Summary
American Express Company (AXP) filed its 2015 annual report on Form 10-K, detailing its financial performance and business operations for the year ended December 30, 2015. The company reported net income of $5.2 billion, a decrease from $5.9 billion in 2014, with diluted earnings per share of $5.05. This decline was attributed to increased spending on growth initiatives, the strengthening U.S. dollar, and tougher economic and competitive environments, as well as costs associated with the early renewal of certain cobrand relationships and the termination of the Costco relationship in Canada. Despite these headwinds, AXP highlighted strong performance in areas such as loan growth, card acquisitions, excellent credit performance, and disciplined operating expense control. The company also returned over $5 billion to shareholders through dividends and share repurchases, underscoring its strong capital position. Key strategic initiatives include expanding its global presence, growing in commercial payments, and developing new opportunities in loyalty coalitions. The company also announced cost-saving initiatives projected to remove $1 billion from its cost base by the end of 2017.
Financial Highlights
39 data points| Operating Income | $5.16B |
| Interest Expense | $1.62B |
| Net Income | $5.16B |
| Shares Outstanding (Basic) | 999.00M |
| Shares Outstanding (Diluted) | 1.00B |
Key Highlights
- 1Net income was $5.2 billion, or $5.05 per diluted share, down from $5.9 billion, or $5.56 per diluted share, in 2014.
- 2Total revenues net of interest expense decreased 4% to $32.8 billion, impacted by a stronger U.S. dollar and a decline in the average discount rate.
- 3The company returned over $5.6 billion to shareholders in 2015 through dividends ($1.1 billion) and share repurchases ($4.5 billion).
- 4Card Member loans held for investment decreased by 17% to $58.6 billion, primarily due to the transfer of the Costco and JetBlue loan portfolios to 'held for sale'.
- 5Provisions for losses decreased by 3% to $2.0 billion, reflecting strong credit performance.
- 6Marketing, promotion, rewards, and Card Member services expenses increased by 1% to $11.1 billion, driven by spending on growth initiatives and higher cobrand rewards expenses.
- 7Salaries and employee benefits expenses decreased significantly by 18% to $5.0 billion, partly due to restructuring charges in 2014.
- 8The company announced cost initiatives expected to remove $1 billion from its cost base by the end of 2017.