Fourth Quarter EPS of
$0.88 Reflects Solid Loan Growth and Card Member Spending along
with Higher Investment Levels
Revenue Performance
Improves Sequentially
Company Expects 2017
EPS of $5.60 to $5.80
(Millions, except percentages and per share
amounts)
American Express Company (NYSE:AXP) today reported
fourth-quarter diluted earnings per share of $0.88, down 1 percent
from $0.89 a year ago. Excluding a restructuring charge related to
cost reduction efforts, adjusted diluted earnings per share was
$0.91.2
Quarters EndedDecember 31,
PercentageInc/(Dec)
Years EndedDecember 31,
PercentageInc/(Dec)
2016 2015
2016 2015 Total Revenues Net of
Interest Expense $ 8,022 $ 8,391 (4) $
32,119 $ 32,818 (2) Net Income $ 825 $
899 (8) $ 5,408 $ 5,163 5 Earnings Per
Common Share – Diluted:
Net Income Attributable to Common
Shareholders1
$ 0.88 $ 0.89 (1) $ 5.65 $ 5.05
12 Average Diluted Common Shares Outstanding
913 981 (7) 935
1,003 (7) Return on Average Equity 26.0%
24.0% 26.0%
24.0%
Fourth-quarter net income was $825 million, down 8 percent from
$899 million a year ago.
The current quarter included higher spending on growth
initiatives, largely reflected in marketing and promotion expenses.
The company showed significant progress on its plans to reduce its
cost base by $1 billion. Credit quality remained strong, and the
company continued to return a substantial amount of capital to its
shareholders through share repurchases and dividends.
Fourth-quarter consolidated total revenues net of interest
expense were $8.0 billion, down 4 percent from $8.4 billion a year
ago. Excluding last year’s Costco-related business and the effect
of foreign exchange rates due to the impact of a stronger U.S.
dollar on international operations during the quarter, adjusted
revenues net of interest expense increased 6 percent.3 That
increase primarily reflected higher adjusted Card Member spending
and adjusted net interest income.
Consolidated provisions for losses were $625 million, up 9
percent from $572 million a year ago, primarily reflecting higher
loan growth. The prior year included credit costs associated with
cobrand portfolios that were subsequently sold. Excluding the
impact of those portfolios, adjusted provisions for losses
increased 20 percent,4 primarily reflecting higher loan growth and
a slight increase in both lending delinquency and net write-off
rates.
Consolidated expenses were $6.2 billion, down 2 percent from
$6.4 billion a year ago. The prior year included an impairment and
restructuring charge of $419 million ($335 million after-tax) as
well as Costco-related rewards costs. The current quarter reflected
substantially higher levels of investment spending on growth
initiatives and a $50 million ($32 million after-tax) restructuring
charge mentioned above.
The effective tax rate for the quarter was 29 percent, down from
38 percent a year ago. The decrease primarily reflected the
resolution of certain prior years’ tax items in the current period,
and non-deductible impairment charges in the prior period.
The company’s return on average equity (ROE) was 26.0 percent,
up from 24.0 percent a year ago.
For the full year, the company reported net income of $5.4
billion, up 5 percent from $5.2 billion a year ago. Diluted
earnings per share was $5.65, compared to $5.05 a year ago.
Excluding restructuring charges related to cost reduction efforts,
adjusted diluted earnings per share was $5.93.2 Earnings for the
full year were within the company’s 2016 guidance range.
Revenues net of interest expense for the full year decreased 2
percent to $32.1 billion, from $32.8 billion a year ago. Excluding
last year’s Costco-related business and the impact of foreign
exchange rates, adjusted revenues net of interest expense increased
5 percent. 3
For the full year, consolidated expenses decreased 4 percent to
$22.0 billion from $22.9 billion a year ago.
“At the start of 2016 we said we would move with a strong sense
of urgency to change the trajectory of our business,” said Kenneth
I. Chenault, chairman and chief executive officer. “The results
we’re reporting today reflect substantial progress on that
commitment. Revenue performance strengthened sequentially and
showed year-over-year growth on an adjusted basis. We are ahead of
plans to reset our cost base and improve our operating efficiency.
We were able to make substantial investments to capitalize on
opportunities in the marketplace and strengthen our competitive
position.
“Earnings per share for 2016 were well above the range we
provided at the start of the year and consistent with our revised
outlook from last quarter. Our underlying business performance gave
us the flexibility to significantly ramp up marketing and promotion
initiatives that have been targeted to provide a mix of returns
over the short, medium and longer term.
“Card Member spending (adjusted for Costco and the impact of
foreign exchange rates) grew 7 percent in the fourth quarter. That
increase reflects continued strength in our international markets,
accelerated growth among small and mid-sized companies and strong
long-term relationships with higher spending consumers. We
continued to grow our lending portfolio faster than the market
while maintaining industry-leading credit metrics. We acquired over
10 million new cards globally last year, and we added more than a
million new merchants to our network in the United States
alone.
“While we continue to operate in a very challenging environment,
we ended the year in a stronger position than we started and have
built momentum across our business. There is still more work to do,
but given our progress to date, we expect EPS for 2017 to be
between $5.60 and $5.80. That outlook is built on a set of
priorities designed to put us in a strong position for 2018 and the
years ahead.”
Segment Results
U.S. Consumer Services reported fourth-quarter net income
of $351 million, down 35 percent from $541 million a year ago. The
year-ago period included Costco-related revenues, provisions and
expenses.
Total revenues net of interest expense decreased 10 percent to
$3.0 billion, from $3.4 billion a year ago.
Provisions for losses totaled $363 million, up 9 percent from
$334 million a year ago. The increase primarily reflected higher
loan growth and a slight increase in both lending delinquency and
net write-off rates.
Total expenses were $2.2 billion, down 1 percent. The current
quarter included substantially higher investment spending on growth
initiatives. The year-ago quarter included Costco-related rewards
costs.
The effective tax rate was 27 percent compared to 35 percent a
year ago, driven primarily by the impact of recurring permanent tax
benefits on lower levels of pre-tax income and the resolution of
certain prior years’ tax items.
International Consumer and Network Services reported
fourth-quarter net income of $84 million, down 40 percent from $140
million a year ago, primarily reflecting higher investment spending
on growth initiatives.
Total revenues net of interest expense were $1.4 billion, up 2
percent (up 7 percent FX-adjusted5) from a year ago. The increase
primarily reflected higher Card Member spending.
Provisions for losses totaled $92 million, up 19 percent from
$77 million a year ago, reflecting a slight increase in lending net
write-off rates.
Total expenses were $1.2 billion, up 10 percent (up 14 percent
FX-adjusted5) from $1.1 billion a year ago. The increase reflected
higher investment spending on growth initiatives.
The effective tax rate was (2) percent, compared to 24 percent a
year ago. The change versus prior year reflected the impact of
recurring permanent tax benefits on lower levels of pre-tax income
in the current year.
Global Commercial Services reported fourth-quarter net
income of $382 million, down 22 percent from $487 million a year
ago. The year-ago period included Costco-related revenues,
provisions and expenses.
Total revenues net of interest expense were $2.5 billion, up 1
percent from a year ago, reflecting higher Card Member
spending.
Provisions for losses totaled $171 million, up 12 percent from
$153 million a year ago.
Total expenses were $1.8 billion, up 14 percent from $1.6
billion a year ago. The increase reflected higher investment
spending on growth initiatives, as well as an increase in rewards
expenses.
The effective tax rate was 30 percent, down from 36 percent a
year ago, driven primarily by the impact of recurring permanent tax
benefits on lower levels of pre-tax income and the resolution of
certain prior years’ tax items.
Global Merchant Services reported fourth-quarter net
income of $369 million, up 1 percent from $364 million a year
ago.
Total revenues net of interest expense were $1.1 billion, down 7
percent from $1.2 billion a year ago. The year-ago period included
Costco-related revenues.
Total expenses were $560 million, down 10 percent from $621
million a year ago. The current quarter reflected lower fraud
expenses, while the prior year included higher investment spending
in the Loyalty Coalition business.
The effective tax rate was 34 percent, down from 37 percent from
a year ago.
Corporate and Other reported fourth-quarter net loss of
$361 million compared with net loss of $633 million a year ago,
which included the previously mentioned impairment charge.
About American Express
American Express is a global services company, providing
customers with access to products, insights and experiences that
enrich lives and build business success. Learn more at
americanexpress.com, and connect with us on
facebook.com/americanexpress, foursquare.com/americanexpress,
linkedin.com/company/american-express, twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products, services and corporate responsibility
information: charge and credit cards, business credit cards, Plenti
rewards program, travel services, gift cards, prepaid cards,
merchant services, Accertify, corporate card, business travel, and
corporate responsibility.
This earnings release should be read in conjunction with the
Company’s statistical tables for the fourth-quarter 2016, available
on the American Express website at
http://ir.americanexpress.com and in a Form 8-K filed
today with the Securities and Exchange Commission.
An investor conference call will be held at 5:00 p.m. (ET) today
to discuss fourth-quarter earnings results. Live audio and
presentation slides for the investor conference call will be
available to the general public on the above-mentioned American
Express Investor Relations website. A replay of the conference call
will be available later today at the same website address.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This release 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 performance and which include management’s outlook for
2017, among other matters, contain words such as “believe,”
“expect,” “estimate,” “anticipate,” “intend,” “plan,” “aim,”
“will,” “may,” “should,” “could,” “would,” “likely” and similar
expressions. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
on which they are made. The Company undertakes no obligation to
update or revise any forward-looking statements. Factors that could
cause actual results to differ materially from these
forward-looking statements, include, but are not limited to, the
following:
- the Company’s ability to achieve its
2017 earnings per common share outlook as well as the Company’s
quarterly earnings expectations for 2017, which will depend in part
on the following: revenues growing consistently with current
expectations, which could be impacted by, among other things,
weakening economic conditions in the United States or
internationally, a decline in consumer confidence impacting the
willingness and ability of Card Members to sustain and grow
spending, a further strengthening of the U.S. dollar, a greater
erosion of the average discount rate than expected, a greater
impact on discount revenue from cash back and cobrand partner and
client incentive payments, more cautious spending by large and
global corporate Card Members, lower spending on new cards acquired
than estimated and an inability of the Company to capitalize on
investment momentum, capabilities and efficiencies as it moderates
marketing and promotion spend in 2017; the Company’s success in
addressing competitive pressures and implementing its strategies
and business initiatives, including growing profitable spending
from new and existing Card Members, increasing penetration among
middle market and small business clients, expanding the Company’s
international footprint and increasing merchant acceptance; the
level of spend in bonus categories on rewards-based and/or
cash-back cards and redemptions of Card Member rewards and offers;
the impact of any future restructuring charges or other
contingencies, including, but not limited to, litigation-related
settlements, judgments or expenses, impairments, the imposition of
fines or civil money penalties, an increase in Card Member
reimbursements and changes in reserves; write-downs of deferred tax
assets as a result of tax law or other changes; credit performance
remaining consistent with current expectations; continued growth of
Card Member loans; the ability to continue to realize benefits from
restructuring actions and operating leverage at levels consistent
with current expectations; the amount the Company spends on growth
initiatives and the Company’s ability to drive growth from such
investments; changes in interest rates beyond current expectations
(including the impact of hedge ineffectiveness); the impact of
regulation and litigation, which could affect the profitability of
the Company’s business activities, limit the Company’s ability to
pursue business opportunities, require changes to business
practices or alter the Company’s relationships with partners,
merchants and Card Members; the Company’s tax rate being in the
33-34% range, which could be impacted by, among other things, the
Company’s geographic mix of income being weighted more to higher
tax jurisdictions than expected, changes in tax laws and regulation
and unfavorable tax audits and other unanticipated tax items; the
impact of accounting changes and reclassifications; and the
Company’s ability to continue executing its share repurchase
program;
- the actual amount to be spent on
marketing and promotion, which will be based in part on
management’s assessment of competitive opportunities; overall
business performance; prior commitments, contractual obligations
with business partners and other fixed costs relative to revenue
levels; management’s ability to identify attractive investment
opportunities and make such investments, which could be impacted by
business, regulatory or legal complexities; and the Company’s
ability to realize efficiencies, optimize investment spending and
control expenses to fund such spending;
- the Company’s rewards expense and cost
of Card Member services growing faster than expectations, which
will depend in part on the behavior of the Company’s Card Members
as it relates to their spending patterns and usage and redemption
behaviors, as well as the degree of interest of Card Members in the
value proposition offered by the Company; increasing competition;
the Company’s ability to enhance card products and services to make
them attractive to Card Members; and the amount the Company spends
on the promotion of enhanced services and rewards categories and
the success of such promotion;
- the ability of the Company to reduce
its overall cost base by $1 billion on a run rate basis by the end
of 2017, which will depend in part on the timing and financial
impact of reengineering plans, which could be impacted by factors
such as the Company’s inability to mitigate the operational and
other risks posed by potential staff reductions, the Company’s
inability to develop and implement technology resources to realize
cost savings and underestimating hiring and other employee needs;
the ability of the Company to reduce annual operating expenses,
which could be impacted by, among other things, the factors
identified below; and the ability of the Company to optimize and
lower marketing and promotion expenses, which could be impacted by
higher advertising and Card Member acquisition costs, competitive
pressures that may require additional expenditures or limit the
Company’s ability to reduce costs, an inability to shift
acquisition to digital channels, the availability of opportunities
to invest at a higher level due to favorable business results and
changes in macroeconomic conditions;
- the ability to reduce annual operating
expenses in 2017, which could be impacted by increases in
significant categories of operating expenses, such as consulting or
professional fees, including as a result of increased litigation,
compliance or regulatory-related costs, technology costs or fraud
costs; the ability of the Company to develop, implement and achieve
substantial benefits from reengineering plans; higher than expected
employee levels; the impact of changes in foreign currency exchange
rates on costs; the payment of civil money penalties, disgorgement,
restitution, non-income tax assessments and litigation-related
settlements; impairments of goodwill or other assets; management’s
decision to increase or decrease spending in such areas as
technology, business and product development and sales forces
depending on overall business performance; greater than expected
inflation or merit increases; the Company’s ability to balance
expense control and investments in the business; the impact of
accounting changes and reclassifications; and the level of M&A
activity and related expenses;
- the Company’s write-off rates and
growth of provision expense being higher than current expectations,
which will depend in part on changes in the level of loan balances,
delinquency rates, mix of loan balances, loans related to new Card
Members and other borrowers performing as expected, unemployment
rates, the volume of bankruptcies and recoveries of previously
written-off loans;
- the Company’s ability to execute
against its lending strategy to grow loans, which may be affected
by increasing competition, brand perceptions and reputation, the
Company’s ability to manage risk in a growing Card Member loan
portfolio, and the behavior of Card Members and their actual
spending and borrowing patterns, which in turn may be driven by the
Company’s ability to issue new and enhanced card products, offer
attractive non-card lending products, capture a greater share of
existing Card Members’ spending and borrowings, reduce Card Member
attrition and attract new customers;
- the possibility that the Company will
not fully execute on its plans for OptBlue to significantly
increase merchant coverage, which will depend in part on the
success of OptBlue merchant acquirers in signing merchants to
accept American Express, which could be impacted by the pricing set
by the merchant acquirers, the value proposition offered to small
merchants and the efforts of OptBlue merchant acquirers to sign
merchants for American Express acceptance, as well as the awareness
and willingness of Card Members to use American Express cards at
small merchants and of those merchants to accept American Express
cards;
- the ability of the Company to capture
small business and middle market spending, which will depend in
part on the willingness and ability of companies to use credit and
charge cards for procurement and other business expenditures,
perceived or actual difficulties and costs related to setting up
card-based B2B payment platforms, the ability of the Company to
offer attractive value propositions and card products to potential
customers, competition, the Company’s ability to enhance and expand
its payment solutions, and the effectiveness of the Company’s
marketing and promotion of its corporate payment solutions and
small business card products to potential customers;
- 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 GNS issuers and the success of
GNS partners in acquiring Card Members and/or merchants, political
or economic instability, which could affect lending and other
commercial activities, the Company’s ability to tailor products and
services to make them attractive to local customers, and
competitors with more scale and experience and more established
relationships with relevant customers, regulators and industry
participants;
- the Company’s ability to attract and
retain Card Members as well as capture the spending and borrowings
of our customers, including former Costco cobrand Card Members,
consistent with current expectations, which will be impacted in
part by competition, brand perceptions (including perceptions
related to merchant coverage) and reputation and the ability of the
Company to develop and market value propositions that appeal to
Card Members and new customers and offer attractive services and
rewards programs, which will depend in part on ongoing investment
in marketing and promotion expenses, new product innovation and
development, acquisition efforts and enrollment processes,
including through digital channels, and infrastructure to support
new products, services and benefits;
- the erosion of the average discount
rate by a greater amount than anticipated, including as a result of
further expansion of the OptBlue program, changes in the mix of
spending by location and industry, merchant negotiations (including
merchant incentives, concessions and volume-related pricing
discounts), competition, pricing regulation (including regulation
of competitors’ interchange rates in the European Union and
elsewhere) and other factors;
- changes affecting the ability or desire
of the Company to return capital to shareholders through dividends
and share repurchases, which will depend on factors such as
approval of the Company’s capital plans by its primary regulators,
the amount the Company spends on acquisitions and the Company’s
results of operations and capital needs in any given period;
- legal and regulatory developments,
including with regard to actions by the CFPB and other regulators,
broad payment system regulatory regimes and the stricter regulation
of financial institutions, which could require the Company to make
fundamental changes to many of its business practices; result in
increased costs related to regulatory oversight, litigation-related
settlements, judgments or expenses, restitution to Card Members or
the imposition of fines or civil money penalties; materially affect
capital or liquidity requirements, results of operations, or
ability to pay dividends or repurchase our stock; or result in harm
to the American Express brand; and
- 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 exit of the U.K. from
the European Union), foreign currency rates and interest rates, as
well as fire, power loss, disruptions in telecommunications, severe
weather conditions, natural disasters, health pandemics, terrorism,
cyber attacks or fraud, all of which could significantly affect
spending on American Express cards, delinquency rates, loan
balances and results of operation or disrupt the Company’s global
network systems and ability to process transactions.
A further description of these uncertainties and other risks can
be found in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2015, the Company’s Quarterly Reports on Form
10-Q for the quarters ended March 31, June 30 and September 30,
2016 and the Company’s other reports filed with the Securities and
Exchange Commission.
1 Represents net income, less (i) earnings allocated to
participating share awards of $6 million for both the three months
ended December 31, 2016 and 2015 and $43 million and $38 million
for the years ended December 31, 2016 and 2015, respectively, and
(ii) dividends on preferred shares of $19 million and $20 million
for the three months ended December 31, 2016 and 2015,
respectively, and $80 million and $62 million for the years ended
December 31, 2016 and 2015, respectively.
2 Adjusted diluted earnings per share (EPS), a non-GAAP measure,
excludes a $50 million pretax restructuring charge ($32 million
after-tax) for the three months ended December 31, 2016 and $410
million pretax restructuring charges ($266 million after-tax) for
the year ended December 31, 2016. Management believes adjusted EPS
is useful in evaluating the ongoing operating performance of the
company and the company’s performance against its 2016 EPS outlook
originally provided in the company’s Q4’15 earnings release on
January 21, 2016, at which point restructuring charges and other
contingencies were not estimable and thus not included in the
outlook. See Appendix I for a reconciliation to EPS on a GAAP
basis.
3 Adjusted revenues net of interest expense on an FX-adjusted
basis, a non-GAAP measure, excludes from prior-year results
estimated revenues from Costco in the United States, Costco U.S.
cobrand Card Members and other merchants for out-of-store spend on
the Costco cobrand card. Management believes adjusted revenues net
of interest expense is useful in evaluating the ongoing operating
performance of the company following the end of the Costco U.S.
relationship. See footnote 5 for an explanation of FX-adjusted
information and Appendix I for a reconciliation to total revenues
net of interest expense on a GAAP basis.
4 Adjusted provisions for losses excludes from prior-year
results Card Member balances related to cobrand partnerships with
Costco in the United States and JetBlue, which were reclassified as
held for sale effective December 2015. See Appendix I for
reconciliations to consolidated provision for losses, on a GAAP
basis. Management believes the presentation of adjusted provision
for losses is useful in evaluating the ongoing performance of the
company’s loan portfolio.
5 As reported in this release, FX-adjusted information assumes a
constant exchange rate between the periods being compared for
purposes of currency translations into U.S. dollars (i.e., assumes
the foreign exchange rates used to determine results for the three
months ended December 31, 2016 apply to the period(s) against which
such results are being compared). FX-adjusted revenues and expenses
constitute non-GAAP measures. Management believes the presentation
of information on an FX-adjusted basis is helpful to investors by
making it easier to compare the company’s performance in one period
to that of another period without the variability caused by
fluctuations in currency exchange rates.
American
Express Company
(Preliminary)
Appendix I Reconciliations of Adjustments (Millions,
except percentages, per share information and where indicated)
Q4'16 Q4'15
YOY %Change
YTD'16 YTD'15
YOY %Change
Adjusted Total
Revenues Net of Interest Expense (millions)
Total revenues net of interest expense $ 8,022
$ 8,391 (4) $ 32,119 $
32,818 (2) Estimated Costco-related revenues
(A) - 757
1,193 3,057 Adjusted Total
revenues net of interest expense $ 8,022 $
7,634 5 $ 30,926 $ 29,761
4 FX-adjusted, adjusted Total revenues net of interest
expense (B) $ 8,022 $ 7,535
6 $ 30,926 $ 29,358 5
Adjusted Total
Provisions for Losses
Total provisions for losses $ 625 $
572 9 $ 2,026 $ 1,988
2 Costco and JetBlue-related provisions (C)
- (49 ) -
(192 ) Adjusted Total provisions for
losses $ 625 $ 523 20
$ 2,026 $ 1,796 13
Earnings per
Share (EPS)
EPS $ 0.88 $ 5.65
Restructuring charge per share (pre-tax) 0.05
0.43 Tax impact of restructuring charge per share
(0.02 ) (0.15 )
Restructuring charge per share (after-tax) $
0.03 $ 0.28 Adjusted EPS -
normalized for restructuring charges $ 0.91
$ 5.93
Adjusted
Worldwide Billed Business (billions)
Worldwide billed business $ 263.2 $
273.2 (4) Estimated Costco-related billed business
(D) - 24.8
Adjusted worldwide billed business $ 263.2
$ 248.4 6
FX-adjusted, adjusted worldwide billed
business (B)
$ 263.2 $ 245.6 7
2016 Earnings per
Share (EPS) Outlook
FY'16 EPS Range US GAAP EPS Outlook - Including YTD
Restructuring (E) $ 5.62 $
5.72 Q1'16 restructuring charge per share
(pre-tax) 0.08 0.08 Tax impact of Q1'16
restructuring charge per share (0.03 )
(0.03 ) Q1'16 restructuring charge per
share (after-tax) $ 0.05 $
0.05 Q2'16 restructuring charge per share
(pre-tax) 0.25 0.25 Tax impact of Q2'16
restructuring charge per share (0.09 )
(0.09 ) Q2'16 restructuring charge per
share (after-tax) $ 0.16 $
0.16 Q3'16 restructuring charge per share
(pre-tax) 0.05 0.05 Tax impact of Q3'16
restructuring charge per share (0.01 )
(0.01 ) Q3'16 restructuring charge per
share (after-tax) $ 0.04 $
0.04 Q4'16 restructuring charge per share
(pre-tax) 0.05 0.05 Tax impact of Q4'16
restructuring charge per share (0.02 )
(0.02 ) Q4'16 restructuring charge per
share (after-tax) $ 0.03 $
0.03 EPS Outlook excluding restructuring charges
and other contingencies $ 5.90 $
6.00 (A) Represents estimated Discount
revenue from Costco in the United States for spend on American
Express cards and from other merchants for spend on the Costco
cobrand card, as well as Other fees and commissions and Interest
income from Costco cobrand Card Members. (B) FX-adjusted
information assumes a constant exchange rate between the periods
being compared for purposes of currency translation into U.S.
dollars (i.e. assumes the foreign exchange rates used to determine
results for Q4'16 apply to the period against which such results
are being compared). The Company believes the presentation of
information on an FX-adjusted basis is helpful to investors by
making it easier to compare the Company's performance in one period
to that of another period without the variability caused by
fluctuations in currency exchange rates. (C) Beginning December 1,
2015, through to the sale completion dates, Total provisions for
losses did not reflect the held for sale portfolios, as credit
costs were reported in Other, net expense through a valuation
allowance adjustment. (D) Represents Costco cobrand card billed
business (in-store and out-of-store) and billed business on other
(non-Costco cobrand) American Express cards at Costco in the United
States. (E) Reflects restructuring charges recognized in 2016.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170119006132/en/
American Express CompanyMedia:Marina H. Norville,
+1-212-640-2832marina.h.norville@aexp.comorInvestors/Analysts:Ken
Paukowits, +1-212-640-6348ken.f.paukowits@aexp.comorToby Willard,
+1-212-640-5574sherwood.s.willardjr@aexp.com
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