What were the primary drivers of American Express's revenue growth in this period?

Revenue growth was primarily driven by increases in billed business and cardmember loans within the Travel Related Services (TRS) segment, and by higher managed asset levels and fee revenues in the American Express Financial Advisors (AEFA) segment.

How did the company's provisions for losses perform?

Provisions for losses and benefits increased in both the charge card and lending portfolios for TRS, largely due to higher volume, although this was partially offset by improvements in credit quality within the lending portfolio. For AEFA, provisions for losses and benefits were mixed, with annuities seeing a slight increase and investment certificates showing a significant jump, while insurance saw a modest rise.

What is the company's outlook regarding new accounting standards like SFAS No. 133 and SFAS No. 140?

American Express anticipates the adoption of SFAS No. 133 ('Accounting for Derivative Instruments and Hedging Activities') effective January 1, 2001, and SFAS No. 140 ('Accounting for Transfers and Servicing of Financial Assets') effective March 31, 2001. While the full financial effects are still being assessed, the company currently believes these changes will not be material to its financial position or results of operations.

Are there any significant legal proceedings that could impact the company?

The company is involved in several legal proceedings, including a tax refund case concerning the timing of annual fee recognition, class-action lawsuits alleging discrimination at AEFA, and a lawsuit concerning the misclassification of financial advisors as independent contractors. Additionally, there were previously reported class-action lawsuits related to insurance and annuity sales practices, which a settlement has been preliminarily approved for. The company believes it has meritorious defenses in these matters and is pursuing them vigorously.

AXP 10-Q Quarterly Report Q3 FY2000 — Revenue, Net Income, EPS

Summary

American Express Company reported solid financial results for the third quarter and the first nine months of 2000, demonstrating robust growth across its key segments. Net income increased by 14% for both the three and nine-month periods, leading to a diluted earnings per share growth of 15%. This performance met or exceeded the company's long-term targets for earnings per share growth, revenue growth, and return on equity, indicating effective operational management and strategic execution. The company's balance sheet remains strong, with total assets growing to $153.6 billion and shareholders' equity increasing to $11.2 billion, reflecting healthy financial health and capacity for future investment. The Travel Related Services (TRS) segment was a significant driver of growth, with net revenues increasing by 13.9% and 15.9% for the three and nine months, respectively. This was fueled by higher billed business and a strong increase in cardmember loans, alongside growth in cards in force. The American Express Financial Advisors (AEFA) segment also showed impressive growth, with net income up 12% and 13% for the respective periods, driven by increased managed asset levels and higher fee revenues. The company continues to focus on strategic initiatives, including share repurchase programs and exploring new growth avenues, while navigating ongoing legal matters and adopting new accounting standards.

Key Highlights

1Net income rose 14% for both the three and nine months ended September 30, 2000, reaching $737 million and $2,133 million, respectively.
2Diluted earnings per share (EPS) increased by 15% for both periods to $0.54 and $1.57, respectively, meeting long-term growth targets.
3Total consolidated net revenues (managed basis) grew by 13.9% and 15.9% for the three and nine months, respectively, driven by strong performance in Travel Related Services and American Express Financial Advisors.
4The Travel Related Services (TRS) segment reported a 13.5% increase in net income for both periods, supported by higher billed business and increased cardmember loans.
5American Express Financial Advisors (AEFA) demonstrated robust growth with a 12.0% and 13.4% increase in net income for the respective periods.
6Total assets grew to $153.6 billion and shareholders' equity rose to $11.2 billion as of September 30, 2000, indicating a strengthened financial position.
7The company actively managed its capital through share repurchases and a new debt issuance of $500 million in November 2000.

AMERICAN EXPRESS CO Quarterly Report for Q3 Ended Sep 30, 2000

Summary

Key Highlights

Frequently Asked Questions