   ------                -------   -------
Revenues net of interest expense                          7,164    6,956         3       21,859    20,235        8
                                                         ------   ------                -------   -------

Expenses
  Marketing, promotion, rewards
      and cardmember services                             1,929    1,810         7        5,609     5,098       10
  Human resources                                         1,465    1,366         7        4,430     4,001       11
  Professional services                                     608      539        13        1,764     1,634        8
  Occupancy and equipment                                   398      374         6        1,185     1,054       12
  Communications                                            118      118         -          348       342        2
  Other, net                                                200      339       (41)         770       979      (21)
                                                         ------   ------                -------   -------
     Total                                                4,718    4,546         4       14,106    13,108        8
                                                         ------   ------                -------   -------
Provisions for losses
  Charge card                                               351      279        26          937       721       30
  Cardmember lending                                        958      579        65        3,304     1,791       84
  Other                                                      59       47        26          199        79        #
                                                         ------   ------                -------   -------
     Total                                                1,368      905        51        4,440     2,591       71
                                                         ------   ------                -------   -------
Pretax income from continuing operations                  1,078    1,505       (28)       3,313     4,536      (27)
Income tax provision                                        217      383       (43)         748     1,268      (41)
                                                         ------   ------                -------   -------
Income from continuing operations                           861    1,122       (23)       2,565     3,268      (22)
Loss from discontinued operations, net of tax               (46)     (55)      (16)        (106)      (87)      22
                                                         ------   ------                -------   -------
Net income                                               $  815   $1,067       (24)     $ 2,459   $ 3,181      (23)
                                                         ======   ======                =======   =======
</Table>

# - Denotes a variance of more than 100%.

                                       -1-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                     CONDENSED CONSOLIDATED BALANCE SHEETS

(Billions)

<Table>
<Caption>

                                                   September 30,   December 31,
                                                       2008           2007
                                                   -------------   ------------
<S>                                                    <C>             <C>
Assets
  Cash and cash equivalents                            $ 16            $  9
  Accounts receivable                                    41              42
  Investments                                            13              13
  Loans                                                  44              53
  Other assets                                           12              11
  Assets of discontinued operations                       1              22
                                                       ----            ----
    Total assets                                       $127            $150
                                                       ====            ====

Liabilities and Shareholders' Equity
  Short-term debt                                      $ 14            $ 18
  Long-term debt                                         58              55
  Other liabilities                                      41              44
  Liabilities of discontinued operations                  1              22
                                                       ----            ----
    Total liabilities                                   114             139
                                                       ----            ----

  Shareholders' equity                                   13              11
                                                       ----            ----
    Total liabilities and shareholders' equity         $127            $150
                                                       ====            ====
</Table>

                                       -2-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                               FINANCIAL SUMMARY

(Millions)

<Table>
<Caption>
                                                         Quarters Ended                 Nine Months Ended
                                                           September 30,                    September 30,
                                                         ---------------   Percentage   -----------------   Percentage
                                                          2008     2007     Inc/(Dec)     2008      2007     Inc/(Dec)
                                                         ------   ------   ----------   -------   -------   ----------
<S>                                                      <C>      <C>         <C>       <C>       <C>          <C>
REVENUES NET OF INTEREST EXPENSE
  U.S. Card Services                                     $3,459   $3,589       (4)%     $10,774   $10,513        2%
  International Card Services                             1,232    1,114       11       $ 3,683     3,142       17
  Global Commercial Services                              1,200    1,064       13       $ 3,652     3,141       16
  Global Network & Merchant Services                      1,071      980        9       $ 3,157     2,823       12
                                                         ------   ------                -------   -------
                                                          6,962    6,747        3        21,266    19,619        8
  Corporate & Other,
    including adjustments and eliminations                  202      209       (3)          593       616       (4)
                                                         ------   ------                -------   -------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE            $7,164   $6,956        3       $21,859   $20,235        8
                                                         ======   ======                =======   =======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
  U.S. Card Services                                     $  364   $  912      (60)      $ 1,092   $ 2,770      (61)
  International Card Services                                 1      110      (99)      $   191       298      (36)
  Global Commercial Services                                191      187        2       $   735       600       23
  Global Network & Merchant Services                        397      389        2       $ 1,187     1,181        1
                                                         ------   ------                -------   -------
                                                            953    1,598      (40)        3,205     4,849      (34)
  Corporate & Other                                         125      (93)       #           108      (313)       #
                                                         ------   ------                -------   -------

PRETAX INCOME FROM CONTINUING OPERATIONS                 $1,078   $1,505      (28)      $ 3,313   $ 4,536      (27)
                                                         ======   ======                =======   =======

NET INCOME (LOSS)
  U.S. Card Services                                     $  244   $  592      (59)      $   788   $ 1,816      (57)
  International Card Services                                67      140      (52)      $   315       359      (12)
  Global Commercial Services                                134      135       (1)      $   512       426       20
  Global Network & Merchant Services                        258      266       (3)      $   780       768        2
                                                         ------   ------                -------   -------
                                                            703    1,133      (38)        2,395     3,369      (29)

  Corporate & Other                                         158      (11)       #           170      (101)       #
                                                         ------   ------                -------   -------
  Income from continuing operations                         861    1,122      (23)        2,565     3,268      (22)
  Loss from discontinued operations, net of tax             (46)     (55)     (16)         (106)      (87)      22
                                                         ------   ------                -------   -------

NET INCOME                                               $  815   $1,067      (24)      $ 2,459   $ 3,181      (23)
                                                         ======   ======                =======   =======
</Table>

# - Denotes a variance of more than 100%.

                                       -3-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                         FINANCIAL SUMMARY (CONTINUED)

<Table>
<Caption>
                                                         Quarters Ended                 Nine Months Ended
                                                          September 30,                    September 30,
                                                         ---------------   Percentage   -----------------   Percentage
                                                          2008     2007     Inc/(Dec)     2008      2007     Inc/(Dec)
                                                         ------  -------   ----------   -------   -------   ----------
<S>                                                      <C>     <C>          <C>       <C>       <C>         <C>
EARNINGS PER COMMON SHARE

BASIC
      Income from continuing operations                  $ 0.75  $ 0.96       (22)%     $ 2.22    $ 2.77      (20)%
      Loss from discontinued operations                   (0.04)  (0.05)      (20)       (0.09)    (0.07)      29
                                                         ------  ------                 ------    ------
      Net income                                         $ 0.71  $ 0.91       (22)%     $ 2.13    $ 2.70      (21)%
                                                         ======  ======                 ======    ======

      Average common shares outstanding (millions)        1,154   1,170        (1)%      1,154     1,179       (2)%
                                                         ======  ======                 ======    ======

DILUTED
      Income from continuing operations                  $ 0.74  $ 0.94       (21)%     $ 2.21    $ 2.72      (19)%
      Loss from discontinued operations                   (0.04)  (0.04)        -        (0.09)    (0.07)      29
                                                         ------  ------                 ------    ------
      Net income                                         $ 0.70  $ 0.90       (22)%     $ 2.12    $ 2.65      (20)%
                                                         ======  ======                 ======    ======

      Average common shares outstanding (millions)        1,158   1,192        (3)%      1,161     1,202       (3)%
                                                         ======  ======                 ======    ======

Cash dividends declared per common share                 $ 0.18  $ 0.15        20%      $ 0.54    $ 0.45       20%
                                                         ======  ======                 ======    ======
</Table>

                       SELECTED STATISTICAL INFORMATION

<Table>
<Caption>
                                                          Quarters Ended                 Nine Months Ended
                                                           September 30,                    September 30,
                                                         ----------------   Percentage   -----------------   Percentage
                                                           2008     2007     Inc/(Dec)     2008      2007     Inc/(Dec)
                                                         -------   ------   ----------   -------   -------   ----------
<S>                                                       <C>      <C>          <C>       <C>       <C>         <C>
Return on average equity (A)                                27.8%    38.2%                  27.8%     38.2%
Return on average tangible equity (A)                       34.4%    44.9%                  34.4%     44.9%
Common shares outstanding (millions)                       1,160    1,169       (1)%       1,160     1,169      (1)%
Book value per common share                               $10.79   $ 9.32       16%       $10.79    $ 9.32      16%
Shareholders' equity (billions)                           $ 12.5   $ 10.9       15%       $ 12.5    $ 10.9      15%
</Table>

# - Denotes a variance of more than 100%.

(A) Refer to Appendix I for components of return on average equity and return
on average tangible equity.

                                       -4-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                                 Quarters Ended
                                                                                  September 30,
                                                                                 ---------------    Percentage
                                                                                  2008     2007      Inc/(Dec)
                                                                                 ------   ------    ----------
<S>                                                                              <C>      <C>          <C>
Card billed business (A):
  United States                                                                  $120.3   $115.2        4%
  Outside the United States                                                        55.2     47.3       17
                                                                                 ------   ------
      Total                                                                      $175.5   $162.5        8
                                                                                 ======   ======
Total cards-in-force (millions) (B):
  United States                                                                    54.3     51.7        5%
  Outside the United States                                                        37.8     33.0       15
                                                                                 ------   ------
      Total                                                                        92.1     84.7        9
                                                                                 ======   ======
Basic cards-in-force (millions) (B):
  United States                                                                    42.3     40.1        5%
  Outside the United States                                                        32.8     28.3       16
                                                                                 ------   ------
      Total                                                                        75.1     68.4       10
                                                                                 ======   ======

Average discount rate (C)                                                          2.56%    2.57%
Average basic cardmember spending (dollars) (D)                                  $3,049   $3,006        1%
Average fee per card (dollars) (D)                                               $   34   $   32        6%
</Table>

(A) Card billed business includes activities (including cash advances) related
to proprietary cards, cards issued under network partnership agreements, and
certain insurance fees charged on proprietary cards. Card billed business is
reflected in the United States or outside the United States based on where the
cardmember is domiciled.

(B) Total cards-in-force represents the number of cards that are issued and
outstanding. Proprietary basic consumer cards-in-force includes basic cards
issued to the primary account owner and does not include additional
supplemental cards issued on that account. Proprietary basic small business
and corporate cards-in-force include basic and supplemental cards issued to
employee cardmembers. Non-proprietary basic cards-in-force includes all cards
that are issued and outstanding under network partnership agreements.

(C) This calculation is designed to approximate merchant pricing. It
represents the percentage of billed business (both proprietary and Global
Network Services) retained by the Company from merchants it acquires, prior to
payments to third parties unrelated to merchant acceptance.

(D) Average basic cardmember spending and average fee per card are computed
from proprietary card activities only. Average fee per card is computed based
on net card fees, including the amortization of deferred direct acquisition
costs, divided by average worldwide proprietary cards-in-force. The adjusted
average fee per card is computed in the same manner, but excludes amortization
of deferred direct acquisition costs. The adjusted average fee per card was
$39 for the quarter ended September 30, 2008, and $36 for the quarter ended
September 30, 2007, and the amount of amortization excluded for these periods
was $84 million for the quarter ended September 30, 2008, and $71 million for
the quarter ended September 30, 2007. The Company presents adjusted average
fee per card because management believes that this metric presents a better
picture of card fee pricing across a range of its proprietary card products.

                                       -5-
<Page>
(Preliminary)
                           AMERICAN EXPRESS COMPANY
                 SELECTED STATISTICAL INFORMATION (CONTINUED)

(Billions, except percentages and where indicated)
<Table>
<Caption>
                                                                                 Quarters Ended
                                                                                  September 30,
                                                                                 ---------------    Percentage
                                                                                  2008     2007      Inc/(Dec)
                                                                                 ------   ------    ----------
<S>                                                                              <C>      <C>           <C>
Worldwide cardmember receivables:
  Total receivables                                                              $ 37.6   $ 38.5        (2)%
  90 days past due as a % of total                                                  3.2%     2.8%
  Loss reserves (millions):
    Beginning balance                                                            $1,146   $  981        17%
      Provision                                                                     348      279        25
      Net write offs                                                               (333)    (247)       35
      Other                                                                         (27)     (15)       80
                                                                                 ------   ------
    Ending balance                                                               $1,134   $  998        14
                                                                                 ======   ======
    % of receivables                                                                3.0%     2.6%
    % of 90 days past due                                                            95%      91%
  Net loss ratio as a % of charge volume                                           0.33%    0.26%

Worldwide cardmember lending - owned basis (A):
  Total loans                                                                    $ 45.8   $ 50.5        (9)%
  30 days past due loans as a % of total (B)                                        3.7%     2.5%
  Loss reserves (millions):
    Beginning balance                                                            $2,594   $1,417        83%
      Provision                                                                     927      543        71
      Net write offs - principal                                                   (697)    (410)       70
      Write offs - interest and fees                                               (161)     (89)       81
      Other                                                                         (23)       8         #
                                                                                 ------   ------
    Ending balance                                                               $2,640   $1,469        80
                                                                                 ======   ======
    % of loans                                                                      5.8%     2.9%
    % of past due (B)                                                               155%     118%
  Average loans                                                                  $ 47.8   $ 48.8        (2)%
  Net write-off rate (C)                                                            5.8%     3.4%
  Net finance revenue(D)/average loans                                              9.8%     9.3%

Worldwide cardmember lending - managed basis (E):
  Total loans                                                                    $ 75.6   $ 72.0         5%
  30 days past due loans as a % of total (B)                                        3.8%     2.5%
  Loss reserves (millions):
    Beginning balance                                                            $3,984   $1,917         #%
      Provision                                                                   1,643      762         #
      Net write offs - principal                                                 (1,090)    (567)       92
      Write offs - interest and fees                                               (245)    (129)       90
      Other                                                                         (24)       8         #
                                                                                 ------   ------
    Ending balance                                                               $4,268   $1,991         #
                                                                                 ======   ======
    % of loans                                                                      5.7%     2.8%
    % of past due (B)                                                               148%     112%
Average loans                                                                    $ 76.2   $ 70.1         9%
Net write-off rate (C)                                                              5.7%     3.2%
Net finance revenue(D)/average loans                                                9.7%     9.4%
</Table>
# - Denotes a variance of more than 100%.

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

(B) These metrics were revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to
current balances.

(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention.

(D) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.

(E) 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. Refer to the information set forth under U.S. Card
Services Selected Financial Information for further discussion of the managed
basis presentation.
                                      -6-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                       CONSOLIDATED STATEMENTS OF INCOME

(Millions)

<Table>
<Caption>
                                                                                    Quarters Ended
                                                         -------------------------------------------------------------------
                                                         September 30,   June 30,   March 31,   December 31,   September 30,
                                                             2008          2008       2008         2007           2007
                                                         -------------   --------   ---------   ------------   -------------
<S>                                                          <C>          <C>         <C>          <C>             <C>
Revenues
  Discount revenue                                           $3,848       $3,991      $3,718       $3,912          $3,659
  Net card fees                                                 577          576         567          544             522
  Travel commissions and fees                                   499          573         494          514             484
  Other commissions and fees                                    573          590         622          650             644
  Securitization income, net                                    200          227         444          326             392
  Other                                                         551          577         460          494             443
                                                             ------       ------      ------       ------          ------
     Total                                                    6,248        6,534       6,305        6,440           6,144
                                                             ------       ------      ------       ------          ------
Interest income
  Cardmember lending finance revenue                          1,521        1,521       1,625        1,682           1,581
  Other                                                         238          256         229          238             239
                                                             ------       ------      ------       ------          ------
     Total                                                    1,759        1,777       1,854        1,920           1,820
                                                             ------       ------      ------       ------          ------
         Total revenues                                       8,007        8,311       8,159        8,360           7,964
                                                             ------       ------      ------       ------          ------
Interest expense
  Cardmember lending                                            346          364         417          474             444
  Charge card and other                                         497          492         502          562             564
                                                             ------       ------      ------       ------          ------
     Total                                                      843          856         919        1,036           1,008
                                                             ------       ------      ------       ------          ------
Revenues net of interest expense                              7,164        7,455       7,240        7,324           6,956
                                                             ------       ------      ------       ------          ------

Expenses
  Marketing, promotion, rewards
      and cardmember services                                 1,929        1,924       1,756        2,719           1,810
  Human resources                                             1,465        1,495       1,470        1,437           1,366
  Professional services                                         608          606         550          646             539
  Occupancy and equipment                                       398          412         375          382             374
  Communications                                                118          115         115          119             118
  Other, net                                                    200          274         296         (590)            339
                                                             ------       ------      ------       ------          ------
     Total                                                    4,718        4,826       4,562        4,713           4,546
                                                             ------       ------      ------       ------          ------
Provisions for losses
  Charge card                                                   351          241         345          419             279
  Cardmember lending                                            958        1,537         809          970             579
  Other                                                          59           77          63           64              47
                                                             ------       ------      ------       ------          ------
     Total                                                    1,368        1,855       1,217        1,453             905
                                                             ------       ------      ------       ------          ------
Pretax income from continuing operations                      1,078          774       1,461        1,158           1,505
Income tax provision                                            217          114         417          300             383
                                                             ------       ------      ------       ------          ------
Income from continuing operations                               861          660       1,044          858           1,122
Loss from discontinued operations, net of tax                   (46)          (7)        (53)         (27)            (55)
                                                             ------       ------      ------       ------          ------
Net income                                                   $  815          653      $  991       $  831          $1,067
                                                             ======       ======      ======       ======          ======
</Table>

                                       -7-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                               FINANCIAL SUMMARY

(Millions)

<Table>
<Caption>
                                                                                    Quarters Ended
                                                         -------------------------------------------------------------------
                                                         September 30,   June 30,   March 31,   December 31,   September 30,
                                                             2008          2008       2008         2007           2007
                                                         -------------   --------   ---------   ------------   -------------
<S>                                                          <C>          <C>         <C>          <C>             <C>
REVENUES NET OF INTEREST EXPENSE
  U.S. Card Services                                         $3,459       $3,593      $3,722       $3,709          $3,589
  International Card Services                                 1,232        1,256       1,195        1,189           1,114
  Global Commercial Services                                  1,200        1,308       1,144        1,128           1,064
  Global Network & Merchant Services                          1,071        1,083       1,003        1,041             980
                                                             ------       ------      ------       ------          ------
                                                              6,962        7,240       7,064        7,067           6,747
  Corporate & Other,
    including adjustments and eliminations                      202          215         176          257             209
                                                             ------       ------      ------       ------          ------
CONSOLIDATED REVENUES NET OF INTEREST EXPENSE                $7,164       $7,455      $7,240       $7,324          $6,956
                                                             ======       ======      ======       ======          ======
PRETAX INCOME (LOSS) FROM CONTINUING OPERATIONS
  U.S. Card Services                                         $  364       $  (63)     $  791       $  (40)         $  912
  International Card Services                                     1           73         117         (181)            110
  Global Commercial Services                                    191          326         218          144             187
  Global Network & Merchant Services                            397          455         335          379             389
                                                             ------       ------      ------       ------          ------
                                                                953          791       1,461          302           1,598
  Corporate & Other                                             125          (17)          -          856             (93)
                                                             ------       ------      ------       ------          ------
PRETAX INCOME FROM CONTINUING OPERATIONS                     $1,078       $  774       1,461        1,158          $1,505
                                                             ======       ======      ======       ======          ======
NET INCOME (LOSS)
  U.S. Card Services                                         $  244       $   21      $  523       $    7          $  592
  International Card Services                                    67          115         133          (68)            140
  Global Commercial Services                                    134          227         151          110             135
  Global Network & Merchant Services                            258          299         223          254             266
                                                             ------       ------      ------       ------          ------
                                                                703          662       1,030          303           1,133
  Corporate & Other                                             158           (2)         14          555             (11)
                                                             ------       ------      ------       ------          ------
  Income from continuing operations                             861          660       1,044          858           1,122
  Loss from discontinued operations, net of tax                 (46)          (7)        (53)         (27)            (55)
                                                             ------       ------      ------       ------          ------
NET INCOME                                                   $  815       $  653      $  991       $  831          $1,067
                                                             ======       ======      ======       ======          ======
</Table>

                                       -8-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                         FINANCIAL SUMMARY (CONTINUED)

<Table>
<Caption>
                                                                                    Quarters Ended
                                                         -------------------------------------------------------------------
                                                         September 30,   June 30,   March 31,   December 31,   September 30,
                                                             2008          2008       2008         2007           2007
                                                         -------------   --------   ---------   ------------   -------------
<S>                                                         <C>           <C>        <C>          <C>             <C>
EARNINGS PER COMMON SHARE

BASIC
      Income from continuing operations                     $ 0.75        $ 0.57     $ 0.91       $ 0.74          $ 0.96
      Loss from discontinued operations                      (0.04)            -      (0.05)       (0.02)          (0.05)
                                                            ------        ------     ------       ------          ------
      Net income                                            $ 0.71        $ 0.57     $ 0.86       $ 0.72          $ 0.91
                                                            ======        ======     ======       ======          ======
      Average common shares outstanding (millions)           1,154         1,154      1,153        1,157           1,170
                                                            ======        ======     ======       ======          ======
DILUTED
      Income from continuing operations                     $ 0.74        $ 0.57     $ 0.90       $ 0.73          $ 0.94
      Loss from discontinued operations                      (0.04)        (0.01)     (0.05)       (0.02)          (0.04)
                                                            ------        ------     ------       ------          ------
      Net income                                            $ 0.70        $ 0.56     $ 0.85       $ 0.71          $ 0.90
                                                            ======        ======     ======       ======          ======
      Average common shares outstanding (millions)           1,158         1,163      1,163        1,178           1,192
                                                            ======        ======     ======       ======          ======
Cash dividends declared per common share                    $ 0.18        $ 0.18     $ 0.18       $ 0.18          $ 0.15
                                                            ======        ======     ======       ======          ======
</Table>

                       SELECTED STATISTICAL INFORMATION
<Table>
<Caption>
                                                                                     Quarters Ended
                                                         -------------------------------------------------------------------
                                                         September 30,   June 30,   March 31,   December 31,   September 30,
                                                             2008          2008       2008         2007           2007
                                                         -------------   --------   ---------   ------------   -------------
<S>                                                         <C>          <C>         <C>          <C>             <C>
Return on average equity (A)                                  27.8%        31.1%       35.9%        37.3%           38.2%
Return on average tangible equity (A)                         34.4%        37.7%       42.7%        44.0%           44.9%
Common shares outstanding (millions)                         1,160        1,159       1,158        1,158           1,169
Book value per common share                                 $10.79       $10.58      $ 9.94       $ 9.53          $ 9.32
Shareholders' equity (billions)                             $ 12.5        $12.3      $ 11.5       $ 11.0          $ 10.9
</Table>

(A) Refer to Appendix I for components of return on average equity and return
on average tangible equity.

                                       -9-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                                    Quarters Ended
                                                         -------------------------------------------------------------------
                                                         September 30,   June 30,   March 31,   December 31,   September 30,
                                                             2008          2008       2008         2007           2007
                                                         -------------   --------   ---------   ------------   -------------
<S>                                                          <C>          <C>         <C>          <C>             <C>
Card billed business (A):
  United States                                              $120.3       $123.5      $114.6       $123.0          $115.2
  Outside the United States                                    55.2         57.4        51.8         54.5            47.3
                                                             ------       ------      ------       ------          ------
    Total                                                    $175.5       $180.9      $166.4       $177.5          $162.5
                                                             ======       ======      ======       ======          ======
Total cards-in-force (millions) (B):
  United States                                                54.3         53.5        52.9         52.3            51.7
  Outside the United States                                    37.8         36.6        35.1         34.1            33.0
                                                             ------       ------      ------       ------          ------
    Total                                                      92.1         90.1        88.0         86.4            84.7
                                                             ======       ======      ======       ======          ======
Basic cards-in-force (millions) (B):
  United States                                                42.3         41.9        41.4         40.9            40.1
  Outside the United States                                    32.8         31.6        30.2         29.2            28.3
                                                             ------       ------      ------       ------          ------
    Total                                                      75.1         73.5        71.6         70.1            68.4
                                                             ======       ======      ======       ======          ======

Average discount rate (C)                                      2.56%        2.56%       2.57%        2.54%           2.57%
Average basic cardmember spending (dollars) (D)              $3,049       $3,199      $2,984       $3,228          $3,006
Average fee per card (dollars) (D)                           $   34       $   34      $   34       $   33          $   32
</Table>

(A) Card billed business includes activities (including cash advances) related
to proprietary cards, cards issued under network partnership agreements, and
certain insurance fees charged on proprietary cards. Card billed business is
reflected in the United States or outside the United States based on where the
cardmember is domiciled.

(B) Total cards-in-force represents the number of cards that are issued and
outstanding. Proprietary basic consumer cards-in-force includes basic cards
issued to the primary account owner and does not include additional
supplemental cards issued on that account. Proprietary basic small business
and corporate cards-in-force include basic and supplemental cards issued to
employee cardmembers. Non-proprietary basic cards-in-force includes all cards
that are issued and outstanding under network partnership agreements.

(C) This calculation is designed to approximate merchant pricing. It
represents the percentage of billed business (both proprietary and Global
Network Services) retained by the Company from merchants it acquires, prior to
payments to third parties unrelated to merchant acceptance.

(D) Average basic cardmember spending and average fee per card are computed
from proprietary card activities only. Average fee per card is computed based
on net card fees, including the amortization of deferred direct acquisition
costs, divided by average worldwide proprietary cards-in-force. The adjusted
average fee per card is computed in the same manner, but excludes amortization
of deferred direct acquisition costs. The adjusted average fee per card was
$39 for the quarters ended September 30, 2008, June 30, 2008 and March 31,
2008, $37 for the quarter ended December 31, 2007, and $36 for the quarter
ended September 30, 2007. The amount of amortization excluded for these
periods was $84 million for the quarter ended September 30, 2008, $82 million
for the quarter ended June 30, 2008, $77 million for the quarter ended March
31, 2008, $74 million for the quarter ended December 31, 2007, and $71 million
for the quarters ended September 30, 2007. The Company presents adjusted
average fee per card because management believes that this metric presents a
better picture of card fee pricing across a range of its proprietary card
products.

                                       -10-
<Page>
(Preliminary)
                           AMERICAN EXPRESS COMPANY
                 SELECTED STATISTICAL INFORMATION (CONTINUED)

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                               Quarters Ended
                                                    ------------------------------------------------------------------------
                                                    September 30,     June 30,     March 31,    December 31,   September 30,
                                                        2008            2008         2008          2007            2007
                                                    -------------     --------     ---------    ------------   -------------
<S>                                                    <C>             <C>          <C>           <C>             <C>
Worldwide cardmember receivables:
  Total receivables                                    $  37.6         $ 39.9       $ 39.0        $ 40.1          $ 38.5
  90 days past due as a % of total                         3.2%           3.0%         3.3%          3.0%            2.8%
  Loss reserves (millions):
    Beginning balance                                  $ 1,146         $1,221       $1,149        $  998          $  981
      Provision                                            348            241          345           419             279
      Net write offs                                      (333)          (293)        (257)         (249)           (247)
      Other                                                (27)           (23)         (16)          (19)            (15)
                                                       -------         ------       ------        ------          ------
    Ending balance                                     $ 1,134         $1,146       $1,221        $1,149          $  998
                                                       =======         ======       ======        ======          ======
    % of receivables                                       3.0%           2.9%         3.1%          2.9%            2.6%
    % of 90 days past due                                   95%            97%          96%           95%             91%
  Net loss ratio as a % of charge volume                  0.33%          0.29%        0.25%         0.25%           0.26%

Worldwide cardmember lending - owned basis (A):
  Total loans                                          $  45.8         $ 49.7       $ 49.6        $ 54.5          $ 50.5
  30 days past due loans as a % of total (B)               3.7%           3.4%         3.3%          2.8%            2.5%
  Loss reserves (millions):
    Beginning balance                                  $ 2,594         $1,919       $1,831        $1,469          $1,417
      Provision                                            927          1,506          776           924             543
      Net write offs - principal                          (697)          (678)        (566)         (474)           (410)
      Write offs - interest and fees                      (161)          (149)        (127)         (105)            (89)
      Other                                                (23)            (4)           5            17               8
                                                       -------         ------       ------        ------          ------
    Ending balance                                     $ 2,640         $2,594       $1,919        $1,831          $1,469
                                                       =======         ======       ======        ======          ======
    % of loans                                             5.8%           5.2%         3.9%          3.4%            2.9%
    % of past due (B)                                      155%           155%         118%          120%            118%
  Average loans                                        $  47.8         $ 49.7       $ 50.8        $ 51.7          $ 48.8
  Net write-off rate (C)                                   5.8%           5.5%         4.5%          3.7%            3.4%
  Net finance revenue(D)/average loans                     9.8%           9.4%         9.6%          9.3%            9.3%

Worldwide cardmember lending - managed basis (E):
  Total loans                                          $  75.6         $ 76.6       $ 75.2        $ 77.2          $ 72.0
  30 days past due loans as a % of total (B)               3.8%           3.3%         3.2%          2.8%            2.5%
  Loss reserves (millions):
    Beginning balance                                  $ 3,984         $2,811       $2,581        $1,991          $1,917
      Provision                                          1,643          2,368        1,231         1,387             762
      Net write offs - principal                        (1,090)          (974)        (820)         (662)           (567)
      Write offs - interest and fees                      (245)          (217)        (187)         (151)           (129)
      Other                                                (24)            (4)           6            16               8
                                                       -------         ------       ------        ------          ------
    Ending balance                                     $ 4,268         $3,984       $2,811        $2,581          $1,991
                                                       =======         ======       ======        ======          ======
    % of loans                                             5.7%           5.2%         3.7%          3.3%            2.8%
    % of past due (B)                                      148%           159%         117%          121%            112%
  Average loans                                        $  76.2         $ 75.9       $ 75.8        $ 74.1          $ 70.1
  Net write-off rate (C)                                   5.7%           5.1%         4.3%          3.6%            3.2%
  Net finance revenue(D)/average loans                     9.7%           9.5%        10.0%          9.4%            9.4%
</Table>

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

(B) These metrics were revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to current
balances. Refer to Appendix II for quarterly periods June 2007 - March 2006.

(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. Refer to Appendix II for
quarterly periods June 2007 - March 2006 and for full years 2007 and 2006.

(D) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.

(E) 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. Refer to the information set forth under U.S. Card
Services Selected Financial Information for further discussion of the managed
basis presentation.
                                      -11-
<Page>

(Preliminary)

                              U.S. CARD SERVICES
                        SELECTED INCOME STATEMENT DATA

(Millions)

<Table>
<Caption>
                                                              Quarters Ended
                                                               September 30,
                                                              ----------------    Percentage
                                                               2008      2007      Inc/(Dec)
                                                              ------    ------    ----------
<S>                                                           <C>       <C>          <C>
Revenues
  Discount revenue, net card fees and other                   $2,623    $2,632         -%
  Cardmember lending finance revenue                           1,087     1,224       (11)
  Securitization income, net                                     200       392       (49)
                                                              ------    ------
      Total revenues                                           3,910     4,248        (8)
                                                              ------    ------
  Interest expense
    Cardmember lending                                           290       402       (28)
    Charge card and other                                        161       257       (37)
                                                              ------    ------
Revenues net of interest expense                               3,459     3,589        (4)
                                                              ------    ------
Expenses
  Marketing, promotion, rewards
    and cardmember services                                    1,245     1,191         5
  Human resources and other operating expenses                   909       848         7
                                                              ------    ------
      Total                                                    2,154     2,039         6
                                                              ------    ------
Provisions for losses                                            941       638        47
                                                              ------    ------
Pretax segment income                                            364       912       (60)
Income tax provision                                             120       320       (63)
                                                              ------    ------
Segment income                                                $  244    $  592       (59)
                                                              ======    ======
</Table>

# - Denotes a variance of more than 100%.

                                      -12-
<Page>

(Preliminary)

                              U.S. CARD SERVICES
                        SELECTED FINANCIAL INFORMATION
                          MANAGED BASIS PRESENTATION

(Millions)

<Table>
<Caption>
                                                              Quarters Ended
                                                               September 30,
                                                              ----------------    Percentage
                                                               2008      2007      Inc/(Dec)
                                                              ------    ------    ----------
<S>                                                           <C>       <C>          <C>
INCOME STATEMENT DATA
  Discount revenue, net card fees and other:
       Reported for the period (GAAP)                         $2,623    $2,632         -%
       Securitization adjustments                                122        67        82
                                                              ------    ------
       Managed discount revenue, net card fees and other      $2,745    $2,699         2
                                                              ------    ------

  Cardmember lending finance revenue:
       Reported for the period (GAAP)                         $1,087    $1,224       (11)
       Securitization adjustments                                883       821         8
                                                              ------    ------
       Managed cardmember lending finance revenue             $1,970    $2,045        (4)
                                                              ------    ------

  Securitization income, net:
       Reported for the period (GAAP)                         $  200    $  392       (49)
       Securitization adjustments                               (200)     (392)      (49)
                                                              ------    ------
       Managed securitization income, net                     $    -    $    -         -
                                                              ------    ------

  Cardmember lending interest expense:
       Reported for the period (GAAP)                         $  290    $  402       (28)
       Securitization adjustments                                196       302       (35)
                                                              ------    ------
       Managed cardmember lending interest expense            $  486    $  704       (31)
                                                              ------    ------

  Provisions for losses:
       Reported for the period (GAAP)                         $  941    $  638        47
       Securitization adjustments                                629       226         #
                                                              ------    ------
       Managed provisions for losses                          $1,570    $  864        82
                                                              ------    ------
</Table>

# - Denotes a variance of more than 100%.

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. For the
managed basis presentation, revenue and expenses related to securitized
cardmember loans are reflected in other commissions and fees (included above
in discount revenue, net card fees and other), cardmember lending finance
revenue, cardmember lending interest expense, and provisions for losses. On a
managed basis, there is no securitization income, net as the managed basis
presentation assumes no securitization transactions have occurred.

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.

                                      -13-
<Page>

(Preliminary)

                              U.S. CARD SERVICES
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                              Quarters Ended
                                                               September 30,
                                                              ----------------    Percentage
                                                               2008      2007      Inc/(Dec)
                                                              ------    ------    ----------
<S>                                                           <C>       <C>          <C>
Card billed business                                          $ 97.9    $ 94.2         4%
Total cards-in-force (millions)                                 44.7      42.9         4%
Basic cards-in-force (millions)                                 33.4      31.8         5%
Average basic cardmember spending (dollars)                   $2,950    $2,986        (1)%

U.S. Consumer Travel:
  Travel sales (millions)                                     $  771    $  743         4%
  Travel commissions and fees/sales                              8.2%      8.5%

Total segment assets                                          $ 80.5    $ 79.0         2%
Segment capital (millions) (A)                                $5,069    $4,468        13%
Return on average segment capital (B)                           17.0%     50.5%
Return on average tangible segment capital (B)                  17.7%     52.5%

Cardmember receivables:
  Total receivables                                           $ 18.8    $ 19.4        (3)
  90 days past due as a % of total                               4.2%      3.9%
  Net loss ratio as a % of charge volume                        0.47%     0.34%

Cardmember lending - owned basis (C):
  Total loans                                                 $ 34.6    $ 40.0       (14)%
  30 days past due loans as a % of total (D)                     3.9%      2.4%
  Average loans                                               $ 36.3    $ 38.6        (6)%
  Net write-off rate (E)                                         6.1%      3.0%
  Net finance revenue(F)/average loans                           8.7%      8.5%

Cardmember lending - managed basis (G):
  Total loans                                                 $ 64.4    $ 61.5         5%
  30 days past due loans as a % of total (D)                     3.9%      2.4%
  Average loans                                               $ 64.7    $ 60.0         8%
  Net write-off rate (E)                                         5.9%      3.0%
  Net finance revenue(F)/average loans                           9.1%      8.9%
</Table>

(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $175 million and $25 million for the quarter ended September
30, 2008, and $168 million and none for the quarter ended September 30, 2007,
respectively.

(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.

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

(D) This metric was revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to current
balances.

(E) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention.

(F) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.

(G) 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. Refer to the information set forth under U.S. Card
Services Selected Financial Information for further discussion of the managed
basis presentation.

                                      -14-
<Page>

(Preliminary)

                              U.S. CARD SERVICES
                        SELECTED INCOME STATEMENT DATA

(Millions)

<Table>
<Caption>
                                                                               Quarters Ended
                                                    ------------------------------------------------------------------------
                                                    September 30,     June 30,     March 31,    December 31,   September 30,
                                                        2008            2008         2008          2007            2007
                                                    -------------     --------     ---------    ------------   -------------
<S>                                                    <C>             <C>          <C>            <C>            <C>
Revenues
  Discount revenue, net card fees and other            $2,623          $2,743       $2,605         $2,747         $2,632
  Cardmember lending finance revenue                    1,087           1,086        1,206          1,304          1,224
  Securitization income, net                              200             227          444            326            392
                                                       ------          ------       ------         ------         ------
        Total revenues                                  3,910           4,056        4,255          4,377          4,248
                                                       ------          ------       ------         ------         ------
  Interest expense
     Cardmember lending                                   290             305          345            440            402
     Charge card and other                                161             158          188            228            257
                                                       ------          ------       ------         ------         ------
Revenues net of interest expense                        3,459           3,593        3,722          3,709          3,589
                                                       ------          ------       ------         ------         ------
Expenses
  Marketing, promotion, rewards
      and cardmember services                           1,245           1,240        1,144          1,739          1,191
  Human resources and other operating expenses            909             900          906            871            848
                                                       ------          ------       ------         ------         ------
        Total                                           2,154           2,140        2,050          2,610          2,039
                                                       ------          ------       ------         ------         ------
Provisions for losses                                     941           1,516          881          1,139            638
                                                       ------          ------       ------         ------         ------
Pretax segment income (loss)                              364             (63)         791            (40)           912
Income tax provision (benefit)                            120             (84)         268            (47)           320
                                                       ------          ------       ------         ------         ------
Segment income                                         $  244          $   21       $  523         $    7         $  592
                                                       ======          ======       ======         ======         ======
</Table>

                                      -15-
<Page>

(Preliminary)

                              U.S. CARD SERVICES
                        SELECTED FINANCIAL INFORMATION
                          MANAGED BASIS PRESENTATION

(Millions)

<Table>
<Caption>
                                                                               Quarters Ended
                                                    ------------------------------------------------------------------------
                                                    September 30,     June 30,     March 31,    December 31,   September 30,
                                                        2008            2008         2008          2007            2007
                                                    -------------     --------     ---------    ------------   -------------
<S>                                                    <C>             <C>          <C>            <C>            <C>
INCOME STATEMENT DATA
 Discount revenue, net card fees and other:
   Reported for the period (GAAP)                      $2,623          $2,743       $2,605         $2,747         $2,632
   Securitization adjustments                             122              95           73             76             67
                                                       ------          ------       ------         ------         ------
   Managed discount revenue, net card fees and other   $2,745          $2,838       $2,678         $2,823         $2,699
                                                       ------          ------       ------         ------         ------

 Cardmember lending finance revenue:
   Reported for the period (GAAP)                      $1,087          $1,086       $1,206         $1,304         $1,224
   Securitization adjustments                             883             824          903            828            821
                                                       ------          ------       ------         ------         ------
   Managed cardmember lending finance revenue          $1,970          $1,910       $2,109         $2,132         $2,045
                                                       ------          ------       ------         ------         ------

 Securitization income, net:
   Reported for the period (GAAP)                      $  200          $  227       $  444         $  326         $  392
   Securitization adjustments                            (200)           (227)        (444)          (326)          (392)
                                                       ------          ------       ------         ------         ------
   Managed securitization income, net                  $    -          $    -       $    -         $    -         $    -
                                                       ------          ------       ------         ------         ------

 Cardmember lending interest expense:
   Reported for the period (GAAP)                      $  290          $  305       $  345         $  440         $  402
   Securitization adjustments                             196             184          220            287            302
                                                       ------          ------       ------         ------         ------
   Managed cardmember lending interest expense         $  486          $  489       $  565         $  727         $  704
                                                       ------          ------       ------         ------         ------

 Provisions for losses:
   Reported for the period (GAAP)                      $  941          $1,516       $  881         $1,139         $  638
   Securitization adjustments                             629             409          387            263            226
                                                       ------          ------       ------         ------         ------
   Managed provisions for losses                       $1,570          $1,925       $1,268         $1,402         $  864
                                                       ------          ------       ------         ------         ------
</Table>

See page 20 for discussion of managed basis presentation.

                                      -16-
<Page>

(Preliminary)

                              U.S. CARD SERVICES
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                          Quarters Ended
                                                 ---------------------------------------------------------------
                                                 September 30,  June 30,  March 31,  December 31,  September 30,
                                                     2008         2008      2008         2007          2007
                                                 -------------  --------  ---------  ------------  -------------
<S>                                                 <C>          <C>       <C>          <C>           <C>
Card billed business                                $ 97.9       $100.0    $ 92.1       $101.2        $ 94.2
Total cards-in-force (millions)                       44.7         44.2      43.8         43.3          42.9
Basic cards-in-force (millions)                       33.4         33.0      32.7         32.3          31.8
Average basic cardmember spending (dollars)         $2,950       $3,047    $2,838       $3,161        $2,986

U.S. Consumer Travel:
  Travel sales                                      $  0.8       $  0.9    $  0.8       $  0.7        $  0.7
  Travel commissions and fees/sales                    8.2%         9.0%      7.7%         8.2%          8.5%

Total segment assets                                $ 80.5       $ 83.5    $ 81.9       $ 82.3        $ 79.0
Segment capital (A)                                 $  5.1       $  4.9    $  4.5       $  4.5        $  4.5
Return on average segment capital (B)                 17.0%        25.0%     37.9%        40.2%         50.5%
Return on average tangible segment capital (B)        17.7%        26.1%     39.4%        41.8%         52.5%

Cardmember receivables:
  Total receivables                                 $ 18.8       $ 19.8    $ 19.2       $ 21.4        $ 19.4
  90 days past due as a % of total                     4.2%         4.1%      4.6%         3.9%          3.9%
  Net loss ratio as a % of charge volume              0.47%        0.44%     0.35%        0.35%         0.34%

Cardmember lending - owned basis (C):
  Total loans                                       $ 34.6       $ 37.9    $ 38.1       $ 43.3        $ 40.0
  30 days past due loans as a % of total (D)           3.9%         3.4%      3.4%         2.8%          2.4%
  Average loans                                     $ 36.3       $ 38.0    $ 39.6       $ 40.9        $ 38.6
  Net write-off rate (E)                               6.1%         5.8%      4.5%         3.5%          3.0%
  Net finance revenue(F)/average loans                 8.7%         8.3%      8.7%         8.4%          8.5%

Cardmember lending - managed basis (G):
  Total loans                                       $ 64.4       $ 64.7    $ 63.7       $ 66.0        $ 61.5
  30 days past due loans as a % of total (D)           3.9%         3.3%      3.2%         2.8%          2.4%
  Average loans                                     $ 64.7       $ 64.2    $ 64.6       $ 63.2        $ 60.0
  Net write-off rate(E)                                5.9%         5.3%      4.3%         3.4%          3.0%
  Net finance revenue(F)/average loans                 9.1%         8.9%      9.6%         8.8%          8.9%
</Table>

(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $175 million and $25 million as of September 30, 2008, $175
million and $22 million as of June 30, 2008, $175 million and $26 million as
of March 31, 2008, $175 million and none as of December 31, 2007, and $168
million and none as of September 30, 2007, respectively.

(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.

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

(D) This metric was revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to current
balances. Refer to Appendix III for quarterly periods June 2007 - March 2006.

(E) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. Refer to Appendix III for
quarterly periods June 2007 - March 2006 and for full years 2007 and 2006.

(F) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.

(G) 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. Refer to the information set forth under U.S. Card
Services Selected Financial Information for further discussion of the managed
basis presentation.

                                      -17-
<Page>

(Preliminary)

                          INTERNATIONAL CARD SERVICES
                        SELECTED INCOME STATEMENT DATA

(Millions)

<Table>
<Caption>
                                                 Quarters Ended
                                                  September 30,
                                                 --------------  Percentage
                                                  2008    2007    Inc/(Dec)
                                                 ------  ------  ----------
<S>                                              <C>     <C>        <C>
Revenues
  Discount revenue, net card fees and other      $1,023  $  953       7%
  Cardmember lending finance revenue                432     353      22
                                                 ------  ------
        Total revenues                            1,455   1,306      11
                                                 ------  ------
  Interest expense
     Cardmember lending                             157     126      25
     Charge card and other                           66      66       -
                                                 ------  ------
Revenues net of interest expense                  1,232   1,114      11
                                                 ------  ------
Expenses
  Marketing, promotion, rewards
      and cardmember services                       388     354      10
  Human resources and other operating expenses      527     453      16
                                                 ------  ------
        Total                                       915     807      13
                                                 ------  ------
Provisions for losses                               316     197      60
                                                 ------  ------
Pretax segment income                                 1     110     (99)
Income tax benefit                                  (66)    (30)      #
                                                 ------  ------
Segment income                                   $   67  $  140     (52)
                                                 ======  ======
</Table>

# - Denotes variance of more than 100%.

                                      -18-
<Page>

(Preliminary)

                          INTERNATIONAL CARD SERVICES
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                 Quarters Ended
                                                  September 30,
                                                 ---------------    Percentage
                                                  2008     2007       Inc/(Dec)
                                                 ------   ------     ----------
<S>                                              <C>      <C>            <C>
Card billed business                             $ 27.5   $ 24.7         11%
Total cards-in-force (millions)                    16.4     15.8          4%
Basic cards-in-force (millions)                    11.5     11.2          3%
Average basic cardmember spending (dollars)      $2,393   $2,209          8%

International Consumer Travel:
  Travel sales (millions)                        $  334   $  283         18%
  Travel commissions and fees/sales                 8.4%     8.8%

Total segment assets                             $ 22.6   $ 20.8          9%
Segment capital (millions) (A)                   $2,257   $1,983         14%
Return on average segment capital (B)              11.8%    24.4%
Return on average tangible segment capital (B)     15.9%    34.3%

Cardmember receivables:
  Total receivables                              $  6.1   $  6.1          -%
  90 days past due as a % of total                  2.7%     1.8%
  Net loss ratio as a % of charge volume           0.25%    0.26%

Cardmember lending:
  Total loans                                    $ 11.1   $ 10.5          6%
  30 days past due loans as a % of total            3.3%     2.7%
  Average loans                                  $ 11.5   $ 10.2         13%
  Net write-off rate (C)                            5.0%     4.8%
  Net finance revenue(D)/average loans              9.5%     8.9%
</Table>

(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $517 million and $41 million as of the quarter ended September
30, 2008, and $520 million and $19 million as of the quarter ended September
30, 2007, respectively.

(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.

(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention.

(D) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.

                                      -19-
<Page>

(Preliminary)

                          INTERNATIONAL CARD SERVICES
                        SELECTED INCOME STATEMENT DATA

(Millions)

<Table>
<Caption>
                                                                          Quarters Ended
                                                 ---------------------------------------------------------------
                                                 September 30,  June 30,  March 31,  December 31,  September 30,
                                                     2008         2008      2008         2007          2007
                                                 -------------  --------  ---------  ------------  -------------
<S>                                                 <C>          <C>       <C>          <C>           <C>
Revenues
  Discount revenue, net card fees and other         $1,023       $1,043    $  992       $1,022        $  953
  Cardmember lending finance revenue                   432          433       415          376           353
                                                    ------       ------    ------       ------        ------
        Total revenues                               1,455        1,476     1,407        1,398         1,306
                                                    ------       ------    ------       ------        ------
  Interest expense
     Cardmember lending                                157          158       147          138           126
     Charge card and other                              66           62        65           71            66
                                                    ------       ------    ------       ------        ------
Revenues net of interest expense                     1,232        1,256     1,195        1,189         1,114
                                                    ------       ------    ------       ------        ------
Expenses
  Marketing, promotion, rewards
      and cardmember services                          388          404       358          638           354
  Human resources and other operating expenses         527          537       491          512           453
                                                    ------       ------    ------       ------        ------
        Total                                          915          941       849        1,150           807
                                                    ------       ------    ------       ------        ------
Provisions for losses                                  316          242       229          220           197
                                                    ------       ------    ------       ------        ------
Pretax segment income (loss)                             1           73       117         (181)          110
Income tax benefit                                     (66)         (42)      (16)        (113)          (30)
                                                    ------       ------    ------       ------        ------
Segment income (loss)                               $   67       $  115    $  133       $  (68)       $  140
                                                    ======       ======    ======       ======        ======
</Table>

                                      -20-
<Page>

(Preliminary)

                          INTERNATIONAL CARD SERVICES
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                        Quarters Ended
                                              ------------------------------------------------------------------
                                              September 30,   June 30,  March 31,   December 31,   September 30,
                                                  2008          2008       2008        2007             2007
                                              ------------   --------   ---------   ------------   -------------
<S>                                              <C>          <C>        <C>           <C>            <C>
Card billed business                             $ 27.5       $ 28.3     $ 26.1        $ 28.2         $ 24.7
Total cards-in-force (millions)                    16.4         16.3       16.1          16.0           15.8
Basic cards-in-force (millions)                    11.5         11.5       11.4          11.3           11.2
Average basic cardmember spending (dollars)      $2,393       $2,476     $2,309        $2,515         $2,209

International Consumer Travel:
  Travel sales                                   $  0.3       $  0.4     $  0.3        $  0.3         $  0.3
  Travel commissions and fees/sales                 8.4%         8.1%       8.4%          8.7%           8.8%

Total segment assets                             $ 22.6       $ 22.7     $ 21.3        $ 21.4         $ 20.8
Segment capital (A)                              $  2.3       $  2.2     $  2.0        $  2.1         $  2.0
Return on average segment capital (B)              11.8%        15.8%      16.4%         15.3%          24.4%
Return on average tangible segment capital (B)     15.9%        21.5%      22.6%         21.4%          34.3%

Cardmember receivables:
  Total receivables (C)                          $  6.1       $  6.6     $  6.3        $  6.6         $  6.1
  90 days past due as a % of total                  2.7%         2.4%       2.2%          1.8%           1.8%
  Net loss ratio as a % of charge volume           0.25%        0.22%      0.21%         0.21%          0.26%

Cardmember lending:
  Total loans (C)                                $ 11.1       $ 11.8     $ 11.4        $ 11.2         $ 10.5
  30 days past due loans as a % of total            3.3%         3.1%       3.0%          2.8%           2.7%
  Average loans                                  $ 11.5       $ 11.6     $ 11.2        $ 10.8         $ 10.2
  Net write-off rate (D)                            5.0%         4.5%       4.4%          4.4%           4.8%
  Net finance revenue(E)/average loans              9.5%         9.5%       9.6%          8.7%           8.9%
</Table>

(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $517 million and $41 million as of September 30, 2008, $519
million and $25 million as of June 30, 2008, $519 million and $16 million as
of March 31, 2008, $519 million and $17 million as of December 31, 2007, and
$520 million and $19 million as of September 30, 2007, respectively.

(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.

(C) The March 31, 2008 balance reflects a reclassification of $393 million from
cardmember receivables to cardmember lending for charge card products with
lending features.

(D) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. Refer to Appendix III for
quarterly periods June 2007 - March 2006 and for full years 2007 and 2006.

(E) Net finance revenue, which represents cardmember lending finance revenue
less cardmember lending interest expense, is computed on an annualized basis.

                                      -21-
<Page>

(Preliminary)

                          GLOBAL COMMERCIAL SERVICES
                        SELECTED INCOME STATEMENT DATA

(Millions)

<Table>
<Caption>
                                                   Quarters Ended
                                                    September 30,
                                                  ----------------   Percentage
                                                   2008      2007    Inc/(Dec)
                                                  ------    ------   ----------
<S>                                               <C>       <C>          <C>
Revenues
  Discount revenue, net card fees and other       $1,309    $1,180       11%
                                                  ------    ------
  Interest expense
     Charge card and other                           109       116       (6)
                                                  ------    ------
Revenues net of interest expense                   1,200     1,064       13
                                                  ------    ------
Expenses
  Marketing, promotion, rewards
      and cardmember services                        113        86       31
  Human resources and other operating expenses       836       749       12
                                                  ------    ------
        Total                                        949       835       14
                                                  ------    ------
Provisions for losses                                 60        42       43
                                                  ------    ------
Pretax segment income                                191       187        2
Income tax provision                                  57        52       10
                                                  ------    ------
Segment income                                    $  134    $  135       (1)
                                                  ======    ======
</Table>

# - Denotes variance of more than 100%.

                                      -22-
<Page>

(Preliminary)

                          GLOBAL COMMERCIAL SERVICES
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                   Quarters Ended
                                                    September 30,
                                                  ----------------   Percentage
                                                   2008      2007    Inc/(Dec)
                                                  ------    ------   ----------
<S>                                               <C>       <C>          <C>
Card billed business                              $ 32.3    $ 29.9        8%
Total cards-in-force (millions)                      7.0       6.8        3%
Basic cards-in-force (millions)                      7.0       6.8        3%
Average basic cardmember spending (dollars)       $4,611    $4,389        5%

Global Corporate Travel:
  Travel sales                                    $  5.1    $  4.9        4%
  Travel commissions and fees/sales                  8.0%      8.0%

Total segment assets                              $ 23.6    $ 21.8        8%
Segment capital (millions) (A)                    $3,564    $2,230       60%
Return on average segment capital (B)               21.2%     26.2%
Return on average tangible segment capital (B)      43.9%     44.3%

Cardmember receivables:
  Total receivables                               $ 12.5     $ 12.5       -%
  90 days past due as a % of total                   1.8%      1.6%
  Net loss ratio as a % of charge volume            0.15%     0.11%
</Table>

(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $1.6 billion and $362 million as of the quarter ended September
30, 2008, and $767 million and $129 million as of the quarter ended September
30, 2007, respectively.

(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.

                                      -23-
<Page>

(Preliminary)

                          GLOBAL COMMERCIAL SERVICES
                        SELECTED INCOME STATEMENT DATA

(Millions)

<Table>
<Caption>
                                                                           Quarters Ended
                                                  -------------------------------------------------------------------
                                                  September 30,   June 30,   March 31,   December 31,   September 30,
                                                      2008          2008       2008         2007            2007
                                                  -------------   --------   ---------   ------------   -------------
<S>                                                   <C>          <C>         <C>          <C>             <C>
Revenues
  Discount revenue, net card fees and other           $1,309       $1,425      $1,250       $1,259          $1,180
                                                      ------       ------      ------       ------          ------
  Interest expense
     Charge card and other                               109          117         106          131             116
                                                      ------       ------      ------       ------          ------
Revenues net of interest expense                       1,200        1,308       1,144        1,128           1,064
                                                      ------       ------      ------       ------          ------
Expenses
  Marketing, promotion, rewards
      and cardmember services                            113           99          86          135              86
  Human resources and other operating expenses           836          843         778          794             749
                                                      ------       ------      ------       ------          ------
        Total                                            949          942         864          929             835
                                                      ------       ------      ------       ------          ------
Provisions for losses                                     60           40          62           55              42
                                                      ------       ------      ------       ------          ------
Pretax segment income                                    191          326         218          144             187
Income tax provision                                      57           99          67           34              52
                                                      ------       ------      ------       ------          ------
Segment income                                        $  134       $  227      $  151       $  110          $  135
                                                      ======       ======      ======       ======          ======
</Table>


                                      -24-
<Page>

(Preliminary)

                          GLOBAL COMMERCIAL SERVICES
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>

                                                                           Quarters Ended
                                                  -------------------------------------------------------------------
                                                  September 30,   June 30,   March 31,   December 31,   September 30,
                                                      2008          2008       2008         2007            2007
                                                  -------------   --------   ---------   ------------   -------------
<S>                                                   <C>          <C>         <C>          <C>             <C>
Card billed business                                  $ 32.3       $ 35.4      $ 32.8       $ 32.2          $ 29.9
Total cards-in-force (millions)                          7.0          7.0         6.9          6.8             6.8
Basic cards-in-force (millions)                          7.0          7.0         6.9          6.8             6.8
Average basic cardmember spending (dollars)           $4,611       $5,083      $4,770       $4,695          $4,389

Global Corporate Travel:
  Travel sales                                        $  5.1       $  6.2      $  5.4       $  5.5          $  4.9
  Travel commissions and fees/sales                      8.0%         7.5%        7.4%         7.8%            8.0%

Total segment assets                                  $ 23.6       $ 25.8      $ 28.4       $ 21.1          $ 21.8
Segment capital (A)                                   $  3.6       $  3.3      $  3.4       $  2.2          $  2.2
Return on average segment capital (B)                   21.2%        23.6%       23.2%        25.3%           26.2%
Return on average tangible segment capital (B)          43.9%        46.7%       42.4%        43.3%           44.3%

Cardmember receivables:
  Total receivables                                   $ 12.5       $ 13.4      $ 12.8       $ 11.4          $ 12.5
  90 days past due as a % of total                       1.8%         1.6%        1.7%         2.1%            1.6%
  Net loss ratio as a % of charge volume                0.15%        0.10%       0.12%        0.12%           0.11%
</Table>

(A) Segment capital includes an allocation attributable to goodwill and other
intangibles of $1.6 billion and $362 million as of September 30, 2008, $1.6
billion and $345 million as of June 30, 2008, $1.6 billion and $344 million as
of March 31, 2008, $771 million and $139 million as of December 31, 2007, and
$767 million and $129 million as of September 30, 2007, respectively.

(B) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.

                                      -25-
<Page>

(Preliminary)

                      GLOBAL NETWORK & MERCHANT SERVICES
                        SELECTED INCOME STATEMENT DATA

(Millions)

<Table>
<Caption>
                                                   Quarters Ended
                                                    September 30,
                                                  ----------------   Percentage
                                                   2008      2007    Inc/(Dec)
                                                  ------    ------   ----------
<S>                                               <C>         <C>       <C>
Revenues
  Discount revenue, fees and other                $1,016      $902       13%
                                                  ------      ----
  Interest expense
     Cardmember lending                              (24)      (33)     (27)
     Other                                           (31)      (45)     (31)
                                                  ------      ----
Revenues net of interest expense                   1,071       980        9
                                                  ------      ----
Expenses
  Marketing and promotion                            150       151       (1)
  Human resources and other operating expenses       481       417       15
                                                  ------      ----
        Total                                        631       568       11
                                                  ------      ----
Provisions for losses                                 43        23       87
                                                  ------      ----
Pretax segment income                                397       389        2
Income tax provision                                 139       123       13
                                                  ------      ----
Segment income                                    $  258      $266       (3)
                                                  ======      ====
</Table>

# - Denotes a variance of more than 100%.

                                      -26-
<Page>

(Preliminary)

                      GLOBAL NETWORK & MERCHANT SERVICES
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                   Quarters Ended
                                                    September 30,
                                                  ----------------   Percentage
                                                   2008      2007    Inc/(Dec)
                                                  ------    ------   ----------
<S>                                               <C>         <C>       <C>
Global Card billed business (A)                   $175.5    $162.5        8%

Global Network & Merchant Services:
  Total segment assets                            $  8.0    $  4.6       74%
  Segment capital (millions) (B)                  $1,437    $1,125       28%
Return on average segment capital (C)               82.4%     84.7%
Return on average tangible segment capital (C)      84.7%     87.5%

Global Network Services:
  Card billed business                            $ 18.2    $ 14.1       29%
  Total cards-in-force (millions)                   24.0      19.2       25
</Table>

(A) Global Card billed business includes activities (including cash advances)
related to proprietary cards, cards issued under network partnership
agreements, and certain insurance fees charged on proprietary cards.

(B) Segment capital includes an allocation attributable to goodwill and other
intangibles of $28 million and $7 million as of the quarter ended September
30, 2008, and $27 million and $5 million as of the quarter ended September 30,
2007, respectively.

(C) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.

                                      -27-
<Page>

(Preliminary)

                      GLOBAL NETWORK & MERCHANT SERVICES
                        SELECTED INCOME STATEMENT DATA

(Millions)

<Table>
<Caption>

                                                                           Quarters Ended
                                                  -------------------------------------------------------------------
                                                  September 30,   June 30,   March 31,   December 31,   September 30,
                                                      2008          2008       2008         2007            2007
                                                  -------------   --------   ---------   ------------   -------------
<S>                                                   <C>          <C>         <C>          <C>               <C>
Revenues
  Discount revenue, fees and other                    $1,016       $1,026      $  942       $  961            $902
                                                      ------       ------      ------       ------            ----
  Interest expense
     Cardmember lending                                  (24)         (25)        (26)         (34)            (33)
     Other                                               (31)         (32)        (35)         (46)            (45)
                                                      ------       ------      ------       ------            ----
Revenues net of interest expense                       1,071        1,083       1,003        1,041             980
                                                      ------       ------      ------       ------            ----
Expenses
  Marketing and promotion                                150          149         136          165             151
  Human resources and other operating expenses           481          422         495          466             417
                                                      ------       ------      ------       ------            ----
        Total                                            631          571         631          631             568
                                                      ------       ------      ------       ------            ----
Provisions for losses                                     43           57          37           31              23
                                                      ------       ------      ------       ------            ----
Pretax segment income                                    397          455         335          379             389
Income tax provision                                     139          156         112          125             123
                                                      ------       ------      ------       ------            ----
Segment income                                        $  258       $  299      $  223       $  254            $266
                                                      ======       ======      ======       ======            ====
</Table>

                                      -28-
<Page>

(Preliminary)

                      GLOBAL NETWORK & MERCHANT SERVICES
                       SELECTED STATISTICAL INFORMATION

(Billions, except percentages and where indicated)

<Table>
<Caption>

                                                                           Quarters Ended
                                                  -------------------------------------------------------------------
                                                  September 30,   June 30,   March 31,   December 31,   September 30,
                                                      2008          2008       2008         2007            2007
                                                  -------------   --------   ---------   ------------   -------------
<S>                                                  <C>           <C>         <C>          <C>             <C>
Global Card billed business (A)                      $175.5        $180.9      $166.4       $177.5          $162.5

Global Network & Merchant Services:
  Total segment assets                               $  8.0        $  7.2      $  6.8       $  6.5          $  4.6
  Segment capital (B)                                $  1.4        $  1.4      $  1.2       $  1.2          $  1.1
Return on average segment capital (C)                  82.4%         88.1%       91.3%        90.7%           84.7%
Return on average tangible segment capital (C)         84.7%         90.7%       94.2%        93.4%           87.5%

Global Network Services:
  Card billed business                               $ 18.2        $ 17.5      $ 15.7       $ 16.0          $ 14.1
  Total cards-in-force (millions)                      24.0          22.6        21.2         20.3            19.2
</Table>

(A) Global Card billed business includes activities (including cash advances)
related to proprietary cards, cards issued under network partnership
agreements, and certain insurance fees charged on proprietary cards.

(B) Segment capital includes an allocation attributable to goodwill and other
intangibles of $28 million and $7 million as of September 30, 2008, $28
million and $11 million as of June 30, 2008, $27 million and $10 million as of
March 31, 2008, $27 million and $4 million as of December 31, 2007, and $27
million and $5 million as of September 30, 2007, respectively.

(C) Refer to Appendix I for components of return on average segment capital
and return on average tangible segment capital.

                                      -29-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                    COMPONENTS OF RETURN ON AVERAGE EQUITY,
 RETURN ON AVERAGE TANGIBLE EQUITY, RETURN ON AVERAGE SEGMENT CAPITAL, AND
                  RETURN ON AVERAGE TANGIBLE SEGMENT CAPITAL
                                  APPENDIX I

(Millions)

<Table>
<Caption>
                                                                               Quarters Ended
                                                    ------------------------------------------------------------------------
                                                    September 30,     June 30,     March 31,    December 31,   September 30,
                                                        2008            2008         2008          2007            2007
                                                    -------------     --------     ---------    ------------   -------------
<S>                                                    <C>             <C>          <C>           <C>             <C>
CONSOLIDATED
   Total net income                                    $ 3,290         $ 3,542      $ 3,946       $ 4,012         $ 4,103
   Average shareholders' equity                        $11,833          11,396       10,977        10,751          10,733
   Average goodwill and other intangibles                2,264           2,006        1,745         1,643           1,603
                                                       -------         -------      -------       -------         -------
      Average tangible shareholders' equity            $ 9,569         $ 9,390      $ 9,232       $ 9,108         $ 9,130
                                                       -------         -------      -------       -------         -------
   Return on average equity (A)                           27.8%           31.1%        35.9%         37.3%           38.2%
   Return on average tangible equity (A)                  34.4%           37.7%        42.7%         44.0%           44.9%

U.S. CARD SERVICES
   Total segment income                                   $795         $ 1,143      $ 1,702       $ 1,823         $ 2,289
   Average segment capital                               4,672           4,567        4,496         4,531           4,532
   Average goodwill and other intangibles                  188             182          176           170             169
                                                       -------         -------      -------       -------         -------
      Average tangible segment capital                 $ 4,484         $ 4,385      $ 4,320       $ 4,361         $ 4,363
                                                       -------         -------      -------       -------         -------
   Return on average segment capital (A)                  17.0%           25.0%        37.9%         40.2%           50.5%
   Return on average tangible segment capital (A)         17.7%           26.1%        39.4%         41.8%           52.5%

INTERNATIONAL CARD SERVICES
   Total segment income                                $   247         $   321      $   322       $   291         $   458
   Average segment capital                               2,102           2,032        1,964         1,900           1,875
   Average goodwill and other intangibles                  544             538          538           539             541
                                                       -------         -------      -------       -------         -------
      Average tangible segment capital                 $ 1,558         $ 1,494      $ 1,426       $ 1,361         $ 1,334
                                                       -------         -------      -------       -------         -------
   Return on average segment capital (A)                  11.8%           15.8%        16.4%         15.3%           24.4%
   Return on average tangible segment capital (A)         15.9%           21.5%        22.6%         21.4%           34.3%

GLOBAL COMMERCIAL SERVICES
   Total segment income                                $   622         $   623      $   558       $   536         $   543
   Average segment capital                               2,933           2,637        2,407         2,118           2,069
   Average goodwill and other intangibles                1,515           1,303        1,092           881             843
                                                       -------         -------      -------       -------         -------
      Average tangible segment capital                 $ 1,418         $ 1,334      $ 1,315       $ 1,237         $ 1,226
                                                       -------         -------      -------       -------         -------
   Return on average segment capital (A)                  21.2%           23.6%        23.2%         25.3%           26.2%
   Return on average tangible segment capital (A)         43.9%           46.7%        42.4%         43.3%           44.3%

GLOBAL NETWORK & MERCHANT SERVICES
   Total segment income                                $ 1,034         $ 1,042      $ 1,009       $ 1,022         $   969
   Average segment capital                               1,255           1,183        1,105         1,127           1,144
   Average goodwill and other intangibles                   34              34           34            33              36
                                                       -------         -------      -------       -------         -------
      Average tangible segment capital                 $ 1,221         $ 1,149      $ 1,071       $ 1,094         $ 1,108
                                                       -------         -------      -------       -------         -------
   Return on average segment capital (A)                  82.4%           88.1%        91.3%         90.7%           84.7%
   Return on average tangible segment capital (A)         84.7%           90.7%        94.2%         93.4%           87.5%
</Table>

(A) Return on average equity and return on average segment capital are
calculated by dividing one year period net income/segment income by one year
average total shareholders' equity/average segment capital, respectively.
Return on average tangible equity and return on average tangible segment
capital is computed in the same manner as return on average equity and return
on average segment capital except the computation of average tangible
shareholders' equity and average tangible segment capital excludes average
goodwill and other intangibles.

                                       -30-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                 CONSOLIDATED SELECTED STATISTICAL INFORMATION
                                  APPENDIX II

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                                Quarters Ended
                                                  ---------------------------------------------------------------------------------
                                                  June 30,     March 31,    December 31     September 30,    June 30,     March 31,
                                                    2007         2007          2006             2006           2006         2006
                                                  --------     ---------    -----------     -------------    --------     ---------
<S>                                                <C>          <C>           <C>              <C>            <C>          <C>
Worldwide cardmember lending - owned basis (A):
  30 days past due loans as a % of total (B)          2.2%         2.4%          2.2%             2.3%           2.2%         2.1%
  Loss reserves (millions):
    Beginning balance                              $1,271       $1,171        $1,126           $1,086         $1,053       $  996
      Provision                                       606          542           451              381            376          299
      Net write offs - principal                     (390)        (362)         (351)            (310)          (297)        (243)
      Write offs - interest and fees                  (83)         (77)          (54)             (43)           (34)         (27)
      Other                                            13           (3)           (1)              12            (12)          28
                                                   ------       ------        ------           ------         ------       ------
    Ending balance                                 $1,417       $1,271        $1,171           $1,126         $1,086       $1,053
                                                   ======       ======        ======           ======         ======       ======
    % of past due (B)                                 131%         123%          121%             130%           138%         152%
  Net write-off rate (C)                              3.4%         3.4%          3.5%             3.3%           3.4%         3.0%

Worldwide cardmember lending - managed basis (D):
  30 days past due loans as a % of total (B)          2.3%         2.5%          2.3%             2.3%           2.2%         2.2%
  Loss reserves (millions):
    Beginning balance                              $1,787       $1,622        $1,571           $1,546         $1,554       $1,469
      Provision                                       780          797           608              512            478          393
      Net write offs - principal                     (540)        (511)         (471)            (424)          (406)        (346)
      Write offs - interest and fees                 (122)        (117)          (86)             (74)           (68)         (58)
      Other                                            12           (4)            -               11            (12)          96
                                                   ------       ------        ------           ------         ------       ------
    Ending balance                                 $1,917       $1,787        $1,622           $1,571         $1,546       $1,554
                                                   ======       ======        ======           ======         ======       ======
    % of past due (B)                                 124%         115%          111%             116%           125%         132%
  Net write-off rate (C)                              3.3%         3.3%          3.1%             2.9%           2.9%         2.6%
</Table>

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

(B) These metrics were revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to
current balances.

(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. The owned and managed net
write-off rates for 2007 were 3.5% and 3.3%, respectively, and for 2006 were
3.3% and 2.9%, respectively.

(D) 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. Refer to the information set forth under U.S. Card
Services Selected Financial Information on page 20 for further discussion of
the managed basis presentation.

                                      -31-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
              U.S. CARD SERVICES AND INTERNATIONAL CARD SERVICES
                       SELECTED STATISTICAL INFORMATION
                                 APPENDIX III

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                                Quarters Ended
                                                  ---------------------------------------------------------------------------------
                                                  June 30,     March 31,    December 31     September 30,    June 30,     March 31,
                                                    2007         2007          2006             2006           2006         2006
                                                  --------     ---------    -----------     -------------    --------     ---------
<S>                                                   <C>          <C>           <C>              <C>            <C>          <C>
USCS Cardmember lending - owned basis (A):
  30 days past due loans as a % of total (B)          2.1%         2.3%          2.1%             2.0%           1.8%         1.7%
  Net write-off rate (C)                              2.9%         2.9%          2.8%             2.5%           2.4%         2.1%

USCS Cardmember lending - managed basis (D):
  30 days past due loans as a % of total (B)          2.1%         2.4%          2.2%             2.2%           2.0%         2.0%
  Net write-off rate (C)                              2.9%         2.9%          2.6%             2.4%           2.3%         2.0%

ICS Cardmember lending:
  Net write-off rate (C)                              5.2%         5.0%          5.7%             5.9%           6.4%         5.5%
</Table>

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

(B) This metric was revised for U.S. Card Services to align with industry
practice and International Card Services whereby payments made by U.S.
cardmembers after billing cycle cut but before month end are applied to their
oldest balance. Previously, U.S. Card Services applied such payments to
current balances.

(C) In the third quarter 2008, the Company revised its method of reporting the
cardmember lending net write-off rate. Historically, the net write-off rate
has been presented using net write-off amounts for principal, interest, and
fees. However, industry convention is generally to include only the net
write-offs related to principal in write-off rate disclosures. The Company is
presenting the net write-off rate using the net write-off amounts for
principal only, consistent with industry convention. The owned and managed net
write-off rates for U.S. Card Services for 2007 were 3.1% and 3.1%,
respectively, and for 2006 were 2.5% and 2.3%, respectively. The net write-off
rates for International Card Services for 2007 and 2006 were 4.8% and 5.9%,
respectively.

(D) 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. Refer to the information set forth under U.S. Card
Services Selected Financial Information on page 20 for further discussion of
the managed basis presentation.

                                      -32-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>exhibit99_3supp.txt
<DESCRIPTION>EXHIBIT 99.3 EARNINGS SUPPLEMENT
<TEXT>
                                                                    EXHIBIT 99.3

                      [LOGO OF AMERICAN EXPRESS COMPANY]

                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED



                                     2008
                                 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 2008 EARNINGS RELEASE.

       ----------------------------------------------------------------------
       THIS PRESENTATION CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT 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 22 OF
       THIS SUPPLEMENT, PAGES 63-64 IN THE COMPANY'S 2007 ANNUAL REPORT TO
       SHAREHOLDERS AND IN ITS 2007 ANNUAL REPORT ON FORM 10-K, AND OTHER
       REPORTS, ON FILE WITH THE SECURITIES AND EXCHANGE COMMISSION.
       ----------------------------------------------------------------------

<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED


FINANCIAL RESULTS

o    Third quarter diluted EPS from continuing operations of $0.74 decreased
     21% versus $0.94 last year. Revenues net of interest expense rose 3%.
     Return on average equity (ROE) was 28% and return on average tangible
     equity (ROTE), which excludes goodwill and intangibles, was 34%.*

     -   3Q '08 and 3Q '07 Income from continuing operations included $11MM
         ($7MM after-tax) and $10MM ($7MM after-tax), respectively, of
         reengineering costs primarily within Corporate & Other and Global
         Network & Merchant Services ("GNMS") in 3Q '08 and Global Commercial
         Services ("GCS") in 3Q `07.

     -   The discontinued operations line in the Consolidated Financial
         Statements contains the results, assets and liabilities related to
         various business sales. This primarily includes the results from
         American Express Bank, Ltd. ("AEB"), which was sold to Standard
         Chartered PLC ("Standard Chartered") in 1Q '08, as well as American
         Express International Deposit Company, ("AEIDC"), which is contracted
         to be sold to Standard Chartered through a put/call agreement in
         August 2009, as discussed further on page 4.
         --   3Q '08 results reflected ($46MM) of losses from discontinued
              operations versus ($55MM) of losses last year, primarily
              reflecting charges of $69MM ($45MM after-tax) and $81MM ($41MM
              after-tax) in each respective period, for mark-to-market
              adjustments and sales within the AEIDC investment portfolio.

     -   Including discontinued operations, diluted EPS on a net income basis of
         $0.70 decreased 22% versus last year.

BUSINESS METRICS

o Compared with the third quarter of 2007:

     -   Worldwide billed business of $175.5B increased 8% on relatively
         strong growth within both the proprietary and network businesses. A
         comparatively weaker U.S. dollar resulted in a 1% benefit within the
         reported worldwide growth rate.

     -   Worldwide total cards-in-force of 92.1MM increased 9%, up 7.4MM from
         last year and 2.0MM during 3Q '08, on continued proprietary and
         network card growth.

     -   Worldwide average spending per proprietary basic card-in-force
         increased 1% versus last year reflecting the suppressing effect of a
         more difficult U.S. economy and substantial card additions over the
         past few years.

     -   Worldwide lending balances of $45.8B on an owned basis decreased 9%;
         on a managed basis, worldwide lending balances of $75.6B were up 5%.

FINANCIAL HIGHLIGHTS

o    FINANCIAL REPORTING CHANGES. The following revisions were made in 3Q '08
     to the financial reporting of discontinued operations and certain credit
     metrics:

     -   DISCONTINUED OPERATIONS: As part of the Company's agreement to sell
         AEIDC to Standard Chartered, as referenced above and further
         discussed on page 4, the results of AEIDC have been removed from the
         Corporate & Other segment and are now reported in the discontinued
         operations line on the Company's Consolidated Statements of Income
         for all prior periods. Please refer to the Company's Form 8-K filing
         dated September 12, 2008 for the financial and other information
         reflecting the inclusion of AEIDC as a discontinued operation for all
         historical periods.

- - CREDIT METRICS:**

         --  CARDMEMBER LENDING NET WRITE-OFF RATE: In 3Q '08, the Company
              revised its method of reporting the cardmember lending net
              write-off rate. Historically, the net write-off rate has been
              presented using net write-off amounts for principal, interest
              and fees. However, industry convention is generally to include
              only the net write-offs related to principal in write-off rate
              disclosures. The Company is presenting the net write-off rate
              using the net write-off amounts for principal only, consistent
              with industry convention.

         --   30 DAYS PAST DUE AS A % OF LOANS AND RESERVES AS A % OF 30 DAYS
              PAST DUE ACCOUNTS: These metrics were revised for the U.S. Card
              Services ("USCS") segment to align with industry practice and
              the International Card Services ("ICS") segment, whereby
              payments made by U.S. cardmembers after billing cycle cut, but
              before month-end, are applied to their oldest balance.
              Previously, USCS applied such payments to current balances.

         --   Neither of these credit metric modifications indicates a change
              in management's view of the Company's underlying credit quality
              or risk profile, and they do not impact the method in which the
              Company assesses the adequacy of its reserves.

  * Please refer to Appendix I of the Third Quarter 2008 Earnings Release for
    the components of ROE and ROTE on both a consolidated and segment basis.
 ** Please refer to Appendix II & III of the Third Quarter 2008 Earnings
    Release, American Express Company Selected Statistical Information pages,
    for revised credit metrics for quarters ended March 31, 2006 through
    June 30, 2007.  Revised credit metrics for quarters ended September 30, 2007
    through June 30, 2008 are included within the relevant Third Quarter 2008
    Earnings Release, American Express Company Selected Statistical Information
    pages.



                                     -1-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED

o    SECURITIZATION INCOME, NET: Decreased 49% primarily due to lower excess
     spread, net, driven by increased write-offs and a $100MM ($62MM
     after-tax) charge to the fair value of the I/O Strip, which were
     partially offset by higher finance charges and fees due to a greater
     average balance of securitized loans and lower interest expense due to
     lower rates paid on investor certificates. The charge to the I/O Strip
     was driven primarily by higher expected write-offs and interest expense
     due to changes in recent market conditions. As of September 30, the fair
     market value of the I/O Strip was $38MM, versus $223MM as of December 31,
     2007.

o    TOTAL INTEREST INCOME: Decreased 3% due to a lower average loan balance
     and a lower portfolio yield, driven by the impact of reduced market
     interest rates on variably priced assets.

o    TOTAL INTEREST EXPENSE: Decreased 16%, reflecting a lower cost of funds,
     due to the benefit of lower market interest rates on short-term and
     variable-rate debt, which more than offset the cost of higher funding
     levels related to increased cash amounts and other liquidity resources.

o    MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES EXPENSES: Increased
     7% on higher volume-driven rewards costs. Marketing and promotion
     expenses were flat versus the prior year, reflecting a consistent
     consolidated level of business-building investments versus 3Q '07, but
     with a greater emphasis on our non-U.S. activities.

o    HUMAN RESOURCES EXPENSE: Increased 7%, reflecting the impact of a higher
     level of employees and greater merit and salesforce-related incentive
     costs.

     -   Compared with last year, the total employee count from continuing
         operations of 66,500 increased by 1,500 employees, or 2%. Compared
         with last quarter, the employee count was flat.

o    TOTAL PROVISIONS FOR LOSSES: Increased 51% primarily reflecting the
     difficult U.S. credit environment, which led to increased write-off and
     delinquency rates, as well as increased business volumes, partially offset
     by lower average owned loan balances.

CAPITAL, LIQUIDITY, AND FUNDING

o    CAPITAL RETURNED TO SHAREHOLDERS. During 3Q '08 we returned 24% of
     capital generated to shareholders through our quarterly dividend. On a
     cumulative basis, since 1994, we have returned 68% of capital generated
     through share repurchases and dividends.

     -  SHARE REPURCHASES: During 3Q '08 and 2Q '08 no shares were
        repurchased, versus 15MM shares in 3Q '07. Share repurchases were
        suspended during 1Q '08 in light of the uncertain U.S. economic
        environment. Since the inception of repurchase programs in December
        1994, 670MM shares have been acquired under cumulative Board
        authorizations to repurchase up to 770MM shares.

<TABLE>
<CAPTION>

                                                                                    Millions of Shares
                                                                       ---------------------------------------------
     -  ACTUAL SHARE ACTIVITY:                                           3Q '08           2Q '08            3Q '07
                                                                         ------           ------            ------
<S>                                                                     <C>              <C>               <C>
           Shares outstanding - beginning of period                       1,159            1,158             1,182
           Repurchase of common shares                                        -                -               (15)
           Employee benefit plans, compensation and other                     1                1                 2
                                                                         ------           ------            ------
           Shares outstanding - end of period                             1,160            1,159             1,169
                                                                         ======           ======            ======
</TABLE>

     CAPITAL AND FUNDING NEEDS: In light of recent conditions in the financial
     markets, the Company provided an update regarding its liquidity and
     capital resources in a Form 8-K filed with the SEC on October 6, 2008
     ("October 8-K").

     During 2008, the Company increased its surplus capital above normal
     historical levels by retaining a larger portion of the capital and funds
     generated from ongoing business operations.

     The Company's 2008 funding plan currently targets the issuance of
     approximately $27B of term debt for the year, including off-balance sheet
     securitizations of credit card loans. Through September 30,
     2008, the Company had raised approximately $23B, or 85% of this
     total. The Company's current funding targets for 2008 are approximately
     $5B lower than the amount reported in the Company's Quarterly
     Report on Form 10-Q for the three months ended June 30, 2008. The
     decrease from prior levels primarily reflects slower expected growth in
     the Company's credit card loans outstanding and reductions in net
     operating cash needs.

     Notwithstanding the difficult conditions in the financial markets during
     the past year, the Company has satisfied all maturing obligations and
     funded its growth by accessing a variety of sources, including long and
     short-term debt, off-balance sheet securitizations and bank deposits.
     Similar to most issuances across debt markets, the Company's issuances of
     debt securities and securitizations through September have included
     spreads above benchmark rates that are greater than those on similar
     issuances completed during the prior several years. During the recent
     market turmoil, the Company has continued to issue commercial paper.
     While these commercial paper issuances have occurred at shorter weighted
     average maturities than the Company's historic trend, the shorter term is
     consistent with the issuances occurring in the current overall commercial
     paper market.


                                     -2-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED

     The upcoming approximate maturities of the Company's long-term debt and
     debt issued in connection with off-balance sheet securitizations are as
     follows:

<TABLE>
<CAPTION>

                                       Debt Maturities, in billions
                              ---------------------------------------------
        QUARTER ENDING:        LONG-TERM     OFF-BALANCE SHEET       TOTAL
        ---------------        ----------    ------------------      ------
<S>                            <C>                <C>          <C>
        December 31, 2008         $3.6                 -              $3.6
        March 31, 2009             2.3              $1.5               3.8
        June 30, 2009              7.2               0.6               7.8
        September 30, 2009         2.9               2.7               5.6
        December 31, 2009          2.9                 -               2.9
</TABLE>

     As of September 30, 2008, the Company's approximate U.S. capital market
short-term outstandings were as follows:

<TABLE>
<CAPTION>
        IN BILLIONS                      Commercial          Bank Time       Total
                                           Paper             Deposits
                                         ----------         ----------      ----------
<S>                                        <C>                <C>           <C>
        Gross Amount                           $9                 $9            $18*
        Proceeds from issuance invested
         in cash and equivalents               (5)                (7)           (12) **
                                         ----------         ----------      ----------
        Net amount                             $4                 $2             $6
                                         ==========         ==========      ==========
</TABLE>


         *  Excludes FDIC-insured demand deposits of approximately $4B and
            non-U.S. short-term term debt and deposits of approximately $3B.
         ** Excludes cash and cash equivalents on hand for day to day
            operations.


o    LIQUIDITY. As discussed in the Company's October 8-K, in addition to the
     short-term and long-term capital market programs that the Company has
     accessed to date to satisfy its funding needs, as of September 30, 2008,
     the Company had in place various sources of cash including:

     -    $12B of cash and cash equivalents (as referenced above) for liquidity
          purposes, which excludes cash and cash equivalents on hand to fund
          day-to-day operations;

     -    A $5B liquidity investment portfolio of U.S. Treasury and government
          agency securities;

     -    A $5B undrawn committed facility to purchase securitized credit card
          receivables; and

     -    $9B of undrawn committed bank credit facilities.

     In addition, the Company's subsidiaries, American Express Centurion Bank
     and American Express Bank, FSB (together, the "Banks") are insured
     depository institutions that have the capability of borrowing from the
     Federal Reserve Bank of San Francisco (i.e., access to the Federal
     Reserve Bank discount window), subject to the amount of qualifying
     collateral that they pledge. The Federal Reserve has indicated that
     credit card receivables are a form of qualifying collateral for secured
     borrowings made through the discount window or its Term Auction Facility
     (TAF) program. On October 3, 2008, the Banks were approved to access the
     discount window, subject to the discretion of the Federal Reserve Bank of
     San Francisco, thereby providing the Banks with an additional source of
     contingent liquidity, if needed.

     The Company has approximately $45B in U.S. credit card loans and
     charge card receivables that could be sold over time through its existing
     securitization trusts, its undrawn committed securitization facility
     referred to above or pledged in return for secured borrowings to provide
     further liquidity.

     In consideration of all the funding sources described above, the Company
     believes that it would have the liquidity to satisfy all maturing
     obligations and fund normal business operations for at least a 12-month
     period in the event that access to the secured and unsecured fixed income
     capital markets were interrupted.

     The Company consistently looks to expand its funding options. As such, in
     3Q '08 the Company, through its American Express Credit Corporation,
     ("Credco"), subsidiary, commenced an InterNotes(R) program which offers
     individual investors the opportunity to make unsecured medium and
     long-term fixed income investments in the Company through retail broker
     distribution. Additionally, the Company recently launched a retail
     certificate of deposit program through the Banks. To date, these
     two recently launched programs have raised over $700MM of funding.

     On October 7, 2008 the Federal Reserve Board (the "Board") announced the
     creation of the Commercial Paper Funding Facility ("CPFF"). The CPFF will
     provide three-month liquidity to U.S. issuers of commercial paper through
     a special purpose vehicle, ("SPV") which will purchase three-month
     unsecured and asset-backed commercial paper directly from eligible
     issuers using financing provided by the Federal Reserve Bank of New York.
     The commercial paper must be rated at least A1/P1/F1 by a major
     nationally recognized statistical rating organization ("NRSRO") and, if
     rated by multiple major NRSROs, must be rated at least A1/P1/F1 by two or
     more NRSROs. Commercial paper issuers must register with the CPFF in
     order to sell commercial paper to the SPV. Registration is scheduled to
     begin on Monday, October 20, 2008 and access to the SPV is scheduled to
     begin on Monday, October 27, 2008. The maximum amount of a single
     issuer's commercial paper the SPV may own at any time is limited to the
     greatest amount of U.S. denominated commercial paper outstanding on any
     day between January 1 and August 31, 2008. The SPV will cease purchasing
     commercial paper on April 30, 2009, unless the Board extends the
     facility. The Company believes that Credco, which issues unsecured
     commercial paper and has a short term credit rating of A1/P1/F1, is
     eligible to participate in this program. Once eligibility is determined,
     the Company expects that Credco will register with the CPFF in order to
     prudently manage its liquidity profile and further diversify its sources
     of funding. The Company's greatest amount of commercial paper outstanding
     during the reference period was approximately $14.7B.


                                     -3-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED

     On October 14, 2008 the Federal Deposit Insurance Corporation ("FDIC")
     announced the establishment of a new program - the Temporary Liquidity
     Guarantee Program ("TLGP") - to temporarily guarantee newly-issued senior
     unsecured debt of eligible entities, and by providing full coverage to
     non-interest-bearing deposit accounts in FDIC-insured institutions,
     regardless of amount. Under the plan, certain newly-issued senior
     unsecured debt issued on or before June 30, 2009, would be fully
     protected in the event the issuing entity subsequently fails, or its
     holding company files for bankruptcy. Coverage would end on June 30, 2012,
     even if the maturity exceeds that date. The amount of debt covered by the
     TLGP may not exceed 125 percent of senior unsecured debt that was
     outstanding as of September 30, 2008 and that was scheduled to mature
     before June 30, 2009. The Company believes that its subsidiary Banks, as
     FDIC depository institutions, are both eligible to participate in this
     program. The Bank's senior unsecured debt as of September 30, 2008 that is
     scheduled to mature within the reference period is approximately $7.1B.


OTHER ITEMS OF NOTE

o    VISA AND MASTERCARD LITIGATION SETTLEMENTS: In November of 2004 the
     Company filed suit against Visa Inc., Visa USA and Visa International
     (collectively "Visa"), MasterCard Inc., ("MasterCard") and certain of
     their member banks to seek monetary damages for the lost business
     opportunity that resulted from the illegal conspiracy to boycott American
     Express from partnering with U.S. credit card issuing banks. The Company
     announced that it had reached an agreement with Visa on November 7, 2007
     and with MasterCard on June 25, 2008. All defendants have been removed
     and the case is now dismissed.

     Under the terms of the settlement agreements, the Company will receive
     aggregate maximum payments of $2.25B from Visa and $1.8B from MasterCard.
     The total of more than $4.0B represents the largest antitrust settlement
     in U.S. history. The settlement with Visa is comprised of an initial
     payment of $1.13B ($700MM after-tax) that was recorded in 4Q '07 and
     received in March 2008, and quarterly payments of up to $70MM ($43MM
     after-tax) for four years from 1Q '08 through 4Q '11. The settlement with
     MasterCard is comprised of quarterly payments of up to $150MM ($93MM
     after-tax) for three years from 3Q '08 through 2Q '11. The Company has
     recognized $70MM from Visa in each of the three quarters of 2008 and
     $150MM from MasterCard in 3Q '08 pursuant to these agreements.

     Installment payments from both parties are subject to the Company
     achieving certain quarterly performance criteria in the Global Network
     Services ("GNS") business within the U.S., which the Company is
     optimistic it is positioned to meet. Payments earned through September
     2008 have been recorded as a reduction to the "other, net" expense line
     within the Corporate & Other segment.

o    ACQUISITION OF CPS: On March 28, 2008, the Company completed its purchase
     of GE's commercial card and corporate purchasing business unit, CPS, for
     $1.1B in cash and the repayment of $1.2B in CPS debt. The purchase
     included card relationships with GE as well as more than 300 large
     corporate clients, which cumulatively generated over $14B in global
     purchase volume in 2007. The Company expects that this acquisition will
     be additive to revenue growth, and will have a minor dilutive impact on
     both EPS and ROE in the early years following the transaction. This
     dilution estimate assumes the cash used for the purchase price would
     otherwise have been used for the repurchase of American Express common
     shares.

     In 1Q '08 the cash payment, total receivables of $1.3B and goodwill and
     other intangible assets of $1.0B related to the transaction were
     reflected on the Consolidated Balance Sheet. Receivables have been
     initially recorded within the other receivables ($1.2B) and other loans
     ($0.1B) lines. As underlying cardmember relationships migrate to AXP
     products over the coming quarters, the associated receivables will be
     reflected in the cardmember receivables and "cardmember lending" lines.
     As the receivables are related to commercial card relationships, they are
     reflected within the GCS segment, while the loans, related to small
     business relationships, are reflected within the USCS segment. The
     goodwill and intangible assets are recorded in the other assets line on
     the Consolidated Balance Sheet, and have been preliminarily allocated to
     the GCS ($1.0B) and USCS ($21MM) segments, respectively.

o    AEB AND AEIDC: On September 18, 2007, the Company announced that it
     entered into an agreement to sell AEB, its international banking
     subsidiary, and AEIDC, a subsidiary which issues investment certificates
     to AEB's customers, to Standard Chartered. On February 29, 2008, Standard
     Chartered completed its purchase of the AEB portion of this transaction.
     In 2Q '08, the Company and Standard Chartered agreed on the final
     purchase price of $796MM, equaling the final net asset value of the
     businesses that were sold plus $300MM. The Company also expects to
     realize an additional amount representing the final net asset value of
     AEIDC which is contracted to be sold to Standard Chartered through a
     put/call agreement. As of September 30, 2008, the net asset value of that
     business was $50MM. This value is expected to be realized through (i)
     dividends from the subsidiary to the Company and (ii) a subsequent
     payment from Standard Chartered based on the net asset value of AEIDC on
     the date the business is transferred, which will occur in August 2009.

     As a result of the agreement, beginning with 3Q '07 and for all prior
     periods, AEB results, assets and liabilities (except for certain
     components of the business which were not sold) were removed from the
     Corporate & Other segment and reported within Discontinued Operations on
     the Company's Consolidated Financial Statements. Beginning with 3Q '08
     and for all prior periods, AEIDC results, assets and liabilities were
     removed from the Corporate & Other segment and reported within
     Discontinued Operations on the Company's Consolidated Financial
     Statements.

EXPANDED PRODUCTS AND SERVICES

o    During the quarter, American Express continued to invest in growth
     opportunities through expanded products and services.

     In our proprietary issuing and network business we:
     -  With our co-brand partner, David Jones, launched the David Jones
        American Express Card in Australia, where customers will be able to
        use this credit card both inside and outside of David Jones stores.
     -  Announced an alliance with Concur Technologies, Inc., a leading
        provider of on-demand T&E expense management services involving both
        an exclusive marketing partnership and strategic equity investment in
        the company. Concur will exclusively promote American Express's
        Corporate Cards to its clients, in return for promotional exclusivity
        of Concur(R) Expense by American Express's Global Commercial Card and
        Global Business Travel businesses.
     -  Signed a multi-year preferred supplier agreement with Carson Wagonlit
        Travel (CWT). As part of the agreement, CWT will promote and
        distribute three American Express payment solutions - Business Travel
        Account, Corporate Card and Corporate Meeting Card - to its clients
        and prospects in 21 countries.
     -  With International Speedway Corporation ("ISC") announced that the
        American Express(R) Card is now accepted at all ISC events and
        properties across the country.
     -  Announced that American Express Cards are now accepted for auction
        purchases at Christie's in the United States.
     -  With Starwood Hotels & Resorts Worldwide, Inc., announced a $75 food
        and beverage credit whenever Gold Card members book a stay of two or
        more consecutive nights at over 500 properties around the world across
        four Starwood brands: W Hotels, Westin Hotels & Resorts, Le Meridien
        Hotels & Resorts and Sheraton Hotels & Resorts.
     -  Added seven new travel agencies to the American Express Travel U.S.
        Representative Network: Corporate Travel Planners in San Antonio,
        Texas; Cruises-N-More in Orlando, Florida; El Sol Travel in Tempe,
        Arizona; Elite Travel Group in Clearwater, Florida; Main Street Travel
        in Lakewood Ranch, Florida; Mundi Travel in San Jose, California; and
        Travel On, Ltd. in Beltsville, Maryland.
     -  Announced our intent to launch BusinessTravelConnexion.com, a
        business-to-business online network for the corporate travel industry.
        Designed as a place for members to connect, share, and learn,
        BusinessTravelConnexion.com will bring together a consortium of
        industry decision makers, and subject-matter experts, educational
        resources, and perspectives from across the industry to create the
        most extensive online, business travel community.
     -  Signed a hotel folio agreement with InterContinental Hotels Group
        ("IHG") that enables American Express to provide its corporate card
        customers with reports that break down their lodging expenditures at
        nearly 2,800 IHG properties in the U.S.
     -  Announced a $1MM donation to make eight U.S. cities cleaner,
        greener and more beautiful through the Root For Our City Challenge.
     -  Announced a partnership between American Express OPEN and Women
        Impacting Public Policy to launch "Give Me 5: Education and Access for
        Women in Federal Contracts." The national program is designed to
        educate women business owners on how to apply for and secure federal
        procurement opportunities.
     -  Released our latest television spot featuring comedian and actress
        Tina Fey and director Martin Scorsese showcasing how American Express
        provides exclusive travel benefits for Platinum Card(R) members.

     In our Global Network Services ("GNS") business we:

     -  Partnered with Westpac New Zealand to launch a new credit card that
        boosts the points earning power of Westpac's hotpoints rewards program
        by up to 50%.

     -  With our new partner Crnogorska Komercijalna Banka, a member of the
        OTP Group, launched the first American Express Gold Credit Cards
        issued in Montenegro.

     -  Expanded our partnership with MCB and launched the first American
        Express Green Card and Gold Card in Mauritius.

     -  With our new partner Iberia Cards, issued Iberia Sendo American Express
        Cards in Spain.

     On September 3, 2008, J.D. Power and Associates released its second
     annual nationwide credit card satisfaction study and ranked American
     Express highest in overall satisfaction among 18 of the largest card
     issuers in the U.S.


                                     -5-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED
<TABLE>
<CAPTION>
(Preliminary)

                              STATEMENTS OF INCOME
                                  (GAAP BASIS)

         (Millions, except per share amounts)                   Quarters Ended    Percentage
                                                                 September 30,    Inc/(Dec)
                                                            --------------------  ----------
                                                              2008        2007
                                                              ----        ----
<S>                                                       <C>       <C>             <C>
Revenues
   Discount revenue                                         $3,848     $3,659          5%
   Net card fees                                               577        522         11
   Travel commissions and fees                                 499        484          3
   Other commissions and fees                                  573        644        (11)
   Securitization income, net                                  200        392        (49)
   Other                                                       551        443         24
                                                            ------     ------
     Total                                                   6,248      6,144          2
                                                            ------     ------
Interest income
   Cardmember lending finance revenue                        1,521      1,581         (4)
   Other                                                       238        239          -
                                                            ------     ------
     Total                                                   1,759      1,820         (3)
                                                            ------     ------
         Total Revenues                                      8,007      7,964          1
                                                            ------     ------
Interest expense
    Cardmember lending                                         346        444        (22)
    Charge card and other                                      497        564        (12)
                                                            ------     ------
      Total                                                    843      1,008        (16)
                                                            ------     ------
Revenues net of interest expense                             7,164      6,956          3
                                                            ------     ------
Expenses
   Marketing, promotion, rewards and cardmember services     1,929      1,810          7
   Human resources                                           1,465      1,366          7
   Professional services                                       608        539         13
   Occupancy and equipment                                     398        374          6
   Communications                                              118        118         --
   Other, net                                                  200        339        (41)
                                                            ------     ------
      Total                                                  4,718      4,546          4
                                                            ------     ------
 Provisions for losses
   Charge card                                                 351        279         26
   Cardmember lending                                          958        579         65
   Other                                                        59         47         26
                                                            ------     ------
      Total                                                  1,368        905         51
                                                            ------     ------

Pretax income from continuing operations                     1,078      1,505        (28)
Income tax provision                                           217        383        (43)
                                                            ------     ------
Income from continuing operations                              861      1,122        (23)
Loss from discontinued operations, net of tax                  (46)       (55)       (16)
                                                            ------     ------
Net income                                                 $   815    $ 1,067        (24)
                                                            ======     ======
EPS-Basic
   Income from continuing operations                       $  0.75    $  0.96        (22)
                                                            ======     ======
   Loss from discontinued operations                         (0.04)     (0.05)       (20)
                                                            ======     ======
   Net Income                                              $  0.71    $  0.91        (22)
                                                            ======     ======

EPS-Diluted
   Income from continuing operations                       $  0.74    $  0.94        (21)
                                                            ======     ======
   Loss from discontinued operations                         (0.04)     (0.04)        --
                                                            ======     ======
   Net Income                                              $  0.70    $  0.90        (22)
                                                            ======     ======

Average Shares Outstanding
   Basic                                                     1,154      1,170         (1)
                                                            ======     ======
   Diluted                                                   1,158      1,192         (3)
                                                            ======     ======
</TABLE>


<PAGE>
o    CONSOLIDATED REVENUES NET OF INTEREST EXPENSE: Consolidated revenues net
     of interest expense increased 3%, reflecting a decrease versus last year
     of 4% in USCS, and increases of 11% in ICS, 13% in GCS and 9% in GNMS.
     Revenues net of interest expense increased due to greater discount
     revenues, lower interest expense, higher other revenues, increased net
     card fees and greater travel commissions and fees, partially offset by
     lower securitization income, net, lower other commissions and fees and
     lower interest income. Translation of foreign currency benefited the
     revenues net of interest expense growth rate by approximately 1%.

o    CONSOLIDATED EXPENSES: Consolidated expenses increased 4%, reflecting
     increases of 6% in USCS, 13% in ICS, 14% in GCS and 11% in GNMS. The
     total expense growth reflected higher marketing, promotion, rewards and
     cardmember services expense, greater human resources expense, higher
     professional services expense, increased occupancy and equipment costs,
     and flat communications expense, partially offset by lower other, net
     expense. Translation of foreign currency contributed approximately 1% to
     the expense growth rate.

o    CONSOLIDATED PROVISIONS FOR LOSSES: Consolidated provisions for losses
     increased 51% versus last year, reflecting increases of 47% in USCS, 60%
     in ICS, 43% in GCS and 87% in GNMS. Provisions rose primarily due to the
     difficult credit environment, which led to increased write-off and
     delinquency rates versus last year and increased merchant-related
     reserves. Translation of foreign currency had a minimal impact on the
     provision growth rate.

o    PRE-TAX MARGIN: Was 15.0% in 3Q '08 compared with 10.4% in 2Q '08 and 21.6%
     in 3Q '07.

o    EFFECTIVE TAX RATE: Was 20% in 3Q '08 versus 15% in 2Q '08 and 25% in 3Q
     '07. The rates for each of these periods reflect tax benefits related to
     the resolution of certain prior years' tax items as well as the benefit
     of the revision of our estimated annual effective tax rate.

o    DISCOUNT REVENUE: Rose 5% on an 8% increase in billed business. The
     slower revenue versus billed business growth reflects the relatively
     faster growth in billed business related to GNS, where we share discount
     revenue with our card issuing partners, and higher cash-back rewards
     costs.

     -   The average discount rate* was 2.56% in 3Q '08 and in 2Q '08 versus
         2.57% in 3Q '07. As indicated in prior quarters, selective repricing
         initiatives, changes in the mix of business and volume-related
         pricing discounts will likely result in some erosion of the average
         discount rate over time.

<TABLE>
<CAPTION>
                                                             Quarters Ended                   Percentage
                                                              September 30,                   Inc/(Dec)
                                                     --------------------------------       ---------------
                                                            2008                 2007

<S>                                               <C>                   <C>               <C>
Card billed business* (billions):
   United States                                      $    120.3           $    115.2             4%
   Outside the United States                                55.2                 47.3            17
                                                      ----------           ----------          -----
   Total                                              $    175.5           $    162.5             8
                                                      ==========           ==========          =====


Total cards-in-force (millions):
   United States                                            54.3                 51.7             5
   Outside the United States                                37.8                 33.0            15
                                                      ----------           ----------          -----
   Total                                                    92.1                 84.7             9
                                                      ==========           ==========          =====


Basic cards-in-force (millions):
   United States                                            42.3                 40.1             5
   Outside the United States                                32.8                 28.3            16
                                                      ----------           ----------          -----
   Total                                                    75.1                 68.4            10
                                                      ==========           ==========          =====


Average basic cardmember spending**
   United States                                      $    3,167             $  3,192              (1)
   Outside the United States                          $    2,752             $  2,542               8
   Total                                              $    3,049             $  3,006               1
</TABLE>


   * For additional information about billed business and discount
     rate calculations, please refer to the Third Quarter 2008
     Earnings Release, American Express Company Selected
     Statistical Information pages.
  ** Proprietary card activity only.


                                     -7-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED

     WORLDWIDE BILLED BUSINESS: The 8% increase in worldwide billed business
     reflected increases of 4% in USCS, 11% in ICS, 8% in GCS and 29% in
     GNS partner volume. The table below summarizes selected billed
     business related statistics for 3Q '08:
<TABLE>
<CAPTION>
                                                                            Percentage
                                                                             Increase
                                                                            Assuming No
                                                                            Changes in
                                                          Percentage          Foreign
                                                           Increase       Exchange Rates
                                                         -------------    ------------------
WORLDWIDE*
<S>                                                           <C>              <C>
    Billed Business                                             8%               7%
    Average spending per proprietary basic card                 1                1
    Basic cards-in-force                                       10
U.S.*
    Billed Business                                             4
    Average spending per proprietary basic card                (1)
    Basic cards-in-force                                        5
    Proprietary consumer card billed business**                 1
    Proprietary small business billed business**               10
    Proprietary Corporate Services billed business***           5
OUTSIDE THE U.S.*
    Billed Business                                            17               14
    Average spending per proprietary basic card                 8                5
    Basic cards-in-force                                       16
    Proprietary consumer and small business billed             12                8
    business****
    Proprietary Corporate Services billed business***          13               10
</TABLE>

     * Captions not designated as "proprietary" include
       both proprietary and GNS data.
    ** Included in USCS.
   *** Included in GCS.
  **** Included in ICS.

  --  U.S. non-T&E-related volume categories (which represented
      approximately 70% of total U.S. billed business) grew 7%, while
      T&E volumes rose 2%.
  --  U.S. airline-related volume, which represented approximately 9% of
      total U.S. volumes during the quarter, increased 6% due to a 6%
      increase in the average airline charge while transactions were
      flat.
  --  Worldwide airline volumes, which represented approximately 11% of
      total volumes during the quarter, increased 5% on 2% growth in
      transactions and a 3% increase in the average airline charge.
  --  Assuming no changes in foreign exchange rates: Total billed
      business outside the U.S. reflected proprietary growth in Asia
      Pacific in the mid single-digits, growth in Canada and Europe in
      the high single-digits and growth in Latin America in the low teens.

- -  TOTAL CARDS-IN-FORCE: Rose 9% worldwide due to an increase of 4% in
   both USCS and in ICS, a 3% increase in GCS and a 25% increase in GNS.
   Continued card acquisitions within proprietary and GNS
   activities, as well as continued solid average customer retention
   levels, were partially offset by the suppressing effect of
   credit-related actions.

   -- 800K and 1.2MM net cards were added during the quarter in the U.S. and the
      non-U.S. businesses, respectively.

o NET CARD FEES:  Increased 11% due to a higher average fee per proprietary
  card and card growth.

o TRAVEL COMMISSIONS AND FEES:   Increased 3%, primarily reflecting a 4%
  increase in worldwide travel sales.

o OTHER COMMISSIONS AND FEES: Decreased 11% on a lower average balance of
  owned cardmember loans and a reclass to other revenues in USCS of certain
  card service-related fees.

o SECURITIZATION INCOME, NET: Decreased 49% primarily due to lower excess
  spread, net, driven by increased write-offs and the charge to the fair
  value of the I/O Strip, which were partially offset by higher finance
  charges and fees due to a greater average balance of securitized loans
  and lower interest expense due to lower rates paid on investor
  certificates. Securitization income, net represents the non-credit
  provision components of the gains from securitization activities within
  the USCS segment, fair value changes of the related I/O Strip and excess
  spread related to securitized loans and servicing income, net of related
  discounts or fees.


                                     -8-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED

- - Components of Securitization Income, Net:
<TABLE>
<CAPTION>
                                                      Quarters Ended        Percentage
                                                       September 30,         Inc/(Dec)
                                                 ----------------------     ------------
                                                  2008            2007
                                                 -----           -----
(millions)
<S>                                            <C>              <C>         <C>
Excess spread, net*                              $  84            $ 264       (68)%
Servicing fees                                     141              108        31
(Losses) Gains on sales from securitizations**     (25)              20         #
                                                 -----            -----
Total securitization income, net                 $ 200            $ 392       (49)
                                                 =====            =====
</TABLE>


   # Denotes variance of more than 100%.
   * Excess spread, net is the net positive cash flow from interest and
     fee collections allocated to the investors' interests after
     deducting the interest paid on investor certificates, credit
     losses, contractual servicing fees, other expenses and changes in
     the fair value of the I/O Strip.
  ** Excludes $189MM and ($38MM) of impact from cardmember loan sales
     and maturities in 3Q '08, respectively, as well as $47MM and
     ($18MM) of impact from cardmember loan sales and maturities in 3Q '07,
     respectively, reflected in the provisions for losses.

- - The average balance of Cardmember lending securitizations was $28.1B in 3Q
'08 compared with $21.7B in 3Q '07.

o    OTHER REVENUES: Increased 24%, primarily reflecting the benefits of the
     CPS acquisition, higher network and partner-related revenues, and a
     reclass from other commissions and fees within USCS.

o    CARDMEMBER LENDING FINANCE REVENUE: Decreased 4% due to lower average
     loan balances and a lower portfolio yield, due to the impact of reduced
     market interest rates on variably priced assets.

o    OTHER INTEREST INCOME:  Was flat versus the prior year.

o    CARDMEMBER LENDING INTEREST EXPENSE: Decreased 22% due to a lower cost of
     funds driven by reduced market rates on variably priced loans.

o    CHARGE CARD AND OTHER INTEREST EXPENSE: Decreased 12%, reflecting a lower
     cost of funds driven by reduced market rates on variably priced loans
     which more than offset increased liquidity-related funding levels.

o    MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES EXPENSES: Increased
     7%, reflecting higher volume-driven rewards costs. Marketing and
     promotion expenses were flat versus the prior year.

o    HUMAN RESOURCES EXPENSE: Increased 7% due to a 2% increase in employees and
     higher merit and salesforce-related incentive costs.

o    PROFESSIONAL SERVICES EXPENSE: Increased 13% primarily due to higher
     technology-related consulting and credit and collection expenses.

o    OCCUPANCY AND EQUIPMENT EXPENSE:  Rose 6% on higher technology-related and
     servicing costs.

o    COMMUNICATIONS EXPENSE:  Was flat versus the prior year.

o    OTHER, NET EXPENSE: Decreased 41% primarily due to the settlement
     payments from MasterCard and Visa, partially offset by expenses related
     to the CPS acquisition.

o    CHARGE CARD PROVISION FOR LOSSES: Increased 26% due to higher loss ratios
     and delinquency rates versus last year, partially offset by a lower
     receivables balance.

- - WORLDWIDE CHARGE CARD:*

- -- The loss ratio and past due rates increased versus last year and last
quarter.
<TABLE>
<CAPTION>

                                                 9/08              6/08              9/07
                                             --------------    -------------     -------------
<S>                                        <C>              <C>              <C>
Net loss ratio as a % of charge volume           0.33%            0.29%            0.26%
90 days past due as a % of receivables            3.2%             3.0%             2.8%


                                                 9/08              6/08              9/07
                                             --------------    -------------     -------------
Total Receivables (billions)                 $   37.6         $   39.9          $   38.5
Reserves (millions)                          $  1,134         $  1,146          $   998
% of receivables                                  3.0%             2.9%             2.6%
% of 90 day past due accounts                      95%              97%             91%
</TABLE>

   *There are no off-balance sheet Charge Card securitizations.
    Therefore, all credit quality statistics for the Charge Card
    portfolio are on an "Owned Basis."


                                     -9-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED

o    CARDMEMBER LENDING PROVISION FOR LOSSES: Increased 65% due to higher
     write-off and delinquency rates partially offset by decreased average
     loan balances.

     - WORLDWIDE LENDING:*
       -- The write-off and past due rates increased versus last year and last
          quarter.
<TABLE>
<CAPTION>
                                       9/08            6/08              9/07
                                   -----------     -------------     -------------
<S>                               <C>            <C>            <C>
Net write-off rate                        5.8%           5.5%**         3.4%
30 days past due as a % of loans          3.7%           3.4%           2.5%
</TABLE>
<TABLE>
<CAPTION>
                                       9/08            6/08              9/07
                                   -----------     -------------     -------------
<S>                               <C>            <C>            <C>
Total Loans (billions)             $     45.8     $     49.7      $     50.5
Reserves (millions)                $    2,640     $    2,594      $    1,469
% of total loans                          5.8%           5.2%            2.9%
% of 30 days past due accounts            155%           155%            118%
</TABLE>

   *  All lending statistics are presented here on a GAAP or "Owned
      Basis". "Managed Basis" credit quality statistics are
      available in the Third Quarter 2008 Earnings Release,
      American Express Company Consolidated Selected Statistical
      Information pages.
   ** The 6/08 owned net write-off rate was elevated partially due
      to an addition of $10.2B of loans to the American Express
      Credit Account Master Trust (the "Lending Trust") on May 16,
      2008. This resulted in decreased net write-off rates within
      the Lending Trust, and increased net write-off rates on an
      owned basis. The managed basis net write-off rates were not
      affected by this addition.

o   OTHER PROVISION FOR LOSSES:  Increased 26% reflecting additional
    merchant-related reserves primarily due to the generally weaker
    U.S. economic conditions.


                                     -10-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                                 CONSOLIDATED

SUPPLEMENTAL INFORMATION - TANGIBLE COMMON EQUITY AND TOTAL ADJUSTED ASSETS

During the third quarter of 2006, the Company issued $750MM of 6.80%
Subordinated Debentures due 2036 ("Subordinated Debentures"), which are
automatically extendable until 2066 unless certain events occur prior to that
date. In connection with the Subordinated Debentures, the Company has
undertaken to disclose on a quarterly basis the amount of its "tangible common
equity" and "total adjusted assets", as defined in the Subordinated
Debentures. The Company's consolidated "tangible common equity" amount as of
the end of any fiscal quarter means the total shareholders' equity, excluding
preferred stock, of the Company as reflected on its consolidated balance sheet
prepared in accordance with GAAP as of such fiscal quarter end minus (i)
intangible assets and goodwill and (ii) deferred acquisition costs, as
determined in accordance with GAAP and reflected in such consolidated balance
sheet. The Company's "total adjusted assets" as of the end of any fiscal
quarter is calculated as the sum of (i) total consolidated assets as reflected
on the Company's balance sheet minus (ii) non-securitized Cardmember lending
receivables (without deduction for reserves), which are set forth on the
Company's balance sheet, plus (iii) managed (i.e., securitized and
non-securitized) worldwide Cardmember lending receivables as reported by the
Company for such fiscal quarter. As of September 30, 2008, the Company's
"tangible common equity" was $10B and its "total adjusted assets" as defined
in the Subordinated Debentures, were $157B. As of September 30, 2008, the
consolidated assets as reflected on the Company's balance sheet were $127B.


                               CORPORATE & OTHER

o Net income was $158MM in 3Q '08 compared with net expense of $2MM in 2Q '08
  and $11MM in 3Q '07.

   - 3Q '08 included:
    -- $93MM and $43MM of after-tax income related to the MasterCard and Visa
       litigation settlements, respectively; and
    -- $56MM in tax benefits primarily due to the revision of the Company's
       estimated annual effective tax rate.

   - 2Q '08 included:
     -- $43MM of after-tax income related to the Visa litigation settlement; and
     -- $9MM of the tax benefits related to the resolution of certain prior
        years' tax items.

   - The 3Q '08 and 2Q '08 expense included $4MM and $1MM after-tax of
     reengineering costs, respectively.



                                     -11-
<PAGE>

                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                              U.S. CARD SERVICES

                        CONDENSED STATEMENTS OF INCOME
                                 (GAAP BASIS)
<TABLE>
<CAPTION>
(Preliminary)
                                                                 Quarters Ended         Percentage
                                                                  September 30,         Inc/(Dec)
                                                            ---------------------       ----------
(millions)                                                    2008          2007
                                                              ----          ----
Revenues
<S>                                                       <C>            <C>               <c>
    Discount revenue, net card fees and other               $2,623         $2,632              -%
    Cardmember lending finance revenue                       1,087          1,224            (11)
    Securitization income, net                                 200            392            (49)
                                                            ------         ------
        Total revenues                                       3,910          4,248             (8)
    Interest expense
     Cardmember lending                                        290            402            (28)
     Charge card and other                                     161            257            (37)
                                                            ------         ------
Revenues net of interest expense                             3,459          3,589             (4)
                                                            ------         ------
Expenses
    Marketing, promotion, rewards and cardmember services    1,245          1,191              5
    Human resources and other operating expenses               909            848              7
                                                            ------         ------
     Total                                                   2,154          2,039              6
                                                            ------         ------
Provisions for losses                                          941            638             47
                                                            ------         ------
Pretax segment income                                          364            912            (60)
Income tax provision                                           120            320            (63)
                                                            ------         ------
Segment Income                                              $  244         $  592            (59)
                                                            ------         ------
</TABLE>

<TABLE>
<CAPTION>
STATISTICAL INFORMATION
                                                                             Quarters Ended              Percentage
                                                                             September 30,               Inc/(Dec)
                                                                       ---------------------------    --------------------
                                                                           2008          2007
                                                                           ----          ----
<S>                                                                <C>            <C>                      <C>
Card billed business (billions)                                      $     97.9       $   94.2               4%
Total cards-in-force (millions)                                            44.7           42.9               4
Basic cards-in-force (millions)                                            33.4           31.8               5
Average basic cardmember spending* (dollars)                         $    2,950       $  2,986              (1)
Segment capital (millions)**                                         $    5,069       $  4,468              13
Return on average segment capital**                                        17.0%          50.5%
Return on average tangible segment capital**                               17.7%          52.5%
</TABLE>


    * Proprietary cards only.
   ** Segment capital includes an allocation attributable to goodwill of
      $175MM and $168MM and other intangibles of $25MM and none in 3Q '08 and 3Q
      '07, respectively. Please refer to Appendix I of the Third Quarter 2008
      Earnings Release, for the components of ROE and ROTE.

     - BILLED BUSINESS:  The 4% increase in billed business primarily reflects
       the 5% increase in basic cards-in-force.

       --   Within the U.S. consumer business, billed business grew 1%; small
            business volumes rose 10%.

     - TOTAL CARDS-IN-FORCE: Increased by 1.8MM, or 4%, versus last year on
       continued card acquisition initiatives and generally stable retention
       levels, which were partially offset by the suppressing effect of
       credit-related actions.

P&L DISCUSSION:

o    SEGMENT INCOME: Decreased 59% as revenues net of interest expense
     decreased 4%, expenses increased 6% and provisions for losses increased
     47%.

     - PRE-TAX MARGIN:  Was 10.5% in 3Q '08 versus (1.8%) in 2Q '08 and 25.4%
       in 3Q '07.

     - EFFECTIVE TAX RATE: Was 33% in 3Q '08 compared to 133% in 2Q '08 and
       35% in 3Q '07. The tax rates in 3Q '08 and 3Q '07 reflect the net
       tax benefits primarily related to the resolution of certain prior
       years' tax items in each of these respective periods. The tax
       benefit in 2Q '08 reflects the effect of significant charges on
       pretax segment income and the benefits primarily related to the
       resolution of certain prior years' tax items.

o    DISCOUNT REVENUE, NET CARD FEES AND OTHER: Was unchanged largely due to
     greater billed business volumes and higher net card fees offset by lower
     commissions and assessments.

o    CARDMEMBER LENDING FINANCE REVENUE: Decreased 11% due to a decrease of 6%
     in average owned lending balances and lower yields.


                                     -12-
<PAGE>

                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                              U.S. CARD SERVICES

o    SECURITIZATION INCOME, NET: Decreased 49% primarily due to lower excess
     spread, net, driven by increased write-offs and the charge to the fair
     value of the I/O Strip, which were partially offset by higher finance
     charges and fees due to a greater average balance of securitized loans
     and lower interest expense due to lower rates paid on investor
     certificates. Securitization income, net represents the non-credit
     provision components of the gains from securitization activities within
     the USCS segment, fair value changes of the related I/O Strip and excess
     spread related to securitized loans and servicing income, net of related
     discounts or fees.

o    CARDMEMBER LENDING INTEREST EXPENSE:  Decreased 28% due to a lower cost of
     funds and lower average owned lending balances.

o    CHARGE CARD AND OTHER INTEREST EXPENSE:  Decreased 37% primarily due to a
     lower cost of funds.

o    MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES EXPENSES: Increased
     5% due to greater rewards costs which were partially offset by lower
     marketing and promotion expenses.

o    HUMAN RESOURCES AND OTHER OPERATING EXPENSES: Increased 7% primarily due
     to higher technology-related investments and increased credit and
     collection costs.

o    PROVISIONS FOR LOSSES: Increased 47% due to higher write-off and
     delinquency rates.


<TABLE>
<CAPTION>
- - CHARGE CARD: *
  -- The loss ratio and past due rate increased versus last year and
     last quarter.
                                                                 9/08            6/08            9/07
                                                             -------------    ------------    ------------
<S>                                                            <C>             <C>            <C>
              Total Receivables (billions)                        $18.8           $19.8          $19.4
              Net loss ratio as a % of charge volume              0.47%           0.44%           0.34%
              90 days past due as a % of total                     4.2%            4.1%            3.9%
</TABLE>
<TABLE>
<CAPTION>
- - CARDMEMBER LENDING: **
  -- The write-off rate and past due rate increased versus last year and last
     quarter.
                                                                9/08             6/08              9/07
                                                             -------------    --------------     -----------
<S>                                                        <C>               <C>              <C>
Total Loans (billions)                                       $  34.6           $  37.9          $  40.0
Net write-off rate                                               6.1%             5.8%***           3.0%
30 days past due as a % of loans                                 3.9%             3.4%              2.4%
</TABLE>

    * There are no off-balance sheet Charge Card securitizations.
      Therefore, all credit quality statistics for the Charge Card
      portfolio are on an "Owned Basis."
   ** Owned basis. See pages 14-15 for "Managed Basis" Cardmember lending
      information.
  *** The 6/08 owned net write-off rate was elevated partially
      due to an addition of $10.2B of loans to the Lending Trust on
      May 16, 2008. This resulted in decreased net write-off rates
      within the Lending Trust, and increased net write-off rates on
      an owned basis. The managed basis net write-off rates were not
      affected by this addition.


                                     -13-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                              U.S. CARD SERVICES

MANAGED BASIS
For USCS, 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. For the
managed basis presentation, revenue and expenses related to securitized
cardmember loans are reflected in other commissions and fees (included in
discount revenue, net card fees and other), cardmember lending finance
revenue, cardmember lending interest expense and provisions for losses. On a
managed basis, there is no securitization income, net, as the managed basis
presentation assumes no securitization transactions have occurred.

The Company presents USCS 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.

On a GAAP basis, revenue and expenses from securitized cardmember loans are
reflected in the Company's income statements in securitization income, net,
fees and commissions, and provisions for losses for cardmember lending. At the
time of a securitization transaction, the securitized cardmember loans are
removed from the Company's balance sheet, and the resulting gain on sale is
reflected in securitization income, net as well as an impact to provision for
losses (credit reserves are no longer recorded for the cardmember loans once
sold). Over the life of a securitization transaction, the Company recognizes
servicing fees and other net revenues (referred to as "excess spread") related
to the interests sold to investors (i.e. the investors' interests). These
amounts, in addition to changes in the fair value of the interest-only strips,
are reflected in securitization income, net, and fees and commissions. The
Company also recognizes cardmember lending finance revenue over the life of
the securitization transaction related to the interest it retains (i.e. the
seller's interest). At the maturity of a securitization transaction,
cardmember loans on the balance sheet increase, and the impact of the
incremental required loss reserves is recorded in provisions for losses.

As presented, in aggregate over the life of a securitization transaction, the
pretax income impact to the Company is the same whether or not the Company had
securitized cardmember loans or funded these loans through other financing
activities (assuming the same financing costs). The income statement
classifications, however, of specific items will differ.

   The following information reconciles the GAAP basis presentation for
certain USCS income statement line items to the managed basis presentation,
where different:
<TABLE>
<CAPTION>
                                                                Quarters Ended          Percentage
                                                                September 30,           Inc/(Dec)
                                                           -----------------------       ---------
     (millions)                                               2008           2007
                                                              ----           ----

  <S>                                                     <C>            <C>           <C>
   o DISCOUNT REVENUE, NET CARD FEES AND OTHER:
             Reported for the period (GAAP)                $ 2,623        $ 2,632             -%
             Securitization adjustments                        122             67             82
                                                           -------        -------
             Managed discount revenue, net card fees and
             other                                         $ 2,745        $ 2,699              2
                                                           =======        =======

  o CARDMEMBER LENDING FINANCE REVENUE:
             Reported for the period  (GAAP)               $ 1,087        $ 1,224            (11)
             Securitization adjustments                        883            821              8
                                                           -------        -------
             Managed cardmember lending finance revenue    $ 1,970        $ 2,045             (4)
                                                           =======        =======

  o SECURITIZATION INCOME, NET:

             Reported for the period (GAAP)                $   200        $   392            (49)
             Securitization adjustments                       (200)          (392)           (49)
                                                           -------        -------
             Managed securitization income, net            $  --          $  --             --
                                                           =======        =======

  o CARDMEMBER LENDING INTEREST EXPENSE:

             Reported for the period  (GAAP)               $   290        $   402            (28)
             Securitization adjustments                        196            302            (35)
                                                           -------        -------
             Managed cardmember lending interest expense   $   486        $   704            (31)
                                                           =======        =======

  o PROVISIONS FOR LOSSES:

             Reported for the period (GAAP)                $   941        $   638             47
             Securitization adjustments                        629            226              #
                                                           -------        -------
             Managed provisions for losses                 $ 1,570        $   864             82
                                                           =======        =======
</TABLE>

             # Denotes variance of more than 100%.


                                     -14-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                              U.S. CARD SERVICES
MANAGED P&L DISCUSSION

o    DISCOUNT REVENUE, NET CARD FEES AND OTHER: Increased 2% largely due to
     greater billed business volumes and higher net card fees.

o    CARDMEMBER LENDING FINANCE REVENUE: Decreased 4% as lower yields more than
     offset the 8% growth in average managed lending balances.

o    CARDMEMBER LENDING INTEREST EXPENSE: Decreased 31% due to a lower cost of
     funds which more than offset higher average managed lending balances.

o    PROVISIONS FOR LOSSES: Increased 82% due to higher write-off and
     delinquency rates within the U.S. portfolio as well as increased average
     managed loan volumes.

<TABLE>
<CAPTION>
- - CARDMEMBER LENDING: *
- -- The write-off rate and past due rate increased versus last year and last
quarter.
                                                               9/08             6/08             9/07
                                                            -----------     -------------     ------------
<S>                                                         <C>               <C>             <C>
              Total Loans (billions)                           $64.4             $64.7           $61.5
              Net write-off rate                                 5.9%              5.3%            3.0%
              30 days past due as a % of loans                   3.9%              3.3%            2.4
</TABLE>

              * Managed basis. There are no off-balance sheet
                Charge Card securitizations. Therefore, all credit
                quality statistics for the Charge Card portfolio are on an
                "Owned Basis," as presented on page 13.


                                     -15-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                          INTERNATIONAL CARD SERVICES

                        CONDENSED STATEMENTS OF INCOME
                                 (GAAP BASIS)

<TABLE>
<CAPTION>
(Preliminary)
                                                                Quarters Ended          Percentage
                                                                September 30,           Inc/(Dec)
                                                           -----------------------       ---------

(millions)                                                     2008       2007
                                                               ----       ----

Revenues
<S>                                                        <C>        <C>              <C>
    Discount revenue, net card fees and other               $ 1,023    $   953                7%
    Cardmember lending finance revenue                          432        353               22
                                                            -------    -------
        Total revenues                                        1,455      1,306               11
    Interest expense
      Cardmember lending                                        157        126               25
      Charge card and other                                      66         66                -
                                                            -------    -------
Revenues net of interest expense                              1,232      1,114               11
                                                            -------    -------
Expenses
    Marketing, promotion, rewards and cardmember services       388        354               10
    Human resources and other operating expenses                527        453               16
                                                            -------    -------
         Total                                                  915        807               13
                                                            -------    -------
Provisions for losses                                           316        197               60
                                                            -------    -------
Pretax segment income                                             1        110              (99)
Income tax benefit                                              (66)       (30)               #
                                                            -------    -------
Segment income                                              $    67    $   140              (52)
                                                            =======    =======
</TABLE>
  # Denotes a variance of more than 100%.

<TABLE>
<CAPTION>
STATISTICAL INFORMATION

                                                                Quarters Ended          Percentage
                                                                September 30,           Inc/(Dec)
                                                           -----------------------       ---------
                                                               2008       2007
                                                               ----       ----
<S>                                                       <C>         <C>                   <C>
Card billed business (billions)                            $   27.5    $  24.7               11%
Total cards-in-force (millions)                                16.4       15.8                4
Basic cards-in-force (millions)                                11.5       11.2                3
Average basic cardmember spending* (dollars)               $  2,393    $ 2,209                8
Segment capital (millions)**                               $  2,257    $ 1,983               14
Return on average segment capital**                            11.8%      24.4%
Return on average tangible segment capital**                   15.9%      34.3%
</TABLE>

 * Proprietary cards only.
** Segment capital includes an allocation attributable to goodwill of $517MM
   and $520MM and other intangibles of $41MM and $19MM in 3Q '08 and 3Q '07,
   respectively. Please refer to Appendix I of the Third Quarter 2008 Earnings
   Release, for the components of ROE and ROTE.

     -   BILLED BUSINESS: The 11% increase in billed business reflects an 8%
         increase in average spending per proprietary basic card and a 3%
         increase in basic cards-in-force.
         --   Adjusting for the impacts of foreign exchange translation,
              billed business and average spending per proprietary basic
              card-in-force increased 8% and 5%, respectively. Volume growth
              within the major geographic regions ranged from growth in the
              mid single-digits to the low double-digits.

     -   TOTAL CARDS-IN-FORCE: Increased by 600K, or 4%, versus last year.

P&L DISCUSSION

o    SEGMENT INCOME: Decreased 52% versus last year as revenues net of
     interest expense increased 11% due to spending and loan growth, expenses
     rose by 13% reflecting higher volumes and business-building investments
     and provisions for losses increased 60%, primarily driven by higher
     lending reserve levels in Mexico. Both revenue and expense growth rates
     were inflated by the translation of foreign currency.

     - 3Q '08 included a $1MM ($0MM after-tax) reengineering credit.

     - PRE-TAX MARGIN:  Was 0.1% in 3Q '08 versus 5.8% in 2Q '08 and 9.9% in
       3Q '07.

     - EFFECTIVE TAX RATE: Was not meaningful in 3Q '08 versus
       (58%) in 2Q '08 and (27%) in 3Q '07. As indicated in previous
       quarters, this segment reflects an overall tax benefit which will
       likely continue going forward since our internal tax allocation
       process provides ICS with the consolidated benefit related to its
       ongoing funding activities outside the U.S. Additionally, the tax
       rate in 3Q '08 reflects a low level of pre-tax income. The tax
       rates in both 2Q '08 and 3Q '07 reflect tax benefits primarily
       related to the resolution of certain prior years' tax items.



                                     -16-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                          INTERNATIONAL CARD SERVICES

o    DISCOUNT REVENUE, NET CARD FEES AND OTHER:  Increased 7% driven primarily
     by the higher level of card spending and increased net card fees.

o    CARDMEMBER LENDING FINANCE REVENUE:  Increased 22% on 13% growth in average
     lending balances and a higher portfolio yield.

o    CARDMEMBER LENDING INTEREST EXPENSE: Increased 25% on higher average loan
     balances and an increased cost of funds.

o    CHARGE CARD AND OTHER INTEREST EXPENSE:  Was unchanged versus last year.

o    MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES EXPENSES: Increased
     10% on higher marketing and promotion expenses and higher volume-related
     rewards costs.

o    HUMAN RESOURCES AND OTHER OPERATING EXPENSES: Increased 16% primarily due
     to higher human resources expense, which reflected a higher level of
     employees, greater professional services expense and increased other
     operating expenses.

o    PROVISIONS FOR LOSSES: Increased 60% due to higher lending reserve levels
     in Mexico, increased delinquency and write-off rates and loan and
     business volume growth.

<TABLE>
<CAPTION>
- - CHARGE CARD: *
  -- The loss ratio decreased versus last year but increased versus
     last quarter. The past due rate increased versus last year and
     last quarter.
                                                9/08       6/08       9/07
                                                ----       ----       ----
<S>                                        <C>        <C>        <C>
Total Receivables (billions)                 $   6.1    $   6.6    $   6.1
Net loss ratio as a % of charge volume          0.25%      0.22%      0.26%
90 days past due as a % of total                 2.7%       2.4%       1.8%
</TABLE>

<TABLE>
<CAPTION>
- - CARDMEMBER LENDING: *
  -- The write-off and past due rates increased versus last year and last
     quarter.

                                                      9/08       6/08       9/07
                                                      ----       ----       ----
<S>                                              <C>        <C>        <C>
Cardmember Loans (billions)                        $  11.1    $  11.8    $  10.5
Net write-off rate                                     5.0%       4.5%       4.8%
30 days past due as a % of loans                       3.3%       3.1%       2.7%
</TABLE>


     * There are no off-balance sheet charge card and currently no
       off-balance sheet international lending securitizations.
       Therefore, all credit quality statistics for the charge card
       and lending portfolio are on an "Owned Basis."


                                     -17-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                          GLOBAL COMMERCIAL SERVICES


                        CONDENSED STATEMENTS OF INCOME
                                 (GAAP BASIS)
<TABLE>
<CAPTION>
(Preliminary)
                                                                Quarters Ended          Percentage
                                                                September 30,           Inc/(Dec)
                                                           -----------------------       ---------
(millions)                                                    2008       2007
                                                              ----       ----
<S>                                                      <C>        <C>                  <C>
Revenues
    Discount revenue, net card fees and other               $1,309     $1,180               11%
                                                            ------     ------
    Charge card and other interest expense                     109        116               (6)
                                                            ------     ------
Revenues net of interest expense                             1,200      1,064               13
                                                            ------     ------
Expenses
    Marketing, promotion, rewards and cardmember services      113         86               31
    Human resources and other operating expenses               836        749               12
                                                            ------     ------
         Total                                                 949        835               14
                                                            ------     ------
Provisions for losses                                           60         42               43
                                                            ------     ------
Pretax segment income                                          191        187                2
Income tax provision                                            57         52               10
                                                            ------     ------
Segment income                                              $  134     $  135               (1)
                                                            ======     ======
</TABLE>


<TABLE>
<CAPTION>
STATISTICAL INFORMATION
                                                                Quarters Ended          Percentage
                                                                September 30,           Inc/(Dec)
                                                           -----------------------       ---------
                                                              2008           2007
                                                              ----           ----
<S>                                                      <C>           <C>                <C>
Card billed business (billions)                            $  32.3       $  29.9            8%
Total cards-in-force (millions)                                7.0           6.8            3
Basic cards-in-force (millions)                                7.0           6.8            3
Average basic cardmember spending* (dollars)               $ 4,611       $ 4,389            5
Segment capital (millions)**                               $ 3,564       $ 2,230           60
Return on average segment capital**                           21.2%         26.2%
Return on average tangible segment capital**                  43.9%         44.3%
</TABLE>

  *  Proprietary cards only.
 **  Segment capital includes an allocation attributable to goodwill of $1.6B
     and $767MM and other intangibles of $362MM and $129MM in 3Q '08 and 3Q '07,
     respectively. Please refer to Appendix I of the Third Quarter 2008 Earnings
     Release, for the components of ROE and ROTE.

     -   BILLED BUSINESS: The 8% increase in billed business reflects a 5%
         increase in average spending per proprietary basic card and a 3%
         increase in basic cards-in-force.
         --   Adjusting for the impacts of foreign exchange translation,
              billed business and average spending per proprietary basic
              card-in-force increased 7% and 4%, respectively. Volume growth
              of 5% within the U.S. compared to growth within the Company's
              other major geographic regions ranging from the high
              single-digits to 20%.

     -   TOTAL CARDS-IN-FORCE: Increased by 200K, or 3%, versus last year.

P&L DISCUSSION

o    SEGMENT INCOME: Decreased 1% versus last year as revenues net of interest
     expense increased 13%, expenses rose by 14% and provisions for losses
     increased 43%. Both revenue and expense growth rates were inflated by the
     translation of foreign currency, as well as the impact of the CPS
     acquisition.

     - 3Q '08 included $1MM ($0MM after-tax) of reengineering expense
       versus $9MM ($6MM after-tax) in 3Q '07.

     - PRE-TAX MARGIN:  Was 15.9% in 3Q '08 versus 24.9% in 2Q '08 and 17.6%
       in 3Q '07.

     - EFFECTIVE TAX RATE:  Was 30% in 3Q '08 and in 2Q '08, versus 28% in
       3Q '07.

o    DISCOUNT REVENUE, NET CARD FEES AND OTHER: Increased 11% driven primarily
     by higher card spending, increased other revenues and greater travel
     revenues.

o    CHARGE CARD AND OTHER INTEREST EXPENSE: Decreased 6% due to a lower cost
     of funds, primarily within the U.S., partially offset by the cost of
     funding the CPS acquisition.

o    MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES EXPENSES: Increased
     31%, primarily reflecting a reallocation of rewards reserve costs for
     linked corporate and consumer accounts from the USCS segment, as well as
     higher volume-related rewards costs.


                                     -18-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                          GLOBAL COMMERCIAL SERVICES

o    HUMAN RESOURCES AND OTHER OPERATING EXPENSES: Increased 12% primarily due
     to higher other operating expense and greater human resources expense.

o    PROVISIONS FOR LOSSES: Increased 43%, primarily reflecting higher loss and
     past due rates.

o    CHARGE CARD: *

- -- The loss ratio and past due rates increased versus last year and last
quarter.
<TABLE>
<CAPTION>
                                                        9/08      6/08      9/07
                                                      ------    ------    ------
<S>                                                 <C>       <C>       <C>
Total Receivables (billions)                        $   12.5  $   13.4  $   12.5
Net loss ratio as a % of charge volume                  0.15%    0.10%      0.11%
90 days past due as a % of total                         1.8%     1.6%       1.6%
</TABLE>

      * There are no off-balance sheet charge card securitizations. Therefore,
        all credit quality statistics for the charge card portfolio are on an
        "Owned Basis."


                                     -19-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                      GLOBAL NETWORK & MERCHANT SERVICES


                        CONDENSED STATEMENTS OF INCOME
                                 (GAAP BASIS)

<TABLE>
<CAPTION>
(Preliminary)
                                                                Quarters Ended          Percentage
                                                                September 30,           Inc/(Dec)
                                                           -----------------------       ---------
(millions)                                                    2008           2007
                                                              ----           ----

<S>                                                      <C>            <C>               <C>
Revenues
    Discount revenue, fees and other                       $ 1,016        $   902           13%
                                                            -------       -------
    Interest expense
      Cardmember lending                                       (24)           (33)         (27)
      Other                                                    (31)           (45)         (31)
                                                            -------       -------

Revenues net of interest expense                             1,071            980            9
                                                            -------       -------
Expenses
    Marketing and promotion                                    150            151           (1)
    Human resources and other operating expenses               481            417           15
                                                            -------       -------
       Total                                                   631            568           11
                                                            -------       -------
Provisions for losses                                           43             23           87
                                                            -------       -------
Pretax segment income                                          397            389            2
Income tax provision                                           139            123           13
                                                            -------       -------
Segment income                                             $   258        $   266           (3)
                                                            =======       =======
</TABLE>


<TABLE>
<CAPTION>
STATISTICAL INFORMATION
                                                                Quarters Ended          Percentage
                                                                September 30,           Inc/(Dec)
                                                           -----------------------      ---------
                                                               2008       2007
                                                               ----       ----
<S>                                                      <C>         <C>                <C>
Global card billed business* (billions)                    $  175.5    $  162.5           8%
Segment capital (millions)**                               $  1,437    $  1,125          28
Return on average segment capital**                            82.4%       84.7%
Return on average tangible segment capital**                   84.7%       87.5%
Global Network Services:
Card billed business (billions)                            $   18.2    $   14.1          29%
Total cards-in-force (millions)                                24.0        19.2          25
</TABLE>


  *  Includes activities related to proprietary cards (including cash advances),
     cards issued under network partnership agreements, and certain insurance
     fees charged on proprietary cards.
  ** Segment capital includes an allocation attributable to goodwill of $28MM
     in 3Q '08 and $27MM in 3Q '07 and other intangibles of $7MM and $5MM,
     respectively. Please refer to Appendix I of the Third Quarter 2008 Earnings
     Release, for the components of ROE and ROTE.

P&L DISCUSSION

o    SEGMENT INCOME:  Decreased 3% as revenues net of interest expense grew 9%,
     expenses rose 11% and provisions for losses increased $20MM versus 3Q '07.
     Both revenue and expense growth rates were inflated by the translation of
     foreign currency.

     - 3Q '08 included $4MM ($3MM after-tax) of reengineering expense.

     - PRE-TAX MARGIN:  Was 37.1% in 3Q '08 versus 42.0% in 2Q '08 and 39.7%
       in 3Q '07.

     - EFFECTIVE TAX RATE:  Was 35% in 3Q '08 versus 34% in 2Q '08 and 32%
       in 3Q '07.

o    DISCOUNT REVENUE, FEES AND OTHER REVENUE: Increased 13%, reflecting
     growth in merchant-related revenues, primarily from the 8% increase in
     global card billed business and higher GNS-related revenues.

o    CARDMEMBER LENDING INTEREST EXPENSE: The expense credit decreased 27% due
     to a lower rate-driven interest credit primarily in the U.S. related to
     internal transfer pricing which recognizes the merchant services'
     accounts payable-related funding benefit.

o    OTHER INTEREST EXPENSE: The expense credit decreased 31% reflecting the
     impact of a lower effective cost of funds on charge card-related transfer
     pricing, which recognizes the merchant services' accounts payable-related
     funding benefit.

o    MARKETING AND PROMOTION EXPENSES:  Decreased 1%.


                                     -20-
<PAGE>
                           AMERICAN EXPRESS COMPANY
                          THIRD QUARTER 2008 OVERVIEW
                      GLOBAL NETWORK & MERCHANT SERVICES


o    HUMAN RESOURCES AND OTHER OPERATING EXPENSES: Increased 15% primarily due
     to greater human resources expense, which reflected an expansion of the
     merchant sales force, as well as higher volume-related and professional
     services expenses.

o    PROVISIONS FOR LOSSES: Increased $20MM reflecting an increase in
     merchant-related reserves primarily due to the generally weaker U.S.
     economic conditions.



                                     -21-
<PAGE>
               INFORMATION RELATED TO FORWARD-LOOKING STATEMENTS

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
materially from these forward-looking statements include, but are not limited
to, the following: 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, including, among things, the housing market, 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; the impact of the Company's efforts to deal with delinquent
Cardmembers in the current challenging economic environment, which may affect
payment patterns of Cardmembers, the Company's near-term write-off rates,
including during the remainder of 2008 and in 2009, and the volumes of the
Company's loan balances in 2008 and 2009; the write-off and delinquency rates
in the medium- to long-term of Cardmembers added by the Company during the
past few years, which could impact their profitability to the Company; the
Company's ability to effectively implement changes in the pricing of certain
of its products and services; fluctuations in interest rates (including
fluctuations in benchmarks, such as LIBOR and other benchmark rates, and
credit spreads), 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 to 36 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,
generate excess capital and, over time, 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 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; the ability of the Global Network
Services business to meet the performance requirements called for by the
Company's recent settlements with MasterCard and VISA; trends in travel and
entertainment spending and the overall level of consumer confidence; the
uncertainties associated with business acquisitions, including, among others,
the failure to realize anticipated business retention, growth and cost
savings, as well as the ability to effectively integrate the acquired business
into the Company's existing operations; the underlying assumptions and
expectations related to the February 2008 sale of the American Express Bank
Ltd. businesses and the transaction's impact on the Company's earnings proving
to be inaccurate or unrealized; the success, timeliness and financial impact
(including costs, cost savings and other benefits including increased
revenues), and beneficial effect on the Company's operating expense to revenue
ratio, both in the short-term (including during 2009) 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 (including, among others, the
proposed Delta Airlines/Northwest Airlines merger) 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; the ability of the Company to satisfy its
liquidity needs and execute on its funding plans, which will depend on, among
other things, the Company's future business growth, its credit ratings, market
capacity and demand for securities offered by the Company, performance by the
Company's counterparties under its bank credit facilities and other lending
facilities, regulatory changes, including changes to the policies, rules and
regulations of the Board of Governors of the Federal Reserve System and the
Federal Reserve Bank of San Francisco, the Company's ability to securitize and
sell receivables and the performance of receivables previously sold in
securitization transactions and the Company's ability to meet the criteria for
participation in certain liquidity facilities and other funding programs,
including the Commercial Paper Funding Facility and the Temporary Liquidity
Guarantee Program, being made available through the Federal Reserve Bank of
New York, the Federal Deposit Insurance Corporation and other federal
departments and agencies; 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; the potential
impact of regulations proposed by federal bank regulators relating to certain
credit and charge card practices, including, among others, the imposition by
card issuers of interest rate increases on outstanding balances and the
allocation of payments in respect of outstanding balances with different
interest rates, which could have an adverse impact on the Company's net
income; 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, 2007, and its other reports filed with the SEC.


                                     -22-
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
