American Express 2014 Annual Report Download - page 64

AMERICAN EXPRESS COMPANY
2014 FINANCIAL REVIEW
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are
subject to risks and uncertainties. The forward-looking statements, which address our expected business and financial performance, among
other matters, contain words such as “believe,” “expect,” “estimate,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,”
“should,” “could,” “would,” “likely,” and similar expressions. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking
statements. Factors that could cause actual results to differ materially from these forward-looking statements, include, but are not limited to,
the following:
폷the ability to maintain discipline over operating expenses during 2015 and 2016 as well as management’s ability to re-scale our expense
base, which will depend in part on unanticipated increases in significant categories of operating expenses, such as consulting or
professional fees, compliance or regulatory-related costs and technology costs, the payment of civil money penalties, disgorgement and
restitution, our decision to increase or decrease discretionary operating expenses depending on overall business performance, our ability to
achieve the expected benefits of our reengineering plans, our ability to balance expense control and investments in the business, the impact
of changes in foreign currency exchange rates on costs and results, the impact of accounting changes and reclassifications, and the level of
acquisition activity and related expenses;
폷the actual impact on our year over year EPS for the full year 2015 from increased competition and pricing regulation, the strengthening of
the U.S. dollar, the expiration of our U.S. Costco co-brand relationship in 2016 and other factors discussed under “Current Business
Environment/Outlook,” which will depend on the factors described herein, the behavior of Card Members and their actual spending
patterns, credit trends, currency and interest rate fluctuations, the timing and size of the investments we make to attract Card Members,
including those from the Costco relationship, and in other growth initiatives, as well as our success in implementing our strategies and
business initiatives including growing profitable spending through proprietary, co-brand and network products, increasing penetration
among corporate clients, expanding our international footprint, growing reloadable prepaid, loyalty coalitions and marketing services,
increasing merchant acceptance, controlling expenses and executing our share repurchase program;
폷the actual amount to be spent by us on investments in the business, which will be based in part on management’s assessment of
competitive opportunities, our ability to control operating, infrastructure, advertising, promotion and rewards expenses, credit trends and
changes in macroeconomic conditions;
폷uncertainty related to our ability to drive growth from discretionary investments, which will depend in part on our ability to develop and
market value propositions that appeal to Card Members and new customers and on our ability to offer attractive services and rewards
programs, as well as increasing competition, brand perceptions and reputation and ineffective or diminished investments by us;
폷changes affecting our ability or desire to repurchase up to $1.0 billion of our common shares in the first quarter of 2015, such as
acquisitions, results of operations, capital needs and the amount of shares issued by us to employees upon the exercise of options, among
other factors, which could significantly impact our capital ratios;
폷changes affecting our ability or desire to issue preferred shares during the first quarter of 2015, such as actions by bank regulatory agencies,
capital needs, any reduction in our credit ratings, which could materially increase the cost and other terms of preferred shares, and market
conditions, among other factors;
폷our funding plan for the full year 2015 being implemented in a manner inconsistent with current expectations, which will depend on
various factors such as future business growth, the impact of global economic, political and other events on market capacity, demand for
securities we offer, regulatory changes, ability to securitize and sell receivables and the performance of receivables previously sold in
securitization transactions;
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