American Express 2003 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2003 American Express annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

was highest among the top 20 global financial services companies by market capitalization;
•the quality of our earnings, which are driven by the strength of our core business results;
•our strong balance sheet;
•the realized benefits of our reengineering, which allowed us to increase our business-building investments
at a time when others were scaling back;
•the premium value we are providing to customers through new products and partnerships and by improve-
ments to existing capabilities;
•and, finally, the engagement of our employees.
All of this gives us confidence in our ability to capitalize on opportunities generated by a reinvigorated eco-
nomic environment. Equity markets are showing signs of continued strength, and retail investors are gaining
confidence. Corporations are increasing their travel and entertainment-related expenditures after three years of
containment. And, overall, the U.S. economy and many other global economies are forecasted to grow at healthy
rates this year.
Against this backdrop, we have a wide range of growth opportunities in our global payments and financial serv-
ices businesses. We think of these opportunities in three categories: organic growth, expanded opportunities
within our existing businesses, and targeted joint ventures and acquisitions.
Unlike many of our competitors, we have relied almost exclusively on organic growth over the past several years.
We are well positioned to continue to deliver strong organic growth in our core businesses at Travel Related Ser-
vices, particularly within our proprietary card businesses, at American Express Financial Advisors and at Amer-
ican Express Bank. At the same time, we have a number of expanded opportunities to accelerate growth in
certain parts of our business, including growth in the Corporate Middle Market and in our Global Network Ser-
vices business. Finally, as we did in 2003 with the acquisitions of Threadneedle and Rosenbluth International,
we will continue to consider opportunities to make targeted acquisitions that can help us accelerate growth strate-
gies in our core businesses. We believe we are in the best possible position to make acquisitions — not because
we need to, but because of our strength relative to the market.
With our strong competitive position and the range of growth opportunities in front of us, we are excited about
our future. Our actions have established a strong foundation for growth, and we are now ready to capitalize on
the momentum we have created. We will not let this opportunity pass.
Sincerely,
KENNETH I. CHENAULT
Chairman and Chief Executive Officer
February 23, 2004
(p.24_axp)