American Express 2012 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2012 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 120

  • 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
  • 117
  • 118
  • 119
  • 120

The market has reacted favorably. American Express shares delivered a total
return of 23.6 percent for the year, outperforming the Dow (up 7.3 percent) and
the S&P 500 (up 16.0 percent), but coming in below the S&P Financials (up 28.9
percent). In March, we announced a dividend increase of 11 percent, as well as
authorization from our Board to repurchase up to 150 million common shares.
Looking ahead, we want to accelerate our momentum and take advantage of the
substantial growth opportunities in front of us. I believe our options for growth
have expanded over the past fi ve years, and I’m confi dent we will continue to
capitalize on them. Here are some of the reasons why:
FOUNDATIONAL CHANGES
It all starts with a strong foundation for growth, one that we’ve improved greatly
in recent years. The fi nancial crisis a ected companies in di erent ways. Some
failed. Some waited for better times. Others took deliberate actions to adapt,
invest and reshape strategies. Those are the companies that came out of the crisis
stronger than they went in. I count American Express among them. Today, we
have an exceptionally strong capital position, a lower risk profi le, a more reliable
funding base, greater liquidity and a more diversifi ed billings base than we did
fi ve years ago. These changes make us better able to generate growth and deal
with a volatile environment.
We have also become more nimble and adaptable. Upgraded technology
platforms are increasing productivity and speed-to-market. Redesigned
operations are making us more e cient and improving service quality. And we
continue to o er better ways for our customers to interact with us through online
and mobile channels.
The restructuring plan we recently announced is meant to build upon this
progress. One piece of this plan involves reengineering our model in Global
Business Travel as we continue the shift toward online channels and automated
servicing tools. We’re also streamlining our sta groups across the company so
we can concentrate more resources on high-growth areas, optimizing our client
management and sales functions, and eliminating duplicate e orts.
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
7