American Express 2008 Annual Report Download - page 12

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american express company
10
broad range of financial services, we are not taking
losses on mortgages or commercial lending. Our
income statement is not as affected by market
volatility on investment values. The bricks-and-
mortar bank model does bring low-cost customer
deposits, but these deposits can come at a steep
price in terms of risk and other issues. I prefer
the focus of our model and the financial profile
of our company, which position us well for the
road ahead.
in closing
But first, we have to manage through today’s
exceptionally difficult environment, which prom-
ises to get even tougher in 2009. That’s why, as
I’ve just described, our short-term focus is very
much on staying liquid, staying profitable and
investing selectively for growth. Within this
framework, some of our top priorities include
attracting and retaining more high-value con-
sumer and business-to-business customers,
providing them with excellent service, enhancing
the rewards programs and products we offer to
them, and creating new ways and places for
them to use American Express cards. We will
use our global reach and powerful brand to form
new and valuable partnerships. We will increase
our emphasis on B2B through our payments,
expense management and travel offerings. We
will work to further realize the potential of our
global transaction-processing network. And we
will explore new ways to expand our capabilities
and revenue streams.
Most of all, we will work very hard to regain
value for our shareholders. This has been a pain-
ful year for most investors, including those who
own American Express. I know our shareholders
cannot be pleased with the performance of our
stock this year. Like the shares of most other
financial services companies, ours were hit hard
and trailed the major market indices by a wide
margin. I can’t predict when our shares will
rebound, but I do believe this company has a
great deal of growth potential over the medium
to long term. We also have an exceptionally
strong and dedicated team of employees around
the world who are focused on not just getting
through tough times but coming out stronger. I
have great confidence that they will build upon
this company’s great heritage of service and
innovation in the years to come.
Sincerely,
Kenneth I. Chenault
Chairman and CEO, American Express Company
February 27, 2009