AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: 
AMERICAN EXPRESS COMPANY


CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)|    |                                                                           |        |        |      |        |    |        |
|---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------|
|  1 | Six Months Ended June 30 (Millions, except per share amounts)             | 2024   |        | 2023 |        |    |        |
|  2 | Revenues                                                                  |        |        |      |        |    |        |
|  3 | Non-interest revenues                                                     |        |        |      |        |    |        |
|  4 | Discount revenue                                                          | $      | 17,235 |      |        | $  | 16,428 |
|  5 | Net card fees                                                             | 4,034  |        |      | 3,502  |    |        |
|  6 | Service fees and other revenue                                            | 2,572  |        |      | 2,450  |    |        |
|  7 | Processed revenue                                                         | 794    |        |      | 867    |    |        |
|  8 | Total non-interest revenues                                               | 24,635 |        |      | 23,247 |    |        |
|  9 | Interest income                                                           |        |        |      |        |    |        |
| 10 | Interest on loans                                                         | 10,150 |        |      | 8,152  |    |        |
| 11 | Interest and dividends on investment securities                           | 50     |        |      | 64     |    |        |
| 12 | Deposits with banks and other                                             | 1,369  |        |      | 975    |    |        |
| 13 | Total interest income                                                     | 11,569 |        |      | 9,191  |    |        |
| 14 | Interest expense                                                          |        |        |      |        |    |        |
| 15 | Deposits                                                                  | 2,852  |        |      | 2,190  |    |        |
| 16 | Long-term debt and other                                                  | 1,218  |        |      | 913    |    |        |
| 17 | Total interest expense                                                    | 4,070  |        |      | 3,103  |    |        |
| 18 | Net interest income                                                       | 7,499  |        |      | 6,088  |    |        |
| 19 | Total revenues net of interest expense                                    | 32,134 |        |      | 29,335 |    |        |
| 20 | Provisions for credit losses                                              |        |        |      |        |    |        |
| 21 | Card Member receivables                                                   | 422    |        |      | 452    |    |        |
| 22 | Card Member loans                                                         | 1,984  |        |      | 1,709  |    |        |
| 23 | Other                                                                     | 131    |        |      | 92     |    |        |
| 24 | Total provisions for credit losses                                        | 2,537  |        |      | 2,253  |    |        |
| 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 |        |      | 27,082 |    |        |
| 26 | Expenses                                                                  |        |        |      |        |    |        |
| 27 | Card Member rewards                                                       | 8,001  |        |      | 7,722  |    |        |
| 28 | Business development                                                      | 2,819  |        |      | 2,781  |    |        |
| 29 | Card Member services                                                      | 2,325  |        |      | 1,932  |    |        |
| 30 | Marketing                                                                 | 2,956  |        |      | 2,749  |    |        |
| 31 | Salaries and employee benefits                                            | 4,047  |        |      | 3,889  |    |        |
| 32 | Other, net                                                                | 2,514  |        |      | 3,108  |    |        |
| 33 | Total expenses                                                            | 22,662 |        |      | 22,181 |    |        |
| 34 | Pretax income                                                             | 6,935  |        |      | 4,901  |    |        |
| 35 | Income tax provision                                                      | 1,483  |        |      | 911    |    |        |
| 36 | Net income                                                                | $      | 5,452  |      |        | $  | 3,990  |
| 37 | Earnings per Common Share (Note 14)(a)                                    |        |        |      |        |    |        |
| 38 | Basic                                                                     | $      | 7.49   |      |        | $  | 5.30   |
| 39 | Diluted                                                                   | $      | 7.48   |      |        | $  | 5.29   |
| 40 | Average common shares outstanding for earnings per common share:          |        |        |      |        |    |        |
| 41 | Basic                                                                     |        |        |      | 741    |    |        |
| 42 | Diluted                                                                   |        |        |      | 742    |    |        |
(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023.

See Notes to Consolidated Financial Statements.

39




, Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: 
DISCOVER FINANCIAL SERVICES


Condensed Consolidated Statements of Income (unaudited)

(dollars in millions, except for share amounts)
|    |                                                       |                                     |       |                                   |       |      |       |       |    |       |    |       |
|---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------|
|  1 |                                                       | For the Three Months Ended June 30, |       | For the Six Months Ended June 30, |       |      |       |       |    |       |    |       |
|  2 |                                                       | 2024                                |       | 2023                              |       | 2024 |       | 2023  |    |       |    |       |
|  3 | Interest income                                       |                                     |       |                                   |       |      |       |       |    |       |    |       |
|  4 | Credit card loans                                     | $                                   | 3,959 |                                   |       | $    | 3,466 |       | $  | 7,897 | $  | 6,787 |
|  5 | Other loans, including loans held-for-sale            | 729                                 |       |                                   | 606   |      |       | 1,441 |    | 1,170 |    |       |
|  6 | Investment securities                                 | 125                                 |       |                                   | 106   |      |       | 249   |    | 207   |    |       |
|  7 | Other interest income                                 | 158                                 |       |                                   | 112   |      |       | 332   |    | 203   |    |       |
|  8 | Total interest income                                 | 4,971                               |       |                                   | 4,290 |      |       | 9,919 |    | 8,367 |    |       |
|  9 | Interest expense                                      |                                     |       |                                   |       |      |       |       |    |       |    |       |
| 10 | Deposits                                              | 1,199                               |       |                                   | 905   |      |       | 2,409 |    | 1,661 |    |       |
| 11 | Short-term borrowings                                 | -                                   |       |                                   | -     |      |       | 6     |    | -     |    |       |
| 12 | Long-term borrowings                                  | 248                                 |       |                                   | 208   |      |       | 493   |    | 397   |    |       |
| 13 | Total interest expense                                | 1,447                               |       |                                   | 1,113 |      |       | 2,908 |    | 2,058 |    |       |
| 14 | Net interest income                                   | 3,524                               |       |                                   | 3,177 |      |       | 7,011 |    | 6,309 |    |       |
| 15 | Provision for credit losses                           | 739                                 |       |                                   | 1,305 |      |       | 2,236 |    | 2,407 |    |       |
| 16 | Net interest income after provision for credit losses | 2,785                               |       |                                   | 1,872 |      |       | 4,775 |    | 3,902 |    |       |
| 17 | Other income                                          |                                     |       |                                   |       |      |       |       |    |       |    |       |
| 18 | Discount and interchange revenue, net                 | 437                                 |       |                                   | 370   |      |       | 808   |    | 700   |    |       |
| 19 | Protection products revenue                           | 42                                  |       |                                   | 44    |      |       | 84    |    | 87    |    |       |
| 20 | Loan fee income                                       | 205                                 |       |                                   | 186   |      |       | 405   |    | 352   |    |       |
| 21 | Transaction processing revenue                        | 91                                  |       |                                   | 72    |      |       | 178   |    | 139   |    |       |
| 22 | Gains (losses) on equity investments                  | -                                   |       |                                   | 1     |      |       | -     |    | (17)  |    |       |
| 23 | Other income                                          | 239                                 |       |                                   | 28    |      |       | 262   |    | 50    |    |       |
| 24 | Total other income                                    | 1,014                               |       |                                   | 701   |      |       | 1,737 |    | 1,311 |    |       |
| 25 | Other expense                                         |                                     |       |                                   |       |      |       |       |    |       |    |       |
| 26 | Employee compensation and benefits                    | 658                                 |       |                                   | 588   |      |       | 1,329 |    | 1,213 |    |       |
| 27 | Marketing and business development                    | 258                                 |       |                                   | 268   |      |       | 508   |    | 509   |    |       |
| 28 | Information processing and communications             | 167                                 |       |                                   | 150   |      |       | 330   |    | 289   |    |       |
| 29 | Professional fees                                     | 296                                 |       |                                   | 216   |      |       | 588   |    | 448   |    |       |
| 30 | Premises and equipment                                | 23                                  |       |                                   | 20    |      |       | 43    |    | 42    |    |       |
| 31 | Other expense                                         | 327                                 |       |                                   | 162   |      |       | 1,240 |    | 286   |    |       |
| 32 | Total other expense                                   | 1,729                               |       |                                   | 1,404 |      |       | 4,038 |    | 2,787 |    |       |
| 33 | Income before income taxes                            | 2,070                               |       |                                   | 1,169 |      |       | 2,474 |    | 2,426 |    |       |
| 34 | Income tax expense                                    | 540                                 |       |                                   | 268   |      |       | 636   |    | 557   |    |       |
| 35 | Net income                                            | $                                   | 1,530 |                                   |       | $    | 901   |       | $  | 1,838 | $  | 1,869 |
| 36 | Net income allocated to common stockholders           | $                                   | 1,521 |                                   |       | $    | 895   |       | $  | 1,795 | $  | 1,826 |
| 37 | Basic earnings per common share                       | $                                   | 6.06  |                                   |       | $    | 3.54  |       | $  | 7.17  | $  | 7.09  |
| 38 | Diluted earnings per common share                     | $                                   | 6.06  |                                   |       | $    | 3.54  |       | $  | 7.16  | $  | 7.09  |

See Notes to the Condensed Consolidated Financial Statements.

3






Question: How does the growth rate of discount revenue compare between American Express and Discover Financial Services in 2024?
Answer: For American Express, discount revenue increased from $16,428 million in the first six months of 2023 to $17,235 million in the same period of 2024, showing a growth rate of approximately 4.9%. For Discover Financial Services, discount and interchange revenue increased from $700 million in the first six months of 2023 to $808 million in the same period of 2024, showing a growth rate of approximately 15.4%.