American Express Company (NYSE:AXP) SVB MoffettNathanson's Inaugural Technology, Media and Telecom Conference May 18, 2023 2:00 PM ET Company Participants Doug Buckminster - Vice Chairman Conference Call Participants Lisa Ellis - MoffettNathanson Operator Welcome everyone. Thanks for joining us for our 2 O’clock session, and the final session of our payments track for today. I am very delighted to be joined by Doug Buckminster who is the Vice Chairman of American Express. Thanks for being here. Doug Buckmi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ____ to ____ Commission file number 1-7657 AMERICAN EXPRESS COMPANY (Exact name of registrant as specified in its charter) New York 13-4922250 (State or other jurisdicti ...

American Express Company (NYSE:AXP) Q1 2023 Earnings Conference Call April 20, 2023 8:30 AM ET Company Participants Kerri Bernstein – Head-Investor Relations Steve Squeri – Chairman and Chief Executive Officer Jeff Campbell – Chief Financial Officer Conference Call Participants Sanjay Sakhrani – KBW Mihir Bhatia – Bank of America Mark DeVries – Barclays Betsy Graseck – Morgan Stanley Rick Shane – JPMorgan Craig Maurer – FT Partners Dominick Gabriele – Oppenheimer Moshe Orenbuch – Credit Suisse Bob Napoli – ...

American Express Company (NYSE:AXP) KBW Fintech Payments Conference Call February 28, 2023 10:15 AM ET Company Participants Jeffrey Campbell - Chief Financial Officer Conference Call Participants Sanjay Sakhrani - KBW Sanjay Sakhrani Jeff has helped oversee a period of pretty remarkable growth and innovation for the company. And obviously, lots of challenges as well, which you’ve navigated quite remarkably through. So it’s really nice to have him join us for a chat today. Question-and-Answer Session Q - San ...

American Express Company (NYSE:AXP) The Bank of America Securities 2023 Financial Services Conference Call January 15, 2023 9:40 AM ET Company Participants Jeff Campbell - CFO and Vice Chairman Conference Call Participants Mihir Bhatia - Bank of America Mihir Bhatia I'm Mihir Bhatia. I cover consumer finance and specialty payment companies here at Bank of America. We're delighted to have Jeff Campbell, CFO and Vice Chairman of American Express, joining us at our conference again this year. In terms of the f ...

Financial Performance and Business Metrics - Worldwide billed business (spending on American Express cards issued by the company) reached $1,338 billion for the year ended December 31, 2022[12] - The company had 76.7 million proprietary cards-in-force worldwide as of December 31, 2022[12] - Worldwide network services processed volume (spending on American Express cards issued by third parties) was $214.5 billion for the year ended December 31, 2022[15] - The company had 56.5 million cards-in-force issued by third parties worldwide as of December 31, 2022[15] - The Delta cobrand portfolio represented approximately 10% of worldwide network volumes and approximately 21% of worldwide Card Member loans as of December 31, 2022[20] - Cobrand portfolios accounted for approximately 18% of worldwide network volumes and 36% of worldwide Card Member loans as of December 31, 2022[118] - The maximum amount of billed business for purchases yet to be delivered by merchants was estimated at $31.1 billion as of December 31, 2022[119] - Travel and entertainment (T&E) expenditures comprised approximately 25% of worldwide billed business in 2022, while small business and corporate client spending comprised approximately 45%[116] - U.S. Card Members accounted for approximately 87% of total Card Member loans outstanding as of December 31, 2022[139] - Approximately 22% of total revenues net of interest expense in 2022 were generated from international operations, exposing the company to foreign exchange risk[140] - The company held approximately $4.6 billion in investment securities and $2.0 billion in equity investments as of December 31, 2022, with potential for impairment due to market conditions[142] Strategic Initiatives and Growth Focus - The company has focused on broadening product appeal to attract Millennial and Gen Z customers, as well as expanding its position with small and mid-sized enterprise (SME) customers[12] - The company has introduced new adjacent products, such as business checking and consumer rewards checking account products, and new digital capabilities[12] - The company's spend-centric model focuses on generating revenues primarily by driving spending on its cards, which is higher on average per card compared to competitors[22] - The company aims to expand its leadership in the premium consumer space by delivering membership benefits across spending, borrowing, travel, and lifestyle needs, while expanding global business partnerships[26] - The company seeks to strengthen its position in commercial payments by evolving card value propositions, differentiating corporate card solutions, and developing innovative financing and banking products for business customers[26] - The company is focused on increasing merchant acceptance globally, providing fraud protection services, and offering marketing insights to connect merchants with high-spending customers[27] - The company focuses on four strategic imperatives: expanding leadership in the premium consumer space, building on its position in commercial payments, strengthening its global integrated network, and leveraging its unique global position[26][27] - The company has been investing in growth initiatives to attract new Card Members, retain existing ones, and capture a greater share of customer spending and borrowings[121] - The company is investing in ESG initiatives, but there is no assurance that these goals will be achieved or have the desired impact[123] Workforce and Diversity - The company employs approximately 77,300 colleagues globally, with 26,000 in the U.S. and 51,300 outside the U.S., and added new colleagues in 2022 to support business growth[31] - In 2022, 92% of colleagues surveyed recommended the company as a great place to work, and women represented 53.7% of the global workforce[32] - The company achieved 100% pay equity in 2022 across genders globally and across races and ethnicities in the U.S. after compensation adjustments[33] - Women represented 53.7% of the global workforce, and Asian, Black/African American, and Hispanic/Latinx people represented 18.7%, 17.9%, and 14.2% of the U.S. workforce, respectively, as of December 31, 2022[32] - 52% of the Executive Committee were women or from diverse races and ethnic backgrounds as of December 31, 2022[32] - The company launched Amex Flex in 2022, allowing colleagues to work in the office, at home, or a hybrid approach depending on role and business needs[31] Regulatory and Compliance - The company is subject to extensive government regulation and supervision globally, with substantial compliance costs and potential regulatory actions impacting operations[48] - The company is subject to Category IV standards under the U.S. federal bank regulatory agencies' rules, which apply to bank holding companies with $100 billion or more in total consolidated assets[56] - The company elected to delay the recognition of $0.7 billion of impact to regulatory capital from the adoption of the CECL methodology for two years, followed by a three-year phase-in period[61] - The company must maintain CET1 capital, Tier 1 capital, and Total capital ratios of at least 4.5%, 6.0%, and 8.0%, respectively, with additional buffers[62] - The company's effective minimum capital ratios, including the SCB requirement, are 7.0% for CET1 capital, 8.5% for Tier 1 capital, and 10.5% for Total capital[63] - The company is required to maintain a leverage ratio of at least 4.0%[64] - The company is not subject to a specific Liquidity Coverage Ratio (LCR) requirement due to having less than $50 billion in weighted short-term wholesale funding[65] - The company is not subject to a specific Net Stable Funding Ratio (NSFR) requirement due to having less than $50 billion in weighted short-term wholesale funding[66] - The company is required to participate in supervisory stress tests every other year and was most recently subject to the Federal Reserve's supervisory stress tests in 2022[67] - The company is required to submit an annual capital plan to the Federal Reserve by April 5 of each year[67] - AENB must maintain CET1 capital, Tier 1 capital, Total capital, and Tier 1 leverage ratios of 6.5%, 8.0%, 10.0%, and 5.0%, respectively, to be considered "well capitalized"[72] - The FDIC's "single point of entry" (SPOE) strategy involves transferring assets of a failed financial holding company to a bridge holding company, recapitalizing operating subsidiaries, and delivering securities to unsecured creditors[77] - If the FDIC becomes conservator or receiver of AENB, it can transfer assets and liabilities without creditor approval, enforce contracts, or repudiate burdensome contracts, with U.S. deposit liabilities prioritized over other claims[78] - The company is required to act as a source of financial and managerial strength to AENB, potentially committing capital and resources even when it might not otherwise choose to do so[80] - AENB's deposits are insured by the FDIC, and the FDIC can terminate insurance if the institution engages in unsafe practices or violates regulations[81] - AENB is subject to the Community Reinvestment Act (CRA), which requires meeting the credit needs of local communities, including low- and moderate-income neighborhoods[82] - The OCC has proposed principles for climate-related financial risk management for large banks with over $100 billion in assets, including AENB, focusing on governance, risk management, and scenario analysis[83] - The CFPB proposed a rule to lower the safe harbor amount for credit card late fees to 25% of the minimum payment, with the rule potentially effective in 2024[86] - The EU, Australia, and Canada have focused on interchange fees, with regulations potentially impacting the company's discount revenue and cobrand arrangements[90] - Merchants in Canada (excluding Quebec) can surcharge credit card purchases up to 2.4%, which could adversely affect the company's business[92] - The company is subject to stringent privacy and data protection laws globally, including the EU GDPR, which imposes fines of up to 4% of annual revenue for non-compliance[98] - Europe, Argentina, Australia, Canada, India, Mexico, New Zealand, and Russia have enacted or proposed new or enhanced AML/CFT legislation and regulations applicable to American Express[101] - AML/CFT programs are subject to heightened scrutiny in some EU Member States, with potential penalties including significant fines, loss of licenses, or restrictions on business activities[102] - The United States prohibits transactions with "Specially Designated Nationals" without OFAC authorization, requiring the blocking of assets and prohibiting transfers of property[105] - American Express maintains a global sanctions compliance program to meet the requirements of applicable sanctions regimes[106] - The company is subject to anti-corruption laws including the U.S. Foreign Corrupt Practices Act and the UK Bribery Act, with potential severe penalties for non-compliance[107] - Compensation practices are overseen by the Federal Reserve and OCC, with potential enforcement actions for deficiencies in incentive compensation arrangements[108] - The SEC adopted a new rule in October 2022 requiring recovery of excess incentive-based compensation in case of financial restatements[110] - The company is under ongoing regulatory scrutiny, including investigations by the OCC, DOJ, and EDNY, which could result in enforcement actions or fines[132] - The company faces potential changes to its merchant agreements due to legal proceedings, which could impact profitability and expose cards to increased merchant steering[132] - The company is subject to capital adequacy and liquidity rules, and failure to meet these requirements could restrict dividend payments, share repurchases, and business expansion[133] - Regulatory restrictions limit the company's ability to pay dividends and repurchase capital stock, which could affect liquidity and market perceptions[135] - Compliance with privacy, data protection, and cybersecurity laws could increase costs and restrict business opportunities, potentially impacting profitability[135] - Heightened scrutiny of AML/CFT programs and potential regulatory actions could result in significant penalties, loss of licenses, or reputational damage[130] - Litigation risks, including class action lawsuits, could lead to substantial fines, penalties, and increased expenses[130] - Emerging industry standards and regulatory changes may inhibit the adoption of new technologies, requiring substantial expenditures and exposing the company to new risks[125] Competitive Landscape - The company competes globally as the fourth-largest general-purpose card network by purchase volume, behind China UnionPay, Visa, and Mastercard[45] - Key competitive factors include product features, customer care, rewards programs, digital services, and the attractiveness of value propositions to cardholders and merchants[45] - The company faces competition from alternative payment mechanisms, including digital wallets, buy-now-pay-later products, and blockchain technologies[45] - The company faces intense competition from Visa and Mastercard, which are larger in most countries based on purchase volume[117] - The company's global card network competes with other networks such as China UnionPay, Visa, Mastercard, JCB, Discover, and Diners Club International[45] - The company faces intense competition in the premium space and for co-brand relationships, targeting high-spending customers and key business partners[44] Risk Factors - The COVID-19 pandemic continues to impact global society, economies, and consumer spending, with ongoing uncertainty in the macroeconomic outlook[116] - Suspended all business operations in Russia and Belarus due to the Russian invasion of Ukraine, leading to economic uncertainty and market disruptions[117] - The company may face increased compliance and regulatory risks as it expands into new business areas and geographic regions[117] - The loss or renegotiation of cobrand partnerships could significantly impact network volumes and Card Member loans[118] - The company is exposed to risks from partner bankruptcies, liquidations, and financial distress, which could negatively impact financial condition and results of operations[119] - Revenue growth depends on increasing consumer and business spending on cards, growing loan balances, and increasing fee revenue[121] - The Membership Rewards program relies on third-party redemption partners, with Amazon and Delta being the two largest[121] - The company faces risks from potential cyberattacks, including ransomware, phishing, and corporate espionage, which could lead to reputational damage and financial losses[123] - The company relies on third-party providers for critical services such as transaction processing, data handling, and customer acquisition, which could be disrupted or compromised[124] - The company's brand and reputation are key assets, and negative perceptions or publicity could harm its ability to attract and retain customers[122] - The company faces risks from merchant discrimination against its cards, which could reduce transaction volumes and impact financial performance[121] - The company's profitability could be adversely affected by increased costs related to marketing, rewards, and Card Member services[121] - The company's information systems are critical to its operations, and disruptions could have a material adverse effect on its business[124] - The company faces operational complexity and governance challenges due to reliance on third parties, which could lead to regulatory actions, fines, or reputational harm[125] - Rapid technological changes in the industry require significant investment in areas like AI, machine learning, and real-time settlement, with risks of obsolescence or competitive harm[125] - The company's acquisitions and strategic investments, including joint ventures like GBTG, carry risks of integration difficulties, unanticipated liabilities, and potential failure to realize expected benefits[125] - Climate change poses risks to operations, customer behavior, and regulatory compliance, with potential impacts on expenses and reputational harm[127] - Comprehensive government regulation and supervision globally could limit business opportunities, increase costs, and affect profitability[129] - Regulatory focus on card network operations, including interchange fees and network routing practices, negatively impacts discount revenue and business practices[130] - The company's ability to attract and retain qualified personnel is challenged by competitive markets, regulatory oversight, and changing workplace dynamics[126] - The company is exposed to credit risk from consumer and small business Card Member loans, which could be negatively impacted by economic factors such as unemployment and inflation[138] - The company relies on analytical models for risk management, but these models may not accurately predict future outcomes, especially in the current geopolitical and macroeconomic environment[138] - The company is subject to potential tax liabilities due to audits and new tax legislation, including the OECD's global minimum tax guidelines, which could impact the effective tax rate[137] - Delinquency and write-off rates increased in 2022 compared to 2021, with expectations for further increases, potentially requiring higher reserves for credit losses[139] - Interest expense for 2022 was approximately $2.8 billion, with a hypothetical 100 basis point increase in market interest rates potentially reducing annual net interest income by $141 million[140] Operations and Infrastructure - The company operates in approximately 103 countries and territories through its payments network[15] - The company's integrated payments platform allows for direct relationships with both Card Members and merchants, creating a "closed loop" system[10] - The company's principal executive offices are located in a 2.2 million square foot building in lower Manhattan, with a 49% ownership interest[144] - The company operates multiple travel lounges in major U.S. and global hub airports as a benefit for Card Members[145] ESG and Corporate Responsibility - American Express has an ESG strategy focusing on Promoting Diversity, Equity and Inclusion, Advancing Climate Solutions, and Building Financial Confidence[28]

American Express Company (NYSE:AXP) Q4 2022 Earnings Conference Call January 27, 2023 8:30 AM ET Company Participants Kerri Bernstein - Head, Investor Relations Steve Squeri - Chairman and Chief Executive Officer Jeff Campbell - Chief Financial Officer Conference Call Participants Ryan Nash - Goldman Sachs Sanjay Sakhrani - KBW Betsy Graseck - Morgan Stanley Mark DeVries - Barclays Mihir Bhatia - Bank of America Brian Foran - Autonomous Research Rick Shane - JPMorgan Dominick Gabriele - Oppenheimer Moshe Or ...

American Express Company (NYSE:AXP) Q3 2022 Earnings Conference Call October 21, 2022 8:30 AM ET Company Participants Kerri Bernstein - Head, Investor Relations Steve Squeri - Chairman & Chief Executive Officer Jeff Campbell - Chief Financial Officer Conference Call Participants Ryan Nash - Goldman Sachs Sanjay Sakhrani - KBW Mark DeVries - Barclays Betsy Graseck - Morgan Stanley Bob Napoli - William Blair Rick Shane - JPMorgan Dominick Gabriele - Oppenheimer Moshe Orenbuch - Credit Suisse Don Fandetti - We ...