American Express Company Earnings Conference Call Q4’20

[Pages:46]Support our colleagues and win as a team

64K+

Global colleagues enabled to work

from home

Executing robust, multi-faceted Return

to Officeplan

Created Office of Enterprise Inclusion, Diversity and Business Engagement and

announced 4-year $1B action plan

Ranked #9 in Fortune's 100 Best Companies to Work For? 2020

Protect our customers and the brand

Structure the company for growth in the future

Largest ever global campaign in 18 countries and

territories

3.7M+

New Locations in Force added Outside of the U.S.

Injected >$1B in value across multiple

products

First foreign network to launch in mainland

China

Maintained Card Attrition Rates below

2019 levels

Rolled out new and enhanced financial relief programs in over 20 countries

#1 in Customer Satisfaction with National Credit Card Companies*

Acquired best-in-class

Extended key Cobrand

digital SME cash partnerships incl. Marriott, British

management platform Airways, Amazon and Lowe's

Launched proprietary accounts payable

automation offering,

American Express One APTM

Remain financially strong

Best-in-class credit metrics due to robust risk management efforts and

capabilities

* For J.D. Power 2020 award information, visit awards

Record levels of liquidity

Capital levels well above targets

Maintained the dividend

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($ in millions; except per share amounts)

Total Revenues Net of Interest Expense FX-Adjusted*

Net Income Diluted EPS

Average Diluted Shares Outstanding

Q4'20 Inc/(Dec) FY'20 Inc/(Dec)

$9,351 $1,438

(18%) $36,087 (18%)

(15%)

$3,135

(17%) (17%)

(54%)

$1.76 (13%)

$3.77 (53%)

806

(1%)

806 (3%)

* Total Revenues Net of Interest Expense adjusted for FX is a non-GAAP measure. FX-adjusted information assumes a constant exchange rate between the periods being compared for

purposes of currency translation into U.S. dollars (i.e., assumes Q4'20 and FY'20 foreign exchange rates apply to Q4'19 and FY'19 results, respectively). Attributable to common

shareholders. Represents net income less earnings allocated to participating share awards, dividends on preferred shares and other items.

3

% Increase/(decrease) vs. Prior year (FX-adjusted):

10% 5% 0%

(5%) (10%) (15%) (20%) (25%) (30%) (35%) (40%)

Q1'19

Q2'19

See Annex 1 for reported billings growth rates.

Q3'19

AXP Prop GNS

Total AXP

Q1'20 (3%) (10%) (4%)

Q2'20 (35%) (25%) (33%)

Q3'20 (20%) (16%) (20%)

Q4'20 (16%) (15%) (16%)

FY'20 (19%) (17%) (18%)

GNS: (15%) Total AXP: (16%) AXP Proprietary: (16%)

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

4

% Increase/(decrease) vs. Prior year (FX-adjusted):

20% 0%

(20%) (40%) (60%) (80%) (100%)

Q1'19

Q2'19

Q3'19

Non-T&E T&E

AXP Prop

Q1'20 4%

(20%) (3%)

Q2'20 (11%) (87%) (35%)

Q3'20 1%

(68%) (20%)

Q4'20 4%

(65%) (16%)

FY'20 0%

(60%) (19%)

Non-T&E: 4%

AXP Proprietary: (16%)

T&E: (65%)

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

5

Q4'19 Prop (87% of WW Total)

Q4'19 Proprietary Billed Business: $282B

T&E

28%

Q4'20 Prop (86% of WW Total)

Q4'20 Proprietary Billed Business: $240B

T&E

12%

72%

Non-T&E

88%

Non-T&E

% of Prop Billed Business

% of Prop Billed Business

52%

54%

Non-T&E 37%

T&E

15%

37% 30% 7%

11% 5% 6%

Non-T&E 46%

T&E

8%

39% 36% 3%

6% 5% 1%

Consumer

SME

Large & Global

Consumer

SME

Large & Global

Corporate

Corporate

Note: SME refers to small and mid-sized businesses with less than $300MM in annual revenues. % of Total Prop Billed Business may not foot due to rounding

6

T&E by Customer Type

% Increase/(decrease) vs. Prior year (FX-adjusted):

Consumer

SME

L&G

Q4 YoY% (57%)

(64%)

(85%)

Total (65%)

T&E by Industry

% Increase/(decrease) vs. Prior year (FX-adjusted):

Restaurants Other Lodging

Q4 YoY%

(39%)

(63%) (68%)

Airlines (85%)

Cruises (98%)

10% (10%) (30%) (50%) (70%) (90%) (110%) (130%) (150%)

Q1'20

Q2'20

Q3'20

10%

(10%)

Consumer

SME Total T&E

L&G

(30%) (50%) (70%) (90%)

(110%)

(130%)

Q4'20

(150%)

Q1'20

Q2'20

Q3'20

Restaurants Other

Lodging Airlines

Cruises

Q4'20

7

T&E vs. Non-T&E

% Increase/(decrease) vs. Prior year (FX-adjusted):

Non-T&E

T&E

Q4 YoY%

5%

(57%)

Total (13%)

Non-T&E: Online vs. Offline

% Increase/(decrease) vs. Prior year (FX-adjusted):

Q4 YoY%

Online

Offline

Total

Non-T&E

25%

(14%)

5%

Holiday Spend

40%

(12%)

11%

20% 0%

(20%)

Non-T&E

20% 0%

Total

(20%)

Online Non-T&E Offline

(40%) (60%)

T&E

(40%) (60%)

(80%)

(80%)

(100%)

Q1'20

Q2'20

Q3'20

Q4'20

(100%)

Q1'20

Q2'20

Q3'20

Q4'20

Note: Online = Online + Card Not Present. Holiday spend reflects Consumer retail spending at department stores/big box, shops and supermarkets/consumables during Q4.

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