American Express Company · NYSE:AXP

American Express — Shareholder Meeting (May 2017)

17 slides from American Express's shareholder meeting presentation, May 1, 2017

  1. Slide 1: American Express Company 2017 Annual Shareholder Meeting

    American Express Company 2017 Annual Shareholder Meeting May 1, 2017

  2. Slide 2: Our Priorities

    Our Priorities ACCELERATE OPTIMIZE REDUCE OUR REVENUE GROWTH INVESTMENTS EXPENSE BASE 2

  3. Slide 3: Financial Performance

    Financial Performance ($ in millions; except per share amounts) FY'16 FY'16 FY'15 Inc/(Dec) Total Revenues Net of Interest Expense $32,119 $32,818 (2%) Adjusted for FX* $32,415 (1%) Adjusted for Costco & FX** 5% Diluted EPS*** $5.65 $5.05 12% 2016 Restructuring (Per Share)† $0.28 2015 Impairment & O

  4. Slide 4: Metric Trends

    Metric Trends % increase/(decrease) vs. prior year 2014 2015 2016 Billed Business 7% 2% (0%) Adjusted Billed Business* 9% 7% 8% Card Member Loans (17%) 5% 11% Adjusted Card Member Loans † 7% Worldwide Lending Write-off Rate 1.5% 1.4% 1.6% *2014 Billed Business FX-Adjusted. See slide 3 for an explana

  5. Slide 5: Business Performance Highlights

    Business Performance Highlights  Proprietary Card Acquisition  Merchant Network Expansion  International Billings Strength  Growth in Lending  Operating Expense Management  Service Commitment  Capital Strength  Appeals Court Ruling 5

  6. Slide 6: Q1 2017 Highlights

    Q1 2017 Highlights  EPS of $1.34  Total Adjusted Revenues up 7%**  Return on Average Equity of 25%  Worldwide Adjusted Card Billings up 8% †  FX-Adjusted Worldwide Total Loans up 12%*  Global Lending Net Write-off Rate: 1.7% ††  Capital Ratios: well capitalized *See slide 3 for an explanation

  7. Slide 7: 7

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  8. Slide 8: Annex 1: Revenue Net of Interest Adjusted for FX and Costco

    Annex 1  Revenue Net of Interest Adjusted for FX and Costco ($ in billions) 2015 2016 Q4’15 Q4’16 Q1’16 Q1’17 GAAP Revenue Net of Interest Expense $32.9 $32.1 $8.4 $8.0 $8.1 $7.9 Est. Costco-Related Revenue* (~$3.2) (~$1.2) (~$0.8) - (~$0.7) - Revenue Net of Interest Excluding Costco $29.7 $30.9 $7

  9. Slide 9: Annex 2: Billed Business – Reported & FX-Adjusted

    Annex 2  Billed Business – Reported & FX-Adjusted* % Increase/(decrease) vs. prior year 2014 2015 2016 Q1’17 Worldwide Reported 7% 2% (0%) (1%) FX-Adjusted 9% 6% 1% 0% Worldwide Excl. Costco** Reported 2% 6% 8% FX-Adjusted 7% 8% 8% *See Slide 3 for an explanation of FX-adjusted information. **Exclu

  10. Slide 10: Annex 3: Adjusted Card Member Loan Growth

    Annex 3  Adjusted Card Member Loan Growth ($ in billions) 2014 2015 Card Member Loans Held for Investment $70.4 $58.6 Loans Held for Investment related to Costco in the $15.8 U.S. and JetBlue Card Member Loans excl. Loans Held for Investment $54.6 $58.6 related to Costco in the U.S. and JetBlue* Yo

  11. Slide 11: Annex 4: FY'16 EPS

    Annex 4 FY’16 EPS Range FY’16 GAAP EPS $5.65 Q1'16 Restructuring Charge per share (pre-tax)* $0.08 Q2'16 Restructuring Charge per share (pre-tax)* $0.25 Q3'16 Restructuring Charge per share (pre-tax)* $0.05 Q4'16 Restructuring Charge per share (pre-tax)* $0.05 Q1'16 Tax impact of Restructuring charg

  12. Slide 12: Annex 5: Adjusted Total Operating Expense

    Annex 5 Adjusted Total Operating Expense ($ in billions) 2015 2016 GAAP Total Operating Expenses 11.8 10.4 FX-Adjusted Total Operating Expenses 11.6 Gain on Sale of Costco Portfolio 1.1 Restructuring Charges (0.4) Prepaid Business Services Impairment Charge (0.4) FX-Adjusted Adjusted Total Operating

  13. Slide 13: Forward Looking Statements

    Forward Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address the Company’s expected business and financial perfo

  14. Slide 14: Forward Looking Statements

    Forward Looking Statements • changes in the substantial and increasing worldwide competition in the payments industry, including competitive pressure that may impact the prices charged to merchants that accept American Express cards, competition for cobrand relationships and the success of marketing

  15. Slide 15: Forward Looking Statements

    Forward Looking Statements • the ability to reduce annual operating expenses in 2017 as well as the trajectory for 2017, which could be impacted by the need to increase significant categories of operating expenses, such as consulting or professional fees, including as a result of increased litigatio

  16. Slide 16: Forward Looking Statements

    Forward Looking Statements • the ability of the Company to grow internationally, which could be impacted by regulation and business practices, such as those favoring local competitors or prohibiting or limiting foreign ownership of certain businesses, the Company’s ability to partner with additional

  17. Slide 17: Forward Looking Statements

    Forward Looking Statements • factors beyond the Company’s control such as changes in global economic and business conditions, consumer and business spending, the availability and cost of capital, unemployment rates, geopolitical conditions (including potential impacts resulting from the proposed exi

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