American Express 2015 Annual Report Download - page 15

• Promoting and using incentives for Card Members to use their cards in new and expanded merchant categories,
including everyday spend and traditional cash and check categories
• Providing solutions to support the everyday business operations of our small business customers
• Providing exceptional customer service
Consumer and Small Business Services
We offer individual consumer charge cards such as the American Express®Green Card, the American Express®
Gold Card, the Platinum Card®and the Centurion®Card, as well as small business charge cards, including the Plum
Card®. We also offer revolving credit cards such as the Amex EveryDay®Credit Card, Blue Cash Everyday®Card from
American Express, Blue Sky from American Express®and, for small businesses, Blue for Business®Credit Card and
SimplyCash®Business Card. In addition, we offer a variety of cards sponsored by and cobranded with other
corporations and institutions for consumers and small businesses, such as the Delta SkyMiles®Credit Card from
American Express, Starwood Preferred Guest Credit Card from American Express, Hilton HHonorsTM Card from
American Express and Lowe’s Business Rewards Card. For the year ended December 31, 2015, billed business from
charge cards comprised 56 percent of total U.S. Card Services billed business.
Centurion Bank and American Express Bank as Issuers of Certain Cards and Deposit Products
We have two U.S. bank subsidiaries, American Express Centurion Bank (“Centurion Bank”) and American Express
Bank, FSB (“American Express Bank”), which are both FDIC-insured depository institutions. Certain information
regarding each bank is set forth in the table below:
Centurion Bank American Express Bank
Type of Bank Utah-chartered industrial bank Federal savings bank
Regulatory Supervision Regulated, supervised and regularly
examined by the Utah Department of
Financial Institutions and the Federal
Deposit Insurance Corporation
(“FDIC”)
Subject to supervision, examination
and enforcement by the Consumer
Financial Protection Bureau
(“CFPB”) with respect to marketing
and sale of consumer financial
products and compliance with
federal consumer financial laws
Regulated, supervised and regularly
examined by the Office of the
Comptroller of the Currency
(“OCC”), an independent bureau of
the U.S. Department of the Treasury
Subject to supervision, examination
and enforcement by the CFPB with
respect to marketing and sale of
consumer financial products and
compliance with federal consumer
financial laws
Types of Cards Issued Consumer charge and credit cards •Consumer charge and credit cards
•All OPEN small business credit and
charge cards
Card Marketing Methods Primarily direct mail, online and
other remote marketing channels •Direct mail, online and other remote marketing channels
•In-person marketing, including by
third-party cobrand partners
Deposit Programs Deposits obtained only through
third-party brokerage channels Deposits obtained through third- party brokerage channels and
accepted directly from consumers
Capital Adequacy Requirements
at December 31, 2015* Well capitalized Well capitalized
* As of December 31, 2015, a bank generally was deemed to be well capitalized if it maintained a common equity Tier 1 capital ratio of at least 6.5
percent, a Tier 1 capital ratio of at least 8 percent, a total capital ratio of at least 10 percent and a Tier 1 leverage ratio of at least 5 percent. For
further discussion regarding capital adequacy, see “Capital Adequacy” under “Supervision and Regulation.”
Charge Cards
Our charge cards, which generally carry no preset spending limits, are designed as a method of payment. Charges
are approved based on a variety of factors including a Card Member’s current spending patterns, payment history,
credit record and financial resources. Card Members generally must pay the full amount billed each month. Charge
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