American Express Company AXP said today that the Board of Governors
of the Federal Reserve System did not object to its capital plan submitted
on January 6, 2014 as part of the 2014 Comprehensive Capital Analysis and
Review (CCAR). The plan included:
-- increasing the Company's quarterly dividend to 26 cents per share
beginning with the second quarter 2014 dividend declaration, subject to
approval by the Company's board of directors;
-- repurchasing up to $4.4 billion of common shares during 2014 and up to
an
additional $1.0 billion in the first quarter of 2015.
Repurchase of common shares will be pursuant to the share repurchase program
previously authorized by the Company's board of directors on March 25, 2013.
The timing and amount of common shares purchased will be in accordance with
the Company's capital plan and will depend on various factors, including the
Company's business plans, financial performance and market conditions.
As previously disclosed, the Company aims to return, on average and over
time, approximately 50 percent of the capital it generates to shareholders
in the form of dividends and share buybacks.
Given its strong capital ratios, relatively low levels of acquisitions, and
a spend-centric business model that generates modest balance sheet growth,
the Company has been able to return substantially more than the 50 percent
target over the last two years.
As required under the Dodd-Frank Wall Street Reform and Consumer Protection
Act, the Company has also published today a summary of the results of the
Company-run stress tests performed under the Federal Reserve's severely
adverse scenario. These disclosures do not reflect the 2014 capital plan
described above, but reflect certain assumptions and capital actions as
required under the Federal Reserve's rules.
The results are available on the Company's Investor Relations site at
ir.americanexpress.com.
About American Express
American Express is a global services company, providing customers with
access to products, insights and experiences that enrich lives and build
business success. Learn more at americanexpress.com and connect with us on
facebook.com/americanexpress, foursquare.com/americanexpress,
linkedin.com/company/american-express, twitter.com/americanexpress, and
youtube.com/americanexpress.
Key links to products and services: charge and credit cards, business credit
cards, travel services, gift cards, prepaid cards, merchant services,
business travel, and corporate card.
This release includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based
on the Company's expected business and financial performance and are subject
to risks and uncertainties. Actual results may differ from those set forth
in the forward-looking statements due to a variety of factors, including
those contained in the Company's Annual Report on Form 10-K for the year
ended December 31, 2013 and the Company's other filings with the Securities
and Exchange Commission. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date on
which they are made. The Company undertakes no obligation to update or
revise any forward-looking statements.
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