Investor Presentaiton
Annex 6
Consolidated Net Interest Yield on Average Card Member Loans
($ in millions, except percentages and where indicated)
Net interest income
Exclude:
Q4'19
Q3'22
Q4'22
Q1'23
Q2'23
Q3'23
$2,284
$2,578 $2,758 $2,983 $3,105 $3,442
Interest expense not attributable to our Card Member loan portfolio*
$421
$374
$525
$624
$728
$770
Interest income not attributable to our Card Member loan portfolio** ($271)
Adjusted net interest income***
($300) ($451) ($602) ($703) ($767)
$2,434
$2,652 $2,832 $3,005 $3,130 $3,445
Average Card Member loans (billions)
$85.2
$97.7 $103.9 $107.7 $112.4 $116.6
Net interest income divided by average Card Member loans
10.7%
10.5%
10.5%
11.2%
11.1%
11.7%
Net interest yield on average Card Member loans***
11.3%
10.8%
10.8%
11.3%
11.2%
11.7%
***
Primarily represents interest expense attributable to funding Card Member receivables and maintaining our corporate liquidity pool.
** Primarily represents interest income attributable to Other loans, interest-bearing deposits and our Travelers Cheque and other stored-value investment portfolio.
Adjusted net interest income and net interest yield on average Card Member loans are non-GAAP measures. We believe adjusted net interest income is useful to investors because it
represents the interest expense and interest income attributable to our Card Member loan portfolio and is a component of net interest yield on average Card Member loans, which provides a
measure of profitability of our Card Member loan portfolio. Net interest yield on average Card Member loans reflects adjusted net interest income divided by average Card Member loans,
computed on an annualized basis. Net interest income divided by average Card Member loans, computed on an annualized basis, a GAAP measure, includes elements of total interest
income and total interest expense that are not attributable to the Card Member loan portfolio, and thus is not representative of net interest yield on average Card Member loans.
AM
EX
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