8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Mar 18, 2011)

Filed March 18, 2011For Securities:AXP

Summary

American Express Company (AXP) announced on March 18, 2011, that it has received no objections from the Federal Reserve regarding its 2011 Comprehensive Capital Plan (CCP). This plan, submitted on January 7, 2011, includes an analysis of capital under adverse economic conditions and outlines the company's intentions to return capital to shareholders through dividends and share repurchases during 2011. The Federal Reserve's approval is a significant positive development, indicating regulatory comfort with Amex's capital strength and its proposed capital return strategy. Investors can anticipate the company to proceed with its previously stated objective of returning approximately 50% of generated capital to shareholders over time, via dividends and share buybacks.

Key Highlights

  • 1Federal Reserve has no objections to American Express's 2011 capital distribution plan.
  • 2The company submitted its Comprehensive Capital Plan (CCP) on January 7, 2011.
  • 3The CCP includes capital analysis under adverse economic assumptions.
  • 4AXP intends to return capital to shareholders in 2011 via dividends and share repurchases.
  • 5The company aims to return approximately 50% of generated capital to shareholders over time.
  • 6Share repurchase activities are expected to commence after the earnings release for the quarter ending March 31, 2011, and lifting of the trading blackout.

Frequently Asked Questions

The main news is that American Express received approval from the Federal Reserve for its 2011 capital distribution plan, allowing it to proceed with returning capital to shareholders through dividends and share repurchases.

Share repurchases are not expected to commence until after the company announces its financial results for the quarter ending March 31, 2011, and lifts its standard earnings release-related trading blackout.

American Express's objective is to return, on average and over time, approximately 50% of the capital it generates to shareholders. This will be achieved through a combination of dividends and the repurchase of its common shares.

The CCP was submitted to the Federal Reserve and included an analysis of the company's performance and capital availability under certain adverse economic assumptions, along with its planned capital distribution strategy for 2011.