American Express 2012 Annual Report Download - page 5

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Our progress took us beyond some notable milestones:
• Reaching a record $888 billion in cardmember purchases by providing more
value, convenience and benefi ts for in-store, online and mobile spending
• Passing the 100 million mark for cards-in-force as we expanded our
core franchise
• Adding about 2.5 million new customers in our Enterprise Growth Group in
2012, one way that we’re broadening our reach through alternative products
• Achieving a new low in write-o s for bad loans as credit quality stayed at or
near best-ever levels
• Winning our sixth straight J.D. Power and Associates award for highest
customer satisfaction among U.S. credit card companies
Despite success on many fronts, the past year was not an easy one. We faced
some tough challenges–in particular, the relatively weak economy and intense
competition. We also had bad news of our own making when U.S. fi nancial
regulators found that some of our card practices didn’t comply with consumer
laws. This was not our proudest moment, especially in light of the long-standing
tradition of customer care that underpins our brand promise. I’ll have more to
say about this event and our commitment to compliance later in this letter.
In addition, certain benefi ts that contributed to our earnings in 2011 diminished
in 2012. Settlement payments from Visa and MasterCard lawsuits ended, and
releases from credit loss reserves that we had established during the economic
downturn were substantially lower. These factors made achieving year-over-
year growth a tougher task.
What’s most important is how we responded to these challenges–with a
commitment to raise our game.
To Our Shareholders
2012 Financial
Results
Marketplace Moves
Shareholder Returns
Foundational
Changes
Advantages in a
Digital Economy
A Broad Footprint
Customer Focus
Board of Directors
Change and Tradition
AMERICAN EXPRESS COMPANY
3