American Express 2014 Annual Report Download - page 5

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AMERICAN EXPRESS COMPANY | ANNUAL REPORT 2014 4
There were many factors behind our higher billings. One, quite simply, is
that Card Members spent more on average. Beyond that, we added more
Card Members to our franchise and more places for them to spend by
expanding our global merchant network. At year-end, total cards-in-force
stood at 112.2 million, up by 5 million from the prior year.
HIGHER LOANS AND EXCELLENT CREDIT QUALITY
Card Member spending continues to drive the economics of our business,
but lending is also playing an important role. During 2014, worldwide
loans rose by 5 percent to $70.4 billion, even as Card Members paid down
outstanding balances at a higher rate. The quality of our credit portfolio,
as measured by write-o and past-due rates, remained exceptional. In
fact, we led our major competitors in these measures by a wide margin.
Looking ahead, we see opportunities to grow our loan portfolio with
existing and new customers without significantly changing the overall risk
profile of the company.
The company continued to support its investment in Serve and worked to help the
nearly 70 million Americans who are underserved by the traditional banking system
with convenient, low-cost options for managing and saving money. American Express
sponsored the documentary “Spent: Looking for Change” to help improve financial
inclusion in the U.S. Academy Award®-winning filmmaker Davis Guggenheim is the
executive producer of the documentary, which is narrated by Tyler Perry and directed by
Derek Doneen. Debuting on YouTube in June, “Spent” follows the lives of four American
families wrestling with the costs and inconveniences that come with living outside the
traditional financial system.