American Express 2002 Annual Report Download - page 26

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Summary
In many ways, 2002 was a transformational year for
American Express. We made fundamental changes to
our business models, increased our financial strength,
and enhanced our ability to generate growth over the
moderate to long term.
Given the challenges we faced throughout 2001 and
2002, our organization has become stronger. Our
sense of urgency has increased, but we have not lost
sight of our fundamental character in the process.
We gained a great deal of momentum in 2002, both in
terms of our financial performance, and in the actions
we took in the marketplace to build competitive
advantages, add and deepen customer relationships,
broaden our array of products and services that offer
superior value, and expand partnerships that benefit
our customers. We are on the offense at a time when
many of our competitors are distracted with the
pressures of the difficult environment or are dealing
with some fundamental questions about their business
models or practices.
Overall, we adapted well to the challenging environ-
ment. Nevertheless, we started 2003 with the same
cautious views that we held in 2002, and we expect
continued uncertainty in the economy, consumer con-
fidence and the financial markets. In addition, we face
the prospect of war in Iraq and other geopolitical
uncertainty, which could have a negative impact on the
economy and our business.
While I am not optimistic about a recovery in the
economy during 2003, I remain very optimistic about
our future for a number of reasons, including: the
strength and flexibility of our business models; the
range of growth opportunities we have and the priority
we have placed on pursuing them; and the talent and
direction of our organization. I believe these elements
will enable us to win in the marketplace and to deliver
strong, long-term value to our shareholders.
Sincerely,
KENNETH I. CHENAULT
Chairman and Chief Executive O fficer
FEBRUARY 24, 2003
I24 AXPI