American Express 2014 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2014 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 130

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

5AMERICAN EXPRESS COMPANY | ANNUAL REPORT 2014
DISCIPLINED EXPENSE CONTROLS
Controlling costs has been another priority for us. We made good on our
commitment to hold expense growth in check in 2014. Total expenses
were flat with a year ago and slightly below 2012 levels, despite significant
increases in business-building investments. For example, spending on
marketing and promotion (up 9 percent), rewards (up 7 percent), and Card
Member services (up 7 percent) all reached historically high levels.
PUTTING ONE-TIME GAINS TO WORK
During the year, we benefited from two significant gains. In the second
quarter, we realized a $626 million pre-tax gain from the completion of
our Global Business Travel (GBT) joint venture. We formed this 50-50
joint venture to accelerate GBT’s growth, while maintaining its close
connections with our commercial card business. Then, in the fourth
quarter, we realized a $719 million pre-tax gain from selling our strategic
investment in Concur Technologies.
Billed business rose 7 percent to $1.023 trillion on broad-based growth in
spending among consumers, small businesses and corporations. Higher spending per card,
combined with an expanding Card Member base, drove the increase.
CARDS-IN-FORCE
(in millions)
10 91.0
11 97.4
12 102.4
13 107.2
14 112.2
10 $ 713
11 $ 822
12 $ 888
13 $ 952
14 $1,023
BILLED BUSINESS
(in billions)