Third quarter diluted EPS from continuing operations attributable to common shareholders of $0.54 decreased 27% versus $0.74 last year. Total revenues net of interest expense decreased 16%. Return on average common equity (“ROCE”) was 10.4% and return on average tangible common equity (“ROTCE”), which excludes goodwill and intangibles, was 13.5%.
- 3Q „09 Income from continuing operations included a $180MM ($113MM after-tax) benefit related to the accounting for a net investment in the Company‟s consolidated foreign subsidiaries, as discussed further on page 4. Excluding that benefit, adjusted diluted earnings per share from continuing operations were $0.44 and decreased 41%.
- 3Q ‟08 Income from continuing operations included a $100MM ($62MM after-tax) charge to the fair market value of the Company‟s interest-only strip (“I/O Strip”).
- The discontinued operations line in the Consolidated Financial Statements contains the results of operations, assets and liabilities related to various business sales. During 3Q „09 and 3Q „08, this primarily includes the results from American Express International Deposit Company (“AEIDC”), which was sold to Standard Chartered PLC (“Standard Chartered”) this quarter, as discussed further on page 6.
- 3Q „09 results included $2MM of losses from discontinued operations versus $46MM of losses last year.
- Including discontinued operations, diluted EPS on a net income basis attributable to common shareholders of $0.53 decreased 24% versus $0.70 last year. Excluding the 3Q „09 benefit referenced above, adjusted net income per share was $0.43 and decreased 39%.
American Express
