American Express Reports Financial Results

A webcast and additional presentation materials are available at the American Express web site.

"Fourth quarter results from continuing operations met or exceeded our long-term targets for earnings, revenues and, on a pro forma basis, return on equity. Higher spending by affluent consumers, small businesses and corporate Cardmembers more than offset the impact of an industry-wide spike in bankruptcy filings before new legislation went into effect last October," said Kenneth I. Chenault, chairman and chief executive. "We continued to invest aggressively in business building initiatives throughout the Company. New product introductions, a global brand advertising campaign and expanded card acquisition programs helped us to add two million cards-in-force during the last three months. Spending on American Express cards grew 15 percent.

"Marketing-related spending rose to a record $1.6 billion, and we stepped up our investment in technology platforms during the quarter to support a pipeline that continues to broaden the product choice we offer to customers.

"While marketing expense was below our earlier estimates, we were able to take full advantage of all the major opportunities we targeted for the quarter and generate results that outpaced our major competitors.

"In addition, our network business took several major steps forward just before year-end when Citibank began issuing its first American Express-branded cards and we signed partnership agreements with Bank of America and HSBC. The momentum continued with last week's announcement of a similar agreement with GE Consumer Finance. All in all, American Express is entering 2006 in excellent competitive position."