American Express Shareholders’ Meeting
Kenneth I. Chenault Chairman & Chief Executive Officer
April 27, 2009
Financial Summary – 2008
% B/(W) vs.
2007
Net Income Total Revenues Net of Interest Expense Return on Common Equity
$2.7B
(33%)
$28.4B 22.1%
3%
2
Business Metrics – 2008
B/(W) vs.
2007
Total Cards-in-Force Billed Business1 Managed CM Loans2 Managed Lending Net Write-off Rate2
92.4M $683.3B $72.0B 5.4%
7% 6% (7%) (210)bp
1. Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on proprietary cards. 2. Managed basis includes owned and securitized loans. On a GAAP basis, owned loans were $42.2B and declined by 22% and the owned lending net write-off rate was 5.5% and increased by 200bp.
3
2008 Achievements
Settled Mastercard litigation Expanded Delta partnership Launched valuable international partnerships Grew Business-to-Business opportunity Maintained premium provider positioning Earned J.D. Power Customer Satisfaction Award
4
Management Actions
Restructuring Bank Holding Company Capital Purchase Program
5
Moderate to Long-Term Growth Opportunities
Focused, premium lending strategy Pay-in-full charge card product to support changing consumer behaviors Expansion of Business to Business products and services International growth for further diversification Further expansion of fee-based revenues
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Financial Summary – Q1 2009
% B/(W) vs.
Q1 2008
Net Income Total Revenues Net of Interest Expense Return on Common Equity
$437M
(56%)
$5.9B 16.7%
(18%)
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Business Metrics – Q1 2009
B/(W) vs.
Q1 2008
Total Cards-in-Force Billed Business1 Managed CM Loans2 Managed Lending Net Write-off Rate2
91.6M $139.2B $65.0B 8.2%
4% (16%) (13%) (390)bp
1. Card billed business includes activities (including cash advances) related to proprietary cards, cards issued under network partnership agreements, and certain insurance fees charged on proprietary cards. 2. Managed basis includes owned and securitized loans. On a GAAP basis, owned loans were $36.7B and declined by 26% and the owned lending net write-off rate was 8.0% and increased by 350bp.
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