Transcript

American Express (AXP) Company Description Extended

AMERICAN EXPRESS COMPANY AMERICAN EXPRESS Sector: Financials Industry: Consumer Finance Sub-Industry: Consumer Finance O Fiscal Year End: December 31 Ticker: AXP The American Express Company, also known as AmEx, is a diversified global financial and travel services company founded in 1885. American Express's range of products and services include charge and credit card products, expense management products and services, consumer and business travel services, as well as stored value products like cheques and prepaid cards. AMERICAN EXPRESS'S RANGE OF PRODUCTS AND SERVICES Charge and Credit Card Expense Management Products and Services Consumer tnd Business Travel Services Products Ștored Value Products - Travelers Cheques and Prepaid Cards Network Services - Merchant Acquisition, Prôcessing, Serviçing and Settlement COMPANY OVERVIEW CEO: Kenneth I. Chenault Headquarters: New York, USA Total Billed Business in 105.4m 2012: AmEx cards in $888bn, circulation up Worldwide Employees: 8% 62,600 YoY Total Assets: Market Cap (as of November 10, 2013): $88.2bn$153bn, Tier 1 Capital Ratio: Largest Shareholder: Berkshire Hathaway, 12,2% 2012 Revenues: 13.1% $31.6bn 2012 Net Profit: up $4.4bn 4% YoY American Express AMERICANEXPRESS AMERIGAN EXPRESS 00001 3745 b12345 71008 3139 52472 1003 58 3757 86 JL BENJAHIN GUSTAY N ERIKSSON LA MEBB AMERICAN EXPRrss AMERICAN EXPRESS spg. Starwood Preferred Guest 21001 b1007 3759 875 3713 8E 85 3759 876543 21001 CF FROST CF FROST HL CLARK AmEx's Competitive Advantages: O Unlike other card companies, which only process transactions, AmEx not only issues proprietary cards, it also operates the network on which these transactions are conducted. AmEx's proprietary charge cards do not carry a month-to-month balance; instead, they require users to pay all outstanding balances in full every month. This makes the segment highly profitable, and it has traditionally grown at robust rates. O Discount rates on American Express cards are much higher (2.5%) than the average rate (o.4%) charged by companies like Visa and MasterCard. O The usage of a few AmEx cards is charged with annual and inception fees in addition to the discount rate, and these are a stable source of revenues for the company's premium cards business. AmEx earns interest on some of its other credit cards for e.g., Blue Cash - on top of the discount rate. O The company also provides travel services and premium customer services targeted specifically at higher income groups. REVENUE SHARE BY GEOGRAPHICAL REGION Latin America, Canada, and Caribbean Japan, Asia-Pacific and Australia 10% 1l% EMEA United States 10% The company currently generates around 70% of its revenues from the US, but AmEx's management sees a major upside in emerging markets and developed countries where its brands have been well received. As part of its global expansion strategy, American Express is now expected to grow outside the US and increase its revenues from nontraditional markets. 3YR REVENUE CAGR OF GEOGRAPHICAL SEGMENTS 9% United States 3% 11% Asia Pacific, Japan and Australia EMEA 10% Latin America, Canada & Carribean AMERICAN EXPRESS NETWORK SPENDING VOLUME SHARE United States International ьб 34% BIDNESS SOURCES: Company Data, SEC filings, Bloomberg Professional Services Etc. DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods services offered or provided by Bidness Etc herein cr to suggest approval for or affiliation with Bidness Etc.

American Express (AXP) Company Description Extended

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American Express Company (AXP), founded in 1885, is a global financial services provider. Its key products include credit and charge cards, corporate and business cards, expense management, travel ser...

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