<PAGE>
==============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 22, 1996
AMERICAN EXPRESS COMPANY
--------------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 1-7657 13-4922250
---------------------------- ------------ ---------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification)
World Financial Center, 200 Vesey Street
New York, New York 10285
----------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, (212) 640-2000
including area code ----------------
--------------------------------------------------------------------------
(Former name or former address, if changed since last report.)
==============================================================================
<PAGE>
<PAGE>
Item 5. Other Events
On July 22, 1996, American Express Company issued the following
press release:
NEW YORK, July 22, 1996 - American Express Company today reported second
quarter net income of $452 million, up 10 percent from a year ago.
On a per share basis, second quarter net income was $0.93, compared
with $0.81 a year ago, an increase of 15 percent.
Travel Related Services (TRS) reported second quarter net income of
$322 million, an 8 percent increase over net income of $298 million a
year ago.
Last year's results included income from AMEX Life, a subsidiary that
was sold in October 1995. Excluding the year ago results for AMEX Life,
TRS' net income grew approximately 12 percent, revenues increased
approximately 5 percent and expenses were up approximately 4 percent,
compared with the year ago quarter.
Net revenues reflect an increase in worldwide billed business on
American Express Cards and growth in Cardmember loans outstanding. The
increase in billed business resulted from higher spending per
Cardmember, due in part to the benefits of rewards programs and
increased merchant coverage, as well as growth in the number of Cards
outstanding. These increases were partially offset by a decrease in net
card fees, reflecting the Company's strategy of growing its lending
portfolio through the issuance of low- and no-fee credit cards.
The charge card provision for losses increased, primarily reflecting
volume growth.
American Express Financial Advisors (AEFA) reported record second
quarter net income of $153 million, a 19 percent increase over net
income of $129 million a year ago.
Revenue and earnings growth benefited primarily from higher fee
revenues due to an increase in managed assets and growth in distribution
fees primarily from sales of mutual funds.
AEFA reported record sales of mutual funds and life and other
insurance products, as well as increased sales of annuities, while sales
of investment certificates declined from last year.
American Express Bank (AEB) reported second quarter net income of $14
million, compared with $19 million a year ago.
The decline in earnings reflects lower revenues, partly offset by
expense savings. These results reflect the impact of the Bank's
continued efforts to focus on strategic markets and eliminate low return
activities, as well as the impact of cost reduction initiatives.
Corporate and Other reported second quarter net expenses of $37
million, compared with net expenses of $36 million a year ago.
* * *
American Express Company, a global travel and financial services firm
founded in 1850, provides customers with a variety of products and
services consistent with its brand. The Company provides individuals
with charge and credit cards, travelers cheques and other stored value
products. It also offers financial planning, brokerage services, mutual
funds, insurance and other investment products.
Through its family of Corporate Card services, American Express helps
companies and institutions manage their travel, entertainment and
purchasing expenses. It provides investment management services and
administers pension and other employee benefit plans. The Company also
offers accounting and tax preparation to small businesses, and financial
education services to employees at their places of work.
As the world's largest travel agency, American Express offers travel
and related consulting services to individuals and corporations around
the globe. The Company also provides banking services to corporations,
wealthy entrepreneurs, financial institutions and retail customers
outside the United States.
<PAGE>
<PAGE>
AMERICAN EXPRESS COMPANY
------------------------
FINANCIAL SUMMARY
-----------------
(Unaudited)
(dollars in millions, except per share amounts)
Three Months Ended
June 30,
-------------------- Percentage
1996 1995 Inc/(Dec)
---- ---- ----------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $2,901 $2,902 (0.1%)
American Express Financial Advisors 1,017 911 11.7
American Express Bank 140 163 (14.4)
------- -------
4,058 3,976 2.1
Corporate and Other,
including adjustments and
eliminations (14) (9) (55.6)
------- -------
CONSOLIDATED REVENUES (A) $4,044 $3,967 1.9
======= =======
Pretax Income by Industry Segment
- ---------------------------------
Travel Related Services $459 $423 8.4%
American Express Financial Advisors 231 192 20.6
American Express Bank 22 28 (21.1)
------ ------
712 643 10.8
Corporate and Other (76) (71) (8.5)
------ ------
PRETAX INCOME $636 $572 11.1
====== ======
Net Income by Industry Segment
- ------------------------------
Travel Related Services $322 $298 8.1%
American Express Financial Advisors 153 129 18.6
American Express Bank 14 19 (25.1)
------ ------
489 446 9.7
Corporate and Other (37) (36) (1.6)
------ ------
NET INCOME $452 $410 10.4
====== ======
NET INCOME PER COMMON SHARE $0.93 $0.81 14.8
======= ========
Cash dividends declared per common share $0.225 $0.225
======= ========
Average shares outstanding (000's) 487,048 499,269
======= ========
<PAGE>
<PAGE>
Six Months Ended
June 30,
------------------ Percentage
1996 1995 Inc/(Dec)
---- ---- ----------
Revenues by Industry Segment (A)
- --------------------------------
Travel Related Services $5,651 $5,643 0.1%
American Express Financial Advisors 2,020 1,785 13.2
American Express Bank 285 323 (11.8)
------- ------
7,956 7,751 2.6
Corporate and Other,
including adjustments and
eliminations (30) (13) (130.8)
------- ------
CONSOLIDATED REVENUES (A) $7,926 $7,738 2.4
======= ======
Pretax Income by Industry Segment
- ---------------------------------
Travel Related Services $875 $800 9.3%
American Express Financial Advisors 428 356 20.3
American Express Bank 51 50 2.7
------- -------
1,354 1,206 12.3
Corporate and Other (154) (136) (13.3)
------- -------
PRETAX INCOME $1,200 $1,070 12.2
======= =======
Net Income by Industry Segment
- ------------------------------
Travel Related Services $609 $562 8.3%
American Express Financial Advisors 283 236 19.7
American Express Bank 33 35 (4.0)
------- -------
925 833 11.0
Corporate and Other (76) (70) (8.7)
------- -------
NET INCOME $849 $763 11.2
======= =======
NET INCOME PER COMMON SHARE $1.73 $1.51 14.6
======== ========
Cash dividends declared per common share $0.450 $0.450
======== ========
Average shares outstanding (000's) 488,950 500,638
======== ========
(A) Revenues are reported net of interest expense, where applicable.
<PAGE>
<PAGE>
(Preliminary)
Travel Related Services
-----------------------
Statement of Income
-------------------
(Unaudited)
(Dollars in millions)
Three Months Ended
June 30,
------------------- Percentage
1996 1995 Inc/(Dec)
---- ---- ----------
Net Revenues:
Discount Revenue $1,247 $1,112 12.2%
Net Card Fees 414 436 (5.1)
Travel Commissions and Fees 329 320 3.0
Interest and Dividends 211 256 (17.6)
Other Revenues 451 526 (14.4)
-------- -------
2,652 2,650 0.1
-------- -------
Lending:
Finance Charge Revenue 371 376 (1.3)
Interest Expense 122 124 (1.2)
------- -------
Net Finance Charge Revenue 249 252 (1.4)
------- -------
Total Net Revenues 2,901 2,902 (0.1)
------- -------
Expenses:
Marketing and Promotion 252 250 0.6
Provision for Losses and Claims:
Charge Card 248 199 24.5
Lending 126 126 0.2
Other 26 124 (79.0)
------- -------
Total 400 449 (10.9)
------- -------
Interest Expense:
Charge Card 171 170 0.6
Other 114 114 0.3
------- -------
Total 285 284 0.5
Net Discount Expense 125 107 16.7
Human Resources 721 705 2.3
Other Operating Expenses 659 684 (3.8)
------- -------
Total Expenses 2,442 2,479 (1.5)
------- -------
Pretax Income 459 423 8.4
Income Tax Provision 137 125 9.3
------- -------
Net Income $322 $298 8.1
======= =======
Notes: Certain prior year amounts have been reclassified to conform to the
current year's presentation.
The impact on the Statement of Income related to TRS' securitized receivables
and loans was as follows:
Increase Other Revenues $42 $20
Decrease Lending Finance Charge Revenue (32) -
Decrease Lending Interest Expense 8 -
Decrease Provision for Losses and Claims:
Charge Card 54 46
Lending 12 -
Decrease Interest Expense -
Charge Card 41 41
Increase Net Discount Expense (125) (107)
----- -----
Pretax Income $0 $0
===== =====
<PAGE>
<PAGE>
(Preliminary)
Travel Related Services (continued)
-----------------------------------
Selected Statistical Information
--------------------------------
(Unaudited)
(Amounts in billions, except percentages and where indicated)
Three Months Ended
June 30,
----------------------- Percentage
1996 1995 Inc/(Dec)
---- ---- ----------
Total Cards in Force (millions):
United States 27.5 25.7 7.1%
Outside the United States* 11.8 11.5 2.2
----- -----
Total 39.3 37.2 5.6
===== =====
Basic Cards in Force (millions):
United States 20.9 19.1 9.5
Outside the United States* 9.3 9.1 2.5
----- -----
Total 30.2 28.2 7.3
===== =====
Card Billed Business:
United States $32.6 $28.7 13.7
Outside the United States* 13.2 11.9 10.7
----- -----
Total $45.8 $40.6 12.8
===== =====
Owned and Managed Cardmember Receivables
(excluding Revolving Card Products):
Total Cardmember Receivables $20.6 $17.9 14.9
90 Days Past Due as a % of Total
Cardmember Receivables 3.7% 3.6% -
Total Loss Reserves $1.1 $0.9 17.6
% of Cardmember Receivables 5.1% 5.0% -
% of 90 Days Past Due 138% 140% -
Cardmember Receivables Loss Ratio,
Net of Recoveries 0.5% 0.5% -
Owned and Managed U.S. Cardmember Lending
(including Revolving Card Products):
Total Cardmember Loans $10.5 $8.6 21.4
30 Days Past Due as a % of Total
Cardmember Loans 3.2% 3.6% -
Total Loss Reserves $0.5 $0.4 22.2
% of Cardmember Loans 4.5% 4.4% -
% of 30 Days Past Due 135% 123% -
Write-Off Rates 5.2% 4.4% -
Travelers Cheque Sales $6.7 $6.9 (2.3)
Average Travelers Cheques
Outstanding $6.1 $6.1 (1.0)
Travel Sales $4.0 $4.0 2.3
Return on Average Equity ** 24.8% 24.5% -
* Both years include Cards issued by strategic alliance partners and
independent operators as well as business billed on those Cards.
** ROE is calculated excluding the effect of SFAS #115.
Note: Certain prior year amounts have been reclassified to conform to the
current year's presentation.
<PAGE>
<PAGE>
(Preliminary)
American Express Financial Advisors
-----------------------------------
Statement of Income
-------------------
(Unaudited)
(Dollars in millions, except where indicated)
Three Months Ended
June 30,
--------------------- Percentage
1996 1995 Inc/(Dec)
---- ---- -----------
Revenues:
Investment Income $562 $549 2.4%
Management and Distribution Fees 296 227 30.8
Other Income 159 135 17.4
------- -------
Total Revenues 1,017 911 11.7
------- -------
Expenses:
Provision for Losses and Benefits:
Annuities 298 290 2.7
Insurance 102 103 (1.1)
Investment Certificates 48 46 3.6
------- -------
Total 448 439 1.9
Human Resources 252 216 16.2
Other Operating Expenses 86 64 36.6
------- -------
Total Expenses 786 719 9.3
------- -------
Pretax Income 231 192 20.6
Income Tax Provision 78 63 24.8
------- -------
Net Income $153 $129 18.6
======= =======
Selected Statistical Information
--------------------------------
Life Insurance in Force (billions) $63.0 $55.9 12.7
======= ======
Assets Owned and/or Managed (billions):
Assets managed for institutions $34.8 $33.1 5.4
Assets owned and managed for individuals:
Owned Assets 49.7 45.0 10.5
Managed Assets 54.0 43.3 24.3
------- -------
Total $138.5 $121.4 14.0
======= =======
Sales of Selected Products:
Mutual Funds $3,762 $2,364 59.1
Annuities $1,125 $961 17.0
Investment Certificates $186 $604 (69.3)
Life and Other Insurance Sales $113 $96 17.8
Number of Financial Advisors 7,997 7,918 1.0
Fees From Financial Plans (thousands) $11,584 $9,625 20.4
Product Sales Generated from Financial
Plans as a Percentage of Total Sales 62.9% 64.1% -
Return on Average Equity* 19.9% 19.0% -
* ROE is calculated excluding the effect of SFAS #115.
<PAGE>
<PAGE>
(Preliminary)
American Express Bank
---------------------
Statement of Income
-------------------
(Unaudited)
(Dollars in millions)
Three Months Ended
June 30,
-------------------- Percentage
1996 1995 Inc/(Dec)
---- ---- ----------
Net Revenues:
Interest Income $207 $233 (11.1%)
Interest Expense 135 152 (11.2)
---- ----
Net Interest Income 72 81 (11.0)
Commissions, Fees and Other Revenues 48 61 (22.8)
Foreign Exchange Income 20 21 (3.2)
---- ----
Total Net Revenues 140 163 (14.4)
---- ----
Provision for Credit Losses 4 1 #
---- ----
Expenses:
Human Resources 54 65 (17.2)
Other Operating Expenses 60 69 (14.2)
---- ----
Total Expenses 114 134 (15.6)
---- ----
Pretax Income 22 28 (21.1)
Income Tax Provision 8 9 (12.4)
---- ----
Net Income $14 $19 (25.1)
==== ====
Selected Statistical Information
--------------------------------
Return on Average Assets 0.49% 0.57% -
Return on Average Common Equity* 7.83% 9.87% -
Total Loans $5,474 $5,431 0.8
Reserve for Credit Losses $113 $115 (1.4)
Total Nonperforming Loans $38 $32 19.3
Other Real Estate Owned $48 $53 (9.9)
Risk-Based Capital Ratios:
Tier 1 9.1% 8.3% -
Total 12.9% 15.8% -
Leverage Ratio 5.8% 5.2% -
# Denotes variance of more than 100%.
* ROE is calculated excluding the effect of SFAS #115.
<PAGE>
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
AMERICAN EXPRESS COMPANY
By: /s/ Stephen P. Norman
----------------------------------
Name: Stephen P. Norman
Title: Secretary
Dated: July 23, 1996
<PAGE>
