American Express Company · NYSE:AXP

American Express — Shareholder Meeting (May 2014)

17 slides from American Express's shareholder meeting presentation, May 12, 2014

  1. Slide 1: American Express Company Annual Shareholder Meeting

    American Express Company Annual Shareholder Meeting May 12, 2014

  2. Slide 2: Financial Performance

    Financial Performance $ in billions; except per share amounts Q1'13 Q2'13 Q3'13 Q4'13 2013 Total Revenues Net of Interest Expense $7.9 $8.2 $8.3 $8.5 $33.0 Growth vs. Prior Year 4% 4% 6% 5% 4% FX Adjusted Growth vs. Prior Year† 5% 4% 7% 6% 5% Net Income $1.3 $1.4 $1.4 $1.3 $5.4 Diluted EPS* $1.15 $1

  3. Slide 3: Metric Trends

    Metric Trends % increase/(decrease) vs. prior year Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Billed Business* 8% 6% 7% 7% 8% Billed Business FX Adjusted** 7% 7% 8% 9% 9% Total Cards In Force 5% 5% 4% 4% 5% Card Member Loans 4% 4% 3% 2% 3% Worldwide Lending Write-off Rate† 2.0% 1.9% 2.0% 1.7% 1.6% * Card billed

  4. Slide 4: 2013 Volumes – Relative Performance

    2013 Volumes – Relative Performance Billed Business Ending Loans $ in billions $ in billions Growth Growth vs. PY 7% 10% 2% 6% 11% 4% vs. PY 1% 0% (3%) (11%) 3% 4% $952 $150 $128 $92 $81 $420 $67 $365 $53 $206 $201 $110 AXP JPM* Citi** BofA*** CapOne† Discover†† Citi** JPM* BofA*** CapOne† AXP Disco

  5. Slide 5: Cumulative Revenue Growth vs. Issuer Peers

    Cumulative Revenue Growth vs. Issuer Peers AXP Card Issuing Peers Indexed to 2010 Indexed to 2010 +6% CAGR 120 (2)% CAGR 100 100 94 2010 2013 2010 2013 Note: Issuing Competitors reflect rewards costs as a contra revenue item whereas the majority of AXP rewards costs are reported as an expense. Peers

  6. Slide 6: Adjusted Total Operating Expense Growth

    Adjusted Total Operating Expense Growth* % increase/(decrease) vs. prior year: 9% 8% <3% Annual Target 2% 0% 2010 2011 2012 2013 Note: Operating expense includes salaries and employee benefits, professional services, occupancy and equipment, communications, and other, net. *The growth rate of adjust

  7. Slide 7: Investment Outcomes

    ies: ' Investment Outcomes ® —— MY OFFERS AIVIERICAN EXPRESS <I LOYALTY PARTNER Bluebird z SemiS9 81b543 Fi elool Rex

  8. Slide 8: Strong Capital Position

    Strong Capital Position Percentage of Capital Generated Tier 1 Common Risk-Based Returned to Shareholders Capital Ratio* 98% 12.5% 12.3% 11.9% 81% 11.1% 56% 30% 2010 2011 2012 2013 2010 2011 2012 2013 Note: Payout Ratio is calculated by dividing the total amount returned to shareholders through divi

  9. Slide 9: 9

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  10. Slide 10: 2013 Total Shareholder Return

    2013 Total Shareholder Return 437% 120% 128% 90% 60% 57% 45% 32% 36% 1 Year 3 Year 5 Year AXP S&P 500 S&P Financials 2013 Total Shareholder Return reflects TSR as of 12/31/2013. Source: Bloomberg. 10

  11. Slide 11: Mantra for 2014

    = Mantra for 2014 @ crowth & efficiency @ Service

  12. Slide 12: Q1 2014 Highlights

    Q1 2014 Highlights  EPS of $1.33, up 16%  Total Revenues up 4% (5% FX Adjusted*)  Return on Average Equity of 28%  Worldwide Card Billings up 6% (7% FX Adjusted*)  Worldwide Card Member Loans up 3%  Global Net Write-off Rate: 1.7%**  Capital Ratios: well capitalized *See slide 2 for an explan

  13. Slide 13: Q1 Business Progress

    = Q1 Business Progress e a as 2 Pam OptBlue aa ab pe OVER $75 MILLION* SAVED WITH AMEX OFFERS *Worldwide Amex statistic for card-linked offer statement credits; Jan 2010-March 2014 FORTUNE TE SS WORLD'S MOST L ark ) >> iu GLOBAL BUSINESS TRAVEL 4 13

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  15. Slide 15: Annex 1

    Annex 1 Adjusted Diluted EPS Q4'12 Q4'13 2012 2013 ($ in millions except per share amounts) GAAP Net Income $ 637 $ 1,308 $ 4,482 $ 5,359 Adjustments for Q4'12 Charges (After-Tax) Restructuring Charges* $ 287 $ 287 Membership Rewards Estimation Process Enhancement Expense* $ 212 $ 212 Card Member Re

  16. Slide 16: Annex 2

    Annex 2 Adjusted Total Operating Expenses ($ in millions) 2009 2010 2011 2012 2013 GAAP Total Operating Expenses $9,619 $10,673 $11,964 $13,170 $12,709 Visa/MasterCard Settlement Payments 880 880 580 Net Investment in a Foreign Subsidiary 180 Q4'12 Charges: Restructuring Charges* (400) Adjusted Tota

  17. Slide 17: Annex 3

    Annex 3 Tier 1 Common Equity Reconciliation ($ in Millions) 2010 2011 2012 2013 Total Shareholders' Equity $16,230 $18,794 $18,886 $19,496 Effect of certain items in accumulated other comprehensive loss excluded from Tier 1 common equity 415 194 173 336 Less: Ineligible goodwill and intangible asset

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