American Express Company · NYSE:AXP

American Express — Shareholder Meeting (May 2016)

16 slides from American Express's shareholder meeting presentation, May 2, 2016

  1. Slide 1: American Express Company 2016 Annual Shareholder Meeting

    American Express Company 2016 Annual Shareholder Meeting May 2, 2016

  2. Slide 2: Financial Performance

    Financial Performance ($ in billions; except per share amounts) FY'15 FY'15 FY'14 Inc/(Dec) Total Revenues Net of Interest Expense $32.8 $34.2 (4%) Adjusted for FX, GBT & Concur* $31.5 4% Diluted EPS $5.05 $5.56 (9%) Adj. Diluted EPS† $5.38 Return on Average Equity 24% 29% * FX-adjusted information

  3. Slide 3: Metric Trends

    Metric Trends % increase/(decrease) vs. prior year 2013 2014 2015 Billed Business 7% 7% 2% Billed Business FX Adjusted* 8% 9% 6% Card Member Loans (17%) 3% 5% Adjusted Card Member Loans † 7% Worldwide Lending Write-off Rate 1.8% 1.5% 1.4% * See slide 2 for an explanation of FX-adjusted information.

  4. Slide 4: Business Performance Highlights

    Business Performance Highlights  Pro-active in the co-brand space  Expense Management  Card Member Acquisition  Investment in International  Merchant Network Expansion  Growth in Lending  Digital Capabilities and Partnerships  Streamlined Management Structure  Service Commitment

  5. Slide 5: 5

    5

  6. Slide 6: Q1 2016 Highlights

    Q1 2016 Highlights  EPS of $1.45, down 2%  Total Revenues up 2% (up 4% FX-Adjusted*)  Return on Average Equity of 24%  Worldwide Card Billings up 3% (up 6% FX-Adjusted*)**  Worldwide Total Loans down 14% (up 11% Adjusted †)  Global Net Write-off Rate: 1.5% † †  Capital Ratios: well capitalize

  7. Slide 7: 7

    7

  8. Slide 8: Annex 1

    Annex 1  Revenue Net of Interest Adjusted for FX, Global Business Travel and Concur ($ in billions) 2014 2015 Q1’15 Q1’16 GAAP Revenue Net of Interest Expense $34.2 $32.8 $8.0 $8.1 ($0.7) Global Business Travel Revenue Net of Interest* Q4’14 Gain on Sale of Concur Investment ($0.7) Revenue Net of I

  9. Slide 9: Annex 2

    Annex 2  Adjusted Net Income & Diluted EPS ($ in millions) Q4’15 FY’15 Net Income $899 $5,163 Q4’15 Enterprise Growth Impairment Charge, After-tax* $335 $335 Adjusted Net Income $1,234 $5,498 Adjusted Net Income Attributable to $1,208 $5,398 Common Shareholders Diluted EPS Attributable to Common Sh

  10. Slide 10: Annex 3

    Annex 3  Billed Business – Reported & FX-Adjusted* % Increase/(decrease) vs. prior year 2013 2014 2015 Q1’16 Worldwide Reported 7% 7% 2% 3% FX-Adjusted 8% 9% 6% 6% *See slide 2 for an explanation of FX-adjusted information. 10

  11. Slide 11: Annex 4

    Annex 4  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

  12. Slide 12: Annex 5

    Annex 5  Adjusted Total Loan Growth ($ in billions) Q1’15 Q1’16 Total Loans Held for Investment $67.8 $58.6 Loans Held for Investment related to Costco in the $14.6 U.S. and JetBlue Total Loans excl. Loans Held for Investment related to $53.2 $58.6 Costco in the U.S. and JetBlue* FX-Adj. Total Loan

  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  the actual amount to be spent on growth initiatives, as well as the timing of any such spending, which will be based in part on management’s assessment of competitive opportunities, overall business performance, the amount of any potential gain arising from a sale of the

  15. Slide 15: Forward Looking Statements

    Forward Looking Statements  the Company’s ability to execute against its lending strategy to grow Card Member loans held for investment as well as merchant financing and other non-card loans without changing the overall risk profile of the Company as well as non-card loans, which may be affected by

  16. Slide 16: Forward Looking Statements

    Forward Looking Statements  changes affecting the ability or desire of the Company to return capital to shareholders through dividends and share repurchases, including the opportunity for incremental capital returns related to the Costco U.S. portfolio sale, which will depend on factors such as app

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