UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 8-K

                                CURRENT REPORT

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


      Date of Report (Date of earliest event reported): January 24, 2005


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



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


       200 Vesey Street, World Financial Center
                  New York, New York                       10285
       ----------------------------------------          ----------
       (Address of principal executive offices)          (Zip Code)


      Registrant's telephone number, including area code: (212) 640-2000

              ---------------------------------------------------
         (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))

================================================================================

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 January 24, 2005, American Express Company issued a press release announcing its financial results for the fourth quarter and full year of 2005. 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 2004 fourth quarter and full year financial results and a 2004 Fourth Quarter/Full Year Earnings Supplement. Such additional financial information and the 2004 Fourth Quarter/Full Year 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 January 24, 2005, of American Express Company announcing its financial results for the fourth quarter and full year of 2004. 99.2 Additional financial information relating to the financial results of American Express Company for the fourth quarter and full year of 2004. 99.3 2004 Fourth Quarter/Full Year Earnings Supplement of American Express Company.

SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN EXPRESS COMPANY (REGISTRANT) By: /s/ Stephen P. Norman Name: Stephen P. Norman Title: Secretary DATE: January 24, 2005

EXHIBIT INDEX Exhibit No. Description ---- ----------- 99.1 Press Release, dated January 24, 2005, of American Express Company announcing its financial results for the fourth quarter and full year of 2004. 99.2 Additional financial information relating to the financial results of American Express Company for the fourth quarter and full year of 2004. 99.3 2004 Fourth Quarter/Full Year Earnings Supplement of American Express Company.

                                                                    EXHIBIT 99.1


News Release         News Release            News Release           News Release

[LOGO OF AMERICAN EXPRESS]

Contacts:            Frank Vaccaro               Michael J. O'Neill
                     212-640-3327                212-640-5951
                     frank.vaccaro@aexp.com      mike.o'neill@aexp.com



FOR IMMEDIATE RELEASE

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


                    AMERICAN EXPRESS REPORTS RECORD EARNINGS
               AND REVENUES FOR FOURTH QUARTER AND FULL YEAR 2004

              Results Reflect Strong Growth in Cardmember Spending
                          and Excellent Credit Quality
<TABLE>
<CAPTION>

                 (Dollars in millions, except per share amounts)

                                                  Quarters Ended       Percentage       Years Ended          Percentage
                                                   December 31,         Inc/(Dec)       December 31,          Inc/(Dec)
                                                   ------------         ---------       ------------         ----------
                                                 2004         2003                    2004        2003
                                                 ----         ----                    ----        ----
<S>                                           <C>          <C>            <C>     <C>            <C>            <C>
   Revenues                                   $ 7,771      $ 7,038        10%     $ 29,115       $ 25,836       13%

   Income Before Accounting Change            $   896      $   776        16%     $  3,516       $  3,000       17%
   Net Income                                 $   896      $   763**      17%     $  3,445*      $  2,987**     15%

   Earnings Per Common Share - Basic:
      Income Before Accounting Change         $  0.72      $  0.61        18%     $   2.79       $   2.34       19%
      Net income                              $  0.72      $  0.60**      20%     $   2.74*      $   2.33**     18%
   Earnings Per Common Share - Diluted:
      Income Before Accounting Change         $  0.71      $  0.60        18%     $   2.74       $   2.31       19%
      Net income                              $  0.71      $  0.59**      20%     $   2.68*      $   2.30**     17%

   Average Common Shares Outstanding
      Basic                                     1,242        1,277       (3)%        1,259          1,284      (2)%
      Diluted                                   1,270        1,299       (2)%        1,285          1,298      (1)%

   Return on Average Total Shareholders'
   Equity***                                    22.0%        20.6%                   22.0%          20.6%
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>


*    Reflects a $109 million non-cash pre-tax charge ($71 million after-tax), or
     $0.05 on a basic per share basis and $0.06 on a diluted per share basis,
     relating to the January 1, 2004  adoption of Statement of Position 03-1,
     "Accounting  and  Reporting  by  Insurance  Enterprises  for Certain
     Nontraditional Long-Duration Contracts and Separate Accounts" (SOP 03-1).

**   Reflects a $20 million non-cash pre-tax charge ($13 million after-tax), or
     $0.01 per share on both a basic and diluted basis, relating to the December
     31, 2003  adoption of Financial  Accounting  Standards   Board  (FASB)
     Interpretation  No. 46,  "Consolidation of Variable Interest Entities" (FIN
     46), revised December 2003.

***  Computed on a trailing 12-month basis using total Shareholders' Equity as
     included in the Consolidated  Financial Statements prepared in accordance
     with U.S. generally accepted accounting principles (GAAP).

2 New York - January 24, 2005 - AMERICAN EXPRESS COMPANY today reported record net income of $896 million for the fourth quarter, up 17 percent from $763 million a year ago. Diluted earnings per share (EPS) rose to $0.71, up 20 percent from $0.59 a year ago. The company's 2004 return on equity was 22.0 percent. Consolidated revenues for the fourth quarter rose 10 percent to $7.8 billion, up from $7.0 billion a year ago. This growth reflects record cardmember spending, higher average cardmember lending balances and strong travel sales. It also reflects increased revenue from higher client asset levels at American Express Financial Advisors (AEFA). Consolidated expenses totaled $6.6 billion, up 11 percent from $5.9 billion a year ago. This increase primarily reflects higher expenses for marketing, promotion, rewards and cardmember services and human resources. As previously announced, the company recorded fourth quarter charges of $102 million in connection with several initiatives principally relating to the restructuring of the company's business travel operations, the decision to sell certain operations of American Express Bank (AEB) and the relocation of certain functions in the company's finance operations. These charges include both employee severance obligations, as well as other costs principally relating to the early termination of certain real estate property leases. In addition, during the fourth quarter, the company recorded a $117 million net gain on the previously announced sale of the leasing product line in its small business financing unit, American Express Business Finance Corporation (AEBF). For the full year, American Express reported record income before accounting change of $3.5 billion, up 17 percent from $3.0 billion a year ago. Net income was a record $3.4 billion, up 15 percent from $3.0 billion a year ago. EPS before accounting change was $2.74, up 19 percent from $2.31 a year ago. EPS after accounting change was $2.68, up 17 percent.

3 "We delivered excellent results for both the fourth quarter and the full year," said Kenneth I. Chenault, Chairman and Chief Executive Officer. "Record levels of cardmember spending along with higher client asset levels generated double digit revenue growth throughout the year. Credit quality remained excellent and reengineering efforts helped to contain our expenses. "Cardmember spending and transaction levels were exceptionally strong in the fourth quarter. We generated strong volumes in the U.S. retail and everyday spending categories as spending during the holiday shopping period on American Express cards was the best it has ever been. Travel and entertainment spending also continued to rebound and spending on cards issued by new and existing bank partners continued to grow at high rates. Based on preliminary U.S. industry data for holiday credit card spending, we outpaced our network competitors and gained share at one of the fastest rates during the past five years. Average spending by our cardmembers grew substantially and we continue to have a wide lead over Visa and MasterCard in this key measure. "All in all, we generated great momentum and expanded our presence in the market with the addition of nearly five million new cards in force last year. This is one of our largest annual increases and reflects continued expansion of our consumer, small business and corporate base. It also reflects strong growth from our bank partners who issue cards on the American Express network. In the U.S., our partnership with MBNA is off to a great start and we are very pleased with the quality of cards it has added to our network." FOURTH QUARTER 2004 RESULTS The overall increase in fourth quarter revenues reflected 11 percent growth at Travel Related Services (TRS), 9 percent growth at AEFA and a slight increase at AEB. More specifically:

4 o Discount revenue rose 16 percent, resulting from a 17 percent increase in cardmember spending on American Express cards. o Other commissions and fees increased 16 percent, principally driven by greater card-related volumes. o Travel commissions and fees increased 9 percent, primarily as a result of higher travel sales. o Management and distribution fees icreased 8 percent due to higher levels of assets under management. o Net investment income rose 5 percent, primarily reflecting higher asset levels. The overall rise in fourth quarter expenses reflected increases of 10 percent at TRS, 10 percent at AEFA and 23 percent at AEB. More specifically, the overall increase reflected: o A 26 percent increase in marketing, promotion, rewards and cardmember services expenses, primarily due to a 24 percent increase at TRS. o A 17 percent increase in human resources expenses driven by severance costs associated with the previously discussed restructuring of certain operations, merit increases, higher management incentives (including the impact of an additional year of incremental stock-based compensation expenses) and increased employee benefits costs. These items were partially offset by: o A slight decline in total provision for losses as credit quality remained strong in TRS' charge and lending portfolios. The decline is attributable to a 10 percent decrease in the lending provision at TRS partially offset by a 6 percent increase in provisions at AEFA. The consolidated tax rate for the quarter was lower, driven primarily by changes in international funding strategy at TRS in 2004, favorable tax audit experience and a favorable adjustment to the current taxes payable account. The changes at TRS are

5 expected to benefit future effective tax rates and be offset in part by higher related funding costs. TRAVEL RELATED SERVICES (TRS) reported quarterly net income of $729 million, up 20 percent from $606 million a year ago. The following discussion of fourth quarter results presents TRS segment results on a "managed basis," as if there had been no cardmember lending securitization transactions. This is the basis used by management to evaluate operations and is consistent with industry practice. For further information about managed basis and reconciliation of GAAP and managed TRS information, see the "Managed Basis" section below. The AEFA, AEB and Corporate and Other sections below are presented on a GAAP basis. Total net revenues for the fourth quarter increased 11 percent over the same period a year ago to a record $6.0 billion, reflecting continued strong growth in spending and borrowing on American Express Cards and higher travel sales. Record cardmember spending contributed to a 16 percent increase in discount revenue. The increase was driven by higher average cardmember spending, the continued benefit of rewards programs and the net addition of 4.9 million cards-in-force. The higher business volumes were driven by continued strong growth in the retail, everyday spending, travel and entertainment sectors. Spending on cards issued by the company's network partners increased more than 40 percent from a year ago. The benefits of overall higher cardmember spending were partially offset by a slightly lower average discount rate that reflected a change in the mix of business toward the retail and everyday spending categories. Other commissions and fees increased 16 percent due to higher card-related fees from greater volumes. Net finance charge revenue increased 7 percent, primarily reflecting 7 percent growth in average worldwide lending balances. Travel commissions and fees grew 9 percent, reflecting 14 percent growth in travel sales. Net card fees rose 5 percent, primarily as a result of a higher number of cards-in-force.

6 Total expenses increased 10 percent, reflecting higher costs for marketing, promotion, rewards and cardmember services, human resources, interest expense and professional services. These increases were partially offset by reduced provisions for losses and other operating expenses. Marketing, promotion, rewards and cardmember services expenses increased 24 percent, reflecting both greater rewards costs and higher marketing and promotion expenses. The growth in rewards costs is attributable to a higher redemption rate, strong volume growth and the continued increase in cardmember loyalty program participation. The increase in marketing and promotion expenses is primarily due to the company's new brand advertising campaign and continued focus on business-building initiatives. Human resources expenses increased 17 percent, largely due to restructuring related severance costs, merit increases, higher management incentives, including an additional year of incremental stock-based compensation expenses, and increased employee benefits costs. Credit quality remained strong in both the charge card and lending portfolios. The total provision for losses declined slightly, as a 4 percent decline in the lending provision was partially offset by a 5 percent volume-driven increase in the charge card provision. Reserve coverage ratios remained strong, reflecting excellent credit performance and the company's view of the environment. Charge card interest expense increased 5 percent largely due to higher average receivable balances. Professional services expense increased 9 percent, primarily due to increased technology costs that were driven by higher business and service- related volumes. Other operating expenses decreased 10 percent as the net gain on the AEBF leasing sale was partially offset by the previously mentioned restructuring charges. For the full year 2004, TRS reported record net income of $2.9 billion, up 17 percent from $2.4 billion a year ago. On

7 both a GAAP and managed basis, the increase reflected strong growth in both business and travel volumes, as well as a decrease in provision for losses and lower funding costs. These factors were partially offset by an increase in expenses for marketing, promotion, rewards and cardmember services and human resources. AMERICAN EXPRESS FINANCIAL ADVISORS (AEFA) reported fourth quarter net income of $218 million, up 20 percent from $182 million a year ago. Income before accounting change of $218 million was up 12 percent from $195 million a year ago. Total revenues increased 9 percent. Net investment income increased 6 percent from year-ago levels, reflecting higher levels of invested assets. Investment management and service fees increased 11 percent, reflecting higher levels of assets under management due to higher average equity values and net asset inflows. Distribution fees increased 4 percent principally because of higher assets in wrap accounts. Property-casualty insurance premiums rose from last year, reflecting an 18 percent increase in the average number of policies in-force generated, most notably from the Costco relationship. Other revenues increased 36 percent, primarily reflecting higher fees earned on financial planning and advice services. Total expenses increased 10 percent as a result of higher human resources costs and provisions for losses and benefits. Provisions for losses and benefits increased 6 percent, largely due to higher interest crediting rates and volume growth on certificate products. Total human resources expenses rose 18 percent from year-ago levels, primarily due to higher sales compensation-related expenses and higher management incentive costs. Pre-tax income of $248 million was essentially unchanged from a year ago. The effective tax rate decreased primarily as a result of a favorable adjustment to the current taxes payable account.

8 For the full year 2004, AEFA's income before accounting changes was $806 million, up 18 percent from $682 million a year ago. Net income for 2004 was $735 million, up 10 percent from $669 million a year ago. This increase primarily reflected improved market conditions. AMERICAN EXPRESS BANK (AEB) reported fourth quarter net income of $6 million, which included charges of $35 million pre-tax ($22 million after-tax) related to the previously announced restructuring of certain operations. A year ago, fourth quarter net income totaled $29 million. The fourth quarter 2004 restructuring charges were partially offset by lower provision for losses, which reflected the continued stabilization of write-offs in the consumer-lending portfolio. The quarterly results also reflected higher commissions and fees in the Financial Institutions Group and Private Banking. These benefits were partially offset by lower net interest income and higher operating expenses. For the full year 2004, AEB reported net income of $96 million versus $102 million a year ago. AEB's 2004 full year net income included pre-tax restructuring charges of $44 million ($29 million after-tax). CORPORATE AND OTHER reported fourth quarter net expenses of $57 million, compared with $54 million a year ago. Net expenses for 2004 were $238 million compared with $214 million a year ago, primarily due to higher corporate investment spending on compliance and technology projects. ***

9 MANAGED BASIS - TRS Managed basis means the presentation assumes there have been no securitization transactions, i.e. all securitized cardmember loans and related income effects are reflected as if they were in the company's balance sheet and income statements, respectively. The company presents TRS 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. Asset securitization is just one of several ways for the company to fund cardmember loans. Use of a managed basis presentation, including non-securitized and securitized cardmember loans, presents a more accurate picture of the key dynamics of the cardmember lending business, avoiding distortions due to the mix of funding sources at any particular point in time. For example, irrespective of the funding mix, it is important for management and investors to see metrics, such as changes in delinquencies and write-off rates, 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 and changes in market share, which are all significant metrics in evaluating the company's performance and which can only be properly assessed when all non-securitized and securitized cardmember loans are viewed together on a managed basis. The Consolidated Section of this press release and attachments provide the GAAP presentation for items described on a managed basis. ***

10 The following table reconciles the GAAP-basis TRS income statements to the managed-basis information. <TABLE> <CAPTION> Travel Related Services Selected Financial Information Effect of Securitizations (unaudited) Securitization (preliminary, millions) GAAP Basis (unaudited) Effect Managed Basis --------------------------------- ----------------- --------------------------------- Percentage Percentage Quarters Ended December 31, 2004 2003 Inc/(Dec) 2004 2003 2004 2003 Inc/(Dec) ---------- --------- ------------- ------- -------- --------- ---------- ------------ <S> <C> <C> <C> <C> <C> <C> <C> <C> Net revenues: Discount revenue $ 2,817 $ 2,432 16% Lending: Finance charge revenue 716 654 9 $ 621 $ 532 $ 1,337 $ 1,186 13% Interest expense 156 123 26 132 84 288 207 38 --------- ---------- ------- -------- --------- ----------- Net finance charge revenue 560 531 6 489 448 1,049 979 7 Net card fees 491 467 5 Travel commissions and fees 484 445 9 Other commissions and fees 606 515 18 54 53 660 568 16 Travelers Cheque investment income 94 93 1 Securitization income, net 325 293 11 (325) (293) - - - Other revenues 411 435 (6) ---------- ----------- -------- -------- --------- ---------- Total net revenues 5,788 5,211 11 218 208 6,006 5,419 11 Expenses: Marketing, promotion, rewards and cardmember services 1,416 1,141 24 Provision for losses and claims: Charge card 240 227 5 Lending 296 330 (10) 218 208 514 538 (4) Other 30 28 6 --------- ------------ -------- -------- --------- ---------- Total 566 585 (3) 218 208 784 793 (1) Charge card interest expense 196 187 5 Human resources 1,169 1,003 17 Other operating expenses: Professional services 619 567 9 Occupancy and equipment 366 371 (1) Communications 118 116 2 Other 320 357 (10) ---------- ----------- Total 1,423 1,411 1 ---------- ----------- -------- -------- --------- ------------ Total expenses 4,770 4,327 10 $ 218 $ 208 $ 4,988 $ 4,535 10 ---------- ----------- -------- -------- --------- ------------ Pre-tax income 1,018 884 15 Income tax provision 289 278 4 ---------- ----------- Net income $ 729 $ 606 20 ========== =========== </TABLE>

11 <TABLE> <CAPTION> Travel Related Services Selected Financial Information Effect of Securitizations (unaudited) Securitization (preliminary, millions) GAAP Basis (unaudited) Effect Managed Basis --------------------------------- ----------------- -------------------------------- Percentage Percentage Years Ended December 31, 2004 2003 Inc/(Dec) 2004 2003 2004 2003 Inc/(Dec) ---------- --------- ------------ -------- -------- --------- ---------- ----------- <S> <C> <C> <C> <C> <C> <C> <C> <C> Net revenues: Discount revenue $10,249 $ 8,781 17% Lending: Finance charge revenue 2,795 2,525 11 $2,222 $2,172 $ 5,017 $ 4,697 7% Interest expense 571 483 18 384 317 955 800 19 ---------- ----------- -------- -------- --------- ---------- Net finance charge revenue 2,224 2,042 9 1,838 1,855 4,062 3,897 4 Net card fees 1,909 1,835 4 Travel commissions and fees 1,795 1,507 19 Other commissions and fees 2,230 1,901 17 210 193 2,440 2,094 16 Travelers Cheque investment income 378 367 3 Securitization income, net 1,132 1,105 2 (1,132) (1,105) - - - Other 1,661 1,651 1 ---------- ----------- -------- -------- --------- ---------- Total net revenues 21,578 19,189 12 916 943 22,494 20,132 12 Expenses: Marketing, promotion, rewards and cardmember services 4,944 3,814 30 (16) (74) 4,928 3,740 32 Provision for losses and claims: Charge card 833 853 (2) Lending 1,130 1,218 (7) 942 1,067 2,072 2,285 (9) Other 176 127 38 ---------- ----------- -------- -------- --------- ---------- Total 2,139 2,198 (3) 942 1,067 3,081 3,265 (6) Charge card interest expense 713 786 (9) Human resources 4,389 3,822 15 Other operating expenses: Professional services 2,101 1,958 7 Occupancy and equipment 1,300 1,199 8 Communications 465 452 3 Other 1,410 1,389 1 (10) (50) 1,400 1,339 4 ---------- ----------- -------- -------- --------- ---------- Total 5,276 4,998 6 (10) (50) 5,266 4,948 6 ---------- ----------- -------- -------- --------- ---------- Total expenses 17,461 15,618 12 $ 916 $ 943 $18,377 $ 16,561 11 ---------- ----------- -------- -------- --------- ---------- Pre-tax income 4,117 3,571 15 Income tax provision 1,265 1,141 11 ---------- ----------- Net income $ 2,852 $ 2,430 17 ========== =========== </TABLE> American Express Company (www.americanexpress.com), founded in 1850, is a global travel, financial and network services provider. ***

12 Note: The 2004 Fourth Quarter/Full Year Earnings Supplement, as well as CFO Gary Crittenden's presentation from the investor conference call referred to below, will be available today on the American Express web site at http://ir.americanexpress.com. An investor conference call to discuss fourth quarter earnings results, operating performance and other topics that may be raised during the discussion will be held at 5:00 p.m. (ET) today. Live audio of the conference call will be accessible to the general public on the American Express web site at http://ir.americanexpress.com. A replay of the conference call also will be available today at the same web site address. *** THIS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS, WHICH ARE SUBJECT TO RISKS AND UNCERTAINTIES. THE WORDS "BELIEVE," "EXPECT," "ANTICIPATE," "OPTIMISTIC," "INTEND," "PLAN," "AIM," "WILL," "MAY," "SHOULD," "COULD," "WOULD," "LIKELY," AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. 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 COMPANY'S ABILITY TO IMPROVE ITS OPERATING EXPENSE TO REVENUE RATIO BOTH IN THE SHORT-TERM AND OVER TIME, WHICH WILL DEPEND IN PART ON THE EFFECTIVENESS OF REENGINEERING AND OTHER COST-CONTROL INITIATIVES, AS WELL AS FACTORS IMPACTING THE COMPANY'S REVENUES; THE COMPANY'S ABILITY TO COST EFFECTIVELY MANAGE AND EXPAND CARDMEMBER BENEFITS, INCLUDING CONTAINING THE GROWTH OF ITS MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES EXPENSES; THE COMPANY'S ABILITY TO ACCURATELY ESTIMATE THE PROVISION FOR THE COST OF THE MEMBERSHIP REWARDS PROGRAM; THE COMPANY'S ABILITY TO GROW ITS BUSINESS AND MEET OR EXCEED ITS RETURN ON SHAREHOLDERS' EQUITY TARGET BY REINVESTING APPROXIMATELY 35% OF ANNUALLY-GENERATED CAPITAL, AND RETURNING APPROXIMATELY 65% OF SUCH CAPITAL TO SHAREHOLDERS, OVER TIME, WHICH WILL DEPEND ON THE COMPANY'S ABILITY TO MANAGE ITS CAPITAL NEEDS AND THE EFFECT OF BUSINESS MIX, ACQUISITIONS AND RATING AGENCY REQUIREMENTS; THE ABILITY OF THE COMPANY TO GENERATE SUFFICIENT REVENUES FOR EXPANDED INVESTMENT SPENDING AND TO ACTUALLY SPEND SUCH FUNDS TO THE EXTENT AVAILABLE, AND THE ABILITY TO CAPITALIZE ON SUCH INVESTMENTS TO IMPROVE BUSINESS METRICS; CREDIT RISK RELATED TO CONSUMER DEBT, BUSINESS LOANS, MERCHANT BANKRUPTCIES AND OTHER CREDIT EXPOSURES BOTH IN THE U.S. AND INTERNATIONALLY; VOLATILITY IN THE VALUATION ASSUMPTIONS FOR THE INTEREST-ONLY (I/O) STRIP RELATING TO TRS' LENDING SECURITIZATIONS; FLUCTUATION IN THE EQUITY AND FIXED INCOME MARKETS, WHICH CAN AFFECT THE AMOUNT AND TYPES OF INVESTMENT PRODUCTS SOLD BY AEFA, THE MARKET VALUE OF ITS MANAGED ASSETS, AND MANAGEMENT, DISTRIBUTION AND OTHER FEES RECEIVED BASED ON THE VALUE OF THOSE ASSETS; AEFA'S ABILITY TO RECOVER DEFERRED ACQUISITION COSTS (DAC), AS WELL AS THE TIMING OF SUCH DAC AMORTIZATION, IN CONNECTION WITH THE SALE OF ANNUITY, INSURANCE AND CERTAIN MUTUAL FUND PRODUCTS; CHANGES IN ASSUMPTIONS RELATING TO DAC, WHICH COULD IMPACT THE AMOUNT OF DAC AMORTIZATION; THE ABILITY TO IMPROVE INVESTMENT PERFORMANCE IN AEFA'S BUSINESSES, INCLUDING ATTRACTING AND RETAINING HIGH-QUALITY PERSONNEL; THE

13 SUCCESS, TIMELINESS AND FINANCIAL IMPACT, INCLUDING COSTS, COST SAVINGS AND OTHER BENEFITS INCLUDING INCREASED REVENUES, 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 ABILITY TO CONTROL AND MANAGE OPERATING, INFRASTRUCTURE, ADVERTISING AND PROMOTION AND OTHER EXPENSES AS BUSINESS EXPANDS OR CHANGES, INCLUDING BALANCING THE NEED FOR LONGER-TERM INVESTMENT SPENDING; THE POTENTIAL NEGATIVE EFFECT ON THE COMPANY'S BUSINESSES AND INFRASTRUCTURE, INCLUDING INFORMATION TECHNOLOGY, OF TERRORIST ATTACKS, DISASTERS OR OTHER CATASTROPHIC EVENTS IN THE FUTURE; THE IMPACT ON THE COMPANY'S BUSINESSES RESULTING FROM CONTINUING GEOPOLITICAL UNCERTAINTY; THE OVERALL LEVEL OF CONSUMER CONFIDENCE; CONSUMER AND BUSINESS SPENDING ON THE COMPANY'S TRAVEL RELATED SERVICES PRODUCTS, PARTICULARLY CREDIT AND CHARGE CARDS AND GROWTH IN CARD LENDING BALANCES, WHICH DEPEND IN PART ON THE ABILITY TO ISSUE NEW AND ENHANCED CARD PRODUCTS AND INCREASE REVENUES FROM SUCH PRODUCTS, ATTRACT NEW CARDHOLDERS, CAPTURE A GREATER SHARE OF EXISTING CARDHOLDERS' SPENDING, SUSTAIN PREMIUM DISCOUNT RATES ON ITS CARD PRODUCTS IN LIGHT OF MARKET PRESSURES, INCREASE MERCHANT COVERAGE, RETAIN CARDMEMBERS AFTER LOW INTRODUCTORY LENDING RATES HAVE EXPIRED, AND EXPAND THE GLOBAL NETWORK SERVICES BUSINESS; 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; AEFA'S ABILITY TO DEVELOP AND ROLL OUT NEW AND ATTRACTIVE PRODUCTS TO CLIENTS IN A TIMELY MANNER AND EFFECTIVELY MANAGE THE ECONOMICS IN SELLING A GROWING VOLUME OF NON-PROPRIETARY MUTUAL FUNDS AND OTHER RETAIL FINANCIAL PRODUCTS TO CLIENTS; SUCCESSFULLY CROSS-SELLING FINANCIAL, TRAVEL, CARD AND OTHER PRODUCTS AND SERVICES TO THE COMPANY'S CUSTOMER BASE, BOTH IN THE UNITED STATES AND INTERNATIONALLY; 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; FLUCTUATIONS IN INTEREST RATES, WHICH IMPACT THE COMPANY'S BORROWING COSTS, RETURN ON LENDING PRODUCTS AND SPREADS IN THE INSURANCE, ANNUITY AND INVESTMENT CERTIFICATE BUSINESSES; CREDIT TRENDS AND THE RATE OF BANKRUPTCIES, WHICH CAN AFFECT SPENDING ON CARD PRODUCTS, DEBT PAYMENTS BY INDIVIDUAL AND CORPORATE CUSTOMERS AND BUSINESSES THAT ACCEPT THE COMPANY'S CARD PRODUCTS AND RETURNS ON THE COMPANY'S INVESTMENT PORTFOLIOS; BANKRUPTCIES, RESTRUCTURINGS OR SIMILAR EVENTS AFFECTING THE AIRLINE OR ANY OTHER INDUSTRY REPRESENTING A SIGNIFICANT PORTION OF TRS' 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; RISKS ASSOCIATED WITH THE COMPANY'S AGREEMENTS WITH DELTA AIR LINES TO PREPAY $500 MILLION FOR THE FUTURE PURCHASES OF DELTA SKYMILES REWARDS POINTS AND TO LOAN UP TO $100 MILLION TO DELTA; FLUCTUATIONS IN FOREIGN CURRENCY EXCHANGE RATES; 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; DEFICIENCIES AND INADEQUACIES IN THE COMPANY'S INTERNAL CONTROL OVER FINANCIAL REPORTING, WHICH COULD RESULT IN INACCURATE OR INCOMPLETE FINANCIAL STATEMENTS AND PUBLIC DISCLOSURES; CHANGES IN LAWS OR GOVERNMENT REGULATIONS, INCLUDING CHANGES IN TAX LAWS OR REGULATIONS THAT COULD RESULT IN THE ELIMINATION OF CERTAIN TAX BENEFITS; THE COSTS AND INTEGRATION OF ACQUISITIONS; AND OUTCOMES AND COSTS ASSOCIATED WITH LITIGATION AND COMPLIANCE AND REGULATORY MATTERS. 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, 2003, AND ITS OTHER REPORTS FILED WITH THE SEC. *** <Page> 14 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. (Preliminary) AMERICAN EXPRESS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Millions) <Table> <Caption> Quarters Ended Years Ended December 31, December 31, --------------------- Percentage ------------------------ Percentage 2004 2003 Inc/(Dec) 2004 2003 Inc/(Dec) --------- --------- ---------- -------- --------- ---------- <S> <C> <C> <C> <C> <C> <C> Revenues Discount revenue $ 2,817 $ 2,432 15.8% $ 10,249 $ 8,781 16.7% Net investment income 826 786 5.1 3,118 3,063 1.8 Management and distribution fees 788 728 8.4 3,023 2,420 24.9 Cardmember lending net finance charge revenue 560 531 5.5 2,224 2,042 8.9 Net card fees 491 467 5.2 1,909 1,835 4.1 Travel commissions and fees 484 445 8.6 1,795 1,507 19.1 Other commissions and fees 616 531 16.1 2,284 1,960 16.5 Insurance and annuity revenues 394 366 7.4 1,525 1,366 11.6 Securitization income, net 325 293 10.9 1,132 1,105 2.4 Other 470 459 2.5 1,856 1,757 5.7 --------- --------- -------- --------- Total revenues 7,771 7,038 10.4 29,115 25,836 12.7 --------- --------- -------- --------- Expenses Human resources 1,971 1,678 17.5 7,359 6,303 16.7 Marketing, promotion, rewards and cardmember services 1,472 1,166 26.3 5,083 3,901 30.3 Provision for losses and benefits 1,162 1,164 (0.1) 4,318 4,429 (2.5) Interest 238 205 16.3 867 905 (4.1) Other operating expenses 1,745 1,735 0.5 6,537 6,051 8.0 --------- --------- -------- --------- Total expenses 6,588 5,948 10.8 24,164 21,589 11.9 --------- --------- -------- --------- Pretax income before accounting change 1,183 1,090 8.6 4,951 4,247 16.6 Income tax provision 287 314 (8.5) 1,435 1,247 15.1 --------- --------- -------- --------- Income before accounting change 896 776 15.5 3,516 3,000 17.2 Cumulative effect of accounting change, net of tax - (13)(B) # (71)(A) (13)(B) # --------- --------- -------- --------- Net income $ 896 $ 763 17.5 $ 3,445 $ 2,987 15.3 ========= ========= ======== ========= </Table> Certain prior period amounts have been reclassified to conform to current year presentation. # - Denotes a variance of more than 100%. Note: Fourth quarter 2004 results reflect aggregate restructuring charges of $102 million pretax ($66 million after-tax) for initiatives executed during 2004, of which $79 million was recorded in human resources and $23 million within other operating expenses. In addition, other operating expenses include a $117 million net gain recorded in the fourth quarter on the sale of AEBF's leasing product line. (A) Reflects a $109 million non-cash pretax charge ($71 million after-tax) related to the January 1, 2004 adoption of SOP 03-1. (B) Reflects a $20 million non-cash pretax charge ($13 million after-tax) related to the December 31, 2003 adoption of FIN 46, as revised. <Page> 15 (Preliminary) AMERICAN EXPRESS COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Billions) <Table> <Caption> December 31, December 31, 2004 2003 ------------ ------------ <S> <C> <C> Assets Cash and cash equivalents $ 10 $ 6 Accounts receivable 35 31 Investments 61 57 Loans 35 32 Separate account assets 36 31 Other assets 16 18 ------------ ------------ Total assets $ 193 $ 175 ============ ============ Liabilities and Shareholders' Equity Separate account liabilities $ 36 $ 31 Short-term debt 14 19 Long-term debt 33 21 Other liabilities 94 89 ------------ ------------ Total liabilities 177 160 ------------ ------------ Shareholders' Equity 16 15 ------------ ------------ Total liabilities and shareholders' equity $ 193 $ 175 ============ ============ </Table> <Page> 16 (Preliminary) AMERICAN EXPRESS COMPANY FINANCIAL SUMMARY (Unaudited) (Millions) <Table> <Caption> Quarters Ended Years Ended December 31, December 31, --------------------- Percentage ------------------------ Percentage 2004 2003 Inc/(Dec) 2004 2003 Inc/(Dec) --------- --------- ---------- --------- --------- ---------- <S> <C> <C> <C> <C> <C> <C> REVENUES Travel Related Services $ 5,788 $ 5,211 11.0% $ 21,578 $ 19,189 12.4% American Express Financial Advisors 1,856 1,710 8.5 7,035 6,142 14.5 American Express Bank 207 205 1.1 825 801 3.0 --------- --------- --------- --------- 7,851 7,126 10.2 29,438 26,132 12.6 Corporate and other, including adjustments and eliminations (80) (88) 11.0 (323) (296) (8.6) --------- --------- --------- --------- CONSOLIDATED REVENUES $ 7,771 $ 7,038 10.4 $ 29,115 $ 25,836 12.7 ========= ========= ========= ========= PRETAX INCOME (LOSS) BEFORE ACCOUNTING CHANGE Travel Related Services $ 1,018 $ 884 15.1 $ 4,117 $ 3,571 15.3 American Express Financial Advisors 248 248 0.5 1,086 859 26.5 American Express Bank 7 42 (83.6) 146 151 (3.1) --------- --------- --------- --------- 1,273 1,174 8.5 5,349 4,581 16.8 Corporate and other (90) (84) (7.2) (398) (334) (19.4) --------- --------- --------- --------- PRETAX INCOME BEFORE ACCOUNTING CHANGE $ 1,183 $ 1,090 8.6 $ 4,951 $ 4,247 16.6 ========= ========= ========= ========= NET INCOME (LOSS) Travel Related Services $ 729 $ 606 20.2 $ 2,852 $ 2,430 17.4 American Express Financial Advisors 218 182(B) 20.2 735(A) 669(B) 9.9 American Express Bank 6 29 (79.1) 96 102 (6.1) --------- --------- --------- --------- 953 817 16.7 3,683 3,201 15.0 Corporate and other (57) (54) (5.8) (238) (214) (11.1) --------- --------- --------- --------- NET INCOME $ 896 $ 763(B) 17.5 $ 3,445(A) $ 2,987(B) 15.3 ========= ========= ========= ========= </Table> Certain prior period amounts have been reclassified to conform to current year presentation. Note: Fourth quarter 2004 results reflect aggregate restructuring charges of $102 million pretax ($66 million after-tax) for initiatives executed during 2004, of which $79 million was recorded in human resources and $23 million within other operating expenses. In addition, other operating expenses include a $117 million net gain recorded in the fourth quarter on the sale of AEBF's leasing product line. (A) Reflects a $109 million non-cash pretax charge ($71 million after-tax) related to the January 1, 2004 adoption of SOP 03-1. (B) Reflects a $20 million non-cash pretax charge ($13 million after-tax) related to the December 31, 2003 adoption of FIN 46, as revised. <Page> 17 (Preliminary) AMERICAN EXPRESS COMPANY FINANCIAL SUMMARY (CONTINUED) (UNAUDITED) <Table> <Caption> Quarters Ended December 31, ---------------------- Percentage 2004 2003 Inc/(Dec) -------- -------- ------------ <S> <C> <C> <C> EARNINGS PER COMMON SHARE BASIC Income before accounting change $ 0.72 $ 0.61 18.0% Net income $ 0.72 $ 0.60(B) 20.0% ======== ======== Average common shares outstanding (millions) 1,242 1,277 (2.7)% ======== ======== DILUTED Income before accounting change $ 0.71 $ 0.60 18.3% Net income $ 0.71 $ 0.59(B) 20.3% ======== ======== Average common shares outstanding (millions) 1,270 1,299 (2.2)% ======== ======== Cash dividends declared per common share $ 0.12 $ 0.10 20.0% ======== ======== <Caption> Years Ended December 31, ---------------------- Percentage 2004 2003 Inc/(Dec) -------- -------- ------------ <S> <C> <C> <C> EARNINGS PER COMMON SHARE BASIC Income before accounting change $ 2.79 $ 2.34 19.2% Net income $ 2.74(A) $ 2.33(B) 17.6% ======== ======== Average common shares outstanding (millions) 1,259 1,284 (2.0)% ======== ======== DILUTED Income before accounting change $ 2.74 $ 2.31 18.6% Net income $ 2.68(A) $ 2.30(B) 16.5% ======== ======== Average common shares outstanding (millions) 1,285 1,298 (1.0)% ======== ======== Cash dividends declared per common share $ 0.44 $ 0.38 15.8% ======== ======== </Table> Note: Fourth quarter 2004 results reflect aggregate restructuring charges of $102 million pretax ($66 million after-tax) for initiatives executed during 2004, of which $79 million was recorded in human resources and $23 million within other operating expenses. In addition, other operating expenses include a $117 million net gain recorded in the fourth quarter on the sale of AEBF's leasing product line. (A) Reflects a $109 million non-cash pretax charge ($71 million after-tax), or $0.05, on a basic per share basis and $0.06 on a diluted per share basis, related to the January 1, 2004 adoption of SOP 03-1. (B) Reflects a $20 million non-cash pretax charge ($13 million after-tax), or $0.01 per share on both a basic and diluted basis, related to the December 31, 2003 adoption of FIN 46, as revised. SELECTED STATISTICAL INFORMATION (Unaudited) <Table> <Caption> Quarters Ended December 31, --------------------- Percentage 2004 2003 Inc/(Dec) -------- -------- ----------- <S> <C> <C> <C> Return on average total shareholders' equity (C) 22.0% 20.6% Common shares outstanding (millions) 1,249 1,284 (2.7)% Book value per common share $ 12.83 $ 11.93 7.5% Shareholders' equity (billions) $ 16.0 $ 15.3 4.6% <Caption> Years Ended December 31, --------------------- Percentage 2004 2003 Inc/(Dec) -------- -------- ----------- <S> <C> <C> <C> Return on average total shareholders' equity (C) 22.0% 20.6% Common shares outstanding (millions) 1,249 1,284 (2.7)% Book value per common share $ 12.83 $ 11.93 7.5% Shareholders' equity (billions) $ 16.0 $ 15.3 4.6% </Table> (C) Computed on a trailing 12-month basis using total shareholders' equity as included in the Consolidated Financial Statements prepared in accordance with GAAP. 18

                                                                  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.

(Preliminary)
                           AMERICAN EXPRESS COMPANY
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)
(Millions)

<Table>
<Caption>
                                             Quarters Ended                               Years Ended
                                              December 31,                                December 31,
                                          ---------------------       Percentage    ------------------------       Percentage
                                            2004        2003          Inc/(Dec)       2004           2003          Inc/(Dec)
                                          ---------   ---------       ----------    --------       ---------       ----------
<S>                                       <C>         <C>                   <C>     <C>            <C>                   <C>
Revenues
  Discount revenue                        $   2,817   $   2,432             15.8%   $ 10,249       $   8,781             16.7%
  Net investment income                         826         786              5.1       3,118           3,063              1.8
  Management and distribution fees              788         728              8.4       3,023           2,420             24.9
  Cardmember lending net finance charge
    revenue                                     560         531              5.5       2,224           2,042              8.9
  Net card fees                                 491         467              5.2       1,909           1,835              4.1
  Travel commissions and fees                   484         445              8.6       1,795           1,507             19.1
  Other commissions and fees                    616         531             16.1       2,284           1,960             16.5
  Insurance and annuity revenues                394         366              7.4       1,525           1,366             11.6
  Securitization income, net                    325         293             10.9       1,132           1,105              2.4
  Other                                         470         459              2.5       1,856           1,757              5.7
                                          ---------   ---------                     --------       ---------
    Total revenues                            7,771       7,038             10.4      29,115          25,836             12.7
                                          ---------   ---------                     --------       ---------
Expenses
  Human resources                             1,971       1,678             17.5       7,359           6,303             16.7
  Marketing, promotion, rewards
      and cardmember services                 1,472       1,166             26.3       5,083           3,901             30.3
  Provision for losses and benefits           1,162       1,164             (0.1)      4,318           4,429             (2.5)
  Interest                                      238         205             16.3         867             905             (4.1)
  Other operating expenses                    1,745       1,735              0.5       6,537           6,051              8.0
                                          ---------   ---------                     --------       ---------
    Total expenses                            6,588       5,948             10.8      24,164          21,589             11.9
                                          ---------   ---------                     --------       ---------
Pretax income before accounting change        1,183       1,090              8.6       4,951           4,247             16.6
Income tax provision                            287         314             (8.5)      1,435           1,247             15.1
                                          ---------   ---------                     --------       ---------
Income before accounting change                 896         776             15.5       3,516           3,000             17.2
Cumulative effect of accounting change,
  net of tax                                      -         (13)(B)           #          (71)(A)         (13)(B)           #
                                          ---------   ---------                     --------       ---------
Net income                                $     896   $     763             17.5    $  3,445       $   2,987             15.3
                                          =========   =========                     ========       =========
</Table>

Certain prior period amounts have been reclassified to conform to current year
presentation.

# - Denotes a variance of more than 100%.

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $102 million pretax ($66 million after-tax) for initiatives executed
      during 2004, of which $79 million was recorded in human resources and
      $23 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
    related to the January 1, 2004 adoption of SOP 03-1.

(B) Reflects a $20 million non-cash pretax charge ($13 million after-tax)
    related to the December 31, 2003 adoption of FIN 46, as revised.

                                      -1-
<Page>

(Preliminary)
                           AMERICAN EXPRESS COMPANY
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)
(Billions)

<Table>
<Caption>
                                                           December 31,   December 31,
                                                               2004           2003
                                                           ------------   ------------
<S>                                                        <C>            <C>
Assets
  Cash and cash equivalents                                $         10   $          6
  Accounts receivable                                                35             31
  Investments                                                        61             57
  Loans                                                              35             32
  Separate account assets                                            36             31
  Other assets                                                       16             18
                                                           ------------   ------------
    Total assets                                           $        193   $        175
                                                           ============   ============

Liabilities and Shareholders' Equity
  Separate account liabilities                             $         36   $         31
  Short-term debt                                                    14             19
  Long-term debt                                                     33             21
  Other liabilities                                                  94             89
                                                           ------------   ------------
    Total liabilities                                               177            160
                                                           ------------   ------------

  Shareholders' Equity                                               16             15
                                                           ------------   ------------
    Total liabilities and shareholders' equity             $        193   $        175
                                                           ============   ============
</Table>

                                      -2-
<Page>

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

<Table>
<Caption>
                                             Quarters Ended                               Years Ended
                                              December 31,                                December 31,
                                          ---------------------       Percentage    ------------------------      Percentage
                                            2004         2003         Inc/(Dec)       2004           2003         Inc/(Dec)
                                          ---------    ---------      ----------    ---------      ---------      ----------
<S>                                       <C>          <C>                  <C>     <C>            <C>                 <C>
REVENUES
  Travel Related Services                 $   5,788    $   5,211            11.0%   $  21,578      $  19,189            12.4%
  American Express Financial Advisors         1,856        1,710             8.5        7,035          6,142            14.5
  American Express Bank                         207          205             1.1          825            801             3.0
                                          ---------    ---------                    ---------      ---------
                                              7,851        7,126            10.2       29,438         26,132            12.6
  Corporate and other, including
    adjustments and eliminations                (80)         (88)           11.0         (323)          (296)           (8.6)
                                          ---------    ---------                    ---------      ---------

CONSOLIDATED REVENUES                     $   7,771    $   7,038            10.4    $  29,115      $  25,836            12.7
                                          =========    =========                    =========      =========

PRETAX INCOME (LOSS) BEFORE ACCOUNTING
 CHANGE
  Travel Related Services                 $   1,018    $     884            15.1    $   4,117      $   3,571            15.3
  American Express Financial Advisors           248          248             0.5        1,086            859            26.5
  American Express Bank                           7           42           (83.6)         146            151            (3.1)
                                          ---------    ---------                    ---------      ---------
                                              1,273        1,174             8.5        5,349          4,581            16.8
  Corporate and other                           (90)         (84)           (7.2)        (398)          (334)          (19.4)
                                          ---------    ---------                    ---------      ---------

PRETAX INCOME BEFORE ACCOUNTING CHANGE    $   1,183    $   1,090             8.6    $   4,951      $   4,247            16.6
                                          =========    =========                    =========      =========

NET INCOME (LOSS)
  Travel Related Services                 $     729    $     606            20.2    $   2,852      $   2,430            17.4
  American Express Financial Advisors           218          182(B)         20.2          735(A)         669(B)          9.9
  American Express Bank                           6           29           (79.1)          96            102            (6.1)
                                          ---------    ---------                    ---------      ---------
                                                953          817            16.7        3,683          3,201            15.0
  Corporate and other                           (57)         (54)           (5.8)        (238)          (214)          (11.1)
                                          ---------    ---------                    ---------      ---------

NET INCOME                                $     896    $     763(B)         17.5    $   3,445(A)   $   2,987(B)         15.3
                                          =========    =========                    =========      =========
</Table>

Certain prior period amounts have been reclassified to conform to current year
presentation.

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $102 million pretax ($66 million after-tax) for initiatives executed
      during 2004, of which $79 million was recorded in human resources and
      $23 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
    related to the January 1, 2004 adoption of SOP 03-1.

(B) Reflects a $20 million non-cash pretax charge ($13 million after-tax)
    related to the December 31, 2003 adoption of FIN 46, as revised.

                                      -3-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                         FINANCIAL SUMMARY (CONTINUED)
                                  (UNAUDITED)

<Table>
<Caption>
                                                               Quarters Ended
                                                                December 31,
                                                          ----------------------       Percentage
                                                            2004          2003          Inc/(Dec)
                                                          --------      --------      ------------
<S>                                                       <C>           <C>                   <C>
EARNINGS PER COMMON SHARE

BASIC
   Income before accounting change                        $   0.72      $   0.61              18.0%

   Net income                                             $   0.72      $   0.60(B)           20.0%
                                                          ========      ========

   Average common shares outstanding (millions)              1,242         1,277              (2.7)%
                                                          ========      ========

DILUTED
   Income before accounting change                        $   0.71      $   0.60              18.3%

   Net income                                             $   0.71      $   0.59(B)           20.3%
                                                          ========      ========

   Average common shares outstanding (millions)              1,270         1,299              (2.2)%
                                                          ========      ========

Cash dividends declared per common share                  $   0.12      $   0.10              20.0%
                                                          ========      ========

<Caption>
                                                                Years Ended
                                                                December 31,
                                                          ----------------------       Percentage
                                                            2004          2003          Inc/(Dec)
                                                          --------      --------      ------------
<S>                                                       <C>           <C>                   <C>
EARNINGS PER COMMON SHARE

BASIC
   Income before accounting change                        $   2.79      $   2.34              19.2%

   Net income                                             $   2.74(A)   $   2.33(B)           17.6%
                                                          ========      ========

   Average common shares outstanding (millions)              1,259         1,284              (2.0)%
                                                          ========      ========

DILUTED
   Income before accounting change                        $   2.74      $   2.31              18.6%

   Net income                                             $   2.68(A)   $   2.30(B)           16.5%
                                                          ========      ========

   Average common shares outstanding (millions)              1,285         1,298              (1.0)%
                                                          ========      ========

Cash dividends declared per common share                  $   0.44      $   0.38              15.8%
                                                          ========      ========
</Table>

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $102 million pretax ($66 million after-tax) for initiatives executed
      during 2004, of which $79 million was recorded in human resources and
      $23 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

(A)   Reflects a $109 million non-cash pretax charge ($71 million after-tax),
      or $0.05, on a basic per share basis and $0.06 on a diluted per share
      basis, related to the January 1, 2004 adoption of SOP 03-1.


(B)   Reflects a $20 million non-cash pretax charge ($13 million after-tax),
      or $0.01 per share on both a basic and diluted basis, related to the
      December 31, 2003 adoption of FIN 46, as revised.

                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)

<Table>
<Caption>
                                                         Quarters Ended
                                                          December 31,
                                                     ---------------------     Percentage
                                                       2004         2003        Inc/(Dec)
                                                     --------     --------     -----------
<S>                                                  <C>          <C>                 <C>
Return on average total shareholders' equity (C)         22.0%        20.6%
Common shares outstanding (millions)                    1,249        1,284            (2.7)%
Book value per common share                          $  12.83     $  11.93              7.5%
Shareholders' equity (billions)                      $   16.0     $   15.3              4.6%

<Caption>
                                                         Years Ended
                                                         December 31,
                                                     ---------------------     Percentage
                                                       2004         2003        Inc/(Dec)
                                                     --------     --------     -----------
<S>                                                  <C>          <C>                 <C>
Return on average total shareholders' equity (C)         22.0%        20.6%
Common shares outstanding (millions)                    1,249        1,284            (2.7)%
Book value per common share                          $  12.83     $  11.93             7.5%
Shareholders' equity (billions)                      $   16.0     $   15.3             4.6%
</Table>



(C)   Computed on a trailing 12-month basis using total shareholders' equity
      as included in the Consolidated Financial Statements prepared in
      accordance with GAAP.

                                      -4-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)

(Millions)

<Table>
<Caption>
                                                                      Quarters Ended
                                                       ---------------------------------------------
                                                        December 31,   September 30,      June 30,
                                                           2004           2004             2004
                                                       -------------   -------------   -------------
<S>                                                    <C>             <C>             <C>
Revenues
  Discount revenue                                     $       2,817   $       2,535   $       2,529
  Net investment income                                          826             766             785
  Management and distribution fees                               788             732             724
  Cardmember lending net finance charge revenue                  560             562             561
  Net card fees                                                  491             474             472
  Travel commissions and fees                                    484             426             468
  Other commissions and fees                                     616             574             565
  Insurance and annuity revenues                                 394             389             378
  Securitization income, net                                     325             295             282
  Other                                                          470             449             468
                                                       -------------   -------------   -------------
   Total revenues                                              7,771           7,202           7,232
                                                       -------------   -------------   -------------
Expenses
  Human resources                                              1,971           1,796           1,813
  Marketing, promotion, rewards
    and cardmember services                                    1,472           1,314           1,250
  Provision for losses and benefits                            1,162           1,054           1,080
  Interest                                                       238             216             210
  Other operating expenses                                     1,745           1,568           1,613
                                                       -------------   -------------   -------------
    Total expenses                                             6,588           5,948           5,966
                                                       -------------   -------------   -------------
Pretax income before accounting change                         1,183           1,254           1,266
Income tax provision                                             287             375             390
                                                       -------------   -------------   -------------
Income before accounting change                                  896             879             876
Cumulative effect of accounting change, net of tax                 -               -               -
                                                       -------------   -------------   -------------
Net income                                             $         896   $         879   $         876
                                                       =============   =============   =============

<Caption>
                                                                Quarters Ended
                                                       ---------------------------------
                                                         March 31,          December 31,
                                                           2004                2003
                                                       -------------       -------------
<S>                                                    <C>                 <C>
Revenues
  Discount revenue                                     $       2,368       $       2,432
  Net investment income                                          741                 786
  Management and distribution fees                               779                 728
  Cardmember lending net finance charge revenue                  541                 531
  Net card fees                                                  472                 467
  Travel commissions and fees                                    417                 445
  Other commissions and fees                                     529                 531
  Insurance and annuity revenues                                 364                 366
  Securitization income, net                                     230                 293
  Other                                                          469                 459
                                                       -------------       -------------
    Total revenues                                             6,910               7,038
                                                       -------------       -------------
Expenses
  Human resources                                              1,779               1,678
  Marketing, promotion, rewards
    and cardmember services                                    1,047               1,166
  Provision for losses and benefits                            1,022               1,164
  Interest                                                       203                 205
  Other operating expenses                                     1,611               1,735
                                                       -------------       -------------
   Total expenses                                              5,662               5,948
                                                       -------------       -------------
Pretax income before accounting change                         1,248               1,090
Income tax provision                                             383                 314
                                                       -------------       -------------
Income before accounting change                                  865                 776
Cumulative effect of accounting change, net of tax               (71)(A)             (13)(B)
                                                       -------------       -------------
Net income                                             $         794       $         763
                                                       =============       =============
</Table>

Certain prior period amounts have been reclassified to conform to current year
presentation.

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $102 million pretax ($66 million after-tax) for initiatives executed
      during 2004, of which $79 million was recorded in human resources and
      $23 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
    related to the January 1, 2004 adoption of SOP 03-1.

(B) Reflects a $20 million non-cash pretax charge ($13 million after-tax)
    related to the December 31, 2003 adoption of FIN 46, as revised.

                                      -5-
<Page>

(Preliminary)

                           AMERICAN EXPRESS COMPANY
                               FINANCIAL SUMMARY
                                  (Unaudited)
(Millions)

<Table>
<Caption>
                                                                          Quarters Ended
                                        ----------------------------------------------------------------------------------
                                        December 31,       September 30,        June 30,     March 31,        December 31,
                                            2004               2004               2004         2004               2003
                                        ------------       -------------       ----------    ----------       ------------
<S>                                     <C>                <C>                 <C>           <C>              <C>
REVENUES
  Travel Related Services               $      5,788       $       5,362       $    5,378    $    5,050       $      5,211
  American Express Financial Advisors          1,856               1,714            1,737         1,728              1,710
  American Express Bank                          207                 205              203           210                205
                                        ------------       -------------       ----------    ----------       ------------
                                               7,851               7,281            7,318         6,988              7,126
  Corporate and other,
    including adjustments and
    eliminations                                 (80)                (79)             (86)          (78)               (88)
                                        ------------       -------------       ----------    ----------       ------------

CONSOLIDATED REVENUES                   $      7,771       $       7,202       $    7,232    $    6,910       $      7,038
                                        ============       =============       ==========    ==========       ============

PRETAX INCOME (LOSS) BEFORE
  ACCOUNTING CHANGE
  Travel Related Services               $      1,018       $       1,047       $    1,079    $      973       $        884
  American Express Financial Advisors            248                 257              264           317                248
  American Express Bank                            7                  49               42            48                 42
                                        ------------       -------------       ----------    ----------       ------------
                                               1,273               1,353            1,385         1,338              1,174
  Corporate and other                            (90)                (99)            (119)          (90)               (84)
                                        ------------       -------------       ----------    ----------       ------------
PRETAX INCOME BEFORE ACCOUNTING
  CHANGE                                $      1,183       $       1,254       $    1,266    $    1,248       $      1,090
                                        ============       =============       ==========    ==========       ============

NET INCOME (LOSS)
  Travel Related Services               $        729       $         726       $      732    $      665       $        606
  American Express Financial Advisors            218                 186              174           157(A)             182(B)
  American Express Bank                            6                  32               28            30                 29
                                        ------------       -------------       ----------    ----------       ------------
                                                 953                 944              934           852                817
  Corporate and other                            (57)                (65)             (58)          (58)               (54)
                                        ------------       -------------       ----------    ----------       ------------

NET INCOME                              $        896       $         879       $      876    $      794(A)    $        763(B)
                                        ============       =============       ==========    ==========       ============
</Table>

Certain prior period amounts have been reclassified to conform to current year
presentation.

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $102 million pretax ($66 million after-tax) for initiatives executed
      during 2004, of which $79 million was recorded in human resources and
      $23 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

(A) Reflects a $109 million non-cash pretax charge ($71 million after-tax)
    related to the January 1, 2004 adoption of SOP 03-1.

(B) Reflects a $20 million non-cash pretax charge ($13 million after-tax)
    related to the December 31, 2003 adoption of FIN 46, as revised.

                                      -6-
<Page>

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

<Table>
<Caption>
                                                                        Quarters Ended
                                        -------------------------------------------------------------------------------
                                        December 31,      September 30,       June 30,     March 31,       December 31,
                                            2004              2004              2004         2004              2003
                                        ------------      -------------      ----------    ----------      ------------
<S>                                     <C>               <C>                <C>           <C>             <C>
EARNINGS PER COMMON SHARE

BASIC
      Income before accounting change   $       0.72      $        0.70      $     0.69    $     0.68      $       0.61

      Net income                        $       0.72      $        0.70      $     0.69    $     0.62(A)   $       0.60(B)
                                        ============      =============      ==========    ==========      ============

      Average common shares
        outstanding (millions)                 1,242              1,251           1,263         1,277             1,277
                                        ============      =============      ==========    ==========      ============

DILUTED
      Income before accounting change   $       0.71      $        0.69      $     0.68    $     0.66      $       0.60

      Net income                        $       0.71      $        0.69      $     0.68    $     0.61(A)   $       0.59(B)
                                        ============      =============      ==========    ==========      ============

      Average common shares
        outstanding (millions)                 1,270              1,275           1,288         1,305             1,299
                                        ============      =============      ==========    ==========      ============

Cash dividends declared per common
  share                                 $       0.12      $        0.12      $     0.10    $     0.10      $       0.10
                                        ============      =============      ==========    ==========      ============
</Table>

                        SELECTED STATISTICAL INFORMATION
                                   (Unaudited)

<Table>
<Caption>
                                                                        Quarters Ended
                                        -------------------------------------------------------------------------------
                                        December 31,      September 30,       June 30,     March 31,       December 31,
                                            2004              2004             2004          2004             2003
                                        ------------      -------------      ----------    ----------      ------------
<S>                                     <C>               <C>                <C>           <C>             <C>
Return on average total shareholders'
  equity (C)                                    22.0%              21.5%           21.2%         20.7%             20.6%
Common shares outstanding (millions)           1,249              1,255           1,267         1,281             1,284
Book value per common share             $      12.83      $       12.62      $    11.96    $    12.30      $      11.93
Shareholders' equity (billions)         $       16.0      $        15.8      $     15.2    $     15.7      $       15.3
</Table>

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $102 million pretax ($66 million after-tax) for initiatives executed
      during 2004, of which $79 million was recorded in human resources and
      $23 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax),
     or $0.06 on a basic per share basis and $0.05 on a diluted per share
     basis, related to the January 1, 2004 adoption of SOP 03-1.

(B)  Reflects a $20 million non-cash pretax charge ($13 million after-tax),
     or $0.01 per share on both a basic and diluted basis, related to the
     December 31, 2003 adoption of FIN 46, as revised.

(C)  Computed on a trailing 12-month basis using total shareholders' equity
     as included in the Consolidated Financial Statements prepared in
     accordance with GAAP.

                                      -7-
<Page>

(Preliminary)
                             TRAVEL RELATED SERVICES
                              STATEMENTS OF INCOME
                                   (Unaudited)
(Millions)

<Table>
<Caption>
                                             Quarters Ended                                     Years Ended
                                              December 31,                                      December 31,
                                       --------------------------      Percentage       --------------------------      Percentage
                                          2004            2003          Inc/(Dec)          2004            2003          Inc/(Dec)
                                       ----------      ----------      ----------       ----------      ----------      ----------
<S>                                    <C>             <C>                   <C>        <C>             <C>                   <C>
Net revenues:
  Discount revenue                     $    2,817      $    2,432            15.8%      $   10,249      $    8,781            16.7%
  Lending:
    Finance charge revenue                    716             654             9.4            2,795           2,525            10.7
    Interest expense                          156             123            26.1              571             483            18.1
                                       ----------      ----------                       ----------      ----------
      Net finance charge revenue              560             531             5.5            2,224           2,042             8.9
  Net card fees                               491             467             5.2            1,909           1,835             4.1
  Travel commissions and fees                 484             445             8.6            1,795           1,507            19.1
  Other commissions and fees                  606             515            17.5            2,230           1,901            17.3
  Travelers Cheque investment income           94              93             1.0              378             367             2.9
  Securitization income, net                  325             293            10.9            1,132           1,105             2.4
  Other revenues                              411             435            (5.5)           1,661           1,651             0.6
                                       ----------      ----------                       ----------      ----------
        Total net revenues                  5,788           5,211            11.0           21,578          19,189            12.4
                                       ----------      ----------                       ----------      ----------
Expenses:
  Marketing, promotion, rewards
    and cardmember services                 1,416           1,141            24.1            4,944           3,814            29.6
  Provision for losses and claims:
    Charge card                               240             227             5.3              833             853            (2.4)
    Lending                                   296             330           (10.4)           1,130           1,218            (7.2)
    Other                                      30              28             6.0              176             127            38.4
                                       ----------      ----------                       ----------      ----------
      Total                                   566             585            (3.5)           2,139           2,198            (2.7)
  Charge card interest expense                196             187             4.9              713             786            (9.2)
  Human resources                           1,169           1,003            16.6            4,389           3,822            14.8
  Other operating expenses:
    Professional services                     619             567             9.2            2,101           1,958             7.3
    Occupancy and equipment                   366             371            (1.3)           1,300           1,199             8.4
    Communications                            118             116             1.6              465             452             2.8
    Other                                     320             357           (10.4)           1,410           1,389             1.5
                                       ----------      ----------                       ----------      ----------
      Total                                 1,423           1,411             0.8            5,276           4,998             5.5
                                       ----------      ----------                       ----------      ----------
        Total expenses                      4,770           4,327            10.2           17,461          15,618            11.8
                                       ----------      ----------                       ----------      ----------
Pretax income                               1,018             884            15.1            4,117           3,571            15.3
Income tax provision                          289             278             4.0            1,265           1,141            10.9
                                       ----------      ----------                       ----------      ----------
Net income                             $      729      $      606            20.2       $    2,852      $    2,430            17.4
                                       ==========      ==========                       ==========      ==========
</Table>

Note:  Fourth quarter 2004 results reflect aggregate restructuring charges of
       $64 million pretax ($42 million after-tax) for initiatives executed
       during 2004, of which $46 million was recorded in human resources and
       $18 million within other operating expenses. In addition, other
       operating expenses include a $117 million net gain recorded in the
       fourth quarter on the sale of AEBF's leasing product line.

                                      -8-
<Page>

(Preliminary)

                             TRAVEL RELATED SERVICES
                         SELECTED FINANCIAL INFORMATION
                                   (Unaudited)

Quarters Ended December 31,
(Millions)

<Table>
<Caption>
                                              GAAP Basis
                                      --------------------------       Percentage
                                         2004            2003           Inc/(Dec)
                                      ----------      ----------       ----------
<S>                                   <C>             <C>                    <C>
Net revenues:
  Discount revenue                    $    2,817      $    2,432             15.8%
  Lending:
    Finance charge revenue                   716             654              9.4
    Interest expense                         156             123             26.1
                                      ----------      ----------
      Net finance charge revenue             560             531              5.5
  Net card fees                              491             467              5.2
  Travel commissions and fees                484             445              8.6
  Other commissions and
    fees                                     606             515             17.5
  Travelers Cheque
    investment income                         94              93              1.0
  Securitization income, net                 325             293             10.9
  Other revenues                             411             435             (5.5)
                                      ----------      ----------
        Total net revenues                 5,788           5,211             11.0
                                      ----------      ----------
Expenses:
  Marketing, promotion,
    rewards and cardmember services        1,416           1,141             24.1
  Provision for losses and claims:
    Charge card                              240             227              5.3
    Lending                                  296             330            (10.4)
    Other                                     30              28              6.0
                                      ----------      ----------
      Total                                  566             585             (3.5)
  Charge card interest expense               196             187              4.9
  Human resources                          1,169           1,003             16.6
  Other operating expenses:
    Professional services                    619             567              9.2
    Occupancy and equipment                  366             371             (1.3)
    Communications                           118             116              1.6
    Other                                    320             357            (10.4)
                                      ----------      ----------
      Total                                1,423           1,411              0.8
                                      ----------      ----------
        Total expenses                     4,770           4,327             10.2
                                      ----------      ----------
Pretax income                              1,018             884             15.1
Income tax provision                         289             278              4.0
                                      ----------      ----------
Net income                            $      729      $      606             20.2
                                      ==========      ==========

<Caption>
                                         Securitization Effect                Managed Basis
                                      ---------------------------       --------------------------      Percentage
                                         2004             2003             2004            2003         Inc/(Dec)
                                      ----------       ----------       ----------      ----------      ----------
<S>                                   <C>              <C>              <C>             <C>                   <C>
Net revenues:
  Discount revenue
  Lending:
    Finance charge revenue            $      621       $      532       $    1,337      $    1,186            12.7%
    Interest expense                         132               84              288             207            37.8
                                      ----------       ----------       ----------      ----------
      Net finance charge revenue             489              448            1,049             979             7.3
  Net card fees
  Travel commissions and fees
  Other commissions and fees                  54               53              660             568            16.1
  Travelers Cheque
    investment income
  Securitization income, net                (325)            (293)               -               -               -
  Other revenues
                                      ----------       ----------       ----------      ----------
        Total net revenues                   218              208            6,006           5,419            10.8
                                      ----------       ----------       ----------      ----------
Expenses:
  Marketing, promotion,
    rewards and cardmember services
  Provision for losses and claims:
    Charge card
    Lending                                  218              208              514             538            (4.5)
    Other
                                      ----------       ----------       ----------      ----------
      Total                                  218              208              784             793            (1.3)
  Charge card interest expense
  Human resources
  Other operating expenses:
    Professional services
    Occupancy and equipment
    Communications
    Other
      Total
                                      ----------       ----------       ----------      ----------
        Total expenses                $      218       $      208       $    4,988      $    4,535            10.0
                                      ----------       ----------       ----------      ----------
Pretax income
Income tax provision
Net income
</Table>

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $64 million pretax ($42 million after-tax) for initiatives executed
      during 2004, of which $46 million was recorded in human resources and
      $18 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

Securitization income, net represents the non-credit provision components of
the net gains and charges from securitization activities, the amortization
and related impairment charges, if any, of the related interest-only strip,
excess spread related to securitized loans, net finance charge revenue on
retained interests in securitized loans and servicing income, net of related
discounts or fees. Management views any net gains from securitizations as
discretionary benefits to be used for card acquisition expenses, which are
reflected in both marketing, promotion, rewards and cardmember services
expenses and other operating expenses. There were no new securitizations
during the quarters ended December 31, 2004 and 2003.

                                      -9-
<Page>

(Preliminary)
                            TRAVEL RELATED SERVICES
                        SELECTED FINANCIAL INFORMATION
                                  (Unaudited)
Years Ended December 31,
(Millions)

<Table>
<Caption>
                                          GAAP Basis                       Securitization Effect
                                    ---------------------   Percentage     ----------------------
                                      2004        2003       Inc/(Dec)        2004         2003
                                    ---------   ---------   -----------    ---------    ---------
<S>                                 <C>         <C>                <C>     <C>          <C>
Net revenues:
  Discount revenue                  $  10,249   $   8,781          16.7%
  Lending:
    Finance charge revenue              2,795       2,525          10.7    $   2,222    $   2,172
    Interest expense                      571         483          18.1          384          317
                                    ---------   ---------                  ---------    ---------
      Net finance charge revenue        2,224       2,042           8.9        1,838        1,855
  Net card fees                         1,909       1,835           4.1
  Travel commissions and fees           1,795       1,507          19.1
  Other commissions and fees            2,230       1,901          17.3          210          193
  Travelers Cheque investment
    income                                378         367           2.9
  Securitization income, net            1,132       1,105           2.4       (1,132)      (1,105)
  Other revenues                        1,661       1,651           0.6
                                    ---------   ---------                  ---------    ---------
        Total net revenues             21,578      19,189          12.4          916          943
                                    ---------   ---------                  ---------    ---------
Expenses:
  Marketing, promotion, rewards
    and cardmember services             4,944       3,814          29.6          (16)         (74)
  Provision for losses and
    claims:
    Charge card                           833         853          (2.4)
    Lending                             1,130       1,218          (7.2)         942        1,067
    Other                                 176         127          38.4
                                    ---------   ---------                  ---------    ---------
      Total                             2,139       2,198          (2.7)         942        1,067
  Charge card interest expense            713         786          (9.2)
  Human resources                       4,389       3,822          14.8
  Other operating expenses:
    Professional services               2,101       1,958           7.3
    Occupancy and equipment             1,300       1,199           8.4
    Communications                        465         452           2.8
    Other                               1,410       1,389           1.5          (10)         (50)
                                    ---------   ---------                  ---------    ---------
      Total                             5,276       4,998           5.5          (10)         (50)
                                    ---------   ---------                  ---------    ---------
        Total expenses                 17,461      15,618          11.8          916          943
                                    ---------   ---------                  ---------    ---------
Pretax income                           4,117       3,571          15.3
Income tax provision                    1,265       1,141          10.9
                                    ---------   ---------
Net income                          $   2,852   $   2,430          17.4
                                    =========   =========

<Caption>
                                      Managed Basis
                                   -------------------     Percentage
                                     2004       2003       Inc/(Dec)
                                   --------   --------    -----------
<S>                                <C>        <C>                <C>
Net revenues:
  Discount revenue
  Lending:
    Finance charge revenue         $  5,017   $  4,697            6.8%
    Interest expense                    955        800           19.3
                                   --------   --------
      Net finance charge revenue      4,062      3,897            4.3
  Net card fees
  Travel commissions and fees
  Other commissions and fees          2,440      2,094           16.5
  Travelers Cheque investment
    income
  Securitization income, net              -          -              -
  Other revenues
                                   --------   --------
        Total net revenues           22,494     20,132           11.7
                                   --------   --------
Expenses:
  Marketing, promotion, rewards
    and cardmember services           4,928      3,740           31.8
  Provision for losses and
    claims:
    Charge card
    Lending                           2,072      2,285           (9.4)
    Other
                                   --------   --------
      Total                           3,081      3,265           (5.7)
  Charge card interest expense
  Human resources
  Other operating expenses:
    Professional services
    Occupancy and equipment
    Communications
    Other                             1,400      1,339            4.5
                                   --------   --------
      Total                           5,266      4,948            6.4
                                   --------   --------
        Total expenses               18,377     16,561           11.0
                                   --------   --------
Pretax income
Income tax provision
Net income
</Table>

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $64 million pretax ($42 million after-tax) for initiatives executed
      during 2004, of which $46 million was recorded in human resources and
      $18 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

Securitization income, net represents the non-credit provision components of the
net gains and charges from securitization activities, the amortization and
related impairment charges, if any, of the related interest-only strip, excess
spread related to securitized loans, net finance charge revenue on retained
interests in securitized loans and servicing income, net of related discounts or
fees. Management views any net gains from securitizations as discretionary
benefits to be used for card acquisition expenses, which are reflected in both
marketing, promotion, rewards and cardmember services expenses and other
operating expenses. Consequently, the managed Selected Financial Information
above for the years ended December 31, 2004 and 2003 assumes that gains from new
issuances and charges from the amortization and maturities of outstanding
lending securitization transactions of $26 million and $124 million,
respectively, are offset by higher marketing, promotion, rewards and cardmember
services expenses of $16 million and $74 million, respectively, and other
operating expenses of $10 million and $50 million, respectively. Accordingly,
the incremental expenses, as well as the impact of this net activity, have been
eliminated.

                                     -10-
<Page>

(Preliminary)
                            TRAVEL RELATED SERVICES
                        SELECTED FINANCIAL INFORMATION
                                  (Unaudited)
Quarters Ended
(Millions)

<Table>
<Caption>
                                                       GAAP Basis                          Securitization Effect
                                       ---------------------------------------   -----------------------------------------
                                       September 30,    June 30,     March 31,   September 30,    June 30,       March 31,
                                           2004          2004          2004          2004           2004           2004
                                       -------------   ----------   ----------   -------------    ----------    ----------
<S>                                    <C>             <C>          <C>          <C>              <C>           <C>
Net revenues:
  Discount revenue                     $       2,535   $    2,529   $    2,368
  Lending:
    Finance charge revenue                       714          697          668   $         573    $      489    $      539
    Interest expense                             152          136          127             108            61            83
                                       -------------   ----------   ----------   -------------    ----------    ----------
      Net finance charge revenue                 562          561          541             465           428           456
  Net card fees                                  474          472          472
  Travel commissions and fees                    426          468          417
  Other commissions and fees                     563          551          510              53            50            53
  Travelers Cheque investment income              96           95           93
  Securitization income, net                     295          282          230            (295)         (282)         (230)
  Other revenues                                 411          420          419
                                       -------------   ----------   ----------   -------------    ----------    ----------
        Total net revenues                     5,362        5,378        5,050             223           196           279
                                       -------------   ----------   ----------   -------------    ----------    ----------
Expenses:
  Marketing, promotion, rewards
      and cardmember services                  1,280        1,225        1,023              (6)           (6)           (4)
  Provision for losses and claims:
    Charge card                                  206          189          198
    Lending                                      233          314          287             232           205           287
    Other                                         84           33           29
                                       -------------   ----------   ----------   -------------    ----------    ----------
      Total                                      523          536          514             232           205           287
  Charge card interest expense                   174          175          168
  Human resources                              1,074        1,081        1,065
  Other operating expenses:
    Professional services                        525          488          469
    Occupancy and equipment                      313          313          308
    Communications                               112          114          121
    Other                                        314          367          409              (3)           (3)           (4)
                                       -------------   ----------   ----------   -------------    ----------    ----------
      Total                                    1,264        1,282        1,307              (3)           (3)           (4)
                                       -------------   ----------   ----------   -------------    ----------    ----------
        Total expenses                         4,315        4,299        4,077   $         223    $      196    $      279
                                       -------------   ----------   ----------   -------------    ----------    ----------
Pretax income                                  1,047        1,079          973
Income tax provision                             321          347          308
                                       -------------   ----------   ----------
Net income                             $         726   $      732   $      665
                                       =============   ==========   ==========

<Caption>
                                                      Managed Basis
                                       ---------------------------------------
                                       September 30,    June 30,     March 31,
                                           2004           2004         2004
                                       -------------   ----------   ----------
<S>                                    <C>             <C>          <C>
Net revenues:
  Discount revenue
  Lending:
    Finance charge revenue             $       1,287   $    1,186   $    1,207
    Interest expense                             260          197          210
                                       -------------   ----------   ----------
      Net finance charge revenue               1,027          989          997
  Net card fees
  Travel commissions and fees
  Other commissions and fees                     616          601          563
  Travelers Cheque investment income
  Securitization income, net                       -            -            -
  Other revenues
                                       -------------   ----------   ----------
        Total net revenues                     5,585        5,574        5,329
                                       -------------   ----------   ----------
Expenses:
  Marketing, promotion, rewards
      and cardmember services                  1,274        1,219        1,019
  Provision for losses and claims:
    Charge card
    Lending                                      465          519          574
    Other
                                       -------------   ----------   ----------
      Total                                      755          741          801
  Charge card interest expense
  Human resources
  Other operating expenses:
    Professional services
    Occupancy and equipment
    Communications
    Other                                        311          364          405
                                       -------------   ----------   ----------
      Total                                    1,261        1,279        1,303
                                       -------------   ----------   ----------
        Total expenses                 $       4,538   $    4,495   $    4,356
                                       -------------   ----------   ----------
Pretax income
Income tax provision
Net income
</Table>

Securitization income, net represents the non-credit provision components of the
net gains and charges from securitization activities, the amortization and
related impairment charges, if any, of the related interest-only strip, excess
spread related to securitized loans, net finance charge revenue on retained
interests in securitized loans and servicing income, net of related discounts or
fees. Management views any net gains from securitizations as discretionary
benefits to be used for card acquisition expenses, which are reflected in both
marketing, promotion, rewards and cardmember services expenses and other
operating expenses. Consequently, the managed Selected Financial Information
above for the quarters ended September 30, 2004, June 30, 2004 and March 31,
2004 assumes that gains from new issuances and charges from the amortization and
maturities of outstanding lending securitization transactions of $9 million, $9
million and $8 million, respectively, are offset by higher marketing, promotion,
rewards and cardmember services expenses of $6 million, $6 million and $4
million, respectively, and other operating expenses of $3 million, $3 million
and $4 million, respectively. Accordingly, the incremental expenses, as well as
the impact of this net activity, have been eliminated.

                                     -11-
<Page>

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

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                      Quarters Ended                         Years Ended
                                                       December 31,                          December 31,
                                                   --------------------    Percentage    --------------------    Percentage
                                                     2004        2003      Inc/(Dec)       2004        2003      Inc/(Dec)
                                                   --------    --------    ----------    --------    --------    ----------
<S>                                                <C>         <C>               <C>     <C>         <C>               <C>
Total cards-in-force (millions) (A):
  United States                                        39.9        36.4           9.5%       39.9        36.4           9.5%
  Outside the United States                            25.5        24.1           5.9        25.5        24.1           5.9
                                                   --------    --------                  --------    --------
      Total                                            65.4        60.5           8.1        65.4        60.5           8.1
                                                   ========    ========                  ========    ========
Basic cards-in-force (millions):
  United States                                        30.6        27.7          10.4%       30.6        27.7          10.4%
  Outside the United States                            21.0        19.9           5.4        21.0        19.9           5.4
                                                   --------    --------                  --------    --------
      Total                                            51.6        47.6           8.4        51.6        47.6           8.4
                                                   ========    ========                  ========    ========
Card billed business:
  United States                                    $   83.4    $   72.3          15.3%   $  304.8    $  262.1          16.3%
  Outside the United States                            32.1        26.2          22.9       111.3        90.1          23.6
                                                   --------    --------                  --------    --------
      Total                                        $  115.5    $   98.5          17.3    $  416.1    $  352.2          18.1
                                                   ========    ========                  ========    ========

Average discount rate (A)                              2.54%       2.56%                     2.56%       2.59%
Average basic cardmember spending (dollars) (A)    $  2,589    $  2,314          11.9%   $  9,460    $  8,367          13.1%
Average fee per card  - managed (dollars) (A)      $     35    $     35             -%   $     34    $     35          (2.9)%
Travel sales                                       $    5.3    $    4.7          14.3%   $   19.9    $   16.0          24.9%
  Travel commissions and fees/sales (B)                 9.1%        9.5%                      9.0%        9.4%
Travelers Cheque and prepaid products:
  Sales                                            $    4.9    $    4.7           5.3%   $   19.9    $   19.2           3.5%
  Average outstanding                              $    7.0    $    6.6           4.9%   $    7.0    $    6.6           4.7%
  Average investments                              $    7.6    $    7.1           6.7%   $    7.5    $    7.1           5.7%
  Investment yield                                      5.4%        5.5%                      5.4%        5.4%
  Tax equivalent yield                                  8.3%        8.4%                      8.4%        8.4%
Total debt                                         $   45.4    $   38.4          18.1%   $   45.4    $   38.4          18.1%
Shareholder's equity                               $    8.8    $    7.9          11.2%   $    8.8    $    7.9          11.2%
Return on average total shareholder's equity (C)       33.4%       31.3%                     33.4%       31.3%
Return on average total assets (D)                      3.5%        3.4%                      3.5%        3.4%
</Table>

(A) Cards-in-force include proprietary cards and cards issued under network
    partnership agreements both within and outside the United States. Average
    discount rate, average basic cardmember spending and average fee per card
    are computed from proprietary card activities only.

(B) Computed from information provided herein.

(C) Computed on a trailing 12-month basis using total shareholder's equity as
    included in the Consolidated Financial Statements prepared in accordance
    with GAAP.

(D) Computed on a trailing 12-month basis using total assets as included in
    the Consolidated Financial Statements prepared in accordance with GAAP.

                                     -12-
<Page>

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

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                              Quarters Ended                           Years Ended
                                               December 31,                            December 31,
                                           ---------------------     Percentage     ---------------------     Percentage
                                             2004         2003       Inc/(Dec)        2004         2003       Inc/(Dec)
                                           --------     --------     ----------     --------     --------     ----------
<S>                                        <C>          <C>               <C>       <C>          <C>               <C>
Worldwide charge card receivables:
  Total receivables                        $   31.1     $   28.4            9.4%    $   31.1     $   28.4            9.4%
  90 days past due as a % of total              1.8%         1.9%                        1.8%         1.9%
  Loss reserves (millions)                 $    806     $    916          (12.0)%   $    806     $    916          (12.0)%
    % of receivables                            2.6%         3.2%                        2.6%         3.2%
    % of 90 days past due                       146%         171%                        146%         171%
  Net loss ratio as a % of charge volume       0.25%        0.27%                       0.26%        0.28%

Worldwide lending - owned basis:
  Total loans                              $   26.9     $   25.8            4.1%    $   26.9     $   25.8            4.1%
  Past due loans as a % of total:
    30-89 days                                  1.5%         1.6%                        1.5%         1.6%
    90+ days                                    0.9%         1.1%                        0.9%         1.1%
  Loss reserves (millions):
    Beginning balance                      $  1,008     $    938            7.5%    $    998     $  1,030           (3.1)%
      Provision                                 272          304          (10.4)       1,016        1,121           (9.4)
      Net charge-offs                          (254)        (275)           7.9       (1,040)      (1,148)           9.5
      Other                                     (54)          31             #            (2)          (5)         (41.4)
                                           --------     --------                    --------     --------
    Ending balance                         $    972     $    998           (2.6)    $    972     $    998           (2.6)
                                           ========     ========                    ========     ========
    % of loans                                  3.6%         3.9%                        3.6%         3.9%
    % of past due                               151%         146%                        151%         145%
  Average loans                            $   26.2     $   23.8            9.8%    $   25.9     $   22.6           14.5%
  Net write-off rate                            3.9%         4.6%                        4.0%         5.1%
  Net interest yield                            9.3%         9.6%                        9.3%         9.8%

Worldwide lending - managed basis:
  Total loans                              $   47.2     $   45.3            4.0%    $   47.2     $   45.3            4.0%
  Past due loans as a % of total:
    30-89 days                                  1.5%         1.6%                        1.5%         1.6%
    90+ days                                    0.9%         1.1%                        0.9%         1.1%
  Loss reserves (millions):
    Beginning balance                      $  1,537     $  1,519            1.2%    $  1,541     $  1,529            0.8%
      Provision                                 463          511           (9.4)       1,931        2,188          (11.8)
      Net charge-offs                          (471)        (520)           9.5       (1,957)      (2,171)           9.9
      Other                                     (54)          31             #           (40)          (5)            #
                                           --------     --------                    --------     --------
    Ending balance                         $  1,475     $  1,541           (4.3)    $  1,475     $  1,541           (4.3)
                                           ========     ========                    ========     ========
    % of loans                                  3.1%         3.4%                        3.1%         3.4%
    % of past due                               129%         127%                        129%         127%
  Average loans                            $   46.5     $   43.3            7.2%    $   45.4     $   41.6            9.2%
  Net write-off rate                            4.1%         4.8%                        4.3%         5.2%
  Net interest yield                            8.5%         8.7%                        8.6%         9.1%
</Table>

# - Denotes a variance of more than 100%.

                                     -13-
<Page>

(Preliminary)
                            TRAVEL RELATED SERVICES
                             STATEMENTS OF INCOME
                                  (Unaudited)
(Millions)

<Table>
<Caption>
                                                                      Quarters Ended
                                       -----------------------------------------------------------------------------
                                       December 31,    September 30,     June 30,        March 31,     December 31,
                                           2004             2004           2004             2004           2003
                                       -------------   -------------   -------------   -------------   -------------
<S>                                    <C>             <C>             <C>             <C>             <C>
Net revenues:
  Discount revenue                     $       2,817   $       2,535   $       2,529   $       2,368   $       2,432
  Lending:
    Finance charge revenue                       716             714             697             668             654
    Interest expense                             156             152             136             127             123
                                       -------------   -------------   -------------   -------------   -------------
      Net finance charge revenue                 560             562             561             541             531
  Net card fees                                  491             474             472             472             467
  Travel commissions and fees                    484             426             468             417             445
  Other commissions and fees                     606             563             551             510             515
  Travelers Cheque investment income              94              96              95              93              93
  Securitization income, net                     325             295             282             230             293
  Other                                          411             411             420             419             435
                                       -------------   -------------   -------------   -------------   -------------
        Total net revenues                     5,788           5,362           5,378           5,050           5,211
                                       -------------   -------------   -------------   -------------   -------------
Expenses:
  Marketing, promotion, rewards
    and cardmember services                    1,416           1,280           1,225           1,023           1,141
  Provision for losses and claims:
    Charge card                                  240             206             189             198             227
    Lending                                      296             233             314             287             330
    Other                                         30              84              33              29              28
                                       -------------   -------------   -------------   -------------   -------------
      Total                                      566             523             536             514             585
  Charge card interest expense                   196             174             175             168             187
  Human resources                              1,169           1,074           1,081           1,065           1,003
  Other operating expenses:
    Professional services                        619             525             488             469             567
    Occupancy and equipment                      366             313             313             308             371
    Communications                               118             112             114             121             116
    Other                                        320             314             367             409             357
                                       -------------   -------------   -------------   -------------   -------------
      Total                                    1,423           1,264           1,282           1,307           1,411
                                       -------------   -------------   -------------   -------------   -------------
        Total expenses                         4,770           4,315           4,299           4,077           4,327
                                       -------------   -------------   -------------   -------------   -------------
Pretax income                                  1,018           1,047           1,079             973             884
Income tax provision                             289             321             347             308             278
                                       -------------   -------------   -------------   -------------   -------------
Net income                             $         729   $         726   $         732   $         665   $         606
                                       =============   =============   =============   =============   =============
</Table>

Note: Fourth quarter 2004 results reflect aggregate restructuring charges of
      $64 million pretax ($42 million after-tax) for initiatives executed
      during 2004, of which $46 million was recorded in human resources and
      $18 million within other operating expenses. In addition, other
      operating expenses include a $117 million net gain recorded in the
      fourth quarter on the sale of AEBF's leasing product line.

                                     -14-
<Page>

(Preliminary)
                            TRAVEL RELATED SERVICES
                      SELECTED MANAGED BASIS INFORMATION
                                  (Unaudited)

(Millions)

<Table>
<Caption>
                                                                   Quarters Ended
                                    -----------------------------------------------------------------------------
                                    December 31,    September 30,     June 30,        March 31,     December 31,
                                        2004             2004           2004             2004           2003
                                    -------------   -------------   -------------   -------------   -------------
<S>                                 <C>             <C>             <C>             <C>             <C>
Lending finance charge revenue      $       1,337   $       1,287   $       1,186   $       1,207   $       1,186
Lending interest expense                      288             260             197             210             207
Other commissions and fees                    660             616             601             563             568
Marketing, promotion, rewards
  and cardmember services                   1,416           1,274           1,219           1,019           1,141
Lending provision                             514             465             519             574             538
Other operating expenses                      320             311             364             405             357
</Table>

Note: See prior page for comparable GAAP measures.

                                     -15-
<Page>

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

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                        Quarters Ended
                                       ---------------------------------------------------------------------------------
                                       December 31,     September 30,      June 30,         March 31,      December 31,
                                           2004              2004            2004             2004             2003
                                       -------------    -------------    -------------    -------------    -------------
<S>                                    <C>              <C>              <C>              <C>              <C>
Total cards-in-force (millions) (A):
  United States                                 39.9             38.0             37.5             37.0             36.4
  Outside the United States                     25.5             25.3             25.0             24.6             24.1
                                       -------------    -------------    -------------    -------------    -------------
      Total                                     65.4             63.3             62.5             61.6             60.5
                                       =============    =============    =============    =============    =============
Basic cards-in-force (millions):
  United States                                 30.6             28.9             28.5             28.1             27.7
  Outside the United States                     21.0             20.8             20.8             20.4             19.9
                                       -------------    -------------    -------------    -------------    -------------
      Total                                     51.6             49.7             49.3             48.5             47.6
                                       =============    =============    =============    =============    =============
Card billed business:
  United States                        $        83.4    $        75.6    $        75.7    $        70.1    $        72.3
  Outside the United States                     32.1             27.2             26.7             25.3             26.2
                                       -------------    -------------    -------------    -------------    -------------
      Total                            $       115.5    $       102.8    $       102.4    $        95.4    $        98.5
                                       =============    =============    =============    =============    =============

Average discount rate (A)                       2.54%            2.57%            2.56%            2.59%            2.56%
Average basic cardmember spending
  (dollars) (A)                        $       2,589    $       2,330    $       2,339    $       2,202    $       2,314
Average fee per card - managed
  (dollars) (A)                        $          35    $          34    $          34    $          35    $          35
Travel sales                           $         5.3    $         4.6    $         5.2    $         4.8    $         4.7
  Travel commissions and
    fees/sales (B)                               9.1%             9.2%             9.0%             8.7%             9.5%
Travelers Cheque and prepaid
  products:
  Sales                                $         4.9    $         5.8    $         4.8    $         4.4    $         4.7
  Average outstanding                  $         7.0    $         7.1    $         6.9    $         6.8    $         6.6
  Average investments                  $         7.6    $         7.6    $         7.3    $         7.3    $         7.1
  Investment yield                               5.4%             5.4%             5.5%             5.4%             5.5%
  Tax equivalent yield                           8.3%             8.3%             8.5%             8.3%             8.4%
Total debt                             $        45.4    $        39.1    $        38.8    $        38.7    $        38.4
Shareholder's equity                   $         8.8    $         9.0    $         8.6    $         8.1    $         7.9
Return on average total
  shareholder's equity (C)                      33.4%            32.7%            32.1%            31.7%            31.3%
Return on average total assets (D)               3.5%             3.5%             3.4%             3.4%             3.4%
</Table>

(A)   Cards-in-force include proprietary cards and cards issued under network
      partnership agreements both within and outside the United States.
      Average discount rate, average basic cardmember spending and average fee
      per card are computed from proprietary card activities only.

(B)   Computed from information provided herein.

(C)   Computed on a trailing 12-month basis using total shareholder's equity
      as included in the Consolidated Financial Statements prepared in
      accordance with GAAP.

(D)   Computed on a trailing 12-month basis using total assets as included in
      the Consolidated Financial Statements prepared in accordance with GAAP.

                                     -16-
<Page>

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

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                      Quarters Ended
                                       ---------------------------------------------------------------------------------
                                       December 31,     September 30,      June 30,         March 31,      December 31,
                                           2004              2004            2004              2004            2003
                                       -------------    -------------    -------------    -------------    -------------
<S>                                    <C>              <C>              <C>              <C>              <C>
Worldwide charge card receivables:
  Total receivables                    $        31.1    $        28.6    $        28.4    $        27.9    $        28.4
  90 days past due as a % of total               1.8%             1.8%             1.9%             2.0%             1.9%
  Loss reserves (millions)             $         806    $         847    $         864    $         896    $         916
    % of receivables                             2.6%             3.0%             3.0%             3.2%             3.2%
    % of 90 days past due                        146%             160%             163%             164%             171%
  Net loss ratio as a % of charge
    volume                                      0.25%            0.26%            0.25%            0.26%            0.27%

Worldwide lending - owned basis:
  Total loans                          $        26.9    $        25.2    $        26.4    $        24.5    $        25.8
  Past due loans as a % of total:
    30-89 days                                   1.5%             1.6%             1.5%             1.7%             1.6%
    90+ days                                     0.9%             0.9%             1.0%             1.1%             1.1%
  Loss reserves (millions):
    Beginning balance                  $       1,008    $       1,030    $         994    $         998    $         938
      Provision                                  272              205              282              257              304
      Net charge-offs                           (254)            (255)            (267)            (264)            (275)
      Other                                      (54)              28               21                3               31
                                       -------------    -------------    -------------    -------------    -------------
    Ending balance                     $         972    $       1,008    $       1,030    $         994    $         998
                                       =============    =============    =============    =============    =============
    % of loans                                   3.6%             4.0%             3.9%             4.1%             3.9%
    % of past due                                151%             159%             154%             145%             146%
  Average loans                        $        26.2    $        26.2    $        25.9    $        25.1    $        23.8
  Net write-off rate                             3.9%             3.9%             4.1%             4.2%             4.6%
  Net interest yield                             9.3%             9.3%             9.4%             9.4%             9.6%

Worldwide lending - managed basis:
  Total loans                          $        47.2    $        45.6    $        45.1    $        44.8    $        45.3
  Past due loans as a % of total:
    30-89 days                                   1.5%             1.6%             1.5%             1.7%             1.6%
    90+ days                                     0.9%             0.9%             1.0%             1.0%             1.1%
  Loss reserves (millions):
    Beginning balance                  $       1,537    $       1,535    $       1,570    $       1,541    $       1,519
      Provision                                  463              437              486              545              511
      Net charge-offs                           (471)            (463)            (504)            (519)            (520)
      Other                                      (54)              28              (17)               3               31
                                       -------------    -------------    -------------    -------------    -------------
    Ending balance                     $       1,475    $       1,537    $       1,535    $       1,570    $       1,541
                                       =============    =============    =============    =============    =============
    % of loans                                   3.1%             3.4%             3.4%             3.5%             3.4%
    % of past due                                129%             132%             136%             128%             127%
  Average loans                        $        46.5    $        45.3    $        44.9    $        44.8    $        43.3
  Net write-off rate                             4.1%             4.1%             4.5%             4.6%             4.8%
  Net interest yield                             8.5%             8.6%             8.6%             8.7%             8.7%
</Table>

                                     -17-
<Page>

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

<Table>
<Caption>
                                                               Quarters Ended
                                                                 December 31,
                                                             -------------------       Percentage
                                                               2004       2003          Inc/(Dec)
                                                             --------   --------       ----------
<S>                                                          <C>        <C>                 <C>
Revenues:
  Net investment income                                      $    635   $    599              6.0%
  Investment management and service fees                          463        415             11.4
  Distribution fees                                               327        314              3.9
  Variable life insurance and variable annuity charges*           113        107              7.0
  Life and health insurance premiums                               91         94             (2.5)
  Property-casualty insurance premiums                            114        100             15.4
  Other                                                           113         81             36.5
                                                             --------   --------
    Total revenues                                              1,856      1,710              8.5
                                                             --------   --------

Expenses:
  Provision for losses and benefits:
    Interest credited on annuities
      and universal life-type contracts                           286        306             (6.7)
    Benefits on insurance and annuities                           124        113             10.2
    Interest credited on investment certificates                   86         55             54.0
    Losses and expenses on property-casualty insurance             89         81             11.4
                                                             --------   --------
      Total                                                       585        555              5.5
  Human resources - Field                                         339        295             14.6
  Human resources - Non-field                                     253        206             22.4
  Amortization of deferred acquisition costs                      116        102             13.6
  Other                                                           315        304              3.8
                                                             --------   --------
    Total expenses                                              1,608      1,462              9.9
                                                             --------   --------
Pretax income before accounting change                            248        248              0.5
Income tax provision                                               30         53            (42.8)
                                                             --------   --------
Income before accounting change                                   218        195             12.1
Cumulative effect of accounting change, net of tax                  -        (13)(B)           #
                                                             --------   --------
Net income                                                   $    218   $    182             20.2
                                                             ========   ========

<Caption>
                                                                 Years Ended
                                                                December 31,
                                                             -------------------           Percentage
                                                               2004           2003          Inc/(Dec)
                                                             --------       --------       ----------
<S>                                                          <C>            <C>                <C>
Revenues:
  Net investment income                                      $  2,375       $  2,279             4.2%
  Investment management and service fees                        1,732          1,336            29.6
  Distribution fees                                             1,298          1,092            18.8
  Variable life insurance and variable annuity charges*           444            424             4.9
  Life and health insurance premiums                              356            351             1.5
  Property-casualty insurance premiums                            422            326            29.6
  Other                                                           408            334            21.8
                                                             --------       --------
    Total revenues                                              7,035          6,142            14.5
                                                             --------       --------

Expenses:
  Provision for losses and benefits:
    Interest credited on annuities
      and universal life-type contracts                         1,128          1,224            (7.9)
    Benefits on insurance and annuities                           459            440             4.6
    Interest credited on investment certificates                  224            201            11.4
    Losses and expenses on property-casualty insurance            327            257            27.3
                                                             --------       --------
      Total                                                     2,138          2,122             0.8
  Human resources - Field                                       1,332          1,067            24.8
  Human resources - Non-field                                     919            729            26.2
  Amortization of deferred acquisition costs                      405            476           (14.9)
  Other                                                         1,155            889            29.8
                                                             --------       --------
    Total expenses                                              5,949          5,283            12.6
                                                             --------       --------
Pretax income before accounting change                          1,086            859            26.5
Income tax provision                                              280            177            58.8
                                                             --------       --------
Income before accounting change                                   806            682            18.1
Cumulative effect of accounting change, net of tax                (71)(A)        (13)(B)          #
                                                             --------       --------
Net income                                                   $    735       $    669             9.9
                                                             ========       ========
</Table>

Certain prior period amounts have been reclassified to conform to current year
presentation.

# - Denotes a variance of more than 100%.

* - Variable life insurance and variable annuity charges include variable
    universal life and universal life insurance charges.

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

(B)  Reflects a $20 million non-cash pretax charge ($13 million after-tax)
     related to the December 31, 2003 adoption of FIN 46, as revised.

                                     -18-
<Page>

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

(Millions, except percentages and where indicated)

<Table>
<Caption>
                                                                  Quarters Ended
                                                                   December 31,
                                                             ------------------------     Percentage
                                                                2004          2003         Inc/(Dec)
                                                             ----------    ----------     ----------
<S>                                                          <C>           <C>                  <C>
Investments (billions) (A)                                   $     44.9    $     42.1            6.7%
Client contract reserves (billions)                          $     44.3    $     41.2            7.6%
Shareholder's equity (billions)                              $      6.4    $      7.1           (8.9)%
Return on average total shareholder's equity
  before accounting change (B)                                     11.8%         10.4%
Return on average total shareholder's equity (B)                   10.8%         10.2%

Life insurance inforce (billions)                            $    145.8    $    131.4           10.9%
Assets owned, managed or
  administered (billions):
    Assets managed for institutions                          $    139.3    $    116.4 (C)       19.7%
    Assets owned, managed or administered
      for individuals:
      Owned assets:
        Separate account assets                                    35.9          30.8           16.5
        Other owned assets                                         61.2          53.8 (D)       13.9
                                                             ----------    ----------
          Total owned assets                                       97.1          84.6           14.9
      Managed assets                                              117.5         110.2            6.6
      Administered assets                                          58.8          54.1            8.6
                                                             ----------    ----------
        Total                                                $    412.7    $    365.3           13.0
                                                             ==========    ==========

Market appreciation (depreciation) and foreign
 currency translation during the period:
  Owned assets:
    Separate account assets                                  $    2,920    $    2,752            6.1%
    Other owned assets                                       $       56    $     (275)            #
  Managed assets                                             $   17,956    $   15,767           13.9

Cash sales:
  Mutual funds                                               $    8,680    $    9,096           (4.6)%
  Annuities                                                       1,835         1,683            9.0
  Investment certificates                                         2,586         1,520           70.1
  Life and other insurance products                                 229           212            7.9
  Institutional                                                   1,763           939           87.8
  Other                                                           1,078           978           10.2
                                                             ----------    ----------
Total cash sales                                             $   16,171    $   14,428           12.1
                                                             ==========    ==========

Number of financial advisors                                     12,344        12,121            1.8%
Fees from financial plans and advice services                $     38.2    $     20.6           85.5%
Percentage of total sales from financial plans
  and advice services                                              75.9%         74.6%

<Caption>
                                                                   Years Ended
                                                                   December 31,
                                                             ------------------------     Percentage
                                                                2004          2003         Inc/(Dec)
                                                             ----------    ----------     ----------
<S>                                                          <C>           <C>                 <C>
Investments (billions) (A)                                   $     44.9    $     42.1            6.7%
Client contract reserves (billions)                          $     44.3    $     41.2            7.6%
Shareholder's equity (billions)                              $      6.4    $      7.1           (8.9)%
Return on average total shareholder's equity
  before accounting change (B)                                     11.8%         10.4%
Return on average total shareholder's equity (B)                   10.8%         10.2%

Life insurance inforce (billions)                            $    145.8    $    131.4           10.9%
Assets owned, managed or
  administered (billions):
    Assets managed for institutions                          $    139.3    $    116.4 (C)       19.7%
    Assets owned, managed or administered
      for individuals:
      Owned assets:
        Separate account assets                                    35.9          30.8           16.5
        Other owned assets                                         61.2          53.8 (D)       13.9
                                                             ----------    ----------
          Total owned assets                                       97.1          84.6           14.9
      Managed assets                                              117.5         110.2            6.6
      Administered assets                                          58.8          54.1            8.6
                                                             ----------    ----------
        Total                                                $    412.7    $    365.3           13.0
                                                             ==========    ==========
Market appreciation (depreciation) and foreign
 currency translation during the period:
  Owned assets:
    Separate account assets                                  $    3,198    $    5,514          (42.0)%
    Other owned assets                                       $       45    $     (244)            #
  Managed assets                                             $   23,447    $   26,213          (10.6)

Cash sales:
  Mutual funds                                               $   35,025    $   30,407           15.2%
  Annuities                                                       7,820         8,335           (6.2)
  Investment certificates                                         7,141         5,736           24.5
  Life and other insurance products                                 907           760           19.4
  Institutional                                                   7,683         3,033             #
  Other                                                           4,477         5,787          (22.6)
                                                             ----------    ----------
Total cash sales                                             $   63,053    $   54,058           16.6
                                                             ==========    ==========

Number of financial advisors                                     12,344        12,121            1.8%
Fees from financial plans and advice services                $    138.8    $    120.7           15.0%
Percentage of total sales from financial plans
  and advice services                                              75.3%         74.8%
</Table>

# - Denotes a variance of more than 100%.

(A)  Excludes cash, derivatives, short-term and other investments.

(B)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(C)  As a result of AEFA's December 31, 2003 adoption of FIN 46, as revised,
     managed assets decreased by $3.8 billion.

(D)  As a result of AEFA's December 31, 2003 adoption of FIN 46, as revised,
     $0.5 billion of additional assets were consolidated.

                                     -19-
<Page>

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

<Table>
<Caption>
                                                                               Quarters Ended
                                                ---------------------------------------------------------------------------
                                                December 31,   September 30,     June 30,       March 31,      December 31,
                                                    2004           2004            2004           2004             2003
                                                ------------   -------------   ------------   ------------     ------------
<S>                                             <C>            <C>             <C>            <C>              <C>
Revenues:
  Net investment income                         $        635   $         581   $        603   $        556     $        599
  Investment management and service fees                 463             429            411            429              415
  Distribution fees                                      327             304            315            352              314
  Variable life insurance and
    variable annuity charges*                            113             111            111            109              107
  Life and health insurance premiums                      91              91             88             86               94
  Property-casualty insurance premiums                   114             109            103             96              100
  Other                                                  113              89            106            100               81
                                                ------------   -------------   ------------   ------------     ------------
    Total revenues                                     1,856           1,714          1,737          1,728            1,710
                                                ------------   -------------   ------------   ------------     ------------

Expenses:
  Provision for losses and benefits:
    Interest credited on annuities
      and universal life-type contracts                  286             279            280            283              306
    Benefits on insurance and annuities                  124             112            124             99              113
    Interest credited on investment
      certificates                                        86              45             48             45               55
    Losses and expenses on
      property-casualty insurance                         89              84             80             74               81
                                                ------------   -------------   ------------   ------------     ------------
      Total                                              585             520            532            501              555
  Human resources - Field                                339             312            333            348              295
  Human resources - Non-field                            253             235            210            221              206
  Amortization of deferred acquisition
    costs                                                116             100            125             64              102
  Other                                                  315             290            273            277              304
                                                ------------   -------------   ------------   ------------     ------------
    Total expenses                                     1,608           1,457          1,473          1,411            1,462
                                                ------------   -------------   ------------   ------------     ------------
Pretax income before accounting change                   248             257            264            317              248
Income tax provision                                      30              71             90             89               53
                                                ------------   -------------   ------------   ------------     ------------
Income before accounting change                          218             186            174            228              195
Cumulative effect of accounting change,
  net of tax                                               -               -              -            (71)(A)          (13)(B)
                                                ------------   -------------   ------------   ------------     ------------
Net income                                      $        218   $         186   $        174   $        157     $        182
                                                ============   =============   ============   ============     ============
</Table>

Certain prior period amounts have been reclassified to conform to current year
presentation.

* - Variable life insurance and variable annuity charges include variable
    universal life and universal life insurance charges.

(A)  Reflects a $109 million non-cash pretax charge ($71 million after-tax)
     related to the January 1, 2004 adoption of SOP 03-1.

(B)  Reflects a $20 million non-cash pretax charge ($13 million after-tax)
     related to the December 31, 2003 adoption of FIN 46, as revised.

                                     -20-
<Page>

(Preliminary)
                      AMERICAN EXPRESS FINANCIAL ADVISORS
                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)
(Millions, except percentages and where indicated)

<Table>
<Caption>
                                                                                   Quarters Ended
                                                  ----------------------------------------------------------------------------
                                                  December 31,    September 30,       June 30,       March 31,    December 31,
                                                      2004             2004             2004           2004           2003
                                                  ------------    -------------     -----------    ------------   ------------
<S>                                               <C>             <C>               <C>            <C>            <C>
Investments (billions) (A)                        $       44.9    $        43.1     $     41.8     $      43.4    $      42.1
Client contract reserves (billions)               $       44.3    $        42.9     $     41.9     $      41.6    $      41.2
Shareholder's equity (billions)                   $        6.4    $         6.9     $      6.3     $       7.4    $       7.1
Return on average total shareholder's equity
  before accounting change (B)                            11.8%            11.4%          11.7%           11.5%          10.4%
Return on average total shareholder's equity (B)          10.8%            10.1%          10.5%           10.2%          10.2%

Life insurance inforce (billions)                 $      145.8    $       142.5     $    139.1     $     135.0    $     131.4
Assets owned, managed or
  administered (billions):
    Assets managed for institutions               $      139.3    $       127.4     $    125.5     $     123.4    $     116.4 (C)
    Assets owned, managed or administered
      for individuals:
      Owned assets:
        Separate account assets                           35.9             32.4           32.9            32.4           30.8
        Other owned assets                                61.2             59.6           57.9            58.9           53.8 (D)
                                                  ------------    -------------     -----------    ------------   ------------
          Total owned assets                              97.1             92.0           90.8            91.3           84.6
      Managed assets                                     117.5            108.6          108.8           109.3          110.2
      Administered assets                                 58.8             55.3           55.3            54.4           54.1
                                                  ------------    -------------     -----------    ------------   ------------
        Total                                     $      412.7    $       383.3     $    380.4     $     378.4    $     365.3
                                                  ============    =============     ===========    ============   ============
Market appreciation (depreciation) and foreign
 currency translation during the period:
  Owned assets:
    Separate account assets                       $      2,920    $        (377)    $     (101)    $       756    $     2,752
    Other owned assets                            $         56    $         752     $   (1,476)    $       713    $      (275)
  Managed assets                                  $     17,956    $        (194)    $      232     $     5,453    $    15,767

Cash sales:
  Mutual funds                                    $      8,680    $       8,066     $    8,480     $     9,799    $     9,096
  Annuities                                              1,835            1,887          1,912           2,186          1,683
  Investment certificates                                2,586            1,786          1,445           1,324          1,520
  Life and other insurance products                        229              239            221             218            212
  Institutional                                          1,763            1,664          2,841           1,415            939
  Other                                                  1,078              991          1,116           1,292            978
                                                  ------------    -------------     ------------   ------------   ------------
Total cash sales                                  $     16,171    $      14,633     $   16,015     $    16,234    $    14,428
                                                  ============    =============     ============   ============   ============

Number of financial advisors                            12,344           12,071         11,943          12,070         12,121
Fees from financial plans and advice services     $       38.2    $        28.1     $     39.3     $      33.2    $      20.6
Percentage of total sales from financial plans
  and advice services                                     75.9%            75.4%          74.6%           75.3%          74.6%
</Table>

(A)  Excludes cash, derivatives, short-term and other investments.

(B)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(C)  As a result of AEFA's December 31, 2003 adoption of FIN 46, as revised,
     managed assets decreased by $3.8 billion.

(D)  As a result of AEFA's December 31, 2003 adoption of FIN 46, as revised,
     $0.5 billion of additional assets were consolidated.

                                     -21-
<Page>

(Preliminary)
                         AMERICAN EXPRESS BANK
                          STATEMENTS OF INCOME
                               (Unaudited)
(Millions)

<Table>
<Caption>
                                                   Quarters Ended                             Years Ended
                                                     December 31,                             December 31,
                                               -----------------------   Percentage    -----------------------    Percentage
                                                  2004         2003       Inc/(Dec)       2004         2003        Inc/(Dec)
                                               ----------   ----------   ----------    ----------   ----------    ----------
<S>                                            <C>          <C>               <C>      <C>          <C>                <C>
Net revenues:
  Interest income                              $      145   $      139          4.8%   $      542   $      575          (5.8)%
  Interest expense                                     67           57         16.2           227          226           0.1
                                               ----------   ----------                 ----------   ----------
    Net interest income                                78           82         (3.3)          315          349          (9.5)
  Commissions and fees                                 74           68          6.8           283          238          18.6
  Foreign exchange income and other revenues           55           55          0.5           227          214           6.0
                                               ----------   ----------                 ----------   ----------
    Total net revenues                                207          205          1.1           825          801           3.0
                                               ----------   ----------                 ----------   ----------

Expenses:
  Human resources                                      81           75          8.1           298          271          10.0
  Other operating expenses                             76           67         13.3           300          279           7.7
  Provision for losses                                  8           21        (59.8)           37          102         (63.9)
  Restructuring charges                                35            -           #             44           (2)           #
                                               ----------   ----------                 ----------   ----------
    Total expenses                                    200          163         23.0           679          650           4.4
                                               ----------   ----------                 ----------   ----------
Pretax income                                           7           42        (83.6)          146          151          (3.1)
Income tax provision                                    1           13        (93.3)           50           49           3.2
                                               ----------   ----------                 ----------   ----------
Net income                                     $        6   $       29        (79.1)   $       96   $      102          (6.1)
                                               ==========   ==========                 ==========   ==========
</Table>

Certain prior period amounts have been reclassified to conform to current year
presentation.

# - Denotes a variance of more than 100%.

                                     -22-
<Page>

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

(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                      Quarters Ended                              Years Ended
                                                        December 31,                              December 31,
                                                   --------------------      Percentage      ---------------------     Percentage
                                                     2004         2003        Inc/(Dec)        2004         2003       Inc/(Dec)
                                                   --------     --------     ----------      --------     --------     ----------
<S>                                                <C>          <C>                <C>       <C>          <C>               <C>
Total shareholder's equity (millions)              $    924     $    949           (2.6)%    $    924     $    949           (2.6)%
Return on average total shareholder's equity (A)       10.0%        10.8%                        10.0%        10.8%
Return on average total assets (B)                     0.70%        0.74%                        0.70%        0.74%
Total loans                                        $    6.9     $    6.5            6.2%     $    6.9     $    6.5            6.2%

Non-Consumer Financial Services (CFS) loans:
Total Non-CFS loans (C)                            $    5.5     $    5.1            7.9%     $    5.5     $    5.1            7.9%

Non-CFS loan loss reserves (millions):
  Beginning balance                                $     57     $     61           (6.3)%    $     59     $     92          (37.1)%
    Provision                                             1            -             #              5            9          (39.0)
    Net charge-offs                                       -           (2)            #             (9)         (39)         (75.4)
    Other                                                 -            -              -             3           (3)            #
                                                   --------     --------                     --------     --------
  Ending balance                                   $     58     $     59           (0.8)     $     58     $     59           (0.8)
                                                   ========     ========                     ========     ========
    % of Non-CFS loans                                  1.0%         1.1%                         1.0%         1.1%
  Total non-performing loans (millions)            $     37     $     78          (52.3)%    $     37     $     78          (52.3)%

CFS loans:
Total CFS Loans (D)                                $    1.4     $    1.4           (0.4)%    $    1.4     $    1.4           (0.4)%
  Past due as a % of total CFS loans:
    30-89 days past due                                 3.8%         5.6%                         3.8%         5.6%
    90+ days past due                                   0.7%         1.0%                         0.7%         1.0%

CFS loan loss reserves (millions):
  Beginning balance                                $     39     $     56          (30.7)%    $     54     $     59           (7.3)%
    Provision                                             7           21          (65.4)           33           93          (64.0)
    Net charge-offs                                     (10)         (23)         (55.7)          (50)         (99)         (47.9)
    Other                                                 1            -             #              -            1             #
                                                   --------     --------                     --------     --------
  Ending balance                                   $     37     $     54          (31.3)     $     37     $     54          (31.3)
                                                   ========     ========                     ========     ========
    % of CFS loans                                      2.7%         4.0%                         2.7%         4.0%
    % of 30 days past due CFS loans                      61%          60%                          61%          60%
  Net write-off rate                                    3.0%         6.6%                         3.8%         6.8%

Deposits                                           $   10.4     $   10.8           (3.1)%    $   10.4     $   10.8           (3.1)%
Assets owned, managed (E) / administered:
  Owned                                            $   13.4     $   14.2           (6.0)     $   13.4     $   14.2           (6.0)
  Managed (E) / administered                           19.2         16.2           18.9          19.2         16.2           18.9
                                                   --------     --------                     --------     --------
    Total                                          $   32.6     $   30.4            7.1      $   32.6     $   30.4            7.1
                                                   ========     ========                     ========     ========

Assets of non-consolidated joint ventures (F)      $    1.8     $    1.7            4.0%     $    1.8     $    1.7            4.0%
Risk-based capital ratios (G):
  Tier 1                                               11.0%        11.4%                        11.0%        11.4%
  Total                                                10.1%        11.3%                        10.1%        11.3%
Leverage ratio                                          5.8%         5.5%                         5.8%         5.5%
</Table>

# - Denotes a variance of more than 100%.

(A)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(B)  Computed on a trailing 12-month basis using total assets as included in
     the Consolidated Financial Statements prepared in accordance with GAAP.

(C)  Loans other than certain smaller-balance consumer loans (including loans
     impaired under Statement of Financial Accounting Standards No. 114,
     "Accounting by Creditors for Impairment of a Loan"), are placed on
     non-performing status when payments of principal or interest are 90 days
     past due or if, in management's opinion, the borrower is unlikely to meet
     its contractual obligations. When loans are placed on non-performing
     status, all previously accrued but unpaid interest is reversed against
     current interest income. Cash receipts of interest on non-performing
     loans are recognized either as interest income or as a reduction of
     principal, based on management's judgment as to the ultimate
     collectibility of principal. Generally, a non-performing loan may be
     returned to performing status when all contractual amounts due are
     reasonably assured of repayment within a reasonable period and the
     borrower shows sustained repayment performance, in accordance with the
     contractual terms of the loan or when the loan has become well-secured
     and is in the process of collection.

(D)  For smaller-balance consumer loans included in CFS loans, management
     establishes reserves it believes to be adequate to absorb credit losses
     inherent in the portfolio. Generally, these loans are written off in full
     when an impairment is determined or when the loan becomes 120 or 180 days
     past due, depending on loan type.

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

(F)  Excludes American Express International Deposit Company's total assets
     (which are 100% consolidated at AEFA) for each period presented (and
     which totaled $5.9 billion at December 31, 2004).

(G)  Based on legal entity financial information.

                                     -23-
<Page>

(Preliminary)
                             AMERICAN EXPRESS BANK
                             STATEMENTS OF INCOME
                                  (Unaudited)
(Millions)

<Table>
<Caption>
                                                                              Quarters Ended
                                               -----------------------------------------------------------------------------
                                               December 31,    September 30,     June 30,        March 31,     December 31,
                                                   2004             2004           2004             2004           2003
                                               -------------   -------------   -------------   -------------   -------------
<S>                                            <C>             <C>             <C>             <C>             <C>
Net revenues:
  Interest income                              $         145   $         132   $         131   $         134   $         139
  Interest expense                                        67              56              51              53              57
                                               -------------   -------------   -------------   -------------   -------------
    Net interest income                                   78              76              80              81              82
  Commissions and fees                                    74              69              70              70              68
  Foreign exchange income and other revenues              55              60              53              59              55
                                               -------------   -------------   -------------   -------------   -------------
    Total net revenues                                   207             205             203             210             205
                                               -------------   -------------   -------------   -------------   -------------

Expenses:
  Human resources                                         81              71              71              75              75
  Other operating expenses                                76              74              78              72              67
  Provision for losses                                     8              11              12               6              21
  Restructuring charges                                   35               -               -               9               -
                                               -------------   -------------   -------------   -------------   -------------
    Total expenses                                       200             156             161             162             163
                                               -------------   -------------   -------------   -------------   -------------
Pretax income                                              7              49              42              48              42
Income tax provision                                       1              17              14              18              13
                                               -------------   -------------   -------------   -------------   -------------
Net income                                     $           6   $          32   $          28   $          30   $          29
                                               =============   =============   =============   =============   =============
</Table>

Certain prior period amounts have been reclassified to conform to current year
presentation.

                                     -24-
<Page>

(Preliminary)
                             AMERICAN EXPRESS BANK
                       SELECTED STATISTICAL INFORMATION
                                  (Unaudited)
(Billions, except percentages and where indicated)

<Table>
<Caption>
                                                                              Quarters Ended
                                           -------------------------------------------------------------------------------------
                                           December 31,      September 30,       June 30,          March 31,       December 31,
                                               2004              2004              2004              2004              2003
                                           -------------     -------------     -------------     -------------     -------------
<S>                                        <C>               <C>               <C>               <C>               <C>
Total shareholder's equity (millions)      $         924     $         931     $         953     $         992     $         949
Return on average total shareholder's
  equity (A)                                        10.0%             12.4%             11.9%             11.9%             10.8%
Return on average total assets (B)                  0.70%             0.85%             0.81%             0.81%             0.74%
Total loans                                $         6.9     $         6.4     $         6.5     $         6.4     $         6.5

Non-Consumer Financial Services
  (CFS) loans:
Total Non-CFS loans (C)                    $         5.5     $         5.1     $         5.2     $         5.1     $         5.1

Non-CFS loan loss reserves (millions):
  Beginning balance                        $          57     $          62     $          61     $          59     $          61
    Provision                                          1                 2                 2                 -                 -
    Net charge-offs                                    -                (6)               (5)                2                (2)
    Other                                              -                (1)                4                 -                 -
                                           -------------     -------------     -------------     -------------     -------------
  Ending balance                           $          58     $          57     $          62     $          61     $          59
                                           =============     =============     =============     =============     =============
    % of Non-CFS loans                               1.0%              1.1%              1.2%              1.2%              1.1%
  Total non-performing loans (millions)    $          37     $          32     $          50     $          69     $          78

CFS loans:
Total CFS Loans (D)                        $         1.4     $         1.3     $         1.3     $         1.3     $         1.4
  Past due as a % of total CFS loans:
    30-89 days past due                              3.8%              4.3%              4.6%              4.6%              5.6%
    90+ days past due                                0.7%              0.8%              0.9%              0.9%              1.0%

CFS loan loss reserves (millions):
  Beginning balance                        $          39     $          41     $          45     $          54     $          56
    Provision                                          7                 9                10                 7                21
    Net charge-offs                                  (10)              (11)              (13)              (16)              (23)
    Other                                              1                 -                (1)                -                 -
                                           -------------     -------------     -------------     -------------     -------------
  Ending balance                           $          37     $          39     $          41     $          45     $          54
                                           =============     =============     =============     =============     =============
    % of CFS loans                                   2.7%              2.9%              3.1%              3.4%              4.0%
    % of 30 days past due CFS loans                   61%               57%               57%               62%               60%
  Net write-off rate                                 3.0%              3.6%              4.0%              4.9%              6.6%

Deposits                                   $        10.4     $        10.5     $        11.2     $        10.7     $        10.8
Assets owned, managed (E) / administered:
  Owned                                    $        13.4     $        13.4     $        14.1     $        13.8     $        14.2
  Managed (E) / administered                        19.2              17.6              16.9              16.8              16.2
                                           -------------     -------------     -------------     -------------     -------------
    Total                                  $        32.6     $        31.0     $        31.0     $        30.6     $        30.4
                                           =============     =============     =============     =============     =============

Assets of non-consolidated joint
  ventures (F)                             $         1.8     $         1.7     $         1.7     $         1.8     $         1.7
Risk-based capital ratios (G):
  Tier 1                                            11.0%             10.8%             12.0%             11.7%             11.4%
  Total                                             10.1%             10.6%             11.8%             11.5%             11.3%
Leverage ratio                                       5.8%              5.7%              5.9%              5.7%              5.5%
</Table>

(A)  Computed on a trailing 12-month basis using total shareholder's equity as
     included in the Consolidated Financial Statements prepared in accordance
     with GAAP.

(B)  Computed on a trailing 12-month basis using total assets as included in
     the Consolidated Financial Statements prepared in accordance with GAAP.

(C)  Loans other than certain smaller-balance consumer loans (including loans
     impaired under Statement of Financial Accounting Standards No. 114,
     "Accounting by Creditors for Impairment of a Loan"), are placed on
     non-performing status when payments of principal or interest are 90 days
     past due or if, in management's opinion, the borrower is unlikely to meet
     its contractual obligations. When loans are placed on non-performing
     status, all previously accrued but unpaid interest is reversed against
     current interest income. Cash receipts of interest on non-performing
     loans are recognized either as interest income or as a reduction of
     principal, based on management's judgment as to the ultimate
     collectibility of principal. Generally, a non-performing loan may be
     returned to performing status when all contractual amounts due are
     reasonably assured of repayment within a reasonable period and the
     borrower shows sustained repayment performance, in accordance with the
     contractual terms of the loan or when the loan has become well-secured
     and is in the process of collection.

(D)  For smaller-balance consumer loans included in CFS loans, management
     establishes reserves it believes to be adequate to absorb credit losses
     inherent in the portfolio. Generally, these loans are written off in full
     when an impairment is determined or when the loan becomes 120 or 180 days
     past due, depending on loan type.

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

(F)  Excludes American Express International Deposit Company's total assets
     (which are 100% consolidated at AEFA) for each period presented (and
     which totaled $5.9 billion at December 31, 2004).

(G)  Based on legal entity financial information.

                                     -25-

                                                                  EXHIBIT 99.3


                      [LOGO OF AMERICAN EXPRESS COMPANY]






                                     2004
                           Fourth Quarter/Full Year
                             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") Fourth Quarter/Full Year 2004 Earnings Release.


     ---------------------------------------------------------------------------
     This summary 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 27 herein and in the
     Company's 2003 10-K Annual Report, and other reports, on file with the
     Securities and Exchange Commission.
     ---------------------------------------------------------------------------


AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 HIGHLIGHTS o Fourth quarter diluted EPS on a net income basis of $0.71 increased 20% versus $0.59 last year. Fourth quarter diluted EPS of $0.71 increased 18% over last year's diluted EPS of $0.60 before the accounting change. Total revenues rose 10%. For the trailing 12 months, ROE was 22%. - 4Q '04 included: -- A $117MM ($76MM after-tax) net gain in connection with the sale of the equipment leasing product line managed within TRS' small business financing unit (see discussion below); and, -- $102MM ($66MM after-tax) in aggregate restructuring charges (see discussion below). - 4Q '03 included: -- The adoption of FASB Interpretation No. 46, "Consolidation of Variable Interest Entities", as revised ("FIN 46"), resulting in a below-the-line, non-cash charge of $13MM net of tax, or $0.01 per share. o Compared with the fourth quarter of 2003: - Worldwide billed business increased 17% on continued strong consumer, small business and Corporate Services spending growth and over 40% growth in global network partner volumes. A comparatively weaker U.S. dollar benefited the reported growth rate by 2%. -- Worldwide average spending per proprietary basic card in force increased 12% versus last year (up 10% adjusted for foreign exchange translation); - TRS' worldwide lending balances of $26.9B on an owned basis increased 4%; on a managed basis, worldwide lending balances of $47.2B were also up 4%. Excluding the sale of TRS' equipment leasing product line, managed loans increased 8% (see discussion of "managed basis" on page 7); - Card credit quality continued to be well-controlled and reserve coverage ratios remained strong; - Worldwide cards in force of 65.4MM increased 8%, up 4.9MM from last year and 2.1MM during 4Q '04, on continued solid proprietary card growth and particularly strong network card growth; and, - AEFA assets owned, managed and administered of $413B were up 13% versus last year reflecting market appreciation, favorable foreign currency translation impacts and asset inflows. o Additional items of note included: - Marketing, promotion, rewards and cardmember services costs increased 26% versus 4Q '03. Rewards costs increased, reflecting a higher redemption rate, strong volume growth and the continued increase in cardmember loyalty program participation. Marketing costs rose primarily due to costs related to the Company's new global "My Life, My Card(SM)" advertising campaign. Improved metric performance during the quarter reflected the ongoing benefits of the increased spending over the last two years. - The Company's reengineering initiatives delivered in excess of the $1B of benefits targeted for this year, including significant carry-over benefits from certain initiatives begun in prior periods. During the fourth quarter, reengineering initiatives continued to provide substantial year-over-year expense comparison benefits. In addition, revenue-related reengineering activities are driving a significant portion of the total benefits, representing more than 25% of the benefits delivered in 4Q `04. - As previously disclosed, the Company decided to expense stock options beginning in 1Q '03 and use restricted stock awards in place of stock options for middle management. As a result, the 4Q '04 impacts of incremental annual option grant expense, increased levels of restricted stock awards and other related compensation changes contributed to the 17% increase in human resources expense. -- Compared with last year, the total employee count of 77,500 decreased 1%; compared with last quarter, the total employee count was down 600 employees or approximately 1%. - On December 1, 2004, the Company completed the sale of American Express Business Finance Corporation, the equipment leasing product line within TRS' small business financing unit. The sale of this portfolio, of approximately $1.5B of loans as of 9/30/04, generated a net gain during the quarter of $117MM ($76MM after-tax). -1-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 HIGHLIGHTS (Cont'd) - 4Q '04 also included aggregate charges of $102MM ($66MM after-tax) recorded in connection with various restructuring activities undertaken within certain of AXP's business units and staff groups. The charge reflects expenses incurred in connection with several initiatives relating principally to the restructuring of TRS' Business Travel operations, the decision to sell certain of the operations of AEB in Bangladesh, Egypt, Luxembourg and Pakistan, and the relocation of certain functions within the company's finance operations. Once completed, these initiatives are expected to result in the elimination of approximately 2,000 positions company-wide and to provide annual pre-tax benefits to the Company in excess of $75MM. The charge is reflected in the Company's segments as follows: $64MM in TRS, $3MM in AEFA and $35MM in AEB. o On November 5, pursuant to an agreement announced in January, MBNA became the first U.S. bank to issue credit cards accepted on the American Express network. This followed a Supreme Court decision in October to uphold lower court rulings that Visa and Mastercard association bylaws that prevented banks from issuing cards on rival networks, were illegal and must be abolished. o On November 15, American Express filed a lawsuit against Visa, Mastercard and eight major banks that are members of the two card associations seeking monetary damages for the business lost as a result of the illegal, anticompetitive practices of the card associations, which had effectively locked the Company out of the bank-issued card business in the United States. o As previously announced, at a meeting held on November 22, 2004, the Audit Committee of the Board of Directors approved the future engagement of PricewaterhouseCoopers LLP as the Company's independent registered public accountants ("auditors") for the fiscal year ending December 31, 2005 and dismissed the firm of Ernst & Young LLP ("E&Y") as auditors for the 2005 fiscal year. This action was the result of the Audit Committee's request for proposals from auditing firms for the Company's 2005 audit. As disclosed in the 2004 proxy, this request for proposals was made in accordance with the Audit Committee's charter, which requires a detailed review of the Company's outside audit firm at least every ten years. The Audit Committee's decision to dismiss E&Y was made after a robust proposal process that included three of the four major international accounting firms, including E&Y. All of the proposals received by the Company were of high quality. E&Y continues as the Company's auditors for the year ended December 31, 2004. o On December 16, the Company entered into an agreement to sell and lease back seven real properties located in the U.S. to designated affiliates of The Inland Real Estate Group, Inc., enabling the Company to monetize the value of the properties and use the proceeds for reinvestment in its business. o During the quarter, American Express continued to invest in growth opportunities through expanded products and services. - At TRS we: -- Announced a network agreement with Citibank to issue American Express branded credit cards in the U.S. beginning in late 2005; -- Launched the first American Express branded credit card in China, denominated in both local Chinese currency and U.S. dollars, through our network relationship with the Industrial and Commercial Bank of China; -- Supported the entry of Credomatic, a leader in Central America's financial services industry, into the Mexican marketplace with the launch of American Express branded credit cards in Guadalajara, Mexico, which included a co-branded card with Farmacias Guadalajara, one of Mexico's largest drug and supermarket retailers; -- Announced plans to roll-out, in all 5,300 of CVS' U.S. retail locations, point of sale terminals enabled for ExpressPay, a contact-less payment device which operates by radio-frequency transmission to make everyday purchases quick and easy; -- Partnered with Rite-Aid to offer American Express gift cards at their 3,400 stores nationwide; -- Launched a redesigned Business Travel website, further enhancing AXP's focus on delivering savings, service and control across 100 percent of a customers' travel expenditures globally; -2-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 HIGHLIGHTS (Cont'd) -- Announced a strategic agreement with Travelocity to use a private label version of Travelocity's online booking engine for flights, hotels, car rentals, and last minute travel products for American Express' U.S. online consumer travel site; -- Launched a new global brand advertising campaign, introducing the theme "My Life, My Card(SM)"; -- Introduced a new groundbreaking online shopping experience with the "My Wishlist" promotion in which American Express cardmembers vied for the opportunity to purchase premium gift items at significantly discounted prices (e.g. a BMW Roadster for $5,000) via an online, auction-style website; and, -- Welcomed JetBlue Airways into our Membership Rewards(R) Program. - At AEFA we: -- Announced the introduction of the American Express Individual (k)(R), a 401(k)-based plan designed to provide self-employed professionals with added flexibility, investment choices, and higher contribution limits to help them save more effectively for retirement; and, -- Introduced the Charitable Giving Benefit, a new feature of the American Express(R) Estate Series variable universal and universal life product lines, allowing policyholders, upon death of the insured, to give the equivalent of 1% of the policy's death benefit, up to a maximum of $100,000, to an accredited charitable organization of their choice at no added cost and without decreasing the amount of the insurance death benefit paid out to beneficiaries. -3-

<TABLE> <CAPTION> AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW CONSOLIDATED (Preliminary) Condensed Statements of Income (Unaudited, GAAP basis) Quarters Ended Percentage (millions) December 31, Inc/(Dec) ------------------------------- ------------- 2004 2003 ---- ---- <S> <C> <C> <C> Revenues: Discount revenue $2,817 $2,432 16% Net investment income 826 786 5 Management and distribution fees 788 728 8 Cardmember lending net finance charge revenue 560 531 6 Net card fees 491 467 5 Travel commissions and fees 484 445 9 Other commissions and fees 616 531 16 Insurance and annuity revenues 394 366 7 Securitization income, net 325 293 11 Other 470 459 3 ------ ------ Total revenues 7,771 7,038 10 ------ ------ Expenses: Human resources 1,971 1,678 17 Marketing, promotion, rewards and cardmember services 1,472 1,166 26 Provision for losses and benefits 1,162 1,164 - Interest 238 205 16 Other 1,745 1,735 - ------ ------ Total expenses 6,588 5,948 11 ------ ------ Pre-tax income before accounting change 1,183 1,090 9 Income tax provision 287 314 (9) ------ ------ Income before accounting change 896 776 16 Cumulative effect of accounting change, net of tax - (13) # ------ ------ Net income $896 $763 17 ====== ====== EPS: Income before accounting change - Basic $0.72 $0.61 18 ====== ===== Net Income - Basic $0.72 $0.60 20 ====== ===== Income before accounting change - Diluted $0.71 $0.60 18 ====== ===== Net Income - Diluted $0.71 $0.59 20 ====== ===== </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. # Denotes variance greater than 100%. o Net Income: Increased 17% to a record quarterly level of $896MM. Income before last year's accounting change increased 16%. - 4Q '04 included: -- A $117MM ($76MM after-tax) net gain at TRS in connection with the sale of American Express Business Finance Corporation, the equipment leasing product line managed within TRS' small business financing unit; and, -- $102MM ($66MM after-tax) in aggregate restructuring charges (see discussion on page 2). - 4Q '03 included: -- The adoption of FIN 46, resulting in a below-the-line, non-cash charge of $13MM net of tax, or $0.01 per share. o Consolidated Revenues: Revenues increased 10% due to higher discount revenues, greater other commissions and fees, greater management and distribution fees, higher net investment income, greater travel commissions and fees, higher net securitization income, higher cardmember lending net finance charge revenue, larger insurance and annuity revenues and greater net card fees. Consolidated revenue growth versus last year reflected 11% growth at TRS, 9% growth at AEFA, and 1% growth at AEB. Translation of foreign currency revenues contributed approximately 2% of the 10% revenue growth rate. -4-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW CONSOLIDATED (Cont'd) o Consolidated Expenses: Expenses were up 11%, reflecting higher marketing, promotion, rewards and cardmember services expenses, greater human resources costs and increased interest expense. Provision for losses and benefits and other operating expenses were virtually flat. Consolidated expenses reflected increases versus last year of 10% at TRS, 10% at AEFA, and 23% at AEB. Translation of foreign currency expenses contributed approximately 2% of the 11% expense growth rate. o Pre-Tax Margin: Was 15.2% in 4Q '04 compared with 17.4% in 3Q '04 and 15.5% in 4Q '03. o Effective Tax Rate: Was 24% in 4Q '04 versus 30% in 3Q '04 and 29% in 4Q '03. The decrease in the consolidated tax rate for the quarter was primarily due to the impact of continuing benefits from the changes in international funding strategy at TRS in 2004, favorable tax audit experience at both TRS and AEB, and a favorable adjustment to the current taxes payable account at AEFA. At TRS, the changes in international funding strategy will continue to positively affect our effective tax rate going forward, and be offset in part by higher related funding costs. o Share Repurchases: During 4Q '04, 15.0MM shares were repurchased. Since the inception of repurchase programs in September 1994, 495.5MM shares have been acquired under cumulative Board authorizations to repurchase up to 570MM shares, including purchases made under agreements with third parties. <TABLE> <CAPTION> Millions of Shares ------------------------------------------------ <S> <C> <C> <C> - AVERAGE SHARES: 4Q `04 3Q `04 4Q `03 ------ ------ ------ Basic 1,242 1,251 1,277 ====== ====== ====== Diluted 1,270 1,275 1,299 ====== ====== ====== - ACTUAL SHARE ACTIVITY: Shares outstanding - beginning of period 1,255 1,267 1,285 Repurchase of common shares (15) (15) (3) Employee benefit plans, compensation and other 9* 3 2 ------ ------ ------ Shares outstanding - end of period 1,249 1,255 1,284 ====== ====== ====== </TABLE> * Includes 9MM net shares issued through employee stock option exercises and related activity. CORPORATE AND OTHER o The net expense was $57MM in 4Q '04 compared with $65MM in 3Q '04 and $54MM in 4Q '03. 4Q '04 continues to reflect corporate investment spending on compliance and technology projects. -5-

<TABLE> <CAPTION> AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW TRAVEL RELATED SERVICES (Preliminary) STATEMENTS OF INCOME (Unaudited, GAAP basis) Quarters Ended Percentage (millions) December 31, Inc/(Dec) --------------------------------- ------------- 2004 2003 ---- ---- <S> <C> <C> <C> Net revenues: Discount revenue $2,817 $2,432 16% Lending: Finance charge revenue 716 654 9 Interest expense 156 123 26 ------ ------ Net finance charge revenue 560 531 6 Net card fees 491 467 5 Travel commissions and fees 484 445 9 Other commissions and fees 606 515 18 TC investment income 94 93 1 Securitization income, net 325 293 11 Other revenues 411 435 (6) ------ ------ Total net revenues 5,788 5,211 11 ------ ------ Expenses: Marketing, promotion, rewards and cardmember services 1,416 1,141 24 Provision for losses and claims: Charge card 240 227 5 Lending 296 330 (10) Other 30 28 6 ------ ------ Total 566 585 (3) Charge card interest expense 196 187 5 Human resources 1,169 1,003 17 Other operating expenses: Professional services 619 567 9 Occupancy and equipment 366 371 (1) Communications 118 116 2 Other 320 357 (10) ------ ------ Total 1,423 1,411 1 ------ ------ Total expenses 4,770 4,327 10 ------ ------ Pre-tax income 1,018 884 15 Income tax provision 289 278 4 ------ ------ Net income $ 729 $ 606 20 ====== ====== </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. o Net Income: Increased 20%. - 4Q '04 included: -- A $117MM ($76MM after-tax) net gain in connection with the sale of the equipment leasing product line within the small business financing unit; and, -- $64MM ($42MM after-tax) in aggregate charges relating principally to restructuring activities within Business Travel operations. o Pre-tax Margin: Was 17.6% in 4Q '04 versus 19.5% in 3Q '04 and 17.0% in 4Q '03. o Effective Tax Rate: Was 28% in 4Q '04 compared with 31% in 3Q '04 and 4Q '03. The lower rate was driven primarily by continuing benefits arising from the changes in international funding strategy in 2004, as well as the favorable impact of certain federal audit adjustments. o GAAP Basis Income Statement Items: - Securitization Income, Net: Increased 11%. Securitization income, net represents the non-credit provision components of the net gains and charges from securitization activities, the amortization and related impairment charges, if any, of the related interest-only strip, excess spread related to securitized loans, net finance charge revenue on retained interests in securitized loans, and servicing income, net of related discounts or fees. -- During 4Q '04, there was no incremental securitization activity. The average balance of cardmember lending securitizations was $20.3B in 4Q '04 versus $19.4B in 4Q '03 resulting in an overall increase in net securitization income. - Net Finance Charge Revenue: Increased 6%, reflecting 10% growth in the average balance of the owned lending portfolio for the period and a lower yield. - The Lending Provision: Decreased 10% reflecting strong credit quality in the owned lending portfolio. - The above GAAP basis items relating to net finance charge revenue and lending provision reflect the owned portfolio only. "Owned basis" credit quality statistics are available in the Fourth Quarter/Full Year 2004 Earnings Release on the TRS Selected Statistical Information pages. -6-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW TRAVEL RELATED SERVICES (Cont'd) Supplemental Information - Managed Basis: The following supplemental table includes information on both a GAAP basis and a "managed" basis. The managed basis presentation assumes there have been no securitization transactions, i.e., all securitized Cardmember loans and related income effects are reflected in the Company's balance sheet and income statement, respectively. The Company presents TRS 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. Asset securitization is just one of several ways for the Company to fund Cardmember loans. Use of a managed basis presentation, including non-securitized and securitized Cardmember loans, presents a more accurate picture of the key dynamics of the Cardmember lending business, avoiding distortions due to the mix of funding sources at any particular point in time. For example, irrespective of the mix, it is important for management and investors to see metrics, such as changes in delinquencies and write-off rates, for the entire Cardmember lending portfolio because it is 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 and changes in market share, which are all significant metrics in evaluating the Company's performance and which can only be properly assessed when all non-securitized and securitized Cardmember loans are viewed together on a managed basis. Management views any net gains from securitizations as discretionary benefits to be used for card acquisition expenses, which are reflected in both marketing, promotion, rewards and cardmember services and other operating expenses. Consequently, the managed basis presentation assumes that gains from new issuances and charges from the amortization and maturities of outstanding transactions are offset by impacts to marketing, promotion, rewards and cardmember services expenses. Accordingly, the incremental benefits, as well as the impact of the net lending securitization activity, are eliminated. As there was no 4Q '04 or 4Q '03 securitization activity, no such adjustments are reflected. <TABLE> <CAPTION> The following table compares and reconciles the GAAP basis TRS income statements to the managed basis information, where different. Effect of Securitizations (unaudited) -------------------------------------------------------- (preliminary, millions) GAAP Basis (unaudited) Securitization Effect Managed Basis ------------------------------------------------------------------------ ---------------------- --------------------------------- Percentage Percentage Quarters Ended December 31, 2004 2003 Inc/(Dec) 2004 2003 2004 2003 Inc/(Dec) ---------------------------------- ---------------------- --------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> Net revenues: Discount revenue $2,817 $2,432 16% Lending: Finance charge revenue 716 654 9 $621 $532 $1,337 $1,186 13% Interest expense 156 123 26 132 84 288 207 38 ---------------------------------- ---------------------- --------------------------------- Net finance charge revenue 560 531 6 489 448 1,049 979 7 Net card fees 491 467 5 Travel commissions and fees 484 445 9 Other commissions and fees 606 515 18 54 53 660 568 16 TC investment income 94 93 1 Securitization income, net 325 293 11 (325) (293) - - - Other revenues 411 435 (6) ---------------------------------- ---------------------- --------------------------------- Total net revenues 5,788 5,211 11 218 208 6,006 5,419 11 ---------------------------------- ---------------------- --------------------------------- Expenses: Marketing, promotion, rewards and cardmember services 1,416 1,141 24 Provision for losses and claims: Charge card 240 227 5 Lending 296 330 (10) 218 208 514 538 (4) Other 30 28 6 ---------------------------------- ---------------------- --------------------------------- Total 566 585 (3) 218 208 784 793 (1) Charge card interest expense 196 187 5 Human resources 1,169 1,003 17 Other operating expenses: Professional Services 619 567 9 Occupancy and equipment 366 371 (1) Communications 118 116 2 Other 320 357 (10) ------------------------------------------------------------------------ Total 1,423 1,411 1 ------------------------------------------------------------------------ ---------------------- --------------------------------- Total expenses 4,770 4,327 10 $218 $208 $4,988 $4,535 10 ------------------------------------------------------------------------ Pre-tax income 1,018 884 15 Income tax provision 289 278 4 ------------------------------------------------------------------------ Net income $729 $606 20 </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. -7-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW TRAVEL RELATED SERVICES (Cont'd) The following discussion addresses results on a managed basis. o Managed basis net revenue rose 11% from higher discount revenue, greater travel and other commissions and fees, higher net finance charge revenue, and greater card fees. o The 10% higher managed basis expenses reflect substantially higher marketing, promotion, rewards and cardmember services costs, greater human resources expenses, increased professional services expenses and higher interest expenses, partially offset by lower other operating expenses and reduced provisions for losses. o Discount Revenue: A 17% increase in billed business, partially offset by a lower discount rate, yielded a 16% increase in discount revenue. - The average discount rate was 2.54% in 4Q '04 versus 2.57% in 3Q '04 and 2.56% in 4Q `03. The decrease versus last quarter and last year primarily reflects changes in the mix of spending between various merchant segments due to the cumulative impact of stronger than average growth in the lower rate retail and other "everyday spend" merchant categories (e.g., supermarkets, discounters, etc). -- We believe the AXP value proposition is strong. However, as indicated in prior quarters, continued changes in the mix of business, volume-related pricing discounts and selective repricing initiatives will probably continue to result in some erosion of the average rate over time. <TABLE> <CAPTION> Quarters Ended Percentage December 31, Inc/(Dec) ----------------------------------- -------------- 2004 2003 ------ ------ <S> <C> <C> <C> Card billed business (billions): United States $83.4 $72.3 15% Outside the United States 32.1 26.2 23 ------ ------ Total $115.5 $98.5 17 ====== ===== Cards in force (millions): United States 39.9 36.4 9 Outside the United States 25.5 24.1 6 ------ ------ Total 65.4 60.5 8 ====== ====== Basic cards in force (millions): United States 30.6 27.7 10 Outside the United States 21.0 19.9 5 ------ ------ Total 51.6 47.6 8 ====== ====== Spending per basic card in force (dollars): (a) United States $2,860 $2,633 9 Outside the United States $2,003 $1,668 20 Total $2,589 $2,314 12 </TABLE> (a) Proprietary card activity only. - Billed Business: The 17% increase in worldwide billed business reflected a 12% increase in spending per proprietary basic card and 8% growth in cards in force. -- U.S. billed business was up 15% reflecting growth of 15% within our consumer card business, a 20% increase in small business spending and 10% improvement in Corporate Services volumes. - Spending per proprietary basic card in force increased 9%. -- U.S. non-T&E-related volume categories (which represented approximately 70% of 4Q `04 U.S. billed business) grew 18%, while T&E volumes rose 9%. -- U.S. airline-related volume, which represented approximately 9% of total U.S. volumes during the quarter, rose 3% as transaction volume growth was suppressed by a lower average airline charge. -- Excluding the impact of foreign exchange translation: - Worldwide billed business and spending per proprietary basic card in force increased 15% and 10%, respectively. - Total billed business outside the U.S. was up 15% reflecting double-digit growth across all regions. - Within our proprietary business, billed business outside the U.S. reflected 12% growth in consumer and small business spending and a 15% increase in Corporate Services volumes. - Spending per proprietary basic card in force outside the U.S. rose 12%. -- Global Network Services volumes rose in excess of 40% on continued strong growth in non-U.S. partner volume and the addition of MBNA-related volumes in the U.S. -- Worldwide airline volumes, which represented approximately 11% of total volumes during the quarter, increased 11% on 14% growth in transaction volume, partially offset by a decrease in the average airline charge of 3%. -8-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW TRAVEL RELATED SERVICES (Cont'd) o Discount Revenue (cont'd): - Cards in force: Rose 8% worldwide versus last year on continued strong card acquisitions, an improved average customer retention level within our proprietary issuing business, and strong growth in network cards, particularly in the U.S. -- U.S. cards in force rose 1.9MM during the quarter, including the new MBNA portfolio. -- Outside the United States, 200K cards in force were added during the quarter. o Net Card Fees: Rose 5% due to higher cards in force. The average annual fee per proprietary card in force was $35 in 4Q '04 and 4Q '03 versus $34 in 3Q `04. o Net Finance Charge Revenue: Increased 7% as 7% growth in average worldwide lending balances was partially offset by a decline in the portfolio yield. - The yield on the worldwide portfolio was 8.5% in 4Q '04 versus 8.6% in 3Q '04 and 8.7% in 4Q '03. The decrease versus last year and last quarter reflects higher funding costs and lower revolve rates. o Travel Commissions and Fees: Increased 9% on a 14% increase in travel sales, which was partially offset by lower transaction fees as a greater proportion of bookings were made on-line. o Other Commissions and Fees: Increased 16% on greater volume-related foreign exchange conversion fees, higher card-related fees and assessments, and larger network partner-related fees. o TC Investment Income: Increased 1% on higher average investments and a lower investment yield. TC sales increased 5% versus last year. o Other Revenues: Decreased 6% as higher publishing revenues, larger insurance premiums and greater merchant-related revenues were more than offset by lower interest income on investment and liquidity pools held within card funding vehicles, as well as lower ATM revenues resulting from the 3Q `04 sale of the remaining portion of the ATM business. o Marketing, Promotion, Rewards and Cardmember Services Expenses: Increased 24%, reflecting both greater rewards costs and higher marketing and promotion expenses. The growth in rewards costs is attributable to a higher redemption rate, strong volume growth and the continued increase in cardmember loyalty program participation. The increase in marketing and promotion expenses is primarily due to the Company's new global brand advertising campaign and our continued focus on business-building initiatives. o Charge Card Interest Expense: Rose 5% due to greater average receivable balances and a higher effective cost of funds. o Human Resources Expense: Increased 17% due to $46MM of severance-related restructuring costs, merit increases, greater management incentive expenses and larger employee benefit costs. - The employee count at 12/04 of 65,200 was down 600 versus 12/03 and down 500 versus 9/04. o Professional Services Expenses: Rose 9% primarily due to increased technology costs related to higher business and service-related volumes. o Other Operating Expenses: Decreased 10% as the $117MM net gain on the sale of the equipment leasing product line within the small business financing unit was partially offset by higher taxes other than income taxes and $18MM in restructuring costs. -9-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW TRAVEL RELATED SERVICES (Cont'd) o Credit Quality: - Overall credit quality continued to perform exceptionally well. - The provision for losses on charge card products increased 5%, as higher volumes were partially offset by a lower provision rate. - The lending provision for losses was down 4% versus last year, despite growth in loans outstanding, due to well-controlled credit. - Reserve coverage ratios, which are well in excess of 100% of past due balances, remained strong. - Worldwide Charge Card: * -- The net loss ratio declined versus last year and last quarter, and remained near historically low levels; the past due rate improved versus last year and was flat versus last quarter. <TABLE> <CAPTION> 12/04 9/04 12/03 ------------ ------------ ------------- <S> <C> <C> <C> Net loss ratio as a % of charge volume 0.25% 0.26% 0.27% 90 days past due as a % of receivables 1.8% 1.8% 1.9% </TABLE> -- Reserve coverage of past due accounts remained strong, despite a decline in the reserve balance due to the sustained improvement in credit quality. <TABLE> <CAPTION> 12/04 9/04 12/03 ------------ ------------ ------------- <S> <C> <C> <C> Total Receivables (B) $31.1 $28.6 $28.4 Reserves (MM) $806 $847 $916 % of receivables 2.6% 3.0% 3.2% % of 90 day past due accounts 146% 160% 171% </TABLE> - Worldwide Lending: ** -- The write-off rate improved versus last year and held steady versus last quarter. Past due rates declined versus both last quarter and last year. <TABLE> <CAPTION> 12/04 9/04 12/03 ------------ ------------ ------------- <S> <C> <C> <C> Net write-off rate 4.1% 4.1% 4.8% 30 days past due as a % of loans 2.4% 2.5% 2.7% </TABLE> -- Coverage of past due accounts was maintained at a high level despite a decline in the reserve balance. <TABLE> <CAPTION> 12/04 9/04 12/03 ------------ ------------ ------------- <S> <C> <C> <C> Total Loans (B) $47.2 $45.6 $45.3 Reserves (MM) $1,475 $1,537 $1,541 % of total loans 3.1% 3.4% 3.4% % of 30 day past due accounts 129% 132% 127% </TABLE> * There are no off-balance sheet Charge Card securitizations. Therefore, "Owned basis" and "Managed basis" credit quality statistics for the Charge Card portfolio are the same. ** As previously described, this information is presented on a "Managed basis". "Owned basis" credit quality statistics are available in the Fourth Quarter/Full Year 2004 Earnings Release on the TRS Selected Statistical Information pages. Credit trends are generally consistent under both reporting methods. -10-

<TABLE> <CAPTION> AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW AMERICAN EXPRESS FINANCIAL ADVISORS (Preliminary) Statements of Income (Unaudited, GAAP basis) (millions) Quarters Ended Percentage December 31, Inc/(Dec) ----------------------------- ------------- 2004 2003 ----- ----- <S> <C> <C> <C> Revenues: Net investment income $635 $599 6% Investment management and service fees 463 415 11 Distribution fees 327 314 4 Variable life insurance and variable annuity charges* 113 107 7 Life and health insurance premiums 91 94 (3) Property-casualty insurance premiums 114 100 15 Other 113 81 36 ----- ----- Total revenues 1,856 1,710 9 ----- ----- Expenses: Provision for losses and benefits: Interest credited on annuities and universal life-type contracts 286 306 (7) Benefits on insurance and annuities 124 113 10 Interest credited on investment certificates 86 55 54 Losses and expenses on property-casualty insurance 89 81 11 ----- ----- Total 585 555 6 Human resources - Field 339 295 15 Human resources - Non-Field 253 206 22 Amortization of deferred acquisition costs 116 102 14 Other operating expenses 315 304 4 ----- ----- Total expenses 1,608 1,462 10 ----- ----- Pre-tax income before accounting change 248 248 - Income tax provision 30 53 (43) ----- ----- Income before accounting change 218 195 12 Cumulative effect of accounting change, net of tax - (13) - ----- ----- Net income $218 $182 20 ===== ===== </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. * Includes variable universal life and universal life insurance charges. # Denotes variance greater than 100%. o Net Income: Increased 20%; 12% before last year's accounting change. Pre-tax income was flat. - 4Q '04 included: -- $8MM of net investment gains versus $5MM of net gains last year; and -- A substantially lower tax rate versus last year. o Revenues: Increased 9% due to: - Increased net investment income; - Higher investment management and services fees; - Increased distribution fees; - Greater property-casualty insurance premiums; - Greater variable life insurance and variable annuity charges; and, - Growth in other revenues, primarily driven by higher planning and advice services fees. o Pre-tax Margin: Was 13.4% in 4Q '04 compared with 15.0% in 3Q '04 and 14.5% in 4Q '03. o Effective Tax Rate: Was 12% in 4Q '04 versus 28% in 3Q '04 and 21% in 4Q '03. - The 4Q '04 effective tax rate was driven by a $33MM favorable adjustment to the current taxes payable account. - In 4Q '03, the effective tax rate reflected a $12MM reduction in tax expense resulting from adjustments related to the finalization of the 2002 tax return filed during 3Q '03 and the publication of favorable technical guidance in 3Q '03 related to the taxation of dividend income. -11-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW AMERICAN EXPRESS FINANCIAL ADVISORS (Cont'd) o Supplemental Information - Net Revenues: In the following table, the Company presents AEFA's aggregate revenues on a basis that is net of provisions for losses and benefits because the Company manages the AEFA business and evaluates its financial performance, where appropriate, in terms of the "spread" on its products. An important part of AEFA's business is margin-related, particularly the insurance, annuity and certificate businesses. One of the drivers for the AEFA business is the return on invested cash, primarily generated by sales of insurance, annuities and investment certificates, less provisions for losses and benefits on these products. These investments tend to be interest rate sensitive. Thus, GAAP revenues tend to be higher in periods of rising interest rates and lower in times of decreasing interest rates. The same relationship is true of provisions for losses and benefits, only it is more accentuated period-to-period because rates credited to customers' accounts generally reset at shorter intervals than the yield on underlying investments. The Company presents this portion of the AEFA business on a net basis to eliminate potentially less informative comparisons of period-to-period changes in revenue and provisions for losses and benefits in light of the impact of these changes in interest rates. <TABLE> <CAPTION> Quarters ended Percentage (millions) December 31, Inc/(Dec) ----------------------------- --------------- 2004 2003 ------ ------ <S> <C> <C> <C> Total GAAP Revenues $1,856 $1,710 9% Less: Total provision for losses and benefits 585 555 6 ------ ------ Total Net Revenues $1,271 $1,155 10 ====== ====== </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. - Spreads within the annuity products were up versus last year and last quarter. Insurance spreads were down versus last year, but up versus last quarter. Certificates spreads were down versus last year and last quarter. - On a net revenue basis, the pre-tax margin was 19.6% in 4Q '04 versus 21.5% in 3Q '04 and 21.4% in 4Q '03. <TABLE> o ASSETS OWNED, MANAGED AND ADMINISTERED: Percentage (billions) December 31, Inc/(Dec) ----------------------------- --------------- 2004 2003 ------ ------ <S> <C> <C> <C> Assets owned (excluding separate accounts) $61.2 $53.8 14% Separate account assets 35.9 30.8 17 Assets managed 256.8 226.6 13 Assets administered 58.8 54.1 9 ------ ------ Total $412.7 $365.3 13 ====== ====== </TABLE> o Asset Quality: - Overall, credit quality continued to improve as default rates have stabilized below long-term averages. - Non-performing assets relative to invested assets (excluding short-term cash positions and including the impact of FIN 46) were 0.02% and were more than 7x covered by reserves, including those related to the impairment of securities. - High-yield investments (excluding unrealized appreciation/depreciation and the impact of FIN 46) totaled $2.9B, or 7% of the total investment portfolio at 12/04, 9/04 and 12/03. -- Excluding unrealized appreciation/depreciation, but including the impact of FIN 46, high-yield investments totaled $3.1B, or 7% of the total investment portfolio at 12/04 and 9/04 versus 8% at 12/03. - The SFAS No. 115 related mark-to-market adjustment (including the impact of FIN 46 and reported in assets pre-tax) was appreciation of $0.8B at 12/04 versus $0.9B at 9/04 and 12/03. - As part of AEFA's decision to continue to improve its investment portfolio risk profile AEFA began to liquidate the last two remaining Structured Loan Trusts, which were consolidated upon adopting FIN 46. This resulted in a 4Q '04 charge of $4MM included in gross investment losses within net investment income. o Product Sales: - Total gross cash sales from all products were up 12% versus 4Q '03. Branded advisor-generated sales increased 8% on both a cash basis and on the internally used "gross dealer concession" (GDC) basis, a commonly used financial services industry measure of the sales production of the advisor channel. - Total mutual fund cash sales decreased 5% as proprietary sales declined, while non-proprietary sales rose versus last year. A significant portion of non-proprietary sales continued to occur in "wrap" accounts (which are included in assets managed). - Total annuity cash sales increased 9% as an increase in variable product sales was partially offset by a decrease in fixed product sales. -12-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW AMERICAN EXPRESS FINANCIAL ADVISORS (Cont'd) - Total certificate cash sales increased 70% due to higher sales of certificates sold to clients outside the U.S. through the joint venture between AEFA and AEB, and stronger advisor-sales levels, in part as a result of a marketing promotion for certificates. - Total cash sales of insurance products rose 8%, primarily reflecting higher property-casualty insurance sales, in part due to sales through Costco, and higher life insurance sales through the advisor channel. - Total institutional cash sales increased 88%, reflecting strong growth at Threadneedle, as well as relatively lower pension contributions during 4Q `03. - Total other cash sales increased 10% reflecting relatively lower 401(k) activity in 4Q '03, the effect of which was partially offset by lower limited partnership product sales in 4Q '04. - Advisor product sales (GDC basis) generated through financial planning and advice services were 76% of total sales in 4Q '04 versus 75% in both 3Q '04 and 4Q `03. o Net Investment Income: Increased 6% versus last year reflecting higher levels of invested assets. 4Q '04 included $8MM of net investment gains ($19MM of gross gains partially offset by $11MM of gross losses) versus $5MM of net gains in 4Q `03. - Average invested assets of $46.6B (including unrealized appreciation/depreciation and the impacts of FIN 46) rose 5% versus $44.5B in 4Q '03, reflecting the cumulative benefit of sales of the underlying fixed rate products over the past two years, partially offset by lower unrealized appreciation versus last year. - The average yield on invested assets (excluding realized and unrealized appreciation/depreciation and including the impacts of FIN 46) was 5.2% in 4Q '04 versus 5.3% in 4Q `03. o Investment Management and Service Fees: Increased 11% due to higher average assets under management, reflecting improved equity market valuations and net inflows. <TABLE> <CAPTION> - ASSETS MANAGED: Percentage (billions) December 31, Inc/(Dec) ------------------------------- --------------- 2004 2003 ------ ------ <S> <C> <C> <C> Assets managed for individuals $117.5 $110.2 7% Assets managed for institutions 139.3 116.4 20 Separate account assets 35.9 30.8 17 ------ ------ Total $292.7 $257.4 14 ====== ====== </TABLE> -- The increase in managed assets since 12/03 resulted from market appreciation and foreign currency translation of $26.6B and net inflows of $8.7B. -- The $24.3B increase in managed assets during 4Q `04 reflects net inflows of $3.4B and market appreciation and foreign currency translation of $20.9B. o Distribution Fees: Increased 4% on greater mutual fund fees, in particular wrap account fees, partially offset by lower limited partnership and brokerage-related fees. o Variable Life Insurance and Variable Annuity Charges: Increased 7% due to higher insurance in force. o Life and Health Insurance Premiums: Declined 3% due to decreases in long-term care policies in force resulting from our de-emphasizing this business, partially offset by increases in life and disability insurance policies in force. o Property-Casualty Insurance Premiums: Increased 15% due to higher policies in force. o Other Revenues: Were up 36% primarily due to growth in financial planning and advice services fees of $18MM. During 4Q '03, financial planning and advice services fees reflected the negative impact of a change in timing of fee recognition, which deferred revenues and a comparable amount of human resources expenses. The number of financial plans sold rose 15% compared to 4Q `03. -13-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW AMERICAN EXPRESS FINANCIAL ADVISORS (Cont'd) o Provisions for Losses and Benefits: - Interest Credited on Annuities and Universal Life-type Contracts: Decreased 7% due to lower interest crediting rates, partially offset by higher life insurance in force levels and annuity accumulation values. - Benefits on Insurance and Annuities: Increased 10% due to higher life and disability insurance in force levels and higher annuity levels, partially offset by lower long-term care in force levels. - Interest Credited on Investment Certificates: Rose 54% on higher average reserves and higher interest crediting rates. - Losses and Expenses on Property-Casualty Insurance: Grew 11% as a result of higher average policies in force. o Human Resources Expense - Field: Increased 15% reflecting increased production, higher assets per advisor and growth in the advisor force. - Total Advisor Force: Grew to 12,344 at 12/04, up 223 advisors or 2% versus 12/03 and up 273 advisors versus 9/04. -- Veteran advisor retention rates remain strong. -- Total production and advisor productivity were up versus last year. - The total number of clients was flat versus last year as we successfully focused on high value client acquisition activities and purged inactive accounts during 3Q `04. Client acquisitions rose 9% in the quarter and accounts per client were up 2%. Client retention was 94%. o Human Resources Expense - Non-field: Increased 22% reflecting higher management incentive costs and merit increases. The average number of non-field employees was relatively unchanged versus 4Q `03. o Amortization of Deferred Acquisition Costs: Increased 14% due to higher deferred costs and less favorable impacts arising from near term mean reversion rate changes. o Other Operating Expenses: Increased 4% from 4Q '03 as well-controlled operating costs were partially offset by a substantial increase in advertising and promotion costs and higher costs related to industry regulatory and legal matters. -14-

<TABLE> <CAPTION> AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW AMERICAN EXPRESS BANK (Preliminary) Statements of Income (Unaudited) (millions) Quarters Ended Percentage December 31, Inc/(Dec) ---------------------------------- --------------- 2004 2003 ---- ---- <S> <C> <C> <C> Net revenues: Interest income $145 $139 5% Interest expense 67 57 16 ---- ---- Net interest income 78 82 (3) Commissions and fees 74 68 7 Foreign exchange income and other revenues 55 55 - ---- ---- Total net revenues 207 205 1 ---- ---- Expenses: Human resources 81 75 8 Other operating expenses 76 67 13 Provision for losses 8 21 (60) Restructuring charges 35 - # ---- ---- Total expenses 200 163 23 ---- ---- Pre-tax income 7 42 (84) Income tax provision 1 13 (93) ---- ---- Net income $6 $29 (79) ==== ==== </TABLE> # Denotes variance greater than 100%. o Net Income: Decreased 79% due to the $35MM ($22MM after-tax) restructuring charge in the quarter. o Net Revenues: Rose 1%. - Net interest income decreased 3% primarily due to lower spreads in the investment portfolio and lower levels of Consumer Financial Services ("CFS", formerly referred to as Personal Financial Services) loans, reflecting AEB's prior decision to temporarily curtail loan origination in Hong Kong; and, - Commissions and fees increased 7% due to higher volumes in the Financial Institutions Group ("FIG") and Private Banking. o Human Resources Expense: Was up 8% reflecting merit increases and continued investment in core businesses, partially offset by the benefits of reengineering initiatives. o Other Operating Expenses: Increased 13% reflecting higher technology and business volume-related expenses partially offset by the benefits of reengineering initiatives. o Provision for Losses: Decreased 60% due to lower CFS loan volumes and reduced bankruptcy related write-offs in the consumer lending portfolio in Hong Kong. o Restructuring Charges: Totaling $35MM ($22MM after-tax) were recorded in the quarter, reflecting: - $31MM of expense related to employee severance obligations and other costs related to the early termination of certain real estate property leases pursuant to management's decision to exit businesses in Bangladesh, Egypt and Pakistan; and, - $4MM of expense pursuant to the sale of the Private Banking business in Luxembourg. o Pre-Tax Margin: Was 20.3% before restructuring charges (3.4% after charges) in 4Q '04 versus 23.9% in 3Q '04 and 20.5% in 4Q '03. o Effective Tax Rate: Was 14% in 4Q '04 versus 35% in 3Q '04 and 31% in 4Q '03. The reduced tax rate for the quarter was driven by the impact of recurring non-taxable items on the Bank's lower level of pre-tax income, plus a favorable state tax adjustment arising from the conclusion of an outstanding tax audit. -15-

AMERICAN EXPRESS COMPANY FOURTH QUARTER 2004 OVERVIEW AMERICAN EXPRESS BANK (Cont'd) o AEB remained "well-capitalized". <TABLE> <CAPTION> 12/04 9/04 12/03 Well-Capitalized ---------- ---------- ---------- -------------------- <S> <C> <C> <C> <C> Tier 1 11.0% 10.8% 11.4% 6.0% Total 10.1% 10.6% 11.3% 10.0% Leverage Ratio 5.8% 5.7% 5.5% 5.0% </TABLE> o Assets Managed and Administered: - For the twelve months ended 12/04 and during 4Q `04, growth in managed and administered assets of $3.0B and $1.6B, respectively, reflected net asset inflows, market appreciation and a positive foreign currency translation impact. o Loans: - AEB's loans outstanding were $6.9B at 12/04 versus $6.4B at 9/04 and $6.5B at 12/03. -- CFS loans were $1.4B at 12/04 versus $1.3B at 9/04 and $1.4B at 12/03. -- Non-CFS loans were $5.5B at 12/04 versus $5.1B at 9/04 and 12/03. -- % of Total loans: <TABLE> <CAPTION> 12/04 9/04 12/03 ------- ------ --------- <S> <C> <C> <C> Private Banking loans 48% 45% 45% Consumer loans 22% 23% 23% Financial Institution loans 29% 31% 29% Corporate Banking loans 1% 1% 3% </TABLE> - In addition to the loan portfolio, there are other banking activities, such as forward contracts, various credit-related commitments and market placements, which added approximately $7.2B to the credit exposures at 12/04 versus $7.5B at 9/04 and $7.6B at 12/03. Of the $7.2B of additional exposures at 12/04, $4.7B were cash and securities related balances. o Asset Quality: - Non-CFS loans*: -- Total non-performing loans were $37MM at 12/04, compared to $32MM at 9/04 and $78MM at 12/03. The decrease from 12/03 reflects loan payments and write-offs, partially offset by net downgrades. -- The loss reserve for non-CFS loans was $58MM at 12/04, compared with $57MM at 9/04 and $59MM at 12/03, or 156%, 180% and 75% of non-performing loans, respectively. - CFS loans*: -- The write-off and past due rates improved versus last quarter and last year. <TABLE> <CAPTION> 12/04 9/04 12/03 ----------- ----------- ------------ <S> <C> <C> <C> Net write-off rate 3.0% 3.6% 6.6% 30+ days past due as a % of loans 4.5% 5.1% 6.6% </TABLE> -- Coverage of past due accounts was maintained despite a decline in the reserve balance versus last year. <TABLE> <CAPTION> 12/04 9/04 12/03 ------------ ------------ ------------- <S> <C> <C> <C> Reserves (MM) $37 $39 $54 % of total CFS loans 2.7% 2.9% 4.0% % of 30+ day past due accounts 61% 57% 60% </TABLE> - Other non-performing assets were $1MM at 12/04 and 9/04 versus $15MM at 12/03. * For non-performing loan definitions and write-off policies, please refer to AEB's Selected Statistical Information pages within the Fourth Quarter/Full Year 2004 Earnings Release. -16-

<TABLE> <CAPTION> AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW CONSOLIDATED (Preliminary) Condensed Statements of Income (Unaudited, GAAP basis) Years Ended Percentage (millions) December 31, Inc/(Dec) -------------------------------- ------------ 2004 2003 -------- ------- Revenues: <S> <C> <C> <C> Discount revenue $10,249 $8,781 17% Net investment income 3,118 3,063 2 Management and distribution fees 3,023 2,420 25 Cardmember lending net finance charge revenue 2,224 2,042 9 Net card fees 1,909 1,835 4 Travel commissions and fees 1,795 1,507 19 Other commissions and fees 2,284 1,960 17 Insurance and annuity revenues 1,525 1,366 12 Securitization income, net 1,132 1,105 2 Other 1,856 1,757 6 -------- ------- Total revenues 29,115 25,836 13 -------- ------- Expenses: Human resources 7,359 6,303 17 Marketing, promotion, rewards and cardmember services 5,083 3,901 30 Provision for losses and benefits 4,318 4,429 (2) Interest 867 905 (4) Other 6,537 6,051 8 -------- ------- Total expenses 24,164 21,589 12 -------- ------- Pre-tax income before accounting change 4,951 4,247 17 Income tax provision 1,435 1,247 15 -------- ------- Income before accounting change 3,516 3,000 17 Cumulative effect of accounting change, net of tax (71) (13) # -------- ------- Net income $3,445 $2,987 15 ======== ======= EPS: Income before accounting change - Basic $2.79 $2.34 19 ======== ======= Net Income - Basic $2.74 $2.33 18 ======== ======= Income before accounting change - Diluted $2.74 $2.31 19 ======== ======= Net Income - Diluted $2.68 $2.30 17 ======== ======= </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. # Denotes variance greater than 100%. o Income before the accounting changes increased 17% and net income increased 15% versus last year. - 2004 results include: -- The $117MM ($76MM after-tax) net gain during 4Q '04 in connection with the sale of TRS's equipment leasing product line within its small business financing unit; -- $102MM ($66MM after-tax) in aggregate restructuring charges recorded during 4Q '04; -- A charge within TRS during 3Q `04 of $115MM as a result of the reconciliation of prior year's securitization-related lending receivables; -- A benefit within TRS during 3Q '04 of $60MM reflecting a reduction in merchant-related reserves; -- A net benefit of $24MM ($15MM after-tax) resulting from Deferred Acquisition Costs ("DAC") adjustments arising from AEFA's annual third quarter review of underlying DAC assumptions and dynamics; -- $11MM of net investment gains at AEFA versus $20MM of net investment losses in 2003; -- Higher expenses related to securities industry regulatory and legal matters at AEFA; -- The adoption of the American Institute of Certified Public Accountants Statement of Position 03-1 ("SOP 03-1") resulting in a below-the-line, non-cash charge at AEFA of $109MM ($71MM after-tax) or $0.06 per diluted share; and, -- A 1Q '04 DAC valuation benefit at AEFA of $66MM ($43MM after-tax) reflecting the lengthening of amortization periods for certain insurance and annuity products in connection with the adoption of SOP 03-1. - 2003 results reflect: -- A net benefit of $2MM ($1MM after-tax) at AEFA resulting from DAC-related adjustments arising from the annual third quarter review of underlying DAC assumptions and dynamics; -- A net benefit of $2MM ($1MM after-tax) at AEB representing adjustments to the 2002 restructuring charge for severance and other costs; and, -- The adoption of FIN 46, resulting in a below-the-line, non-cash charge of $13MM net of tax, or $0.01 per share. -17-

AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW CONSOLIDATED (Cont'd) o Consolidated Revenues: Revenues increased 13% due to greater discount revenues, higher management and distribution fees, increased travel and other commissions and fees, higher lending net finance charge revenue, larger insurance and annuity revenues, and greater other revenues. The Threadneedle and Rosenbluth acquisitions added 2% to consolidated revenue growth; the effect on net income was not material. Consolidated revenue growth versus last year reflected 12% growth at TRS, 15% growth at AEFA, and 3% growth at AEB. Translation of foreign currency revenues contributed approximately 2% of the 13% revenue growth rate. o Consolidated Expenses: Expenses were up 12%, reflecting higher marketing, promotion, rewards and cardmember services expense, greater human resources costs and increased other operating expenses. These increases were partially offset by a lower provision for losses and lower funding costs. Consolidated expenses reflected increases versus last year of 12% at TRS, 13% at AEFA and 4% at AEB. Translation of foreign currency expenses contributed approximately 2% of the 12% expense growth rate. o The pre-tax margin was 17.0% in 2004 versus 16.4% in 2003. o The effective tax rate was 29% in 2004 and in 2003. o <TABLE> <CAPTION> o Average Shares: Millions of Shares ------------------------------- 2004 2003 ----- ----- <S> <C> <C> Basic 1,259 1,284 ===== ===== Diluted 1,285 1,298 ===== ===== o Actual Share Activity: Shares outstanding - beginning of period 1,284 1,305 Repurchase of common shares (69) (21) Prepayments - 3rd party share purchase agreements - (15) Employee benefit plans, compensation and other 34* 15 ----- ----- Shares outstanding - end of period 1,249 1,284 ===== ===== </TABLE> *Includes 30MM net shares issued in connection with employee stock option exercises and related activity. CORPORATE AND OTHER o The net expense was $238MM in 2004 compared with $214MM in 2003. The increase versus last year reflects higher corporate investment spending on compliance and technology projects, partially offset by an $18MM benefit from the final settlement of a Federal tax audit. -18-

<TABLE> <CAPTION> AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW TRAVEL RELATED SERVICES (Preliminary) Statements of Income (Unaudited, GAAP basis) Years Ended Percentage (millions) December 31, Inc/(Dec) --------------------------------- ------------- 2004 2003 ------- ------- <S> <C> <C> <C> Net revenues: Discount revenue $10,249 $8,781 17% Lending: Finance charge revenue 2,795 2,525 11 Interest expense 571 483 18 ------- ------- Net finance charge revenue 2,224 2,042 9 Net card fees 1,909 1,835 4 Travel commissions and fees 1,795 1,507 19 Other commissions and fees 2,230 1,901 17 TC investment income 378 367 3 Securitization income, net 1,132 1,105 2 Other revenues 1,661 1,651 1 ------- ------- Total net revenues 21,578 19,189 12 ------- ------- Expenses: Marketing, promotion, rewards and cardmember services 4,944 3,814 30 Provision for losses and claims: Charge card 833 853 (2) Lending 1,130 1,218 (7) Other 176 127 38 ------- ------- Total 2,139 2,198 (3) Charge card interest expense 713 786 (9) Human resources 4,389 3,822 15 Other operating expenses: Professional services 2,101 1,958 7 Occupancy and equipment 1,300 1,199 8 Communications 465 452 3 Other 1,410 1,389 1 ------- ------- Total 5,276 4,998 6 ------- ------- Total expenses 17,461 15,618 12 ------- ------- Pre-tax income 4,117 3,571 15 Income tax provision 1,265 1,141 11 ------- ------- Net income $2,852 $2,430 17 ======= ======= </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. o Net Income: Increased 17%. - 2004 results include: -- The $117MM ($76MM after-tax) net gain during 4Q '04 from the sale of the equipment leasing product line managed within the small business financing unit; -- $64MM ($42MM after-tax) in aggregate charges in 4Q '04 relating principally to restructuring activities within Business Travel operations; -- A $115MM 3Q '04 charge resulting from the reconciliation of prior year's securitization-related lending receivable accounts; -- A $60MM benefit during 3Q '04 reflecting a reduction in merchant-related reserves; and, -- Cardmember lending securitization net gains of $26MM versus net gains of $124MM in 2003. o Pre-tax Margin: Was 19.1% in 2004 versus 18.6% in 2003. o Effective Tax Rate: Was 31% in 2004 versus 32% in 2003. The effective rate was lower than in 2003 primarily as a result of one time and ongoing benefits related to the changes in international funding strategy in 2004, favorable variances between estimates of foreign tax expense and returns actually filed, and favorable tax audit experience. o GAAP Basis Income Statement Items: - Securitization income, Net: Increased 2% as the increase in the average balance securitized was partially offset by lower securitization net gains. -- During 2004 and 2003, TRS' results included Cardmember lending securitization net gains of $26MM ($17MM after-tax) and $124MM ($81MM after-tax), respectively. The average balance of Cardmember lending securitizations was $19.4B in 2004, compared with $18.8B in 2003. - Net Finance Charge Revenue: Increased 9%, reflecting 15% growth in the average balance of the owned lending portfolio, partially offset by a lower yield. - Lending Provision: Decreased 7% reflecting strong credit quality in the owned lending portfolio. - The above GAAP basis items relating to net finance charge revenue and lending provision reflect the owned portfolio only. "Owned basis" credit quality statistics are available in the Fourth Quarter/Full Year 2004 Earnings Release on the TRS Selected Statistical Information pages. -19-

AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW TRAVEL RELATED SERVICES (Cont'd) Supplemental Information - Managed Basis: The following supplemental table includes information on both a GAAP basis and a "managed" basis. The managed basis presentation assumes there have been no securitization transactions, i.e., all securitized Cardmember loans and related income effects are reflected in the Company's balance sheet and income statement, respectively. The Company presents TRS 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. Asset securitization is just one of several ways for the Company to fund Cardmember loans. Use of a managed basis presentation, including non-securitized and securitized Cardmember loans, presents a more accurate picture of the key dynamics of the Cardmember lending business, avoiding distortions due to the mix of funding sources at any particular point in time. For example, irrespective of the mix, it is important for management and investors to see metrics, such as changes in delinquencies and write-off rates, for the entire Cardmember lending portfolio because it is 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 and changes in market share, which are all significant metrics in evaluating the Company's performance and which can only be properly assessed when all non-securitized and securitized Cardmember loans are viewed together on a managed basis. Management views any net gains from securitizations as discretionary benefits to be used for card acquisition expenses, which are reflected in both marketing, promotion, rewards and cardmember services and other operating expenses. Consequently, the managed basis presentation for the years ended December 31, 2004 and 2003 assumes that gains from new issuances and charges from the amortization and maturities of outstanding transactions are offset by higher marketing, promotion, rewards and cardmember services expenses of $16MM and $74MM, respectively, and other operating expense of $10MM and $50MM, respectively. Accordingly, the incremental expenses, as well as the gains, have been eliminated. <TABLE> <CAPTION> The following table compares and reconciles the GAAP basis TRS income statements to the managed basis information, where different. Effect of Securitizations (unaudited) ---------------------------------------------------------- (preliminary, millions) GAAP Basis (unaudited) Securitization Effect Managed Basis --------------------------------------------------------------------- ---------------------------------------------------------- Percentage Percentage Years Ended December 31, 2004 2003 Inc/(Dec) 2004 2003 2004 2003 Inc/(Dec) --------------------------------------------------------------------- ---------------------------------------------------------- <S> <C> <C> <C> <C> <C> <C> <C> <C> Net revenues: Discount revenue $10,249 $8,781 17% Lending: Finance charge revenue 2,795 2,525 11 $2,222 $2,172 $5,017 $4,697 7% Interest expense 571 483 18 384 317 955 800 19 --------------------------------------------------------------------- ---------------------------------------------------------- Net finance charge revenue 2,224 2,042 9 1,838 1,855 4,062 3,897 4 Net card fees 1,909 1,835 4 Travel commissions and fees 1,795 1,507 19 Other commissions and fees 2,230 1,901 17 210 193 2,440 2,094 16 TC investment income 378 367 3 Securitization income, net 1,132 1,105 2 (1,132) (1,105) - - Other 1,661 1,651 1 --------------------------------------------------------------------- ---------------------------------------------------------- Total net revenues 21,578 19,189 12 916 943 22,494 20,132 12 --------------------------------------------------------------------- ---------------------------------------------------------- Expenses: Marketing, promotion, rewards and cardmember services 4,944 3,814 30 (16) (74) 4,928 3,740 32 Provision for losses and claims: Charge card 833 853 (2) Lending 1,130 1,218 (7) 942 1,067 2,072 2,285 (9) Other 176 127 38 --------------------------------------------------------------------- ---------------------------------------------------------- Total 2,139 2,198 (3) 942 1,067 3,081 3,265 (6) Charge card interest expense 713 786 (9) Human resources 4,389 3,822 15 Other operating expenses: Professional services 2,101 1,958 7 Occupancy and equipment 1,300 1,199 8 Communications 465 452 3 Other 1,410 1,389 1 (10) (50) 1,400 1,339 4 --------------------------------------------------------------------- ---------------------------------------------------------- Total 5,276 4,998 6 (10) (50) 5,266 4,948 6 --------------------------------------------------------------------- ---------------------------------------------------------- Total Expenses 17,461 15,618 12 $916 $943 $18,377 $16,561 11 --------------------------------------------------------------------- ---------------------------------------------------------- Pre-tax income 4,117 3,571 15 Income tax provision 1,265 1,141 11 --------------------------------------------------------------------- Net income $2,852 $2,430 17 --------------------------------------------------------------------- </TABLE> -20-

AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW TRAVEL RELATED SERVICES (Cont'd) The following discussion addresses results on a managed basis. o Managed basis net revenue rose 12% reflecting higher discount revenue, greater other and travel commissions and fees, larger finance charge revenue, and increased card fees. o The 11% higher managed basis expenses reflect greater marketing, promotion, rewards and cardmember services costs, higher human resources expenses and increased operating expenses, partially offset by reduced provisions for losses and lower interest costs. o Discount Revenue: An 18% increase in billed business partially offset by a lower discount rate yielded a 17% increase in discount revenue. - The average discount rate was 2.56% in 2004 versus 2.59% in 2003. The decrease versus last year primarily reflects changes in the mix of spending between various merchant segments due to the cumulative impact of stronger than average growth in the lower rate retail and other "everyday spend" merchant categories (e.g., supermarkets, discounters, etc.) <TABLE> <CAPTION> Years Ended Percentage December 31, Inc/(Dec) -------------------------------- -------------- 2004 2003 ------ ------ <S> <C> <C> <C> Card billed business (billions): United States $304.8 $262.1 16% Outside the United States 111.3 90.1 24 ------ ------ Total $416.1 $352.2 18 ====== ====== Spending per basic card in force (dollars) (a): United States $10,686 $9,608 11 Outside the United States $6,913 $5,827 19 Total $9,460 $8,367 13 </TABLE> (a) Proprietary card activity only. - Billed Business: The 18% increase in worldwide billed business resulted from a 13% increase in spending per proprietary basic card and 8% growth in cards in force. -- U.S. billed business was up 16% reflecting growth of 16% within the consumer card business, a 20% increase in small business activity and a 12% improvement in Corporate Services volume. - Spending per proprietary basic card in force increased 11%. -- U.S. non-T&E-related volume categories (which represented approximately 67% of 2004 U.S. billed business) grew 19%, while T&E volumes rose 11%. -- U.S. airline-related volume, which represented approximately 11% of total U.S. volumes during the year, rose 9% due to increased transaction volume, partially offset by lower ticket prices. -- Excluding the impact of foreign exchange translation: - Worldwide billed business and spending per proprietary basic card in force increased 16% and 11%, respectively. - Total billed business outside the U.S. was up 15% reflecting double-digit improvement across all regions. - Within our proprietary business, billed business outside the U.S. reflected growth in consumer and small business spending of 13%, while Corporate Services volumes improved 15%. - Spending per proprietary basic card in force outside the U.S. grew 10%. -- Global Network Services volume rose in excess of 30%. -- Worldwide airline volumes, which represented approximately 12% of total volumes during the year, increased 14% on 15% growth in transaction volume, partially offset by a 1% decrease in the average airline charge. o Net Card Fees: Rose 4% due to higher cards in force. The average annual fee per proprietary card in force was $34 in 2004 versus $35 in 2003. o Net Finance Charge Revenue: Rose 4% on 9% growth in average worldwide lending balances, partially offset by a decline in the portfolio yield. - The yield on the portfolio was 8.6% in 2004 compared with 9.1% in 2003. The decrease versus last year reflects a higher proportion of the U.S. portfolio on introductory rates, lower revolve rates, better credit performance and rising funding costs. -21-

AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW TRAVEL RELATED SERVICES (Cont'd) o Travel Commissions and Fees: Increased 19% on a 25% increase in travel sales, partially offset by lower transaction fees related to growing on-line transaction activity. Excluding the Rosenbluth acquisition, travel sales for the full year were up 15%. o Other Commissions and Fees: Increased 16% on greater foreign exchange conversion fees and higher card-related assessments and network partner-related fees. o TC Investment Income: Increased 3% due to higher average investments. TC sales grew 3% versus last year. o Other Revenues: Increased slightly as larger insurance premiums and greater merchant-related and publishing revenues were offset by lower interest income on investment and liquidity pools held within card funding vehicles and lower ATM revenues due to our exit of this business. o Marketing, Promotion, Rewards and Cardmember Services Expenses: Increased 32%, reflecting both higher rewards costs and greater marketing and promotion expenses. Rewards costs grew on a higher redemption rate, strong volume growth and greater cardmember loyalty program participation. Marketing costs rose as we continued to focus on business-building initiatives and launched a new global card advertising campaign. o Other Provisions for Losses and Claims: Increased 38% primarily due to the reconciliation in the third quarter of securitization-related lending receivable accounts, which resulted in a charge of $115MM (net of $32MM of reserves previously provided) for balances accumulated over the prior five year period as a result of a computational error. The amount of the error was immaterial to any of the quarters in which it occurred. In addition, in the third quarter the merchant-related reserves were reduced by approximately $60MM to reflect modifications in certain merchant agreements to mitigate loss exposure, as well as on-going favorable credit experience with merchants. o Charge Card Interest Expense: Was down 9% due to a lower effective cost of funds, partially offset by higher average receivable balances. o Human Resources Expense: Increased 15% on $46MM of severance-related restructuring costs, merit increases, higher employee benefits, greater management incentive costs and the impact of the Rosenbluth acquisition. o Professional Services Expense: Increased 7% due to higher business volume-related technology outsourcing costs. o Occupancy and Equipment: Rose 8% on an increase in outsourced data processing services and an increase in depreciation of data processing equipment. o Other Operating Expenses: Increased 4% as the $117MM net gain in connection with the sale of the equipment leasing product line was more than offset by higher taxes other than income taxes, $18MM of 4Q `04 restructuring costs, and the Rosenbluth acquisition. o Credit Quality: - Overall credit quality performed exceptionally well throughout 2004. - The provision for losses on charge card products decreased 2% on improved past due and loss levels. The net loss ratio decreased to 0.26% in 2004 from 0.28% in 2003. * - The lending provision for losses was down 9% versus last year, despite growth in outstanding loans and increased reserve coverage levels of past due accounts, due to exceptionally well-controlled credit. The net write-off rate for 2004 was 4.3% versus 5.2% for 2003. ** ----------------- * There are no off-balance sheet Charge Card securitizations. Therefore, "Owned basis" and "Managed basis" credit quality statistics for the Charge Card portfolio are the same. ** As previously described, this information is presented on a "Managed basis". "Owned basis" credit quality statistics are available in the Fourth Quarter/Full Year Earnings Release on the TRS Selected Statistical Information page. Credit trends are generally consistent under both reporting methods. -22-

<TABLE> <CAPTION> AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW AMERICAN EXPRESS FINANCIAL ADVISORS (Preliminary) Statements of Income (Unaudited, GAAP basis) (millions) Years Ended Percentage December 31, Inc/(Dec) ----------------------------- ------------- 2004 2003 ------- ------- <S> <C> <C> <C> Revenues: Net Investment income $2,375 $2,279 4% Investment management and service fees 1,732 1,336 30 Distribution fees 1,298 1,092 19 Variable life insurance and variable annuity charges* 444 424 5 Life and health insurance premiums 356 351 1 Property-casualty insurance premiums 422 326 30 Other 408 334 22 ------- ------- Total revenues 7,035 6,142 15 ------- ------- Expenses: Provision for losses and benefits: Interest credited on annuities and universal life-type contracts 1,128 1,224 (8) Benefits on insurance and annuities 459 440 5 Interest credited on investment certificates 224 201 11 Losses and expenses on property-casualty insurance 327 257 27 ------- ------- Total 2,138 2,122 1 Human resources - Field 1,332 1,067 25 Human resources - Non-Field 919 729 26 Amortization of deferred acquisition costs 405 476 (15) Other operating expenses 1,155 889 30 ------- ------- Total expenses 5,949 5,283 13 ------- ------- Pre-tax income before accounting change 1,086 859 26 Income tax provision 280 177 59 ------- ------- Income before accounting change 806 682 18 Cumulative effect of accounting change, net of tax (71) (13) # ------- ------- Net income $735 $669 10 ======= ======= </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. * Includes variable universal life and universal life insurance charges. # Denotes variance greater than 100%. o Net Income: Increased 10%. Income before the accounting changes increased 18%. Pre-tax income rose 26%. - 2004 included: -- A below-the-line, non-cash charge of $109MM ($71MM after-tax) in 1Q `04 resulting from the adoption of SOP 03-1; -- A 1Q `04 DAC valuation benefit of $66MM ($43MM after-tax) reflecting the lengthening of amortization periods for certain insurance and annuity products in conjunction with the adoption of SOP 03-1 and a 3Q '04 net benefit of $24MM ($15MM after-tax) resulting from DAC-related adjustments arising from AEFA's annual third-quarter review of underlying DAC assumptions and dynamics; -- $11MM of net investment gains versus $20MM of net investment losses in 2003; -- The impact of the 9/30/03 Threadneedle acquisition, which contributed approximately 5% to revenue growth for the year and a modest benefit to net income; and, -- Higher expenses related to various securities industry regulatory and legal matters. - 2003 included: -- A net benefit of $2MM ($1MM after-tax) resulting from DAC-related adjustments arising from the annual third quarter review of underlying DAC assumptions and dynamics; and, -- The adoption of FIN 46, resulting in a below-the-line, non-cash charge of $13MM net of tax. o Total Revenues: Increased 15% due to larger investment management and service fees, greater distribution fees, larger net investment income, greater property-casualty insurance premiums and higher other revenues. The full year impact of the 9/30/03 Threadneedle acquisition contributed approximately 5% to revenue growth. -23-

AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW AMERICAN EXPRESS FINANCIAL ADVISORS (Cont'd) o Pre-tax Margin: Was 15.4% in 2004 versus 14.0% in 2003. o Effective Tax Rate: Increased to 26% in 2004 versus 21% in 2003. The rate rose due to the impact of higher pre-tax income compared to tax-advantaged items, reduced low income housing credits and elimination of significant one-time adjustments related to dividend received deductions booked in 2003. These were partially offset by the favorable impact of the adjustment to the current taxes payable account booked in 4Q '04. o Supplemental Information - Net Revenues: In the following table, the Company presents AEFA's aggregate revenues on a basis that is net of provisions for losses and benefits because the Company manages the AEFA business and evaluates its financial performance, where appropriate, in terms of the "spread" on its products. An important part of AEFA's business is margin-related, particularly the insurance, annuity and certificate businesses. One of the drivers for the AEFA business is the return on invested cash, primarily generated by sales of insurance, annuities and investment certificates, less provisions for losses and benefits on these products. These investments tend to be interest rate sensitive. Thus, GAAP revenues tend to be higher in periods of rising interest rates and lower in times of decreasing interest rates. The same relationship is true of provisions for losses and benefits, only it is more accentuated period-to-period because rates credited to customers' accounts generally reset at shorter intervals than the yield on underlying investments. The Company presents this portion of the AEFA business on a net basis to eliminate potentially less informative comparisons of period-to-period changes in revenue and provisions for losses and benefits in light of the impact of these changes in interest rates. <TABLE> <CAPTION> Years ended Percentage (millions) December 31, Inc/(Dec) --------------------------------- --------------- 2004 2003 ------ ------ <S> <C> <C> <C> Total GAAP Revenues $7,035 $6,142 15% Less: Total provision for losses and benefits 2,138 2,122 1 ------ ------ Net Revenues $4,897 $4,020 22 ====== ====== </TABLE> Note: Certain prior period amounts have been reclassified to conform to the current year presentation. - Spreads within the insurance and annuity products were up versus last year, while certificate spreads were down. - On a net revenue basis, the pre-tax margin was 22% in 2004 versus 21% in 2003. o Product Sales: - Total gross cash sales from all products were up 17% versus 2003. Branded advisor-generated sales increased 11% on a cash basis and increased 14% on a GDC basis. - Total mutual fund cash sales increased 15% on a rise in non-proprietary sales and the benefits of the full year impact of the 9/30/03 Threadneedle acquisition. A significant portion of non-proprietary sales continued to occur in "wrap" accounts (which are included in assets managed). - Total annuity cash sales declined 6% as a decrease in fixed annuity sales was partially offset by higher variable product sales. - Total cash sales of insurance products rose 19% reflecting higher sales of life insurance products through the advisor channel and strong property-casualty insurance sales, due in part to sales through Costco. - Total certificate cash sales increased 25% reflecting greater sales of certificates sold to clients outside the U.S., through the joint venture between AEFA and AEB, and sold to clients in the U.S. through the advisor channel. - Total institutional cash sales increased over 100%, benefiting from the full year impact of the 9/30/03 Threadneedle acquisition. - Total other cash sales decreased 22% due to lower 401(k) activity levels. - Advisor product sales (GDC basis) generated through financial planning and advice services were 75% of total sales in 2004 and 2003. -24-

AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW AMERICAN EXPRESS FINANCIAL ADVISORS (Cont'd) o Net Investment Income: Increased 4% on generally higher invested assets and $11MM of net investments gains this year versus $20MM of net investment losses in 2003. In 2004, $100MM of gross investment gains were largely offset by $89MM of gross investment losses. - Average invested assets of $45.3B (including unrealized appreciation/depreciation and the impacts of FIN 46) rose 3% versus $44.0B in 2003. - The average yield on invested assets (excluding realized and unrealized appreciation/depreciation and including the impacts of FIN 46) remained flat at 5.2% in 2004. o Investment Management and Service Fees: Increased 30% on a higher average managed asset level and the full year benefit of the 9/30/03 Threadneedle acquisition. o Distribution Fees: Increased 19% on increased mutual fund fees, resulting primarily from increased sales of wrap accounts and increased retail and institutional brokerage fees. o Variable Life Insurance and Variable Annuity Charges: Increased 5% due to higher insurance in force. o Life and Health Insurance Premiums: Grew 1% due to increases in the average number of life and disability policies in force, partially offset by decreases in average long-term care policies in force, resulting from our de-emphasizing this business. o Property-Casualty Insurance Premiums: Increased 30% due to an increase in the average number of policies in force. Property-casualty insurance sold through Costco accounted for a significant proportion of policies in force at 12/31/04. o Other Revenues: Were up 22% on higher fees earned on non-proprietary funds and greater financial planning and advice services fees, which grew 15% versus 2003. o Provisions for Losses and Benefits: - Interest Credited on Annuities and Universal Life-type Contracts: Decreased 8% due to lower interest crediting rates, which were partially offset by higher in-force levels. - Benefits on Insurance and Annuities: Grew 5%, due to growth in annuity levels and growth in life and health insurance policies in force, partially offset by declines in long-term care policies in force. - Interest Credited on Investment Certificates: Increased 11% due to higher average certificate reserves. - Losses and Expenses on Property-Casualty Insurance: Increased 27% due to increased average property and casualty policies in force. o Human Resources Expense - Field: Grew 25% versus 2003 due to increased advisor production, lower deferrable costs resulting from the mix in product sales, and the full year impact of the 9/30/03 Threadneedle acquisition. o Human Resources Expense - Non-Field: Grew 26%, reflecting the impact of the Threadneedle acquisition, increased salaries and benefits, and higher management incentive costs for employees. Within the home office, the average number of employees was up 7% due to the Threadneedle acquisition, although flat excluding the acquisition's impact. o Amortization of Deferred Acquisition Costs: Decreased 15% primarily due to the 1Q `04 valuation benefit of $66MM that occurred in conjunction with the adoption of SOP 03-1. o Other Operating Expenses: Increased 30% versus last year reflecting higher costs related to various securities industry regulatory and legal matters, higher advertising and promotion expenses, and the full-year impact of the 9/30/03 Threadneedle acquisition. -25-

AMERICAN EXPRESS COMPANY FULL YEAR 2004 OVERVIEW AMERICAN EXPRESS BANK <TABLE> <CAPTION> (Preliminary) STATEMENTS OF INCOME (Unaudited) (millions) Years Ended Percentage December 31, Inc/(Dec) --------------------------------- --------------- 2004 2003 ----- ------ <S> <C> <C> <C> Net revenues: Interest income $542 $575 (6)% Interest expense 227 226 - ----- ------ Net interest income 315 349 (10) Commissions and fees 283 238 19 Foreign exchange income and other revenues 227 214 6 ----- ------ Total net revenues 825 801 3 ----- ------ Expenses: Human resources 298 271 10 Other operating expenses 300 279 8 Provision for losses 37 102 (64) Restructuring charges 44 (2) # ----- ------ Total expenses 679 50 4 ----- ------ Pre-tax income 146 151 (3) Income tax provision 50 49 3 ----- ------ Net income $96 $102 (6) ===== ====== </TABLE> # Denotes variance greater than 100%. o Net Income: Decreased 6%. - 2004 includes $44MM ($29MM after-tax) of restructuring charges incurred in connection with the decision to sell certain AEB operations in Bangladesh, Egypt, Luxembourg and Pakistan. - 2003 includes a net pre-tax benefit of $2MM ($1MM after-tax) reflecting an adjustment to the 2002 restructuring charge for severance and other costs. o Net Revenues: Increased 3%. - Net interest income declined 10% primarily due to lower levels of CFS loans, reflecting the Bank's decision to temporarily curtail loan origination in Hong Kong, and lower spreads in the investment portfolio. These negative effects were partially offset by strong growth in Private Banking loans. - Commissions and fees were up 19% due to higher volumes in FIG and Private Banking, partially offset by lower volumes in CFS. - Foreign exchange income and other revenues increased 6% due to higher Private Banking client activity. o Human Resource Expense: Increased 10% reflecting merit increases and higher management incentive costs, partially offset by the benefits of reengineering initiatives. o Other Operating Expenses: Increased 8% due to higher technology and business volume-related expenses, partially offset by a gain on the sale of securities received from a settlement with a FIG client, and the benefits of reengineering initiatives. o Provision for Losses: Decreased 64% due to lower CFS loan volumes and an improvement in bankruptcy-related write-offs in the consumer lending portfolio in Hong Kong. o Pre-Tax Margin: Before restructuring charges, was 23.0% (17.7% after charges) in 2004 versus 18.6% (18.9% after charges) in 2003. o Effective Tax Rate: Was 34% in 2004 versus 32% in 2003. -26-

INFORMATION RELATING TO FORWARD LOOKING STATEMENTS THIS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS, WHICH ARE SUBJECT TO RISKS AND UNCERTAINTIES. THE WORDS "BELIEVE," "EXPECT," "ANTICIPATE," "OPTIMISTIC," "INTEND," "PLAN," "AIM," "WILL," "MAY," "SHOULD," "COULD," "WOULD," "LIKELY," AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. 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 COMPANY'S ABILITY TO IMPROVE ITS OPERATING EXPENSE TO REVENUE RATIO BOTH IN THE SHORT-TERM AND OVER TIME, WHICH WILL DEPEND IN PART ON THE EFFECTIVENESS OF REENGINEERING AND OTHER COST-CONTROL INITIATIVES, AS WELL AS FACTORS IMPACTING THE COMPANY'S REVENUES; THE COMPANY'S ABILITY TO COST EFFECTIVELY MANAGE AND EXPAND CARDMEMBER BENEFITS, INCLUDING CONTAINING THE GROWTH OF ITS MARKETING, PROMOTION, REWARDS AND CARDMEMBER SERVICES EXPENSES; THE COMPANY'S ABILITY TO ACCURATELY ESTIMATE THE PROVISION FOR THE COST OF THE MEMBERSHIP REWARDS PROGRAM; THE COMPANY'S ABILITY TO GROW ITS BUSINESS AND MEET OR EXCEED ITS RETURN ON SHAREHOLDERS' EQUITY TARGET BY REINVESTING APPROXIMATELY 35% OF ANNUALLY-GENERATED CAPITAL, AND RETURNING APPROXIMATELY 65% OF SUCH CAPITAL TO SHAREHOLDERS, OVER TIME, WHICH WILL DEPEND ON THE COMPANY'S ABILITY TO MANAGE ITS CAPITAL NEEDS AND THE EFFECT OF BUSINESS MIX, ACQUISITIONS AND RATING AGENCY REQUIREMENTS; THE ABILITY OF THE COMPANY TO GENERATE SUFFICIENT REVENUES FOR EXPANDED INVESTMENT SPENDING AND TO ACTUALLY SPEND SUCH FUNDS TO THE EXTENT AVAILABLE, AND THE ABILITY TO CAPITALIZE ON SUCH INVESTMENTS TO IMPROVE BUSINESS METRICS; CREDIT RISK RELATED TO CONSUMER DEBT, BUSINESS LOANS, MERCHANT BANKRUPTCIES AND OTHER CREDIT EXPOSURES BOTH IN THE U.S. AND INTERNATIONALLY; VOLATILITY IN THE VALUATION ASSUMPTIONS FOR THE INTEREST-ONLY (I/O) STRIP RELATING TO TRS' LENDING SECURITIZATIONS; FLUCTUATION IN THE EQUITY AND FIXED INCOME MARKETS, WHICH CAN AFFECT THE AMOUNT AND TYPES OF INVESTMENT PRODUCTS SOLD BY AEFA, THE MARKET VALUE OF ITS MANAGED ASSETS, AND MANAGEMENT, DISTRIBUTION AND OTHER FEES RECEIVED BASED ON THE VALUE OF THOSE ASSETS; AEFA'S ABILITY TO RECOVER DEFERRED ACQUISITION COSTS (DAC), AS WELL AS THE TIMING OF SUCH DAC AMORTIZATION, IN CONNECTION WITH THE SALE OF ANNUITY, INSURANCE AND CERTAIN MUTUAL FUND PRODUCTS; CHANGES IN ASSUMPTIONS RELATING TO DAC, WHICH COULD IMPACT THE AMOUNT OF DAC AMORTIZATION; THE ABILITY TO IMPROVE INVESTMENT PERFORMANCE IN AEFA'S BUSINESSES, INCLUDING ATTRACTING AND RETAINING HIGH-QUALITY PERSONNEL; THE SUCCESS, TIMELINESS AND FINANCIAL IMPACT, INCLUDING COSTS, COST SAVINGS AND OTHER BENEFITS INCLUDING INCREASED REVENUES, 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 ABILITY TO CONTROL AND MANAGE OPERATING, INFRASTRUCTURE, ADVERTISING AND PROMOTION AND OTHER EXPENSES AS BUSINESS EXPANDS OR CHANGES, INCLUDING BALANCING THE NEED FOR LONGER-TERM INVESTMENT SPENDING; THE POTENTIAL NEGATIVE EFFECT ON THE COMPANY'S BUSINESSES AND INFRASTRUCTURE, INCLUDING INFORMATION TECHNOLOGY, OF TERRORIST ATTACKS, DISASTERS OR OTHER CATASTROPHIC EVENTS IN THE FUTURE; THE IMPACT ON THE COMPANY'S BUSINESSES RESULTING FROM CONTINUING GEOPOLITICAL UNCERTAINTY; THE OVERALL LEVEL OF CONSUMER CONFIDENCE; CONSUMER AND BUSINESS SPENDING ON THE COMPANY'S TRAVEL RELATED SERVICES PRODUCTS, PARTICULARLY CREDIT AND CHARGE CARDS AND GROWTH IN CARD LENDING BALANCES, WHICH DEPEND IN PART ON THE ABILITY TO ISSUE NEW AND ENHANCED CARD PRODUCTS AND INCREASE REVENUES FROM SUCH PRODUCTS, ATTRACT NEW CARDHOLDERS, CAPTURE A GREATER SHARE OF EXISTING CARDHOLDERS' SPENDING, SUSTAIN PREMIUM DISCOUNT RATES ON ITS CARD PRODUCTS IN LIGHT OF MARKET PRESSURES, INCREASE MERCHANT COVERAGE, RETAIN CARDMEMBERS AFTER LOW INTRODUCTORY LENDING RATES HAVE EXPIRED, AND EXPAND THE GLOBAL NETWORK SERVICES BUSINESS; 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; AEFA'S ABILITY TO DEVELOP AND ROLL OUT NEW AND ATTRACTIVE PRODUCTS TO CLIENTS IN A TIMELY MANNER AND EFFECTIVELY MANAGE THE ECONOMICS IN SELLING A GROWING VOLUME OF NON-PROPRIETARY MUTUAL FUNDS AND OTHER RETAIL FINANCIAL PRODUCTS TO CLIENTS; SUCCESSFULLY CROSS-SELLING FINANCIAL, TRAVEL, CARD AND OTHER PRODUCTS AND SERVICES TO THE COMPANY'S CUSTOMER BASE, BOTH IN THE UNITED STATES AND INTERNATIONALLY; 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; FLUCTUATIONS IN INTEREST RATES, WHICH IMPACT THE COMPANY'S BORROWING COSTS, RETURN ON LENDING PRODUCTS AND SPREADS IN THE INSURANCE, ANNUITY AND INVESTMENT CERTIFICATE BUSINESSES; CREDIT TRENDS AND THE RATE OF BANKRUPTCIES, WHICH CAN AFFECT SPENDING ON CARD PRODUCTS, DEBT PAYMENTS BY INDIVIDUAL AND CORPORATE CUSTOMERS AND BUSINESSES THAT ACCEPT THE COMPANY'S CARD PRODUCTS AND RETURNS ON THE COMPANY'S INVESTMENT PORTFOLIOS; BANKRUPTCIES, RESTRUCTURINGS OR SIMILAR EVENTS AFFECTING THE AIRLINE OR ANY OTHER INDUSTRY REPRESENTING A SIGNIFICANT PORTION OF TRS' 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; RISKS ASSOCIATED WITH THE COMPANY'S AGREEMENTS WITH DELTA AIR LINES TO PREPAY $500 MILLION FOR THE FUTURE PURCHASES OF DELTA SKYMILES REWARDS POINTS AND TO LOAN UP TO $100 MILLION TO DELTA; FLUCTUATIONS IN FOREIGN CURRENCY EXCHANGE RATES; 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; DEFICIENCIES AND INADEQUACIES IN THE COMPANY'S INTERNAL CONTROL OVER FINANCIAL REPORTING, WHICH COULD RESULT IN INACCURATE OR INCOMPLETE FINANCIAL STATEMENTS AND PUBLIC DISCLOSURES; CHANGES IN LAWS OR GOVERNMENT REGULATIONS, INCLUDING CHANGES IN TAX LAWS OR REGULATIONS THAT COULD RESULT IN THE ELIMINATION OF CERTAIN TAX BENEFITS; THE COSTS AND INTEGRATION OF ACQUISITIONS; AND OUTCOMES AND COSTS ASSOCIATED WITH LITIGATION AND COMPLIANCE AND REGULATORY MATTERS. 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, 2003, AND ITS OTHER REPORTS FILED WITH THE SEC. -27-